Presented By:Neetu.P.SDeepika.SSanjana.S

SWOT ANALYSIS

STRENGTHS: Brand name of Punjab National Bank (PNB) is

established over the years Single window clearance a single employee provides wide variety of facilities to

the borrower, minimizing the hassle of wastage of time

Appraisal techniques are used. Specialized software's are big assets. There is no penalty for prepayment from borrowers

own service.

WEAKNESSES

High interest rates as compared to other housing finance institutions.

Top management takes large amount of time to approve high value seeking loan borrowers. No publicity.

No marketing managers work, only through dsa's (direct sales agent).

People are not aware of wide variety of schemes offered by the company; tend to think the company as only providing home loans.

There is the shortage of staff at almost all branches which does not ensure easy addressable of the customers problems. Delegation of authority and responsibility is not proper.

OPPORTUNITIES

Special rates of interest are offered during exhibitions.

Special rates of interest can be introduced for employees of PSU'S &reputed national or multinational companies‘

Product life cycle is to bereviewed.The growing category of the builders ensure that

good, high value& qualitative projects, providing them home loans with the new and innovative schemes can lead to over all development of the company

THREATS

The competition in market is very high due to the private players.

The rates of interest of other players are quite low.

Innovative schemes with horne loan from other players.

The processing process is quite slow which leads to low housing finance. A fraud case involving 32 cases worth Rs.3crores at the one branch of PNB Housing Finance Limited in year 2002 leads decreasing brand name

ECONOMIC FACTORS

• One word describes what the life insurance industry has experienced over the last four years: uncertainty. For an industry that positions itself around helping individuals and families mitigate the challenges thrown at them by uncertainty, it has been a humbling experience. Many of the changes were forced by regulatory changes and macroeconomic conditions.

• Last few years have seen insurers reevaluate their operating models, modifying products to bring them in line with new regulations, increase their focus on customer needs and being more efficient.

• The longterm drivers of life insurance growth remain intact. Many of these are related to the socioeconomic progress and demographic trends of India. Increasing lifespans, double incomes and nuclear families would continue to drive the need for life and health protection as well as long-term savings and pension plans. But short-term growth would hinge on a few other factors.

• There are three key factors that will determine how the life insurance industry would perform in 2014:inflation, revival of the distribution engine and acceptance of new products by consumers

Inflation

• Insurance products tend to perform better in low-inflation scenarios. Unless there is respite on that front and households start to save more, flows into insurance plans may not increase significantly.

• Also, relative performance in returns offered by physical asset classes like gold and real estate would be evaluated by customers before they part with their money. But I do expect the share of protection plans and long-term saving plans to increase as part of the overall insurance pie.

Distribution

• Over the last few years, bancassurance has been the industry's growth engine. This is not to say the model has achieved its true potential. The regulator is seized of the potential that the large network of bank branches in the country provides and, hence, has proposed an open architecture through the broking route.

• It is the pace at which the transition of banks from a closed architecture to an open architecture is managed that will determine whether this channel sells more or less insurance going forward. Also, any arbitrage opportunity such as artificial caps on premiums collected for one insurer or different dates of transition for different banks could wreak havoc on business volumes in 2014.

• Knee-jerk reactions need to be avoided and all efforts by banks, insurers and regulators should be to ensure a seamless transition for all impacted stakeholders. The base of agents has been reducing as returns to them have declined. Issues of high costs and low productivity continue to haunt this channel.

• Just like bancassurance, there is a case for open architecture for agents, especially those with more than five years of experience. This will give insurers the reach to sell their products in semi-urban and rural markets.

• Trends on the digital platform have been encouraging and many first-time insurance buyers will adopt e-insurance. This segment of young aspirants would continue to expand in 2014.

New product regime

• This is in force effective January 1, 2014. While insurers are better prepared compared to the Ulip regime change of September 1, 2010, the acceptance of the new product portfolio by distributors and consumers alike could play a critical role in shaping how the year ahead turns out to be for insurers.

• Risk coverage will, rightly, expand faster than premium growth. Insurance players will also work towards improving efficiencies and manage costs on a tight leash.

• Given that most of the desired regulations are in place, the regulator will also lay greater emphasis on the development part of its mandate in 2014. The first quarter of 2014 would set the momentum for rest of the year. Until then, the industry continues its tryst with uncertainty.