EXECUTIVE SUMMARY

Their should be comparison between two biggest bank of HSBC and Housing
Dovlopment Financial Corporation (HDFC) on home loan provided by them.

Today home loan is necessity for fulfil the requirement of family and provide good
infrastructure and improvement of home. Everyone wants to make best house
butkin present scenario these are so costly so they move towards to various banks
both public as well as private bank for loan.

Issues:

Here the issues are-The Finance Ministry is also promoting the sector. In media
reports, the Finance ministry urged bankers to adopt a flexible approach to extending
home loan to customers.

In another attempt to make things easier, the Indian Banks’ Association (IBA) set up
a working group to study how home loans can become a lucrative business. The
recommendations of the group were taken into account and the banks revised their
norms.

The RBI has taken measures to encourage the students to borrow and to facilitate
the growth of the sector. The central bank cut down the risk weight age on home
loans. . This has been done to make it easier for potential loan applicants to get
loans.
 Contents

1. Introduction to the Industry

2. Introduction to the organization
3. Area of Research
4. Research Methodology
• Title of the Study
• Duration of the Project
• Objective of the study
• Type of the Research
• Sample Size and Method of selecting Samples
• Scope of the Study
• Limitation of the Study
5. Facts and Findings
6. Analysis and Interpretation
7. SWOT
8. Conclusion
9. Recommendations and suggestions
10. Appendix
11. Bibliography
 INTRODUCTION OF BANKING INDUSTRY

ABOUT BANKING:-

Section 5(b) of the Banking Regulation Act, 1949 defines banking as ‘the
accepting, for the purpose of lending or investment, of deposits of money
from the public, repayable on demand or otherwise, and withdrawal by cheque,
draft, order or otherwise.”

Section 5(c) of the Banking Regulation Act, 1949 defines a banking company’ as
“any company which transacts the business of banking in India”.

A bank is licensed by a government. Its primary activity is to lend money. Many

other financial activities were allowed over time. For example banks are important
players in financial markets and offer financial services such as investment funds. In
some countries such as Germany, banks have historically owned major stakes in
industrial corporations while in other countries such as the United States banks are
prohibited from owning non-financial companies. In Japan, banks are usually the
nexus of a cross-share holding entity known as the zaibatsu. In France,
bancassurance is prevalent, as most banks offer insurance services (and now real
estate services) to their clients.

The level of government regulation of the banking industry varies widely, with
counties such as Iceland, the United Kingdom and the United States having
relatively light regulation of the banking sector, and countries such as China having
relatively heavier regulation (including stricter regulations regarding the level of
reserves).
 Origin of the word

Silver drachm coin from Trapezus, 4th century BC

The name bank derives from the Italian word banco "desk/bench", used during the
Renaissance by Florentine bankers, who used to make their transactions above a
desk covered by a green tablecloth. However, there are traces of banking activity
even in ancient times.

In fact, the word traces its origins back to the Ancient Roman Empire, where
moneylenders would set up their stalls in the middle of enclosed courtyards called
macella on a long bench called a bancu, from which the words banco and bank are
derived. As a moneychanger, the merchant at the bancu did not so much invest
money as merely convert the foreign currency into the only legal tender in Rome—
that of the Imperial Mint.

The earliest evidence of money-changing activity is depicted on a silver drachm coin

from ancient hellenic colony Trapezus on the Black Sea, modern Trabzon, c. 350-
325 BC, presented in the British Museum in London. The coin shows a banker's
table (trapeza) laden with coins, a pun on the name of the city.
In fact, even today in Modern Greek the word Trapeza (Τράπεζα) means both a table
and a bank.

Banking in short may be defined as:-

The borrowing, raising or taking up of money, the lending or advancing of money

either with or without security;
Acting as agents for any government or local authority or any other person or
persons.
Contracting for public and private loans and negotiating and issuing the same.
The effecting, insuring, guaranteeing, underwriting, participating in managing and
carrying out of any issue, public or private, of state, municipal or other loans or of
shares, stock, debentures or debenture stock of any company, corporation or
association and the lending of money for the purpose of any such issue.
Carrying on and transacting every kind of guarantee and indemnity business.
Managing, selling and realizing any property which may come into the possession of
the company in satisfaction or part satisfaction of any of its claims.
Acquiring and holding and generally dealing with any property or any right, title or
interest in any such property which may form the security or part of the security for
any loans or advances or which may be connected with any such security.
 Traditional banking activities

Large door to an old bank vault.

Banks act as payment agents by conducting checking or current accounts for

customers, paying cheques drawn by customers on the bank, and collecting
cheques deposited to customers' current accounts. Banks also enable customer
payments via other payment methods such as telegraphic transfer, EFTPOS, and
ATM.

Banks borrow money by accepting funds deposited on current accounts, by

accepting term deposits, and by issuing debt securities such as banknotes and
bonds. Banks lend money by making advances to customers on current accounts, by
making installment loans, and by investing in marketable debt securities and other
forms of money lending.Banks provide almost all payment services, and a bank
account is considered indispensable by most businesses, individuals and
governments. Non-banks that provide payment services such as remittance
companies are not normally considered an adequate substitute for having a bank
account.
Banks borrow most funds from households and non-financial businesses, and lend
most funds to households and non-financial businesses, but non-bank lenders
provide a significant and in many cases adequate substitute for bank loans, and
money market funds, cash management trusts and other non-bank financial
institutions in many cases provide an adequate substitute to banks for lending
savings to.

Definition

The definition of a bank varies from country to country.

Under English common law, a banker is defined as a person who carries on the
business of banking, which is specified as:

 conducting current accounts for his customers

 paying cheques drawn on him, and
 collecting cheques for his customers.

In most English common law jurisdictions there is a Bills of Exchange Act that
codifies the law in relation to negotiable instruments, including cheques, and this Act
contains a statutory definition of the term banker: banker includes a body of persons,
whether incorporated or not, who carry on the business of banking' (Section 2,
Interpretation). Although this definition seems circular, it is actually functional,
because it ensures that the legal basis for bank transactions such as cheques do not
depend on how the bank is organised or regulated.

The business of banking is in many English common law countries not defined by
statute but by common law, the definition above. In other English common law
jurisdictions there are statutory definitions of the business of banking or banking
business. When looking at these definitions it is important to keep in mind that they
are defining the business of banking for the purposes of the legislation, and not
necessarily in general. In particular, most of the definitions are from legislation that
has the purposes of entry regulating and supervising banks rather than regulating
the actual business of banking. However, in many cases the statutory definition
closely mirrors the common law one.
 Accounting for bank accounts

Bank statements are accounting records produced by banks under the various
accounting standards of the world. Under GAAP and IFRS there are two kinds of
accounts: debit and credit. Credit accounts are Revenue, Equity and Liabilities. Debit
Accounts are Assets and Expenses. This means you credit a credit account to
increase its balance, and you debit a debit account to increase its balance.[7]
This also means you debit your savings account every time you deposit money into it
(and the account is normally in deficit), while you credit your credit card account
every time you spend money from it (and the account is normally in credit).
However, if you read your bank statement, it will say the opposite—that you credit
your account when you deposit money, and you debit it when you withdraw funds. If
you have cash in your account, you have a positive (or credit) balance; if you are
overdrawn, you have a negative (or deficit) balance.
The reason for this is that the bank, and not you, has produced the bank statement.
Your savings might be your assets, but the bank's liability, so they are credit
accounts (which should have a positive balance). Conversely, your loans are your
liabilities but the bank's assets, so they are debit accounts (which should have a also
have a positive balance).
Where bank transactions, balances, credits and debits are discussed below, they are
done so from the viewpoint of the account holder—which is traditionally what most
people are used to seeing.
 Economic functions

The economic functions of banks include:

 Issue of money, in the form of banknotes and current accounts subject to

cheque or payment at the customer's order. These claims on banks can act as
money because they are negotiable and/or repayable on demand, and hence valued
at par. They are effectively transferable by mere delivery, in the case of banknotes,
or by drawing a cheque that the payee may bank or cash.
 Netting and settlement of payments – banks act as both collection and paying
agents for customers, participating in interbank clearing and settlement systems to
collect, present, be presented with, and pay payment instruments. This enables
banks to economize on reserves held for settlement of payments, since inward and
outward payments offset each other. It also enables the offsetting of payment flows
between geographical areas, reducing the cost of settlement between them.
 Credit quality improvement – banks lend money to ordinary commercial and
personal borrowers (ordinary credit quality), but are high quality borrowers. The
improvement comes from diversification of the bank's assets and capital which
provides a buffer to absorb losses without defaulting on its obligations. However,
banknotes and deposits are generally unsecured; if the bank gets into difficulty and
pledges assets as security, to raise the funding it needs to continue to operate, this
puts the note holders and depositors in an economically subordinated position.
 Maturity transformation – banks borrow more on demand debt and short term
debt, but provide more long term loans. In other words, they borrow short and lend
long. With a stronger credit quality than most other borrowers, banks can do this by
aggregating issues (e.g. accepting deposits and issuing banknotes) and redemptions
(e.g. withdrawals and redemptions of banknotes), maintaining reserves of cash,
investing in marketable securities that can be readily converted to cash if needed,
and raising replacement funding as needed from various sources (e.g. wholesale
cash markets and securities markets).

Law of banking

Banking law is based on a contractual analysis of the relationship between the bank
(defined above) and the customer—defined as any entity for which the bank agrees
to conduct an account.
The law implies rights and obligations into this relationship as follows:

 The bank account balance is the financial position between the bank and the
customer: when the account is in credit, the bank owes the balance to the customer;
when the account is overdrawn, the customer owes the balance to the bank.
 The bank agrees to pay the customer's cheques up to the amount standing to
the credit of the customer's account, plus any agreed overdraft limit.
 The bank may not pay from the customer's account without a mandate from
the customer, e.g. a cheque drawn by the customer.
 The bank agrees to promptly collect the cheques deposited to the customer's
account as the customer's agent, and to credit the proceeds to the customer's
account.
 The bank has a right to combine the customer's accounts, since each account
is just an aspect of the same credit relationship.
 The bank has a lien on cheques deposited to the customer's account, to the
extent that the customer is indebted to the bank.
 The bank must not disclose details of transactions through the customer's
account—unless the customer consents, there is a public duty to disclose, the bank's
interests require it, or the law demands it
 The bank must not close a customer's account without reasonable notice,
since cheques are outstanding in the ordinary course of business for several days.
 These implied contractual terms may be modified by express agreement
between the customer and the bank. The statutes and regulations in force within a
particular jurisdiction may also modify the above terms and/or create new rights,
obligations or limitations relevant to the bank-customer relationship.

Entry regulation

Currently in most jurisdictions commercial banks are regulated by government

entities and require a special bank license to operate.
Usually the definition of the business of banking for the purposes of regulation is
extended to include acceptance of deposits, even if they are not repayable to the
customer's order—although money lending, by itself, is generally not included in the
definition.
Unlike most other regulated industries, the regulator is typically also a participant in
the market, i.e. a government-owned (central) bank. Central banks also typically
have a monopoly on the business of issuing banknotes. However, in some countries
this is not the case. In the UK, for example, the Financial Services Authority licenses
banks, and some commercial banks (such as the Bank of Scotland) issue their own
banknotes in addition to those issued by the Bank of England, the UK government's
central bank.
Some types of financial institution, such as building societies and credit unions, may
be partly or wholly exempt from bank license requirements, and therefore regulated
under separate rules.
The requirements for the issue of a bank license vary between jurisdictions but
typically include:
 Minimum capital
 Minimum capital ratio
 'Fit and Proper' requirements for the bank's controllers, owners, directors,
and/or senior officers
Approval of the banks the economic functions of banks include:
 Issue of money, in the form of banknotes and current accounts subject to
cheque or payment at the customer's order. These claims on banks can act as
money because they are negotiable and/or repayable on demand, and hence valued
at par. They are effectively transferable by mere delivery, in the case of banknotes,
or by drawing a cheque that the payee may bank or cash.
 Credit quality improvement – banks lend money to ordinary commercial and
personal borrowers (ordinary credit quality), but are high quality borrowers. The
improvement comes from diversification of the bank's assets and capital which
provides a buffer to absorb losses without defaulting on its obligations. However,
banknotes and deposits are generally unsecured; if the bank gets into difficulty and
pledges assets as security, to raise the funding it needs to continue to operate, this
puts the note holders and depositors in an economically subordinated position.
 Maturity transformation – banks borrow more on demand debt and short term
debt, but provide more long term loans. In other words, they borrow short and lend
long. With a stronger credit quality than most other borrowers, banks can do this by
aggregating issues (e.g. accepting deposits and issuing banknotes) and redemptions
(e.g. withdrawals and redemptions of banknotes), maintaining reserves of cash,
investing in marketable securities that can be readily converted to cash if needed,
and raising replacement funding as needed from various sources (e.g. wholesale
cash markets and securities markets).
Banking law is based on a contractual analysis of the relationship between the bank
(defined above) and the customer—defined as any entity for which the bank agrees
to conduct an account.
The law implies rights and obligations into this relationship as follows:
 The bank account balance is the financial position between the bank and the
customer: when the account is in credit, the bank owes the balance to the customer;
when the account is overdrawn, the customer owes the balance to the bank.
 The bank agrees to pay the customer's cheques up to the amount standing to
the credit of the customer's account, plus any agreed overdraft limit.
 The bank may not pay from the customer's account without a mandate from
the customer, e.g. a cheque drawn by the customer.
 The bank agrees to promptly collect the cheques deposited to the customer's
account as the customer's agent, and to credit the proceeds to the customer's
account.
 The bank has a right to combine the customer's accounts, since each account
is just an aspect of the same credit relationship.
 The bank has a lien on cheques deposited to the customer's account, to the
extent that the customer is indebted to the bank.
 The bank must not disclose details of transactions through the customer's
account—unless the customer consents, there is a public duty to disclose, the bank's
interests require it, or the law demands it.
 The bank must not close a customer's account without reasonable notice,
since cheques are outstanding in the ordinary course of business for several days.
 These implied contractual terms may be modified by express agreement
between the customer and the bank. The statutes and regulations in force within a
particular jurisdiction may also modify the above terms and/or create new rights,
obligations or limitations relevant to the bank-customer relationship.
Currently in most jurisdictions commercial banks are regulated by government
entities and require a special bank license to operate.
Usually the definition of the business of banking for the purposes of regulation is
extended to include acceptance of deposits, even if they are not repayable to the
customer's order—although money lending, by itself, is generally not included in the
definition.
Unlike most other regulated industries, the regulator is typically also a participant in
the market, i.e. a government-owned (central) bank. Central banks also typically
have a monopoly on the business of issuing banknotes. However, in some countries
this is not the case.
In the UK, for example, the Financial Services Authority licenses banks, and some
commercial banks (such as the Bank of Scotland) issue their own banknotes in
addition to those issued by the Bank of England, the UK government's central bank.
Some types of financial institution, such as building societies and credit unions, may
be partly or wholly exempt from bank license requirements, and therefore regulated
under separate rules.
The requirements for the issue of a bank license vary between jurisdictions but
typically include:
 Minimum capital

Banking channels
Banks offer many different channels to access their banking and other services:
 A branch, banking centre or financial centre is a retail location where a bank
or financial institution offers a wide array of face-to-face service to its customers.
 ATM is a computerized telecommunications device that provides a financial
institution's customers a method of financial transactions in a public space without
the need for a human clerk or bank teller. Most banks now have more ATMs than
branches, and ATMs are providing a wider range of services to a wider range of
users. For example in Hong Kong, most ATMs enable anyone to deposit cash to any
customer of the bank's account by feeding in the notes and entering the account
number to be credited. Also, most ATMs enable card holders from other banks to get
their account balance and withdraw cash, even if the card is issued by a foreign
bank.
 Mail is part of the postal system which itself is a system wherein written
documents typically enclosed in envelopes, and also small packages containing
other matter, are delivered to destinations around the world. This can be used to
deposit cheques and to send orders to the bank to pay money to third parties. Banks
also normally use mail to deliver periodic account statements to customers.
 Telephone banking is a service provided by a financial institution which allows
its customers to perform transactions over the telephone. This normally includes bill
payments for bills from major billers (e.g. for electricity).
 Online banking is a term used for performing transactions, payments etc. over
the Internet through a bank, credit union or building society's secure website.
 E-banking is the very popular in the world.
 Types of banks

Banks' activities can be divided into retail banking, dealing directly with individuals
and small businesses; business banking, providing services to mid-market business;
corporate banking, directed at large business entities; private banking, providing
wealth management services to high net worth individuals and families; and
investment banking, relating to activities on the financial markets. Most banks are
profit-making, private enterprises. However, some are owned by government, or are
non-profit organizations.
Central banks are normally government-owned and charged with quasi-regulatory
responsibilities, such as supervising commercial banks, or controlling the cash
interest rate. They generally provide liquidity to the banking system and act as the
lender of last resort in event of a crisis. just joking
1) Commercial bank: the term used for a normal bank to distinguish it from an
investment bank. After the Great Depression, the U.S. Congress required that banks
only engage in banking activities, whereas investment banks were limited to capital
market activities. Since the two no longer have to be under separate ownership,
some use the term "commercial bank" to refer to a bank or a division of a bank that
mostly deals with deposits and loans from corporations or large businesses.
2) Community Banks: locally operated financial institutions that empower
employees to make local decisions to serve their customers and the partners.
3) Community development banks: regulated banks that provide financial
services and credit to under-served markets or populations.
4) Postal savings banks: savings banks associated with national postal systems.
5) Private banks: banks that manage the assets of high net worth individuals.
6) Savings bank: in Europe, savings banks take their roots in the 19th or
sometimes even 18th century. Their original objective was to provide easily
accessible savings products to all strata of the population. In some countries,
savings banks were created on public initiative; in others, socially committed
individuals created foundations to put in place the necessary infrastructure.
Nowadays, European savings banks have kept their focus on retail banking:
payments, savings products, credits and insurances for individuals or small and
medium-sized enterprises. Apart from this retail focus, they also differ from
commercial banks by their broadly decentralised distribution network, providing local
and regional outreach—and by their socially responsible approach to business and
society.

Size of global banking industry

Worldwide assets of the largest 1,000 banks grew 16.3% in 2006/2007 to reach a
record $74.2 trillion. This follows a 5.4% increase in the previous year. EU banks
held the largest share, 53%, up from 43% a decade earlier. The growth in Europe’s
share was mostly at the expense of Japanese banks, whose share more than halved
during this period from 21% to 10%. The share of US banks remained relatively
stable at around 14%. Most of the remainder was from other Asian and European
countries.[8]
The United States has by far the most banks in the world, both in terms of institutions
(7,540 at the end of 2005) and branches (75,000). This is an indicator of the
geography and regulatory structure of the USA, resulting in a large number of small
to medium-sized institutions in its banking system. Japan had 129 banks and 12,000
branches. In 2004, Germany, France, and Italy each had more than 30,000 branches
—more than double the 15,000 branches in the UK.

Bank crisis
Banks are susceptible to many forms of risk which have triggered occasional
systemic crises. These include liquidity risk (where many depositors may request
withdrawals beyond available funds), credit risk (the chance that those who owe
money to the bank will not repay it), and interest rate risk (the possibility that the
bank will become unprofitable, if rising interest rates force it to pay relatively more on
its deposits than it receives on its loans).
Banking crises have developed many times throughout history, when one or more
risks have materialized for a banking sector as a whole. Prominent examples include
the bank run that occurred during the Great Depression, the U.S. Savings and Loan
crisis in the 1980s and early 1990s, the Japanese banking crisis during the 1990s,
and the subprime mortgage crisis in the 2000s.

Challenges within the banking industry

The banking industry is a highly regulated industry with detailed and focused
regulators. All banks with FDIC-insured deposits have the FDIC as a regulator;
however, for examinations, the Federal Reserve is the primary federal regulator for
Fed-member state banks; the Office of the Comptroller of the Currency (“OCC”) is
the primary federal regulator for national banks; and the Office of Thrift Supervision,
or OTS, is the primary federal regulator for thrifts. State non-member banks are
examined by the state agencies as well as the FDIC. National banks have one
primary regulator—the OCC.
Each regulatory agency has their own set of rules and regulations to which banks
and thrifts must adhere.
The Federal Financial Institutions Examination Council (FFIEC) was established in
1979 as a formal interagency body empowered to prescribe uniform principles,
standards, and report forms for the federal examination of financial institutions.
Although the FFIEC has resulted in a greater degree of regulatory consistency
between the agencies, the rules and regulations are constantly changing.
The impact of these changes is that banks are receiving less hands-on assessment
by the regulators, less time spent with each institution, and the potential for more
problems slipping through the cracks, potentially resulting in an overall increase in
bank failures across the United States.

Banks also face a host of other challenges such as aging ownership groups. Across
the country, many banks’ management teams and board of directors are aging.
Banks also face ongoing pressure by shareholders, both public and private, to
achieve earnings and growth projections. Regulators place added pressure on banks
to manage the various categories of risk. Banking is also an extremely competitive
industry. Competing in the financial services industry has become tougher with the
entrance of such players as insurance agencies, credit unions, check cashing
services, credit card companies, etc.
As a reaction, banks have developed their activities in financial instruments, through
financial market operations such as brokerage and trading and become big players
in such activities.

Profitability
A bank generates a profit from the differential between the level of interest it pays for
deposits and other sources of funds, and the level of interest it charges in its lending
activities. This difference is referred to as the spread between the cost of funds and
the loan interest rate. Historically, profitability from lending activities has been
cyclical and dependent on the needs and strengths of loan customers. In recent
history, investors have demanded a more stable revenue stream and banks have
therefore placed more emphasis on transaction fees, primarily loan fees but also
including service charges on an array of deposit activities and ancillary services
(international banking, foreign exchange, insurance, investments, wire transfers,
etc.). Lending activities, however, still provide the bulk of a commercial bank's
income.

In the past 10 years American banks have taken many measures to ensure that they
remain profitable while responding to increasingly changing market conditions. First,
this includes the Gramm-Leach-Bliley Act, which allows banks again to merge with
investment and insurance houses. Merging banking, investment, and insurance
functions allows traditional banks to respond to increasing consumer demands for
"one-stop shopping" by enabling cross-selling of products (which, the banks hope,
will also increase profitability). Second, they have expanded the use of risk-based
pricing from business lending to consumer lending, which means charging higher
interest rates to those customers that are considered to be a higher credit risk and
thus increased chance of default on loans. This helps to offset the losses from bad
loans, lowers the price of loans to those who have better credit histories, and offers
credit products to high risk customers who would otherwise been denied credit.
Third, they have sought to increase the methods of payment processing available to
the general public and business clients. These products include debit cards, prepaid
cards, smart cards, and credit cards. They make it easier for consumers to
conveniently make transactions and smooth their consumption over time (in some
countries with underdeveloped financial systems, it is still common to deal strictly in
cash, including carrying suitcases filled with cash to purchase a home). However,
with convenience of easy credit, there is also increased risk that consumers will
mismanage their financial resources and accumulate excessive debt. Banks make
money from card products through interest payments and fees charged to
consumers and transaction fees to companies that accept the cards.
Banks in India can be categorized into non-scheduled banks and scheduled banks.
Scheduled banks constitute of commercial banks and co-operative banks. There
are about 67,000 branches of Scheduled banks spread across India. During the
first phase of financial reforms, there was a nationalization of 14 major banks in
1969. This crucial step led to a shift from Class banking to Mass banking. Since then
the growth of the banking industry in India has been a continuous process.

As far as the present scenario is concerned the banking industry is in a transition

phase. The Public Sector Banks (PSBs), which are the foundation of the Indian
Banking system account for more than 78 per cent of total banking industry assets.
Unfortunately they are burdened with excessive Non Performing assets (NPAs),
massive manpower and lack of modern technology.

On the other hand the Private Sector Banks in India are witnessing immense
progress. They are leaders in Internet banking, mobile banking, phone banking,
ATMs. On the other hand the Public Sector Banks are still facing the problem of
unhappy employees. There has been a decrease of 20 percent in the employee
strength of the private sector in the wake of the Voluntary Retirement Schemes
(VRS). As far as foreign banks are concerned they are likely to succeed in India.

Banks in India
• Allahabad Bank
• American Express Bank Ltd
• Andhra Bank
• ABN AMRO Bank
• Bank Muscat (S A O G)
• Bank Of America
• Bank Of India
• Barclays Bank PLC
• Centurion Bank Ltd
• Citibank
• Corporation Bank
• Dhanlakshmi Bank Ltd
• Deutsche Bank India
• Export-Import Bank Of India
• Global Trust Bank Ltd
• Hongkong Shanghai Banking Corporation Ltd
• HSBC Bank Ltd
• IDBI Bank Ltd
• IndusInd Bank Ltd
• Syndicate Bank India
• Industrial Development Bank Of India
• ING Vysya Bank Ltd
• JP Morgan Chase Bank
• Punjab National Bank
• Standard Chartered Bank
• State Bank Of India
• State Bank Of Indore
• Canara Bank India
• Reserve Bank Of India
• SBI Commercial and International Bank
• Bank Of Baroda India
• Federal Bank India
• HDFC Bank India
• Union Bank Of India
• YES BANK India
• State Bank Of Bikaner And Jaipur
• Ceylon Bank
• Catholic Syrian Bank
• Dena Bank
• Mizuho Corporate Bank
• Indian Overseas Bank
• Karnataka Bank
• Punjab and Sind Bank
• Kotak Mahindra Bank
• State Bank of Hyderabad
• Karur vysya Bank Limited
• State Bank of Patiala
• Oriental Bank of Commerce
• State Bank of Travancore
• United Bank of India
• State Bank of Mysore
• Axis Bank
• Vijaya Bank
• Tamilnad Mercantile Bank
• Ratnakar Bank
• Jammu and Kashmir Bank
• UCO Bank
• DBS Bank Ltd.
• Lakshmi Vilas Bank
• The Nainital Bank Ltd.

History Of Banking In India

The first bank in India, though conservative, was established in 1786. From 1786 till
today, the journey of Indian Banking System can be segregated into three distinct
phases. They are as mentioned below:-

Early phase from 1786 to 1969 of Indian Banks

Nationalization of Indian Banks and up to 1991 prior to Indian banking sector
Reforms.
New phase of Indian Banking System with the advent of Indian Financial & Banking
Sector Reforms after 1991.
To make this write-up more explanatory, I prefix the scenario as Phase Ι , Phase
ΙΙ and PhaseΙ Ι Ι .
Phase Ι

The General Bank of India was set up in the year 1786. Next came Bank of
Hindustan
and Bengal Bank. The East India Company established Bank of Bengal (1809), Bank
of Bombay (1840) and Bank of Madras (1843) as independent units and called it
Presidency Banks. These three banks were amalgamated in 1920 and Imperial Bank
of India was established which started as private shareholders banks, mostly
Europeans shareholders.

In 1865 Allahabad Bank was established and first time exclusively by Indians,
Punjab National Bank Ltd. was set up in 1894 with headquarters at Lahore. Between
1906 and 1913, Bank of India, Central Bank of India, Bank of Baroda, Canara Bank,
Indian Bank, and Bank of Mysore were set up. Reserve Bank of India came in 1935.

During the first phase the growth was very slow and banks also experienced periodic
failures between 1913 and 1948. There were approximately 1100 banks, mostly
small. 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 the Central Banking Authority.
During those day’s public has lesser confidence in the banks. As an aftermath
deposit mobilization was slow. Abreast of it the savings bank facility provided by the
Postal department was comparatively safer. Moreover, funds were largely given
to traders.

Phase Ι Ι
Government took major steps in this Indian Banking Sector Reform after
independence. In 1955, it nationalized Imperial Bank of India with extensive banking
facilities on a large
scale especially in rural and semi-urban areas. It formed State Bank of India to act
as the principal agent of RBI and to handle banking transactions of the Union and
State Governments all over the country.
Seven banks forming subsidiary of State Bank of India was nationalized in 1960 on
19th July, 1969, major process of nationalization was carried out. It was the effort of
the then Prime Minister of India, Mrs. Indira Gandhi.14 major commercial banks in
the country were nationalized.

Second phase of nationalization Indian Banking Sector Reform was carried out in
1980 with seven more banks. This step brought 80% of the banking segment in
India under Government ownership.

The following are the 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 crore.

After the nationalization of banks, the branches of the public sector bank India raised
to approximately 800% in deposits and advances took a huge jump by 11,000%.
.

Phase Ι Ι Ι

This phase has introduced many more products and facilities in the banking sector in
its reforms measure. In 1991, under the chairmanship of M Narasimham, a
committee was set up by his name which worked for the liberalization of banking
practices.
.
The financial system of India has shown a great deal of resilience. It is sheltered
from any crisis triggered by any external macroeconomics shock as other East Asian
Countries suffered. This is all due to a flexible exchange rate regime, the foreign
reserves are high, the capital account is not yet fully convertible, and banks and their
customers have limited foreign exchange exposure.

BANKING SYSTEM IN INDIA

The Banking System in India consists of:

1. Reserve Bank
2. Development Banks
3. Public Sector Bank.
4. Foreign Banks
5. Private Sector Banks
6. Cooperative Banks
7. Regional Rural Banks
8. Local Area Banks

1) The Reserve Bank of India

The Reserve Bank of India is the Central Bank of the Country and came into being
by the Reserve Bank of India Act 1934. It was nationalized in 1948.

Reserve Bank of India is the bank that issues and regulates the issue of currency in
India .The banker to the Government of India and the State governments. It
manages the public debt. It has the obligation to transact the banking business of the
Central Government. It undertakes to accept money on behalf of the Government
and make payment on its behalf. The banker’s bank. Commercial banks maintain
their current account with the Reserve Bank of India.
The bank that manages the volume of credit created by the commercial banks to
ensure price stability.
The bank that manages the external value of the currency (Indian rupee).

2)Development Banks

These were set up to give long term finance for the development of the country.
These are the Industrial Finance Corporation of India and the Industrial Development
Bank of India, The Industrial Reconstruction Bank of India and the National Bank for
Agriculture and Rural Development. A former development bank, the Industrial
Credit and Investment Corporation of India Ltd. by a reverse merger in 2002,became
a normal commercial bank.

3)Public Sector Banks

These are banks which the Government either owns or has a majority stake in it.
The largest is the State Bank of India which was formed by the merger of the
Presidency Banks – the Bank of Bengal, the Bank of Bombay and the Bank of
Madras in 1921. It was then known as the Imperial Bank.

4)Foreign Banks

These are branches of banks incorporated outside India. In 1995/ 96 many

other foreign banks (optimistic in view of India’s liberalization) opened branches in
India. However, after banking began to become increasingly competitive and
margins began to be squeezed coupled with large non performing assets, many
banks closed their branches.

5)Private Sector Banks

These are banks which are not government owned or controlled. Their shares are
freely traded in the Stock Markets.
6)Cooperative Banks

Cooperative Banks are those that are created by a group of individual to support
either a community or a religious group. They operate in metropolitan, urban and
semi urban centers to cater to the needs of small borrowers.

7)Regional Rural Banks

These came into being on October 2, 1975 when 5 regional rural banks were
established under what became the Regional Rural Banks Act 1975. These were to
bridge the gap in rural credit granting loans and advances to small and marginal
farmers, artisans, small entrepreneur and persons of small means engaged in trade,
commerce, industry or other productive ,activities within their area of
operation.

8)Local Area Banks

Local Area Banks came into existence in 1999 and licenses were given for these
banks as it was felt that regular commercial banks were not financial the rural/
agricultural sector adequately. Licenses were given to open branches in three
districts. Branches in urban/ semi urban areas were granted only after ten branches
were established in rural areas/ villages.

AREA OF STUDY

INTRODUCTION OF HDFC BANK

Background

HDFC was incorporated in 1977 with the primary objective of meeting a social
Need – that of promoting home ownership by providing long-term finance to
households for their housing needs. HDFC was promoted with an initial share capital
of Rs. 100 million.

Business Objectives
The primary objective of HDFC is to enhance residential housing stock in the
Country through the provision of housing finance in a systematic and professional
Manner, and to promote home ownership. Another objective is to increase the flow of
resources to the housing sector by integrating the housing finance sector with the
overall domestic financial markets

Organizational Goals

HDFC’s main goals are to

a) Develop close relationships with individual households.
b) Maintain its position as the premier housing finance institution in the country,
c) Transform ideas into viable and creative solutions.
d) Provide consistently high returns to shareholders.
e) To grow through diversification by leveraging off the Existing client.

HISTORY OF HDFC BANK

The Housing Development Finance Corporation Limited (HDFC) was amongst the
first to receive an 'in principle' approval from the Reserve Bank of India (RBI) to set
up a bank in the private sector, as part of the RBI's liberalisation of the Indian
Banking Industry in 1994. The bank was incorporated in August 1994 in the name of
'HDFC Bank Limited', with its registered office in Mumbai, India. HDFC Bank
commenced operations As a Scheduled Commercial Bank on 16th January 1995. In
the year 1998 HDFC Bank had tied up with the Ahmadabad Stock Exchange (ASE)
to act as its clearing bank

Subsidiary and Associate Companies

The subsidiaries of HDFC consists of
1. HDFC Bank
2. HDFC Mutual Fund
3. HDFC Standard Life Insurance Company
4. HDFC Realty
5. HDFC Chubb General Insurance Company Limited.
6. Intel net Global Services Limited
7. Credit Information Bureau (India) Limited
8. Other Companies Co – Promoted by HDFC
i. HDFC Trustee Company Ltd.
ii. GRUH Finance Ltd.
iii. HDFC Developers Ltd.
iv. HDFC Venture Capital Ltd.
v. HDFC Venture Trustee Company Ltd
vi. HDFC Securities Ltd.
vii. HDFC Holding Ltd.
viii. Home Loan Services India Pvt. Lt

The Organization:-

The Housing Development Finance Corporation Limited (HDFC) was amongst the
first to receive an 'in principle' approval from the Reserve Bank of India (RBI) to set
up a bank in the private sector, as part of the RBI's liberalisation of the Indian
Banking Industry in 1994. The bank was incorporated in August 1994 in the name of
'HDFC Bank Limited', with its registered office in Mumbai, India. HDFC Bank
commenced operations As a Scheduled Commercial Bank on 16th January 1995. In
the year 1998 HDFC Bank had tied up with the Ahmadabad Stock Exchange (ASE)
to act as its clearing bank

.
Business Focus
HDFC Bank's mission is to be a World-Class Indian Bank. The objective is to build
sound customer franchises across distinct businesses so as to be the preferred
provider of banking services for target retail and wholesale customer segments, and
to achieve healthy growth in profitability, consistent with the bank's risk appetite. The
bank is committed to maintain the highest level of ethical standards, professional
integrity, corporate governance and regulatory compliance. HDFC Bank's business
philosophy is based on four core values - Operational Excellence, Customer Focus,
Product Leadership and People.

Capital Structure
The authorized capital of HDFC Bank is Rs.450 crore (Rs.4.5 billion). The paid-up
capital is Rs.311.9 crore (Rs.3.1 billion). The HDFC Group holds 22.1% of the bank's
equity and about 19.4% of the equity is held by the ADS Depository (in respect of the
bank's American Depository Shares (ADS) Issue). Roughly 31.3% of the equity is
held by Foreign Institutional Investors (FIIs) and the bank has about 190,000
shareholders. The shares are listed on the The Stock Exchange, Mumbai and the
National Stock Exchange. The bank's American Depository Shares are listed on the
New York Stock Exchange (NYSE) under the symbol "HDB.

Times Bank Amalgamation

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

(another new private sector bank promoted by Bennett, Coleman & Co./Times
Group) was merged with HDFC Bank Ltd., effective February 26, 2000. As per the
scheme of amalgamation approved by the shareholders of both banks and the
Reserve Bank of India, shareholders of Times Bank received 1 share of HDFC Bank
for every 5.75 shares of Times Bank. The acquisition added significant value to
HDFC Bank in terms of increased branch network, expanded geographic reach,
enhanced customer base, skilled manpower and the opportunity to cross-sell and
leverage alternative delivery channels.

STRUCTURE OF HDFC BANK:-

Mr. Jagdish Capoor took over as the bank's Chairman in July 2001. Prior to this, Mr.
Capoor was a Deputy Governor of the Reserve Bank of India.
The Managing Director, Mr. Aditya Puri, has been a professional banker for over 25
years, and before joining HDFC Bank in 1994 was heading Citibank's operations in
Malaysia.
The Bank's Board of Directors is composed of eminent individuals with a wealth of
experience in public policy, administration, industry and commercial banking. Senior
executives representing HDFC are also on the Board.
The management consists of the Chairman Mr Jagdish kapoor and 9 other Directors

that assist him in achieving objectives of the bank.

MR. Jagdish Kapoor MR. Aditya Puri

 Mr. KeKi M. Mistry Mr. Vineet Jain

Mrs. Renu Karnad Mr. Arvind Pande

Mr. Ashim Samanta Mr. C. M. Vasudev

Mr. Gautam Divan. Dr. Pandit Palande

Products and Services – HDFC Bank

Product range: The following is the product range offered at HDFC: While various
deposit products offered by the bank are assigned different names, the deposit
products can be categorized broadly into the following types. Definition of major
deposit schemes are as under: -

1. Demand deposits:
"Demand Deposits" means a deposit received by the bank which is withdrawn able
on demand;
a) Savings Account:
"Savings Deposits" means a form of Demand Deposit which is subject to restrictions
as to the number of withdrawals as also the amounts of withdrawals permitted by the
bank during any specified period; HDFC provides with saving bank account with the
usual facilities, and one also gets a free ATM card, intrbranch banking, bill payment
facilities, phone banking and mobile banking.

2. Term Deposits:
"Term Deposit" means a deposit received by the bank for a fixed period withdraw
able only after the expiry of the fixed period and includes deposits such as Recurring
/ Double Benefit Deposits / Short Deposits / Fixed Deposits / Monthly Income
Certificate / Quarterly Income Certificate.

3. Notice Deposit:
''Notice Deposit'' means Term Deposit for a specific period but which can be
withdrawn on giving at least one complete banking day's notice.

4. Current Account:

"Current Account" means a form of Demand Deposit wherefrom withdrawals are

allowed any number of times depending upon the balance in the account or up to a
particular agreed amount and will also include other deposit accounts which are
neither Savings Deposit nor Term Deposit; The account holder gets a personalized
cheque book, monthly account statements, and Inter-branch banking.

5. Corporate Account:-

These are more commonly known as Salary Accounts. These are account in HDFC
bank with zero balance. These are given to salaried people. These accounts are
opened by the employer for the employees to deposit the salary of the employee
directly to the account.

6. HDFC Bank Preferred:-

A preferential Savings Account where in, one is assigned with a dedicated
Relationship Manager, who’s you’re the one point contact. One also get privileges
like fee waivers, enhanced ATM withdrawal limit, priority locker allotment, free Demat
Account and lower interest rates on loans
7. Sweep-In Account:-

A Fixed Deposit linked to one’s Savings Account. So, even if one’s Savings Account
runs a bit short, one can issue a cheque (or use ATM Card). The money is
automatically swept in to one’s Savings Account from one’s Fixed Deposit Account.
The excess funds in the account are directly transferred to the fixed deposit account
of the account holder.

8. Super Saver Account:

It gives one an overdraft facility up to 75% of one’s fixed deposit. In an emergency,

you can access your funds while your fixed deposit continues to earn high interest.

9. HDFC Bank Plus:

Apart from Regular and Premium Current Accounts HDFC also has HDFC Bank
Plus, a Current Account and then something extra for the HDFC bank customers.
One can transfer up to Rs. 50 lakh every month at no extra charges, between the
four metros. One can also avail cheque clearing between the four metros, get cash
delivery/pick-up up to Rs. 25000/-, home delivery of demand drafts, at-par cheque,
outstation cheque clearing facility, etc.

10. Demat Account:

One can conduct hassle-free transactions on the stock market for one’s shares. The
shares held by the customer are protected from damage, loss and theft, by
maintaining these shares in electronic form. This account can be accessed through
Internet too.

11. Loans:
There are a variety of loan schemes offered like personal loans, new car loans, used
car loans, loan against shares, consumer loans, two wheeler loans, and home loans.
These are available with easy payback in monthly instalments. Loans are sanctioned
with easy documentation and quick delivery.
Home Loan - Home loans for individuals to purchase (fresh / resale) or construct
houses. Application can be made individually or jointly. HDFC finances up to 85%
maximum of the cost of the property (Agreement value + Stamp duty + Registration
charges) based on the repayment capacity of the customer

Home improvement loan

HIL facilitates internal and external repairs and other structural improvements like
painting, waterproofing, plumbing and electric works, tiling and flooring, grills and
aluminum windows. HDFC finances up to 85% of the cost of renovation (100% for
existing customers) subject to market value of the property.

Purpose
 External repairs
 Tiling and flooring
 Internal and external painting
 Plumbing and electrical work
 Waterproofing and roofing
 Grills and aluminum windows
 Waterproofing on terrace
 Construction of underground/overhead water tank
 Paving of compound wall (with stone/tile/etc.)
Home extention loan

HEL facilitates the extension of an existing dwelling unit. All the terms are the same
as applicable to Home Loan.
• Purpose
HDFC Home Extension Loan makes it convenient for you to extend or add space to
your home. Be it an additional room, a larger bathroom, or even enclosing an open
balcony.
• Maximum loan
• 85% of the cost of extension
• Maximum Term
20 years subject to your retirement age
• Applicant and Co- Applicant to the loan
Home Loans can be applied for either individually or jointly. Proposed owners of the
property, will have to be co-applicants. However, the co-applicants need not be co-
owners.
• Adjustable Rate Home Loan

Loan under Adjustable Rate is linked to HDFC's Retail Prime Lending Rate (RPLR).
The rate on your loan will be revised every three months from the date of first
disbursement, if there is a change in RPLR, the interest rate on your loan may
change. However, the EMI on the home loan disbursed will not change*. If the
interest rate increases, the interest component in an EMI will increase and the
principal component will reduce resulting in an extension of term of the loan, and
viceversa.
 Awards and accolades 2009

 Mr Deepak Parekh amongst India's 50 Most Powerful People 2009 -

Business Week
 Mr Deepak Parekh features among the top of India Inc's Most Powerful
CEOs - Survey by Economic Times with IMRB
 Mr. Deepak Parekh selected for the IMC Juran Quality Medal 2008 for
his excellent customer-centric work in various initiatives related to the fields of
Banking & Finance.
 HDFC selected as the 'Top Indian Company in FIs / NBFCs / Financial
Services sector' for the Dun & Bradstreet – Rolta Corporate Awards 2008.
 Mr. Keki Mistry awarded the "Best CFO in the Financial Services
Sector" and the "CFO of the Year" for 2008 by CNBC TV18.
 Mr. Keki Mistry declared the Best CFO in the Financial Services
category by the Institute of Chartered Accountants of India (ICAI).
 Mr. Deepak Parekh is CNBC’s Outstanding Business Leader.
 Mr Deepak Parekh awarded the 'Business Leader of the Year' by
NDTV.
 Introduction of HSBC Bank

History of HSBC Bank

HSBC has published a new brief history, tracing the evolution of a Group that, from
its origins as a regional trade bank in 1865, has grown to be one of the world’s
leading financial services organisations today.

The HSBC name is derived from the founding member of the group, The Hongkong
and Shanghai Banking Corporation Limited, established in Hong Kong and Shanghai
in 1865 to finance international trade along the coast of China. So it is no surprise
that internationalism, alongside a long-term outlook and a pioneering approach
characterise HSBC’s development throughout its history.

“HSBC’s pride in its history is not a matter of nostalgia,” HSBC’s Chairman, Sir John
Bond, explains. “Our experiences have shaped the Group’s character and business
approach. Our record of resilience, adaptability and innovation helps to explain how
we have been able to succeed during times of rapid change.”

“We are international in a way very few companies of any kind can claim,” Edwin
Green, HSBC Group Archivist, adds. “What’s so distinctive about the Group as a
whole is not only how early it gets into markets, but that it stays through thick and
thin. Crises, wars, emergencies, social upheaval, HSBC has seen them all.”

The HSBC Group, A brief history charts the Group’s expansion in Asia-Pacific,
Europe, the Americas and the Middle East & Africa, both through organic growth and
strategic acquisitions. These began in the late 1950s with the acquisition of the
Mercantile Bank of India and the British Bank of the Middle East.
It has also made HSBC one of the largest banks in the world, employing over
218,000 members of staff in 79 countries and territories, who serve the needs of
over 110 million customers. And a strong focus on customers is at the heart of the
Group’s strategic plan for 2004-2008, which identifies personal financial services;
consumer finance; commercial banking; corporate, investment banking and markets;
and private banking, as the key customer groups HSBC serves.

Since 2002, HSBC has marked itself as ‘The world’s local bank’, emphasising the
blend of local knowledge and international experience that has characterised the
Group from the founding of The Hongkong and Shanghai Banking Corporation to the
present day.

With this pedigree, HSBC looks forward to meeting the business needs and
challenges of the 21st century.

Who is HSBC?

We are the world's local bank.

Headquartered in London, HSBC is one of the largest banking and financial services
organisations in the world. HSBC's international network comprises around 9,500
offices in 86 countries and territories in Europe, the Asia-Pacific region, the
Americas, the Middle East and Africa.

With listings on the London, Hong Kong, New York, Paris and Bermuda stock
exchanges, shares in HSBC Holdings plc are held by around 200,000 shareholders
in some 100 countries and territories. The shares are traded on the New York Stock
Exchange in the form of American Depositary Receipts.

Through an international network linked by advanced technology, including a rapidly

growing e-commerce capability, HSBC provides a comprehensive range of financial
services: personal financial services; commercial banking; corporate, investment
banking and markets; private banking; and other activities.
Business principles and values

The HSBC corporate character defines the values and principles inherent in all our
everyday dealings.

Group History

The HSBC Group has an international pedigree which is unique. Many of its
principal companies opened for business over a century ago and they have a history
which is rich in variety and achievement. The HSBC Group is named after its
founding member, The Hongkong and Shanghai Banking Corporation Limited, which
was established in 1865 to finance the growing trade between China and Europe.

HSBC History Wall

HSBC has been both a pioneer and pillar of banking in many communities around
the world and is very proud of its history.

A visual record of the Group's history, the History Wall, was developed for the
Group's headquarters in London. Through 3,743 images, the History Wall captures
HSBC's rich and fascinating pedigree. On this page you can explore some of
HSBC's history in pictures.

Happy Birthday HSBC in Indonesia

HSBC's business in Indonesia is celebrating its 125th anniversary this year. The
branch in Jakarta opened its doors to customers in July 1884 and the business has
grown alongside the development of Indonesia ever since. HSBC now has over 100
outlets in the country and looks forward to its future in Indonesia. Our new selection
of images from the History Wall showcases some of our heritage in Indonesia.
Who we are

Located in London, HSBC Group Archives are among the most important and
heavily used bank archives in the world. The archivists are responsible for the
collection and management of the records, which span more than two centuries of
financial and international history.

What we hold

The archives contain historical records from many of the banks that make up the
modern HSBC Group.

Group Archives cover:

• The Hongkong and Shanghai Banking Corporation Limited (up to 1993)

• HSBC Bank plc (formerly Midland Bank plc)
• HSBC Bank Middle East Limited (formerly The British Bank of the Middle
East)
• Mercantile Bank of India

Types of records include:

• Board minute books

• Annual reports
• Staff records
• Photographs of branches, staff and local scenes
• Advertisements and promotional videos
Board of Directors

The Board of Directors of HSBC Holdings plc

S K Green, Group Chairman

Age 60. An executive Director since 1998; Group Chief Executive from 2003 to
2006. Joined HSBC in 1982. Chairman of HSBC Bank plc and HSBC Private
Banking Holdings (Suisse) SA. A Director of HSBC France, HSBC North America
Holdings Inc. and The Hongkong and Shanghai Banking Corporation Limited.
Executive Director, Corporate, Investment Banking and Markets from 1998 to 2003.
Chairman of The British Bankers' Association.

Mr Green is a career banker having joined The Hongkong and Shanghai Banking
Corporation Limited in 1982 with responsibility for corporate planning activities. In
1992 he became Group Treasurer of HSBC Holdings plc, with responsibility for the
HSBC Group's treasury and capital markets businesses globally. He has worked in
Hong Kong, New York, the Middle East and London and has immense international
experience and knowledge of the HSBC Group.

M F Geoghegan, CBE, Group Chief Executive

Age 55. An executive Director since 2004. Joined HSBC in 1973. Chairman of the
Group Management Board. Chairman of HSBC Bank USA, N.A., HSBC Bank
Canada, HSBC Latin America Holdings (UK) Limited and HSBC USA Inc. Deputy
Chairman of HSBC Bank plc. A Director of The Hongkong and Shanghai Banking
Corporation Limited, and HSBC North America Holdings Inc. Chief Executive of
HSBC Bank plc from 2004 to 2006. Responsible for all of HSBC's business
throughout South America from 2000 to 2003. President of HSBC Bank Brasil S.A. –
Banco Múltiplo from 1997 to 2003.
† S A Catz

Age 47. President and Chief Financial Officer of Oracle Corporation. A non-
executive Director since 1 May 2008. Managing Director of Donaldson, Lufkin &
Jenrette from 1997 to 1999. Joined Oracle in 1999 and appointed to the Board of
Directors in 2001.

Ms Catz brings to the Board a background in international business leadership,

having helped transform Oracle into the second biggest producer of management
software and the world's leading supplier of software for information management.

† M K T Cheung, GBS, OBE

Age 61. A non-executive Director since 1 February 2009. A non-executive Director

of Hang Seng Bank Limited, HKR International Limited, Hong Kong Exchanges and
Clearing Limited and Sun Hung Kai Properties Limited. A non-official member of the
Executive Council of the Hong Kong Special Administrative Region, Chairman of the
Airport Authority Hong Kong, Chairman of the Council of the Hong Kong University
of Science and Technology and a Council Member of the Open University of Hong
Kong. A Director of The Association of Former Council Members of The Stock
Exchange of Hong Kong Limited and The Hong Kong International Film Festival
Society Limited. Chairman and Chief Executive Officer of KPMG Hong Kong from
1996 to 2003. Awarded the Gold Bauhinia Star by the Hong Kong Government in
2008..

†J D Coombe

Age 63. Non-executive Chairman of Hogg Robinson Group plc. A non-executive

Director since 2005. A member of the Group Audit Committee and of the
Remuneration Committee. A non-executive Director of Home Retail Group plc
†J L Durán

Age 44. A non-executive Director of France Telecom. A non-executive Director since

1 January 2008. Chief Executive of Carrefour SA until 31 December 2008. Former
appointments at Carrefour SA include: Chairman of its Management Board of
Directors; Chief Financial Officer and Managing Director, Organisation and Systems.
Mr Durán brings to the Board a background in international finance, retail and
consulting in developed and emerging markets. He joined Carrefour SA in 1991 and
held a number of positions within Carrefour's businesses in Spain, southern Europe
and the Americas.

†R A Fairhead

Age 47. Chairman, Chief Executive Officer and Director of Financial Times Group
Limited. A non-executive Director since 2004. Chairman of the Group Audit
Committee and a member of the Nomination Committee. A Director of Pearson plc
and Chairman of Interactive Data Corporation. A non-executive Director of The
Economist Newspaper Limited. Former appointments include: Executive Vice
President, Strategy and Group Control of Imperial Chemical Industries plc; and
Finance Director of Pearson plc.

Mrs Fairhead brings to the Board a wealth of experience in international industry,

publishing, finance and general management. As the former Finance Director of
Pearson plc she oversaw the day to day running of the finance function and was
directly responsible for global financial reporting and control, tax and treasury. She
has a Masters in Business Administration from the Harvard Business School.
D J Flint, CBE, Group Finance Director

Age 53. Joined HSBC as an executive Director in 1995. Chairman of HSBC Finance
Corporation and a Director of HSBC North America Holdings Inc. A non-executive
Director of BP p.l.c. and a member of the Consultative Committee of the Large
Business Advisory Board of HM Revenue & Customs and the Business Government
Forum on Tax and Globalisation. Co-Chairman of the Counterparty Risk
Management Policy Group III. Chaired the Financial Reporting Council's review of
the Turnbull Guidance on Internal Control. Served on the Accounting Standards
Board and the Standards Advisory Council of the International Accounting Standards
Board from 2001 to 2004. A former partner in KPMG.

Mr Flint has extensive financial experience particularly in banking, multinational

financial reporting, treasury and securities trading operations. In 2006 he was
honoured with a CBE in recognition of his services to the finance industry. He is a
member of the Institute of Chartered Accountants of Scotland and the Association of
Corporate Treasurers and he is a Fellow of The Chartered Institute of Management
Accountants.

A A Flockhart, CBE

Age 57. Chief Executive Officer of The Hongkong and Shanghai Banking
Corporation Limited and Global Head of Commercial Banking. An executive Director
since 1 May 2008. Joined HSBC in 1974. Appointed a Group Managing Director in
2006. Appointed Vice Chairman and a Director of HSBC Bank (Vietnam) Limited on
24 November 2008. A Director of Hang Seng Bank Limited, HSBC Bank Australia
Limited, HSBC Bank (China) Company Limited and Chairman of HSBC Bank
Malaysia Berhad. President and Group Managing Director Latin America and the
Caribbean from 2006 to July 2007. Chief Executive Officer, Mexico from 2002 to
2006. Senior Executive Vice-President, Commercial Banking, HSBC Bank USA,
N.A. from 1999 to 2002. Managing Director of The Saudi British Bank from 1997 to
1999..
 Group members

Personal and Commercial Banking

HSBC Bank Brasil S.A.- Banco Multiplo
Hang Seng Bank Limited
HSBC Bank Canada
The Hongkong and Shanghai Banking Corporation
Limited
HSBC Bank Argentina S.A.
HSBC Bank Australia Limited
HSBC Bank Malaysia Berhad
HSBC Bank Middle East Limited
HSBC Finance Corporation
HSBC Bank USA N.A.
HSBC Bank plc
HSBC México, S.A.
First Direct (division of HSBC Bank plc)
HSBC France
HSBC Bank Malta plc
HSBC Bank Egypt S.A.E.
British Arab Commercial Bank Limited (Associate
HSBC Group)
The Saudi British Bank (Associate HSBC Group)
Wells Fargo HSBC Trade Bank, N.A (Associate
HSBC Group)
Global Banking and Markets
Global Banking and Markets
Asset Management
HSBC Global Asset Management
Halbis
Sinopia
HSBC Unit Trust Management Limited
HSBC Trinkaus & Burkhardt AG
Private Banking and Trustee Services
HSBC Bank Middle East
HSBC Guyerzeller Bank AG
HSBC Private Bank
HSBC Trinkaus & Burkhardt AG
HSBC Trustee
HSBC Trust Company (UK) Limited
Securities
HSBC Securities Inc
HSBC Trinkaus & Burkhardt AG
HSBC Broking Services (Asia) Limited
HSBC Casa de Bolsa, S.A. de C.V., Grupo
Financiero HSBC
Finance
HSBC Asset Finance (UK) Limited
HSBC Invoice Finance (UK) Limited
HSBC Vehicle Finance (UK) Limited
HSBC Forfaiting Asia Pte Limited
HSBC International Trade Finance Limited
HSBC Mortgage And Finance (Singapore) Limited
Mortgage And Finance Berhad
Wayfoong Credit Limited
Wayfoong Finance Limited
HSBC Fianzas, S.A., Grupo Financiero HSBC
(financing bonds)
Insurance, Retirement Benefits, Actuarial and
Personal Financial Services
Hang Seng Insurance Company Limited
Hang Seng Life Limited
HSBC Actuaries and Consultants Limited
HSBC Insurance Brokers (Asia-Pacific) Limited
HSBC Insurance Brokers Limited
HSBC Insurance Holdings Limited
HSBC Bank plc
La Buenos Aires Compañia Argentina de Seguros
S.A.
HSBC Life (UK) Limited
HSBC Afore, S.A., Grupo Financiero HSBC
(Retirement Benefits)
HSBC Seguros, S.A. de C.V., Grupo Financiero
HSBC (Insurance)
HSBC Pensiones, S.A. (Pensions)
HSBC Insurance (Asia-Pacific) Holdings Limited
Property Related Services
HSBC Property (Asia) Limited
Shipping Services
HSBC Shipbrokers Limited
 International network

Region Number of
offices
Americas 5,673
Asia-Pacific 1,013
Europe 2,559
Middle East & Africa 275

Algeria 2
Argentina 226
Armenia 10
Australia 34
Bahamas 8
Bahrain 9
Bangladesh 10
Belgium 2
Bermuda 15
Brazil 1,889
British Virgin Islands 3
Brunei Darussalam 12
Canada 292
Cayman Islands 13
Channel Islands 38
Chile 2
China 136
Colombia 32
Cook Islands 1
Region Number of
offices
Costa Rica 46
Cyprus 1
Czech Republic 7
Egypt 76
El Salvador 90
France 454
Georgia 1
Germany 13
Greece 27
Honduras 87
Hong Kong SAR 325
Hungary 11
India 155
Indonesia 114
Ireland 7
Isle of Man 8
Israel 3
Italy 2
Japan 14
Jordan 5
Kazakhstan 3
Korea, Republic of 15
Kuwait 1
Lebanon 7
Libya 2
Luxembourg 4
Macau SAR 7
Malaysia 49
Maldives 1
Malta 54
Mauritius 12
Mexico 1,265
Monaco 2
Netherlands 1
New Zealand 11
Oman 9
Pakistan 9
Palestinian Autonomous 1
Region Number of
offices
Area
Panama 83
Peru 17
Philippines 27
Poland 24
Qatar 6
Russia 12
Saudi Arabia 88
Singapore 27
Slovakia 4
South Africa 5
Spain 4
Sri Lanka 43
Sweden 3
Switzerland 17
Taiwan 43
Thailand 1
Turkey 229
United Arab Emirates 33
United Kingdom 1,618
United States of America 1,584
Uruguay 11
Venezuela 1
Vietnam 4
 Awards and rankings

Company /
Month Award Body / Publication
Entity
November Global Finance
Best Consumer Internet Bank HSBC Group
2008 Magazine
July 2008 Top World Bank HSBC The Banker
HSBC Global
July 2008 Best Emerging Markets Bank Euromoney
Markets
February HSBC Global
Best International Islamic Bank Euromoney
2008 Markets
October Interest Rate Derivatives House of HSBC Global
The Banker
2007 the Year Markets
HSBC Global
July 2007 Best Cash Management House Transaction Euromoney
Banking
HSBC Global
July 2007 Best Risk Management House Euromoney
Markets
Ranked number 1 - Who's best HSBC Global Euromoney Foreign
May 2007
where? - Asia & Middle East Markets Exchange Poll
Best for currencies - Hong Kong
dollar, Chinese Yuan, Middle HSBC Global Euromoney Foreign
May 2007
Eastern currencies, Asian Markets Exchange Poll
currencies, US$/£
 Company /
Month Award Body / Publication
Entity
February Euromoney Islamic
Best International Islamic Bank HSBC Amanah
2007 Finance Awards
February Euromoney Islamic
Best Sukuk House HSBC Amanah
2007 Finance Awards
February Euromoney Islamic
Best Project Finance House HSBC Amanah
2007 Finance Awards
February Euromoney Islamic
Best Project Finance Deal HSBC Amanah
2007 Finance Awards
February Euromoney Islamic
Best Sukuk Deal HSBC Amanah
2007 Finance Awards
HSBC Global Treasury
November Global Cash & Working Capital
Transaction Management
2006 Management Bank of the Year
Banking International
November Best Consumer Internet Bank - Global Finance
HSBC
2006 Global magazine
HSBC Global
October First place in International Cash
Transaction Euromoney
2006 Management Poll
Banking
HSBC Global
Global Finance
July 2006 Best Sub-Custodian Worldwide Transaction
magazine
Banking
HSBC Holdings IR magazine UK
June 2006 Best Corporate governance
plc Awards 2006
Overall winner FT Sustainable
June 2006 HSBC Financial Times
Banking Awards
Times Graduate
April 2006 Employer of Choice for Finance HSBC Recruitment Awards
2006
 Research methodology
I have conducted a survey to know the state of mind of the customers who
wanted home loan from hsbc bank and HDFC bank & also to know the
attitude and preference of the prospective customer regarding hsbc bnak and
HDFC bank.

A Questionnaire is designed by me to collect the needed information

regarding my survey. For my survey I have taken 100 existing and
prospecting customers, I got the questionnaire filled by them to know the
state of mind of the customers who wanted home loan from these banks,
their expected charges regarding the services agent brokerage, interest rates
& also to know the attitude and preference of the prospective customers
regarding hsbc bank and HDFC bank Results are cautiously viewed as
sample is coming from a specific population. The response that is generated
during this exercise is converted in the form of percentage to have a
comparative outlook. As the number itself cannot explain the true picture.
These percentage are then represented through the simple tools like Bar
graph, Pie charts etc…

Research Type : Descriptive Research

Data Type : Primary and Secondary data
Research Tools : Questionnaire
Observation
Enquiry
Sampling Units : Customer
Sample Size : 100
Sampling Method : Simple Random Sampling
Sample drawn from : Jaipur
3.1 Title of the study: - . Comparative analysis of HSBC & HDFC bank of
home loan”

3.2 Duration of project: - (30 Days ) In first 3 days prepared

questionnaire for consumers After that, in 20 days I collect primary data from
consumers. As per my project title the collection of data is from HDFC and
hsbc bank’s customers only. Then, in 3 days I collect secondary data. Finally,
in last 4 days I summaries the work by data interpretation, findings and
suggestions

3.3. Objectivity of the study

Every company has a particular goal. A study without objectives can not
reach the destination. My project work programme was also directed to some
particular targets and the main objective of the study are as bellow;
 Study of the customer behaviour regarding home loan.
 Study of the hsbc and HDFC home loan policy
 Study of the banking industry
 Customer satisfaction and awareness of hsbc and HDFC bank
The following survey was mainly done with an objective to know the state of
mind of the customers who wanted home loan from HDFC and hsbc bank &
also to know the attitude and preference of the prospective customers
regarding home loan with special reference to hsbc bank and HDFC bank
3.4 Type of Research: - Descriptive Research

Descriptive research, also known as statistical research, describes data

and characteristics about the population or phenomenon being studied.
Descriptive research answers the questions who, what, where, when and
how.
Although the data description is factual, accurate and systematic, the
research cannot describe what caused a situation. Thus, descriptive research
cannot be used to create a causal relationship, where one variable affects
another. In other words, descriptive research can be said to have a low
requirement for internal validity.
The description is used for frequencies, averages and other statistical
calculations. Often the best approach, prior to writing descriptive research, is
to conduct a survey investigation. Qualitative research often has the aim of
description and researchers may follow-up with examinations of why the
observations exist and what the implications of the findings are.
In short descriptive research deals with everything that can be counted and
studied. But there are always restrictions to that. Your research must have an
impact to the lives of the people around you. For example, finding the most
frequent disease that affects the children of a town. The reader of the
research will know what to do to prevent that disease thus, more people will
live a healthy life.

The main goal of this type of research is to describe the data and
characteristics about what is being studied. The idea behind this type of
research is to study frequencies, averages, and other statistical calculations.
Although this research is highly accurate, it does not gather the causes
behind a situation. Descriptive research is mainly done when a researcher
wants to gain a better understanding of a topic for example, a frozen ready
meals company learns that there is a growing demand for fresh ready meals
but doesnt know much about the area of fresh food and so has to carry out
research in order to gain a better understanding. It is quantitative and uses
surveys and panels and also the use of probability sampling.
Descriptive research is the exploration of the existing certain phenomena.
The details of the facts would not be known. The existing phenomenas facts
are not known to the persons

RESEARCH DESIGN OF THE STUDY

The study is based on survey technique. The study consists of analysis about
customer’s awareness and satisfaction of HSBC and hdf bank. For the
purpose of the study customers 100 are picked up and their views solicited on
different parameters. The methodology adopted includes

 Questionnaire
 Random sample survey of customers
 Discussions with the concerned

Personal interviews and informal discussions were held with HSBC and
HDFC . customers to ascertain the awareness and satisfaction level. Further
applying simple statistical techniques has processed the data collected.

Type of Data

In my project I have used both Primary & Secondary data.

For Primary Data: - I made a questionnaire and the questionnaire filled by the
prospective investors who wanted to invest in the capital market. and also
who had already invested in the stock market.
For Secondary Data: - I have taken the information from the official website of
hsbc direct .com that is www.hsbcdirect.com. And also from hsbc direct
.com proposal and so on.
Method of selecting sample: - Simple random sample

Random sample
A sample is a subject chosen from a population for investigation. A random
sample is one chosen by a method involving an unpredictable component.
Random sampling can also refer to taking a number of independent
observations from the same probability distribution, without involving any real
population. A probability sample is one in which each item has a known
probability of being in the sample.
The sample usually will not be completely representative of the population
from which it was drawn— this random variation in the results is known as
sampling error. In the case of random samples, mathematical theory is
available to assess the sampling error. Thus, estimates obtained from random
samples can be accompanied by measures of the uncertainty associated with
the estimate. This can take the form of a standard error, or if the sample is
large enough for the central limit theorem to take effect, confidence intervals
may be calculated.
Random sampling- all members of the population have an equal chance of
being selected as part of the sample. You might think this means just
standing in the street and asking passers-by to answer your questions.
However, there would be many members of the population who would not be
in the street at the time you are there, therefore, they do not stand any
chance of being part of your sample. To pick a random sample, it is
necessary to take all the names on the electoral register( a list of all the
people who live in a particular area) and pick out, for example, every fiftieth
name. This particular person needs to be interviewed to make the sample
truly random. Random sampling is very expensive and time consuming, but
gives a true sample of the population.
 Types of random sample

 A simple random sample is selected so that all samples of the

same size have an equal chance of being selected from the population.

 A self-weighting sample, also known as an EPSEM (Equal

Probability of Selection Method) sample, is one in which every individual, or
object, in the population of interest has an equal opportunity of being selected
for the sample. Simple random samples are self-weighting.

 Stratified sampling involves selecting independent samples from a

number of subpopulations, group or strata within the population. Great gains
in efficiency are sometimes possible from judicious stratification.

 Cluster sampling involves selecting the sample units in groups. For

example, a sample of telephone calls may be collected by first taking a
collection of telephone lines and collecting all the calls on the sampled lines.
The analysis of cluster samples must take into account the intra-cluster
correlation which reflects the fact that units in the same cluster are likely to be
more similar than two units picked at random.
 SAMPLING PLAN

 Sampling since segment wise customers in HSBC and HDFC

bank. are not available for the overall customers was considered for the
study. 100% coverage was difficult within the limited period of time. Hence
sampling survey method was adopted for the purpose of the study.

 Population: (universe) customers of HSBC and HDFC bank.

 Sampling size: A sample of hundred was chosen for the purpose

of the study. .

 Sampling Methods: Probability sampling requires complete

knowledge about all sampling units in the universe. Since due to time
constraint non-probability sampling was chosen for the study.

 Sampling procedure: From large number of customers of HSBC

and HDFC bank were randomly picked up.

 Field Study: directly approached respondents.

 DATA COLLECTION INSTRUMENT

COLLECTION OF DATA THROUGH QUESTIONNAIRES:

The data collected for the study purpose is through questionnaires. Hundred
customers of hsbc and HDFC bank have been selected randomly for the
study purpose and then the information revealed from the customers is
analyzed and interpreted in the study.

ORGANISATION OF FIELD WORK

Initial field work has done for pre testing tools for data
collection. The data is collected through the direct interaction with the HSBC’s
and HDFC’s customers through questionnaires answered by them. Hundred
customers of HSBC and HDFC’s were randomly chosen for the purpose of
the study in Jaipur

Scope of the study

The following survey was done parallel when a customer is going to take the
home loan from the bank. The study helps us to know the state of mind of the
customers & their expected charges regarding agent brokerage, time of
repay, Annual interest charges, and so on.
The agent house is also benefited as he came to know what an individual
customer expects when he or she is going to take the home loan..
Also if the agent house is lacking in some areas, what is that and how to
overcome that.
Limitation of the study

 As the sample size is very small, as only 100 customers is taken into
account. The data is not reliable. We cannot journalize the statement on the
basis of these results.
 Customers were in hurry so they were not interested to talk and also to
fill the questioner
 Some time customers fill half of the questioners and walk out of the
office
 Some customer feel shy in filling he questioner and talking about there
behavior.
 Time duration is not sufficient for research.
 SWOT Analysis of HDFC Bank

STRENGTH WEAKNESSES
• SEGMENTATION • TIMING SHORT
• PRODUCT FEATURES • MAINTENANCE
• WORK ENVIRONMENT CHARGES HIGH

• LOW DOCUMENTATION • HIGH INTEREST RATE

• CUSTOMER HAVE NOT
FULL INFORMATION ABOUT
GETTING FACILITIES

OPPURTUNITIES THREAT
• MERGED WITH • SBI BANK.
CENTURIAN BANK • OTHER BANK
• 1300 BRANCHES COMING (HSBC,PNB,AXIS etc)
ON VARIOUS LOCATION
• NAME AND LOGO WILL BE
NEW
 STRENGTH WEAKNESSES
• Right strategy for the • Some gaps in range for
right products. certain sectors.
• Superior customer • Customer service staff
service vs. competitors. need training.

• Great Brand Image • Processes and systems,

• Products have required etc

accreditations. • Management cover

insufficient.
• Good place to work
• Sectoral growth is
• Lower response time with
constrained by low
efficient and effective service.
unemployment levels and
• Dedicated workforce
competition for staff
aiming at making a long-term
career in the field.

Opportunities
• Profit margins will be good.
• Could extend to overseas
broadly.
• New specialist applications.
• Could seek better customer
deals.
Threats
Legislation could impact.
Great risk involved
Very high competition
prevailing in the industry.
Vulnerable to reactive
COMPETITIVE SWOT ANALYSIS WITH HSBC BANK

STRENGTHS WEAKNESSES

O
P S – O Strategies W – O Strategies
P
O
Strength: Large Capital base. Weakness: Workforce
R
T
Opportunity: Market Expansion. Responsiveness.
U
N
I
Opportunity: Outsourcing of Non –

T Strategy: Core Business.

I Deep Penetration into Rural
E Market. Strategy: Outsource Customer
S Care & other E-Helps.

S – T Strategies W – T Strategies
T
H
Strength: Low operating costs Weakness: Not Equal to
R
International Standards.
E
A
Threat: Increased Competition Threat: Entry of many Foreign
T
S
from others Pvt. Banks. Banks.

Strategy: Steps to Ensure

Loyalty by old Strategy: Consider additional
Customers. benefits

Detailed Analysis:
Strength - Opportunity Analysis.

Strength:

It is well know that HSBC Bank has the largest Authorised Capital Base in
the Banking System in India i.e. having a total capacity to raise Rs.
19,000,000,000 (Non – Premium Value).

Opportunity:

Seeing the present financial & economic development of Indian Economy

and also the tremendous growth of the IndianCompanies including
the acquisition spree followed by them,
it clearly states the expanding market for finance requirements and also
the growth in surplus disposal income of Indian citizens has given a huge
rise in savings deposits – from the above point it
is clear that there is a huge market expansion possible in banking sector in
India.

Strategy:

From the analysis of Strength & Opportunity the simple and straight
possible strategy for HSBC Bank could be - to penetrate into the rural
sector of India for expanding its market share as well as leading all other
Pvt. Banks from a great gap.

Strength - Threat Analysis.

Strength:

HSBC Bank is not only known for large capital but also for having a low
operations cost though having huge number of branches and services
provided.

Threat:

After showing a significant growth overall, India is able to attract many

international financial & banking institutes, which are known for their state of
art working and keeping low operation costs.

Strategy:

To ensure that HSBC Bank keeps going on with low operation cost & have
continuous business it should simply promote itself well & provide quality
service so as to ensure customer loyalty, therefore guaranteeing continuous
business.

Weakness - Opportunity Analysis.

Weakness:

It is well known that workforce responsiveness in banking sector is Very low

in Indian banking sector, though HSBC Bank has better responsible staff
but it still lacks behind its counterparts like HSBC, HDFC BANK, CITI BANK,
YES BANK etc.

Opportunity:

In the present world, India is preferred one of the best places for out –
sourcing of business process works and many more.

Strategy:

As international companies are reaping huge benefits after out-sourcing

there customer care & BPO’s, this same strategy should be implemented by
HSBC Bank so as to have proper customer service without hindering
customer expectations.

Weakness - Threat Analysis.

Weakness:

Though having a international presence, HSBC Bank has not been able to
keep up the international standards in providing customer service as well as
banking works.

Threat:

In recent times, India has witnessed entry of many internationalbanks like

CITI Bank, YES Bank etc which posses an external entrant threat to HSBC
Bank – as this Banks are known for their art of working and maintain high
standards of customer service.

Strategy:

After having new entrants threat, HSBC Bank should come up with More
additional benefits to its customer or may be even reduce some fees for
any additional works of customers.

FINDINGS
For HDFC bank:

 HDFC bank’s customers are more satisfied with the quality services.

 HDFC bank offers a wide choice of products for home loan to their
customers.

 Customers can click to get online information on their open orders

i.e. orders that are routed to exchange are waiting in the queue to be
executed can be viewed for their status.

 Home loan details for the customers are available online.

 Printed account statements too are available for earlier.

For hsbc bank:

 Most of the customer are not satisfied with theprocessing of the

bank.
 The fees charges are very high of the bank.
 Hsbc bank has many customer of 35-40 years of age
 Analysis and Interpretation
Sample size 100

Q.1 Profile of Respondent

a) Businessman 25
b) Entrepreneur 35
c) Working Professional 36
d) Govt. Service Employee 4

40 35 36
35
30 25
25
20
15
10
4
5
0
govt.service
professional
Entrepreneur
businessman

employee
working

a) b) c) d)

Interpretatiopn:-
a) There should be main focus on the govt.employee.
b) most of the customer are working professional $ self employed
Q.2 Which Bank would you prefer for home loan?

a) HDFC 53
b) HSBC 38
c) Others 9

60
53
50

38
40
Series1
30
Series2
20
9
10

0
HDFC HSBC OTHERS

a) b) c)

Interpretatiopn:-
a) most customer preferred HDFC bank
b) hsbc bank has the less customer than HDFC bank
Q.3 Who influence you more to take home loan from the bank?

HDFC HSBC
a) Friends/Family 22 14
b) Agents 27 22
c) Others 12 16
d) Advertisements 39 48

60
48
50
39
40
27 HDFC
30 22 22
HSBC
20 14 16
12
10
0
advertisement
friends/family

others
agents

a) b) c) d)

Interpretatiopn:-

a. Advertisment is most influence while selecting the bank for home loan
b. Others sources less influence so try to increase the influence of other sources
Q.4 Respondent’s Age Group

HDFC HSBC
a) 20-30 yrs 17 15
b) 30-40 yrs 11 24
c) 40-50 yrs 27 12
d) 50-60 yrs 8 6

30 27
24
25

20 17
15 HDFC
15 12
11 HSBC
10 8
6
5

0
20-30 30-40 40-50 50-60

a) b) c) d)

Interpretatiopn:-

a. 40-50 yrs age group person prefer the HDFC Bank for Home loan.
b. 30-40 yrs age group person prefer the HSBC Bank for Home loan.
c. HDFC Bank should foucs on 30-40 & 20-30 yrs age group person.
Q.5 Before taking home loan, what aspects do you consider?

HDFC HSBC
a) Interest Rate 74 67
b) Bank Image 7 5
c) Time Repay 4 7
d) Pre/Post Purchase Service 15 21

80 74
67
70
60
50
HDFC
40
HSBC
30 21
20 15
7 5 4 7
10
0
interest bank time of pre/post
rates image repay purchase
service

a) b) c) d)

Interpretatiopn:-

a) more customer consider interest rates

b) customer less prefer the time of repay
c) bank image consider by the some customer
Q.6 How do you consider the HDFC bank regarding the services and scheme?

a) Good 43
a) Not Good 27
c) Excellent 16
d) Average 24

50
45 43
40
35
30 27
25
20 16
14
15
10
5
0
good not good excellent average

a) b) c) d)

Interpretatiopn:-

a) most customer gave good ranking the bank

b) only few customer are fully satisfied by the bank’s service
Q.7 How do you consider the HSBC bank regarding the services and scheme?

a) Good 39
b) Not Good 21
c) Excellent 15
d) Average 25

45
39
40
35
30
25
25 21
20
15
15
10
5
0
good not good excellent average

a) b) c) d)

Interpretatiopn:-

c) most customer gave good ranking the bank

d) only few customer are fully satisfied by the bank’s service
Q.8 Which type of home loan would you prefer from HDFC/HSBC Bank?

HDFC HSBC
a) Home construction loan 65 74
b) Home improvement loan 22 14
c) Home extension loan 4 8
d) Land purchase loan 9 4
e) NRIs loan 0 0
f) Others 0 0

80 74
70 65
60
50
HDFC
40
HSBC
30 22
20 14
8 9
10 4 4
0 0 0 0
0
improvement

NRIs loan
construction

purchase
extension

others
home

land

loan
loan
home

home
loan

loan

a) b) c) d) e) f)

Interpretatiopn:-

a) most of the customer prefer home construction loan

b) only some customer prefer home development loan
c) no customer prefer NRIs loan
SUGGESTIONS

FOR HSBC
 Some customers feel that they are trained for HSBC Direct.Com demo.
Many customers feel that batch of 15 are good for HSBC bank.

 Survey reveals that most of the customers are not aware of the service of
the hsbc and HDFC bank. So for this HSBC bank ., should create an
awareness of what exactly mean by and all other services of HSBC bank.

 Customers are facing over crowding, non-availability of telephone lines, so

proper measures should be taken to overcome these problems.

 The HSBC bank should conduct regular training demo classes for the new
agents.
 CONCLUSION

AREAS IN RESEARCH:-

In my report I have tried to show the basic different between the Home Loan
of HDFC & HSBC. Both the Banks are good in terms of customer satisfaction
.Between those HDFC is preferred for this activity because it is more approachable
for the customers. Process of loan financing is more linent in HDFC bank.Family
members & increasing standard of living plays an important role in infiuencing the
decision of taking home loan.

For hsbc
• Hsbc bank is performing very well in the field of home loan business
and having very good administration also.

• Each departments doing their job very well comparing to the standard
performance fixed by the management and it leads to overall good
performance of the company.

• There existing a good relationship between employees and

management

• The management taking keen interest for finding their weakness and
try their level best to overcome this weakness
For HDFC bank

 HDFC Bank is Leading Bank in hoe loan inthe country, it

provides a variety of products and services to different segments of
customers.

 The Bank aims to serve customers from teenagers to senior

citizens, hence different products designed to suit specific requirements of the
above.

 Aims to serve all classes of the society from the salaried middle
class to the high income business class.

 Customers are categorized and segmented according to their

requirements and needs.

 For Example , the Saving Regular and Plus Account aims to

serve middle class customers so minimum balance required to be maintained
is RS.5,000/- or RS. 10000. While the Saving Max Account is targeted at high
income customers, the minimum balance requirement is RS.25,000.

 HDFC Bank provide home loan at low interest rate which good
for customers.
 APPENDIXS
Questionnaire

Name of Respondent:____________________________________________
Address:________________________________________________________
Phone No:______________________________________________________
E-Mail:________________________________________________

Q.1 Profile of Respondent

a) Businessman 25
b) Entrepreneur 35
c) Working Professional 36
d) Govt. Service Employee 4

Q.2 Which Bank would you prefer for home loan?

a) HDFC 53
b) HSBC 38
c) Others 9

Q.3 Who influence you more to take home loan from the bank?

HDFC HSBC
a) Friends/Family 22 14
b) Agents 27 22
c) Others 12 16
d) Advertisements 39 48

Q.4 Respondent’s Age Group

HDFC HSBC
a) 20-30 yrs 17 15
b) 30-40 yrs 11 24
c) 40-50 yrs 27 12
d) 50-60 yrs 8 6
Q.5 Before taking home loan, what aspects do you consider?

HDFC HSBC
a) Interest Rate 74 67
b) Bank Image 7 5
c) Time Repay 4 7
d) Pre/Post Purchase Service 15 21

Q.6 How do you consider the HDFC bank regarding the services and scheme?

a) Good 43
a) Not Good 27
c) Excellent 16
d) Average 24

Q.7 How do you consider the HSBC bank regarding the services and scheme?

a) Good 39
b) Not Good 21
c) Excellent 15
d) Average 25

Q.8 Which type of home loan would you prefer from HDFC/HSBC Bank?

HDFC HSBC
a) Home construction loan 65 74
b) Home improvement loan 22 14
c) Home extension loan 4 8
d) Land purchase loan 9 4
e) NRIs loan 0 0
f) Others 0 0

Q.9 Comment on bank formalities regarding to home loan.

…………………………………………………………………………………………………
…………………………………………………………………………………………………
……………………….
 BIBLIOGRAPHY

• Magazines of SBI & ICICI bank Fact.

• Booklet of both banks.

OFFICE:-
• Visited local offices of HDFC & HSBC Branches.
• Visited HSBC Branch in C- Scheme.
MAGAZINES:-

• Business world
• Business today
PERSONAL:-

Met Customers of the respective Banks & ask their views regarding HOME
LOANS.

KNOWLEDGE THROUGH T.V.:-

Watched Ad’s of Both the Banks ,they helped us in Knowing about the banks
& raised our interest in the topic.These Ad’s were the first source of information
about the banks. They helped in choosing the topic.

NEWSPAPER :-

• Economic times
• Times of India
• DNA
WEBSITES

• www.scribd.com
• www.economicwatch.com/banking

• http://en.wikipedia.org/wiki/bank

• www.sbi.org