1.2.

OBJECTIVES OF THE STUDY

1.2.1. Identification Of The Problem To study and learn the various systems and procedures used by the bank in lending to housing sector. To identify the problems faced by the bank in attracting more customers to use its home loan products. To identify the problems faced by the bank at various stages of undertaking the home loans. To understand and identify difficulties in the home loan asset management practices of the bank. To study the valuation of collateral security method followed by the bank while lending the home loans.

1.2.2. Offer A Solution To The Problem There has been an increase in the Approvals to Enquiries Ratio from the year 2006 07(81.5%) to the year 2008-09 (95%) and a slight decrease in the next year to 83.3%. However, there has been huge improvement in Sanction-Disbursal to Approvals ratio to 96% in 2008-09 from average Ratio of 83.3% in the preceding years. One can understand the trend in terms of transforming the stringent system to hasslefree system.

1.3.

NEED OF THE STUDY

It has been felt very useful in future To study the roles of the staff and the decision making processes in lending to the home loan borrowers. To learn and comprehend thoroughly the systems and Procedures used in financing the segment. To analyze the issues relating to various financial aspects of lending. To calculate the risk involved and how the risk and uncertainty to be assessed and managed by the bank while lending the home loans. To study the valuation of collateral security method followed by bank while lending the home loans.

1.4.

SCOPE OF THE STUDY

The present study is confined to Home loan products offered by the domestic operations of State Bank of India. The study is also confined to the internal functional and operational aspects of the lending process. The data collected here, is specific to:

The selected branch as said before. The time period covering the financial years: FY10-11-Q1FY10. The data and the information could be collected here has been taken from the record books maintained by the branch and from the oral communication with the branch manager.

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1.5.

RESEARCH METHODOLOGY

1.5.1. Research Design The study done is exploratory in nature. The branch of the bank was selected by convenience and for the sake of access to the qualitative information. For the latest information and focus, the study is confined to the systems and procedures in lending and the time period as said above.

1.5.2. SOURCES OF DATA The data and the information presented here have been collected mainly from two kinds of resources:

1.5.2.1. Primary sources

Direct and oral interaction with the Bank officials, particularly, the branch manager via a Questionnaire, a copy of which is made available in the APPENDIX. The Record books maintained at the branch office. 1.5.2.2. Secondary sources

Several secondary resources have been referred for collecting first hand information and literature on the subject that includes: The Training and Guidance Material supplied to the staff of the Branch. Annual Reports of RBI. Online Annual Reports by Consultancy and Research companies. Online Content of the Banks Website. The material supplied by the Faculty Guide. Several websites on personal loans and Daily News Papers like Economic Times of India and Business Standard. The details of which have been presented in Bibliography.

1.6.

TOOLS AND TECHNOLOGIES USED

1.6.1. Statistical techniques: Percentages. Averages and Tools like Tables, Bar Charts and Pie charts

1.6.2. Hardware and Software Technologies: Home PC with Internet access MS Word and Excel-2003. World Wide Web or Internet 11

1.7.

LIMITATIONS OF THE STUDY

Some of the limitations of the project that were encountered during the study are:

In case of interaction with the representative of a particular bank it happens many a time that the representative cannot disclose all the data because of certain reasons like banks privacy policy etc. thus getting clear picture about the service provided is not possible. Due to paucity of time, only important factors have been analyzed and discussed. To collect the data from various banks was quite difficult due to non-cooperation of some banks. This proved to be major limitation of the study. To access such a large number of customers was difficult because of non-cooperative attitude of respondents. Lack of data was also the other limitation of the study as some of banks do not have proper data on topic. There was limitation of time to conduct such a big survey in limited available time. Generally the data on the websites of the banks are not fully disclosed i.e. other than the charges mentioned on the website there are many hidden charges which increases the cost like service charge etc Ignorance and reluctant attitude of customers was also a major limitation in this study. I have tried a lot to overcome the above mentioned limitations as far as possible.