CONTENTS

CHAPTER 1

INTRODUCTION
1.1) INDUSTRY PROFILE
1.2) COMPANY PROFILE
1.3) PRODUCT PROFILE
1.4] OPERATIONAL CONCEPTS

CHAPTER 2

McKINSEY 7s MODEL AND SWOT ANALYSIS

2.1] APPLICATION OF 7s MODEL
2.2] SWOT ANALYSIS

CHAPTER 3

DESIGN OF STUDY
3.1] NEED OF THE STUDY
3.2) STATEMENT OF PROBLEM
3.3) OBJECTIVE OF STUDY
3.4] METHODOLOGY OF THE RESEARCH
3.5) SCOPE OF THE STUDY
3.6) LIMITATION OF STUDY

CHAPTER 4

: ANALYSIS AND INTERPRETATION

CHAPTER 5

: RESEARCH FINDINGS

CHAPTER 6

: SUGGESTIONS AND CONCLUSIONS

BIBLIOGRAPHY& ANNEXURES

LIST OF TABLES

SERIAL
NO:
5.1A

CONTENTS
Age of Respondents age

47

5.1B

Gender of Respondents

49

5.1C

Occupation Respondents

51

5.1D

Monthly income of Respondents

53

5.2

Current bankers of Respondents

55

5.3

Respondents satisfaction level against bank services

57

5.4

Nature of Return On Investment

59

5.5
5.6

Residence type of Respondents

Availed Home Loan Respondents

61
63

5.7

Respondents interest in Home Loan

65

5.8

Respondents purpose of Home Loan

67

5.9

Collateral security of Home loan

69

5.10

Respondents EMI preference of Home Loan

71

5.11

Respondents payment mode preference

73

5.12

Effectiveness of communication media in market

75

5.13

Respondents satisfaction level on ABN AMRO

services

77

LIST OF CHARTS

PAGE NO:

SERIAL
NO:
5.1A.1

CONTENTS

PAGE NO:

Age of Respondents age

47

5.1B.1

Gender of Respondents

49

5.1C.1

Occupation Respondents

51

5.1D.1

Monthly income of Respondents

53

5.2.1

Current bankers of Respondents

55

5.3.1

Respondents satisfaction level against bank services

57

5.4.1

Nature of Return On Investment

59

5.5.1

Residence type of Respondents

61

5.6.1

Availed Home Loan Respondents

63

5.7.1

Respondents interest in Home Loan

65

5.8.1

Respondents purpose of Home Loan

67

5.9.1

Collateral securities of Home loan

69

5.10.1

Respondents EMI preference of Home Loan

71

5.11.1

Respondents payment mode preference

73

5.12.1

Effectiveness of communication media in market

75

5.13.1

Respondents satisfaction level on ABN AMRO

services

77

EXECUTIVESUMMARY

EXECUTIVE SUMMARY
The private and MNC banks in India is today paving through one of its rough times. Though
it has a tremendous growth potential, the competition and related factors have made the
scenario worst. This has really compelled the banking industry to come out with improved
performance with their customers. ABN AMRO Bank as usual remains vibrant by attracting
all the customers.
This part of the study covers the industry profile, company profile, McKinneys 7S
Evaluation, SWOT Analysis, Product profile, Design of the Study, Scope of the Study,
Definition of the Concepts, Methodology of Research, Sampling Design apart from;
STATEMENT OF THE PROBLEM
CUSTOMER AWARNESS OF ABN AMRO BANKS HOME LOAN SERVICES.
To increase the market share Home Loan and the customer satisfaction. And also expand the
awareness and reach of ABN AMRO Bank Home loan products to prospective people.

OBJECTIVE OF THE STUDY

This part of the study points to the objectives of the company and what the researcher wants
to achieve by conducting the study.

To determine the customer awareness towards the housing finance.

SUMMARY OF FINDINGS
This part of the report covers the summary of findings drawn from the entire study and the
finding of the study.

SUGGESTIONS AND CONCLUSIONS

This part of the study covers the suggestion given on the basis of the study conducted in
order to improve the organization as a whole, and the conclusions made after preparing the
entire project report.
The study was mainly aimed to understand the performance of housing finance and identify
the top bank in providing housing finance. The study covers the other vital objectives like, to
find out the awareness, attitude and interest on housing finance. To study the services of
ABN AMRO BANK with other Bank, to know the Home Loan market shares of different
Banks and to suggest remedial measures top increase the market share.
In order to gather relevant information, a suitable questionnaire was designed and
administered to a cross section of various Banks constituting of 100 total respondents, to
ensure that adequate and relevant data is collected. It has been observed during the study that
most of the customers are salaried and are employed in MNCs and private Co., and most of
the respondents are worried about the interest rates. The study also revealed that market
performance have a greater impact on customers interest and hence success.
In addition to this study it was also found that ICICI holds high Home loan customers.
Followed by SBI, HDFC and CITI Bank. Majority of the respondents revealed that SCB and
CENTURION Bank as a poor performer in the market. ABN AMRO Bank needs extra
promotional activity in order to increase its housing finance market.

CHAPTER- 1
INTRODUCTION
1.1. INDUSTRY PROFILE
BANKING SCENARIO IN INDIA, POST 90S
Banks in India have traditionally offered mass banking products. Most common deposit
products being Savings Bank, Current Account, Term deposit Account and lending products
being Cash Credit and Term Loans. Due to Reserve Bank of India guidelines, Banks have
had little to do besides accepting deposits at rates fixed by Reserve Bank of India and lend
amount arrived by the formula stipulated by Reserve Bank of India at rates prescribed by the
latter.
PLR (Prime lending rate) was the benchmark for interest on the lending products. But PLR
itself was, more often than not, dictated by RBI. Further, remittance products were limited to
issuance of Drafts, Telegraphic Transfers, Bankers Cheque and Internal Transfer of funds. In
view of several developments in the 1990s, the entire banking products structure has
undergone a major change. As part of the economic reforms, banking industry has been
deregulated and made competitive. New players have added to the competition. IT
revolution has made it possible to provide ease and flexibility in operations to customers.
Rapid strides in information technology have, in fact, redefined the role and structure of
banking in India. Further, due to exposure to global trends after Information explosion led
by Internet, customers - both Individuals and Corporate - are now demanding better services
with more products from their banks. Financial market has turned into a buyer's market.
Banks are also changing with time and are trying to become one-stop financial
supermarkets. Market focus is shifting from mass banking products to class banking with
introduction of value added and customized products.
The bank of the future has to be essentially a marketing organization that also sells banking
products. New distribution channels are being used; more & more banks are outsourcing
services like disbursement and servicing of consumer loans, Credit card
business. Direct Selling Agents (DSAs) of various Banks go out and sell their products.

They make house calls to get the application form filled in properly and also take your
passport-sized photo. Home banking has already become common, where you can order a
draft or cash over phone/internet and have it delivered home. ICICI bank was the first

among the new private banks to launch its net banking service, called Infinity. It allows the
user to access account information over a secure banking scenario in India, post 90s.
Banks in India have traditionally offered mass banking products. Most common deposit
products being Savings Bank, Current Account, Term deposit Account and lending products
being Cash Credit and Term Loans. Due to Revenuer durable loans, education loans, loans
against share, finance against gold.
AN OVERVIEW OF HOUSING FINANCE INDUSTRY
Gone are the days of saying, Fools build house and the wise live in them. Owning a house
has always been a cherished dream and considered to be a priced possession that lends
identity, social security and emotional satisfaction to the owner for the rest of his life. Earlier
days acquiring a property meant spending of a major portion of the lifes savings and wait
till the last fag of life.
Ushering in housing loan has brought radical change and had made dream come true for
millions in owning a house. Housing finance industry has seen a phenomenal growth in past
few years and is playing a key role in the Indian economy these days. There is a huge influx
of people going for purchase of readymade flats/ construction of new houses in urban areas.
There is a huge market in housing sector. A fleet of housing finance companies of all sizes
and nature, government organizations, insurance companies, banks and co-operatives has
entered into housing finance business. Due to continuous recession in the country for few
years, the industrial loans are not picking up, living the banks with huge unutilized liquid
cash. This has titled nationalized and private banks to enter into housing loan business and
decontrol
of the housing sector has also motivated many banks and housing finance companies to enter
into housing finance arena.
The housing finance is maintaining strong growth trend estimated around 30% per year for
the last few years. Today there are approximately 320 companies in the business of housing
finance, but among this 26 companies control 95% of the total volume of business.

The factors that have propelled the growth in housing sector include a downslide in property
prices, lowering of interest rates on housing loan and increase income of the consumers, etc.

The robust growth in the demand of housing finance in the recent year has been remarkable.
Lower interest rates, tax incentive for home ownership, massive competition by providers of
housing finance has helped consumers considerably.
The industry is witnessing a boom. Currently boosted by the generous budget sops and rock
bottom real estate prices. The demand is a result of genuine individual needs for housing.
The prospect of the industry would be further strengthened on the amendments to the rent
control acts and repealing of the controversial urban land ceiling act. Thus the housing
finance industry is on solid ground and has interesting prospective ahead. As for the small
players, they will have to take the harsh decision to either exists in the industry or merge
with bigger entities.
Due to industrial recessionary trend housing finance sector has seen the entry of many
nationalized and private sector banks, insurance companies, government bodies and housing
finance companies. Major players in the housing finance industry are HDFC, SBI housing
finance, LIC housing finance, ICICI, HSBC, Citibank, etc. The housing finance industry is
witnessing a clash between major players. Undercutting in the interest rates, reducing or
eliminating processing/ administrative charges, fast loan processing, extra sops, etc are being
used as tools to lay the major players to gain market share in home loans.
Housing finance continues to register strong growth. Greater affordability on account of
lower interest rates and higher disposable income, stable property prices and increased
urbanization have contributed to the sustained growth of the sector. Fiscal incentives for
housing have also helped the sector.
RECENT TRENDS IN FINANCIAL SECTOR AND BANKING
Investment in India - Banking - Financial Sector & Banking
Continuing reforms in the banking sector were aimed at improving the efficiency and
financial strength of commercial banks. Aggregate deposits of the scheduled commercial
banks stood at dols 1.48 billion in IFY1997-98, an increase of 15.1 percent.

NET PROFITS OF COMMERCIAL BANKS

Net profits of scheduled commercial banks rose sharply from dols 24 million in 1995-96
to1.2 billion in 1996-97, an increase of 387 percent. Much of the increase was due to
marking government securities to market prices, following significant declines in prevailing
interest rates. Three public sector banks received capital restructuring loans from the
government totaling dols 68 million in 1997-98, enabling those banks to reach a capital
adequacy ratio of 8 percent.

AUTONOMY PACKAGE
In November 1997, the Indian government announced an autonomy package for financially
stronger public sector banks to help them compete more efficiently in a liberalized
environment and to accelerate credit creation. Eleven banks qualified for the autonomy
package.

THE CRITERIA FOR ADMINISTRATIVE AUTONOMY ARE:

Capital adequacy of at least 8 percent;
Net non-performing assets of less than 9 percent;
Minimum net owned funds of more than dols 2.5 million (Rs 100 crore);
And a net profit for the last three years. Banks that meet the four criteria will be given
operational freedom in most administrative matters.

MAJOR PLAYERS IN BANKING SECTOR IN INDIA:

Domestic Banks:

State Bank of India

ICICI

Canara Bank

HDFC ect.

Foreign Banks:

CITI Bank

ABN AMRO Bank

Standard Chartered Bank ect.

1.2 COMPANY PROFILE

PROFILE:
The goal of ABN AMRO is to create value for its clients. Key in their relationship approach
is a constant focus on the financial services needs of their client segments. It is through the
professionalism and motivation of their global staff that they realize this value, resulting in
maximum economic value for their shareholders.
They are active in three principal customer segments: Consumer & Commercial Clients,
Wholesale Clients and Private Clients & Asset Management. The objective is to maximize
the value of each of these businesses as well as the synergies between them. Excellence of
service to their clients and leadership in their chosen markets are of paramount importance
to their long-term success.
The ABN AMRO Corporate Values and Business Principles provide the framework within
which the people working under are carrying out their operations.
In brief...
ABN AMRO is a prominent international bank, its history going back to 1824. ABN AMRO
ranks 10th in Europe and 22nd in the world based on tier 1 capital, with over 3,400 branches
in more than 60 countries, a staff of 110,000 employees and total assets of more than EUR
622 billion (as per end December 2004).

Mission, History and Network:

MISSION:
"ABN AMRO's mission is to create maximum economic value for our shareholders through a
constant relationship focus on the financial services needs of our chosen client segments and a strict
adherence to our financial targets. We are operating in three principal customer segments, whereby
the objective is to maximize the value of each of these businesses as well as the synergies between
them. Excellence of service to our clients and leadership in our chosen markets are of paramount

importance to our long-term success. The Bank's corporate values play an integral role in the
fulfillment of our mission."

HISTORY:
On 29 March 1824 King Willem-I issued a royal decree creating the Nederlandsche HandelMaatschappij with the aim of reviving trade between the Netherlands and the Dutch East
Indies. In 1964, NHM merged with De Twentsche Bank to form Algemene Bank Nederland
(ABN), while Amsterdamsche Bank and Rotterdamsche Bank joined to become
Amsterdam-Rotterdam (Amro) Bank. In 1991, these two banks merged as ABN AMRO
Bank. Today, ABN AMRO Bank has a powerful presence in world markets, building on a
tradition of stimulating international trade.

NETWORK:
As an international bank, they have more than 3,500 branches in over 70 nations across the
globe. ABN AMRO, the Network Bank caters to everyones needs both at home and abroad.

CORPORATE VALUES
ABN AMROs Corporate Values provide the foundation for the bank's newly introduced
Business Principles. The bank formulated these Corporate Values in 1997.

INTEGRITY:
Above all, they are committed to integrity in all that they do, always, everywhere.
TEAMWORK:
Teamwork is the essence of their ability to succeed as a trusted preferred supplier of
financial solutions to their clients. Their overriding loyalty is to the good of the whole
organization, requiring them all to learn from each other and to share their skills and
resources across organizational boundaries for their clients' benefit.

RESPECT:
We respect every individual. We draw strength from equal opportunity and diversity, at the
same time supporting personal growth and development. We value and we all benefit from
the entrepreneurial spirit of each individual.

PROFESSIONALISM:
To be of service to their clients they are committed to the highest standards of
professionalism, pursuing innovation, deploying imagination, being open to new ideas and
acting decisively and consistently. They are determined to deliver outstanding quality so that
their relationships with their clients are long lasting and close.

ABN AMRO BRANCHES IN INDIA

With assets over US $532 billion and an AA credit rating, ABN AMRO Bank ranks among
the top 10 banks in the world in size and strength. Their international network comprises
3,568 branches and offices in over 320 cities and 76 countries and territories, with over
100,000 highly qualified staff. As a global bank, they can handle the most complicated
cross-border transactions, yet they also understand the subtleties of local markets.

ABN AMRO IN INDIA

ABN AMRO Bank (India) has an eight-decade long experience of the Indian business
scenario.
Traditionally known as a strong "diamond-financing bank", it has turned into a bank
providing a comprehensive range of services with a difference.
ABN AMRO (India) has branches in Mumbai, Delhi, Chennai, Kolkata, Pune, Baroda,
Hyderabad, Bangalore and Noida with each branch servicing multi-product relationships.
Consumer banking offers a suite of products for every ones personal financial needs offered
through various channels including ATMs, Doorstep Banking and Net Banking.
ABN AMRO Bank in India enjoys a strong image as a corporate bank with comprehensive
Global Transaction Services. Its investment banking services are delivered through ABN
AMRO (India) Corporate Finance and the Global Financial Market Teams, which strive to
maintain the permanent position, they have built in the marketplace.

ABN AMRO Bank has launched its Private Banking Services in India offering a
comprehensive range of high quality Portfolio Advisory Services along with a
comprehensive transaction execution platform, complemented by personalized Banking and
custodial services.
THREE GLOBAL STRATEGIC BUSINESS UNITS (SBUS):

I. CONSUMER & COMMERCIAL CLIENTS (C&CC) - for individuals and small- to

medium-sized enterprises requiring day-to-day banking. We serve approximately 15 million
clients, mainly through our major presence in three home markets: the US Midwest, the
Netherlands and Brazil. The Business Unit New Growth Markets is also expanding its
consumer and commercial operations in selected countries such as India, Hungary and
Thailand.
II. PRIVATE CLIENTS & ASSET MANAGEMENT (PCAM) - for individuals and
institutional investors. ABN AMRO is a leading player in private banking both in the
Netherlands and in France, and has strong positions in Luxembourg, Miami and Switzerland.
Private Clients ranks among the world's top 10, with EUR 96 billion in Assets under
Administration. Asset Management has a local presence in 30 countries and EUR 150 billion
in Assets under Management.

III. WHOLESALE CLIENTS (WCS) - for major international corporations and institutions.
This is one of the largest Europe-based wholesale banking businesses with around 10,000
clients, 20,000 staff and operations in over 40 countries. With a global network, specialists
in all major industry sectors and a broad range of products, ABN AMRO provides local and
global expertise for complex cross-border deals.

PROFILE OF ABN AMRO INDIA

ABN AMRO Bank (India) has an 81-year long experience of the Indian business scenario.
Traditionally known as a strong "diamond-financing bank", it has turned into a bank
providing a comprehensive range of services with a difference.

ABN AMRO (India) has had a long-standing presence in India since 1920, in Kolkata and
Mumbai. At that time, the bank mainly worked for diamond clients. The bank took off in a
big way in 1991, after the merger of ABN and AMRO worldwide. The Delhi branch was
functional in the very same year. ABN AMRO was launched in other cities throughout India
between 1994 and 1999. They were Chennai in 1994, Pune in 1997 and Baroda in 1999,
while the Hyderabad and Bangalore branches were opened in 2001.
The bank acquired the retail business of the Bank of America in 1999. The year 2002 saw
the opening of the Noida office. AA Securities [I] Pvt. Ltd. formed in September 1998.
ABN AMROs ACHIEVEMENTS

Second overall in banking industry: Financial Express-BRIS survey 2002

Best Cash Management Award in September 2002"

The Banker Top Foreign Bank in India: Economic Times - CMIE survey 2002.

Top Foreign Bank in India: Economic Times - CMIE survey 2002.

Corporate Finance India: Ranked Second in M&A in the Investment Banking arena
in 2001 - Economic Times.

ABN AMRO Securities India: Best Foreign Bond House; No 1 Arranger in Private
Sector: Euro money 2000.

Top Bank on "Management Quality" parameter: Business India 'Best Banks Survey
2000'.

7th Most Admired Commercial Bank in the World: Fortune Magazine, 2000.

1.3 PRODUCT / SERVICE PROFILE

The products and services in consumer banking:
Consumer Banking
Home Loans
Loan Products

Loans against Securities

Personal Loans
Car Loans
Freedom Credit Card

Credit Card

Smart Gold Card

Card for you
Services
FAQs
Savings Accounts

Deposit Products
NRI Services
Investment Services

Value+ Current Accounts

Easy Draw Fixed Deposits
Value Added Services
Products and services
Mutual funds
Debit Card
Net Banking
Express Cash

Services

ATM Services
24 Hour Bank by Phone
Bill Payment
Doorstep Banking
Depository Services
National Access
365 Days Banking
Extended Banking Hours

PRODUCT-SERVICE PROFILE:
ABN AMRO Bank has a variety of products to offer. It has been rated as the #1 Bank in
India KPMG survey 2002, and also has been rated as the best service provider Bank,
recently. ABN AMRO Bank, Bangalore Branch mainly deals with consumer banking or
called Retail Banking.
Products offered by ABN AMRO Bank:
Deposit Products: There are two categories, namely, flex account and Shakti account.
Flex Account: A unique savings account that not only gives more access and convenience
but also enhances the earnings in various ways. The minimum initial deposit is Rs 10000/and an average daily balance of Rs 10000/- should be maintained.
Shakti Account: A saving account devised especially for the female population to give
power and flexibility to Bank at ones convenience. The minimum initial deposit is Rs5000/the first applicant being a woman, an average daily balance of Rs5000/-ought to be
maintained. It is in the nature of a joint account.
Bank Fixed Deposit: Deposits for different period at an attractive rate of interest.
Value+ current Account: An innovative and money saving current account where one can
save up to Rs90000/- annually throughout. It allows choosing the balance one wishes to keep
with the Bank.
Value+ silver;
Value+ silver 20

-Rs20000/-Average Daily Balance.

Value+ silver 40

-Rs40000/-Average Daily Balance.

Value+ Gold;
Value+ Gold 100

-Rs100000/- Average Daily Balance.

Value+ Gold 300

-Rs300000/- Average Daily Balance.

Value+ Gold 500

-Rs500000/- Average Daily Balance.

Value+ textile gold account: An account for companies availing a variety of services. The
textile account requires to maintained minimum of 1 lack as an average of monthly balance.
Loan Products: Loan against securities, Home Loan, Car Loan, etc.

Cards Products: Freedom credit card, smart gold card, Health Shield quality insurance.
Investment Products: This comprises of insurance products (tie-up with AVIVA Life
Insurance) and mutual funds.
SERVICES OFFERED BY ABN AMRO BANK:
International Debit Card: Free for the first year, easiest way to access to saving account.
Wide ATM access: Free access to all UTI ATMs in India as the Bank is linked with UTI.
Also one can access the Maestro or circus Network
Free doorstep banking: Free cash and draft delivery one cheque or documents pick-up per
day.
Net Banking: Where one can open a fixed deposit, make a draft, pay bill or check account
balance, stop payment on cheque, transfer funds between own or other account with the
bank, request for a new cheque book or for cash deliveries, receive alerts though email and
SMS, communicate with the bank through personal mail box.
24hours Bank by Phone: For assistance on demand draft/cash delivery. Courier pickups,
opening a fixed Deposit Account, ect;

Utility Payments: Where one can pay electricity and telephone bills by ATMs or Bank by
Phone facility provided by the bank.
Royalties: The Bank pays for actually using the account. One can earn valuable points on
the Debit Card.

Other services: Free Credit Card for first year with add-on Card also free for the first
year,365 Banking- 10Am to 7Pm,Free Electronic funds are Transfer, Free pay orders,
Attractive rates on Foreign Exchange and Trade Services and many more services.

ABOUT ABN AMRO HOUSING FINANCE

WITH THE ALL SMILES SUPER SAVER PACKAGES

INTRODUCING ALL SMILES HOME LOANS FROM ABN AMRO BANK:
ABN AMRO BANK home loans have been specially designed keeping customers unique
needs and requirements in mind.
From low interest rates to flexible loan repayment terms, ABN AMRO BANK takes care of
everything to help customers own and build the house customers bank always wanted! And
all this comes from a bank customers can trust, as have millions of satisfied customers in
320 cities across 76 countries in which ABN AMRO BANK operate. Whats more, there is
an additional benefit for existing customers; they get to enjoy 0.25% off on prevailing rack
rate!
ABN AMRO BANK home loans provide customers with an unbeatable range of
benefits;
Financing of up to 90%
ABN AMRO BANK home loans help customers pay to 90%of the purchase price of he/her
home including registration charges, external development cost, one time maintenance cost,
parking bay cost etc. we also provide finance for fixtures, fittings renovation etc.
Range of interest rate plans
ABN AMRO BANK has a range of interest rate plans for customers to choose from. The
range includes fixed rate, floating rate and super saver package.
Prepayment benefits
ABN AMRO BANK offer free part pre payment benefits customers can prepay 25% of
he/she outstanding loan amount twice a year, every year. No prepayment charge will be
levied after completion of 5years of the loan. Customers can also reschedules he/she
repayment tenure, if customers so choose.

Flexible loan term

ABN AMRO BANK offer loan repayment options from 1 to 20 years.
Regular EMI plan,
Under this plan, customers Emi are directly linked to the rate of interest.

Construction linked EMI plan

If customers home is under construction at the time of purchase, customers can chose to pay
EMI with every disbursement. This way customers can start repaying he/she loan early, and
thus reduce customers total interest cost.
Other home loan services from ABN AMRO bank
ABN AMRO bank dose not stops at providing customers with home loans. From
construction to renovation and even customers childrens education, ABN AMRO bank have
a range of home loans to take care of everything customers may need to acquire a new
home, and a happy life.
Range of home loan services from ABN AMRO banks includesConstruction Loan
This loan enables customers to first buy a plot of land and then construct a home on the
same.
Home extension loan
Ideal for a growing family wanting to add more rooms or sections to their existing home, the
home extension loan enables customers to take up to 85% of the estimated cost subject to
75% of the value of the property.
Renovation loan
This loan takes care of al customers renovation expenses, while he/she sit back and watch
your home transform into the home of your dreams! With this loan, customers can take up to
100% of the estimated cost subject to 25% of the property.
Top-up loan
Once customers have taken a home loan, he/she can choose to avail more loans for
customers other needs like marriage, childrens education etc. against the same property.

Balance Transfer loan

If customers already have an existing mortgage loan with another financier customers can
speak to our loan customer relation ship managers to know the several benefits and savings
customers enjoy when he/she switch over to a home loan from ABN AMRO BANK.

The maximum loan amount that can be sanctioned.

Then maximum loan amount that can be sanctioned should be the lower of 90% of the
property value or the home loan repayment installment (EMI), which should not exceed 45%
- 60% of customers gross monthly income as ascertained by the bank.
Fixed rate of interest
Interest rate that is reprised every 3 years is called fixed rate of interest.
Floating rate of interest. The interest rate that is re priced every six months is called floating
rate of interest.
Repay customers home alone ahead of schedule.
ABN AMRO BANK offer free part pre payment benefits. Customers can prepay 25% of
customers outstanding once in a year. Every year. No prepayment charge will be levied after
the completion of 5 years of the loan. Commercial refinance how ever, will be charged.
How long will it take to sanction loan.
Customers loan will be available for use within 4 working days of completing all
formalities and final approval. Customers home loan can be disbursed once customers select
his/hers home and submit the original title documents as mentioned in the Procedures &
Drafts Handbook. (In some cases, additional documents may be required as per our advice).
After legal and technical clearance of the title documents, the loan amount will be disbursed.
Documents required
Here is an indicative list of documents required:
Passport size photographs of all applicants.
Age verification proof (copy of passport, birth certificate, driving license and school leaving
certificate).

Bank statements for the last six months. Salary account for employed and main account for
self employed.
Processing Fee cheque (Rs5, 600)
Income documents are as follows:
Income Tax returns for the last 3 years duly certified by a charted accountant.

Balance sheets and Profits & Loss Account of the business / profession and individuals for
the last 3 years duly certified by a charted accountant.
Memorandum / Articles of Association of company, partnership deed for firms and profile
of your company / firm giving details of organizational structure, clients, suppliers etc.
What are the different types of loans available In ABNAMRO?
ABN AMRO offers other Home Loan products that can provide additional benefits to
customers Home.
ABN AMRO Renovation Loan - After securing customers home, customer may want to
transform it into customers very own abode. Maybe customers will like kitchen and
bathrooms to have designer fixtures or living room to be painted in vibrant colors.
Customers can now actualize dream by taking an ABN AMRO Renovation Loan.
Customers can take a Renovation Loan up to 100% of the cost estimate subject to 30% of
the market value of the property.
ABN AMRO Home Extension Loan - customers have secured a Home and now
customers family needs more space for living, customers growing children want separate
rooms. Customer and customers family can realize your dream by taking an ABN AMRO
Home Extension Loan. Customer can take up to 85% of the cost estimate subject to 80% of
the market value of the property.
ABN AMRO Top-up Loan - After taking a ABN AMRO Home Loan, customers can
further cement relationship by taking a top-up loan for other financial needs like marriage,
education etc, against the same property.
What's more, if customers are currently having an existing mortgage loan with another
financier, speak to our loan counselors at Bank Branches to find how clients much savings

customer

can

enjoy

by

switching

over

to

ABN

AMRO

Home

Loan.

ABN AMRO Offers Loan against residential properties Loan can be used for any legal
purposes

When

customer

can

apply

for

home

loan

from

ABN

AMRO?

Customer can get a home loan sanctioned from ABN AMRO if customer have just decided
to acquire a Home in the near future, i.e. even before selecting a home

What is the current FLOATING RATE of INTEREST?

Floating Rate HPLR+50 basis points

Current

HPLR

7.25%p.a.
For Unverified Income Home Loan Scheme only Floating Rate of Interest Scheme is offered
and it is @ HPLR+100 basis points = 8.25% p.a.
For Home Equity Loan only Floating Rate of Interest Scheme is offered and it is @
HPLR+200 Basis points = 9.25% p.a. The rate is linked to ABN AMRO's Home Loan Prime
Lending Rate (HPLR). The reset dates are - 1st of January and 1st of July of each Calendar
Year.
What tax benefits do customers enjoy on housing loans?
Tax benefits are available on the principal and interest components of a housing loan as per
the Income Tax Act, 1961. As the benefits could vary each year, please check out the current
benefits available.
Who can be co-applicants?
Proposed owners of the prospective home will necessarily be co-applicants. However, all coapplicants need not be co-owners.

Customers can buy the property in my minor child's name and repay the loan as a
guardian?
Customers should not do so as the legal complications involved in transacting such
properties is very cumbersome. Banks or housing finance company will not extend a home
loan facility on such properties.

Will ABN AMRO help customers protect life during the repayment term of the loan?
ABN AMRO will offer Loan Protection Assurance, a comprehensive reducing straight term
assurance at easy monthly payments, that protects customers family from the burden of
loan repayment should anything unforeseen happens to customer.
Customers can repay loan ahead of schedule?
Yes, customers have the option to prepay the loan ahead of schedule. No prepayment
charges are applicable for part prepayment up to 25% of the annual opening balance. Please
see "Other Charges"
How do customer get loan sanctioned?
Customers are welcome to visit our nearest Branch or just call us and our counselors will
assist you through the process. Bank can also visit you at residence or office
How long will it take for customer loan to be processed?
ABN AMRO Bank shall use its best endeavor to inform customers about the decision
status of customers loan application, usually within 4 days from the date all documents/
information, as required by the Bank, from time to time, is furnished by customers to the
Bank.
What are the current applicable rates of interest & other charges?
New Pricing Grid
HPLR: 7.25 %
Home Loan Rates of Interests:

Scheme:
2 Yrs. Super Saver

7.50 % for 1st yr. & 7.75% for 2nd yr. There
after the then Prevailing Floating Rate @
HPLR+50 Basis Points.

3 Yrs. Super Saver

7.75% for 1st 3 yrs. There after the then

Prevailing Floating Rate @ HPLR+50 Basis
Points.

5 Yrs. Super Saver

7.75% for 1st 3 yrs; 8.00% for 4th & 5th yrs.
There after the then Prevailing Floating Rate
@ HPLR+50 Basis Points.

Floating Rate of Interest for Home HPLR + 50 basis points

Loans

1.4 OPERATIONAL DEFINITION OF CONCEPTS

MARKETING RESEARCH
Marketing research is the function, which links the consumer, customer and public to the
marketer through information used to identify & to define the market opportunities and
problems; generate refine and evaluate marketing actions; monitor marketing performance;
and improve understanding of market as a process.
MARKETING

Marketing is a societal process by which individuals and groups obtain what they need and
want through creating, offering and freely exchanging products and services of value with
others.
STRATEGY

Strategy is a set of objectives policies and rules that guides over time the firms marketing
efforts. Marketing Strategy is basically concerned with the elements of the marketing
planning process.
CUSTOMER SATISFACTION

Customer satisfaction is the individuals perception of performance of the product or service

in relation to his or her expectations.
CONSUMER RESEARCH

Data collection and potentially strengthening the relationship between the customers and the
company

MOTIVATION

Motivation is the driving force with in individuals that impulses them to action. This driving
force is produced by state of tension, which exists as a result of an unfulfilled need
PERCEPTION
Perception is defined as the process by which an individual selects, organizes and interprets
stimuli into a meaningful and coherent picture of the world.

CHAPTER- 2

McKINSEY7sMODEL
ANDSWOTANALYSIS

2.1 APPLICATION OF 7S MODEL

INTRODUCTION OF 7-S-MODEL:
The 7-S-Model is better known as McKinsey 7-S. This is because the two persons who
developed this model, Tom Peters and Robert Waterman, have been consultants at
McKinsey & Co at that time.
Those seven elements are distinguished in so called hard Ss and soft Ss. The hard elements
are feasible and easy to identify. They can be found in strategy statements, corporate plans,
organizational charts and other documentations.
The four soft Ss however, are hardly feasible. They are difficult to describe since
capabilities, values and elements of corporate culture are continuously developing and
changing.
They are highly determined by the people at work in the organization. Therefore it is much
more difficult to plan or to influence the characteristics of the soft elements. Although the
soft factors are below the surface, they can have a great impact of the hard Structures,
Strategies and Systems of the organization.

DESCRIPTION
The Hard Ss
Strategy

Actions a company plans in response to or anticipation of changes in

Structure

its external environment.

Basis for specialization and co-ordination influenced primarily by

Systems

strategy and by organization size and diversity.

Formal and informal procedures that support the strategy and
structure. (Systems are more powerful than they are given credit)

The Soft Ss
Style / Culture

The culture of the organization, consisting of two components:

Organizational Culture: the dominant values and beliefs, and
norms, which develop over time and become relatively enduring
features of organizational life.
Management Style: more a matter of what managers do than what
they say; How do a companys managers spend their time? What are
they focusing attention on? Symbolism the creation and
maintenance (or sometimes deconstruction) of meaning is a

Staff

fundamental responsibility of managers.

The people/human resource management processes used to
develop managers, socialization processes, ways of shaping basic
values of management cadre, ways of introducing young recruits to

Skills

the company, ways of helping to manage the careers of employees

The distinctive competences what the company does best, ways of

expanding or shifting competences

Shared Values / Super Guiding concepts, fundamental ideas around which a business is
ordinate Goals

built must be simple, usually stated at abstract level, have great

meaning inside the organization even though outsiders may not see
or understand them.

STRATEGY

Strategy sets the vision, mission, objectives, major action plans and policies lf the
organization. These set out the picture of the organization in the future typically spelling out
the overall corporate strategy, the SBU (strategic business unit) strategy and the functional
strategies.
It can also be defined as the choice of direction and action that the company adopts to
achieve its objectives in a competitive situation. It is the first step that a company has to take
in leading its organization to the ladder of success. The competitive advantage for the
company can be achieved by keeping in mind the following points.
What are the companys sources of sustainable competitive advantage (e.g. penetration new
markets, new product development, and improving customer service?)
What are the companys key strategic priorities (e.g. penetrating new markets, new product
development, and improving customer service?)
ABN AMRO is an international bank with European roots and a clear focus on consumer
and commercial banking, strongly supported by an international wholesale business. Our
business

mix

gives

us

competitive

edge

in

our

chosen

markets.

ABN AMRO strategy is built on leveraging our advantages as a Group to create the best
value for and with our clients. It is summarized in five points.
Creating value for our clients by offering high-quality financial solutions that best meet their
current needs and long-term goals.
FOCUSING ON:
Consumer and commercial clients in our home markets of the Netherlands, the US Midwest,
Brazil and in selected growth markets around the world. Selected wholesale clients with an
emphasis on Europe, and financial institutions
PRIVATE CLIENTS
Leveraging our advantages in products and people to benefit all our clients, sharing expertise
and operational excellence across the Group.

Creating 'fuel for growth' by allocating capital and talent according to the principles of
Managing for Value, our value-based management model.

ABN AMRO aims for sustainable growth that will benefit all our stakeholders: our clients,
our shareholders, our employees, and society at large. The ABN AMRO Corporate Values
and Business principles provide the framework operations
We are active in three principal customer segments: Consumer and Commercial Clients
(C&CC), Wholesale Clients (WCS) and Private Clients and Asset Management (PC&AM)

FOCUS ON THE MID-MARKET

Although ABN AMRO serve a broad range of clients, our strategic focus is on the midmarket segment. This is the client area where a strong and distinctive competitive advantage
and where we feel we can be most profitable in the future.
The consumer mid-market consists of clients who require more than a basic banking
package (mass affluent and private clients), but who don't yet fall into the small category of
our top-end private clients. The commercial mid-market ranges from mid-sized companies
in our home markets to a smaller number of large multinational clients and financial
institutions.
Still, clients in our other segments are essential to providing sufficient scale and ensuring
product innovation. The success of our focus on the mid-market depends on our continuing
presence at the top end of the market and the mass-market segment. The focus on our
primary target clients will also guide our future investments and acquisitions to enhance
profitable revenue growth.
ONE GROUP
Another key element of ABN AMRO strategy is deriving more value from being one Group.
The creation of a shared product organization comprising payments and trade, called
Transaction Banking, and the creation of a Group Services organization that oversees all
services and operations in the Business Units and in Group Shared Services, will enable us
to leverage our global advantaged capabilities and increase the impact of ABN AMRO
investments the sires.
The mid-market franchise outlined above will be the growth engine of the Group, and we
have therefore created two global cross-BU segments: a consumer segment and a

commercial segment. These two segments will drive growth by working across our Business
Units.
Unique delivery
The ABN AMRO Group is well positioned to capitalize on our focus on the mid-market
segment. Success requires a combination of local and international capabilities:
Local relationships
An extensive and competitive product suite
Efficient delivery
Sector knowledge (in the case of corporations)
International network
ABN AMRO is one of the few banks in the world that can deliver on all
Of these, in many cases, uniquely.
.
STRATEGIES ADOPTED AT ABN AMRO BANK:
Strategies adopted at ABN AMRO Bank can be understood under its functions:CONSUMER BANKING:
Tap savings potential of affluent urban class.
Emphasize control and convenience
Offer a slew of new products and innovations
CORPORATE BANKING:
Leverage its flat structure to facilitate information flow and

keep the level of NPAs

(Non-Performing Assets) is low.

Use cash-flow-based funding to check NPAs
Offer MIS to clients for faster and cost-effective transaction processing.

FEE-BASED BANKING:

Focus on sectors where there is likelihood of consolidation, liberalization or regulatory

changes.
Leverage relationships of commercial bank and cross-sell.
SHARED SERVICE BUSINESS:
Lower the cost of processing of services for the bank.
Add to the efficiencies of doing business.
Consider offering services to other banks at later stage.
Thus by adopting such strategies ABN AMRO Bank seeks to achieve its objective of
creating value for clients.
STRUCTURE:
Structure includes the policies and procedures that govern the way in which the
organization acts within it and the environment. It provides the framework for relationships
among different parts of organization. It sets out the formal reporting relationships, mode of
communication, their respective roles and rules and regulations for carrying out different
task.

If not properly defined-detrimental effect on the effective and efficient working

because motivation and morale is low, decisions are delayed and of poor quality, the
expenses rises, orders are lost due to competition, lack of confidence. Structure of any
organization has to answer the following question

What is the basic structural form?

How centralized versus how decentralized is the organization?

What is the relative status and power of the organization?

ORGANIZATIONAL STRUCTURE OF ABN AMRO BANK

HEAD QUARTER

COUNTRY HEAD

CORPORATE
BANK HEAD

RETAIL BANK
HEAD
HEAD SALES
MANAGER

ASSISTANT SALES
REGIONAL
MANAGER
HEAD

LIABILITY SALES
HEAD

ASSET
SALES HEAD

SALES MANAGER

TEAM LEADER

Personnel Financial
Executives (PFE)

Personnel Financial

Telemarketing
Executives (TME)

SYSTEMS:
System in this framework stands for the rules and regulation, procedures and practices that
must be allowed to carry out the tasks in the organization. A good system adds to the
efficient in effective working of the entrepreneur.

At ABN AMRO Bank:

The procedure is followed is clear, transparent and complicated. For example in the
Consumer Retail Banking the process for making a deal is as follows;
Targets are set for the week and the month as a whole.
The Telemarketing Executive (TME) makes an introductory call to the potential customer
where in the TME introduces and explains about the company, the financial products and
services offered, in brief.
TME then messages to get an appointment with the interested potential customer.
If the customer agrees, the Personal Financial Consultant (PFC) meets the potential customer
at the appointed time and then explains about the products and services, facilities in a
detailed manner.
The customer is asked for few documents and is required to fill in a form.
These documents are scrutinized by the team leader or the higher authority (if necessary)
and the appropriate decision is taken.
The procedure appears to be simple but a lot of hard work and dedication is put in by
every individual involved in the process at ABN AMRO Bank, beginning from the TME.
STYLE:
Style includes leadership style of top management and overall operating style of the
organization. Style impacts the norms people follow and how they work and interact with
each and with customers.
How does top management make decisions- participatory versus top-down?

How do managers spend their time-in formal meeting, informal conversations, in the field,
with customers, etc.?

At ABN AMRO Bank:

ABN AMRO Bank follows a very ineffable style of functioning;
Managers, staff, etc. are approachable, a perfect blend of formal and informal approach.
They follow a system of rewarding. Rewards are given according to the performance
.Monetary and non-monetary incentives are given.
Personal attention to every individual especially the external trainees, helps in gaining
additional knowledge on various industries, their products. The theoretical concepts are
made clearer through their practical implications formal conversations, which develop
loyalty, motivation, dedication in the employees.
Every Monday it holds meetings where in the top management and employees collectively
participate-targets for the week is set, responsibilities are delegated suggestions are invited,
etc.
STAFF:
The organization has to look into its people, their backgrounds, and competencies, staff also
includes, the organizations approaches to recruitment, selection and specialization. How
people are developed, how recruits are trained, socialized, integrated, and how their careers
are managed?
At ABN AMRO Bank; there are approximately 200 employees.
They are given regular training. On- the- job training provided.
They are involved in all the required meetings, activities.
Staffs are given the freedom to use their innovative and creative skills.
They have a provision of career development. Those interested in pursuing their studies can
do so. Get together are held for staffs to socialize.
Staff grievances are given a listening year.

SKILLS:
Skills include the distinctive competencies that reside in the organization. These can be
distinctive competencies of people, management practices, systems and/or technology. What
business activities is the company distinctively good at performing? What new capabilities
do the organization?
Needs to develop, which one does it need to unlearn to compete in the future. This can be
learning throughSOWT analysis.
SHARED VALUES:
It refers t the core or fundamental values that are widely shared in the organization and serve
as guiding principles that are important. These values have great meaning because they
focus attention and provide a broader sense of purpose. They also give a strong basis of
stability to the organization in a rapidly changing environment by providing a basic meaning
to people working in the organization.
Do people have a shared understanding of why a company exists?
Do people have a shared understanding of the vision of the company?
How do people describe the ways in which the company is distinctive? (e.g.; focus on
quality, emphasis on people).
ABN AMRO Bank is a client/investor-oriented organization that has imbibed this quality
among all its members and employees. The whole unit works today towards the growth and
success of ABN AMRO Bank.

2.2 SWOT ANALYSIS

A SWOT

analysis stands for Strengths, Weaknesses, Opportunities, and Threats and is

simple and powerful way to analyze companys marketing situation.

The SWOT analysis has been a useful tool for industry. The process of utilizing the SWOT
approach requires an internal survey of Strengths and Weaknesses of the programme and an
external survey of Opportunities, and Threats.

STRENGTHS:
What Company does exceptionally well?
What advantages company has?
What valuable assets and resources company has?
What do members or customers identify as company strengths?
COMPANY STRENGTHS:

ABN AMRO Bank has a reputed name worldwide.

It is a Cash Rich Bank.

Recently (2004) been named as the #1 service provider Bank,(Free doorstep

banking,365days of bank from 10Am to 7Pm,bancafe after 7Pm up to 11Pm,free
credit card).

Investment Advisory Services.

Free Demat Account.

Pre-approved Overdraft Facility.

AAA Credit Rating.

Operating with Centralized Account.

Free reimbursement account.

First Bank to tie up with Indian Airlines.

WEAKNESSES:
What could company do better?
What is company criticized for or receive complains about?
What is company vulnerable?

COMPANY WEAKNESSES:

Less branches.

Reach is low.

Awareness is low-in India it still has to gain tap new markets popularity.

Elite customer oriented and concentrating on urban market.

As a private Bank it is less accepted.

OPPORTUNITY:
What opportunities does company know about?
Are there emerging trends on which company can capitalize?
COMPANY OPPORTUNITY:

Open new branches.

Tapping new markets.

Mergers with local Banks.

Target rural market.

THREATS:
Are any companys weaknesses likely to make it critically vulnerable?
What external roadblocks exist that block companys progress?
Are the competitors are quasi- competitors doing anything different?
Is the significant change coming in companys member sector?
Is technology dramatically changing the sector and services to it?
Are economic conditions affecting companys financial viability?

COMPANY THREATS:

Other Banks are planning to offer similar/better services.

May not be opted by many middle class consumers as it is more elite class oriented,
thus lose on market size.

Economic policies controlled by RBI.

SUGGESTION

The company should try to focus on customer awareness in order to enable market
popularity.

Bank has to win the trust of the people as most of the customer s misunderstand and
distrust them.

Bank should mould their approach towards the Indian customers needs by which
they can overcome competition from the other banks.

CHAPTER- 3

DESIGNOFTHESTUDY

3.1 NEED FOR THE STUDY

The ABN AMRO Bank has a common marketing strategy, which has been involved in
conducting strategy from its inception.
The Bank imparts marketing strategy for various employees. The Bank feels that the method
imparted to its employees can gain fruitful result only when the right kind of strategy for the
right kind of employees is done at the right time. Hence, there arises a need for proper and
systematic way of implementing the effectiveness of marketing strategy.
Presently the organization has a system for identifying the marketing strategy needs. For
better effectiveness and to keep pace with the changing trends of the competitive markets, a
need has arisen to make an-depth study of the existing system of the identification of
strategy needs. Hence this problem has been taken up for the study.

3.2 STATEMENT OF THE STUDY

CUSTOMER AWARNESS OF ABN AMRO BANKS HOME LOAN SERVICESIN
BANGALORE. The study aims at identifying the possible strategies to bring the Home
Loan products of ABN AMRO Bank to the prospective people and make them aware of
banks home loan products. It will help in improving the current methods and strategies to
expand the awareness and reach of ABN AMRO Bank Home loan products to prospective
people. This will help in the betterment and improvement of the marketing process, there
by attracting more people.

3.3 OBJECTIVES OF THE STUDY/RESEARCH

The purpose of research is to discover answers to questions through the application of
scientific procedures. The main objective of the research is as following;
Primary Objective:

To determine the customer awareness towards the housing finance.

Secondary Objectives:
1. To compare the services of ABN AMRO bank housing finance with other private &
Multi-National Banks in Bangalore.
2. To study and analyze the promotional activities of ABN AMRO bank with other banks.
3. To know the Housing Finance market share of different banks in the field.
4. To suggest remedial measures to increase the Housing Finance market share and
performance in serving the housing finance customers.
5. To know the level of satisfaction of customers with housing finance.

3.4 METHODOLOGY OF THE RESEARCH

SOURCES OF DATA:
There are two types of data collection methods which are being used in this research:

PRIMARY DATA

SECONDARY DATA

1. Collection of Primary Data:

Primary data is that type of data which includes the first hand information which is being
collected from the respondents through observation or through direct communication with
respondents in one form or another, form the survey or interviews to get my primary data.
The primary data for this research collected from;

Questionnaire prepared for the segments.

Direct interaction.

Observations.

Brushers etc.

2. Collection of Secondary Data:

Secondary data means data that are already available i.e., they refer to the data which have
already been collected and analyzed by some one else. When the researcher utilizes the
secondary data, then he has to look into various sources from where he can obtain them. In
this case he is certainly not confronted with the problems that are usually associated with the

collection of the original data. Secondary data may either be published data or unpublished
data.

While taking into consideration the secondary data the researcher must see that they possess
the following characteristics:

Reliability of data

Suitability of data

Adequacy of data

Here in this research, I collected the secondary data from the Books, journals,
Internet etc...
Internal Secondary Data:
Information collected from ABNs website and other Websites like,

www.banking/services.com

www.abnamro.com

www.international/banking.com

External Secondary Data:

Information about banking sectors and banking services and recent

rankings of banks is

collected from;

News papers - Economic Times, India Times, and The Hindu.

Magazines

Journals, etc.

- Business Today,

SAMPLE DESIGN:
To achieve the objective of the study Descriptive research is used.
Meaning of Descriptive Research:
Descriptive Research includes surveys and fact finding enquires of different kinds. The
major purpose of Descriptive Research

is description of the state of affairs as it exists at

present. The main characteristic of this method is that the researcher has no control over the
variables; he can only report what has happened or what is happening. In social science and

business research we quite often use the term expose factor research for Descriptive
Research studies.

Most Ex post facto research projects are used for Descriptive studies in which the researcher
seeks to measure such times as, example, performance of the people. Ex post facto studies
also include attempts by Researchers to discover causes even when they cannot control the
variables. The method of Research utilized in Descriptive Research is all kind of surveys,
including comparative and correlation methods.
a) Sampling technique: Non-probability convenient technique was used Samples
were taken from the departments.
b) Sample size: The sample size was taken to be100 in total.
c) Software used: MS- excel and MS- word has only been used for the purpose of
analyzing the data.

3.5 SCOPE OF THE STUDY

With the growth of knowledge of the characteristics of services, the ability to deal with them
grows both on economic and marketing perspective. Each characteristic poses problems and
requires strategies to deal with those problems. Therefore understanding of services and their
marketing implications is important for success in this industry.
1. The study was aimed at understanding awareness of the housing finance of different
banks in Bangalore city
2. The research was conducted in the geographical area of Bangalore city.
3. It was conducted for the period of 10 weeks i.e. from 20 th June to August 27th of 2005
with the sample size of 100 respondents.
4. The study provides an accurate picture about the strength and weaknesses of housing
finance, provided by ABN AMRO.
5. The study reveals the success and failures of different strategies adapted by the Bank
in market Housing Finance.

3.6 LIMITATIONS OF THE STUDY

The sample size for the study was 100 respondents which is small

So the results may not be conclusive.

Since the study involved random sampling there could be a non-sampling error in
selection of respondents.

Cost of carrying out a full study was a major limitation.

The lengthy questionnaire could have resulted in non-response errors.

Survey was conducted only in a small geographical area of Bangalore city.

Difficulty in reaching a large number of areas and high traveling was also a
hindrance to collect sufficient data.

Respondents bias may be present due to lot of open- ended questions in the
questionnaire.

CHAPTER- 4

ANALYSISAND
INTERPRETATION

STATUS OF RESPONDENTS:
TABLE 5.1A
AGE OF RESPONDENTS:
NO.OF

AGE

RESPONDENTS
21
47
32
100

20-30
30-40
ABOVE-30
TOTAL

PERCENTAGE (%)
21%
47%
32%
100%

The analyzed data is presented in the following figure 5.1A.1 for better appreciation
Source: Primary data
FIGURE 5.1A.1

AGE OF RESPODENTS

21%
32%

47%

20-30

30-40

ABOVE-30

Interpretation
From the above table it is found that, out of total respondents 47% are in age group of
30-40 .it is followed by age group above 40, with a total of 32%, while the age group 20-30
comprises a mere 21%.
Hence it is found that most of the respondents are in middle age group. So the Bank can
focus on middle aged group, and they can improve their Home Loan market share.

GENDER DISTRIBUTION AMOUNG THE RESPONDENTS

TABLE 5.1B
RESPONDENTS GENDER
NO.OF

GENDER

PERCENTAGE (%)

MALE

RESPONDENTS
85

FEMALE

15

15

TOTAL

100

100%

85

Source: Primary data

The analyzed data is presented in the following figure5.1B.1 for better appreciation
FIGURE 5.1B.1

Gender of Respondents

15%

85%

MALE

FEMALE

Interpretation
From the above table it is found that out of total respondents 85% are male and 15% are
female.
It is found that the majority of the respondents taken for the study are males. So the bank can
focus on males compared to females.

RESPONDENTS OCCUPATION
TABLE 5.1C
RESPONDENTS OCCUPATION

OCCUPATION

NO.OF

PERCENTAGE (%)

RESPONDENTS

SALARIED

23

23%

SELF EMPLOYED

9%

PROFFESSIONAL

30

30%

BUSINESS PERSON

35

35%

OTHERS

3%

TOTAL

100

100%

Source: Primary data

The analyzed data is presented in the following figure5.1C.1 for better appreciation
Figure 5.1C.1

Occupation of Respondents

3%

23%

35%

9%
30%

salaried

self employed

professional

bussinessperson

others

Interpretation
From the above table it is found that out of total respondents 35% are business persones,30%
are professionals, salaried are 23%,self employed 9% and others are
Only 3%.
It is found that majority of respondents are business persons, followed by professionals.
Because they have the potential to repay the amount whatever they have taken out their
income.

MONTHLY INCOME OF RESPONDENTS

TABLE 5.1D
MONTHLY INCOME
MONTHLY

NO.OF

INCOME
1000-10000
10000-20000
20000-30000
Above -30000
TOTAL

RESPONDENTS
15
24
35
26
100

PERCENTAGE(%)
15%
24%
35%
26%
100%

Source: Primary data

The analyzed data is presented in the following figure 5. 1D.1 for better appreciation.
Figure 5.1D.1

MONTHLY INCOME OF
RESPONDENTS

15%

26%

24%
35%

1000-10000

10000-20000

20000-30000

Above -30000

Interpretation
From the above table it is found that out of total respondents 35% are in the earning level of
20000-30000.26% re in the income level of above 30000.
Inference
Hence it is seen that most of the respondents of the survey had a good income level that is
middle income and higher income group. So bank needs to concentrate on these groups to
capture the market share.

RESPONDENTSCURRENT BANKERS
TABLE 5.2
CURRENT BANKERS
NO.OF

BANK

RESPONDENTS
37
28
17
07
11
100

ICICI
SBI
ABN AMRO
CITI BANK
OTHERS
TOTAL

PERCENTAGE (%)
37%
28%
17%
07%
11%
100%

Source: Primary data

The analyzed data is presented in the following figure5.2.1 for better appreciation

Figure 5.2.1

Respondent Current Bankers

11%
7%

37%

17%
28%

ICICI

SBI

ABN AMRO

CITI BANK

OTHERS

Interpretation
From the above table it is found that out of the total respondents 37%are in ICICI, Followed
by SBI 28%, ABNAMRO 17%, Other Banks 11% and CITI BANK 07%.
Inference
Hence it can be inferred that majority of respondents had accounts in Indian origin banks
like ICICI and SBI which was in existence for a long period, rather than foreign banks. So
ABN AMRO has to improve the services to catch the market share.

SATISFACTION LEVEL OF RESPONDENTS WITH BANKS

TABLE 5.3
BANK SERVICES

PERCEPTION
OK
SATISFACTORY
VERYGOOD
EXECELENT
TOTAL

NO.OF
RESPONDENTS
30
42
22
06
100

PERCENTAGE (%)
30
42
22
06
100%

Source: Primary data

The analyzed data is presented in the following figure5.3.1 for better appreciation
Figure 5.3.1

RESPONDENTS SATISFACTION LEVELS

6%
30%

22%

42%

OK

SATISFACTORY

VERYGOOD

EXECELENT

Interpretation
From the above table it is found that out of the total respondents 42% are satisfy with their
bank.30% are normal opinion about the banks,22% are very good opinion about there banks,
and 06% are excellent opinion about their bank.
Inference
Hence it is seen that most of the respondents are satisfied with their banks and they are
average in opinion on their banks. So ABN AMRO Bank has to enhance their services to
attract more customers and get established.

NATURE OF RETURN ON INVESTMENT

TABLE 5.4
RETURN ON INVESTMENT
NO.OF

NATURE
VERY COPETETIVE
AS PER THE MARKET
VERY HIGH
TOTAL

RESPONDENTS
37
52
11
100

PERCENTAGE (%
37%
52%
11%
100%

Source: Primary data

The analyzed data is presented in the following figure5.4.1 for better appreciation.
Figure 5.4.1
RETURN ON INVESTMENT

11%
37%

52%

VERY COPETETIVE

AS PER THE MARKET

VERY HIGH

Interpretation
From the above table it is found that out of the total respondents 52% of customers are
holding in their hand ,they giving return on investment as per the market.37% of the
customers are very competitive nature banks and 11% are very high return on investment
banks.
Inference
Hence here ABN AMRO is giving the return on investment as per the market, so customer
preference is assured. Thus customers preference will increase bank services.

RESPONDENTS RESIDENCE TYPE

TABLE 5.5
RESPONDENTS RESIDENCE TYPE
NO.OF

RESIDENCE TYPE

PERCENTAGE (%)

RENTED

RESPONDENTS
43

SELF OWNED

24

24%

COM:PROVIDED

21

21%

PARENT OWNED

12

12%

TOTAL

100

100%

43%

Source: Primary data

The analyzed data is presented in the following figure5.5.1 for better appreciation.
Figure 5.5.1

RESPONDENTS RESIDENTS TYPE

12%
43%

21%

24%

RENTED

SELF OWNED

COM:PROVIDED

PARENT OWNED

Interpretation
From the above table it is found that out of the total respondents, 43% of having rented
house. Followed by 24% of self owned, 21% of COM: provided and 12% of them having
parents house.
Inference
Hence it is found that majority of the respondents are having rented residence comparing to
self owned residence holders. Thus bank can assure their customers to own their residence
through financial assistance.

RESPONDENTS AVAILED HOME LOAN

TABLE 5.6
AVAILD HOME LOAN RESPONDENTS

AVAILDHOME LOAN

NO.OF

PERCENTAGE (%)

YES

RESPONDENTS
40

NO

60

60%

TOTAL

100

100%

40%

Source: Primary data

The analyzed data is presented in the following figure5.6.1 for better appreciation.
Figure 5.6.1
AVALID HOME LOAN RESPONDENTS

40%

60%

YES

NO

Interpretation
From the above table it is found that out of the total respondents only 40% of respondents
are already having home loans, followed by 60% of respondents are not having home loans.
Inference
It can be analyzed that 60% of respondents have not accessed home loans, so the market for
home loan is very idle, ABN AMRO can improve their service and can attracts the
customers.

RESPONDENTS INTREST IN HOMELOAN

TABLE 5.7
RESPONDENTS INTEREST

INTEREST

NO.OF

PERCENTAGE (%)

YES

RESPONDENTS
72

NO

28

28%

TOTAL

100

100%

72%

Source: Primary data

The analyzed data is presented in the following figure5.7.1 for better appreciation.

Figure 5.7.1
RESPONDENTS INTEREST

28%

72%

YES

NO

Interpretation
From the above table it is found that out of the total respondents 72% are interested in taking
home loan, comparing with not interesting respondents 28%.
Inference
More than 70% of respondents are interested in taking home loan, so this opportunity can be
utilized by the ABN AMRO BANK. Here bank has to provide the bet services to the new
customers.

PURPOSE OF HOAM LOAN

TABLE 5.8
PURPOSE OF RESPONDENTS
NO.OF

PURPOSE

PERCENTAGE (%)

BUY

RESPONDENTS
20

CONSTRACT

23

31%

RECONSTRACT

17

24%

MODIFICATION

12

17%

TOTAL

72

100%

28%

Source: Primary data

The analyzed data is presented in the following figure5.8.1 for better appreciation.
Figure 5.8.1
PURPOSE OF RESPONDENTS

17%

28%

24%
31%

BUY

CONSTRACT

RECONSTRACT

MODIFICATION

Interpretation
From the above table it is found that out of the total respondents 31% of the respondents are
like to construct the house. Followed by 28% is like to buy houses, 24% like to reconstruct
the house and 17% are like to modify their houses.
Inference
It can be analyzed that half of the respondents are likely to buy and construct their own
houses.Re construct and modification are very less in percentage when compared to the
former ones.

COLLACTERAL SECURITIES OF HOME LOANS

TABLE 5.9
COLLACTERAL SECURITY

SECURITIES

NO.OF RESPONDENTS

PERCENTAGE (%)

EMPLOYMENT PROOF

16

23%

BANK STATEMENT

25

35%

TAX PAID RECEIPT

09

12%

SALES AGREEMENT

22

30%

TOTAL

72

100%

Source: Primary data

The analyzed data is presented in the following figure5.9.1 for better appreciation.
Figure 5.9.1

RESPONDENTS COLLEACTERAL SECURITY

30%

12%

23%

35%

EMPLOYMENT PROOF

BANK STATEMENT

TAX PAID RECEIPT

SALES AGREEMENT

Interpretation
From the above table it is found that out of the total respondents 35%are ready to give bank
statement as a security. Followed by 30% are ready for sales agreement,23%are ready or
employment proof and giving tax paid receipt respondents are only 12%.
Inference
It can be analyzed that most of the respondents are ready to give as a security, Bank
statement or sales agreement. This both documents are also acceptable in ABN AMRO
Bank.

THE EMI PREFERENCE OF RESPONDENTS

TABLE 5.10
RESPONDENTS EMI PREFERENCE
NO.OF

EMI PREFERENCE

PERCENTAGE (%)

5000-10000

RESPONDENTS
25

10000-15000

32

44%

ABOVE-15000

15

21%

TOTAL

72

100%

35%

Source: Primary data

The analyzed data is presented in the following figure5.10.1 for better appreciation.

Figure 5.10.1

RESPONDENTS EMI PREFERENCE

21%
35%

44%

5000-10000

10000-15000

ABOVE-15000

Interpretation
From the above table it is found that out of the total respondents 44% are prefer EMI
between 10000-15000,35% are prefer EMI between 5000-10000 and 21% are prefer above
15000.
Inference
It can be inferred that the psychological set up coerces to prefer middle class emoluments
over higher ones.

RESPONDENTS PAYMENT MODE TO TAKE HOME LOANS

TABLE 5.11
PAYMENT MODE PREFERENCE
MODE OF

NO.OF

PAYMENT
CASH

RESPONDENTS
20

CHEQUE
DEBIT

30

42%

08

11%

14

19%

72

100%

INSTRUCTION
OTHER MODES
TOTAL

PERCENTAGE (%)
28%

Source: Primary data

The analyzed data is presented in the following figure5.11.1 for better appreciation
Figure 5.11.1
RESPONDENTS PAYMENT MODE PREFRENCE

19%

28%

11%

42%

CASH

CHEQUE

DEBIT INSTRUCTION

OTHER SOURCE

Interpretation
From the above table it is found that out of the total respondents 42% are interested to
cheque payment ,28% are interested to cash payment,19% are other source of payment and
11% are interested in debit instruction.
Inference
It is found that out of the 72 respondents majority of them preferred cheque mode over
liquid cash.

EFFECTIVENESS OF COMMUNICATION MEDIA TOWARDS RESPONDENTS

TABLE 5.12
EFFECTIVENESS OF COMMUNICATION MEDIA
NO.OF

MEDIA

PERCENTAGE (%)

ADVERTISEMENT

RESPONDENTS
30

DSA

38

36%

BANK EMPLOYEE

21

20%

OTHER SOURCE

11

21%

TOTAL

100

100%

23%

Source: Primary data

The analyzed data is presented in the following figure5.12.1 for better appreciation
Figure 5.12.1

EFFECTIVENESS OF
COMMUNICATION MEDIAS
11%

30%

21%

38%

ADVERTISEMENT

DSA

BANK EMPLOYEES

OTHER SOURCE

Interpretation
From the above table it is found that out of the total respondents it was found that most of
the respondents 38% came to know about the bank from DSA (Direct Selling
Agent).followed by 30% of advertisement, 21% of bank employees and 11% of other
source.
Inference
It can be analyzed that among these Medias DSA is most effective, but in the competitive
world, most effective media is advertisement, so the bank has to concentrate more on the
advertisement media.

RESPONDENTS REACTION ABOUT ABNAMRO BANK SERVICES

TABLE 5.13
RESPONDENTS SATISFACTION LEVEL

PERCEPTION

NO.OF

PERCENTAGE (%)

OK

RESPONDENTS
06

SATISFIED

07

42.10%

VERY GOOD

03

18.42%

EXCELLENT

01

05.27%

TOTAL

17

100%

34.21%

Source: Primary data

The analyzed data is presented in the following figure5.13.1 for better appreciation
Figure 5.13.1

RESPONDENTS SATISFACTION LEVEL

5%
18%

34%

43%

OK

SATISFIED

VERY GOOD

EXCELLENT

Interpretation
From the above table it is found that out of the 17 respondents 42% are satisfied with the
bank .Followed by 34% are in normal opinion about the bank,19% are very good perception
and 05%are excellent perception about the bank.
Inference
Hence it is seen that most of the respondents, more than 75% are satisfied and normally opt
for ABN AMRO Bank. So these customers are very worth full to the bank.

CHAPTER- 5

RESEARCHFINDINGS

SUMMARY OF FINDINGS

1. Majority of the respondents are males, 85%, and 15% are female. And most of them
belong to the age group of 20-40 years.
2. Majority of the respondents are male businessman and professionals. In the case of
females majority were employed.
3. Most of the respondents belonged to the income group of below 20000/- per month
and 20000-30000 per month.
4. The prominent motivational factor about ABN AMRO Account holder was free
access of ATMs, net banking, credit line, loan and investments. The next prominent
factor was the personal banker for each customer.
5. ABN AMRO is the most well known bank in the world. But in India the bank is not
very well known to the respondent. This was due to less investment in advertising
and sales promotion by the Bank.
6. Among the Medias chosen by the Bank for communicating the respondents about the
services, DSA (Direct Selling Agents) were the most successful. The next most
successful media were the advertisement; (television, press and radio) it caught the
attention of people in the all age group and income group.
7. Most of the respondent, more than 70% do not own a house, only 24% of
respondents own a house. In this situation bank can provide home finance.
8. Regarding the study to find out the decision maker in families; most of the
respondents relied on husband or father to make decisions.
9. All the respondents having ABN AMRO Bank account are satisfied with their
services offered by the bank.

10. The promotional activities done by ABN AMRO are not in par with other banks like
ICICI, HDFC and CITI bank. The promotional strategy adopted by ICICI is mostly
paper advertisements or hoarding in the major parts of the city. Where as ABN
AMRO does not practice this sort of promotional activities. This is a major
drawback.

CHAPTER- 6

SUGGESTIONSAND
CONCLUSIONS

SUGGESTIONS
After the research and findings, the following suggestions are;
1. ABN AMRO bank can also provide services to members in a company by
approaching and convincing

CEOs

Managing Directors

Heads in IT companies

To deal with the bank and assuring some extra convenience or extra facility in providing the
HOME FINANCE can provided if that company will have tie up with the bank.
It is not necessary to establish many branches in the city because it is already providing the
service of Free cash delivery and Free doorstep service. But the existing branch and the
services provided by this bank should be made known to the people by
Employing 2-3 skilled personnel and train them about the bank and banking services and
with special interest towards the HOME LOAN. These should daily approach to some
Manufacturing Industries or IT Industries or Financial Institutions and make aware of the
bank and the services provided by this bank.
They should make separate pamphlets explaining about the bank and the services in respect
to the HOME LOAN and issue these among the big companies and institutions with
mentioning their mode of payment etc.,
2. Bank can help the Home Loan customers to paying the EMI (Equally Monthly
Installments) through credit cards and from fixed income deduction.

3. ABN AMRO can overcome its drawbacks (customer complaints) if they follow the
following;
a)

Customer care is to be taken by the bank when they open their accounts with this bank.

Assurance is not only given while opening an account but bank should fulfill its promises
after issuing account also, Bank can provide easy documentation to the existing customers

b)

Personal touch is important. Employees and employers in the bank should not only see

the things from their professional point of view but also from the customer point of view.
Bank has to inform all other details regarding the Home Loan.
c)

ABN AMRO Bank Should provides the best services since it plays an important role in

attracting the customers, by bringing new services to the existing customer with the
minimum deposit balance every month and easy sanctioning.
4. To create the awareness of ABN AMRO bank (majority of the respondents who are
not aware and among others) the bank may follow the following steps;
As it is a newly emerging bank in the city, it is to be advertised throughout the city through
the following communication medias

News papers

Hoardings

Television

Magazines

Internet

Radio city etc.,

BENEFITS TO THE BANK

From the survey conducted the bank would have the following benefits;
1) Bank can capture the competitors (ICICI, HDFC, SBI, and IDBI) market by coming
out with better services and offers.
2) Many respondents are interested in HOME LOAN and Investment services; bank can
sell these products and services to the interested customers, by understanding their
needs and wants.
3) By creating awareness the bank can convert non-customers into customers. Since
most customers are reached through telemarketing and personnel selling, these two
alone cannot help in promoting the sales of HOME LOAN, therefore alternative
medias should be used.
4) More than 80% of people are satisfied with the services provided by bank, so the
bank can create awareness about this to the non-customers, and therefore expand its
operations.
5) 60% of the respondents are account holders in other banks. ABN AMRO bank can
convince these respondents into switching over to ABN AMRO as it provides all
services demanded by the customer
6) Bank can overcome its drawbacks by studying customer minds and complaints.

CONCLUSION
As we know entire country depends on Banking sector. Therefore bank should be
sympathetic so that customer complaints will not grow. The ABN AMRO bank has very
good services when compared to other banks and people also expect these services. The only
thing the customer complains is that the bank should see the things from customer point of
view And the interest charges should be reduced, and lengthen the periodic payment as
there is tough competition with other banks providing HOME LOANS so ABN AMRO
bank also should make this type of facility to the customers.
ABN AMRO is a well oiled banking machine that has grown profits, built quality assets,
entered new business areas, invested in Technology and kept an eagle eye on all important
cost to revenues ratio.
Even the country Rep, Ramesh Sobti noted that the strength of this bank is the talent of its
people who have worked together and put in brilliant performances to pass through many
significant milestones. when someone in ABN AMRO says big it means, big in terms of
a meaningful market share in a business that makes the meaningful contribution to the
sustainable profitability of the bankand now ABN AMRO should strive to create extra
stickiness in their customer relationships.

BIBLIOGRAPHY

BOOKS:
1. Marketing Management

- Philip Kotler.

2. Marketing Research

- Hawkins and Toll.

3. Business Studies

- S.A. Siddiqui.

4. Service Marketing
5. Journals, magazines etc.,

WEB SOURCE:
www.abnamro.com
www.abnamro.co.in

www.banking/services.com
www.international/banking.com
www.google.com
www.yahoo.com
www.search.com

-Ravi Shanker.

ANNEXURES

Financial statements 2004

Consolidated balance sheet at December 2004

(in millions of euros)

2004

2003

17,794

12,734

Assets
Cash

Short-dated government paper

Banks

2,5

Loans to public sector

Loans to private sector
Professional securities transactions
Loans

Interest-earning securities
Shares

Participating interests

Property and equipment

Other assets

Prepayments and accrued income

16,578

9,240

83,710

58,800

5,967

5,489

233,815

234,776

59,269

56,578

299,051

296,843

133,869

132,041

25,852

16,245

2,309

2,629

6,798

7,204

15,338

16,548

7,324

8,153

608,623

560,437

132,732

110,887

Liabilities
Banks

10

Savings accounts
Deposits and other client accounts
Professional securities transactions
Total client accounts

11

74,256

73,238

178,640

168,111

40,661

48,517

293,557

289,866

Debt securities

12

82,926

71,688

Other liabilities

43,040

33,207

9,776

11,840

Accruals and deferred income

Provisions

13

Fund for general banking risks

Subordinated debt

15

Shareholders equity
Minority interests

14

16

13,553

11,146

575,584

528,634

1,149

1,143

12,639

13,900

14,972

13,047

4,279

3,713

Group equity

19,251

16,760

Group capital

33,039

31,803

608,623

560,437

17

Contingent liabilities

23

Committed facilities
Numbers stated against items refer to the notes

46,464

42,838

145,092

119,675

Financial statements 2004

Consolidated income statement for 2004

(in millions of euros)

2004

2003

2002

Interest revenue

23,196

23,529

27,370

Interest expense

13,530

13,806

17,525

9,666

9,723

9,845

Revenue

Net interest revenue

26

Revenue from securities and participating

interests

27

Commission revenue
Commission expense

1,620

269

369

5,452

5,160

5,421

702

696

782

4,750

4,464

4,639

2,288

1,993

1,477

1,469

2,344

1,950

Total non-interest revenue

10,127

9,070

8,435

Total revenue

19,793

18,793

18,280

7,764

7,080

7,407

4,962

4,575

4,647

12,726

11,655

12,054

Net commissions

28

Results from financial transactions

Other revenue

29

30

Expenses
Staff costs

31

Other administrative expenses

32

Administrative expenses
Depreciation

961

930

1,094

13,687

12,585

13,148

653

1,274

1,695

16

49

14,342

13,875

14,892

Operating profit before taxes

5,451

4,918

3,388

Taxes

1,071

1,503

973

4,380

3,415

2,415

33

Operating expenses
Provision for loan losses

34

Value adjustments to financial fixed assets

Total expenses
37

Group profit after taxes

Minority interests

38

Net profit
Earnings per ordinary share

40

Fully diluted earnings per ordinary share

Dividend per ordinary share
Numbers stated against items refer to the notes

40

36

271

254

208

4,109

3,161

2,207

2.45

1.94

1.39

2.45

1.93

1.38

1.00

0.95

0.90

Financial statements 2004

Consolidated cash flow statement in 2004

(in millions of euros)
2002
Group profit
2,415
Depreciation
1,006
Provision for loan losses
1,695
Movement in provisions
(723)
Movement in interest receivable
2,277
Movement in interest payable
(1,387)
Movement in current tax
331
Other accruals and deferrals
91
Government paper and securities, trading
(2,311)
Other securities
3,865
Banks, other than demand deposits
1,238
Loans
1,888

2004
2003
4,380
3,415
961
930
653
1,274
953
287
513
(1,236)
(1,065)
2,092
401
226
350
908
(20,876)
(6,546)
(2,149)
(1,500)
355
839
(19,724)
(4,638)

Professional securities transactions

(included in loans)

5,890

Total client accounts

(3,498)
(4,158)
19,735
14,741

(3,451)

Professional securities transactions

(included in total client accounts)

4,658

(5,644)
6,661

Debt securities, excluding debentures

and notes

(2,744)
(4,616)

1,324

Other assets and liabilities

7,996
(10,673)

(14)

CMR INSTITUTE OF TECHNOLOGY,

1 BANGALORE

-1-

Net cash flow from operations /

banking activities

(19,403)
(1,994)

18,792

Purchase of securities for investment portfolios

(73,810)
(151,771)

(144,584)

Sale and redemption of securities from

investment portfolios

75,224
148,015

122,697

Net inflow / (outflow)

1,414
(3,756)

(21,887)

Investments in participating interests

(322)
(1,010)

(479)

Sale of investments in participating interests

2,680
364

280

Net inflow / (outflow)

2,358
(646)

(199)

Capital expenditure on property and equipment

(1,046)
(1,563)

(1,292)

Sale of property and equipment

186
491

497

Net (outflow)

(860)
(1,072)

(795)

Net cash flow from investment activities

2,912
(5,474)

(22,881)

Movement in group equity

2,049
1,281

106

Repayment of preference shares

(1,911)
(1,258)

Issue of subordinated debt

50
1,025

114

Repayment of subordinated debt

(797)
(164)

(964)

Issue of debentures and notes

25,525
19,426

8,815

Repayment of debentures and notes

(8,462)
(10,236)

(7,349)

Cash dividends paid

(964)
(915)

(999)

Net cash flow from financing activities

15,490
9,159

(277)

Cash flow

(1,001)
1,691

(4,366)
For details refer to note 43

CMR INSTITUTE OF TECHNOLOGY,

2 BANGALORE

-2-

Changes in shareholders equity in 2004

(in millions of euros)

2004

2003

2002

Ordinary shares
Opening balance

919

890

862

Exercised options and warrants

Conversion of convertible preference shares

Stock dividends

33

28

25

Closing balance

954

919

890

813

814

815

(Convertible) Preference shares

Opening balance
Conversion

(1)

(1)

Redemption and issuance

(46)

Closing balance

767

813

814

2,549

2,543

2,504

48

63

Share premium account

Opening balance
Exercised options and conversion
Conversion of (convertible) preference shares
Release from general reserve due to
staff options

32

Stock dividends

(33)

(28)

(25)

Closing balance

2,565

2,549

2,543

11,166

8,933

8,161

4,109

3,161

2,207

General reserve and reserves prescribed

by law
Opening balance
Net profit
Preferred dividends
dividends paid

(43)

(45)

(46) Cash

(694)

(655)

(599) Goodwill

30

(425)

(201)

(430)

and dilution of minority participating

interest
Impact of change in accounting policy for
pension costs
Addition to share premium account due to
staff options

(1)

(32)

(479)

14

(374)

186

Addition to / release from provision for

pension obligations
Realised revaluations from revaluation reserve
Other
Closing balance

(212)

215

29

13,876

11,166

8,933

283

124

355

Revaluation reserves
Opening balance
Realised revaluations to general reserve

(186)

Revaluations

(79)

159

(45)

Closing balance

204

283

124

(2,564)

(2,098)

(476)

Exchange differences reserve

Opening balance
Currency translation differences

(198)

(466)

(1,622)

(2,762)

(2,564)

(2,098)

Opening balance

(119)

(125)

(123)

Increase (decrease)

(513)

(2)

Closing balance
Treasury stock

Closing balance
Total shareholders equity

(632)

(119)

(125)

14,972

13,047

11,081

CMR INSTITUTE OF TECHNOLOGY,

3 BANGALORE

-3-

Commercial
2004

Public authority guarantees

Mortgages
Securities
Bank guarantees
Other types of collateral and unsecured
Total commercial loans

2003
8,103

11,382

23,994

28,074

791

1,006

3,305

3,113

91,188

87,408

127,381

130,983

Retail
Public authority guarantees
Mortgages
Other types of collateral and unsecured
Total retail loans

151

50

82,700

80,794

26,494

26,862

109,345

107,706

Commercial loans by industry

004

2003

Agriculture, mining and energy

11,700

11,202

Manufacturing

23,925

27,980

Construction and real estate

22,539

19,025

Wholesale and retail trade

16,443

18,329

Transportation and communications

12,387

12,966

Financial services

19,967

21,188

Business services

10,310

10,565

Education, health care and other services

10,110

9,728

127,381

130,983

Total commercial loans

Financial statements 2004

CMR INSTITUTE OF TECHNOLOGY,

4 BANGALORE

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QUESTIONNAIRE
Client Name:

Phone No:

Address:

1. Age Group:
2. Gender:

20 30
Male

30-40

Above40

Female

3. Occupation
Salaried

Self employed

Professional

Business persons

Others
4. Monthly income:
1000-10000

10000-20000

20000-30000

Above 30000

ABN AMRO

CITI BANK

Others

5. Your current bankers;

ICICI

SBI

6. How was pre approval and post sanction services of your current bank?
Ok

Satisfactory

very good

Excellent

7. How was Return on investment in your bank is?

Very competitive

as per the market

Very high

8. Your residence type is?

Rented

Self owned

COM: Provided

Parent owned

9. Have you Availed Home loan?

Yes

No

CMR INSTITUTE OF TECHNOLOGY,

5 BANGALORE

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If yes:
Bank name:
Amount:
Tenure:
ROI:
Processing fee:
Reason for this bank:
10. Are you interested in taking ABN AMRO Home Loan (smart mail)?
Yes

No

If Yes: (Else go to 15)

11. Your purpose would be?
To buy

To Construct

Re constructs

Modification

12. What would you provide to bank as collateral security?

Employee proof

Bank statement

Tax paid receipt

Sales agreement.

13. The amount you prefer to pay as EMI for taking a new HOME LOAN?
5000-10000

10000-15000

Above 15000

14. Which mode of payment is your choice?

By Cheque

By cash

By debit instructions

Other modes

15. How did you know about the ABN AMRO Home Loan (smart mail)?
Advertisement

DSA

Bank employee

Other source

16. Are you satisfied with ABN AMRO Home Loan services?
Ok

Satisfactory

Very good

Excellent

Suggestion to improve ABN AMRO Home Loan services

.
Thank you.
CMR INSTITUTE OF TECHNOLOGY,
6 BANGALORE

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CMR INSTITUTE OF TECHNOLOGY,

7 BANGALORE

-7-