PROJECT REPORT

ON

“HDFC BANK (TWO WHEELERS LOAN)”

SUBMITTED TO

KURUKSHETRA UNIVERSITY, KURUKSHETRA

IN PARTIAL FULFILLMENT OF DEGREE OF

BACHELOR OF INFORMATION AND MANAGEMENT

SESSION 2010-2011

SUBMITTED TO: SUBMITTED BY:

Miss. Arushi Bhandari Smita Tembhekar

Lect. in Commerce Department B.I.M III

Roll No 5063

University Roll No.

GANDHI MEMORIAL NATIONAL COLLEGE

AMBALA CANTT

ACKNOWLEDGEMENT

My experience at HDFC was like a ride to another world. We were

overwhelmed with the support and information provided to us by HDFC.

To start with, I would like to thank Mr. ________________________,

Branch Manager, HDFC for his able and inspiring guidance throughout

the course of this report has helped me to bring this work to its present

form.

I owe a great deal of gratitude and sincere thanks to Mr.

________________ for helping us in every possible way and providing

me crystal and critical approach to take right decisions at each phase of

execution of project.

Further, I would like to thank all the staff members of HDFC, who

provided me cooperation in collecting the data and requested the

concerned authorities to extend their help for the completion of the

project. The project was also enriched by their valuable suggestions.

DECLARATION

I, Smita Tembhekar hereby declare that the project work entitled “HDFC

BANK (TWO WHEELERS LOAN)” is my original work submitted in

partial fulfillment of Bachelor in Information and Management from

Kurukshetra University, Kurukshetra and not submitted to any other

institute or university for the award of any other degree.

PREFACE

“PRACTICAL TRAINING IS FAR BETTER THAN ROOM TEACHING”

Practical training gives a feel of the actual difficulties faced during the

work. As part of our summer training, we got an opportunity to work with

HDFC Ltd.

Two wheeler loan an economic growth to the social life of the

countrymen. For millions of India’s working families, may owning a

home have a dream to buy their own vehicle. Our nation’s greatest

opportunity now is the chance to build a better life for our people.

Recognizing this, the vehicle sector has now been regarded as a potent

engine of economic growth.

The government had outlined a substantive and detailed plan, seen first in

the policy of vehicle loan, to reach this goal. Many incentives announced

in the Union Budget every year have helped to improve the affordability

enormously over the past couple of years.

All this has led to an enormous increase in the demand for Vehicle

finance and thus, in the banks/ institutions providing this finance. The

present scenario has led to the steady evolution of especially two wheeler

finance as a vital sector.

CONTENTS

S. No

1. Chapter-1

Introduction to HDFC Bank

o Highlights

o Awards & Achievements

2. Chapter-2

HDFC-A Profile

3. Chapter-3

Research Methodology

o Objectives of the Study

o Limitations

4. Chapter-4

Data Analysis and Interpretation

5. Chapter-5

Findings

Conclusion

6. Chapter-6

Questionnaire

Bibliography

INTRODUCTION

ABOUT HDFC BANK, LTD.

The Housing Development Finance Corporation Limited (HDFC) was

amongst the first to receive an 'in-principle' approval from the Reserve

Bank of India (RBI) to set up a bank in the private sector, as part of the

RBI's liberalization of the Indian Banking Industry in 1994. The bank

was incorporated in August 1994 in the name of 'HDFC Bank Limited',

with its registered office in Mumbai, India. HDFC Bank commenced

operations as a Scheduled Commercial Bank in January 1995.

BUSINESS FOCUS

HDFC Bank's mission is to be a World-Class Indian Bank. The Bank's

aim is to build sound customer franchises across distinct businesses so as

to be the preferred provider of banking services in the segments that the

bank operates in and to achieve healthy growth in profitability, consistent

with the bank's risk appetite. The bank is committed to maintain the

highest level of ethical standards, professional integrity and regulatory

compliance. HDFC Bank's business philosophy is based on four core

values: Operational Excellence, Customer Focus, Product Leadership and

People.

TECHNOLOGY

HDFC Bank operates in a highly automated environment in terms of

information technology and communication systems. All the bank's

branches have connectivity which enables the bank to offer speedy funds

transfer facilities to its customers. Multi-branch access is also provided to

retail customers through the branch network and Automated Teller

Machines (ATMs).

The Bank has made substantial efforts and investments in acquiring the

best technology available internationally to build the infrastructure for a

world-class bank. In terms of software, the Corporate Banking business is

supported by Flexcube, while the Retail Banking business by Finware,

both from i-flex Solutions Ltd. The systems are open, scaleable and web-

enabled.

The Bank has prioritized its engagement in technology and the internet as

one of its key goals and has already made significant progress in web-

enabling its core businesses. In each of its businesses, the Bank has

succeeded in leveraging its market position, expertise and technology to

create a competitive advantage and build market share.

HIGHLIGHTS

* Profit after tax up by 30.5% to Rs. 387.6 crores

* Earnings per share increases from Rs. 11.01 per share to Rs. 13.75

Per share

* Dividend per share increases from Rs. 2.50 per share to Rs. 3.00 per

share (proposed)

* Branch network up from 171 to 231 outlets

* ATM network up from 479 to 732

* Phone Banking coverage in 80 cities

* Point-Of-Sale (POS) Terminals at merchant outlets up from 6480 to

21804

* Geographic reach expanded from 77 cities to 123 cities

* Balance Sheet size up from Rs. 23,787 crores to Rs. 30,424 crores

* Assigned highest rating 'CRISIL GVC Level 1' on corporate

governance and value creation by the CREDIT RATING

INFORMATION SERVICES OF INDIA LIMITED (CRISIL)

AWARDS AND ACHIEVEMENTS

Asia Money: Among top 25 best managed companies in Asia-pacific &

Best Commercial Bank in India 2003

HDFC Bank began operations in 1995 with a simple mission: to be a

"World-class Indian Bank".

There have been some other proud moments.

* London based Euro money: "Best Bank - India 2000" and "Best

Domestic Bank - India 2000", "Best Bank - India 2001"

* Hong-kong based Finance Asia magazine : "Best Domestic

Commercial Bank - India 1999" and "Best Domestic Commercial Bank -

India 2000", "Best Domestic Commercial Bank - India 2001"

* In the year 2003-04, leading financial magazine Forbes Global named

us in its list of "The 300 Best Small Companies" in the world and as one

of the "20 for 2004" best small companies in the world.

* The Economic Times Award: Corporate Excellence for Emerging

Company of the Year 2003-04 and as Business India's Best Bank for the

year 2004.

* Business Week International: Star of Asia Award to the Managing

Director, Mr. Aditya Puri

* Business Standard: Finance professional of the year 2004 to the

Managing Director, Mr. Aditya Puri

* Asia Money: Among top 25 best managed companies in Asia-pacific &

Best Commercial Bank in India 2004

* Asia Risk Magazine: India's No.1 bank in terms of risk policies

* Business India: India's Best Bank in 2000

* Business Today: Best Private Sector Bank in India in 1999.

* Computerworld, Inc., USA: Awarded the 21st Century Achievement

Award in 2003 for Finance, Insurance & Real Estate category

'We realized that only a single-minded focus on product quality and

service excellence would help us get there. Today, we are proud to say

that we are well on our way towards that goal. It is extremely gratifying

that our efforts towards providing customer convenience have been

recognized both nationally and internationally. We are aware that all

these awards are mere milestones in the continuing, never-ending journey

of providing excellent service to our customers. We are confident,

however, that with your feedback and support, we will be able to

maintain and improve our services."

(CHAIRMAN)

HDFC BANK

HDFC BANK - A PROFILE

BACKGROUND

The Housing Development Finance Corporation Limited (HDFC) was

amongst the first to receive an in principle approval from the Reserve

Bank of India (RBI) to set up a bank in the private sector, as part of the

RBI's liberalizations of the Indian Banking Industry. The bank was

incorporated in August 1994 in the name of HDFC Bank Limited, with its

registered office in Mumbai, India. The bank commenced operations as a

Scheduled Commercial Bank in January 1995.

PROMOTER

HDFC is India's premier housing finance company and enjoys an

impeccable track record in India as well as in international markets. Since

its inception in 1977, the Corporation has maintained a consistent and

healthy growth in its operations to remain the clear market leader in

mortgages and banking services in India. Its outstanding loan portfolio

covers over a million dwelling units. HDFC has developed significant

expertise in retail mortgage loans to different market segments and also

has a large corporate client base for its housing related credit facilities.

With its experience in the financial markets, a strong market reputation,

large shareholder base and unique consumer franchise, HDFC was ideally

positioned to promote a bank in the Indian environment.

BUSINESS MISSION

HDFC Bank's mission is to be a World Class Indian Bank. The Bank's

aim is to build a sound customer franchise across distinct businesses so as

to be the preferred provider of banking services in the niche segments that

the bank operates in and to achieve healthy growth in profitability,

consistent with the bank's risk appetite. The bank aims to ensure the

highest level of ethical standards, professional integrity and regulatory

compliance. HDFC Bank's business philosophy is based on four core

values:

* Operational Excellence

* Customer Focus

* Product Leadership

* People

The Bank signed a strategic business collaboration agreement with Chase

Manhattan Bank in February 1999.

CAPITAL STRUCTURE

The authorized capital of HDFC Bank is Rs.450 crores. The paid-up

capital is Rs.281.2 crores. The HDFC Group holds 24.5% of the bank's

equity while about 13.3% of the equity is held by the depository in

respect of the bank's issue of American Depository Shares (ADS/ADR

Issue). The Indian Private Equity Fund, Mauritius (IPEF) and Indocean

Financial Holdings Ltd., Mauritius (IFHL) (both funds advised by J P

Morgan Partners, formerly Chase Capital Partners) together hold about

11.6% of the bank's equity. Roughly 18% of the equity is held by FIIs,

NRIs/OCBs while the balance is widely held by about 300,000

shareholders. The shares are listed on the The Stock Exchange, Mumbai

and the National Stock Exchange. The bank's American Depository

Shares are listed on the New York Stock Exchange under the symbol

"HDB".

TIMES BANK AMALGAMATION

In a milestone transaction in the Indian banking industry, Times Bank

Limited (another new private sector bank promoted by Bennett, Coleman

& Co./Times Group) was merged with HDFC Bank Ltd., effective

February 26, 2000. As per the scheme of amalgamation approved by the

shareholders of both banks and the Reserve Bank of India, shareholders

of Times Bank received 1 share of HDFC Bank for every 5.75 shares of

Times Bank. The amalgamation added significant value to HDFC Bank

in terms of increased branch network, expanded geographic reach,

enhanced customer base, skilled manpower and the opportunity to cross-

sell and leverage alternative delivery channels.

DISTRIBUTION NETWORK

HDFC Bank is headquartered in Mumbai. The Bank at present has an

enviable network of over 241 branches spread over 129 cities all across

the country. All branches are linked on an online real-time basis.

Customers in 39 locations are also serviced through Telephone Banking.

The Bank also has a network of almost over 775 networked ATMs across

these cities. Moreover, HDFC Bank's ATM network can be accessed by

all domestic and international Visa/MasterCard, Visa Electron/Maestro,

Plus/Cirrus and American Express Credit/Charge cardholders. It is the

only bank in India which provides access to all the 3 major International

Card Networks on its ATM network.

BUSINESS PROFILE

HDFC Bank caters to a wide range of banking services covering

commercial and investment banking on the wholesale side and

transactional / branch banking on the retail side. The bank has three key

business areas:-

A) CORPORATE BANKING

The Bank's target market is primarily large, blue-chip manufacturing

companies in the Indian corporate sector and to a small extent, emerging

mid-sized corporate. For these corporate, the Bank provides a wide range

of banking services, including working capital finance, trade services,

transactional services, cash management, etc. Based on its superior

product delivery / service levels and strong customer orientation, the

Bank has made significant inroads into the banking consortia of a number

of leading Indian corporate including multinationals, companies from the

domestic business houses and prime Public Sector companies.

B) RETAIL BANKING

The objective of the Retail Bank is to provide a full range of financial

products and banking services, giving the customer a one-stop window

for all his banking requirements. The products are backed by world class

service and delivered to the customers through various delivery channels

including the branch network, as well as alternative delivery channels like

ATMs, Phone Banking, NetBanking and Mobile Banking. HDFC Bank

was the first bank in India to launch an International Debit Card in

association with VISA (VISA Electron) and issues the Mastercard

Maestro debit card as well. The debit card allows the user to directly debit

his account at the point of purchase at a merchant establishment, in India

and overseas. The Bank launched its credit card in association with VISA

in November 2001.

C) TREASURY OPERATIONS

Within this business, the bank has three main product areas:-

* Foreign Exchange and Derivatives

* Local Currency Money Market & Debt Securities

* Equities

With the liberalization of the financial markets in India, corporates need

more sophisticated risk management information, advice and product

structures. These and fine pricing on various treasury products are

provided through the bank's Treasury team.

TWO WHEELER LOANS

AN OVERVIEW

"Two wheelers business has grown significantly in the last six months to

a portfolio of over Rs. 100 crores. The monthly disbursements have also

been over Rs. 20 crores. The business has a vast geography of over 164

approved locations & 206 district locations.

"In the F.Y. 2004-2005, this business will be a high focus area in the

retail assets stream & the bank will endeavor to achieve a leadership

position in the market. Based on market feedback competition practices

& feedback from the sales & credit teams a few changes are proposed in

the credit policy & processes. The objective is to facilitate accelerated

growth & to make the bank's credit policies competitive market friendly

& aggressive"

HDFC BANK REPORTS

POLICY OF HDFC BANK REGARDING TWO

WHEELER LOANS

* PART A - Credit Policy Changes;

Objectives - To facilitate easier documentation

- To offer the bank's programs to new segments

- To improve TAT's

* PART B - Revisions in LTV's for No Income Documents Program;

Objectives - To bring the policy in line with competition on best

selling models that have higher market shares &

better resale prices.

- To lower the LTV's for vehicles that have a low

market share & poor resale price

* PART C - Changes in Fast Track Programs ;

Objectives - To bring the processes closer to the market which is

rapidly moving towards on the spot approvals at the

dealership counters

* PART D - CSD Policy ;

Objectives - To cater to the defence personnel for the vehicles sold

through the CSD (Canteen Store Department)

PART A: CHANGES IN THE CREDIT POLICY

DOCUMENTATION

A) Proof of income:

a) Amongst the salaried segment, the most preferred Income Proof is

a salary slip. However for employees of Pvt. Ltd. Companies. Partnership

firms & proprietary concerns that do not issue salary slips, salary

certificates may be accepted to the confirmation of the following:

i) The name & designation of the authorized signatory;

ii) Salary indicated in the certificate to be confirmed.

b) Surrogate income proof, to further enable easier documentation &

to cater to more segments of two wheeler customers. The following are

proposed to be taken as surrogate" income proof

* May not be treated as ownership proof in certain cities For eg:

electricity bill / water board bill does not conclusively prove residence

ownership in Kolkata

Hence such variations will be treated in region specific bulletins The

surrogate income proof is not applicable in the following cases

1) NTS /HRP

2) Multiple vehicles applications

3) Where the employment stability is less than 6 months

B) Bank Statements:

Bank statements need not be taken as a mandatory requirement but may

be asked for at a credit buyer's discretion for the following profiles :

* HRP(High Risk Profiles)

* Applications from negative areas

* When LTV's > 85%

* Cases with poor residence & employment stability

* Cases with weak CPV

* Except in Kolkata where the CPV is mandatory at only 1 point

* For salaried - at the residence of the applicant

* For self employed - at the office/shop/factory of the applicant

However, the credit buyer, at his discretion may have 2 point CPV's

conducted. Where credit discomfort is established.

SOURCING OF THE UNDERNOTED VEHICLE MODELS IS

DISCONTINUED

The sourcing of loan applications for the undernoted 7 vehicle models to

be discontinued:

1) BAJAJ ASPIRE2) TVS SPECTRA3) KINETIC CHALLENGER4) LML PULSE 5) LML SUPREMO6) LML ADRENO7) LML ENERGY

This is account of:

1) Poor demand HERO HONDA & consequently poor resale value of the

above models.

2) Manufacturing of some of the above models have already been

discontinued & the others are likely to be discontinued in the near future.

PART B: CHANGES IN LTV FOR NO INCOME

DOCUMENTS PROGRAM

A) UPWARD REVISIONS: Key players in the two wheeler

finance industry offer 80% LTV for vehicle models with higher market

shares & resale values. These models are manufactured by the 4 major

two wheeler manufacturers (HERO HONDA, BAJAJ, TVS & LML)

1) HERO HONDA SPLENDOR2) HERO HONDA PASSION3) HERO HONDA AMBITION4) HONDA ACTIVA5) HONDA DIO6) TVS SCOOTY7) TVS VICTOR8) BAJAJ PULSAR (150 & 180)9) BAJAJ CALIBER (REGULAR, CROMA, 115)

In line with competitor trends, LTV will be increased to 80% for the no

income documents program for the above 9 vehicle models. However this

increase in LTV will be applicable in the top 23 locations only for a

period of 90 days. these are:

1) DELHI2) CHANDIGARH3) LUDHIANA4) JAIPUR5) BANGALORE6) HYDERABAD7) VIZAG8) CHENNAI9) COIMBATORE10) CALICUT11) COCHIN12) PUNE13) MUMBAI14) NAGPUR15) AHMEDABAD

16) BARODA17) SURAT18) KOLKATA19) UDAIPUR20) JALANDHAR21) NASIK22) GOA23) RAJKOT

The program will be reviewed after 90 days for any negative trend (credit

/ repayment).

NO REVISIONS: There would be no change in the existing program

(income documents waiver with 70% LTV) for the vehicle models

mentioned below :

1) HERO HONDA CD 1002) HERO HONDA STREET (REGULAR & SMART STD)3) HERO HONDA CBZ (DRUM & DISK BRAKES)4) HERO HONDA DAWN5) KINETIC DX 6) KINETIC ZX7) KINETIC MARVEL8) BAJAJ CHETAK MT & 4S19) BAJAJ M-8010) BAJAJ CLASSIC SL11) BAJAJ CLASSIC12) BAJAJ SUPER13) BAJAJ LEGEND14) BAJAJ BRAVO15) BAJAJ BOXER AT & CT16) BAJAJ ELIMINATOR17) TVS FIERO18) TVS MAX 100 R19) TVS MAX 100 DC20) TVS SAMURAI21) TVS XL SUPER (ONLY SOUTH)22) LML SCOOTERS (ONLY NORTH)

C) DOWNWARD REVISIONS: For the following two wheeler

vehicle models, the LTV for the no documents program to be reduced to

60% from the existing 70%

1) KINETIC ZOOM2) KINETIC NOVA3) KINETIC STYLE4) KINETIC ZING5) KINETIC GF - 1256) KINETIC BOSS7) KINETIC AQUILA (50% LTV)8) BAJAJ SAFFIRE9) BAJAJ SUNNY10) BAJAJ SPIRIT11) LML FREEDOM12) LML SELECT (NORTH - 70% LTV)13) LML SENSATION (NORTH - 70% LTV)14) LML NV (NORTH - 70% LTV)15) LML PRITHVI (NORTH -70% )16) ENFIELD ( ALL MODELS)

PART C: 30 MINUTES FAST TRACK APPROVALS

SPECIFIC VEHICLE MODELS

A) NO INCOME DOCUMENTS PROGRAM :

Existing program: The 30 minutes fast track approval is applicable

only for cases with 70% LTV

Proposed program: Income documents are waived when the LTV

is 80% for specific vehicle models at the top 18 locations only. For these

vehicle models 30 minutes fast track approval will also be applicable.

B) VERIFIED INCOME PROGRAM:

Existing program: For all cases where the LTV is greater than 70%

income proof, address proof, identity proof, etc. are couriered for credit

decisions.

Proposed program: For loan applications of the vehicle models in

which the LTV is less than or equal to 85% income proof, address proof,

identity proof, etc. be communicated within 30 minutes on following:

* HERO HONDA SPLENDOR* HERO HONDA PASSION* HERO HONDA AMBITION* HONDA ACTIVA* HONDA DIO* TVS SCOOTY* TVS VICTOR* BAJAJ PULSAR ( 150 & 180)* BAJAJ CALIBER (REGULAR ,CROMA & 115)

This is applicable only to the top 23 locations .

C) OTHER REVISIONS IN THE EXISTING FAST

TRACK PROGRAM:

* Decisions can be taken on cases with deviations upto the authority of

the local credit authority (off roll rep. having template authority / credit

executive/ ACM)

* However sales managers who have been delegated L1 authority will

have to refer cases with L1 deviations & without income proof where

approval is required within 30 minutes to the exclusive credit person

(credit buyer /AVM) in this program

* The program is not applicable for NTS profiles & applications from

predefined negative areas

* The program is not applicable when there is credit discomfort (when the

TVR is conducted)

* In case of NTS profiles & when there is credit discomfort the case will

have to be routed thro the normal CPV route

* Applications from HRP may be considered in the revised program, at

the discretion of the credit buyer.

PART D: FINANCING OF TWO WHEELERS THROUGH

CSD TO DEFENSE PERSONNEL

A) DETAILS OF THE PROGRAM:

1) This program to be extended to only permanent defence personnel

currently in service

2) Two wheeler loans to be extended on all approved two wheeler models

3) LTV to be restricted to 75%

4) The defence personnel must not be posted at a family station

5) A defence personnel is posted at a location for a fixed period only.

Hence the tenure of the loan must not exceed the balance period of the

defence personnel at that location

6) This program will not be applicable to the following:

i) jawan /sepoy /sentry /seaman

ii) soldier /corporal

iii) subedar /sergeant

iv) surveyor

v) ex-serviceman (the ex serviceman must meet all the eligibility

criterias)

B) ELIGIBILITY NORMS:

1) This program to be extended to only permanent defence

personnel currently in service& does not apply to ex

serviceman

2) Age - 21 to 58 years

Minimum income - Rs. 3500 gross per month

3) Instalment to net income ratio - 10%

4) Employment - 2 years in the defence services

5) Telephone - office or residence

6) Banking - PDC's must be issued from the salary account &

must be MICR & local clearing

7) CPV - positive CPV at the residence & the unit of the defence

personnel

C) PRE-APPROVAL DOCUMENTS :

1) Application form (permanent address & telephone no. to be

indicated on the application form along with the name &

address of parents)

2) Age & address proof (current address) as indicated in the two

wheeler policy manual

3) Income proof as indicated in the two wheeler policy manual

4) Identity proof as indicated in the two wheeler policy manual

5) 3 months bank pass book copy (of the salary a/c & PDC's to

be issued from this salary a/c)

6) Eligibility certificate signed & sealed by the commanding officer

of the unit confirming the date of joining & his duration of stay

at the particular location

7) Proforma invoice

D) PRE-DISBURSEMENT DOCUMENTS:

1) loan agreement & RTO forms duly signed

2) post dated cheques duly signed

3) initial payment receipt

4) VAF (vehicle availability form) endorsed by the dealer stating

that the required vehicle is available

E) POST-DISBURSAL DOCUMENTS :

1) Delivery challan signed by the customer to be obtained within

10 days from the disbursement date

2) Insurance cover note with hypothecation favouring HDFC BANK

to be obtained within 10 days from the disbursement date

3) Road tax receipt to be obtained within 10 days from the

disbursement date

4) Original CSD invoice in favour of the customer to be obtained

within 10 days from the disbursement date

5) RC book with hypothecation favouring HDFC BANK to be

obtained within 45 days from the disbursement date

The tracking of post disbursal documents to be done by operations

department & if the post disbursals documents (except RC book) of 10

CSD cases are not received within the specified period, further CSD

disbursals to be discontinued at the location until the position is rectified.

F) PROCESS FLOW :

1) On meeting the eligibility norms , submission all pre-approval

documents & on receipt of positive CPV report , HDFC BANK to

intimate approval to the applicant & the dealer

2) The dealer to then receive the initial payment amount from the

applicant. The applicant to complete pre-disbursal documentation

3) On completion of the pre-disbursement formalities, HDFC BANK

to make out a disbursement cheque to the dealer (difference between the

on road vehicle cost & the initial payment made by the clint to the dealer)

4) The dealer to make full payment to CSD through the applicant

5) The applicant to handover a DD for the full cost of the vehicle

along with the vehicle availability duly endorsed by the dealer to CSD (an

HDFC BANK /dealer personnel to visit csd with the client for

submission of the DD & VAF)

6) The applicant to obtain the payment receipt . CSD invoice

favouring the applicant & the Local Supply Requisition Order (LSR)

from CSD & to submit the same at the dealership

7) The dealer to deliver the vehicle to the applicant after completing

the registration formalities (with LSR ,invoice of CSD favouring the

customer. Form 21 & form 34 with HDFC BANK hypothecation, sale

letter & insurance cover note mentioning hypothecation to HDFC

BANK)

8) The dealer to submit the following to HDFC BANK :

i) Copy of the delivery challan

ii) Copy of the LSR

iii) Invoice of CSD favouring the applicant

iv) Copy of the sale letter

v) copy of the insurance cover note mentioning hypothecation to HDFC

BANK &

vi) The RTO receipt showing the payment of hypothecation fees

G) RISKS & MITIGANTS:

Risks:

1) The invoice raised by the CSD will not have the bank's hypothecation

2) The RC therefore may not have, if bank's FORM 20 is not used

MITIGANTS:

The registration is done by the dealer, who will ensure the bank’s

hypothecation. CSD business will only be done through authorized

dealers of major manufactures who have signed the dealer agreement

with the bank.

RECOMMENDATIONS AND APPROVAL

REVISED NTS / HRP LIST

A) NTS(Non Target List) List

1) POLITICIANS / EX-POLITICIAN

2) COLLECTION AGENCIES

3) TWO-WHEELER / AUTO BROKERS

4) PRIVATE FINANCERS

5) OWNERS OF BARS / SMALL HOTELS (& THERE

EMPLOYEES)

6) ADVOCATES / LAWYERS

7) EMPLOYEES OF DISTRIBUTION CHANNELS (DSA

/DEALERS /CPA /HBL /COLLECTION AGENCIES)*

8) SWEEPERS

9) DAILY WAGE EARNERS

10) POLICE

11) OCTROI & RTO AGENTS

B) HRP(High Risk Profile) List

1) OWNERS OF PRIVATE SECURITY SERVICE AGENCIES (&

THEIR EMPLOYEES)

2) SMALL TRAVEL AGENTS /SMALL TOUR OPERATORS

/SMALL TOURIST TAXI OPERATORS (& THERE EMPLOYEES)

3) CABLE OPERATORS

4) STAND ALONE STD /PCO /XEROX BOOTH OWNERS)

5) CIVIL & LABOUR CONTRACTORS

6) JOURNALISTS

7) SMALL NON BRANDED COURIER COMPANIES (& THERE

EMPLOYEES)

8) YOUNG INSURANCE AGENTS (LESS THAN 30 YEARS)

9) DRIVERS & CONDUCTORS

10) COMMISSION AGENTS

11) CLASS IV GOVERNMENT EMPLOYEES

12) PSU BANK EMPLOYEES (BELOW MANAGER GRADE)

Loans to employees of distribution channels to be sanctioned subject

to :

* Co applicant / guarantor to be taken &

* Recommendations from the

* Liabilities RSM (if the distribution channel is engaged in

liabilities products sourcing /collection)

* Retail assets RSM (if the distribution channel is engaged in

retail asset products sourcing /collection)

* An applicant may not himself be a NTS / HRP. However if a

family member of the applicant who resides with the

applicant is a police, politician, or an advocate then the

applicant will also be construed to belong to NTS/HRP.

* All NTS cases can approved with L3 deviation , when the

LTV is restricted to 50% & where there is ownership proof

as well ,the same will be L2 deviation

* All HRP cases can be approved as L1 deviations with the mitigants.

FEATURES OF TWO WHEELER LOANS GIVEN BY HDFC BANK

* LOAN AMOUNT - RS. 7000 TO RS. 1 LAKH ( MAXIMUM 85% OF

PRODUCT VALUE)

* TENURE - 6 TO 36 MONTHS

* ELIGIBILITY - ARE AS FOLLOWS :

ELIGIBILITY

You need to fulfil the following requirements :

* You are a salaried or self-employed individual.

You are between 21 and 60 years of

* Age.

* Your minimum gross income is equivalent to Rs. 54,000/- p.a. if

you reside in Mumbai, Delhi, Chennai, Bangalore, Calcutta, Pune

and Rs. 42,000/- per annum for all other cities.

* You have been working for at least 2 years.

* You have a phone at your residence or office.

BENEFITS OF HDFC TWO WHEELER LOAN

SERVICES:

Speedy Loan Approval.

Wide variety of consumer products financed - two-wheelers,

televisions, refrigerators, washing machines, audio systems,

microwave ovens, air-conditioners, computers and many more.

Flexible repayment options, ranging from 6 to 36 months

available even at the point of purchase.

Repay through post-dated cheques with easy EMIs.

You can pre-pay the loan any time after six months of availing

of the loan.

Lowest interest rates.

Large range of schemes/products/modules.

No guarantor required

RESEARCH METHODOLOGY

Methodology is the method followed while conducting the study on a

particular project. Through this methodology a systematic study is

conducted on the basis of which the basis of a report is produced.

OBJECTIVES OF THE STUDY

1. To study about two wheeler loans provided by the HDFC bank

2. To know general perception about HDFC bank in comparison to

other banks.

3. To know how consumers rate services and facilities provided by

the HDFC bank.

NATURE

The methodology adopted to achieve the project objective involved

exploratory research method. The information required for fulfilling the

objective of the study was collected from various Primary and Secondary

sources.

SAMPLING

The survey comprised of Selective Sampling and Convenience Sampling

of Preferred Banks, customers and general Public.

SAMPLE DESIGN

XXXXXXXXXXXXXXXXX

OBJECTIVES OF THE STUDY

To review the whole system of HDFC bank in terms of origin,

growth and rationale.

To evaluate the operational efficiency of HDFC bank in

comparison of other banks.

To explore various schemes offered by Public and Private Sector

Banks.

To study Which Sector (Public or Private) is more Committed

towards its services.

To Study Why Private Banks are more successful than Public

Banks.

To study the most Popular Schemes of the Banks.

To get the feedback from customers regarding the performance of

private sector and public sector banks.

To find out the level of consumers satisfaction or dissatisfaction

with the bank.

LIMITATIONS

Despite of trying my level best, there are still some limitations, which

prevailed in my project. There were some practical problems which came

across and could not be properly dealt with.

As the data of the two wheeler loans was collected from different banks

through personal visits ,so delay in collection of data was inevitable.

The data was collected for a period of 4 weeks which may be slightly

shorter for completely studying the different schemes of the two wheeler

loans provided by different banks.

Due to paucity of time, the clients could not be contacted in entirety and

the study was conducted on a sample basis and the choice of the sample

was random from a small area.

Even though all these factors must have some adverse impact on the

validity of my study, I believe that my findings are a reasonable

representative of the attitude of the population, of interest.

DATA ANALYSIS AND INTERPRETATION

Q1. Which bank you are dealing with?

Findings:

Data collected form my survey reveals 21% of respondents are HDFC

customers, 23% of them are PNB customers, 22% of them goes to BOP,

14% deals with OBC and rest 20% deals with other banks.

Q2. Which type of account you have with the bank ?

Account %age of Respondents

Current Account 30

Saving Account 40

Fixed Deposits 20

Any Other 10

Findings :

Graphical and tabular representation of my survey reveals maximum

number of respondents are having saving account in there banks 40% of

respondents having it, 30% of respondents having current accounts in

banks for their daily activities, 20% of them have fixed deposits and 10%

are having other accounts like demat account.

Q3. How did you come to know about the bank ?

Media %age of Respondents

Newspaper 40

Friends 25

Magazines 20

Any Other 15

Findings:

Graphical and tabular representation of my survey shows 40% of

respondents came to know about the bank form the newspaper, 25% of

them came to know about it from their friends, 20% of them came to

know about it from the customers of bank and rest 15% have other

sources.

Q4(a) Have you got your two-wheeler vehicle financed from any bank?

Response %age of Respondents

Yes 85

No 15

Findings:

The data in table above and graphical representation shows 85% of

respondents have got there two-wheeler vehicle financed from bank and

15% of respondents had not financed there two-wheeler vehicle from

bank

(b) which bank

Banks %age of Respondents

HDFC 55

Bank Of Punjab 38

Oriental Bank Of Commerce 00

Punjab National Bank 02

Any other 05.

Findings:

The data in table above and graphical representation shows 55% of

respondents have got there two-wheeler vehicle financed from HDFC

bank and 38% of respondents had got it financed from BOP and OBC had

not financed a single two wheeler and only 2% of respondents had got

there two wheeler financed by PNB and 2% of respondents had got there

two wheeler financed by other banks

Q5. Are you satisfied with the loan facility you are availing ?

Response %age of Respondents

Yes 70

No 30

Findings:

In my survey I came to know 70% of my respondents are satisfied with

the performance of their bank and 30% of them are not satisfied with

their banks.

Q6. Which sector do you think is more committed towards its services?

Banking Sector %age of Respondents

Public sector Banks 35

Private sector Banks 65

Findings:

The table above on the bases of survey shows according to 65% of

respondents private sector banks are more committed towards its services

as compare to public sector banks 35% of respondents found public

sector banks more committed.

Q7. Do you want to avail any other loan facility?

Response %age of Respondents

Yes 30

No 70

Findings:

The table above on the bases of survey shows according to 70% of

respondents does not want to avail any other loan facility and 35% of

respondents want to avail any other loan facility.

Q8. Are you facing any problem in availing the loan facility?

Response %age of Respondents

Yes 25

No 75

Findings:

The table above on the bases of survey shows according to 25% of

respondents are facing some kind of problem in availing the loan facility

and 75% of respondents are not facing any kind of problem in availing

the loan facility

Q9. Your Bank provides the fastest and most Flexible service for loans.

Level of Satisfaction %age of RespondentsStrongly Disagree 05Disagree 12Uncertain 20Agree 45Strongly Disagree 18

Findings:

The table above on the bases of survey shows that 5% of respondents are

strongly dissatisfied by there banks whereas 12% of respondents are

dissatisfied by there banks and 20% of respondents are uncertain and

45% of respondents are satisfied by there banks &18% strongly of

respondents are very much satisfied by there banks.

Q10. Which Bank do you think is the best bank in your view?

Banks %age of RespondentsHDFC 25Bank Of Punjab 27Oriental Bank Of Commerce 18Punjab National Bank 20Any other 10

Findings:

The table above on the bases of survey shows that 25% of respondents

think HDFC is the best, whereas 27% of respondents thinks BOP is the

best whereas 18% of respondents think OBC is the best while 20% of

respondents think PNB is the best and 10% of respondents votes for other

bank

Q11. How would you rank your bank services?

Ranking %age of RespondentsBest 16Good 30Fair 27Poor 24Very poor 03

Findings:

The table above on the bases of survey shows according to 16% of

respondents feels that there bank provides the best services and 30% of

respondents feels that there bank provides the good services and 27% of

them feels that there bank provides fair services and 24% of respondents

feel that the bank services are poor and 3% of respondents feels the

services provided are very poor.

SWOT ANALYSIS OF HDFC BANK

STRENGTHS:

* It has an extensive distribution network comprising of 253

branches all over India and one international office in Dubai. This

provides a competitive edge over the competitors.

* The bank has a strong retail depositor base of 3.2 million

accounts

* The bank has a near competitive edge in its area of operations

* The bank boasts of a strong brand equity

* ISO 9001 certification for its depository and custody operations

and direct banking operations

WEAKNESSES:

* Due to continuous fall in the rate of interest , the margins on the

Bank's wholesale assets has drastically reduced

* The branches are not proactively selling third party products to

the customers

OPPORTUNITIES:

* Greater liberalization in foreign ownership via fdi in Indian Private

sector banks

* Healthier exposure norms

* Infrastructural improvements and better systems for trading and

settlement in the govt. securities and foreign exchange markets

THREATS:

* The bank has started facing competition from players like Bank

Of Punjab, SBI, ICICI, etc. in the finance market. This could

reduce the margins in future.

* Declining trend in the aggregate deposits growth with the

scheduled commercial banks as can derived from the following

figures:

F.Y. 2001-02 : growth rate in the aggregate deposits - 18.4%

F.Y. 2002-03 : growth rate in the aggregate deposits - 14.3%

FINDINGS OF COMPARATIVE STUDY OF

PUBLIC & PRIVATE BANKS

THE BEST BANK

After comparative analysis of various schemes of different banks

according to me criteria for selection of best operating bank is:

* Cost of Transactions

* Number of customers

* Response time.

* Automation

* Paper work

* Attitude of Employees

* Market image

* Processing time

* Facilities

* Profitability

* Distinguished features

* Coverage.

The Best Bank: HDFC

According to the study of various schemes and working of different

banks the best bank comes out to be "HDFC". This bank has many

advantages over the public sectors banks. It is more efficient, more

profitable, more automated, and has better services and many other

advantages.

HDFC has the largest clientele in the new private sectors banks.

CONCLUSIONS

The performance of private sector banks is better then public sector

banks. The facilities offered by private sectors are more advanced than

public sector banks. Processing charges of Private Banks are higher than

other banks. Private Banks have a better image in the market and thus

have more customers.

Public Sector banks have several weaknesses which are to be removed or

banks should be privatized. There workforce is not at all efficient besides

they are not well aware of IT that is creeping into Banking sector with its

speed at mount.

Public Sector banks are more committed towards the rural areas, whereas

the Private Banks to urban areas. Coverage of Public Sector Banks is

more both in rural and urban areas but of Private Banks is lesser in rural

areas. People are shifting from pubic to private sector banks.

Public Sector Banks are counted safer and more secure in comparison to

Private Sector Banks due to mentality of Indian people. Private Sector

banks will have to change consumer's mentality.

QUESTIONNAIRE

Name:_______________________________________________

Age : _______________________________________________

Address: _____________________________________________

_____________________________________________

Telephone no.: ________________________________________

Occupation: __________________________________________

1. In Which bank do you have an account?

HDFC BOP PNB OBC ANY OTHER

2. Which type of account do you have with the bank?

Saving? Current? Fixed deposit? Anyother?

3. How did you come to know about the bank ?

NEWSPAPER ? MAGAZINES ? FRIENDS? ANY OTHER

4. Which additional facility are you looking for?

5. (a) Have you got your two-wheeler vehicle financed from any bank?

Yes ? No?

(b)If Yes Which:

HDFC ? BOP? OBC? PNB? Any other?

6. Are you satisfied with the loan facility you are availing ?

Yes? No?

7. Which sector do you think is more committed towards its services?

?Public sector Banks ?Private sector Banks

8. Do you want to avail any other loan facility?

Yes? No?

9. a) Are you facing any problem in availing the loan facility?

Yes? No?

b) if yes ,what

10. Your Bank provides the fastest and most Flexible service for loans.

? Strongly Disagree

? Disagree

? Uncertain

? Agree

? Strongly Agree

11. Which Bank do you think is the best bank in your view?

?HDFC ?PNB ? BOP ? OBC ?Any other

12. How would you rank your bank services?

? Best

? Good

? Fair

? Poor

? Very poor

13. Please give some references?

14. Your suggestions.

DATE SIGNATURE

BIBLIOGRAPHY

Books :

Research Methodology -By Kothari, C.R.Business Research and Methods -By Cooper, Donal R.& Schindler Marketing Management -By Kotler, Philip

Magazine:Business TodayBusiness World

Annual Report of HDFC BankManualsBrochures Websites

www.hdfcbank.comwww.indiainfoline.com