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Comprehensive Study of Retail Loans: A Project Report On
Comprehensive Study of Retail Loans: A Project Report On
On
undertaken at
2005-2007
1
BANK OF PUNJAB LTD.
We Value Relationship
2
ACKNOWLEDGEMENT
First and foremost, I wish to thank Mr. D.P. Singh (Personnel) for providing me
constant encouragement and regular ides feedback for contributing maximum in project.
I am also very thankful to Ms. Richa Galhotra (poject guide ) keen interest in project
Further, I would also like to thank all the employees of Bank of Punjab Ltd. Panipat and
all the responded of survey, without whom it would be impossible for me to complete the
project.
Last but not the least, my sincere regards to Mrs. Pooja Walia (H.O.D, MBA Deptt.) and
all faculty members of N.C College Of Engineering Israna (Panipat)for their pain stalking
3
EXCUTIVE SUMMARY
The introduction and application of the concept of customer services entered in a
welcoming way in India only after independence. The banking system in India has come
a long way during the last two centuries. Its growth was faster and the coverage wider
since 1969. In 1969a major position of banking sector was entrusted to the public sector.
The transfer of ownership of banks from the public to private was aimed at
entrusting the banks with greater responsibilities for the economic development of India
by taking banking services to the masses and taking special care of the weaker section of
the society and the priority sector of the economy. Though the number of banks offices
magnitude and the variety of their operations have grown considerably during the period
of near about three decades, but it appears that the banking sector has entered into serious
among customers.
For overcoming this problem, banking industry should seek introspection and adopt
refined management techniques. It has been endeavor of this study to analyze the present
state of various banks keeping in view the primary data has been collected regarding the
4
DECLARATION
I, Swati Kathpal, hereby declare that the Dissertation on
“Comprehensive study of Retail loans” at Bank of Punjab, Panipat assigned to me for the
This report is not submitted to any other institute or university for the award of any other
degree.
Swati Kathpal
MBA
NCCE, Israna.
5
CONTENTS PAGE NO
Certificate 1
Acknowledgement 3
Executive summary 4
Declaration 5
Introduction of Bank 7
Bank of Profile 11
Project overview 27
Objective of Study 71
Research methodology 73
Limitations 89
Suggestions 91
Conclusion 94
Bibliography 96
6
INTRODUCTION
7
INTRODUCTION OF BANK
In the modern era, Banking constitutes the fundamental basis of
economic growth. the term is being used since longtime but there the benefits of using
money as medium of exchange, people would deposits and make loans i.e. the modern
commercial banks.
In India as early as Vedic Era, banking existing in its crude form. The words of “Manu”
contain reference deposits, pledge policy of loans and rates of interest etc. The original
banking operations were in the hands of indigenous banks who dominated the finance to
the extent that they provide credit to the government of the day also.
The origin of the word” Bank” is shrouded in mystery. According to one viewpoint, the
Italian business house carrying on crude form of banking were called “Banchi Bancheri”
According to other viewpoints, the word bank is derived from German word “Banck”
which means a heap or a mound. Subsequently Italians start edusing the name “Banco”.
Which meant accumulationof either money or stock. In England, the issue of paper
money by the government was refered to as raising a bank. But it can be safely assumed
8
Definition of Bank
The first bank was “Casa de san Giorgio” that was established in 1148. To define
the bank is not an easy task as it appears one which accepts deposits from public and lend
money.
-Cairncross
“Bank company is one which transect the business of banking which means accepting for
the purpose of lending or investment or deposits from the public payable on demand or
in short, a bank is an institution that accepts deposit withdrawal by cheque and makes
Thus:
9
Aims at earning profit on demand or otherwise and withdrawal by cheque, draft, order or
otherwise”
in short, a Bank is an institution that accepts deposit withdrawal by cheque and makes
Thus
10
BANK PROFILE
11
ABOUT BANK OF PUNJAB
Bank of Punjab opened its first branch at Chandigarh in April 1995. in a short span of 8
The first bank in north India to install a state of the art ATM payment gateway
allowing online transactions. Till today the only such gateway in north India.
The first bank to introduced Fax banking & Tele banking for its customers.
Leveraging the strength of technology, the first bank to offer extended banking
Realizing the importance of Human Resources, the firs among peer banks to set
Bank of Punjab has a wide area network of branches across the country. Customers in
excess of 55, 63, 07 serviced by a team of 961 dedicated Professionals the bank has
12
At its very inception, the bank’s public issue in March 1995 of Rs. 29.52 million was
Merchant establishment which would be accepting the bank’s ‘e-Bank’ card and maestro
As a tribute to the memory of its founder Late Dr. Inderjit Singh and his commitment of
giving the very best to customers, employees and the world of banking, Bank of Punjab
has set up a state of the art Dr. Inderjit Singh Institute of Banking and Insurance
Management at Gurgaon, near Delhi. The first among peer banks, the residential institute
extensive library and the latest IT tools. The institute provides an ideal learning
13
Founder of Bank of Punjab
The founder of Bank of Punjab was Dr. Inderjit Singh. He was born in Musakhel (Now in
Pakistan) on 22nd November 1911. Late Dr. Inderjit Singh started his Banking career in
1932 with Central Bank of India and became the Chief Executive of Punjab & Sind Bank
in January 1960. he remained t the helm of the affair of this bank for 22 long years till his
retirement in 1982.
After Liberalization of the banking sector, Dr. Inderjit Singh was granted permission to
set up a bank in private sector by Reserve Bank of India. He founded the Bank of Punjab
Ltd. Which started functioning in April 1995, and nursed it till his death in October 1998,
with the result that the bank has established itself in the Indian Banking industry in a
short span.
A visionary-far ahead of his era-he realized the importance of training, education &
building of institutions. He is perhaps the only person to have been responsible for
building two successful institutions in the banking sector-Punjab & Sind Bank and Bank
of Punjab Ltd.
Dr. Singh, an unparalleled success story, spent a substantial part of his time and resources
in working for the upliftment of the weaker section of the society. Till the time of his
death, he was an active social worker ho was the guiding force behind many social and
educational institutions.
14
Dr. Inderjit Singh made considerable contribution to the development of the economy of
the country in general and northern region in particular, especially the agricultural
services to the community. Bank of Punjab plans to set up an institute for banking and
insurance for honoring the skills of existing professionals and initiating people in the
trade.
His place as a visionary and meticulous thinker will remain unfilled for a long time. He
banking, finance, education and economic development, the Khalsa Panth conferred the
the tercentenary of the Khalsa at Sri Anandpur Sahib on April 14,1999. Dr. Inderjit Singh
is the second person to be honored with this rarest of the rare award.
His quality of head and heart will continue to be remembered by the future generation.
15
Achievements
From the deposit base of Rs. 2342.17 crores in the first year ended march 1996, deposits
of the bank has grown to Rs. 3244.78 crores in year ended December 2001, an annualized
growth of 200% over the last 4 years. The bank is positioning itself at the leading edge of
technology and is coming out with various technologies cards, smart cards and online e-
commerce.
The bank has already launched its e-banking services and mobile phone banking for its
The bank has put in place a 24 hour’s customer care center enabling secure online
Bank of Punjab has made a strategic tie up with Master international for its MASTERO
and CIRRUS International Card Network at on-site Branches and offsite locations will
Over and above its own ATM network the customer of Bank of Punjab also be able to
access hundreds of ATMs of other Master Card member banks in India and over
5,40,000 worldwide displaying ‘CIRRUS’ logo. The bank’s reach is further being
16
BUSINESS FOCUS
Bank of Punjab Ltd. has been focusing on following market segments.
Commercial sector
Commercial sector including trade, industry and services are being served by a
comprehensive range of tailor made priority basis. The bank is trying to identify suitable
available avenues for credit deployment by seeking services to meet their specific
requirements. These include both fund based and not based facilities.
Agriculture sector
Personal Banking
The thrust has been on attracting deposits from individuals having high net worth by
developing now product/ schemes and meeting their credit requirement for customer
durable.
17
Forex business
It comprises of export financing as well as NRI related businesses have received special
attention. An NRI cell has been set up to cater exclusively to the requirements of this NRI
clients.
18
MISSION & BUSINESS STRATEGY
The mission of Bank of Punjab Ltd. is to be a world class Indian bank which is bench
marked against international standards and best practices in term of product offering,
technology, services levels, risk management and audit compliance. The objective is to
services for target retail and while sale customer segments and to achieve a health growth
in profitability, consistent with the bank’s risk appetite. They are committed to do this
while ensuring the highest level of ethical standards, professional integrity and regulatory
compliance.
BOP market shares in India’s expanding banking and financial services industry
BOP Leverage technology platform and open scalable system to deliver move
19
BOP Maintain current high standards for asset quality through disciplined credit
risk management.
BOP develop innovative products and services that attract our targeted customers
BOP continue to develop products and services that reduce cost of funds; and
20
VISION
To be financial supermarket adding values to customers shareholders and employees by
2005 the bank is looking at a total business volume of Rs. 160 billion deposits at Rs. 100
21
BOARD OF DIRECTORS
P. Sudhir Rao
Bharat C. Raghavan
Digvijay Singh
Rajender Kumar
R. V. Iyer
V.N. Koura
Dr. A. S. Narang
22
Organization Structures
23
Category No. of Shares Held
1. Promoter’s Holding
Promoters:
Non-Promoters Holding
3 Institutioanal Investors
B Banks, financial
Institutions, Insurance
Companies (Central/State
24
C Flls 5,91438
4 Others
Bodies
D Any Other
Trusts 8000
25
PRODUCT RANGES
Saving account
Current account
Fixed deposits
Flexi deposits
Recurring deposits
Relationship discount
Overdraft facility
Foreign exchange
E-Pay
De-mat account
Anywhere banking
Auto loans
Home loans
Education loans
Mobile banking
Exchange rates
Cash management
International trade
26
NRI services
Debit card
BANK LOANS
27
INTRODUCTION TO LOANS
Leading of fund to the constituents, mainly traders, business and industrial enterprises,
constitutes the main business of the banking Company. The major portion of a Bank fund
is employed by way of loans, which is the most profitable employment of its fund. The
major part of bank is earned from interest. The business of leading, nevertheless is not
without certain inherit risks largely depending on the borrowed funds, a banker therefore,
follow a very caution policy, and conduct his business on the basis on the basis of safety,
MEANING OF LOANS
Under the loans, credit is given for a definite purpose and for a predetermined period.
Normally these loans are repayable in installments. Funds are required for single non-
repetitive transactions and are withdrawn only once. If the borrower need funds again or
28
This borrower is required to negotiate every time; he is taking a new loan or renewing an
existing loan. Banker is at liberty to grant or refuse such a request depending upon his
TYPE OF LOANS
Bank grants loan for different periods short, medium and long and for different purposes.
Short-term loan is granted to meet the working capital needs of the borrowers.
These loans are granted against securities of tangible assets mainly the movable assets
like goods and commodities, shares, debentures etc. Since April 1995, RBI has made it
mandatory for the banks to grant a portion of bank credit to big customers in the form of
loans, which may be for various maturities. The RBI has also permitted the banks to roll
over such loans i.e. to extend the loan for another period at the expiry of the tenure of the
first loan.
29
Medium and long-term loans are usually called ‘Term loans’. These loans are granted for
more than one year and also meant for the purpose of capital asset for establishment of
new expansion or diversification of an existing unit. Banks usually grant such loans
In April 1995, RBI banned bridge loan granted by banks and financial institutions to all
companies. But in oct. 1995, RBI permitted banks to sanction bridge loans /Interim
finance by banks subject to some conditions in no. 1997, RBI permitted to banks to
grants bridge loans to companies (other than non-banking finance companies) against
4. Composite Loans
When a loan is granted both for buying capital assets and for working capital purpose it is
called composite loans. Such loans are usually granted to small borrowers such as
5.Retail loans
30
These are loans that are given to individuals for their purpose, Retail loans can be
Housing loans.
This is the loans scheme that is offered to individual for constructions of house, purchase
of house, plot purchase, repair, renovation, purchase of flat from private builder, for
furnishing etc. This is one of the retail product thus involve colossal volumes in terms of
Education loans
Education loan is given to the students for further studies in India and abroad both. This
loan can be for air fare travel expenses admission/tuition fees, boarding and lodging
Auto loans
31
Auto loan is given to individual to buy old/new car and two wheeler. It is very popular
loan among borrowers as today everyone want vehicle in their home and bank provide
Personal loan
Though normally banks provide loans for productive purpose only, but as a exception
loans are granted on a limited scale to meet the medical needs or the educational
expenses or expenses relating to marriage or other social purpose of the needs persons.
32
ADVANTAGE OF LOANS
As the time of repayment of loans or its installments is fixed. In advance, these systems
ensure a greater degree of self discipline of borrower as compared to cash credit system.
Whenever a loan is granted or its renewal is sanctioned, the banker gets an opportunity of
Profitability
33
System is comparatively simple, interest occurs to the bank on the entire amount lent to a
customer.
DRAWBACK OF LOANS
Every time loan is required. It is to be negotiable with the banker. To avoid it,
borrower may borrow in excess of their exact requirement to provide for any
contingency.
Bank have no control over the use of fund borrowed by the customers, however
Though the loans are for fixed period but in practice they roll over i.e. they are
renewed frequently.
34
RETAIL LOANS
Loan become necessary for every money minded person. .From this way they can invest
their money in other profitable purposes . The best coming way to get loan for building
home for buying automobiles or education of your for personnel purposes is provided by
Bank Of Punjab ltd. at preferential rate of interest . If you are eligible for loan then u will
have money in hand in very few days. The bank will provide you the facility of re
payment in easy installments the loan are made available at your doorstep.
35
HOME LOANS
36
Introduction to Home loans
BOP. The bank will take over the loan from that institution.
Composite scheme: .Building a home is one of the most important decision that a
person will make and it can consider and life style and financial circumstance. Bank of
The bank offers an array of low cost customized home loan schemes for convenience of
customer.
37
Easy loans for purchase of plot.
Tax Benefits Acquiring a home through Finance schemes provides tax Benefits on the
principal repayment.
need for home provides security against which can raise funds unforeseen financial
needs
Purpose of loan
unit at least one bedroom, kitchen, and bathroom as per map approved by authority.
Purchase of House flat : Purchase would mean purchase of complete dwelling unit
required for a family.
dwelling unit.
38
Land purchase cum construction: Combined for loan for purchase of plot and the
construction given in the ratio of 50% of loan amount or 85% of the cost of property
being purchase which ever is lower. The construction of house will necessarily be
10 years in this case interest rate will be 1% higher than the normal scheme the bank
Purchase of Plot: BOP provides 85% of the cost of plot. Interest will be 1% higher
than normal interest rate. The bank finance maximum of 25 lakhs for a term of 2 years.
Takeover/balance Transfer: If the person has taken loan form any other institution
and he is not satisfied with the facilities provided by that institution then he/she can
39
Elighbility for Home loans:
Residential Indian
Any Indian citizen having sufficient repayment capacity to the loan applied can
The age of applicant should not be less than 21 years at the time of applying of
loan
The age of applicant should not exceed 65 years during the loan tenure.
Non-Residential Indian
40
Any Indian citizen who is a non-residential and holding valid Indian passport can
The person who is applying for loan need to provide security of the financed property
• Income documents
41
• Documents pertaining to savings and assets
• Residential Proof
Bank statements for last six months- both domestic and international
General power of attorney as per bank’s draft duly attested by the Indian
attested)
42
Copy of labour/identity card (Translated to English and attested )
Processing Fees :
Processing fee will be 0.20% of the loan amount payable with the application and 0.20%
Repayment:
cheques are to be permitted by RBI or NRE/NRO (For NRI). The EMI is to be paid every
month through post-dated cheques (PDC). In case of part disbursement of the loan,
monthly interest is payable at disbursed amount. This interest is called pre EMI interest
(pre EMI) and is payable monthly till disbursement is made or till commencement of
EMI.
43
Interest rate & EMI
44
48 7.50 2404.85 2449.77
45
ROI for Repair/Renovation
TENOR ROI
46
EMI Chart for Plot Loan;
12 8.50% 8668.75
24 8.50% 4517.80
36 8.50% 3137.47
48 8.50% 2449.77
60 8.50% 2039.12
47
72 8.75% 1778.92
84 8.75% 1586.21
96 8.75% 1442.95
48
Maximum Quantum of Loan :
49
scheme Rs. 100.00 lacs
For higher loan quanta, the cases are put up to MD committee or Board of Directors as
• Not withstanding the above, the maximum loan quantum that could be advanced
2 Renovation/Repair 10 years
3 others 20 years
50
Loan to Cost Radio (LCR):
2 Repair/Renovation 75%
3 NRIs 75%
4 others 85%
51
Launch of new scheme of BOP- Home Loan with
Top up
Keeping up with of the volume in home loans and demand of the market for innovation
BOP has launched the new scheme of Top up loans (over & above of home loans
component) targetd as taking over loans from other institutions by offering the top up
portion and secondly to retain the existing customer from going out.
The loans term for top up will be same as for home loans or lesser but not more.
The loan amount would be up to 10% of original loan amount at the condition of
satisfactory track record of 6 months, 20% of original loan amount at the condition of
52
The PDCs will be obtained from borrowers for repayment of the loan amount in the same
The product shall be marketed through BOPs Home Loan Executive & also through
DMAs.
The Top up component has to be closed prior to the home loan and no pre closure of
home loan will be allowed during the pending of the personal loan.
ORIGINAL
2) Documentation kit duly executed by the borrowers and notarized & stamped.
53
8) Technical report or valuation report obtained from banks panel valuer /demand
and conditions.
10) Margin money receipts from builder/ society for BOP disbursement.
from where the loan is taken over(in case of take over of loans)
14) Proof for having the collateral pledged/assigned/lien noted in favor of BOP.
COPIES
2) Appraisal sheet
3) Identity Proof
5) F I report.
6) Detailed Estimation
54
9) Profile of the business on the better head in case of self employed
12) Approval plan attested by the builder and the borrower in cases of property from
following formalities.
55
The disbursement are normally carried our by way of cheque, though draft may also be
extension.
Cheques will be drawn on the name of the person who is selling property.
Advocates
Police
Leaders
56
This particular scheme caters to the requirement of the following at very attractive rate of
interest.
Education of children
Wedding
House renovation
mentioned 3 purposes.
The person who has already taken the loan for any other purpose & from any
57
BOP provide loan on easy documentation.
58
PERSONAL
LOANS
For many thinks in life that make happy, like furnishing home, buying a PC, an exotic
holiday, best education for children or a wedding in family. BOP offers a broad range of
59
BOP personal loans are hassle free, quickly approved and are on very attractive interest
rate. And of course also have advantage of repaying in convenient Equated monthly
installment (EMI).
No prepayment penalty.
No personal guarantee.
No hidden costs.
Loan Details ;
1. Eligibility :
60
The person who is applying for loans should be between the age 25 and 58 years. The
person is eligible only if he/she is an employee of central Govt., PSU or a Public Limited
Loan amount.
Aperson can get loan from Rs. 25000/- to Rs. 3,50,000/- based on annual income.
Repayment:
installments.
Processing fees :
61
In the case of four wheeler loan, previous or existing loan account track record of at least
In case of Home Loans, customer’s good track record of regular repayment on due dates
Maximum loan amount is 2 lacs. In case of Auto loans under no income proof category
Customer having track of any bank/financial institution can also avail personal loan.
Documents required :
Identity proof:
62
Voter ID card
Passport
Driving license
Employer’s card
Residence Proof:
Ration card
Telephone bill
Electricity bill
Voter’s ID card
Latest bank statement of passbook(where salary /income is credited )for last six
months.
Latest salary slip showing all deductions or current dated salary certificate (in
Computation of income for the latest year certified by a CA(in case of self
employed)
Condition apply:
63
Advantage of personal loans
64
Bank of Punjab provides loans at competitive rate of interest. The
No Prepayment penalty
If the customer want to pay the loan then bank will not change pre-
payment penalty.
Bank of Punjab charge lowest processing fees than other bank. The processing
No personal guarantee
No hidden costs
All the costs changed for availing loans would be transparent No hidden charges
65
Longer repayment period:
If a person get loan from BOP then the bank provides the facility of repayment for
long term.
Bank of Punjab provides special facility to existing customer of the bank . It can
Easy installments:
66
EDUCATION
LOANS
67
The high cost of education in premier institutions need no longer stand
between a career aspiration. If a person have ambition and want to drive, then BOP will
While plan for education in world class universities, BOP education loans will take care
of all expenses from travel to accommodation and tuition fees to purchasing computer.
BOP believes in making career happen. So, it provides loan at easy and quick processing.
The bank provides loan after being sure that the candidate has secured admission in
Recognized university/institutions.
The loan will be sanctioned both for admission in India and foeign.
University/institution.
68
The person will be Eligible for loan only of
The loan can be claimed for all fees from Admission/Tuition fees to
stationary, and instrument equipment computers to those spend on tours, project work,
thesis. All expenses of air fare/Travel, Boarding and Loading expenses or even the cost
In short, BOP take care of all finance for planning about college days.
Loan amount.:
The maximum loan amount for study in abroad is Rs. 15 lacs & for study in India is Rs.
7.5 lacs.
Rate of Interest :
69
For loan upto Rs. 4 lacs, the rate of interest is the prime lending rate which is 12.5%
presently and for loan above Rs. Above 4 lacs, it is prime lending rate plus 0.50% which
presently is 13% . simple interest will be charged during the study period. A rebate in
interest may be considered if the interest is serviced during the study period.
Loan payment
Loan payment or disbursal will be need based. The admission/tuition fees and
Repaymentof loans :
Loan repayment can commenced 6 month after the courses completion one month after
Documents Required:
70
The following papers/documents should accompany the application form to be executed
Identity Proof
Age proof
Proof of Residence
university/institution.
71
OBJECTIVE
72
OBJECTIVE OF STUDY
The study is the part of academic curriculum of 2 years MBA therefore the primary
objective of this study is to fulfill the requirement for the award of MBA degree of
The present study was carried out with the objective to know Scope of retail loans
in panipat and its various catchment areas of Bank of Punjab Ltd. so as to know strength
and weakness of loan schemes of Bank of Punjab Ltd. so that strengths can be increased
73
REASEARCH
METHODOLOGY
RESEARCH METHODOLOGY
74
Research Methodology in a way is systematic representation of research or any other
problem. It is a written game plan for conducting research. It tends to describe the step
taken by a researcher in studying the research problem along with a logical background.
It tends to describe methodology for solution of the problem that has been taken for the
purpose of study this project focuses on the methodology for technique used for the
collection, classification & tabulation of the data. This plan throws light on the research
problem, the objective of study & limitation of the study. Therefore, in order to solve a
problem, it is necessary to design a research methodology for problem as the same way
The Projects
The project undertaken during the summer training at “Bank of Punjab Ltd.” was
The main aim of the study is to understand the “Retail Loans” provided by “Bank of
Punjab Ltd.”
It is the bank which understand the need of it customers & provides them best facility.
Nature of study
75
The nature of the study is that it has an applied base. The statement indicated that result
obtained from the study, inference drawn from the study can actually be appiled
practically & can be of great help to the customer to know about Retail loans in more
comprehensive way.
Scope of study.
The study is restricted to Panipat itself. It aims at getting an insight in to Retail loan. It
also aims at familiarized with the customer during the market survey help me a lot in
Objective of study
The main objective of the study is to understand the Retail loans provided by bank of
Punjab . the objective was successfully achieved by performing the detailed survey of 5
other banks. The questionnaire for survey study was prepared keeping in mind the
following :-
76
• To know the awareness among the common man about loan which they want to
take.
77
Type of Research
procedure, which is followed step by step to solve a particular research problem. There
EXPLORATIVE RESEARCH
DESCRIPTIVE RESEARCH
DIAGNOSTIC RESEARCH
Explorative Research
Descripitive Research
group.
Diagnostic Research
78
To determine the frequency with which something occurs or with which it is
descriptive research is the description of the state of the affairs as it exits at presents. The
main characteristics of this method are that the researcher has no control over the
Research Process
79
There are Six steps of Designing A Research Report.
As this research project is about the comprehensive study of retail loan & role of Bank of
Punjab Ltd. providing them so first of all the various objectives of the project were
specified.
The second step in designing the project work is the preparation of list of need
During the data collection process a questionnaire was made for the collection of the
data from the consumers personally. Because in the research project both primary as well
as secondary data is required . so primary data was collected with the help of the
questionnaire.
80
Dichotomouse
Multiple choice
Taking the sample of the study was not easy task. The objective and the limination of the
study have to be kept in mind before decided about the sample type.
In the sample type all level of its consumers have been covered. Basically the present
questionnaires.
After decided upon the sample size & preparing the questionnaire, the fieldwork
has to be carried out. In the field work the place had to be chosen where you want to do
your study. This project survey work was carried out in the Panipat city.
81
6. Analyzing the collected data & reporting the finding
After the survey work was over & data had been collected the analyzing of the data
must & its graphically representation was needed. So after the data collection process
step by step analysis of data was done. On the basis of the analysis.
82
ANALYSIS
AND
INTERPRETATION
83
HOME LOANS
PROCESSING FEES
CHARGE
FEES
ON LOAN
84
PRE- PENALTY PAYMENT
85
RATE OF INTEREST ON PERSONAL LOANS IN
RATE OF 17 11 11 11 15 16
INTEREST
1
00
8
0
6
0 R
ATE
4
0 O
F
IN
TE
RES
T
2
0
0
B
OP P
NB O
BC U
CO H
DF
C IC
IC
I
86
MAX. AMOUNT OF PERSONAL LOAN GIVEN
1
0
8
6 L
AKH
S
4
2
0
B
OP P
NB O
BC U
CO H
DFC IC
IC
I
87
MAX. TENURE PERIOD FOR WHICH PERSONAL LOAN
IS PROVIED
BANKS
TENURE 60 60 60 48 48 60
6
0
4
0
2
0 T
ENU
RE
0
B
OP P
NB O
BC U
CO H
DFC IC
IC
I
88
The retail loan study bring the three type of loans.
Which is of great help to customers. The home loan education loan & personal loan are
various loan which makes life of easier of customers and make customer to afford that
thing which he/she dream to have in future but can buy now when he/she wants.
• Home Loan
• Personal Loan
• Education Loan
The analysis of the questionnaire that was circulated to as certain the views & awareness
is as follows :--
89
LIMITATIONS
LIMITATIONS OF STUDY
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It is very small research, which may be insufficient to give the real picture scope
The research is based on collected data and the researcher is not responsible for
any wrong inference drawn due to the incorrect filling of the questionnaire by the
respondents.
Education loan are not providing by other banks like ICICI, HDFC, & IDBI. So, it
Loan scheme has been revised very soon. So the study is effective till july 05.
Education loan is provided for some special customers. It is not possible for every
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SUGGESTIONS
SUGGESTIONS
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• Interest rate, processing fees, tenure, margin money-all these are important in
loans-housing loan, auto loans, personal loan, education loans etc. So bank should
revise all above keeping in view all other banks. Bank should appoint some
marketing executive for this purpose who can give information of market and
other banks, revision of loan timely so that our bank can revise it very soon.
These marketing executive should give report to Head Office directly for timely
• Loan limit of all loans should be increasing keeping in other view private sector
every person is very busy. He cannot more days for taking loan so. Processing
time should be reduced. But this processing time can be reduced only when the
• As in nationalized banks, there is not negative file, but in bank of Punjab but there
is a list of negative profile. This is the main reason of the nationalized banks
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Other private sector banks like ICICI, HDFC etc. have lower interest rate than BOP. So
the bank should reduce it interest rate for being in the competition with these banks.’’
Bank of Punjab is lower loan amount than other banks, so it should increase its loans
The bank should give authority to all its branches for providing loans.
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CONCLUSION
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CONCLUSION
Bank of Punjab such a great reputation that it can very well go out and sell it product to
the out sides customers and be a winner. These are the responses from the people who
knew about Bank of Punjab but those of them who did not know it felt very happy when
the came to know that group. Bank of Punjab has come out with a new life insurance
venture. The only points now is, that when the company enjoys such a great reputations.
What it has got to do (so.to private its product to the people at very competitive price and
make them sure that their investment in the company is absolutely secure.
Home loans
Education loans
Personal loans
The home loans provided by BOP is less than other banks and having lowest processing
fees. It comparison to other bank it has lower interest rate than same bank.
The personal loan is having maximum tenure period and lower interest rate. It contain
Education loans is provided by only a few banks and services provided by bank for
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BIBLIOGRAPHY
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BIBLIOGRAPHY
www. Bankofpunjab.com
Business Magazines
Presentation by Trainers
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ANNEXURE
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