PROJECT REPORT

On
“Comparative Analysis Of IDBI Bank Loan Services with its Competitors”

Submitted to
Mr. Vikas Saini
Service and Operation Manager

IDBI Bank Ltd.

In partial fulfilment of the requirements of the course

Of the
Summer Internship Program
(2013-2015)

By
Himanshi Gupta
NIEC, IP University

Certificate of approval
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
Page no.
Chapter 1…………………………………………………………………………..04
Company Profile
 Overview…………………………………………………………………...05
 History……………………………………………………………………...07
 Competitors…………………………………...…………………………....09
 Strength/Opportunity & weakness/Threats………………………………...10
 Different Products……………………...………….……………………….11
 Awards & Recognitions by IDBI……….……………………………….......12

Chapter 2…………………………………………………………………………..14
 Introduction to Advance Product...…………………………….……………15
 IDBI Advance Product.……………………………………………………....16
 Statement the Problem……………………………………………………...25
 Research objectives…………………………………………...…………….26
 Significance and scope……………………………………………………...27

Chapter 3………………………………………………………………………….28
Research methodology

Chapter 4 ………………………………………………………………………...31
Analysis of data

Chapter 5………………………………………………………………………....39
 Findings……………………………………………………………………40
 Suggestion & Recommendation……………………………………...….. 41
 Conclusion…………………………………………………………………43

Annexure (Questionnaire)………….……………………………………………44

Bibliography………………………………………………………………….…...47

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.
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

 Retail banking: It provides a wide range of products and services like

deposits, loans, NRI services, demat, pension account, mobile banking,
internet banking, investment schemes such as mutual fund, insurance
products, bonds, debentures etc.
 Corporate banking: It provides corporates project finance, film finance,
foreign currency loan, working capital finance, treasury products, etc.
 Agri business and microfinance: It provides finance to agri businesses in the
form of dairy loans, farm mechanization loans, financing for fisheries, poultry,
 piggery, warehouse receipt finance, etc.
 SME: IDBI Bank also offers products and services to SME sector.

Subsidiaries of the bank

 IDBI Capital Markets

 IDBI Intech
 IDBI Asset Management

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
Competitors and other players in the field:-
Top Performing Public Sector Banks

Andhra Bank
Allahabad Bank
Punjab National Bank
Dena Bank
Vijaya Bank

Top Performing Private Sector Banks

HDFC Bank

ICICI Bank

AXIS Bank

Kotak Mahindra Bank

Centurion Bank of Punjab

Top Performing Foreign Banks

Citibank

Standard Chartered

HSBC Bank

ABN AMRO 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.

• Delay in technology upgradation could result in loss of market shares.

• Management indicated a likely pension shortfall on account of AS-15 to be close to

Rs50bn.

• 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

 Current  Loan Against  International  Stamp Duty

Account Property Debit cum ATM Payments
card

 Fixed  Personal  Gift Card  Easy Fill Bill

Deposits Loans Payments

 Pension  Auto Loan  World Currency  Card To Card

Card Money Transfer
Account

 Sabka  Loans  Cash Card Kids

Account against Debit
Securities

 Suvidha Tx  Education  Platinum Card  Online Payments

Saving Fixed Loan
Deposit

 Jublie Plus  Reverse  Foundation Day

Account Mortgage Cash Back
Loan Scheme 2009

 Super Shakti  Pay Mate

Account for
Women
 Introduction to Advance Product

 IDBI Advance Product

 Statement the Problem

 Research objectives

 Significance and scope

Introduction to Advance Product:

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

Extension/ repair/ renovation/ alteration of an existing House/ Flat

Purchase of Furnishings and Consumer Durables as a part of the project cost.

Takeover of an existing loan from other Banks/ Housing Finance Companies.

Eligibility

Minimum age 18 years as on the date of sanction

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

40 to 60 times of NMI, depending on repayment capacity as % of NMI as under –

Net Annual Income EMI/NMI Ratio

Upto Rs.2 lacs 40%
Above Rs.2 lac to Rs. 5 lacs 50%
Above Rs. 5 lacs 55%

To enhance loan eligibility you have option to add:

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

Margin (Special Festival Season Offer)

  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%

Interest Rates w.e.f 27.2.2008

Floating interest rates

(linked to IDBI Rate )

(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 Rs.30 2.00% below 1.75% below 1.50% below
Lacs SBAR, 10.25% p.a. SBAR, 10.50% p.a. SBAR, 10.75% p.a.

Fixed interest rates

Tenure Rate of Interest

(p.a.)*Upto 10 years 12.75%

* 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

You can take finance for:

A new car, jeep or Multi Utility Vehicles (MUVs)

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

To avail an IDBI Car Loan, you should be :

 Individual between the age of 21-65 years of age.

 A Permanent employee of State / Central Government, Public Sector Undertaking,
Private company or a reputed establishment or
 A Professionals or self-employed individual who is an income tax assessee or
 A Person engaged in agriculture and allied activities.
 Net Annual Income Rs. 100,000/- and above.
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:

1. Statement of Bank account of the borrower for last 12 months.

2. 2 passport size photographs of borrower(s).
3. Signature identification from bankers of borrower(s).
4. A copy of passport /voters ID card/PAN card.
5. Proof of residence.
6. Latest salary-slip showing all deductions
7. I.T. Returns/Form 16: 2 years for salaried employees and 3 years for professional/self-
employed/businessmen duly accepted by the ITO wherever applicable to be submitted.
8. Proof of official address for non-salaried individuals.
If you are not an account holder with IDBI you would also need to furnish documents that
establish your identity and give proof of residence.

Margin

New / Used vehicles: 15% of the on the road price.

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

Repayment Period All Centers (SBAR - 12.25%)

Upto 3 years (for loans Rs. 7.5 lac &
above)
Upto 3 years (for loans below Rs. 7.5 lac)
Above 3 yrs up to 5 yrs (for all loans)
Above 5 yrs up to 7 yrs (for all loans)
0.75% below SBAR i.e. 11.50% p.a.
0.50% below SBAR i.e. 11.75%p.a.
0.50% below SBAR i.e. 11.75% p.a.
0.25% below SBAR i.e. 12.00% p.a.

2. Used Vehicles: Floating only W.E.F. February 27, 2008

Repayment Period All Centers (SBAR-12.25%)

Upto 3 years 3.00% above SBAR i.e. 15.25% p.a.
Above 3 yrs up to 7 yrs 3.25% above SBAR i.e. 15.50% p.a.

B. For Overdrafts: For New Vehicles only W.E.F. February 27, 2008

Repayment Period All Centres (SBAR 12.25%)

Upto 3 years (for loans Rs. 7.5 lac &
above)
Upto 3 years (for loans below Rs. 7.5 lac)
Above 3 yrs up to 5 yrs (for all loans)
Above 5 yrs up to 7 yrs (for all loans)
0.25% below SBAR i.e. 12.00% p.a.
At SBAR i.e. 12.25% p.a.
At SBAR i.e. 12.25% p.a.
0.25% above SBAR i.e. 12.50% p.a.

EDUCATION LOAN:

A term loan granted to Indian Nationals for pursuing higher education in India or abroad where
admission has been secured.

Eligible Courses

All courses having employment prospects are eligible.

 Graduation courses/ Post graduation courses/ Professional courses

 Other courses approved by UGC/Government/AICTE etc.
Expenses considered for loan

 Fees payable to college/school/hostel

 Examination/Library/Laboratory fees
 Purchase of Books/Equipment/Instruments/Uniforms
 Caution Deposit/Building Fund/Refundable Deposit (maximum 10% tution fees for the
entire course)
 Travel Expenses/Passage money for studies abroad
 Purchase of computers considered necessary for completion of course
 Cost of a Two-wheeler upto Rs. 50,000/-

Any other expenses required to complete the course like study tours, project work etc.

Amount of Loan

 For studies in India, maximum Rs. 10 lacs

 Studies abroad, maximum Rs. 20 lacs

Interest Rates
(with effect from 1st June 2008)

For loans up to Rs.4 lacs - 11.75 % p.a. Floating

For loans above Rs. 4 lacs and upto Rs.7.50 lacs - 13.25 % Floating
For loans above Rs.7.50 lacs - 12.25% p.a. Floating
Processing Fees

 No processing fee/ upfront charges

 Deposit of Rs. 5000/- for education loan for studies abroad which will be adjusted in the
margin money

Repayment Tenure

Repayment will commence one year after completion of course or 6 months after securing a
job, whichever is earlier.

Place of Study Loan Amount Repayment in Period

Years

Studies in India Rs. 10.0 lacs 5-7

Studies Abroad Rs. 20.0 lacs 5-7

Security

Amount For loans upto Rs. 10.00 lacs for Studies in

India and upto Rs. 20.00 lacs for studies abroad

Upto Rs. 4 lacs No Security

 Above Rs. 4 lacs to Rs. 7.50
Above 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"
Tangible collateral security of suitable value, along
with the assignment of future income of the student
For payment of installments.

All loans should be secured by parent(s)/guardian of the student borrower. In case of

married person, co-obligator can be either spouse or the parent(s)/ parents-in-law

Margin

 For loans up to Rs.4.0 lacs : No Margin

 For loans above Rs.4.0 lacs:
o Studies in India: 5%
o Studies Abroad: 15%

Documentation Required

 Completed Education Loan Application Form.

 Mark sheets of last qualifying examination
 Proof of admission scholarship, studentship etc
 Schedule of expenses for the specified course
 2 passport size photographs
 Borrower's Bank account statement for the last six months
 Income tax assessment order, of last 2 years
 Brief statement of assets and liabilities, of the Co-borrower
 Proof of Income (i.e. Salary slips/ Form 16 etc)

IDBI SARAL PERSONAL LOAN:

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:

For existing bank customers

Passport size photograph

From salaried individuals

Latest salary slip and Form 16

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:
A. An individual who is;
a. An Employee or
b. A Professional, self-employed or an income tax assesse or
c. Engaged in agricultural and allied activities.

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.

C. Maximum age limit: 60 years.

Salient Features

Loan Amount

Minimum: Rs.25, 000/-

Maximum: Rs.1 crore. The amount is decided by the following calculation:

 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

As per banks extant instructions.

LOAN AGAINST SHARES \ DEBENTURES:

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.

The facility is available at 50 select centers.

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

advance product provide by them to the people.

 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

economy in the society.

 How the products are helping the customer.

 To know the utility of the product.

 To find out the need of the customer in east region of Delhi and introduce new product or

facilitate new service in existing product.

 Research objectives
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 maintain good relationship with the corporate employees.

 To get more references from the customers and generate new leads by following a chain
process.

 To place IDBI Advance Product ahead of the competitors.

 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:-

 Consumer perception towards Advance Product

 Consumer awareness about Advance Product scheme and its benefit.
 Aware the Bank about the customer problems, especially in case of automobile sector.
Research methodology

Research methodology
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:

To study the Project, a Simple Random Sampling technique is used.

 Data Collection:

Collection of data is done by

Secondary Data & through
 Questionnaire
i.e., Primary data was collected through Questionnaire.

 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:

 Interpretation of data is done by using statistical tools like Pie diagrams,

Bar graphs, and also using quantitative techniques (by using these
techniques) accurate information is obtained.

 Classification & tabulation of data:

 The data thus collected were classified according to the categories,

counting sheets & the summary tables were prepared. The resultant
tables were one dimensional, two dimensional.

 Statistical tools used for analysis:

  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.
 Analysis of data

GRAPHICAL REPRESENTATION OF DATA

Q1. On which bank you depend for your regular transaction?

( ) 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
HDFC

60% 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?

 YES 85% (1700)

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)

TOTAL NO. OF PEOPLE 2000

% 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)

TOTAL NO. OF PEOPLE 2000

Sales
2% 1%
12%

SBI
ICICI
HDFC
OTHER

85%

According to my sample size 85% of people prefer IDBI for loan product, but some people
prefer ICICI, HDFC or OTHER Bank for loan because they are working with that bank & it is
easier for them to get loan from their bank & it easier for them to pay the interest because it is
less as compare to other bank because they are the employee of that bank.

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.

Q.6 Which loan product of IDBI you have used?

HOME LOAN 47% (846)

EDUCATIONAL LOAN 20% (360)
CAR LOAN 15% (270)
PERSONAL LOAN 10% (180)
OTHER 8% (144)
TOTAL NO. OF PEOPLE 1800

Sales

10% 8%
HOME LOAN
EDUCATIONAL LOAN
47%
15% CAR LOAN
PERSONAL LOAN
OTHER

20%

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)

Good 55% (1100)

Excellent 43% (860)

TOTAL NO. OF PEOPLE 2000

CUSTOMER PERCEPTION TOWARDS THE SERVICE

PROVIDE BY SBI IN ADVANCE PRODUCT

2%

BAD
43%
SATISFACTORY
GOOD
EXCELLENT
55%

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.

Q8. Which features you like most in Loan segments of IDBI?

LESS PAPER WORK 3% (60)

 ATTRACTIVE INTEREST RATE 35% (700)

TRANSPARENCY 20% (400)

SIMPLE AND FAST PROCESSING 2% (40)

LONGER REPAYMENT PERIOD 40% (800)

TOTAL NO. OF PEOPLE 2000

FEATURES LIKE BY CUSTOMER

45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
K E Y G
OR AT NC SIN OD
R E S ERI
W ST AR E P
ER RE P OC T
AP E NS R EN
P NT A
ST
P M
SS EI TR
FA AY
LE IV
RE
P
A CT E& R
TR PL GE
AT SIM LO
N

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.
 Findings
 Suggestion & Recommendation
 Conclusion

PROJECT Findings:
  From this project it is found that IDBI advance product having the 1 st 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.

REASONS FOR HIGHLY USE OF IDBI ADVANCE PRODUCT:

 LESS PAPER WORK

 ATTRACTIVE INTEREST RATES
 TRANSPARENCY
 SIMPLE & FAST PROCESSING
 LONGER REPAYMENT PERIOD
 QUICK PROCESSING

Suggestion & Recommendation

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 1 st 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.

To be the largest advance product issuer, IDBI should focus on-

 Launch Innovative product

 Customized advance products
 Better customer services
 Fastest customers problem solving techniques
 Customer retention
Apart from all the above, IDBI believe in providing good customer services to their customers
which is a key factor for success in future.
Questionnaire
Name - _____________________________________

Occupation-__________________________________

Contact Detail -_______________________________

Q. On which bank you depend for your regular transaction?

a) IDBI
b) ICICI Bank
c) HDFC Bank
d) Other Bank, Specify (_____________)

Q. Are you aware of products & services provided by IDBI?

a) YES
b) NO

Q. If yes are you aware of the advance products (Loan segments) of IDBI?
a) YES
b) NO

Q. Which bank you prefer for taking loans?

a) IDBI
b) ICICI Bank
c) HDFC Bank
d) Other Bank, Specify (_____________)

Q. If you prefer IDBI for taking loan than what influence you to take Loan from IDBI?

_________________________________________________________________________________
_________________________________________________________________________________
_________________________________________________________________________________
__________________________________________________.

Q. Which loan product of IDBI you have used?

a) Home Loan
 b) Education Loan
c) Car Loan
d) Personal Loan
e) Other Loans, Specify ( ______________ )

Q. What do you feel about the services providing by IDBI in advance product?
a) Bad
b) Satisfactory
c) Good
d) Excellent

Q. Which features you like most in Loan segments of IDBI?

a) Less paper work
b) Attractive interest rate
c) Transparency
d) Simple & fast processing
e) Flexibility to choose an EMI base loan or an overdraft
f) Longer tenure lone for ease of repayment
g) Specially design product for self employed
h) Any other feature, specify ( _____________ )

Q. Any suggestion you want to give for the betterment of IDBI advance product.

_________________________________________________________________________________
_________________________________________________________________________________
_________________________________________________________________________________
________________________________________________________.
Bibliography:
Text Books:

Solomon, Michael R. (2002), Consumer Behavior: Buying, Having, Being. 5th Ed.
New Jersey: Prentice Hall

Wilson A. (2003), Marketing Research: An Integrated Approach

Naresh Ku. Malhotra, Marketing Research: An Applied Orientation, Fifth Edition

Internet:
 www.google.co.in
 www.IDBI.com
 www.IDBI.co.in
 www.bnet.com