MINOR RESEARH PROJECT

ON
OBTAINING HOME LOAN FROM PNB & SBI BANK

Towards the Partial Fulfilment of B.com (Hons)

Curriculum

Submitted By:-
RAJ KUMAR

Under the Guidance of

Dr. GEETA SURI

MAHARAJA RANJIT SINGH COLLEGE OF PROFESSIONAL

SCIENCE

1
 ACKNOWLEDGEMENT

In the course of this project I got an insight into the

Banking Company, came to know a lot about that how
the Banking Company is putting impact on customers.
First and foremost I am very proud to be a student of
Maharaja Ranjit College, Indore and am most grateful
for having been given the opportunity to do Research
study.

I avail this opportunity to convey my sincere thanks to

Mr. Mitesh Chaudhary, the H.O.D of MRSC Indore. I
also express my sincere gratitude to Dr.Geeta Suri for
providing us an opportunity to interact with
professional people in the real corporate world. I
forward my gratitude for the compulsion of this most
wonderful aspect of our B.COM (HONS) curriculum
without which knowledge of management is
incomplete and futile.

My acknowledgement would be incomplete if I didn’t

thank my team mates. During the research period we
have developed a camaraderie which was very healthy
and enjoyable. I am grateful for everyone’s support
and help when needed. Without them this training
would not have been the same.
 Contents
CHAPTER 1 ........................................................4
INTRODUCTION TO SUBJECT: ................................4
RESEARCH METHODOLOGY ................................8
CHAPTER 2 ...................................................... 11
INTRODUCTION TO COMPANY: ........................... 11
CHAPTER 3 ...................................................... 21
PRODUCT RANGE OF COMPANY/INDUSTRY: ............ 21
CHAPTER 4 ...................................................... 26
FUTURE PLANS ............................................... 26
CHAPTER 5 ...................................................... 27
INTERPRETATION:............................................ 27
PNB: ............................................................. 37
CONCLUSION .................................................... 47
QUESTIONNAIRE ................................................ 49
 CHAPTER 1
INTRODUCTION TO SUBJECT:
Home loans work like any other debt. That is, loans are simply specific
money that we borrow from a bank, a private lender, or some other type of
lender. Afterwards, we must repay our debts with interest. However, unlike
other types of loans, home loans are different in several respects. Owning a
piece of land or property is a lifetime dream for every individual. There
are many home loans provider in the market. There are different type of
home loan i.e.

• Home Purchase Loans

• Home Improvement Loans
• Home Construction Loans
• Home Extension Loans
• Home Equity Loans
• Land Purchase Loans
• Bridge Loans

Home purchase loans: These are the basic forms of home loans used for
purchasing of a new home. With about a million home lenders and mortgage
brokers it's becoming a tough challenge as the days are progressing. But at
the same time, when the sites are coming up with all the latest tools and
relevant information for us, and with all such conveniences, obtaining a
home purchase loan or mortgage has become really pretty simple. However,
at the same time though, we may be flummoxed to look so many attractive
 rates and offers in the market, not to forget the hidden costs associated with
each of them.
Home improvement loan: Home improvement loans are used to finance
improvements and add on to the existing set of credentials of beauty on your
owned house, recently purchased property or rented accommodation. Home
improvement loans are used to maintain or enhance the value of your house.
In general it includes: repairs, remodelling, energy-related items (permanent
in nature), repairs, a new kitchen, a new bathroom, terrace, an extension or
general property improvements. Luxury items and fireplaces are generally
not eligible, though. Many improvements in landscape and even swimming
pools are nowadays considered to be a part of home improvement.

Home construction loan: Home construction loans are used to finance for
the construction of our newly acquired home or if we are planning to build
a home.
The factors include in calculations for house building costs?
• Design of the house
• Construction cost
• Financing Cost
• Buildable site
All the above mentioned costs will help us to determine the amount we may
need to borrow. For example, besides calculating the construction costs, we
may also be required to consider the total expenditures to develop the site in
order to build. Each site is unique requiring different expenditures so this
specific rupee amount will vary from site location to site location.
Payment: Before the house starts getting build, we will be required to pay a
deposit to your builder as well as paying a deposit for the land if we are
buying land. As work progresses you will need to make payments to the
builder. Certain loans can be structured for progress payments to be made
during construction.
Home extinction loan
Home extension loans are used by customers to get loans from the banks to
extend their houses, by adding more rooms, kitchens, wash rooms, terraces,
or any other rooms for your growing family. It may also be used to enclose
open balcony/terrace space, or constructing a Puja ghar.
Maximum Amount of Home Extension Loans:

Banks generally offers about 70-85% of the total amount of home extension
as loan. The amount of loan sanctioned also depends on a number of factors
such as the age of the applicant at the time of loan, tenure of the loan,
repayment capacity of the borrower; his/her credit history etc.
Home equity loan:
Home equity loans helps customer to encash the market value of the
commodity by taking a loan by mortgaging the property. So, Home equity
loans are availed by customers, who wish to mortgage his/her property to
the bank for taking some loan for some other purpose. Then, it's up to the
bank's discretion to consider the market value of the property and
accordingly decide how much to pay to the customer.
Both the residential as well as non-residential property can be considered for
the approval of the loan, provided the mortgager is a licensed title holder and
the land is free from any kind of dispute.
Home equity loans don't restrict one to use the loan money in specific
investments. It might also be used in marriage, higher education, medical
expenses, etc. However it should not be used in any illegal or speculation
purposes.

Land purchase loan:

Land Purchase loans are used by customers who wish to purchase a plot of
land for commercial or residential purpose. Everyone has his/her dream
perfectly sketched in his souls and so is his ambition to get his house erected
on the exact location he dreamt that to be. If you have found and shortlisted
the piece of land, and have arrived here for finance, you have come to the
best place you could have arrived in the web.
Now, that you have decided to purchase a land as an investment or for your
own dream home, you will realize that a land purchase loan is one you will
cherish.
Loans that are strictly for land purchase can be as scarce as good residential
plots. While many lending firms around the nation compete to provide
mortgages for the purchase of a house on a lot, only local institutions
typically will be interested in lending for an empty lot.
Bridge loan:
Bridge loans are designed for people who wish to sell the existing home and
purchase another one. The bridge loans help finance the new home, until a
buyer is found for the home. Bridge loans are used by customers as an
effective vehicle to capitalize on a purchase opportunity. It can be considered
as a short term financing scheme which is generally expected to be paid
back, within the range of 6-36 months, till the time the borrower gets more
permanent and lower cost financing.
So, bridge loans, (or swing loans as they are otherwise said) is a short term
loan provided by various banks like Bank of India, Citibank, ICICI etc. often
used for commercial real estate purchases, retrieve real estate from
foreclosure.
Bridge loans in corporate finance are called gap financing, and are used to
cover the time between redemption of issuance of one bond and its
replacement by a new issue. They can also be operating loans for periods
between LOI and acquisition, or quiet period and IPO.
Bridge loan may contain a decent proportion of prepaid interest, sometimes
as much as six months. If the home gets sold before that time, you may
 receive interest payments back, but if it hasn't sold, you may be required to
continue payments.

OBJECTIVES:
 To study the cost of home loans provided by the bank.
 To know that which bank provide batter loan schemes.
 To analyse the home loan scheme by PNB and SBI banks.
 To know the consumer perception about the home loan of PNB and SBI.

SCOPE OF THE STUDY: This study is analysis and comparison of home

loans provided by the SBI and PNB banks. It is helpful in analysing the home
loan service provided to the customer and their comparison.

RESEARCH METHODOLOGY
Design of Research:
The research will be exploratory in nature. A population of peoples who take
home loan from these banks will be considered for this study. I will try to
explore about the home loans which would make a difference in the
behaviour of the consumer. Effort will be made to throw light on most of the
factors which have either indirect or direct effect on the behaviour of the
consumer. I will also explore the impact of home loans on the market share
of the banks.

Sampling plan:
• Population:
The study aimed to include the customers of SBI and PNB in Nawanshahr,
to make a comparative analysis of home loan schemes of these two banks.
• Sample Size:
A Sample size of 100 respondents will be taken for the current study because
it is not possible to cover the whole universe in the available time period. So
it is necessary to take the sample size. In 100 respondents 50 respondents
from PNB and 50 from SBI. The sample will the peoples of age group lying
between eighteen to thirty years. The sample will be taken in the form of
strata based on age, sex, and income group.

• Sampling technique:

The sampling technique will be probabilistic sampling more specifically the

random convenient and judgemental sampling will be used. As in
probabilistic sampling the select unit for observation with known
probabilities so that statistically sound assumptions are supported from the
sample to entire population so that we had positive probability of being
selected into the sample. I will go for stratified random sampling as we are
interested to study the home loan by SBI and PNB banks, so we will make
the strata on the basis of age, occupation, income level, gender. And from
each strata we will go for random sampling.
Sources of Data:

I will use primary source of data that is structured questionnaire. As these

banks are established from so many years, so many researchers have done
research on this topic, so we will find secondary data also and also use this
data for the help of this research.
So, this research data will collected from the primary source and secondary
source.
Our method of collecting the data is from the questionnaire that will be
filled by the respondent from the sample, it will be structured
questionnaire.

TOOLS AND TECHNIQUE:

As no study could be successfully completed without proper tools &
techniques, same with my project. For the better presentation and right
explanation I used tools of statistics and computer very frequently and I am
very thankful to all those tools for helping me a lot. Basic tools which I
used for project are:

- BAR CHART
- PIE CHARTS
- TABLES

Bar charts and pie charts are very useful tools for every research to show
the result in a clear, simple way. Because I used bar charts and pie charts in
my project for showing data in a systematic way. So I need not necessary
for any observer to read all the theoretical detail, simple on seeing the
charts anybody that what is being said.
 CHAPTER 2
INTRODUCTION TO COMPANY:

PUNJAB NATIONAL BANK:

PNB has over 4500 branches and offices bringing the Punjab National
Bank to your doorstep. Around 2400 offices come under the network
of Centralized Banking Solution or CBS. A need for centralized
banking system prompted PNB to go computerized and what followed
was the establishment of CBS in Punjab National Bank branches in all
the leading cities like Delhi, Pune, Chennai, Mumbai, Ahmedabad,
Chandigarh, Gurgaon, Hyderabad, Jalandhar, Kolkata, Ludhiana,
Nodal and Bangalore.
Internet Banking Services are provided to all customers in the CBS
branches. A branch and ATM locator is also available on the official
website of Punjab National Bank. For an overview of the annual report
or the bank profile, the site can be resourceful. The website also
provides info on the careers and recruitments at PNB and the exam
results. The careers at nationalized banks like PNB are the most sought
after one and candidates are selected on the basis of their exam result.
PNB topped the Best Paying Commercial Bank category with an
overall rating of 87.45% as evaluated by the SSS Retirement, Death
& Funeral Benefits Program.
STATE BANK OF INDIA:
State Bank of India (SBI) is India's largest commercial bank. SBI has
a vast domestic network of over 9000 branches (approximately 14%
of all bank branches) and commands one-fifth of deposits and loans
of all scheduled commercial banks in India. The State Bank Group
includes a network of eight banking subsidiaries and several non-
banking subsidiaries offering merchant banking services, fund
management, factoring services, primary dealership in government
securities, credit cards and insurance.The eight banking subsidiaries
are: State Bank of Bikaner and Jaipur (SBBJ),State Bank of
Hyderabad (SBH).State Bank of India (SBI),State Bank of Indore
(SBIR),State Bank of Mysore (SBM),State Bank of Patiala
(SBP),State Bank of Saurashtra (SBS) and State Bank of Travancore
(SBT).

Today, State Bank of India (SBI) has spread its arms around the world
and has a network of branches spanning all time zones. SBI's
International Banking Group delivers the full range of cross-border
finance solutions through its four wings - the Domestic division, the
Foreign Offices division, the Foreign Department and the International
Services division.
OVERVIEW OF THE INDUSTRY:

HISTORY:

Banking in India has a long and elaborate history of more than 200
years. The beginning of this industry can be traced back to 1786,
when the country’s first bank, Bank of Bengal, was established. But
the industry changed rapidly and drastically, after the nationalization
of banks in 1969. As a result, the public sector banks began
experiencing numerous positive changes and enormous growth. Then
came the much talked-about liberalization and economic reforms that
allowed banks to explore new business opportunities and not just
remain constrained to generating revenues from mere borrowing and
lending. This provided the Indian banking scenario a remarkable
facelift that only continues to get better with time. However, even
today, despite the foray of foreign banks in the country, nationalized
banks continue to be biggest lenders in the country. This is primarily
due to the size of the banks and the penetration of the networks.

The Indian banking system can be classified into nationalized banks,

private banks and specialized banking institutions. The industry is
highly fragmented with 30 banking units contributing to almost 50%
of deposits and 60% of advances. The Reserve Bank of India is the
foremost monitoring body in the Indian Financial sector. It is a
centralized body that monitors discrepancies and shortcomings in the
system.

Industry estimates indicate that out of 274 commercial banks

operating in the country, 223 banks are in the public sector and 51
are in the private sector. These private sector banks include 24
foreign banks that have begub their operations here. The specialized
banking institutions that include cooperatives, rural banks, etc. form
a part of the nationalized banks category.
Opportunities
The Banking sector is considered the most lucrative option in today’s
job market. In the industry, a position in Treasury or Forex is
considered right on top and this is followed by careers in Private
Banking, Investment Banking and Retail Banking. One could work
in a variety of areas in banking industry including Recurring Deposit
account, banking officer, probationary officer, loan officer, assessor,
personal loan officer, home loan officer, home loan agent, loan
manager, mortgage loan underwriter, loan processing officer,
accountant, product marketing and sales executive, and customer
service executive among others.

In the Financial Services, some of the important jobs include that of a

stockbroker who is essentially a person who buys and sells securities
on behalf of individuals and institutions for some commission. While
some brokers like to practice with individual clients others work for
institutions. Brokers who work for institutional investors are often
called securities traders. Many prefer to work as dealers, advisors and
securities analysts. Security analysts are those who advise companies
on floatation’s of shares as they are expected to have sound
knowledge of capital markets.
Investment analysts are the backbone of the financial services sector.
They study the financial reports of companies, assess various
statistical information, profitability projections, compare financial
results, survey the industry as a whole and on the basis of the
available information, and finally conclude to a decision. Equity
Analysts do jobs similar to investment analysts and research the
equity markets and make predictions.
Growth:
The limit for foreign direct investment in private banks has been
increased from 49% to 74%. In addition, the limit for foreign
institutional investment in private banks is 49%. Liberalization and
globalization have created a more challenging environment in the
banking sector as well as in the other segments of the financial sector
such as mutual funds, Non-Banking Finance Companies, post
offices, capital markets, venture capitalists, etc.
Research and Markets has announced the addition of 'Indian Retail
Banking, 2006' to their offering. Indian Retail Banking continues to
redefine the credit growth in the country. It grew by a whopping
44.4% in 2005-06 to touch Rs 3,538 billion. This leap was despite
the increase in risk weight by RBI for housing and real estate loans
during August, 2005. Housing, which constitutes more than 52% of
all retail loans, grew at a robust rate of 44.35% during 2005-06. In
order to help banks in India to understand the market and
competition and plan future strategies, we have just come out with an
Industry Insight on Indian Retail banking - 2006 edition.
This report analyses the retail banking market and its segments in
India and presents the key trends, along with issues and challenges.
The report also paints a future outlook for the market. Besides it
profiles 21 major players in the retail banking space and their
strategies.
Finally, it seems Reserve Bank of India's (RBI) flurry of measures to
restrain the home finance market is paying off. With tightening of
interest rates by the RBI and a simultaneous increase in real estate
prices in a few markets, the banking sector is witnessing a decline in
the growth of its home loan portfolio.
The home loan industry is experiencing a growth of 25% this year, as
against 30% growth in home loans earlier. Rajiv Saharawi, senior
general manager, ICICI Bank, which has recorded the highest
incremental growth in home finance segment in recent past, said,
“The real estate prices have become very high in few markets, which
has resulted in the fall in growth rates for home loans for the banking
industry. Home loan growth has reduced to 25% from its earlier
growth rate at 30% and since we are an integral part of the industry,
there will be some impact on us too.”
He added that the bigger impact had come from real estate prices, but
obviously interest rates hikes will also have an impact. He, however,
declined to disclose the bank’s current home loan growth rate.
Echoing a similar view, a senior official of State Bank of India (SBI)
said the home loan market is showing some signs of slowing down.
However, another major player, Housing Development Finance
Corporation (HDFC) said the housing finance market for the middle
class segment was growing at a healthy pace.
PNB Bank is a leading home loan lender of the country with about
30% market share. Retail lending comprises 70% of the total loan
portfolio of the bank, of which the home loan lending is about 50%.
In the first half of fiscal 2017, the bank experienced total home loan
disbursements of Rs 13,400 crore.
MAJOR PLAYERS:
The financial sector in India has become stronger in terms of capital
and the number of customers. It has become globally competitive and
diverse aiming, at higher productivity and efficiency.

Exposure to worldwide competition and deregulation in Indian

financial sector has led to the emergence of better quality products
and services. Reforms have changed the face of Indian banking and
finance. The banking sector has improved manifolds in terms of
capital adequacy, asset classification, profitability, income
recognition, provisioning, exposure limits, investment fluctuation
reserve, risk management, etc.
 TOP 10 PLAYERS IN BANKING & FINANCE
 State Bank of India
 HDFC bank
 Citibank
 ICICI Bank
 Punjab National bank
 UTI Bank
 Hong Kong & Shanghai Banking Corp.
 Kotak Mahindra Bank
 Sundaram Bank
 Oriental Bank of Commerce

TOP 10 PLAYERS IN INSURANCE

 Life Insurance Corporation of India
 Bajaj Allianz General Insurance
 ICICI Prudential Life Insurance
 ICICI Lombard General
Insurance
 Birla Sun life Insurance
 Tata AIG General Insurance
 New India Assurance Co

PROFILE OF THE ORGANISATION:

PROFILE OF PNB:
The profile of the PNB shows superior banking services in corporate,
personal and international banking, industrial and agricultural finance
and finance of trade. Punjab National Bank boasts of a varied clientele
consisting of small and medium industrial units, exporters, multi-
national companies, Indian conglomerates and NRI. The Bank is
 changing outdated front and back end processes to modern customer
friendly processes to help improve the total customer experience. With
about 8500 of its own 10000 branches and another 5100 branches of
its
Associate Banks already networked, today it offers the largest banking
network to the Indian customer. The Bank is also in the process of
providing complete payment solution to its clientele with its over 8500
ATMs, and other electronic channels such as Internet banking, debit
cards, mobile banking, etc.The objectives of the Company are in line
with objectives laid down by RBI for the Primary Dealers:

 Strengthen the infrastructure in the government securities market in

order to make it vibrant, liquid and broad based.
 Ensure the development of underwriting and market making
capabilities for Government Securities
 Improve secondary market trading system, which would contribute to
price discovery, enhance liquidity and turnover and encourage
voluntary holding of Government securities amongst a wider investor
base
 Become an effective conduit for conducting open market operations.
PROFILE OF SBI:
The SBI’s powerful corporate banking formation deploys multiple
channels to deliver integrated solutions for all financial challenges
faced by the corporate universe. The Corporate Banking Group and
the National Banking Group are the primary delivery channels for
corporate banking products.

The Corporate Banking Group consists of dedicated Strategic Business

Units that cater exclusively to specific client groups or specialize in
particular product clusters. Foremost among these a specialized group
is the Corporate Accounts Group (CAG), focusing on the prime
corporate and institutional clients of the country’s biggest business
centres. The others are the Project Finance unit and the Leasing unit.
The National Banking Group also delivers the entire spectrum of
corporate banking products to other corporate clients, on a nationwide
platform.

The bank is also looking at opportunities to grow in size in India as

well as internationally. It presently has 82 foreign offices in 32
countries across the globe. It has also 7 Subsidiaries in India – SBI
Capital Markets, SBICAP Securities, SBI DFHI, SBI Factors, SBI Life
and SBI Cards - forming a formidable group in the Indian Banking
scenario. It is in the process of raising capital for its growth and also
consolidating its various holdings. Throughout all this change, the
Bank is also attempting to change old mind sets, attitudes and take all
employees together on this exciting road to Transformation. In a
recently concluded mass internal communication programme termed
‘Parivartan’ the Bank rolled out over 3300 two day workshops across
the country and covered over 130,000 employees in a period of 100
days using about 400 Trainers, to drive home the message of Change
and inclusiveness. The workshops fired the imagination of the
employees with some other banks in India as well as other Public
Sector Organizations seeking to emulate the programme.
 CHAPTER 3
PRODUCT RANGE OF COMPANY/INDUSTRY:

The products and services provided by the SBI and PNB are in
various fields, such as:
• Banking services
• NRI services
• International banking
• Corporate banking
• Agricultural banking
• International banking

PERFORMANCE OF COMPANY IN LAST FIVE YEARS:

PNB performance in last five years:

1st Quarter Net Income UP 48% Year-on-Year taking-off
from a breakthrough performance in 2017 with a registered net
income of P1.5 billion, PNB continues to reap the benefits
from its efforts to strengthen core businesses, reduce non-
performing assets and manage costs. Net Income for the 1st
Quarter of 2008 registered P457 million, up 48% from P308
million of the same period last year. This performance bucks
industry trends for the 1st quarter of 2018 based on published
income reports.
Even as the operating environment proved volatile where
negative trends are expected, PNB still managed to reflect a
136% growth in foreign exchange gains year-on-year, from
P242 million to P571 million. A relentless focus in generating
low-cost funds from deposits and other funding sources led to
a reduction in total interest expense by as much as 27%. Total
deposits closed firm at P180 billion.

Operating expenses were down 23% despite investments made

in systems enhancement and upgrading of facilities. The Bank
has recently implemented a new generation core banking
system: Flexcube – an end-to-end solution designed to
automate both corporate and retail banking businesses; and
effectively in-source core overseas operations to its global data
center in the Philippines. PNB’s Japan, Singapore, Hongkong
and United States branches as well as the London subsidiary
have already been converted and the rest of the Bank is
expected to go live soon.

As of March 31, 2008, PNB’s consolidated total asset size

remained strong at P242 Billion, up P2.7 billion versus end-
2007. With the significant strengthening of its balance sheet
over the past few years, PNB has been able to concentrate on
generating new client relationships in the corporate segment,
both in the large and SME categories. The contribution from
the consumer finance business has likewise continued to
register accelerated growth. Total consumer loans portfolio
stood at P3.3 billion, up 25% from end-2007. Combined new
bookings for the 1st quarter 2008 already reached the half-
billion mark. PNB’s Net Loans and Receivables closed P77
billion.
As of March 31, 2008, PNB’s Capital Adequacy Ratio under
Basel II remained formidable at 18.51%, still way above the
10% ratio required by the Bangko Sentral ng Pilipinas. Subject
to appropriate approvals and clearances, PNB is going to the
capital markets to raise a minimum of P3 billion of Tier 2
Capital in preparation for its maturing subordinated notes in
February 2009.

PNB will emerge as the 4th largest domestic bank in the

country in terms of asset size once its planned merger with
Allied Banking Corporation (ABC) is completed. The
respective Board of Directors of PNB and ABC passed
resolutions last April 30, 2018 approving the plan to merge the
two banks. This transaction is subject to the approval of
shareholders and regulatory authorities and is expected to be
completed by the 3rd quarter of 2018.
SBI performance in last five years
State Bank of India (SBI) is all geared up to increase its
business per employee and profit per employee as it thinks
that for SBI, these two parameters are among the lowest in
the industry. On one hand, the bank is trying to reduce its
staff strength
Which would eventually improve the ratios; but on the other,
the bank is also going flat out to increase its customer base.
"Our business per employee and profit per employee is one of
the lowest in the industry," SBI had recently said in a joint
statement issued by the management and unions.SBI's
generates Rs 2.99 crore of business per employee, while its
profit per employee is just about Rs 2.17 lakh. By contrast,
majority of the large public sector banks are better in terms of
both these parameters.
For instance, Canara Bank has a business per employee (BPE)
of Rs 4.42 crore, while Union Bank of India's BPE is at Rs
4.36 crore and Bank of Baroda's (BoB) Rs 3.51 crore. These
are according to their respective annual reports for 2017-18.

On the other hand, Canara Bank's profit per employee (PPE) is

also on the higher side at Rs 3.02 lakh. The PPEs of Union
Bank and BoB are at Rs 2.66 lakh and Rs 2.13 lakh,
respectively.

"Over the years, we have been steadily losing our marketshare

from about 35% in 1970s to around 16% in 2016. Our vast
network is failing to attract the new and demanding young
customers," SBI said in that statement, which is addressed to
all
SBI officers and employees and aimed at changing their
attitude towards customers.
The statement was jointly signed by chairman OP Bhatt,
managing directors TS Bhattacharya and Yogesh Agarwal and
top office bearers of its officers and employees associations.

To address these issues, both the management and unions have

agreed to work hand in hand. They have appealed to the bank's
staffs to go flat out to increase its customer base."Let us be
conscious of the customer's overall needs rather than only the
transaction at hand. Let us expand our customer base," the
statement read.
The bank has nearly 37 lakh savings bank accounts in the
Bengal circle itself.Meanwhile, the country's largest and oldest
bank has offered an exit option scheme (EOS) to its
employees. The bank has some 2.1 lakh staffs, out of which
nearly 1.4 lakh are clerical and subordinate employees.
 CHAPTER 4
FUTURE PLANS:
PNB future plans:
PNB has initiated various steps in a bid to expand its operations
in the state of Kerala. These include opening new branches and
increasing the number of its core banking solutions branches.
PNB currently has 71 CBS branches in Kerala and has registered
good growth from this region.
PNB in looking at increasing its international presence and in
line with this, the company is planning to set up offices in UK,
Singapore, Hong Kong and Canada. The Canada office is likely
to open very soon, while the other locations are likely to
commence operations by end of this fiscal year.
PNB unvieled its plans to raise additional capital of Rs. 21,000
million to fund its business expansion plans for this current
fiscal.
SBI future plans:
SBI has set for itself an ambitious target of credit linking 1 million
SHGs up to March 2008.The Bank has started to leverage our vast
SHG network for various services beyond credit delivery.
The State Bank of India (SBI) has formulated a “home-grown
strategy” to merge its six associated banks with it within this
fiscal.
SBI drawn up a home-grown strategy to carry out the merger
programme and we may take up such mergers one by one, or
two at a time or in a phased manner. SBI want the future
mergers to be as smooth as the merger.Post-merger, the size of
SBI’s balance sheet will cr-oss Rs 12,00,000 crore and its
profitablity will increased.
 CHAPTER 5
INTERPRETATION:

SBI BANK:

1) What is your occupation?

Business man 15
Student 0
Government Employee 22
Other 0
House wife 9

25

20
Series1
15
Series2
10
Series3
5

Interpretation:-

o Total Number of Respondents

was 46.
 o 0 of our Respondents was
Students.
o 22 of the Respondents were
into govt. employees

o 15 of our Respondents were

Businessman.

2) From how many years you are associated with this bank?

Less than 1 year 10

1-5 years 24
More than 5 12

30

25

20
Series1
15 Series2

10

0
Less than year 1-5 year more then 5
 Interpretation:-

o Total Number of Respondents was 46.

o 10 persons are associated less than 1 year.

o 24 persons are associated from 1-5 years.

o 12 persons are associated from more than 5 years. o

3) How do you come to know about the home loan schemes of

that bank?

News paper 18
Television 14
Internet 10
other resources 4

20
18
16
14
12
Series1
10
Series2
8
6
4
2
0
News paper Television Internet Other
Resources
Interpretation:
o Total Number of Respondents was 46.
o 18 persons came to know from newspaper.
o 14 persons came to know from television.
o 10 persons came to know from internet.
o 4 persons came to know from other resources

4) Are you aware of these type of home loans?

Home purchase loan 9

Home construction loan 18
Home improvement loan 6
Home equity loan 4
Land purchase loan 9

Interpretation:-

o Total Number of Respondents was 46.

o Only 4 persons know home equity loan.
o Many of peoples know home construction loan.
o 9 peoples know home purchase loan.
o 6 peoples know home improvement loans.

5) Are you aware all terms and conditions of home loans?

Yes 40
No 6
 45
40
35
30
25
Series1
20
15
10
5
0
Yes No

Interpretation:-

o Total Number of Respondents was 46.

o Many of persons know all terms and conditions of
home loan i.e. 40.
o 6 persons had not known properly about all terms and
conditions.

6) Are you satisfy with the interest rate charges by your bank?

Strongly agree 12
Agree 30
Disagree 4
strongly disagree 0
 16
14
12
10
8 Series1
6
4
2
0
Strongly agree Agree Disagree strongly
disagree

Interpretation:-

o Total Number of Respondents was 46.

o 12 among all consumers are strongly agreed by
interest rate of the bank.
o 30 among all consumers are agreed by interest rate of
the bank o 4 among all consumers are disagreed by
interest rate of the bank o 0 among all consumers are
strongly disagreed by interest rate of the bank

7) Your bank offer which type of services?

Mobile banking 24
Net banking 15
Forex banking 7
 30

25

20

15 Series1

10

0
Mobile banking Net banking Forex banking

Interpretation:-

o Total Number of Respondents was 46.

o 24 persons said that bank offer mobile banking
services.
o 15 said that bank offer net banking services.
o Only 7 persons said that bank offer forex banking
services.
8) Do you agree that your bank loan processing is fast?

Strongly agree 8
Agree 26
Disagree 9
strongly disagree 3
 30

25

20

15 Series1

10

0
Strongly agree Agree Disagree strongly
disagree

Interpretation:-
o Total Number of Respondents was 46.

o 8 persons strongly agree that bank home loan

processing is fast.
o 26 persons agree that bank home loan processing
is fast.
o 9 persons disagree that bank processing is fast.
o 3 persons strongly disagree that bank processing
is fast.

9) Do you satisfy with the after home loan services

provided by your bank are best as compare to other bank?
Strongly agree 12
Agree 30
Disagree 4
strongly disagree 0
 35

30

25

20
Series1
15

10

0
Strongly agree Agree Disagree strongly
disagree

Interpretation:-

o Total Number of Respondents was 46

o 12 among all consumers are strongly agreed by after
sale services of the bank.
o 30 among all consumers are agreed by after sale
services of the bank.
o 4 among all consumers are disagreed by after sale
services of the bank.
o 0 among all consumers are strongly disagreed by
after sale services of the bank

10) Does the cost of home loan is appropriate, according

to your demand?
Yes 33
No 13
 35

30

25

20
Series1
15

10

0
Yes No

Interpretation:-

o Total Number of Respondents was 46.

o 33 persons said that home loan is appropriate
according to their demand.
o 13 persons said that home loan is not appropriate
according to their demand.
PNB:

1) What is your occupation?

Business man 17
Student 0
Government Employee 23
Other 0
House wife 7
Interpretation:-
o Total Number of Respondents was 47.
o 0 of our Respondents was Students.
o 23 of the Respondents were into government
employees.
o 17 of our Respondents were
Businessman.
o 7 of our Respondents were
Housewives.
o None of our Respondent belonged to
the category of others.
o 3 respondents did not answer

2) From how many years you are associated with this bank
Less than 1 year 17
1-5 years 19
More than 5 11
 20
18
16
14
12
10 Series1
8
6
4
2
0
Less than 1 1-5 Years More than 5
Year

Interpretation:-
o Total Number of Respondents was
47.
o 17 persons are associated less than 1
year.
o 19 persons are associated from 1-5
years.
o 11 persons are associated from more
than 5 years.

3) How do you come to know about the home loan schemes of

that bank ?
News paper 12
Television 22
Internet 9
other resources 4
 25

20

15
Series1
10

0
News Television Internet other
paper resources

Interpretation:-

o Total Number of Respondents was 47.

o 12 persons came to know from newspaper.
o 22 persons came to know from television.
o 9 persons came to know from internet.
o 4 persons came to know from other resources.

4) Are you aware of these type of home loans?

Home purchase loan 9

Home construction loan 19
Home improvement loan 9
Home equity loan 2
Land purchase loan 8
 20
18
16
14
12
10 Series1
8
6
4
2
0

Interpretation:-
o Total Number of Respondents was 47.
o Only 2 persons know home equity loan.
o Many of peoples know home construction loan.
o 9 peoples know home purchase loan.
o 9 peoples know home improvement loans.

5) Are you aware all terms and conditions of home loans?

Yes 34
No 13
 40

35

30

25

20 Series1

15

10

0
Yes No

Interpretation:-
o Total Number of Respondents was 47.
o Many of persons know all terms and conditions of
home loan i.e. 34.
o 13 persons had not known properly about all terms
and conditions.

6) Are you satisfy with the interest rate charges by your bank?

Strongly agree 11
Agree 34
Disagree 2
strongly disagree 0
 40
35
30
25
20 Series1
15
10
5
0
Strongly Agree Disagree Strongly
Agree Disagree

Interpretation:-

o Total Number of Respondents was 47.

o 11 among all consumers are strongly agreed by
interest rate of the bank.
o 34 among all consumers are agreed by interest rate of
the bank
o 2 among all consumers are disagreed by interest rate
of the bank.
o 0 among all consumers are strongly disagreed by
interest rate of the bank

7) Your bank offer which type of services?

 Mobile banking 26
Net banking 13
Forex banking 8

30

25

20

15 Series1

10

0
Mobile Net banking Forex banking
banking

Interpretation:-

o Total Number of Respondents was 47.

o 26 persons said that bank offer mobile banking
services.
o 13 said that bank offer net banking services.
o Only 8 persons said that bank offer forex banking
services.

7) Do you agree that your bank loan processing is fast?

Strongly agree 4
Agree 21
Disagree 13
strongly disagree 9
 25

20

15
Series1
10

0
Strongly Agree Disagree strongly
agree disagree

Interpretation:-

o Total Number of Respondents was 47.

o 4 persons strongly agree that bank home loan
processing is fast.
o 21 persons agree that bank home loan processing
is fast.
o 13 persons disagree that bank processing is fast.
o 9 persons strongly disagree that bank processing
is fast.

9) Do you satisfy with the after home loan services

provided by your bank are best as compare to other bank?

Strongly agree 14
Agree 29
Disagree 4
strongly disagree 0
 35
30
25
20
Series1
15
10
5
0
Strongly Agree Disagree strongly
agree disagree

Interpretation:-
o Total Number of Respondents was 47.
o 14 among all consumers are strongly agreed by after
sale services of the bank.
o 29 among all consumers are agreed by after sale
services of the bank
o 4 among all consumers are disagreed by after sale
services of the bank.
o 0 among all consumers are strongly disagreed by
after sale services of the bank

10) Does the cost of home loan is appropriate, according

to your demand?
Yes 29
No 18
 35

30

25

20
Series1
15

10

0
Yes No

Interpretation:-
o Total Number of Respondents was 47.
o 29 persons said that home loan is appropriate
according to their demand.
o 18 persons said that home loan is not appropriate
according to their demand.
 CONCLUSION

All the people are availing loan facility from both the banks.
No. of respondents of SBI were 46 and 47 of SBI Bank. Peoples
are relating with PNB more satisfy with the interest rate as
compare to SBI. SBI peoples much know about home loans
then PNB. Both PNB and SBI mostly offer mobile banking
services. Processing of SBI is fast then PNB. After home loan
services of PNB is good as compare to SBI. Peoples related
with SBI is more satisfy with the employee behaviour as
compare to PNB .People are more satisfied by SBI for time
taken for sanctioning the loan. From all this I conclude that SBI
bank provide good home loan services as compare to PNB and
many peoples are very satisfied from SBI.
 BIBLIOGRAPHY

REFRENCES
1.www.sbiindia.in
2.www.pnbindia.in
3.www.wikipedia.org
4.www.google.com
5.www.economictimes.com
6. www.moneycontrol.in
 QUESTIONNAIRE

Name____________

Qualification_________

Age 18-25 25-35 35-40 above

Gender_________

16) What is your occupation?

Business man Government employee

House wife Student

Other

17) From how many years you are associated with this bank?

Less than 1 year 1-5

More than 5 year

3) How do you come to know about the home loan schemes of

this bank?

News paper Television

Internet Other resources

4) Are you aware of these type of home loans?

Home purchase laon Home construction loan

Home improvement loan Home extention loan

Home equity loan Land purchase loan

5) Are you aware all terms and conditions of home loans?

Yes
No
6) Are you satisfy with the interest rate charges by your bank?

Strongly agree Agree

 Strongly disagree Disagree

7) Your bank offer which type of services?

Mobile banking Net banking

Forex banking

8) Do you agree that your bank loan processing is fast?

Strongly agree Agree

Strongly disagree Disagree

9) Do you satisfy with the after home loan services provided by

your bank are best as compare to other bank?

Strongly agree Agree

Strongly disagree Disagree

10) Does the cost of home loan is appropriate, according to your

demand?
 Yes
No
11) Are you satisfy with the employee’s behaviour of the bank?

Strongly agree Agree

Strongly disagree Disagree

12) Does the bank give any discount upon loan services?

Yes
No
13) Are you satisfy by the time taken in sanctioning the loan?

Yes
No
14) Have you face any difficulty during taking the loan?

Yes No

If yes then specify___________________________

15) Which grade you want to give of home loan schemes of your
bank?

Excellent Good
 Average Below average

16) Any
suggestions that you want to
give___________________________________

____________________________________________________
_________________