Project Keca

Comparative study of home loan between BOI and ICICI bank
1.1 INTRODUCTION
Banks are an organization which normally performs certain financial transaction. It
performs the accepting deposits from public and make advance to need of society. When
banks accepts deposits its liabilities increases and it becomes debtors, but when it makes
advance its assets increase and it becomes creditors.
“HOME LOAN” is a fund or the loan which the buyer taken from any financial
institution or bank to purchase a new home at an agreed rate of interest specified during
the contract.
Housing finance is a relatively new concept in India comparing to other financial services
that are widely available in the country since a long year back. However, the speedy
development in housing and various housing activities have understandably led to the
growth of Indian housing finance market. As a result, a number of players have barged
into the market. It was in the year 1970 when Housing and Urban Development
Corporation (HUDCO) was established to finance various housing and urban
infrastructure activities. However, the Housing Development Finance Corporation
(HDFC) was the India's first private sector housing finance company came into existence
in 1977. Since then, the housing finance in India has been flying high. It's expected to
grow at a growth rate of 36% in the coming years.
Housing sector
Housing Sector refers the entire construction activity, it has maximum propensity to
generate income and demand for materials, equipments and services. In fact,
housing provides necessary impetus to the economy as a whole. Small initiatives in
housing will propel multiplier effects in the economy through a chain of linkage
effects. For every one crore rupees of investment in housing, nearly 290 industries in
the building material sector get activated besides the core manufacturing sector
constituting cement, steel and bricks etc. It has been estimated that out of every Rs.
100 spent on housing Rs. 11.40 is returned back to the national exchequer by way of
stamp duty, registration and taxes. Housing Sector has seen exceptional changes in
the last 15 years, both globally and nationally. In the last few years, the housing
sector in India has witnessed a spurt in demand not just for residential property but
Department of Business Management 1

also for commercial property. This rise in demand may be attributed to the large and
growing middle class population of 300 million people. The Technology and business
Process Outsourcing have correspondent to growing demand for shopping malls,
multiplexes, food outlets, office spaces ad business centers etc.
The housing shortage is increasing day by day as a proportion to the

massive increase in population. Today, there are more than 350
housing finance companies registered with the registrar of companies
of these 29 have been approved by National Housing Bank for financial
assistance. The housing finance industry has been borrowing at the
rate of nearly 35% for the last two years. Over the last 3 years
Commercial banks and Private sector banks have been playing an
important role in housing finance. All Commercial banks and Private
sector banks are now emerging as lenders in the segment, taking a
slew initiatives in the form of opening dedicated outfits/cells to cater to
the ever-increasing demand for housing loans ,offering competitive
interest rates with fixed/ variable options, Waiver of processing fee,
Free additional attractive packages and flexibilities in housing loan
Schemes. Generally the traditional trend of the term “Housing Loans”
or “Housing Finance” means finance for buying or modifying a property.
Hence “Housing Finance” may be defined as the financial resources for
an individual or a group of persons used facially for the purpose of
housing.
The Working Group on Rural Housing for the Twelfth Five Year Plan
(2012-17), has estimated the total housing shortage in rural areas at
43.67 million units. It is also of major concern that 90 per cent of the
rural housing shortage (approximately, 39.30 million units) are in
respect of Below the Poverty Line (BPL) categories. The vulnerabilities
to the rural housing sector are often thought to be limited to the
delivery system for housing materials, services and finance. The sector,
however, is deeply affected by infrastructure deficit –roads, electricity
supply, drinking water and sanitation. Housing finance which plays a

key role in the urban housing revolution is rather conspicuous by its

absence in the rural setting. To aggravate the situation further, there is
a real paucity of common or non-agricultural land for meeting the
housing needs of the poor; whatever little is available is pre-empted by
the demands from other sectors. The lack of vibrancy in the market for
village properties and the marked volatility in agricultural incomes
combine to dampen the prospects of this sector.
“Housing finance brings together complex and multi-sector issues that are driven by
constantly changing local features, such as a country’s legal environment or culture,
economic makeup, regulatory environment, or political system”. The demand for housing
has increased day by day. Housing finance plays an important role as an engine of
equitable economic growth though the reduction of poverty and prevents slum
proliferation in economy. To meet the growing housing demand the government needs to
provide the finance for housing to the people. The housing finance sector in India has
experiences unprecedented change in its structure since its formulation stage of being a
solely a government undertaking to a very competitive sector with a large number of
financing entities all over India. Growth of home loans is due to increase of living
standards of people, shifting from joint family to nuclear family. There are
Umpteen numbers of bank in the country which have come up with attractive home loan
plans. In view of the acute housing shortage in the country, and the social-economic role
of commercial banks in the present times, the RBI advised the abnk to encourage the flow
of credit for housing finance. It will enhance the end cost people to plan their house over
longer duration. Now it has been made easy for a person to buy that dream house which
he dreamt of long ago. Keeping in mind the difference in the necessity of every
individual, banks and housing finance companies offer different type of home loan for a
wide gamut of housing activities.
Housing is one of the most important that we human beings need. Adequate housing is
essential for human survival with dignity. There are many things that we would find
difficult, if not impossible to do without good-quality housing. Housing shortage is an
universal phenomenon. It is more acute in developing countries. The housing scenario has
become more critical in India in recent years. India has initiated so many housing reform

that has taken many forms and manifestations characterized by the reduction in social
allocation, cutbacks in public funding and promotion of a real estate culture in close
partnership between the state and private actors. Mortgage financing markets can play an
important role in stimulating affordable housing markets and improving housing quality
in many countries. Unfortunately, these are still in infancy in India. This lack of
development often translates into lower homeownership rates or poor housing quality.
Most of these problems stem from the central dilemma that the resources are always too
limited and housing development heavily depend on the financial institutions such as
banks, credit corporations and development banks for the supply of finance to meet their
daily financial needs.
Purchasing the home of your dreams is not an easy task. Especially when you plan to buy
a home on loan. House loans means that you buy a house on installments. In simpler
terms when you want to own a home and cannot afford to pay the amount in lump sum,
you can pay it in monthly installments with an interest rate. There are number of
companies offer cheap loans at a low interest rate you can avail loan against existing
house for renovation or expansion etc. The demand for home loans will not sag much.
The reason is a substantial rise in the income-generating capability of Indian youth. So
this particular section will keep the housing loan demand high and 0increased lending
rates can only shelve their plans for some time.
function
The most common purpose of a home loan is to provide the funds a buyer needs to
Purchase a home. Home equity loans allow a homeowner to borrow against the difference
between the home’s value and the current loan balance, or equity. Investor
Loans permit buyers to purchase homes as rental properties or to fix up and sell at a
Profit.
1.2 NEED OF THE STUDY
The bank offers the wide range of loans to meet the customer requirements. One of the
major desires of the customer is to have his own house. This is apart from health and
education requirement. This desire can be fulfilled by the bank, with their various types of

schemes as there is number bank are competing in the market to offer the loans, it is
necessary to know the customer expectation towards aspiring home.
Hence the study is conducted to compare the home loans process and types
between bank of India and ICICI bank with reference to armoor location.
1.3 OBJECTIVES
 To know the procedure of home loan of BANK OF INDIA and ICICI BANK.
 To identify the different types of a home loans offered by BOI and ICICI BANK.
 To find out the interest rates charged from the last 3 years on home loan.
 To find out group of people provided home loan by BOI and ICICI bank
 To study the comparative analysis of home loan of BOI & ICICI bank.
1.4 SCOPE OF THE STUDY
The scope of the study is restricted to armoor division of the Banks, Bank of India and
ICICI Bank. These Banks going to extends the facilities of housing finance to its clients
belonging to armor, Talangana.
1.5 RESEARCH METHOLOGY
Primary data:-There is no primary data used in this project.
Secondary data: - Secondary data has been collected from the available in the report of
BANK OF INDIA and ICICI BANK and websites, books, articles published in
magazines, journals, and newspaper.

1.6 TOOLS AND TECHNIQUES
In this study frequency percentage, t-test, pie chart, line chart and bar charts were used
for the purpose of data analysis.
1.7 LIMITATIONS
 The data is restricted to only for 2 banks BOI and ICICI.
 Data is limited to 3 years.
 The is limited to armoor location.
 The information is concerned about home loans, does not consider any other loans.

1.Dr. Shiv Kumar Garg and Dr. Gajendra Kumar
The Researcher studied on “A comparative study of public and private sector bank”. The
main objectives of this study is To study the importance of housing finance in India, and
to apprise the marketing strategies practicing by the housing financial institutions and to
compare marketing strategic of public and private sector banks in housing finance. In this
study date collected through questionnaires and books, available information from bank
report, newspaper, etc. Researcher used comparative study and bar charts. This study
found that present rate of interest on housing finance is less compared to earlier rate; this
it is higher when compared interest charged by other countries in fact interest charged by
other countries varied from 4.5% to 5%. The rate of interest charged by the public banks
was comparatively higher than the private banks in India. The cost and processing fee in
housing finance is higher compared to their market risk. The public sector bank charging
processing fee 1% to 2% on amount loan borrowed. The private banks are not only
charging processing fee at higher rate but, they also charging cost, which is almost equal
to percentage of the interest of one year. Finally states that both private and public sector
banks are not verifying the status of borrowers at the time of sanctioning loan.
2. Yoko Moriizumi in 1999

Research study on “The current wealth of the housing purchase and private housing loan
demand in Japan”. Japanese households accumulate wealth for down payment aggregate.
That means current wealth plays on important role in home acquisitions as public loans
whose direct mortgage lending is a strong support for one purchaser’s. The researcher
estimate the wealth effect on private mortgage debt as well as housing consumption by
applying model where mortgage debt demand and it is determined by jointly with housing
consumption. The research used a simultaneous equation tacit estimation method. Wealth

effects on private mortgage debt, likelihood of borrowing, and housing consumption are
not elastic. On the other hand, a change in housing consumption affects the likelihood of
borrowing elastically much more than the private mortgage amount of borrowers.
Research found that housing and private mortgage markets fluctuate very closely with the
number of participants in the mortgage market. Finally research concluded that the
number of housing starts is linked strongly to the private mortgage market.
3. Tullio Jappelli and Maria Con cetta Chiuri march 2001

Research study about “The Financial Market Imperfections and Home Ownership: A
Comparative study”. Researcher explore that the determinants of the international pattern
of home ownership using the Luxembourg income study (LIS), and a collection of micro-
economic data on fourteen OECD countries. Researcher states that in most, the cross-
section is repeated over tie and includes several demographic variables carefully matched
between the different surveys. This study to construct a truly unique international data set,
and merging data on aggregate panel data on mortgage loans and down payment ratios.
After controlling demographic characteristics, counting effects. Cohort effect and
calendar time effects. Researcher found that strong evidence that the availability of
mortgage finance as measured by outstanding mortgage loans and dawn payment ratio-
affect the age-profit of home ownership, especially at young end. Finally research says
that the result have important implication for the debate on the relationship between
saving and growth.
4. Faik koray and Eric T.Hillebrand 2003

Research had studied about “The Interest Rate volatility and Home Mortgage Loans”.The
Research studied that the U.S Economy has experienced, significant fluctuation in real
and nominal interest rates since the 1970s.The study investigated empirically the
relationship between home mortgage loan and volatility in mortgage rates for period
1971-2002 through 2003. The Research found a positive relationship between mortgage.
Finally research states that due to volatility in the bond marker. In the case of high interest
volatility, household disinvestment in government securities and invest in real assets..
5. Alok Thankur HPIMS, SHIMA 2006.

Research studied on “Comparative study of home loans of SBI and ICICI in Shimla”. The
main objective of this study is the cost of home provided by banks and to identify that the
which bank provide better home loan schemes and to find the customer perception about
the home loan of ICICI and SBI banks. In this study research used primary data and
secondary data. Primary data collected through questionnaire. Secondary data was
collected from books, magazines, jonnals. Technique which is used by this study was
“Percentage analysis Researcher found that all the people are availing loan facility from
both the banks. Number of respondent of SBI was 46 and 47 of ICICI bank. People are
more related with SBI than ICICI bank. The both banks SBI and ICICI mostly offer
mobile ban5king service. Processing of SBI is fast than ICICI. Finally the researcher
concluded that SBI bank provides food home loan services as compared to ICICI and
many people are very satisfied with SBI.
6. Micharl Lacour –little, 18 may 2007

Research study on “Economic factors Affecting Home Mortgage Disclosure Act
reporting”. The Research release the 2004-2005 Home Mortgage disclosure act data
raised a number of questions given the increase in the number and percentage continued
in differentials across demographics groups. The researcher assess there possible
explanations for the observed increase in 2005 over 2004. (1) changes in lender business
practices (2) change in the yield curve environment. The research suggest that after
controlling for the maximum of loan tpes, credit risk factors and the yield curve, there
was no statistically significant increase in reportable volume for loan originated directly
by lenders during 2005, though indirect wholesale originations did significantly increase.
Finally research found that model of the those factors affecting result for 2004-2005,
research predict that 2006 result will continue to show on increase in the percentage of
loans that are higher priced when final numbers are released in September 2007.
7. Micharl lacour-little , August 2007

Research studied about “The home purchase mortgage preference of low and moderate
income households. Housing policy in the United States has long supported home
ownership, yet variation persists (continues) across income groups. This study says that
recent mortgage origination data to focus on revealed preference of low and moderate
income (LMI) households in home purchase mortgage choice. Research identify that the
factors associated with conventional conforming, non-prime and specially targeted
programs. This study results shows that individual credit characteristics and financial
factors including pricing, generally drive product choice, with some variation evident
when loans are originated through brokers. The study results indicate that targeted
conventional programs effectively compete with government insured products in the low
–moderate income segment.
8. Marsha courchane, 1 November 2007

Researcher studied about “The pricing of home mortgage loans to minority borrowers,
How much of the APR (Annual percentage rate) differential. Research release of the 2004
and 2005 data have engendendd a lively debate over the pricing of mortgage credit and its
implications regarding the treatment of minority mortgage borrowers. This study provide
a unique empirical assessment of this issue by using aggregated proprietary data provided
to us by lenders. Researcher used regression model to estimate the probability of taking
out a sub-prime mortgage, and annual percentage rate(ARR) . Conditional on getting
either a sub-prime ( or) prime mortgage. Researcher found that up to 90% of the African
American ARR gap, and 85% of the Hispanic APR, is attributable to observable
difference in under writing, costing and market factors that are appropriately problematic
and they should addressed. This study suggests that little of the aggregate difference in
APR’s paid by minority and non-minority borrowers are appropriately attributed to
differential treatment.
9. Irina paley and chau , 10 December 2007

Research stuffy about “The Explaining the Growth of higher priced loans in home
mortgage disclosure act (HMDA) a decomposition approach. The period 2004-2005
showed a significant increase in home mortgage disclosure act (HMDA) rate spread
reporting. Research used as Oaxaca (1973), Blinder (1973) and fairly(2005)
decomposition technique. This study identifies the fraction of the increase due to the
flattening (become) of the yield curve. Even after controlling for changes in borrower risk
characteristics. Research found that during 2004-2005 the flattening of the yield curve
explain a significant amount of the increase in rate spread reportable loans. This is for
both prime and sun-prime organizations.

10. GovindaRao, (2011) says that Mortgage financing markets play

an important role in stimulating affordable housing markets and
improving housing quality in many countries. Unfortunately, they are
often less developed in India. This lack of development often translates
into lower homeownership rates or lower housing quality. Most stem
from the central dilemma that the resources are always too limited and
housing development heavily depend on the financial institutions such
as banks, credit corporations and development banks for the supply of
finance to meet their daily financial needs.
11. Dr. Ashok K.M, (2011) Housing scarcity and lack of decent
housings an international phenomenon. About 25% of the world’s
population does not have sufficient shelter and live in sub-human
conditions. The shortage of housing in India persists since
Independence. According to the planning commission the shortage of
dwelling units are expected to reach 41 million. This resulted due to the
growth of population Shift in demographic pattern and rising income of
the middle class vis-à-vis the availability stock. In order to rectify this
mismatch between demand and supply the government encouraged
the housing finance institution and banks (public and private) for
bridging the resource gap.
12. Gupta J. and Jain S. (2012) focused on the various practices adopted by cooperative
banks in India and made a comparison of the cooperative banks with respect to their
efficiency with respect to lending practices. The major findings of the study showed that
majority (32% as per the study) of the respondent were having housing loan for the bank
under study, most (64% as per the study) of the people prefer to take long term loan
which is more than 3 years, there is a very simple procedure followed by bank for loan,
easy repayment and less formalities are the main factors determining customer’s selection
of loans, quality of services provided by the staff is satisfactory because bank is catering
to a small segment only and the customers are properly dealt with, customers are satisfied
with the mode of repayment of installments, average time for the processing of loan is

less i.e approx 7 days. The authors also suggested measures to improve the efficiency of
the Cooperative banks.
13. “ Inderbir Kour” Assistant Professor(may- june 2013)

Research on” Comparative study of housing loan of HDFC and ICICI bank”. The main
importance of this study is, to undertake the comparative analysis of privatize banks
(HDFC bank and ICICI bank) in housing loan sector and to study consumer preference
for taking loan from those two banks, To know the strengths of the HDFC & ICICI brand
and also those which can be daily to strength the brand image. In this study the researcher
used primary and secondary data. Primary data collected through consumer survey by
using questionnaires and secondary data collected from available information in report of
HDFC bank and ICICI bank, articles, newspapers, journals, magazines. To analysis data
research used as” Descriptive research design where it involves relatively large number of
observation. The researcher used sample method like average and percentage. The
researcher found that people prefer fixed rate on home loans and they want quality of
service and minimum rate of interest are important criteria. In this study most of the
respondent interest rate of HDFC banks are lower than ICICI, and processing fee also less
to HDFC when compare ICICI bank. Finally concluded that people prefer HDFC bank
more than ICICI bank.
14. pankaj Chadha and Vanitha Chawla (july 2013)
The research studied on "comparative analysis of Indian housing finance companies

based on corporate governance disclosure". The main objectives of this study is to
analysis HFC's compliance to corporate governance attributes as per clause 49
framework, to determine whether any relationship exists between corporate governance
disclosure of HFC's and independent factors like size, net profit margin, leverage ratio. In
this study research used secondary data collected from relevant information regarding
HFC’s having registration, newspapers, published annual report of respective HFC’s
,websites. The data is measured by using descriptive statistics, cg score matrix,
correlation matrix, regression analysis. Research observed that majority of HFC’s are not
able to score well in term of corporate governance disclosure. Only two HFC’s HUDCO
& HDFC has corporate governance score over 90%. Analysis show that there no

significant correlation exists between HFC’s corporate governance score and independent
variable.
15. Priyanka Saroha, “S.K.S Yadar (july-aug-sep 2013)

Research studied on “An analytical study of housing finance in India with special
Reference: to HDFC and LIC housing finance ltd”. The main objective of study is to
know the costumers satisfaction level towards housing finance bank in India and to
understand why customers preferred the HDFC and LIC housing finance ltd for home
loan in India. In study the researcher used primary data through questionnaires and
secondary data in the form of books, article, reports of HDFC bank and LIC housing
finance. The collected data were scrutinized and analyzed using “statistical package for
social science”(spss) like chi-square test. Researcher concluded that HDFC is strong
retain loan growth, stable margins steady assets quality were the key highlights of HDFC
June quarter performance. Maintaining it’s marker relationship in housing finance market,
HDFC delivered a growth 17% net profit in its core business and LIC housing finance ltd
posted lower than expected result due to dwindling loan growth and lower margins.
16. Utkarsh Gupta, Dr.Richa Sinha (feb 2015)

The research study on “A comparative study on factor Affecting consumer’s buying
behavior towards home loan with special reference to state bank of India and life
insurance corporation, Allahabad. The objective of study is to study the various factors
affecting consumer’s decision towards purchase of home loan of SBI and LIC. In this
study data collected from primary source like structured questionnaires. Secondary data
was obtained from books, websites, and journals’. Technique which is used by this study
was frequency percentage, t-test was applied for the prepare of data analysis. The research
found that demand for home loan has been increasing in India due the requirement of
residential accommodation. Maximum percentage of the respondents had opted for home
purchase category of home both in LIC (42%) and SBI (48%). Fixed rate of interest is
most preferred option by the respondents for the purchase of home loan. Longer
repayment period, easy documentation formalities, co-operative staff and easy installment
are major factor that influenced the respondent to opted for home loan from SBI, whereas
fast processing of loan, good communication, suggestion by friends those are major factor
influenced the respondents to opted for home loan from LIC.

17. Mahabir Singh Narwal, Sushma Rani, Radhika
The researcher studied on ‘customer preference for home loan”. The main objective of
this study is to study the customer preference for home loans, to study the difference
among customer preferences for home loan o the basis of occupation and income. In this
study researcher used a sample of 200 respondents using convenience sampling method.
The sample consists of both male and female respondents of different age group, having
different education qualification, belonging to different area, different occupation and
different income groups. The data collected through survey questionnaire. This data was
analyzed with the help facto analysis and ANOVA. The researcher found that customer
preference for home loan is affected by customer friendly environment, processing and
disbursing, rate of interest, payment and conditions, freebies offered by the bank. Finally
researcher states that there is a significant difference among customer preference for
home loan across occupation and income. Occupation wise observed among customers in
terms of rate of interest and payment term and conditions. Income wise there is no
difference among customers in term of customer friendly environment, processing and
disbursing and rate of interest.

BANKING SYSTEM IN INDIA
3.1 INTRODUCTION
A bank is a financial institution that provides banking and other financial services to their
customers. A bank is generally understood as an institution which provides fundamental
banking services such as accepting deposits and providing loans. There are also non-
banking institutions that provide certain banking services without meeting the legal
definition of a bank. Banks are a subset of the financial services industry.
Banking system also referred as a system provided by the bank which offers cash
management services for customers, reporting the transactions of their accounts and
portfolios, through out the day. The banking system in India should not only be hassle
free but it should be able to meet the new challenges posed by the technology and any
other external and internal factors. For the past three decades, India’s banking system has
several outstanding achievements to its credit. The Banks are the main participants of the
financial system in India. The Banking sector offers several facilities and opportunities to
their customers. All the banks safeguards the money and valuables and provide loans,
credit, and payment services, such as checking accounts, money orders, and cashier’s
cheques. The banks also offer investment and insurance products. As a variety of models
for cooperation and integration among finance industries have emerged, some of the

traditional distinctions between banks, insurance companies, and securities firms have
diminished. In spite of these changes, banks continue to maintain and perform their
primary role—accepting deposits and lending funds from these deposits.
3.2 NEED OF THE BANKS

Before the establishment of banks, the financial activities were handled by money lenders
and individuals. At that time the interest rates were very high. Again there were no
security of public savings and no uniformity regarding loans. So as to overcome such
problems the organized banking sector was established, which was fully regulated by the
government. The organized banking sector works within the financial system to provide
loans, accept deposits and provide other services to their customers.
The following functions of the bank explain the need of the bank and its importance:
• To provide the security to the savings of customers.
• To control the supply of money and credit
• To encourage public confidence in the working of the financial system, increase
savings speedily and efficiently.
• To avoid focus of financial powers in the hands of a few individuals and institutions.
• To set equal norms and conditions (i.e. rate of interest, period of lending etc) to all
types of customer.
3.3 HISTORY OF INDIAN BANKING SYSTEM

The first bank in India, called The General Bank of India was established in the year
1786. The East India Company established The Bank of Bengal/Calcutta (1809), Bank of
Bombay (1840) and Bank of Madras (1843). The next bank was Bank of Hindustan
which was established in 1870. These three individual units (Bank of Calcutta, Bank of
Bombay, and Bank of Madras) were called as Presidency Banks. Allahabad Bank which
was established in 1865 was for the first time completely run by Indians. Punjab National
Bank Ltd. was set up in 1894 with head quarters at Lahore. Between 1906 and 1913,
Bank of India, Central Bank of India, Bank of Baroda, Canada Bank, Indian Bank, and
Bank of Mysore were set up. In 1921, all presidency banks were amalgamated to 22 form

the Imperial Bank of India which was run by European Shareholders. After that the
Reserve Bank of India was established in April 1935.
At the time of first phase the growth of banking sector was very slow. Between 1913 and
1948 there were approximately 1100 small banks in India. To streamline the functioning
and activities of commercial banks, the Government of India came up with the Banking
Companies Act, 1949 which was later changed to Banking Regulation Act 1949 as per
amending Act of 1965 (Act No.23 of 1965). Reserve Bank of India was vested with
Extensive powers for the supervision of banking in India as a Central Banking Authority.
After independence, Government has taken most important steps in regard of Indian
Banking Sector reforms. In 1955, the Imperial Bank of India was nationalized and was
given the name "State Bank of India", to act as the principal agent of RBI and to handle
banking transactions all over the country. It was established under State Bank of India
Act, 1955. Seven banks forming subsidiary of State Bank of India was nationalized in
1960. On 19th July, 1969, major process of nationalization was carried out. At the same
time 14 major Indian commercial banks of the country were nationalized. In 1980,
another six banks were nationalized, and thus raising the number of nationalized banks to
20. Seven more banks were nationalized with deposits over 200 Crores. Till the year 1980
approximately 80% of the banking segment in India was under government’s ownership.
On the suggestions of Narsimhan Committee, the Banking Regulation Act was amended
in 1993 and thus the gates for the new private sector banks were opened.
The following are the major steps taken by the Government of India to Regulate Banking
institutions in the country:-
1949 : Enactment of Banking Regulation Act.
1955 : Nationalization of State Bank of India.
1959 : Nationalization of SBI subsidiaries.
1961 : Insurance cover extended to deposits.
1969 : Nationalization of 14 major Banks.
1971 : Creation of credit guarantee corporation.
1975 : Creation of regional rural banks.
1980 : Nationalization of seven banks with deposits over 200 Crores

.3.4 CLASSIFICATION OF BANKING INDUSTRY IN INDIA

Indian banking industry has been divided into two parts, organized and unorganized
sectors. The organized sector consists of Reserve Bank of India, Commercial Banks and
Co-operative Banks, and Specialized Financial Institutions (IDBI, ICICI, IFC etc). The 28
unorganized sector, which is not homogeneous, is largely made up of money lenders and
indigenous bankers.An outline of the Indian Banking structure may be presented as
follows:-
1. Reserve banks of India.
2. Indian Scheduled Commercial Banks.
a) State Bank of India and its associate banks.
b) Twenty nationalized banks.
c) Regional rural banks.
d) Other scheduled commercial banks.
3. Foreign Banks
4. Non-scheduled banks.
5. Co-operative banks.
3.4.1 RESERVE BANK OF BANK

The reserve bank of India is a central bank and was established in April 1, 1935 in
accordance with the provisions of reserve bank of India act 1934. The central office of
RBI is located at Mumbai since inception. Though originally the reserve bank of India
was privately owned, since nationalization in 1949, RBI is fully owned by the
Government of India. It was inaugurated with share capital of Rs. 5 Crores divided into
shares of Rs. 100 each fully paid up.
RBI is governed by a central board (headed by a governor) appointed by the central

government of India. RBI has 22 regional offices across India. The reserve bank of India
was nationalized in the year 1949. The general superintendence and direction of the bank
is entrusted to central board of directors of 20 members, the Governor and four deputy
Governors, one Governmental official from the ministry of Finance, ten nominated
directors by the government to give representation to important elements in the economic
life of the country, and the four nominated director by the Central Government to
represent the four local boards with the headquarters at Mumbai, Kolkata, Chennai and 29
New Delhi. Local Board consists of five members each central government appointed for

a term of four years to represent territorial and economic interests and the interests of
cooperative and indigenous banks.
The RBI Act 1934 was commenced on April 1, 1935. The Act, 1934 provides the
statutory basis of the functioning of the bank. The bank was constituted for the need of
following:
- To regulate the issues of banknotes.
- To maintain reserves with a view to securing monetary stability
- To operate the credit and currency system of the country to its advantage.
Functions of RBI as a central bank of India are explained briefly as follows:
Bank of Issue: The RBI formulates, implements, and monitors the monitory policy. Its
main objective is maintaining price stability and ensuring adequate flow of credit to
productive sector.
Regulator-Supervisor of the financial system: RBI prescribes broad parameters of

banking operations within which the country’s banking and financial system functions.
Their main objective is to maintain public confidence in the system, protect depositor’s
interest and provide cost effective banking services to the public.
Manager of exchange control: The manager of exchange control department manages
the foreign exchange, according to the foreign exchange management act, 1999. The
manager’s main objective is to facilitate external trade and payment and promote orderly
development and maintenance of foreign exchange market in India.
Issuer of currency: A person who works as an issuer, issues and exchanges or destroys
the currency and coins that are not fit for circulation. His main objective is to give the
public adequate quantity of supplies of currency notes and coins and in good quality.
Developmental role: The RBI performs the wide range of promotional functions to
support national objectives such as contests, coupons maintaining good public relations
and many more
.Related functions: There are also some of the related functions to the above mentioned
main functions. They are such as, banker to the government, banker to banks etc….
• Banker to government performs merchant banking function for the central and thestate
governments; also acts as their banker.
• Banker to banks maintains banking accounts to all scheduled banks
.Controller of Credit: RBI performs the following tasks:

• It holds the cash reserves of all the scheduled banks.
• It controls the credit operations of banks through quantitative and qualitative
Controls.
• It controls the banking system through the system of licensing, inspection and
Calling for information.
• It acts as the lender of the last resort by providing rediscount facilities to
Scheduled banks.
3.4.2 INDIAN SCHEDULED COMMERCIAL BANK

The commercial banking structure in India consists of scheduled commercial banks, and
unscheduled banks
Scheduled Banks: Scheduled Banks in India constitute those banks which have been
included in the second schedule of RBI act 1934. RBI in turn includes only those banks in
this schedule which satisfy the criteria laid down vide section 42(6a) of the Act.
“Scheduled banks in India” means the State Bank of India constituted under the State
Bank of India Act, 1955 (23 of 1955), a subsidiary bank as defined in the s State Bank of
India (subsidiary banks) Act, 1959 (38 of 1959), a corresponding new bank constituted
under section 3 of the Banking companies (Acquisition and Transfer of Undertakings)
Act, 1980 (40 of 1980), or any other bank being a bank included in the Second Schedule
to the Reserve bank of India Act, 1934 (2 of 1934), but does not include a co-operative
bank”. For the purpose of assessment of performance of banks, the Reserve Bank of India
categories those banks as public sector banks, old private sector banks, new private sector
banks and foreign banks, i.e. private sector, public sector, and foreign banks come under
the umbrella of scheduled commercial banks.
Regional Rural Bank: The government of India set up Regional Rural Banks (RRBs) on
October 2, 1975 [10]. The banks provide credit to the weaker sections of the rural areas,
particularly the small and marginal farmers, agricultural laborers, and small
entrepreneurs. Initially, five RRB’s were set up on October 2, 1975 which was sponsored
by Syndicate Bank, State Bank of India, Punjab National Bank, United Commercial Bank

and United Bank of India. The total authorized capital was fixed at Rs. 1 Crore which has
since been raised to Rs.5 Cores. There are several concessions enjoyed by the RRB’s by
Reserve Bank of India such as lower interest rates and refinancing facilities from
NABARD like lower cash ratio, lower statutory liquidity ratio, lower rate of interest on
loans taken from sponsoring banks, managerial and staff assistance from the sponsoring
bank and reimbursement of the expenses on staff training. The RRB’s are under the
control of NABARD.
3.4.3 NABARD
NABARD is an apex development bank with an authorization for facilitating credit flow
for promotion and development of agriculture, small-scale industries, cottage and village
industries, handicrafts and other rural crafts. It also has the mandate to support all other
allied economic activities in rural areas, promote integrated and sustainable rural
development and secure prosperity of rural areas. In discharging its role as a facilitator for
rural prosperity, NABARD is entrusted with:
1. Providing refinance to lending institutions in rural areas

2. Bringing about or promoting institutions development and
3. Evaluating, monitoring and inspecting the client banks
Besides this fundamental role, NABARD also:
• Act as a coordinator in the operations of rural credit institutions
• To help sectors of the economy that they have special credit needs for
eg. Housing, small business and agricultural loans etc.
3.4.4 CO-OPERATIVE BANK

People who come together to jointly serve their common interest often from a co-perative
society under the Co-operative Societies Act. When a co-operative society engages itself
in banking business it is called co-operative bank.
The society has to obtain a license from the Reverse Bank of Inida before starting
banking business. Any co-operative bank as a society is to function under the overall
supervision of the Registrat,Co-operative Societies of the State. As regard banking
business, the society must follow the guidelines set and issed by the Reverse Bank of
India.
Types of Co-operative Bank:-
1. Primary Credit Societies

2. Central Co-operative Banks
3. State Co-operative Bank
3.5 SERVICES PROVIDED BY BANKING ORGANIZATIONS

Banking Regulation Act in India, 1949 defines banking as “Accepting” for the purpose of
lending or investment of deposits of money from the public, repayable on demand and
withdrawable by cheques, drafts, orders etc. as per the above definition a bank essentially
performs the following functions:-
 Accepting Deposits or savings functions from customers or public by providing bank
account, current account, fixed deposit account, recurring accounts etc.
 The payment transactions like lending money to the public. Bank provides an
effective credit delivery system for loanable transactions.
 Provide the facility of transferring of money from one place to another place. For
performing this operation, bank issues demand drafts, banker’s cheques, money
orders etc. for transferring the money. Bank also provides the facility of Telegraphic
transfer or tele- cash orders for quick transfer of money.
 A bank performs a trustworthy business for various purposes.
 A bank also provides the safe custody facility to the money and valuables of the
general public. Bank offers various types of deposit schemes for security of money.
For keeping valuables bank provides locker facility. The lockers are small
compartments with dual locking system built into strong cupboards. These are stored
in the bank’s strong room and are fully secured.
 Banks act on behalf of the Govt. to accept its tax and non-tax receipt. Most of the
government disbursements like pension payments and tax refunds also take place
through banks.There are several types of banks, which differ in the number of services
they provide and the clientele (Customers) they serve. Although some of the
differences between these types of banks have lessened as they have begun to expand
the range of products and services they offer, there are still key distinguishing traits.
These banks are as follows:
Commercial banks, which dominate this industry, offer a full range of services for
Individuals, businesses, and governments. These banks come in a wide range of sizes,

from large global banks to regional and community banks.

Global banks are involved in international lending and foreign currency trading, in
Addition to the more typical banking services.
Regional banks have numerous branches and automated teller machine (ATM) locations
throughout a multi-state area that provide banking services to individuals. Banks have
become more oriented toward marketing and sales. As a result, employees need to know
about all types of products and services offered by banks.
Community banks are based locally and offer more personal attention, which many
individuals and small businesses prefer. In recent years, online banks—which provide all
services entirely over the Internet—have entered the market, with some success.
However, many traditional banks have also expanded to offer online banking, and some
formerly Internet-only banks are opting to open branches.
Savings banks and savings and loan associations, sometimes called thrift institutions,
are the second largest group of depository institutions. They were first established as
community-based institutions to finance mortgages for people to buy homes and still cater
mostly to the savings and lending needs of individuals.
Credit unions are another kind of depository institution. Most credit unions are formed
by people with a common bond, such as those who work for the same company or belong
to the same labour union or church. Members pool their savings and, when they need
money, they may borrow from the credit union, often at a lower interest rate than that
demanded by other financial institutions.
Federal Reserve banks are Government agencies that perform many financial services
for the Government. Their chief responsibilities are to regulate the banking industry and
to help implement our Nation’s monetary policy so our economy can run more efficiently.
3.5.1 The future of banking:

Banking is a rapidly changing industry, and the biggest paradigm shift that has occurred is
the move to digital-only banks. Millennial, in particular, are moving more frequently
toward digital banking. And as a result, they’re waling into their bank’ traditional brick-
and-mortar branches less often than ever before. This generation represents the greatest
share of the U.S population at 26% and the employed population at 34%, so it’s clear that
their behaviors and preferences will have a profound effect on the future of the banking
industry, particularly with regard to the way names interact eighth their customers.

This shift to digital banking has come in many forms. Traditional powers such a Bank of
America, JPMorgan chase, Well Fargo, and more have released mobile banking apps to
let customers manage their accounts from their smart phone. And some startups have
taken this approach one step further by creating digital-only banks that completely
remove the need for a physical branch. Below, we’ve outlined some of the key points on
future banking and mobile banking, including the future of investment in online banking,
and how these new players plan to grow financial electronic banking.
3.5.2 Banking is a Rapidly Changing Industry

Digital-only bank Ally launched in the U.S in 2008 and at the time, it was one of the first
of it kind. But multiple new players have entered the scene in the last few years. These
include Monzo, Tandem, N26, and Fidor in Europe, along with Digital-bank in India and
B1NK in Kazakhstan.
These banks hold key advantages over traditional institutions, such as freedom from
historical tech restrictions and the fees associated with brick-and-mortar branches. And in
many nations, financial regulations also help these banks flourish. In Europe, these
digital-only bank will soon be able to access customer data from traditional banks.
Further more, new players can almost always offer better rates and lower fees to
customers, and these banks typically provide innovative services that can more easily be
tailored to individual customers need. And yet, digital-only banks face major problems in
terms of customer acquisition as more of them flood the market and customers hesitate to
leave a well-known, established bank for a startup. As a result, they haven’t yet posed a
true threat to legacy banks.
3.5.3 High Growth in Mobile Banking’

The payments segments is much more mature than other fintech areas, and a small
handful of companies now dominate the business-to-consumer(B2C) space in particular.
Paypal is the undisputed leader in digital payments in the U.S. and Europe, while Apply
Pay and Android pay have taken over the top spots for in –store mobile. Furthermore
Alipay and we chat are the to players in china. The remittance space has also exploded
thanks to companies such as Transfer wise, which has been valued at over $1billion, as
well as Remitly, WorldRemit, and Azimo. And digital – first Xoom makes more revenue

from electronic channels than 75-years-old Money Gram, the second-largest remittance
company in the world.
3.5.4 Digital –Only Banks
We touched on digital-only banks in a previous section, but there is still much more to
cover. As stated earlier, these banks have the advantage of flexibility and the ability to
offer innovative service at much lower rates than legacy players. But these startups often
struggle with customer acquisition, particularly amid competition. In North Amerrica,
banking customers have shown a greater willingness to switch banks. In fact, 11%
switched providers in 2015, and 19% of those went to a bank with no brick-and-mortar
branches. But there is and important caveat here. There are very few options for digital-
only bank in the U.S. but in Europe, the option are plentiful. Digital-only banks across the
pond are competing both with legacy banks and with each other for customers. So in
order to lure clients away from their existing bank, they have to offer a significantly better
product than their competition.
As a result, these digital only players have yet to pose a true threat to the Bank of
Americas and JPMorgan chases of the world. Their products are still too new, and
customers are still hesitating to take the risk of letting a startup manage their money. But
U.S. and upcoming regulation in Europe will help digital-only banks spread their
influence in that region. Therefore, legacy players must improve their offerings in order to
stay ahead.
3.5.5 Market size

The Indian banking system consists of 26 public sector bank, 25 private sector banks, 43
foreign banks, 56 regional rural banks, 1,589 urban cooperative banks and 93,550 rural
cooperative banks, in addition to cooperative credit institutions. Public-sector banks
control nearly 80% of the market, thereby leaving comparatively much smaller shares for
its private peers. Banks are also encouraging their customers to manage their finance
using mobile phones.
Standard & Poor’s estimates that credit growth in India’s banking sector would improve
to 11-13 percent in FY17 from less than 10 percent in the second half of CY14.
3.5.6 Investments/developments
Key investments and developments in India’s banking industry include:

 RBI Bank Limited, an Indian private sector bank, has raised Rs.330crore (US$ 49.6
million) from a UK-based development finance institution CDC Group Plc, which
will help RBL to strengthen the capital base to meet future requirements.
 The State Bank India (SBI) signed an agreement with the world bank for a
Rs.4,200crore (US$ 625 million) credit facility, aimed at financing grid connected
rooftop solar photo voltaic (GRPV) projects in India.
 India’s first small finance bank called the Capital small finance Bank has started its
operations by launching 10 branch offices in Punjab, and aims to increase the number
of branches to 29 in the current FY 2016-17.
 Free charge, the wallet company owned by online retailer Snap-deal, has partnered
with Yes Bank and MasterCard to launch Free-Charge Go, a virtual card that allows
users to pay for goods and services at online shops and offline retailers.
 India’s largest public sector bank, State Bank sector Bank, State Bank of India (SBI),
has opened its first branch dedicated to serving start-up companies, in Bangalore.
 Global rating agency Moody’s has upgraded its outlook for the Indian banking system
to stable from negative based on it assessment of five drivers including improvement
in operating environment and stable assest risk and capital scenario.
 Lok Capital, a private equity investor backed by US-based non-profit organization
Rockefeller Foundation, plans to invest up to US$ 15 million in two proposed small
finance bank in India over the next one year.
 The Reserve Bank of India (RBI) has granted in-principle license to 10 applicants to
open small finance banks, which will help expanding access to financial services in
rural and semi-urban areas.
 The RBI has given in-principle approval to 11 applicants to establish payment banks.
These banks can accept deposits and remittances, but are not allowed to extend any
loans.

PROFILE OF BANK OF INDIA

3.6 INTROCTION
Type: Public
Traded as : BSE, NSE:BANKINDIA
Industry : Banking, Financial services
Founded: 7 September 1906; 110 years ago
Headquarter : Mumbai, India.
Key people: Shri Melwyan Rego (MD & CEO)
Products: commercial Banking, Retail Banking, Private Banking, Assest
Management, Mortgages, Credit Cards.
Revenue: 41,796.47 crore (US$6.2 billion) (2016)
Operating income: US$900 million (2016)
Net income : US$-900million (2016)
Total assests : US$ 91biilion (2016)
Number of employees: 45,300 (2015)
Capital ratio: 12.01% ( 2015)
Bank of inida (BOI) is commercial bank with headquarters at Bandra kurla complex,
Mumbai. Founded in 1906,it has been government owned since nationalization 1969.

However, some branches are individually owned, such as Kandia, Indonesia , etc. Bank of
India has 5100 branches as on 31 January 2017, including 56 offices outside India which
includes five subsidiaries, five representative offices, and one joint venture. BOI is a
founder member of Society for Worldwide Inter Bank Financial Telecommunications
(SWIFT) which facilitates provision of cost-effective financial processing and
communication services.
3.7 HISTORY:
 Bank of India was founded on 7th September, 1906 by a group of eminent
businessmen from Mumbai. The Bank was under private ownership and control till
July 1969 when it was Nationalized along with 13 other banks.
 Beginning with one office in Mumbai, with a paid-up capital of Rs.50 lakhs and 50
employees, the Bank has made a rapid growth over the years and blossomed into a
mighty institution with a strong national presence and sizable international operations.
In business volume, the bank occupies a premier position among the other 13
nationalized banks.
 The Bank has 4963 branches in India spread over all states/ union territories including
specialized branches. These branches are controlled through 54 Zonal Offices. There
are 60 branches / offices and 5 subsidiaries and 1 joint venture abroad.
 The Bank came out with its maiden public issue in 1997 and follow on Qualified
Institutions Placement in February 2008.
 While firmly adhering to a policy of prudence and caution, the Bank has been in the
forefront of introducing various innovative services and systems. Business has been
conducted with the successful blend of traditional values and ethics and the most
modern infrastructure. The Bank has been the first among the nationalized banks to
establish a fully computerized branch and ATM facility at the Mahalaxmi Branch at
Mumbai way back in 1989. The Bank is also a Founder Member of SWIFT in India. It
pioneered the introduction of the Health Code System in 1982, for evaluating/ rating
its credit portfolio.

 Presently Bank has overseas presence in 22 foreign countries spread over 5 continents
– with 60 offices including 5 Subsidiaries, 5 Representative Offices and 1 Joint
Venture, at key banking and financial centers viz., Tokyo, Singapore, Hong Kong,
London, Jersey, Paris and New York
3.8 VISION:
 To Become the Bank of choice for Corporate, Medium Business and up market
Retail Customers. Developmental Banking for Small Business, Mass Market and
Rural Markets.
3.9 MISSION:
 To provide superior, proactive banking service to niche markets globally.
 While providing cost effective, respective, responsive service to others in our role
as a development bank, and in doing so, meet the requirement of our stakeholders.
3.10 INDUSTRY POLICY:
BOI National Swasthya Bima Policy
BOI Natioanal Swasthya Bima Policy is a unique Health insurance Policy
designed especially for the Account holders of Bank of India. The entire family consisting
of the account holder, spouse and two dependent children can be covered under this
policy .
 The policy covers Hospitalization expenses for account holder and family. In case of
Hospitalization Expenses, the entire family is covered for the Floater sum insured as
optd for, i.e., either oneor all member of the family can utilize the sum insured during
the policy period.
 Age: 3 month to 65 years. However, renewals are allowed up to life time at a
premium laoding of 25% of the specified premium.
Quality policy
At Bank of India, are committed to become the bank of choice by providing
SUPERIOR, PRO-ACTIVE, INNOVATIVE AND STATE-OF-THE-ART Banking
services with an attitude of care and concern for the customers and patrons.

3.11 PRODUCT AND SERVICES

Bank of India provides a side range of products and services in deposits, loans, NRI
banking, cards, and online services such as internet deposits. Following are the new
products and services introduced;
 Kits introduced for NRI Customers opening NRE/NRO account at foreign centers.
 Calculation of interest on Saving Bank account, from April 01, 2010, has been
changed from monthly product basis to daily product basis.
 Launched Marathi version of the Bank
 As a fraud prevention measure, SMS alerts-star Sandesh are generated and provided
to all customers who have registered their mobile number with the bank for all Debit
transactions from delivery channels.
 Mobile banking facility is introduced as the latest alternate delivery channel which
allows customers to do banking activities virtually form the convenience of the
Mobile phone at any time and from anywhere. This facility is extended to all Retail
internet banking customers.
 Online inter-bank fund transfer across banks, through star connect internet banking
services, using RTGS/NEFT.
 BOI Star e-pay for Auto-pay or on-line payment of various utility services/bills.
 E-payments for Direct & Indirect, Central Excise & Service Tax and e-Freight
Payment.
 Online payment of Directorate General of Foreign Trade (DGFT) license fees
 Online application for education loan, online booking of Railway & Airlines ticket.
BOI Shareholding Ltd. (BOISL)
Bank association with the Capital Market spans a period of nine decades. The clearing
and settlement function of Bombay Stock Exchange (BSE) was being handled by the
Bank since 1921. in 1989, bank set-up BOI shareholding Ltd. BOISL joint venture with
BSE, to manage the clearing house activities of the Stock Exchange. The bank is holding
51% of its paid up capital of Rs 2 crore.
The company has been carrying out the rolling and weekly settlements of trades executed
by member brokers operating on the Exchange; BOISL is also a Depository Participant
(DP) of both the Depositories viz. The National Securities Depository Ltd. (NSDL) and
the Central Depository Services (India) Ltd. (CDSL) and provides depository services to

the clearing members and investors. BOLSL is the first Securities Clearing House in the
country to have been awarded ISO 9001-2000 ISO Certification.
Securities Trading Corporation of India Ltd. (STCI)
STCI Ltd. is one of the leading primary dealers in the country. It was established in 1999
with the objectives of widening the gilt and other debt security market through
development of a vibrant secondary market. Bank of India with 29.96% holding is the
single largest stakeholder in STCI having paid-up capital of Rs 380 crore. The company is
an associate company of the bank in terms of Accounting Standards 21 (AS-21) of the
Institute of Chartered Accountants of India.
Star Union Dai-ichi Life Insurance Company Ltd. (SUDLife)
Bank of India, Union Bank of India and Dai-ichai Mutual Life Insurance Company, japan
have formed. Star Union Dai-ichi Life Insurance Company to take advantage of the
growing insurance market and to provide quality assured insurance to its clients spread
across the length and breadth of the country. the company has commenced insurance
business since February 2009. BOI holds 48% in the company paid up capital of Rs
250.00 crore.
ASREC (India) ltd. (Associate)
The company was floated by the specified undertaking of the unit Trust of India to
undertake securitization and asset reconstruction activities. The company was granted
Certificate of Registration by RBI under the SARFAESI Act, 2002 in the second half of
FY 2004-05 and has since commenced full-fledged operation. Currently the bank is
holding 26.02% stake, in the equity capital of the company which is Rs 27.06 crore.
Indo Zambia Bank Ltd. (IZB)
IZB is a joint venture of three Indian Bank viz. Bank of India, bank of Baroda, Central
Bank of India and Government of Zambia. Each of the Indian Banks holds 20% of the
share capital, whereas Government of Zambia holds 40% of the share capital. It enjoys
the patronage of two friendly republics, the Government of Republic of Zambia and
Government of India.
Bank of India (Tanzania) Ltd.
Bank of India (Tanzania) Ltd. Is wholly owned subsidiary of the bank and commenced
operation on June 16,2008 with first branch at Dar-Es-Saleam.
Bank of India (New Zealand) ltd.

Bank of India (New-Zealand) Ltd. is wholly owned subsidiary of the bank with Rs 176.95
crore paid up capital. The bank has received a license to operate as a bank from Reverse
Bank of New Zealand on March 31, 2011. The operations are likely to start shortly.
3.11.1 Business Initiatives

Keeping its growth aspirations in mind, the bank embarked upon a new bold vision
Sankalp 10,000. Sankalp 10,000 rests on the three pillars of customer first, building
winning teams and high performance driven culture. Under Project Sankalp, the
organizational structure of the bank has been redesigned in September 2010. With its
division in two distinctly separate groups of businesses i,e. (a) National Banking Group
and (b) Wholesale and international Banking Group in order to have a more focused
attention to each business segment. The two groups are headed by the two executive
directors of the bank.
 National Banking Group (Head Office) – The national banking group is comprised of
rural banking, financial, inclusion, retail banking and SME banking business units.
 Wholesale and International Banking Group (Head Office) – The wholesale and
international banking group are comprised large corporate banking, mid-corporate
banking. Project finance, transaction banking, international banking and treasury.
 15 rurla centralized credit processing centers (CPC) have been started at Belgaon,
Ujjainm, Barabanki, Mehasana, Ludhiana, Karad, Amajapuram, Tanjavur, Barasat,
Hardoi, Nadiad, Ratnagiri, Nashik, Solapur and Barnagar.
 In all, 40 focused districts have been identified in 19 zones to target large and medium
farmers and large institutions with high credit quality.
 Five New Retail Business Canters were launched in 15 identified zones namely
Bangalore, Chandigarh, Mumbai South, New Delhi and Pune on Pilot basis on
January 14, 2011.
3.11.2 Bank of India SWOT Analysis, USP & Competitors
SWOT Analysis of Bank Of India with USP, competition, STP ( segmentation, targeting,
positioning)-Marketing Analysis.
Bank of India
Parent Company – Bank of India
Category - Banking, Financial services

Sector - Banking
Tagline/Slogan - Relationships beyond Banking
USP - A bank that gives something extra to its customers
STP
Segment - For people who wish to invest their money in bank
Target Group -Families, Corporate
Positioning - Bank that delivers with a human touch
SWOT Analysis
Strengths - 1. A public sector undertaking. Thus, has government backing
2. Increasing profits over the years
3. Pan India presence with over 3400 braches
4. Founder of SWIFT (Society for Worldwide Inter Bank Financial
Telecommunications)
5. Large employee base
Weaknesses - 1. Brand valued not as big as SBI or BOB
2. The braches are not modernized in many cities as compared to
leading banks
Opportunities - 1. Venturing into rural areas
2. Installation of more ATMs
3. Use of mobile banking, internet banking on a large scale
Threat - 1.New banking llicenses 2. Foreign players 3. Disinvestments
Competitors - 1. Bank of Maharashtra
2. Bank of Baroda
3. Central Bank of Inda
4. State Bank of Inda(SBI)
5. ICICI Bank
Services offered:
We offer syndication services to corporate engaged in infrastructure development viz.
road, port, power, telecom, logistics etc. as well as to those in the manufacturing sectors
viz. steel, cement, sugar etc.
Syndication services can be availed for:
1. long term loan
2. working capital: fund & non-fund based

3. Bridge finance
4. Acquisition Finance
5. Refinancing
The loans may be in the form INR,ECB and FCL on plain vanilla or structured basis.
During the calendar year 2010 and 2011, bank has achieved the top position in
syndication among the public sector bank as per Bloomberg.
3.12 AWARDS
2010-2011
 The bank received the winners Award in international Banking Technology Award
2010 from IBA in the best business enablement initiative category in recognition of its
achievement in Banking Technology for the year 2009.
 Mumbai North Zone of the bank received Third Prize for use of official Language
Hindi in Bank from Government of India, Ministry of Home affairs, Official
Language Department.
 The bank received the consolation prize from Maharashtra State Level Bankers
committee for commendable work done in implementation of official language in
Hindi.
2009-2010
 Best performance in western zone under the rural employment generation program
(REGP) of KVIC.
 The bank rated by the Economic times / the Nielsen company survey as most trusted
brands (MTB) 2009 as follows:- under PSU banking category – 2 nd next to SBI –
under Top Service Brands- 8th
 The Debutant – 1st time in top 100
 NDTV Profit Business Leadership Awards 2009 – best PSU Bank

 Outlook money NDTV Profit Awards 2009 – Best Education Loan Provider- Runner
up
 CIO Green information Technology Award
2008-2009
 Business World – PWC survey – Ranked No. 1 – Public Sector Bank
 Business Today – KPMG Survey –Ranked N0. 1- The Best Banks 2008.
 Dun & Bradstreet Study – Best Public Sector Bank and Overall Best Bank in the
country.
 Prestigious CIO 100 Award 2008 for the Bank Green IT initiative
2007-2008
 Second National Award excellence in leading to MSE sector for the year 2006-2007.
 Golden Jubilee Award 2007, for performance under KVIC during 2006-2007 under
Western Region, issued by Ministry of Micro , Small & Medium Enterprise,
Government of India.
2005
 Bank of India, HP win outsourcing award may 21,2005
Bank of India and Hewlett Packard on Thursday announced that the companies’ IT
outsourcing engagement has been selected the winner of the outsourcing center’s 2005
outsourcing excellence Award ‘Best First Steps’ category.

3.13 BOARD OF DIRECTORS
PERSON DESIGNATION
Shri.G. Padmanabhan Non- Executive Chairman
Shri Melwyn Rego Managing Director & CEO
Shri R A Sankara Narayanan Executive Director
Shri Neelam Damodharan Executive Director
Shri Atanu Kumar Das Executive Director
Shri Girish Chandra Murmu Govt. Nominee Director
Smt.r.Sebastian RBI Nominee Director
Ms.Veni Thapar Part time Non Official Director

Shri Harvinder Singh Officer Employee Director
Mr. Neeraj Bhatia Shareholder Director
Mr. Sanjiv Kumar Arora Shareholder Director
PROFILE OF ICICI BANK LTD

3.14 INTROUCTION
Type: Public
Traded as: BSE,NSE, NYSE
Industry: Banking, Finance services
Founded: 1994
Headquarters: Mumbai, maharastra, India.
Area served: Worldwide
Key people: Mr. K.Sharma (Chairman)
Mrs.Chanda Kocher(MD & CEO)
Products: credit cards, cousumer banking , corporate banking, finance and
isurance,investments banking,mortgage loans, private banking, wealth
management,personal loans, payment solutions.
Revenue : US$10.3billion(2016)
Operating income: US$ 3.6 billion (2016)
Profit : US $1.5 billion(2016)
Total assest : US$ 109.0 billion (2016)
Total equity: US$ 74,096(2016)

 ICICI Bank was the first private sector bank in India to offer PPF account facility at all
bank branches.
 Among the first banks to introduce account portability and also the only bank to offer
portability on two additional channels - Internet Banking and Phone Banking.
 ICICI Bank launches first Electronic Toll Collection project on NH-1. A first of its kind
project initiated by the Ministry of Road, Transport & Highways, National Highway
Authority of India (NHAI) and ICICI Bank
 ICICI Bank receives approval from RBI to set up an Infrastructure Debt Fund. It is the
first debt fund to get government's go ahead.
 ICICI Bank launches its official Facebook Page. First bank in India to offer one-of-its
kind "Your Bank Account" App, which allows access to bank account information on
Facebook
.
3.15 HISTORY:
ICICI bank (Industrial credit and investment corporation of India) is and Indian
multinational banking and financing services company headquartered in Mumbai,
Maharashtra, India, with its was the second largest bank in India in terms of assets and
third in term of market capitalization. It offers a wide range of banking products and
financial services for corporate and retail customers through a variety of delivery
channels and specialized subsidiaries in the areas of investment banking, life, non-life
insurance, venture capital and assets management. The bank has a network of 4,450
branches and 14,404 ATMs in India, and has a presence in 19 countries including India.
The bank has subsidiaries in united kingdom and Canada: branches in united states,
Singapore, Bahrain, Hong Kong, srilanka, Qatar, Oman, Dubai international finance
centre, china and south Africa, and representative offices in united Arab Emirates,
Bangladesh, Malaysia and Indonesia. The company’s UK subsidiary has also established
branches in Belgium and Germany.
ICICI shareholding in ICICI bank was refused 46percent, through a public offering of
shares in India in 1998m followed by an equity offering in the form of American
Depositary Receipts on the NYSE in 2000. ICICI bank acquired the bank of Madura

limited in an all-stock deal in 2001 and sold additional stakes to institutional investors
during 2001-2002.
In the 1990s, ICICI transformed its business from a development financial institution
offering only project finance to a diversified financial services group, offering a wide
variety of product and services, both directly and through a number of subsidiaries and
affiliates like ICICI bank. In 1999, ICICI become the first Indian company and the first
bank or financial institution from non-japan Asia to be listed on the NYSE.
In 2000, ICICI bank became the first Indian bank to list on the New York Stock Exchange
with its five million American depository shares issue generating a demand book 13 times
the offer size.
In October 2001, the Boards of Directors of ICICI and ICICI Bank approved the merger
of ICICI and two of its wholly owned retail finance subsidiaries, ICICI personal financial
services limited and ICICI capital services limited ,with ICICI Bank. The merger was
approved by shareholders of ICICI and ICICI Bank in January 2002, by the High Court of
Gujarat at Ahmadabad in March 2002 and by the High Court of Judicature at Mumbai and
the Reserve Bank of India in April 2002.
In 2008, following the 2008 financial crisis, customers rushed to ICICI ATMs and
branches in some locations due to rumors of adverse financial position of ICICI Bank.
The Reverse Bank of India issued a clarification on the financial strength of ICICI Bank
of dispel the rumors.
3.16 VISION:
To be the leading provider of financial services in India and a major global bank.
3.17 MISSION:
It will leverage the people, technology, speed and financial capital to:
 Be the banker of first choice for the customers by delivering high quality, world-class
products and services.
 Expand the frontiers of the business globally.

 Play a proactive role in the full realization of India’s potential.
 Maintain a healthy financial profile and diversify the earnings across businesses and
geographies.
 Maintain high standards of governance and ethics.
 Contribute positively to the various countries and markets in which we operate.
 Create value for the stakeholders.
3.18 INSURANCE POLICY:

At ICICI Bank, understand the customers‟ financial needs. Along with deposit and loan
products, the bank offers the facility to invest in Life Insurance, General Insurance. "Buy
Online" feature provides the customers‟ more ease and convenience of completing
transactions entirely online without move out of desk.
3.18.1 General Insurance

Secure family's health insurance against medical emergencies when traveling abroad, and
insure the vehicle and home with General Insurance policies of bank. Buy them online in
a matter of minutes - Save the time and money.
3.18.2 Life Insurance
Life Insurance Policies gives a family the promise of protection; secure the future even
when are not around to take care of them. Life insurance is a unique investment tool that
helps to meet customers’‟ dual needs - saving for life's important goals, and protecting
assets.
3.18.3 Investor Relations
ICICI Bank disseminates information on its operations and initiatives on a regular basis.
The ICICI Bank website serves as a key investor awareness facility, allowing
stakeholders to access information on ICICI Bank at their convenience. ICICI Bank's
dedicated investor relations personnel play a proactive role in disseminating information
to both analysts and investors and respond to specific queries.
3.19 PROFITABILITY GREW

Net profit rose to 19.02 billion rupees in the fiscal fourth-quarter ended March from 14.5
billion reported a year earlier. Analysts on average had expected profit of 17.3 billion
rupees, according to Thomson Reuters I/B/E/S. The bank told consolidated profit grew 15
percent to 18.1 billion rupees. Net interest income increased nearly 24 percent to 31.05
billion rupees. Other income, which includes gains from trading in bonds, equity and
currency as well as fees, rose nearly 36 percent to 22.3 billion rupees. ICICI's loans grew
17 percent to nearly $50 billion. Net interest margin, a key gauge of profitability for a
bank, rose to 3.01 percent from 2.74 percent a year ago. The bank told provisions,
including for bad loans, raised more than a fifth to 4.7 billion rupees from 3.8 billion a
year earlier, while net non-performing loans dropped to 0.73 percent of total assets from
1.11 percent. ICICI, which was hit by the 2008 financial crisis due to aggressive lending,
had been paring its unsecured retail book, especially credit cards and personal loans. It is
cautiously growing lending in the home and auto loans segment now, at a much slower
pace. ICICI is exposed to a number of troubled companies, including Kingfisher Airlines
(KING.NS) and telecom tower owner GTL, which have restructured billions of dollars of
loans in recent months. "Bank has always been saying the worries that the outside
environment talks about asset quality are much higher than the reality is," CEO Kochhar
told that they don't expect the provisioning requirement to go up substantially as a
percentage of total assets. Shares of the bank, valued by the market at $18.5 billion, rose
2.3 percent to 860.85 rupees in a flat Mumbai market.
3.20 ICICI Bank SWOT Analysis, USP & Competitors

SWOT Analysis of ICICI Bank with USP, Competition, STP (Segmentation, Targeting,
Positioning)- Marketing Analysis
ICICI
Parent company - ICICI Bank Limited
Category - Banking
Sector - Banking and Finance
Tagline/Slogan - Khayal Aapka; Hum hain na
USP - ICICI is the most efficient and tech Savvy bank in the Indian
banking industry
ICICI –STP

Segment - people who want to invest their money in the banking

Industry
Target Group - people in the high and the mid income group
Positioning - ICICI has positioned itself as the bank that is customer
Friendly and is using technology to reach its customers
ICICI SWOT Analysis
Strengths -1.ICICI bank is the front runner in Indian private banking
Sector
2. ICICI has a strong presence via its braches & 14000 + ATMs
3. High use of technology to make life simpler for the
Customers
4. Large number of facilities for the customers in terms of
Products and services.
5. Over 75,000 employees at ICICI
Weaknesses - 1. High competition means limited market share growth

For ICICI bank
2. Controversies like alleged money laundering, debt recovery
Etc hurt the brand image
Opportunities - 1. Opening more branches in the rural areas can boost ICICI’s
Business
2. use of technology to penetrate rural markets
3. Venturing into countries like Africa where the economy is
Coming up
4. ICICI bank can tap the youth by promoting their app and net
Banking
Threats - 1. Ever changing RBI policies can affect operations of ICICI
Bank
2. International and other Competitors
3. Inability to adapt to changing conditions due to large size
4. Concern on privacy of user accounts using net banking can
be threat for ICICI.
Competitors - 1. State Bank of India (SBI)
2. HDFC
3. Kotak Mahindra
4. Bank of Baroda
5. IDBI Bank
6. Punjab National Banl
7. Axis Bank
3.21 PROJECT FINANCE
Project Finance is one the key focus areas for ICICI Bank. The Project Finance Group has
institutionalized capabilities to successfully manage the unique and multidimensional
process of project finance transactions led by customized project structuring approach.
The group has been the sole lead arranger and underwriter of a significant amount of
project finance domain, the group enjoys a leadership position and is acknowledged for
its comprehensive domain expertise and knowledge in the infrastructure, manufacturing
and mining sectors, having ensured timely financial closure of several big ticket projects.
A brief overview of the major sectors covered by the group is given below;
 POWER: ICICI Bank is the Indian bank to finance large hydro-power projects and
has been the lead arranger towards funding of a number of thermal power plants being
set-up by large infrastructure developers.
 ROADS: The infrastructure sector is a priority for the Bank. The group has ensured
the Bank’s participation as lead arranger for a number of road projects and has
financed the first project for modernizing state border check posts.
 PORT/ AIRPORTS: ICICI Bank has provided assistance to a number of container &
liquid port terminals. The Bank has been credited for being a lead arranger for the first
private sector Greenfield international airport.
 MANUFACTURING & MINING: The funding requirements of large brown field
expansions and green field projects in the manufacturing sector viz. steel, aluminum,
cement, auto, and Hotels have been arranged by the group. In the mining sector, Bank
has provided financial assistance to several large conglomerates for overseas mine
acquisitions and has funded apex requirements of local miners.
 OIL & GAS: ICICI Bank is credited with being a lead arranger for one of the largest
refineries in the country and has financed the first oil securitization deal in the
country. Additionally, funding of gas pipeline projects remains a key area for bank.

3.21.1 Service offerings

PFG Provide a wide range of services including the following.
 Rupee term loans
 Foreign currency term loans
 External Commercial Borrowings
 Export Credit Agency backed ling term debt.
 Line of credit from different multilateral institutions
 Non fund based facilities like Letter of Credit, Bank Guarantee, Supplier’s Credit,
Buyer’s Credit etc.
 Subordinated debt and mezzanine financing.
3.22 AWARDS-2017
 ICICI Bank has been voted as the ‘Top Borrower in Asia – India for the fifth
consecutive year and the ‘Most Impressive Investment grade Financial Institution
from Asia’ in the online poll conducted by Finance Asia magazine in 2016.
 ICICI Bank won the ‘Best Company to Work for’ Award of Business Today magazine
in the Banking, Financial Services and Insurance sector.
 ICICI Bank was declared winner in four categories and first runner-up in one category
among ‘Large Banks’ at the IBA Banking Technology Awards 2017. The Bank won
the award for the ‘Best Technology Bank of the Year’. It also won awards in the
categories of “Best Use of Analytics for Business Outcome’, Best Use of Digital and
Channels and ‘Best Payments Initiative’,. The Bank was declared first runner-up in
the category of “Best IT Risk and Cyber Security Initiatives.
 ICICI Bank was awarded the ‘Gold category’ recognition at the Energy And
Environment Foundation Global Safety Award 2017.
 ICICI Bank won two awards at the Assest Triple A country Awards 2016.The Bank
won the Best Bond House-Domestic Award in the ‘Best House’ category and the Best
Syndicated Loan Award in the ‘Best Deal’ category respectively.

 ICICI Bank ranked first among private sector banks in India as per Brand Equity’s
‘Most Trusted Brands of 2016’ survey. Brand Equity is a supplement of the economic
times. The bank is the only private sector bank to be featured among the top 100
brands in this survey.
 ICICI Foundation won the ‘Best CSR & Sustainability Practices Award for 2016’
At the 4th Asia Business Responsibility Summit.
3.23 BOARD OF DIRECTORS

Chairman : Mr.Mahendra Kumar Sharma
Managing Director & CEO: Ms. Chandra Kochha
Executive Director & CFO: Mr. N. S. Kannan
Executive Director: Ms. Vishakha Mulye
Executive Director :Mr. Vijay Chandok
Executive Director:Mr.Anup Bagch
THEORETICAL FRAMEWORK
4.1 INTRODUCTION
What is a bank: Finance is the life blood of trade, commerce and industry. Now-a-days,
banking sector acts as the backbone of modern business. Development of any country
mainly depends upon the banking system.
The term bank is either derived from Old Italian word banca or from French word banque
both mean a bench or money exchange table. In the olden days, European money lenders
or money changers used to display coins of different countries in big heaps on benches or
tables for the purpose of lending or exchanging.
“A bank is a financial institution which deals with deposits and advance and other related
services. It receives money from those who want to save in the form of deposits and it
lends money to those who need it.
4.2 HISTORY OF INDIAN BANKING SYSTEM

The first bank in India, called The General Bank of India was established in the year
1786. The East India Company established The Bank of Bengal/Calcutta (1809), Bank of
Bombay (1840) and Bank of Madras (1843). The next bank was Bank of Hindustan
which was established in 1870. These three individual units (Bank of Calcutta, Bank of
Bombay, and Bank of Madras) were called as Presidency Banks. Allahabad Bank which
was established in 1865 was for the first time completely run by Indians. Punjab National
Bank Ltd. was set up in 1894 with head quarters at Lahore. Between 1906 and 1913,
Bank of India, Central Bank of India, Bank of Baroda, Canada Bank, Indian Bank, and
Bank of Mysore were set up. In 1921, all presidency banks were amalgamated to 22 form
the Imperial Bank of India which was run by European Shareholders. After that the
Reserve Bank of India was established in April 1935.
At the time of first phase the growth of banking sector was very slow. Between 1913 and
1948 there were approximately 1100 small banks in India. To streamline the functioning
and activities of commercial banks, the Government of India came up with the Banking
Companies Act, 1949 which was later changed to Banking Regulation Act 1949 as per
amending Act of 1965 (Act No.23 of 1965). Reserve Bank of India was vested with
Extensive powers for the supervision of banking in India as a Central Banking Authority.
After independence, Government has taken most important steps in regard of Indian
Banking Sector reforms. In 1955, the Imperial Bank of India was nationalized and was
given the name "State Bank of India", to act as the principal agent of RBI and to handle
banking transactions all over the country. It was established under State Bank of India
Act, 1955. Seven banks forming subsidiary of State Bank of India was nationalized in
1960. On 19th July, 1969, major process of nationalization was carried out. At the same
time 14 major Indian commercial banks of the country were nationalized. In 1980,
another six banks were nationalized, and thus raising the number of nationalized banks to
20. Seven more banks were nationalized with deposits over 200 Crore. Till the year 1980
approximately 80% of the banking segment in India was under government’s ownership.
On the suggestions of Narsimhan Committee, the Banking Regulation Act was amended
in 1993 and thus the gates for the new private sector banks were opened.
The following are the major steps taken by the Government of India to Regulate Banking
institutions in the country:-
1949 : Enactment of Banking Regulation Act.
1955 : Nationalization of State Bank of India.

1959 : Nationalization of SBI subsidiaries.
1961 : Insurance cover extended to deposits.
1969 : Nationalization of 14 major Banks.
1971 : Creation of credit guarantee corporation.
1975 : Creation of regional rural banks.
1980 : Nationalization of seven banks with deposits over 200 Crores.
4.3 CLASSIFICATION OF BANKING INDUSTRY IN INDIA

Indian banking industry has been divided into two parts, organized and unorganized
sectors. The organized sector consists of Reserve Bank of India, Commercial Banks and
Co-operative Banks, and Specialized Financial Institutions (IDBI, ICICI, IFC etc). The 28
unorganized sectors, which is not homogeneous, is largely made up of money lenders and
indigenous bankers.
An outline of the Indian Banking structure may be presented as follows:-
1. Reserve banks of India.
2. Indian Scheduled Commercial Banks.
a) State Bank of India and its associate banks.
b) Twenty nationalized banks.
c) Regional rural banks.
d) Other scheduled commercial banks.
3. Foreign Banks
4. Non-scheduled banks.
5. Co-operative banks.
4.4 CHARACTERISTICES/FEATURES OF BANK

Dealing in money
Bank is financial institution which deals with other peoples money I,e. money given by
depositors.
Individual/ Firm/ Company
A bank may be a person, firm or company. A banking company means a company which
is in business of banking.
Acceptance of Deposit
A bank accepts money from the people in the form of deposits which are usually
repayable on demand or after the expiry of a fixed period. It gives safety to the deposits of
its customers. It also acts a custodian of funds of its customers.
Giving Advance
A bank lends out money in the form of loans to those who require it for different
purposes.
Payment and Withdrawal A bank provides easy payment and withdrawal facility to its
customers in the form of cheques and drafts; it also brings bank money in circulation.
This money is in the form of cheques, draft, etc.
Agency and Utility Services
A bank provides various banking facilities to its customers. They include general utility
services and agency services.
Profit and Service Orientation
A bank is a profit seeking institution having service oriented approach.
Ever increasing Functions
Banking is an evolutionary concept. There is continuous expansion and diversification as
regards the functions, services and activities of a bank.
Connecting Link
A bank acts as a connecting link between borrowers and lenders of money. Bank collect
money from those who have surplus money and give the same to those who are in need of
money.
Banking Business
A banks main activity should be to do business of banking which should not be subsidiary
to any other business.
Name Identity
A bank should always add the word “bank” to its name to enable people to know that it is
a bank and that it is dealing in money.
4.5 DIFFERENT TYPES OF SERVICES

A bank job is to provide customers with financial services that help people better manage
their lives. As technology advance and competition increases, banks are offering different
type of services to stay current and attract customers.
Whether you are opening your first bank account or have managed a checking account for
years, it helps to know the different types banking services available. This ensures you get
the most out of your current financial institution. Deciding which services are most
important can lead you to the bank that best fits your needs.
Individual Banking- Banks typically offer a variety of services to assist individuals in

managing their finance, including:
 Checking accounts
 Saving accounts
 Debit & credits cards
 Insurance
 Wealth management
Business Banking- Most banks offer financial services for business owners who need to
differentiate professional and personal finances. Different type of business banking
services includes:
 Business loan
 Checking accounts
 Saving accounts
 Debit and Credit cards
 Merchant services (credit card processing, reconciliation and reporting, check
collection)
 Cash management (payroll services, deposit services, etc)

Digital Banking- The ability to manage your finances online from your computer, tablet,
or Smartphone is becoming more and more important to consumers. Banks will typically
offer digital banking services that include;
 Online, mobile, and tablet banking
 Mobile check deposit
 Text alerts
 E-statement
 Online bill pay
Loans- Loan are a common banking service offered, and they come in all shapes and
sizes. Some common types loans that banks provides include:
 Personal loans
 Home equity loans
 Home equity lines of credit
 Home loans
 Business loans
 Secured loan
 Un-secured loan
 Mortgage loan
 Investment loan
 Computer loan
 Auto loan
 Education loan
4.6 HOME LOAN SCHEMES

1. Pradhan mantra Yojana- There is a very good news for the home seekers, central
government has announced even more subsidy home loan interest rates under Pradhan
Mantri Awas Yojana. Prime Minister Narendra Modi announced the interest subsidy on
housing loans taken under Pradhan Mantri Awas Yojana during his speech to the nation on
31st December 2016.

The amount of home under the scheme has been increased by double to 12 lakh and the
interest subsidy would now be up to 4%. Below is the interest subsidy comparison of
earlier PMAY scheme and revised scheme.
Interest Rates and Subsidy
Interest Rate 10.5% 8.5%
Loan amount Up to Rs.12 Lakh Rs. 9 Lakh or More
Amount Eligible for Rs. 6 Lakh Rs. 9 Lakh

Subsidy
Subsidy Rate 6.5% 4%
Subsidy Amount 2.2 Lakh 2.35 Lakh
The increased loan amount under the PMAM will significantly reduce the monthly
installments. The central government instead of 6.5% subsidy on loans up to Rs. 6 Lakh,
now providing 4% subsidy on loans up to Rs. 9 Lakh and 3% for home loans up to Rs.12
Lakh. The loans under PMAY be can availed for a maximum tenure of 20 years(earlier
2015).
2. Credit Linked Subsidy Scheme for Middle Income Groups

The Narendra Modi governemt’s credit-linked interest subsidy scheme for housing loans
taken by people in md-income groups has been made effective from 1 january under
which EMIs will go down by over Rs. 2,000 per month.
Prime Minister Narendra Modi has on 31 December last year announced the credit linked
subsidy scheme for middle income group. Under the scheme, an interest subsidy of 4% on
housing loans of up to Rs. 9 Lakh for those with an income of Rs. 12 lakh per year and of
3% on housing loans of up to 12 Lakh for those having an income of Rs. 18 Lakh per year
will be given.

At an event where ‘Operational Guidelines for CLSS(MIG)’ were released, National

Housing Bank MD and CEO sriram kalyanaraman said EMIs for middle income group
beneficiaries under the scheme will come down by over Rs. 2,000 per month. The interest
subsidy of 4% under the scheme will bring down EMI by Rs. 2,062 per month on a
housing loan of Rs. 9 Lakh and interest subsidy of 3% will reduce the monthly outgo by
Rs 2,019 on Rs 12 lakh loan, considering normal housing loan interest rate of 8.65% , he
said. Middle income groups with annual incomes above Rs. 6 Lakh and up to Rs.18
Lakhs per year are eligible for interest subsidy on housing loans under the new
CLSS(MIG).
4.7 HOME LOAN

Home loans, also known as mortgages, use the borrower’s home for collateral. This home
can be a single-family house up to four-unit property, as well s a condominium or
cooperative unit. Lenders fund home loans, but both the lenders themselves and brokers
who act on behalf of the lenders originate, or process, them.
4.7.1 HISTORY
Home loan came into widespread use in the United States in the boom years of the late
1800s. Since the average person usually cannot afford to pay cash for something as
expensive as a home, lenders began offering loans for the difference between the
purchase price of a home and the cash down payment supplied by the buyers. These loans
were interest-only loans of between five and 1 years that were due in full at the end of the
loans term. Home owners would refinance the loan at the end of each term or save up
enough cash to pay off the loan in the meantime. The Great Depression and its resulting
foreclosures demanded a move to the modern amortized mortgage, which configures

payments into both principal and interest portions. These 15-30 year loan pay off the
home by the end of the loan term.
4.7.2 SIGNIFICANCE
Without home loans, most Americans could not afford buy a home. The housing sector
and related industries are a large share of the U.S. gross domestic product (GDP).
According to the National Association of Home Builders, the housing industry as a whole
contributes about 17 percent to 18 largely responsible for the strong economic state of the
U.S. throughout the early to mid-2000s and disguised an essentially weak economy,
according to an article by MSN Money’s Bill Fleckenstein.
4.7.3 FUNCTION
The most common purpose of a home loan is to provide the funds a buyer need to
purchase a home. Home equity loans allow a homeowner to borrow against the difference
the home’s value and the current loan balance, or equity. Investor loans permit buyers to
purchase home as rental properties or to fix up and sell at a profit.
4.7.4 TYPES
The two most widely used types of hoe loans are fixed-rate loans and adjustable-rate
loans. A Fixed-rate loan keeps the same interest rate for the life of the loan, which means
that the principal and interest portions of the monthly payment stay the same. Adjustable-
rate mortgage begin with a lower interest rate for the first few years and then adjust to
market rates after the initial period is over. Caps are placed on how much the rate can
adjust at any one time, as well as on how much the rate can increase over the life of the
loan. This means the principal and interest portions of the monthly payment change
repeatedly through the life of the loan.
4.7.5 EFFECTS
Because home loans are a large share of the financial situation of the majority of
Americans, taking the time to determine the right type of loan and to investigate terms is
essential for any home buyer or owner. Federal law promotes the consumer’s ability to
shop for the best loan by requiring lenders to give prospective borrowers good Faith

Estimates and Truth In Lending (TIL) statements that disclose and itemize the terms and
costs associated with a loan.
4.7.6 ADVANTAGES & DIS-ADVANTAGES

ADVANTAGES
Loans are advantageous for people because they offer:
 Flexibility: The loans after getting approved can be used for any purpose. The loans are
mush flexible if taken from friends or relatives.
 Quick and Fast: The loans generally take an hour to approve or disapprove. If your loan
amount is sanctioned then you will receive the amount within few hours.
 Live savers: These loans make you out from critical situations and you can easily get
money during emergency, if you have the guarantee equal or more to the amount you
borrow.
DIS-ADVANTAGES
 The loan is a long term debt. It means that you have to pay monthly installments. You
have to cut out salary or savings and pay the loan. Failing to pay the loan amount on time
can cause harm to your assured assets.
 You can face trouble if you miss the installment of loan by paying the penalties and might
have to undergo with some legal issues. Most of your assets coming under loan guarantee
can be seized.
 Most of the times, it happens that you are not allowed to pay complete payment at one go,
even if you have it. In this case you unnecessary pay the interest to the lender for long
term.
 The rate of interest is quite high on the principle amount and it cannot be borrowed by
everyone.

5.1.1 PROCEDURE FOR TAKING HOME LOAN IN BANK OF

INIDA
Eligible – borrowers
 Permanent salaried employment
 Professionals like Doctors, Lawyers, Engineers, and Chartered Accountants etc.
 Self – employed persons having regular income
 Having any other regular source of income.
 Minimum Age -21 years.
 Maximum age – For a home loan borrower is fixed at 70 years i.e the age by
which the loan should be fully repaid.
Step 1: Application form

The first step involved in applying for home loan is the procurement of application form
from the BOI of applicant’s choice. In this application form necessary documents like

i. Signed application form with photograph.

ii. ID and residence proof.
iii. Processing fee 0.25% of loan amount.
iv. Last 6 months bank statements
v. Documentation for salaried applicants:
 Latest Annual Salary Certificate (Form 16).
 Monthly salary slips from employer showing name.
 Designation, details of deductions from salary and copies of income tax return for
last 3 years.
vi. Documentation for self-employed applicants:
 Education qualification certificate & proof of business existence.
 Last 3 years Income Tax Returns with computation of Income.
 Last 3 years CA Certified/Audited Balance Sheet and Profit & Loss Account.
Step -2: Personal Discussion

After successfully filling the application form and submitting it to the authority the next
step is face to face with bank. The bank first evaluates the papers submitted and summons
the applicant for the personal discussion regarding the home loan applied for.
Step -3: Bank Field Investigation
The next step is the field investigation done by the BOI. They send representatives to the
existing residence of the applicants or their offices for the validation of the documents
submitted. This is the essential part for the bank to establish the trust with the applicants.
Step 4: Credit appraisal by the bank and loan sanction

This is the make or break stage of the process. The bank will establishes repayment
capacity based on applicant’s income, age, qualification, employer, nature of business etc.
to access credential. The bank can refuse loan application if any discrepancy is found at
this stage. But if everything goes according to the conditions negotiated by the parties
then the bank sanction the loan that may e unconditional or with some conditions levied.

Repayment
S.no Particulars Repayment Approving/Sanctioning
Periods Authority
1 For new construction/ Normal Repayment Normal sanctioning
New purchase from Period-30 years Authority
builder
2 For New Construction/ 30 years Normal sanctioning
New purchase in case of authority
projects approved by the
bank
3 For 2nd purchase 25 years Normal sanctioning
Authority
4 For repair/ renovation/ 20 year Normal sanctioning
Addition/ Alteration Authority
Step 5: submission of legal documents & legal check

The bank now asks for the legal documents of the property involved for applying home
loan. All the legal documents of the property involved have to be submitted. The
documents remain with the bank until the repayment of the Home loan.
Step 6: Technical / Valuation check

The bank goes about the technical valuation of the property. The experts of the bank visit
the site to be purchased and value it as per the existing rules and regulations. The
valuation of the property is the most important aspect that the bank considers before
financing any property.
Step 7: Registration of property documents

After the legal and technical valuation of the property the draft documents has to be
cleared by the lawyer and stamping and registration of the documents is needed.
Step 8: Signing of agreements and submitting post-dated cheques

Now it is time of singing the final agreement of the home loan. After the signing of the
agreement a bunch of post dated cheques are to be submitted s agreed on the agreement.
Step 9: Disbursement
It is time for the final disbursement of the home loan. After the bank ensures financing the
property is involves no risk they pay the final amount that is agreed upon. The mode of
payment varies from full to part payment. In the case of under construction property the
mode is part payment and in the case of ready possession properties disbursement is full
and final.
5.1.2 PROCEDURE FOR TAKING HOME LOAN IN ICICI

Eligible – borrowers
 Permanent salaried employment.
 Home loan account number is mandatory.
 Self – employed persons having regular income.
 Customer must be at least 25 years of age on sanction of the loan.
 The loan must terminate before or at 65 years of age or age of retirement,
whichever is earlier.
 If spouse is an earning member, customer can make him/her the co-applicant.
Their income will be considered to enhance the eligibility.
 In case of co-owners, they must necessarily be co-applicants.
Step 1: Application form

The first step involved in applying for home loan is the procurement of application form
from the ICICI of applicant’s choice. In this application form necessary document are

i. Application form with photograph duly signed.

ii. Identity residence and age proof.
iii. Last 6 months bank statement.
iv. Last 3 months salary-slips.
v. Processing fee applicable is 0.5% of loan amount.
vi. Form 16/ Income Tax Return
vii. Self employed non profession.
 Proof of business existence.
 Business profile.
 Education qualification certificate and proof of business existence.
 Last 3 year CA certified / Audited Balance sheet and profit & loss account.
viii. For salaried employee.
 Proof of Identity: passport/ Driving license/ voters ID/ PAN Card.
 Proof of Residence: Leave and license Agreement / Utility Bill (not more than 3
month old)/ passport.
 Latest 3 month Bank Statement (where salary/ income s credited).
Step 2: Personal Discussion

After filling the application form and submitting it to the authority the next step is face to
face with ICICI bank. The bank first evaluates the papers submitted and summons the
applicant for the personal discussion regarding the home loan applied for.
Step 3: Bank Field Investigation

The next is the field investigation done by the ICICI bank. They send representatives to
the existing residence of the applicants or their offices for the validation of the documents
submitted. This is the essential part for the bank to establish the trust with the applicants.
Step 4: Credit appraisal by the bank and loan sanction

This is the make or break stage of the process. The bank will establishes repayment
capacity based on applicant’s income, age, qualifications, employer, nature of business
etc. to access credential. The can refuse loan application if any discrepancy is found at

this stage. But if everything goes according to the conditions negotiated by the parties
then the bank sanction the loan that may be unconditional or with some conditions levied.
Repayment
Tenure of loan 3 to 25 years
Step 5: Offer Letter

After the sanction of the Home Loan, the applicant gets offer letter from the bank with
the following details.
Loan amount, Rate of Interest, Tenure of the loan, Mode of repayment, General terms and
conditions of the loan, Special conditions etc. if the terms and condition are agreed the
applicant has to sign the duplicate copy of the offer letter and that is to be submitted to the
bank.
Step 6: Submission of legal documents & legal check

The bank now asks for the legal document of the property involved for applying home
loan. All the legal documents of the property involved have to be submitted. The bank
does all the legal checks on the property. The documents remain with the bank until the
repayment of the Home loan.
Step 7: technical / Valuation check
The Bank go about to technical valuation of the property. The experts of the bank visit the
site to be purchased and value it as per the existing rules and regulations. The valuation of
the property is the most important aspect that the bank considers before financing any
property.
Step 8: Registration of property documents

After the legal and technical valuation of the property the draft documents have to be
cleared by the lawyer and stamping and registration f the documents is needed.
Step9: Signing of agreements and submitting post-dated cheques

Now it is time of signing the final agreement of the home loan. After the signing of the
agreement a bunch of post dated cheques are to be submitted as agreed on the agreement.

Step 10: Disbursement

It is time for the final Disbursement of the Home loan. The bank ensures financing the
property is involves no risk they pay the final amount that is agreed upon. The mode of
payment varies from full to part payment. In the case of under condition property the
mode is part payment and in the case of ready possession properties disbursement is full
and final.
Interpretation
The comparative study of procedure for home loan between BOI and ICICI bank. The
study prevailing tenure of home loan and processing fee and age, repayment options and
features. From the study we can identify that, maximum age for availing home loan is
higher in BOI that is 70 years then ICICI bank which is only 65 years. The processing fee
is less in BOI when compared to ICICI, tenure of repayment loan in BOI is 30 years
while in ICICI is 25 years, documentations for applying home loan those are less in BOI
when compared to ICICI bank.
5.2TYPES OF HOME LOAN

5.2.1 Types of home loans offered by BOI
i. Purchasing a new house or existing house.
ii. For home construction.
iii. To extend/ repair existing house.
iv. Land purchase loans.
v. Purchase a plot of land.
vi. Home Loan to NRI.
5.2.2 Types of home loans offered by ICICI bank

i. To purchase a new home or existing home.
ii. For home construction.
iii. To extension purpose.

iv. Home loan to NRI (Non Resident India).
Interpretation
From the above analysis we can says that BOI is offering more number of home loans
comparatively than ICICI bank, and also we say that BOI is offering loans for purchase
of plots & lands.
5.3 INTEREST RATES OF BOI AND ICICI BANK
Table no 5.3.1: Floating Interest Rates
Year Bank of India ICICI Bank

2014 10.10% -9.80% 10.50% - 10.25%
2015 9.05% - 8.90% 9.80% - 9.50%
2016 8.70% - 8.60% 9.50% - 8.80%
2017 8.60% - 8.40% 8.80 % - 8.60%
Source - Data collected from BOI and ICICI bank.

INTERE
RATES
ST
YEAR
Figure 5.3.1 Bank of India floating Interest Rates

INTEREST Comparative study of home loan between BOI and ICICI bank
RATES
YEARS
Figure 5.3.2 ICICI bank floating Interest Rates
Interpretation
As shown in the Table No 5.3.1 it is interpreted that there is a high variation of floating
rates for BOI in the year 2014 i.e; , 0.30% & while the ICICI bank is having a high
variation of floating rates in the year 2016 i.e; 0.70%.
From the analysis it is clear that floating rates are more fluctuated in ICICI bank when
compared to BOI and we can say that interest rates are decreasing year wise in both the
banks.
5.4NUMBER OF SANCTIONED HOME LOAN ACCOUNTS

5.4.1 Number of sanctioned home loans accounts in BOI & ICICI bank in the year
-2014
Table No 5.4.1 number of sanctioned home loans in BOI & ICICI bank
S. no Borrower’s No. of Percentage No. of Percentage
sanctioned sanctioned
loans in loans in
BOI ICICI bank
1 Government 2 33.3% 10 100%

employee
2 Business 1 16.7% - -
3 Agriculture 3 50% - -
Total 6 10
Figure 5.4.1 number of sanctioned home loans in BOI

Figure 5.4.2 number of sanctioned home loans in ICICI bank.
Interpretation
As shown in the Table No 5.4.1 it is found that 33.3% of Government employee and
16.7% of business peoples and 50% Agriculture peoples have taken home loans from
BOI.100% of Government employee peoples who have taken home loans from ICICI
bank.
It is interpreted that Business and Agricultural peoples are more in BOI when compared
to ICICI bank, but in ICICI Government employees are more when compared to BOI.
5.4.2 Number of sanctioned home loans accounts in BOI & ICICI bank in the year
-2015

S no Borrower’s No. of Percentage No. of Percentage
loans in loans in
BOI ICICI bank
1 Government 1 20% 15 100%
employee
2 Business 1 20% - -
Total 5 15
Figure 5.4.3 number of sanctioned home loans in BOI.

Figure 5.3.4 number of sanctioned home loans in ICICI.
Interpretation
As shown in the Table No 5.4.2 it found that 20% of Government employee and
20% of business and 60% Agriculture peoples who have taken home loans from
BOI. 100% of Government employee peoples who have taken home loans from
ICICI bank.
It interpreted that Business and Agriculture peoples are more in BOI when
compared to ICICI bank, but in ICICI Government employees are more when
compared to BOI.
5.4.3 Number of sanctioned home loans accounts in BOI & ICICI bank
in the year -2016

S.no Borrower’s No. of Percentage No. of Percentage

loans in loans in ICICI
BOI bank
1 Government 2 15.4% 18 90%
employee
2 Business 8 61.6% 2 20%
Total 13 20

Source - Data collected from BOI & ICICI bank.
Figure 5.4.5 number of sanctioned home loans in BOI.
Source - Data collected from BOI & ICICI bank.

Interpretation
As the in the table no 5.4.3 it is found that 15.4% of government employee peoples,
61.6% of business peoples, 23% of Agriculture peoples have taken home loans from
BOI.90% of Government employee peoples, 10% business peoples who have taken loans
from ICICI bank.
It is interpreted that Agricultural peoples and business peoples are more in BOI when
compared to ICICI bank, but in ICICI Government employee are more when compared to
BOI.
5.4.4 Number of sanctioned home loans accounts in BOI & ICICI bank
in the year 2017 (up to April 30)
Table No: 5.4.4 number of sanctioned home loans in BOI & ICICI bank
S.no B No. of Percentage No. of Percentage
orrower’s sanctioned sanctioned
loans in loans in ICICI
BOI bank
1 Government 1 33.33% 9 90%
employee
2 Business 2 66.66% - -
3 Agriculture - - - -
4 NRI - - 1 10%
Total 3 10

Figure 5.3.7 number of sanctioned home loans in BOI

Interpretation
As shown in the table no 5.4.4 it is found that 33.3% of Government employee peoples
and 66.6% of Business peoples have taken home loan from BOI. 90% of Government
employee peoples and 10% of NRI (non – resident india) peoples who have taken loans
from ICICI bank.
It is interpreted that business peoples are more in BOI when compared to ICICI bank, but
in ICICI Government employee and NRI peoples are more when compared to BOI.
5.4.5 YEAR WISE SANCTIONED HOME LOAN ACCOUNTS OF BOI & ICICI
BANK
Table No 5.4.5 Year wise sanctioned home loan accounts of BOI & ICICI bank
Year ICICI Bank BOI
2014 10 6
2015 15 5
2016 20 13
2017 10 3
Total 55 27

YEARS
Figure 5.4.9 Year wise sanctioned home loans in BOI & ICICI bank.
Ho:
t-Test: Two-Sample Assuming Equal Variances

Sample size t=0.0.5
6 10
Mean 7 15
Variance 28 25
Observations 3 3
Pooled Variance 26.5
Hypothesized Mean Difference 0
Df 4
t Stat -1.90332
P(T<=t) one-tail 0.06487
t Critical one-tail 2.131847
P(T<=t) two-tail 0.129741
t Critical two-tail 2.776445
There is no significance difference between sanctioning of home loan account by BOI
&ICICI bank.
H1: There is significance difference between sanctioning of home loan account by BOI &
ICICI bank.
Here Ho accepted because t=2.1318,

T=2.776 here t<T.
Interpretation
As shown in the table no 5.4.5 it found that there is no significance difference between
sanctioning of home loan account by BOI & ICICI bank.
5.5 COMPARATIVE ANALYSIS OF HOME LOAN OF BOI & ICICI

Table No 5.5.1 comparative analysis of home loan of BOI & ICICI bank.

S.No Particulars BOI ICICI
2 Processing fee 0.25% 0.50%
1 Age minimum 18 years Minimum 25 years
3 Interest rate 8.60% -8.40% 8.80 %- 8.60%

(2017)
4 Eligibility of 75% - 85% of the cost of 65% - 75% of the cost of
loan amount property property
5 Quantum loan 5lacs to 5crores 5 lacs to 3 crores
( dependence upon area)
6 Repayment Repayment max 30 years max 25 years or 65 years of
and up to 70 years also age
allowed to salaried
employed having
retirement income
7 Guarantor Guarantor is required Not required ( dependence
of case)

8 People eligible Salaried employees, Salaried employees,

for taking professional & self – professional & self
loans employed, agriculture, employed, partnership,
partnership firm, NRI. NRI.
9 Types of home More Less
loan
Interpretation
As shown in Table No 5.5.1 comparative analysis of home loan with BOI & ICICI bank.
Here found that BOI better is than ICICC Bank in term of Age, processing fee, interest
rate, eligibility of loan amount, Quantum loan, repayment, Guarantor, eligibility for
taking home loans, type of home loans.

6.1 FINDINGS
1. The comparative study of procedure for home loan between BOI and ICICI bank.
The study prevailing tenure of home loan and processing fee and age, repayment
options and features. From the study we can identify that, maximum age for
availing home loan is higher in BOI that is 70 years then ICICI bank which is only
65 years. The processing fee is less in BOI when compared to ICICI, tenure of
repayment loan in BOI is 30 years while in wa ICICI is 25 years, documentations
for applying home loan those are less in BOI when compared to ICICI bank.
2. From the above analysis we can says that BOI is offering more number of home
loans comparatively than ICICI bank, and also we say that BOI is offering loans
for purchase of plots & lands.
3. As shown in the table no 5.3.1 it is interpreted that there is a high variation of
floating rates for BOI in the year 2014 i.e; , 0.30% & while the ICICI bank is
having a high variation of floating rates in the year 2016 i.e; 0.70%. From the
analysis it is clear that floating rates are more fluctuated in ICICI bank when
compared to BOI and we can say that interest rates are decreasing year wise in
both the banks.
4. As shown in the table no 5.4.1 it is found that 33.3% of Government employee
and 16.7% of business peoples and 50% Agriculture peoples have taken home
loans from BOI.100% of Government employee peoples who have taken home
loans from ICICI bank. It is interpreted that Business and Agricultural peoples are

more in BOI when compared to ICICI bank, but in ICICI Government employees
are more when compared to BOI.
5. As shown in the Table No 5.4.2 it found that 20% of Government employee and
20% of business and 60% Agriculture peoples who have taken home loans from
BOI. 100% of Government employee peoples who have taken home loans from
ICICI bank. It interpreted that Business and Agriculture peoples are more in BOI
when compared to ICICI bank, but in ICICI Government employees are more
when compared to BOI.
6. As the in the table no 5.4.3 it is found that 15.4% of government employee

peoples, 61.6% of business peoples, 23% of Agriculture peoples have taken home
loans from BOI.90% of Government employee peoples, 10% business peoples
who have taken loans from ICICI bank. It is interpreted that Agricultural peoples
and business peoples are more in BOI when compared to ICICI bank, but in ICICI
Government employee are more when compared to BOI.
7. As shown in the table no 5.4.4 it is found that 33.3% of Government employee
peoples and 66.6% of Business peoples have taken home loan from BOI. 90% of
Government employee peoples and 10% of NRI (non – resident india) peoples
who have taken loans from ICICI bank. It is interpreted that business peoples are
more in BOI when compared to ICICI bank, but in ICICI Government employee
and NRI peoples are more when compared to BOI.
8. As shown in the table no 5.4.5 it found that there is no significance difference
between sanctioning of home loan account by BOI & ICICI bank.
9. As shown in Table No 5.5.1 comparative analysis of home loan with BOI & ICICI
bank. Here found that BOI better is than ICICC Bank in term of Age, processing
fee, interest rate, eligibility of loan amount, Quantum loan, repayment, Guarantor,
eligibility for taking home loans, type of home loans.

6.2 SUGGESTIONS
1. If ICICI bank give home loan to agriculture people then people may take loan
from ICICI bank, and may increase the home loan borrowers.
2. Rate of interest should be competitive with other financial institutions.
3. Any change in the policies must be intimated to all the customers time to time.
4. People who deal customers should have complete knowledge about the housing
finance industry.
5. The BOI can increase its branches in the rural Area, because it has more number
of loan borrowers from Agricultural Area.
6. In ICICI bank interest rates are more fluctuating, so people may not attract to
bank. It is better to maintain stable rate.
7. It is better to extend the tenure period of loan repayment in ICICI bank.

6.3 CONCLUSION
 The demand for Home loan have been increasing in India due to the requirements
of residential accommodation. A large amount of Indian population is availing the
home loan facility which is offered by the public and private banks. Home loans
benefit the buyer not only in terms of gaining an asset but also in terms that it’s a
good instrument of saving and for employed ones it turns out to be source of tax
benefit also. The Indian housing finance market cannot be looked at independently
of the government’s role in the overall financial sector, which is nowadays
characterized by a process of liberalization.
 This study concludes that agriculture and business peoples are more preferring to
BOI more than ICICI bank for home loans, but government employees prefer to
ICICI bank more than BOI.
 Though there are number of private banks are existed in India still the old people
refer the Government banks only. It is a psychological factor which has to be
changed by the private bank through the strategical plans by attract & offering
various home loans.

BIBLIOGRAPY
 Priyanka saroha, S.K.S. Yadav (2013) ; An Analyticcal study of housing finance in
india with special reference to HDFC and LIC Housing Finance Ltd, lokavishkar
international E- Journal, UP, India.
 Sumit Agarwal , Souphala Chomsisiengphet and John C. Driscoll (November
2003-2004); Loan Commitments and Private Firms, Washington .
 Utkarsh Gupta, Dr. Richa Sinha ( February 2015); A Comparative Study on
Factors Affecting Consumer’s buying Behavior towards Home Loans, e-ISSN,
Allahabad, Uttar Pradesh, India.
 Mahabir Singh Narwal, Sushma Rani, Radhika ; Customer preferences for home
loan, Associate professor, Department of Commerce, Kuruksherta University,
India.
 DR. Shiv Kumar Garg and DR. Gajaendra Kumar ; Housing Finance in India: A
comparative study of Public and Private Sector Bank, D.N. College, Meerut, UP.
 Inderbir Kaur (may-june 2013) ; Comparative Study of Housing Loan of HDFC &
ICICI bank, Assistant professor, G.S.S.D.G.S Khaisa college, Patiala.
 Pankaj Chadha and Vanitha Chawla ( july-2012); Comparative analysis of Indian
Housing Finance Companies Based on Corporate Governance disclosures, New
Delhi.


Project Keca

Încărcat de

Informații document

Titlu original

Drepturi de autor

Formate disponibile

Partajați acest document

Partajați sau inserați document

Opțiuni de partajare

Vi se pare util acest document?

Este necorespunzător acest conținut?

Drepturi de autor:

Formate disponibile

Project Keca

Încărcat de

Drepturi de autor:

Formate disponibile

Comparative study of home loan between BOI and ICICI bank

Department of Business Management 1

The housing shortage is increasing day by day as a proportion to the

Department of Business Management 2

key role in the urban housing revolution is rather conspicuous by its

Department of Business Management 3

1.2 NEED OF THE STUDY

Department of Business Management 4

1.4 SCOPE OF THE STUDY

1.5 RESEARCH METHOLOGY

Primary data:-There is no primary data used in this project.

Department of Business Management 5

1.6 TOOLS AND TECHNIQUES

 The data is restricted to only for 2 banks BOI and ICICI.

 Data is limited to 3 years.

 The is limited to armoor location.

Department of Business Management 6

1.Dr. Shiv Kumar Garg and Dr. Gajendra Kumar

2. Yoko Moriizumi in 1999

Department of Business Management 7

3. Tullio Jappelli and Maria Con cetta Chiuri march 2001

4. Faik koray and Eric T.Hillebrand 2003

5. Alok Thankur HPIMS, SHIMA 2006.

Department of Business Management 8

6. Micharl Lacour –little, 18 may 2007

7. Micharl lacour-little , August 2007

8. Marsha courchane, 1 November 2007

9. Irina paley and chau , 10 December 2007

Department of Business Management 10

10. GovindaRao, (2011) says that Mortgage financing markets play

Department of Business Management 11

13. “ Inderbir Kour” Assistant Professor(may- june 2013)

14. pankaj Chadha and Vanitha Chawla (july 2013)

The research studied on "comparative analysis of Indian housing finance companies

Department of Business Management 12

15. Priyanka Saroha, “S.K.S Yadar (july-aug-sep 2013)

16. Utkarsh Gupta, Dr.Richa Sinha (feb 2015)

Department of Business Management 13

17. Mahabir Singh Narwal, Sushma Rani, Radhika

Department of Business Management 14

BANKING SYSTEM IN INDIA

Department of Business Management 15

3.2 NEED OF THE BANKS

3.3 HISTORY OF INDIAN BANKING SYSTEM

Department of Business Management 16

Department of Business Management 17

.3.4 CLASSIFICATION OF BANKING INDUSTRY IN INDIA

3.4.1 RESERVE BANK OF BANK

RBI is governed by a central board (headed by a governor) appointed by the central

Department of Business Management 18

Regulator-Supervisor of the financial system: RBI prescribes broad parameters of

.Controller of Credit: RBI performs the following tasks:

3.4.2 INDIAN SCHEDULED COMMERCIAL BANK

Department of Business Management 20

1. Providing refinance to lending institutions in rural areas

3.4.4 CO-OPERATIVE BANK

1. Primary Credit Societies

3.5 SERVICES PROVIDED BY BANKING ORGANIZATIONS

Department of Business Management 22

from large global banks to regional and community banks.

3.5.1 The future of banking:

Department of Business Management 23

3.5.2 Banking is a Rapidly Changing Industry