Professional Documents
Culture Documents
MM Graphic
MM Graphic
PROJECT REPORT ON
AT IDBI
SUBMITTED BY
MURTUZA ALI KHAN
H.T.NO: 1211-2068-4046
OSMANIA UNIVERSITY,
HYDERABAD.
CERTIFICATE
DATE: PRINCIPAL
ST. JOSEPHS’S DEGREE COLLEGE
TOLICHOWKI, HYDERABAD.
WEBSIT www.st-josephs.in , EMAIL IDst22109@gmail.com
ph.: 040-23564112
CERTIFICATE
CERTIFICATE
The following Summer Project Report titled "Comparative Analysis of IDBI Bank Loan Services
with its competitors" is hereby approved as a certified study in management carried out and presented
in a manner satisfactory to warrant its acceptance as a prerequisite for the award of Post-Graduate
Diploma in Management for which it has been submitted. It is understood that by this approval the
undersigned do not necessarily endorse or approve any statement made, opinion expressed or
conclusion drawn therein but approve the Summer Project Report only for the purpose it is submitted.
Signature
ACKNOWLEDGEMENT
I would, at the very onset, like to thank Mr. Rajendra Kr. Anand, Branch Manager,
IDBI Bank for providing me the opportunity to perform my Summer Internship
Program in the Company.
I, would like to, give special thanks and gratitude to Mr.Vikas Kumar Saini, Service
and Operation Manager, IDBI Bank for mentoring and providing the necessary data
and information as and when required throughout the project. Their support and
encouragement has been a source of inspiration for me and made my journey in IDBI
a delight.
I, would also offer my thanks to my Director Dr. (Mr.) G.P Govil, Northern India
Engineering College, IP university
My thanks also go to Dr. ( Ms.) Divya Gangwar ( HOD ) and Ms. Kamayni Shukla (
Asst. Professor) for helping me in this project and providing the valuable guidance in
completing my project.
I would also like to thank my classmates and seniors for extending me their
help and cooperation whenever I approached them.
CONTENT
Chapter 1…………………………………………………………………………..
Company Profile
Overview…………………………………………………………………...
History……………………………………………………………………...
Competitors…………………………………...…………………………....
Strength/Opportunity & weakness/Threats………………………………...
Different Products……………………...………….……………………….
Awards & Recognitions by IDBI……….……………………………….......
Chapter 2…………………………………………………………………………..
Introduction to Advance Product...…………………………….……………
IDBI Advance Product.……………………………………………………....
Statement the Problem……………………………………………………...
Research objectives…………………………………………...…………….
Significance and scope……………………………………………………...
Chapter 3………………………………………………………………………….
Research methodology
Chapter 4 ………………………………………………………………………...
Analysis of data
Chapter 5………………………………………………………………………....
Findings……………………………………………………………………
Suggestion & Recommendation……………………………………...…..
Conclusion…………………………………………………………………
Annexure (Questionnaire)………….……………………………………………
Bibliography………………………………………………………………….…...
Executive Summary
In the growing global competition, the productivity of any business concern depends upon
the behavioral aspect of consumers. This topic deals with the customer’s perception towards
other Advance Product from IDBI credit cards at Bhubaneswar. This project report contains
5 different chapters. The report begins with the introduction to company, its area of operation,
its organization structure, its achievements, etc.
The second chapter is the introduction to the Advance Product which gives a brief idea
regarding ADVANCE PRODUCT of IDBI MAIN BRANCH, BBSR where the project is
undertaken. It also contains the objectives and limitations of the project.
The third chapter, methodology adopted in preparing this report is mentioned. It covers the
sample procedure, types of data used and the data collection method.
The fourth chapter comprehensive coverage of forecasting concepts and techniques which
shows the analysis of data through tabulation, computation and graphical representation of
data collected from survey.
The fifth chapter deals with the findings, suggestion & conclusion part which is very much
important after analysis is made.
As we know that only analysis and conclusion is not the end of a research, so in the sixth
chapter the recommendation part is covered which are made after a depth study of the
analysis part of thesis.
In each of the five chapters as described above, every chapter has been scheduled in a
manner so as to enable the reader to appreciate the contents easily. The report is supported
by figures and data wherever necessary with a view to assist the reader in developing a clear
cut understanding of the topic.
I hope this report will be extremely useful for those it is meant. Constructive and healthy
suggestions for improvements of the report will be great fully appreciated.
CHAPTER -1
Company Profile
Overview
Competitors
Strength/Opportunity & Weakness/Threats
Different Products
Awards & Recognitions by IDBI
OVERVIEW
Industrial Development Bank of India (IDBI Bank) is today one of India’s largest
commercial Banks. For over 40 years, IDBI Bank has essayed a key nation-building
role, first as the apex Development Financial Institution (DFI) (July 1, 1964 to
September 30, 2004) in the realm of industry and thereafter as a full-service
commercial Bank (October 1, 2004 onwards). As a DFI, the erstwhile IDBI stretched
its canvas beyond mere project financing to cover an array of services that
contributed towards balanced geographical spread of industries, development of
identified backward areas, emergence of a new spirit of enterprise and evolution of
a deep and vibrant capital market.
On October 1, 2004, the erstwhile IDBI converted into a Banking company (as
Industrial Development Bank of India Limited) to undertake the entire gamut of
Banking activities while continuing to play its secular DFI role. Post the mergers of
the erstwhile the bank with its parent company (IDBI Ltd.) on April 2, 2005
(appointed date: October 1, 2004) and the subsequent merger of the erstwhile
United Western Bank with IDBI Bank on October 3, 2006, the tech-savvy, new
generation Bank with majority Government shareholding today touches the lives of
millions of Indians through an array of corporate, retail, SME and Agri products and
services.
As on March 31, 2011, the Bank had a network of 598 centers, 833 Branches and
1455 ATMs.
Headquartered in Mumbai, IDBI Bank today rides on the back of a robust business
strategy, a highly competent and dedicated workforce and a state-of-the-art
information technology platform, to structure and deliver personalized and
innovative Banking services and customized financial solutions to its clients across
various delivery channels.
Services
SME: IDBI Bank also offers products and services to SME sector.
Recognition
IDBI’s long term foreign currency debt was given Baa2 rating by Moody’s
reflecting strong government ownership and control.
IDBI Bank was assigned ‘BBB’ rating by Standard's & Poor and Fitch, which
represents strong market position.
IDBI’s long-term bonds, fixed deposits and short-term borrowing are rated by
CRISIL, ICRA and Fitch, reflecting high safety in respect to timely payment of
interest and principal.
Shareholding
IDBI Bank's equity shares are listed on Bombay Stock Exchange and the National Stock
Exchange of India.
As on 31 March 2014, Government of India held 76.72% shares in IDBI Bank. Over 4 lakh
public shareholders owned 8.75% of its shares. Insurance companies held approx. 12.32% of
the shares while remaining 7.21% shares were held by others.
COMPETITORS
Andhra Bank
Allahabad Bank
Punjab National Bank
Dena Bank
Vijaya Bank
HDFC Bank
ICICI Bank
AXIS Bank
Citibank
Standard Chartered
HSBC Bank
American Express
Strength/ Opportunities:
The growth for IDBI in the coming years is likely to be fueled by the following factors:
• Continued effort to increase low cost deposit would ensure improvement in NIMs and
hence earnings.
• Growing retail & SMEs thrust would lead to higher business growth.
• Strong economic growth would generate higher demand for funds pursuant to higher
corporate demand for credit on account of capacity expansion.
Weakness/ Threats:
The risks that could ensue to IDBI in time to come are as under:
• IDBI is currently operating at a lowest CAR. Insufficient capital may restrict the growth
prospects of the bank going forward.
• Stiff competition, especially in the retail segment, could impact retail growth of IDBI and
hence slowdown in earnings growth.
• Contribution of retail credit to total bank credit stood at 26%. Significant thrust on growing
retail book poses higher credit risk to the bank.
• Slow down in domestic economy would pose a concern over credit off-take thereby
impacting earnings growth.
DIFFERENT PRODUCTS OF IDBI:
DEPOSIT LOANS CARDS PAYMENTS
Savings Home Loans Gold Debit Tax Payments
Account Card
Research objectives
Now a day not all the people have the capacity to fulfill their requirement by their
own earning, that’s why they need help from others. For this so many government &
private sector bank provide them money to fulfill their requirement, that’s call the
Advance
Product (loan
product) of
the bank. All
the banks
have so many
different
types of
advance
product as
per the
requirement
of the people or customers. In Bhubaneswar also there are so many banks those
provide loan to the people for different causes.
Types of Advance Product
Home Loan
Educational Loan
Car Loan
Personal Loan
Property Loan
Loan Against Shares\Debentures
Etc.
Now a day a large no. of people are taking loan form different banks. It helps people to
fulfill their need and it really easy to repayment the loan amount with a longer repayment
period.
IDBI Advance
Product
IDBI Home
Loans:
Purpose
Purchase/ Construction
of House/ Flat
Purchase of a plot of land for construction of House
Eligibility
Maximum age limit for a Home Loan borrower is fixed at 70 years, i.e. the age by which the
loan should be fully repaid.
Availability of sufficient, regular and continuous source of income for servicing the loan
repayment.
Loan Amount
1. Income of your spouse/ your son/ daughter living with you, provided they have a steady
income and his/ her salary account is maintained with IDBI.
2. Expected rent accruals (less taxes, cess, etc.) if the house/ flat being purchased is
proposed to be rented out.
3. Depreciation, subject to some conditions.
4. Regular income from all sources
Purchase/ Construction of a new House/ Flat/ Plot of land: 15% for loans up to Rs. 1 cr.,
20% for loans above Rs. 1 cr.
Repairs/ Renovation of an existing House/ Flat: 15%
(12.25% p.a.)
Loan Tenor Above 5 years Above 15 years and
Upto 5 years
-> and upto 15 years upto 25 years
Upto Rs.30 2.25% below 2.00% below 1.75% below
Lacs SBAR, 10.00% p.a. SBAR, 10.25% p.a. SBAR, 10.50% p.a.
Above 2.00% below 1.75% below 1.50% below
Rs.30 Lacs SBAR, 10.25% p.a. SBAR, 10.50% p.a. SBAR, 10.75% p.a.
* Fixed rate loans will be subject to: 'force maejure' clause and interest reset at the end of
every two years on the basis of fixed interest rates prevailing then.
CAR LOAN:
Purpose
A used car / jeep (not more than 5 years old). (Any make or model).
Take over of existing loan from other Bank/Financial institution (Conditions apply)
Eligibility
Salient Features
Loan Amount
There is no upper limit for the amount of a car loan. A maximum loan amount of 2.5 times the
net annual income can be sanctioned. If married, your spouse's income could also be
considered provided the spouse becomes a co-borrower in the loan. The loan amount includes
finance for one-time road tax, registration and insurance!
No ceiling on the loan amount for new cars.
Loan amount for used car is subject to a maximum limit of Rs. 15 lacs.
Type of Loan
1. Term Loan
2. Overdraft - a) For New vehicles only
b) Minimum loan amount: Rs. 3 lacs.
Documents required
you would need to submit the following documents along with the completed application form if
you are an existing IDBI account holder:
Margin
Repayment
You enjoy the longest repayment period in the industry with us.
Repayment period:
For Salaried: Maximum of 84 months
For Self-employed & Professionals: Maximum 60 months
Repayment period for used vehicles :Up to 84 months from the date of original purchase of the
vehicle (subject to maximum tenure as above).
Prepayment Penalty:
Prepayment fee of 2% of the amount of the loan prepaid will be levied subject to certain
conditions
FLOATING RATES:
A. for Term Loans
1. New Vehicles (Term Loan) Floating only W.E.F. February 27, 2008
B. For Overdrafts: For New Vehicles only W.E.F. February 27, 2008
EDUCATION LOAN:
A term loan granted to Indian Nationals for pursuing higher education in India or abroad where
admission has been secured.
Eligible Courses
Amount of Loan
Interest Rates
(with effect from 1st June 2008)
Repayment Tenure
Repayment will commence one year after completion of course or 6 months after securing a
job, whichever is earlier.
Security
Above Rs. 4 lacs to Rs. 7.50 lacs Collateral security in the form of suitable third
party
Guarantee. The bank may, at its discretion, in
exceptional cases, weive third party
guarantee if
satisfied with the net-worth/means of parent/s
who
would be executing the documents as "joint
borrower"
Above Rs. 7.50 lacs. Tangible collateral security of suitable value,
along
with the assignment of future income of the
student
For payment of installments.
Margin
Documentation Required
Purpose
The loan will be granted for any legitimate purpose whatsoever (e.g. expenses for domestic or
foreign travel, medical treatment of self or a family member, meeting any financial liability, such
as marriage of son/daughter, defraying educational expenses of wards, meeting margins for
purchase of assets etc.)
Eligibility
You are eligible if you are a Salaried individual of good quality corporate, self employed
engineer, doctor, architect, chartered accountant, MBA with minimum 2 years standing.
Salient Features
Loan Amount
Your personal loan limit would be determined by your income and repayment capacity.
Minimum: Rs.24,000/- in metro and urban centres
Rs.10, 000/- in rural/semi-urban centres
Maximum: 12 times Net Monthly Income for salaried individuals and pensioners subject to a
ceiling of Rs.10 lacs in all centres
Documents Required
Important documents to be furnished while opening a Personal Loan Account:
Margin
We do not insist on any margin amount.
Interest Rates
3.25% above SBAR floating i.e. 15.50% p.a.
Repayment
The loan is repayable in 48 EMI. You are allowed to pay more than the EMI if you wish to,
without attracting any prepayment penalty.
Security
NIL
Processing Fee
Processing charges are 1-2% of the loan amount. This is amongst the lowest fees in the
industry. Processing fees have to be paid upfront. There are no hidden costs or other
administrative charges.
PROPERTY LOAN:
Purpose
This is an all purpose loan, i.e., the loan can be obtained for any purpose whatsoever. If amount
of loan is Rs.25.00 lacs and above then purpose of loan will have to be specified along with an
undertaking that loan will not be used for any speculative purpose whatever including
speculation on real estate and equity shares.
Eligibility
You are eligible if you are:
B. Your Net Monthly Income (salaried) is in excess of Rs.12,000/- or Net Annual Income
(others) is in excess of Rs.1,50,000/-.
The income of the spouse may be added if he/she is a co-borrower or a guarantor.
Salient Features
Loan Amount
24 times the net monthly income of salaried persons (Net of all deductions including
TDS) OR
2 times the net annual income of others (income as per latest IT return less taxes
payable)
Margin
We will finance upto 75% of the market value of your property.
Interest
Term Loan 0.75% above SBAR. i.e.13.00% p.a. Floating
Repayment
Maximum of 60 equated monthly installments, upto 120 months for salaried individuals with
check-off facility. You could opt to divert any surplus funds towards prepayment of the loan
without attracting any penalty.
Security
Eligibility
This facility is available to our existing individual customers enjoying a strong relationship with
IDBI. This loan could be availed either singly or as a joint account with spouse in 'Either or
Survivor'/ 'Former or Survivor' mode. It is offered as an Overdraft or Demand Loan.
Salient Features:
Purpose
For meeting contingencies and needs of personal nature. Loan will be permitted for subscribing
to rights or new issue of shares / debentures against the security of existing shares /
debentures. Loan will not be sanctioned for (i) speculative purposes (ii) inter-corporate
investments or (iii) acquiring controlling interest in company / companies.
Loan Amount
You can avail of loans up to Rs 20.00 lacs against your shares/debentures.
Documents Required
You will be required to submit a declaration indicating:
Details of loans availed from other banks/ branches for acquiring shares/ debentures.
Details of loans availed from other banks/ branches against security of shares/
debentures
Margin
You will need to provide a margin amount of 50% of the prevailing market prices of the shares/
non-convertible debentures being offered as security. (The market prices refer to the prices in
the Stock Exchanges as reported in the Economic Times.)
Interest
At SBAR Floating i.e. 12.25% p.a.
Repayment Schedule
To be liquidated in maximum period of 30 months through a suitable reducing DP programme.
In case of a default or if the outstanding is over Rs.20.00 lacs, the shares/debentures will be
transferred in the name of the Bank.
Security:
Pledge of the demat shares/debentures against which overdraft is granted.
Statement of problem
IDBI Main Branch, Bhubaneswar want to know about the customer perception about the
To find out what kind of service provide by the competitors in advance product.
To find out the need of the customer and hence formulate the strategy to level the
To find out the need of the customer in east region of Delhi and introduce new product
Summer Internship Project gives a practical exposure and helps in acquiring the on road skills.
First and foremost objective is to find out the reasons for using of Advance Product from
IDBI.
To find out the services that other bank given to their customer.
To generate the leads through the survey.
To sort out the prospective leads from the data I have collected through the survey.
To build the relationship with the customers and to follow up them, make sure that they
are satisfied with the product.
To get more references from the customers and generate new leads by following a chain
process.
To find out the customer awareness on booming Advance Product market and to find out
the using patterns of the people
To make the customer aware of the benefits of the product and convince him to go for
IDBI Advance Product.
Significance and scope
The geographical scope of the study is restricted to East Delhi only with sample size of 30
people.
All the analysis and suggestions are based on the analysis of the both primary and secondary
data.
Therefore the scope of the study revolves around the following aspects:-
Research methodology is a methodology for collecting all sorts of information & data pertaining
to the subject in question. The objective is to examine all the issues involved & conduct situational
analysis. The methodology includes the overall research design, sampling procedure & fieldwork
done & finally the analysis procedure. The methodology used in the study consistent of sample
survey using both primary & secondary data. The primary data has been collected with the help
of questionnaire as well as personal observation book, magazine; journals have been referred
for secondary data. The questionnaire has been drafted & presented by the researcher himself.
Sample Size:
Sample of 30 people was taken into study, and their data was collected
Sampling Technique:
Data Collection:
Data Analysis:
After data collection, I’m able to analyze customer’s views, ideas and opinions related
to Advance Product and about IDBI Advance Product and from this, IDBI will come to
know the customer requirements.
Data Interpretation:
Out of the total respondents, the respondents who responded logically were
taken into account while going into statistical details & analysis of data. The
tools that have been used for analyzing data & inference drawing are mainly
statistical tools like percentage, ranking, averages, etc.
As per questionnaire and market surveys I have find out different responses from different people.
According to their responses I analyze the findings and draw certain remarks.
CHAPTER-4
Analysis of data
GRAPHICAL REPRESENTATION OF DATA
( ) No. of People
IDBI 60 % (1200)
ICICI 33 % (660)
HDFC 5% (100)
OTHER 2% (40)
TOTAL NO. OF PEOPLE 2000
RESPONSES OF PEOPLE IN %
5% 2%
33% SBI
ICICI
60%
HDFC
OTHER
It has been observed that approximately 60% correspondents are using the service of IDBI for
their daily transaction, around 33% of people are using ICICI Bank for their transaction and only
5% & 2% of people are using HDFC & other Bank service respectively in Bhubaneswar. It also
shows that IDBI have the highest market position in Bhubaneswar as per my sample.
Q2. Are you aware of products & services provided by IDBI?
NO 15% (300)
Total No. of People 2000
NO
15%
YES
85%
From the above data it is clear that most of the customers (around 85%) of Bhubaneswar have
the idea about the product & services of IDBI, the rest 15% have the idea about the product
they are using. In this 15% most of the people are from typical rural area (Farmers).
Q3. If yes are you aware of the advance products (Loan segments) of IDBI?
YES 95%(1900)
NO 5% (100)
% OF PEOPLE
5%
YES
NO
95%
It is clear that most of the people have the idea about the advance product of IDBI. Almost all the
95% people who have the idea about the advance product are the user of IDBI product & service.
Q4. Which bank you prefer for taking loans?
85% (1800)
IDBI
ICICI 7% (140)
HDFC 2% (40)
OTHER 1% (20)
Sales
2% 1%
12%
SBI
ICICI
HDFC
85% OTHER
Q5. If you prefer IDBI for taking loan than what influence you to take Loan from IDBI?
Most of the people said that they prefer IDBI for taking loan because of the transparency and the
lowest interest rate for any kind of loan product. And it is easy to get loan from IDBI as compare
to other bank because less paper work is require and as it is the largest govt. bank in India and
having partnership with RBI (Reserve Bank of India) and other association, it is easier for IDBI to
give loan to people with a longer repayment period.
10%
8%
HOME LOAN
47%
15% EDUCATIONAL LOAN
CAR LOAN
20% PERSONAL LOAN
OTHER
From the sample size 85% of people are using the IDBI loan product. From the 1800 people 47%
of people took home loan from IDBI. 20% of people took education loan for their children, 15% of
people took car loan from IDBI. Some of the customer took 2 type of loan from IDBI like both car
& educational loan and home & car loan. 10% of people took personal loan.
Q7. What do you feel about the services providing by IDBI in advance product?
Bad 0% (0)
Satisfactory 2% (40)
0% 2%
43%
BAD
SATISFACTORY
55%
GOOD
EXCELLENT
From this it is clear that the service provide by IDBI in its advance product is good in between
the customer. All of them satisfy with the product provide by IDBI. 55% of people said that the
service provide by IDBI is good & 43% said it is excellent & just 2% of people said that it is
satisfactory.
Most of the people like the attractive interest rate & longer repayment period. It’s easier for
people to repay the whole loan amount with its interest with low interest rate and with longer
repayment period.
CHAPTER-5
Findings
Suggestion & Recommendation
Conclusion
PROJECT Findings:
From this project it is found that IDBI advance product having the 1st place in the market
at Bhubaneswar, there is a great opportunity to compete with ICICI Bank & to retain its
customer by fulfilling the requirement of customer in IDBI advance product.
It has been observed that approximately 85% correspondents are using advance
product of IDBI and 15% are not using any type of advance product of IDBI in
Bhubaneswar.
All of IDBI customers are satisfied with the services provided by the bank.
Many of these customers satisfied with the low interest rate and longer repayment period
of the advance product.
Most of the customers at Bhubaneswar prefer to take loan from IDBI.
Approximately 43% of advance product users said that the service of IDBI in advance
product is excellent.
A response from customer care is so clear & good.
Many customers have no time to call customer care so that they are not able to know
about the service & features of IDBI advance product.
Most customers are shifted from other bank’s advance product to IDBI because of hidden
charges, high interest rate, less repayment period.
Government employees are more concern than private employees for advance product.
Recommendation:
Customer awareness program is required so that more people should attract towards
advance product.
If there are any kind of hidden charges than that must disclose to customer before giving
loan to them.
IDBI must take some steps so that customers can get their loan in time. Like phone
verification by customer care that one customer is got their loan on time or not .It must be
before a certain date so necessary steps can be taken.
IDBI should more concern about physical verification rather than phone verification so it
will avoid fraud or cheating.
Advance product selling agents must not give any type of wrong information regarding
advance product.
For the better service new offers would be require.
IDBI customer care should more concern about the fastest settlement of customer
problems.
Before deducting or charging any monetary charge IDBI must consult with customer.
Agents should be trained, well educated & proper trained to convince the people about
different advance product.
It is the duty of the bank to disclose all the material facts regarding advance product, like
interest charged, repayment period, other types of charges, etc.
Special scheme should be implemented to encourage both customer and agents.
The bank should increase the period for repayment of loan.
IDBI should more focus on Retaining existing customers.
IDBI must focus on Segmentation based on customer knowledge Product offering based
on customer demand.
IDBI must take feedbacks of customers regarding features & services.
Suggestions given by the consumers at the time of survey:
There is more time period for repayment of education loan.
( Namrata Das )
Education loan should be providing to private college also which is not under AICTE or
any kind of University.
( Pinaki Bal )
IDBI should take steps to solve customer problems immediately.
( Gopinath Mahapatra )
Agents should be trained, well educated & proper trained to convince the people about
different advance product.
(P.Anish Nath)
Loan sanction date should be according to customer convenient.
(Joytirmaya Behera)
A customer awareness program should be taking place in rural area.
CONCLUSION
From the analysis part it can be conclude that customers have a good respond towards IDBI
advance products in Bhubaneswar. IDBI is in 1st position having large number of customers &
providing good services to them. The bank has a wide customer base, so the bank should
concentrate on this to retain these customers.
In present scenario IDBI is the largest advance product issuer in India. Within a very short
period of time the achievement made by IDBI is excellent, what a normal bank cannot expect,
but it is being done by IDBI. It happens due to employee dedication towards the organization,
fastest growing Indian economy, & brand image.
Text Books:
Solomon, Michael R. (2002), Consumer Behavior: Buying, Having, Being. 5th Ed.
New Jersey: Prentice Hall
Internet:
www.google.co.in
www.IDBI.com
www.IDBI.co.in
www.bnet.com