• Introduction to Indian Banking Industry :-

The banking scenario in India has already gained all the momentum, with the domestic
and international banks gathering pace. The focus of all banks in India has shifted their
approach to 'cost', determined by revenue minus profit. This means that all the resources
should be used efficiently to better the productivity and ensure a win-win situation. To
survive in the long run, it is essential to focus on cost saving. Previously, banks focused
on the 'revenue' model which is equal to cost plus profit. Post the banking reforms, banks
shifted their approach to the 'profit' model, which meant that banks aimed at higher profit
maximization
The Indian banks are hopeful of becoming a global brand as they are the major source of
financial sector revenue and profit growth. The financial services penetration in India
continues to be healthy, thus the banking industry is also not far behind. As a result of
this, the profit for the Indian banking industry will surely surge ahead. The profit pool of
the Indian banking industry is probable to augment from US$ 4.8 billion in 2005 to US$
20 billion in 2010 and further to US$ 40 billion by 2015. This growth and expansion pace
would be driven by the chunk of middle class population. The increase in the number of
private banks, the domestic credit market of India is estimated to grow from US$ 0.4
trillion in 2004 to US$ 23 trillion by 2050. Third largest banking hub of the globe by
2040 - is that vision too far away?

• Introduction to HDFC Bank:-

Business focus
HDFC Bank deals with three key business segments. - Wholesale Banking Services,
Retail Banking Services, Treasury. It has entered the banking consortia of over 50
corporates for providing working capital finance, trade services, corporate finance and
merchant banking. It is also providing sophisticated product structures in areas of foreign
exchange and derivatives, money markets and debt trading and equity research.

HDFC Bank is headquartered in Mumbai. The Bank has an network of 1725 branches
spread in 780 cities across India. All branches are linked on an online real-time basis.
Customers in over 500 locations are also serviced through Telephone Banking. The Bank
has a presence in all major industrial and commercial centres across the country. Being a
clearing/settlement bank to various leading stock exchanges, the Bank has branches in the
centres where the NSE/BSE have a strong and active member base.

The Bank also has 5,016 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.
Wholesale banking services
blue-chip manufacturing companies in the Indian corp to small & mid-sized corporates
and agri-based businesses. For these customers, the Bank provides a wide range of
commercial and transactional banking services, including working capital finance, trade
services, transactional services, cash management, etc. The bank is also a leading
provider of for its to corporate customers, mutual funds, stock exchange members and
banks.
Retail banking services
The objective of the Retail Bank is to provide its target market customers a full range of
financial products and banking services, giving the customer a one-stop window for all
his/her banking requirements. The products are backed by world-class service and
delivered to customers through the growing branch network, as well as through
alternative delivery channels like ATMs, Phone Banking, NetBanking and Mobile
Banking. The Bank is well positioned as a leader in various net based B2C opportunities
including a wide range of internet banking services for Fixed Deposits, Loans, Bill
Payments, etc.
Treasury
Within this business, the bank has three main product areas - Foreign Exchange and
Derivatives, Local Currency Money Market & Debt Securities, and Equities. These
services are provided through the bank's Treasury team. To comply with statutory reserve
requirements, the bank is required to hold 25% of its deposits in government securities.
The Treasury business is responsible for managing the returns and market risk on this
investment portfolio.
Distribution network
HDFC Bank is headquartered in Mumbai. The Bank has an network of 1725 branches
spread in 780 cities across India. All branches are linked on an online real-time basis.
Customers in over 500 locations are also serviced through Telephone Banking. The Bank
has a presence in all major industrial and commercial centres across the country. Being a
clearing/settlement bank to various leading stock exchanges, the Bank has branches in the
centres where the NSE/BSE have a strong and active member base.The Bank also has
5,016 networked ATMs across these cities.
• Introduction to the Concept:-
A home loan or a mortgage can be simply described as the money taken out in order to
purchase a home. Now we are going to discuss some basic concepts of a home loan or a
mortgage so that the first time home buyer can have a clear idea about the terms and
conditions of a mortgage loan.
Mortgage is a kind of loan, which is secured by real property through the presence of
legal documents, which evidence the existence of the loan. Very few individuals have
enough cash to purchase a home. So, most of the people prefer to take out mortgage loans
for financing their homes.
Two basic types of mortgage loans are Fixed Rate Mortgage (FRM) and Adjustable Rate
Mortgage (ARM).
Fixed rate mortgage (FRM): In case of an FRM, the rate of interest remains fixed for
the life or the term of the loan. Usually, the term stretches from 15 to 30 years.

Adjustable rate mortgage (ARM): In an ARM, the interest rate remains fixed for a
certain time span. Then, the interest gets adjusted according to the market indices.
There are some other classifications of a mortgage loan, such as, balloon mortgage, home
equity loan, jumbo mortgage, reverse mortgage, etc.

• Objective of the study:-

1. To analyze the customer’s perception about the housing loan .
2. To assess which is most influencing factor for the customer while taking housing
loan .

• Limitation of the study :-

1. Only HDFC bank is being focused due to time & cot constraints .

• Scope :- For this study all the branches of HDFC bank in jaipur are being
concentrated .To conduct this study customers visiting the banks ,consultancies firms
are being focused .

• Review of literature :- We got the idea about research methods & what is the
concept of analyzing the data from the book Business Research Methods written by
Alan Bryman & Emma Bell & another book Business Research Methods written by
Donald R Cooper & Pamela S Schindler .
• Data sources :-
1. Secondary Sources :- Internet , Magazines , CNBC news channel ,
2. Primary Sources:- Customers visiting the HDFC bank for taking home loan ,

• Sampling :-
The method of study will be non probability sampling. Sampling will be done on the
convenience basis. Sample size will be of 50 people .

• Analysis of data :-
1. Survey :– A questionnaire will be used to identify the factors affecting candidates
while taking loan .
2 Secondary data analysis :- For this purpose previous studies will be refered .

• Report preparation :- This report will be submitted to various branches of

the HDFC bank & consultancies firms on which study research has been conducted .
• Budget and duration of the Research :- Budget of conducting this
research will be approximately Rs.25000 & the duration for this will be 5 to 6
months .
• Bibliography :-
Books:-
• Cooper D. & Schindler P.,2006 Edition, Business Research Methods, New Delhi,
Tata McGraw-Hill Publishing company
• Bryman A. & Bell E.,2008 Edition , Business Research Methods, Noida, Gopsons
Paper Ltd.
Websites :-
www.interest.com
www.homeloansdebt.info
 Analysis of Customers ‘ Perceptions with Home Loans with
Reference to HDFC Bank

Submitted for Internal Assignment (Business Research)

Submitted By:

Students Name:-

Shruti Sharma

Yamnini Sharma

Yashashawi Badolia

Jyotsana Tyagi

PGDM10-12

Month -Janauary

2011