TOPIC : TO STUDY THE CREDIT APPRAISAL SYSTEM OF HDFC LTD AND

COMPARATIVE AND DO A COMPARATIVE STUDY BETWEEN HDFC LTD AND

SBI HOME LOANS

( A ) GENERAL MANAGEMENT

1) INTRODUCTION TO THE INDUSTRY

Housing is a primary necessity in every economy and is a basic indicator of growth and
social well-being. Development of housing is not just important to economic growth but is also
one of the tools for economic development considering the accelerator impact it has on
various industries including construction and infrastructure sector; it generates demand for
supporting industries and leads to creation of job opportunities. Development of housing in a
country is a sign of economic welfare.

For any emerging economy, development of the housing sector has its own challenges.
The biggest of these challenges is access to finance. While investment in real estate is an
easy candidate for borrowing, real estate lending is more opportunity-based. In India, access
to finance for housing needs is largely concentric and focused at higher income groups, as that is
the sector where there are formal evidences of income such as salary slips or income-tax returns.
Since lenders tend to lend to sectors where lending is the easiest, the lower segments of the
population pyramid will remain unserved or underserved, if the system was left entirely to itself.
Therefore, there is a need, in every financial system, to enable access to finance by lower
segments of the population pyramid.

While the upper middle-income segment is well-served by banks and mortgage lenders,
the lower middle income segment has low or no access to banks for mortgage finance; creating
a huge demand in this segment and lack of access of finance. The fact that the upper segments of
the pyramid are well-served is evident from the highly competitive mortgage lending
rates prevailing for the sector. There is also a much longer way to travel in terms of ensuring the
availability of housing finance to low income to middle income groups. 

India has a diversified financial sector undergoing rapid expansion, both in terms of strong
growth of existing financial services firms and new entities entering the market. The sector
comprises commercial banks, insurance companies, non-banking financial companies, co-
operatives, pension funds, mutual funds and other smaller financial entities. The banking
regulator has allowed new entities such as payments banks to be created recently thereby adding
to the types of entities operating in the sector.
However, the financial sector in India is predominantly a banking sector with commercial banks
accounting for more than 64 per cent of the total assets held by the financial system.
The Government of India has introduced several reforms to liberalise, regulate and enhance this
industry. The Government and Reserve Bank of India (RBI) have taken various measures to
facilitate easy access to finance for Micro, Small and Medium Enterprises (MSMEs). These
measures include launching Credit Guarantee Fund Scheme for Micro and Small Enterprises,
issuing guideline to banks regarding collateral requirements and setting up a Micro Units
Development and Refinance Agency (MUDRA). With a combined push by both government and
private sector, India is undoubtedly one of the world's most vibrant capital markets. In 2017,a
new portal named 'Udyami Mitra' has been launched by the Small Industries Development Bank
of India (SIDBI) with the aim of improving credit availability to Micro, Small and Medium
Enterprises' (MSMEs) in the country. India has scored a perfect 10 in protecting shareholders'
rights on the back of reforms implemented by Securities and Exchange Board of India (SEBI).

While India’s NBFCs are often loosely referred to as shadow lenders, that catch-all term does not
capture the sector’s diversity. NBFCs in fact encompass a wide range of non-bank financial
institutions that employ a range of business models: asset-based finance, direct investment, and
traditional lending, to name a few. Not all NBFCs need a license from the Reserve Bank of
India (RBI), and many are not subject to the central bank’s supervision. As one example,
Housing Finance Companies, non-banks that specialize in real estate sector loans are not
included in RBI statistics measuring the industry.
This market is highly fragmented with a total of more than 10,000 non-bank lenders at yearend
2018. As of March 2019, 265 NBFCs were designated as systemically important by RBI as their
assets exceed the 5 billion rupee ($72 million) threshold. Systemically important non-bank
lenders constitute 84.8 per cent of the NBFC sector’s total assets, while the vast majority of
NBFCs are small lenders.

Market Size
The MF industry’s AUM has grown from Rs 10.96 trillion (US$ 156.82 billion) in October 2014
to Rs 26.33 trillion (US$ 376.73 billion) in October 2019.
Another crucial component of India’s financial industry is the insurance industry. The insurance
industry has been expanding at a fast pace. The total first year premium of life insurance
companies reached Rs 214,673 crore (US$ 30.72 billion) during FY19.
Along with the secondary market, the market for Initial Public Offers (IPOs) has also witnessed
rapid expansion. In FY19, Rs 14,674 crore (US$ 2.10 billion) has been raised from Initial Public
Offerings (IPOs).
Furthermore, India’s leading btheirse Bombay Stock Exchange (BSE) will set up a joint venture
with Ebix Inc to build a robust insurance distribution network in the country through a new
distribution exchange platform.

Growth rate

Government incentives to boost the residential real estate sector, especially budget housing, may
push housing credit growth to 17-19 per cent in the current fiscal year, according to a report.

"Growing affordability for the first-time home buyers, supported by government incentives like
the PM's Awas Yojana are expected to result in a rise in primary home purchases, especially in
the affordable housing segment, which will help segmental loan growth to 17-19 per cent,"the
Icra report said.
Housing credit grew 16 per cent in FY18, taking the mortgage penetration (housing credit as a
percentage of GDP) to double-digit mark of 10 per cent for the first time in FY18, up from 9.5
per cent in FY17.

Overall housing credit grew 39 per cent in the year to March 2018, which was pushed by new
mortgage players in the affordable housing segment.

"We expect mortgage penetration level to go up by 300 -500 bps over the next five years," the
report said.

Overall asset quality indicators for all housing finance firms remained stable with gross NPAs of
1.1 per cent for FY18, better than the 1.2 per cent in December 2017 but worse than the 0.8 per
cent NPAs in FY17.

Icra expects overall gross NPAs for housing finance companies (HFCs) to remain range-bound
between 1.2 and 1.5 per cent this year.

"The retail home loan asset quality of HFCs is likely to be benefited by the recent Cabinet
decision to treat home buyers as financial creditors," it said.

However, gross NPAs in the sub-segment deteriorated from 3.3 per cent in FY17 to 4.1 per cent
in FY18, driven by greater portfolio seasoning, entity-specific factors in some cases and external
events such as note-ban and GST rollout, which have impacted cash flows of borrowers.
Growth to large industries and medium and small scale businesses shrank in FY20 till November
but retail and housing loans grew strongly, RBI data showed.

Loans to NBFCs also grew strongly though the growth was slower than in FY19 thanks to
problems in select firms.
Retail loans grew 16.40 per cent in 12 months ended November 2019, down marginally from
17.20 per cent growth in the previous year. Retail loan growth during the period from April to
November 2019 was 8.30 per cent same as the 2018 figure.

CONTRIBUTION TO GDP

Service sector contributes maximum to the gdp of the country.

In 2017, its contribution was 61.5% to the gdp.

The sector has contributed 54.17 per cent of India’s Gross Value Added at current price in 2018-
19*. India’s services sector GVA grew at a CAGR of 6.96 per cent to US$ 1,356.49 billion in
FY19* from US$ 846.84 billion in FY12. Net export estimate from April to November 2019 in
services is US$ 142.02 billion and import is US$ 89.24 billion.

The credit granted by NBFCs as a percentage of GDP rose to 8%, displaying their significance in
the country’s financial ecosystem. 

NBFCs (Non Banking Financial Companies) play an important role in promoting inclusive
growth in the country, by catering to the diverse financial needs of bank excluded customers.
Further, NBFCs often take lead role in providing innovative financial services to Micro, Small,
and Medium Enterprises (MSMEs) most suitable to their business requirements. NBFCs do play
a critical role in participating in the development of an economy by providing a fillip to
transportation, employment generation, wealth creation, bank credit in rural segments and to
support financially weaker sections of the society. Emergency services like financial assistance
and guidance is also provided to the customers in the matters pertaining to insurance.
 

NBFCs are financial intermediaries engaged in the business of accepting deposits delivering
credit and play an important role in channelizing the scarce financial restheirces to capital
formation. They supplement the role of the banking sector in meeting the increasing financial
needs of the corporate sector, delivering credit to the unorganized sector and to small local
borrowers. However, they do not include services related to agriculture activity, industrial
 activity, sale, purchase or construction of immovable property. In India, despite being different
from banks, NBFC are bound by the Indian banking industry rules and regulations.
 

NBFC focuses on business related to loans and advances, acquisition of shares, stock,
bonds, debentures, securities issued by government or local authority or other securities of like
marketable nature, leasing, hire-purchase, insurance business, chit business.
 

The banking sector would always be the most important sector in the field of business because of
its credibility in supporting manufacturing, infrastructural development and even being the
backbone for the common man's money. But despite this, the role of NBFCs is critical and their
presence in a country would only boost the economy in the right direction.
Game Changers
P Vijaya Bhaskar, ex – Excutive Director, RBI, explained how NBFC companies are game-
changers that are very important to the economy
 Size of sector : The NBFC sector has grown considerably in the last few years despite
the slowdown in the economy.
 Growth : In terms of year-over-year growth rate, the NBFC sector beat the banking
sector in most years between 2006 and 2013. On an average, it grew 22% every year. This
shows, it is contributing more to the economy every year.
 Profitability : NBFCs are more profitable than the banking sector because of lower
costs. This helps us offer cheaper loans to customers. As a result, NBFCs' credit growth - the
increase in the amount of money being lent to customers – is higher than that of the banking
sector with more customers opting for NBFCs.
 Infrastructure Lending : NBFCs contribute largely to the economy by lending to
infrastructure projects, which are very important to a developing country like India. Since they
require large amount of funds, and earn profits only over a longer time-frame, these are riskier
projects and deters banks from lending. In the last few years, NBFCs have contributed more to
infrastructure lending than banks.
 Promoting inclusive growth : NBFCs cater to a wide variety of customers - both in
urban and rural areas. They finance projects of small-scale companies, which is important for the
 growth in rural areas. They also provide small-ticket loans for affordable housing projects. All
these help promote inclusive growth in the country.
NBFCs aid economic development in the following ways
 Mobilization of Restheirces - It converts savings into investments

 Capital Formation - Aids to increase capital stock of a company

 Provision of Long-term Credit and specialised Credit

 Aid in Employment Generation

 Help in development of Financial Markets

 Helps in Attracting Foreign Grants

 Helps in Breaking Vicious Circle of Poverty by serving as government's instrument

The Technology Backbone
With the increasing role of NBFCs in the Indian Economy, the Reserve Bank of India has issued
the notification Master Direction - Information Technology Framework for the NBFC Sector this
year. The directions on IT Framework for the NBFC sector are expected to enhance safety,
security, efficiency in processes leading to benefits for NBFCs and their customers. NBFCs with
asset size above 500 crores are expected to adhere to the new "recommendations" by 30th
September 2018. Recommendations for smaller NBFCs include developing basic IT systems
mainly for maintaining the database.
 

While larger NBFCs stare at a strict deadline, smaller NBFCs, especially Fintech startups have a
bigger problem at hand; an identity crisis! The business models of startups like BankBaaar
mandate that they do not become a NBFC, while the nature of operations of startups like
Lendingkart makes us a NBFC as part of the legal compliance.

2) CHALLENGES AND OPPURTUNITIES

 GROWTH DRIVERS
The growth of financial sector in India was due to the development in sectors
Growth of the banking sector in India
The banking system in India is the most extensive. The total asset value of the entire banking
sector in India is nearly US$ 270 billion. The total deposits is nearly US$ 220 billion. Banking
sector in India has been transformed completely. Presently the latest inclusions such as Internet
banking and Core banking have made banking operations more user friendly and easy.

Growth of the Capital Market in India

 The ratio of the transaction was increased with the share ratio and deposit system
 The removal of the pliable but ill-used forward trading mechanism
 The introduction of infotech systems in the National Stock Exchange (NSE) in order to
cater to the various investors in different locations
 Privatization of stock exchanges

Growth in the Insurance sector in India

 With the opening of the market, foreign and private Indian players are keen to convert
untapped market potential into opportunities by providing tailor-made products.

 The insurance market is filled up with new players which has led to the introduction of
several innovative insurance based products, value add-ons, and services. Many foreign
companies have also entered the arena such as Tokio Marine, Aviva, Allianz, Lombard
General, AMP, New York Life, Standard Life, AIG, and Sun Life.

 The competition among the companies has led to aggressive marketing, and distribution
techniques.
 The active part of the Insurance Regulatory and Development Authority (IRDA) as a
regulatory body has provided to the development of the sector.

Growth of the Venture Capital market in India

 The venture capital sector in India is one of the most active in the financial sector inspite
of the hindrances by the external set up.

 Presently in India there are around 34 national and 2 international SEBI registered
venture capital funds

Government initiatives

Pradhan Mantri Awas Yojana (PMAY)

PMAY was initiated to make home ownership an affordable reality for the Economically Weaker
Sections (EWS) of the society. You get affordability through this scheme via interest subsidy of
up to Rs.2.67 lakh on your home loan. In order to avail benefits you first have to qualify as a
beneficiary as per your economic standing. Based on the annual income of your household you
can qualify as a beneficiary under the EWS, LIG, MIG 1, or MIG 2 category. Further, as a
beneficiary you will have to take a home loan to complete your home purchase. PMAY partners
with a list of reputed financial institutions like Bajaj Housing Finance Limited to add more ease
to your home buying process.

Based on the sub-section you qualify under, the loan amount and the size of house you are
eligible to buy is determined. Further, this affordable housing scheme gives preference to women
and senior citizens, making allotment of ground floor accommodation compulsory for senior
citizens. It is strict about eco-friendly construction too. All in all, PMAY is more of a home loan
scheme, as the benefits of PMAY are primarily extended through the Credit Linked Subsidy you
can access on a home loan.
Haryana Housing Board Housing Scheme
Under the Haryana Housing Board Act (Act No. 20 of 1971) the Haryana Housing Board came
in to existence in 1971. Since its inception, this state government board has prioritized home
construction and allotment in the state, primarily for the socially and economically weaker
sections of society. The Board is responsible for setting up construction divisions, design cells,
and other necessary committees that look in to the execution of the varied activities related to
affordable schemes.

HUDA or the Haryana Urban Development Authority (HUDA), better known as the Haryana
Shehri Vikas Pradhikaran (HSVP) scheme is a new housing scheme started by the Haryana
Housing Board. This scheme offers freehold residential and commercial plots. In order to be
eligible for the scheme, you will have to participate in a lottery as per the terms and deadline.
You need to pay a participation charge and your family income must be within Rs.3 lakh in order
to eligible for it. As a winner of the draw you will get access to a freehold plot.

Kerala Housing Board Housing Scheme

A public sector undertaking by the Government of Kerala, the Kerala State Housing Board was
founded in 1971. Right from the start, the board has implemented varied construction schemes
and schemes for home loans to meet the residential needs of the economically disadvantaged.
Some of the notable and affordable housing schemes the board has undertaken include the Griha
Sree Housing Scheme, Haritham Apartments, and Kowdiar Heights. As these are new housing
schemes, read in detail about each one on the official Kerala State Housing Board website before
you proceed to apply.

Irrespective of the government housing scheme  you choose, apply for an affordable Home
Loan with lenders like Bajaj Housing Finance Limited when you are ready to become a
homeowner. Here you can get a sanction of up to Rs.3.5 crore for a tenor of up to 240 months.
Moreover, you can avail a low-interest top-up loan. You can also enjoy easy doorstep pickup of
documents to fast track your application. To become a homeowner this year, check your pre-
approved home loan offer online and enjoy instant approval!
 The Maharashtra Housing and Area Development Authority Scheme
To provide affordable homes, MHADA or Maharashtra Housing and Area Development
Authority has housing schemes that operate through a lottery system. A certain number of houses
are set aside for this scheme and allotted on the basis of income. For example, MHADA Mumbai
has 1,300 homes ranging from Rs.14.6 lakh to Rs.5.8 crore. In 2019, 63 apartments priced under
Rs.20 lakh were reserved for EWS or Economically Weaker Section applicants, 126 flats priced
from Rs.20 to Rs.30 lakh were for Low-Income Group (LIG) applicants, 201 flats priced up to
Rs.60 lakh were for Middle-Income Group (MIG) applicants and 194 flats priced up to Rs.5.8
crore went to High-Income Group (HIG) applicants.

Delhi Development Authority Housing Scheme

Associated with PMAY’s Credit Linked Subsidy Scheme, the Delhi Development Authority
Housing Scheme provides economical housing to all on the basis of income. The DDA 2019
scheme was rolled out in March and offers 18,000 flats in Vasant Kunj and Narela. Apart from
the income-based categorisation, the scheme reserves apartments for war widows, disabled
persons, ex-servicemen and SC/ST individuals. Read on to know more.

Flats on offer
 DDA offers High Income Group (HIG) applicants 152 2BHK and 336 3BHK units
costing Rs.95 lakh–Rs.1.73 crore
 Middle Income Group (MIG) applicants are allotted 1,555 2BHK units costing Rs.66–99
lakh
 8,393 1BHK flats for Low Income Group (LIG) applicants cost Rs.23–56 lakh each
 7,496 flats, earmarked for the Economically Weaker Section (EWS) applicants, cost
Rs.10–19 lakh

In September last year, finance minister Nirmala Sitharaman had announced that the board of
National Housing Bank had approved a Rs 30,000 liquidity infusion facility for housing finance
companies, particularly to increase funding for the affordable housing sector. NHB board had
approved two rounds of funding of Rs 10,000 crore and Rs 20,000 crore in two tranches.
This additional liquidity facility of Rs 30,000 crore announced in September came on the heels
of another major announcement made by her in the Union budget presented in July this year. In
her maiden budget, Nirmala Sitharaman had announced a partial government guarantee scheme
for public sector banks for acquiring high rated pooled assets for financially sound NBFCs.
Under the scheme which was operationalised in September, the government guaranteed to cover
the loss of the 10% of the fair value of assets purchased by PSU banks.

Compulsory return of property documents within 15 days

In order to protect home buyers from harassment after the closure of the loan, the government
has directed PSU banks to compulsorily return the property documents within 15 days of the
closure of the loan.
Finance minister Nirmala Sitharaman confirmed earlier this month that all 18 PSU banks have
implemented this policy. And as per the latest data, there was 99.5% compliance in case of the
home loans closed since September 23 2019.

Income Tax concessions for home buyers

In a major relief to home buyers, In this year’s union budget, the government increased the
deduction on account of interest paid on home loans by another Rs 1.5 lakh. The provision would
be applicable on home loans borrowed up to March 2020 where the value of the house is less
than Rs 45 lakh.

The Reserve Bank also asked the scheduled commercial banks to link their lending rates with the
Repo Rate set by the RBI. The move was aimed at ensuring that the benefits of Repo Rate cuts
are passed on to the borrower and not pocketed by banks.
Another major step was to lower the rate of interest on house building advance (HBA) given to
the central government employees. The interest rate on the house building advance to
government employees was linked to 10-year government securities (G-Secs).
EMERGING TRENDS

The home loan market in India is not what it used to be. Over 4-5 decades ago, the home loan
market was being considered as rather unproductive sector. Reason being that not everyone was
comfortable with the idea of taking a loan.
However, with the advent of private sector banking things began changing as these banks started
offering various products to entice home buyers to opt for home loans. That’s not all. The public
sector banks soon followed suit and created a huge ripple.

This was just the beginning. Home loan are now being curated in a manner that is more
beneficial to the borrower. Here are some the trends that can be seen in the home loan segment:

Determination of loan amount

In the initial stages, RBI mandated some limits on lending as well as disallowed funding
registration and stamp duty charges on property purchases. As competition ensued lenders began
tweaking the terms and conditions of home loans to make it attractive for borrowers and allowed
all costs associated with the property purchase to be included for calculating the eligible loan
amount, including registration and stamp duty charges.

Calculation of interest

Starting with interest calculation on yearly periods, lenders now have moved to daily periods as
this move helps the borrowers to pay lesser amount of interest than they would pay if interest
were to be calculated on monthly or longer rests. You can now check your interest before you
avail a home loan.

EMI Options

Traditionally, EMI is calculated over the tenure of the loan and includes a principal repayment
component and an interest payment component. The feature of EMI is that during the initial
months of the tenure the interest payment component is high, and the principal repayment is
proportionately very low. Towards the end of the tenure, the reverse is true with the interest
payment component being very low and the principal repayment proportionately very high. On
longer tenures, borrowers would be stuck with a constant EMI without any flexibility to adjust
for volatility in their incomes. Therefore, lenders began offering flexi-EMI options where, as a
part of the original loan, borrowers could opt for a step-up flexi EMI plan, step-down flexi EMI
plan or a standard EMI plan.

If borrowers expect to earn more income during the later years they could opt for the step-up
flexi EMI plan commensurate with the income earned. You can read more about flexi EMI Plans
here.
Modernization of systems

With the advent of technology, several systems and processes have seen major changes.

Gone are the days when you would have to wait for a representative to explain the home loan
process and the documentation. Now, all the information you would need on your home loan
eligibility, documentation and process is available online. You can even calculate your EMI
online with an EMI calculator before you avail a home loan.

Not just that, the application process has become simple and effortless. And you can apply
for home loans online as well.

Updating records is all done through computers and transmitted electronically. Credit bureaus
have helped both borrowers and lenders to ensure as much transparency as possible. The
government and the RBI too evolved with the times and played a balancing role to protect the
interests of both the lenders and borrowers. They allowed lenders to blacklist defaulters and
auction their mortgaged properties to recover their dues.

Better customer experience

The home loan industry launched many innovations that included involving builders and
developers in the home loan process. Lenders began providing one-stop resources for home loans
tying up with builders, promoters and other stakeholders. They increased the use of technology
to provide a better experience to borrowers.

Pradhan Mantri Awas Yojana (PMAY)

The need for housing has been felt quite starkly so much so that the government has declared a
mission to provide housing for all by the year 2022. This is one trend that means a lot to the
home loan industry as the government has announced various incentives for the weaker sections
to help them to acquire a roof over their heads through its PMAY promising up to Rs 2,67,000
per home as interest subsidy under the credit linked subsidy scheme (CLSS). Want to know more
about affordable housing loan?

The future is bright

While these are the recent trends in the home loan industry, the segment will go through
additional changes as well. For starters, there have been some important legislations and policy
initiatives that have affected the home loan industry such as demonetization and introduction of
RERA. These measures ring in major changes in the way real estate is perceived as opposed to
what ensued in the earlier times

Trends that can be witnessed could include

• Further reduction of home loan interest rates
• Pre-approved home loans could be offered
• Governments would look at offering more incentives for home buying – second and third
homes may get tax concessions, tax concessions could increase, interest subsidies could increase
• Banks could determine home loan interest rates by switching to an external benchmark
• New technology and analytics could help in managing portfolios, reducing costs, repayments,
increasing efficiency, bringing accountability to various stakeholders, improving quality of
homes and reducing risks
• Improving the quality of authenticating documentation through technology

All in all, the home loan industry is undergoing metamorphosis from a disorganized state to a

more organized and transparent state. This augurs well for the home buyers as well as home loan
providers.

Road Ahead

 India is expected to be ftheirth largest private wealth market globally by 2028.

 India is today one of the most vibrant global economies, on the back of robust banking
and insurance sectors. The relaxation of foreign investment rules has received a positive
response from the insurance sector, with many companies announcing plans to increase
their stakes in joint ventures with Indian companies. Over the coming quarters there
could be a series of joint venture deals between global insurance giants and local players.
 The Association of Mutual Funds in India (AMFI) is targeting nearly five-fold growth in
assets under management (AUM) to Rs 95 lakh crore (US$ 1.47 trillion) and a more than
three times growth in investor accounts to 130 million by 2025.
 India's mobile wallet industry is estimated to grow at a Compound Annual Growth Rate
(CAGR) of 150 per cent to reach US$ 4.4 billion by 2022 while mobile wallet
transactions to touch Rs 32 trillion (USD $ 492.6 billion) by 2022.
 INTRODUCTION TO THE COMPANY

HDFC LTD

The Housing Development Finance Corporation (HDFC) Limited is a name that has been
associated with the Indian housing sector for the last three decades. As pioneers in housing
mortgages, it is a brand name that has been characterised by trust, solidity, both financial and
managerial and sound principles. Since the day of its incorporation in 1977, HDFC has
defined and set high standards in the housing finance sector.

AN EVENTFUL JOURNEY

HDFC’s founder, Mr. H T Parekh had a vision of a dynamic organisation, one that served the
customer first. This vision has also enabled HDFC to grow from a humble beginning to one of
the biggest players in the housing finance industry.

HDFC’s wide spread network of interconnected offices across India and outreach programs in
several towns and cities, ensures a seamless experience for home buyers and existing
customers. To cater to Non Resident Indians, HDFC has representative offices in London,
Dubai and Singapore and service associates in the Middle East.

Over the last ftheir decades, HDFC has grown to become a multi-product financial
conglomerate, diversifying itself into banking, life insurance, general insurance, asset
management, real estate venture funding and education loans.
VALUES AT THE CORE

HDFC has consistently striven for and developed an excellent reputation for transparency,
trust, integrity and an impeccable record of customer friendly services. These
uncompromising principles and core values are the unshakable elements that have provided
the company with the anchor to stay on ctheirse even during turbulent and changing times.

At HDFC, corporate governance is a voluntary, self-disciplining code, which not only

includes compliance with regulatory requirements, but also stresses on transparency and
fairness as well as responsiveness to customer needs.

Products to address customer needs

Throughout the course of its existence, HDFC has been an innovator. The company was the
first to launch almost every housing loan product that is on offer today, right from introducing
variable rate loans to offering customised repayment options based on individual customer
needs.

HDFC’s extensive product portfolio includes housing and non housing loans, catering to the
varied needs of different sets of consumers. Its diversified portfolio of loan offerings includes
loans for purchase / construction of a home or office, renovation, extension, rural housing
loans, loan against property  etc.

Technology has always been an important area for HDFC and it was the first company to
computerise the home loan process. Today, it has built capabilities to enable customers to
apply online for loans at their convenience besides offering a host of post disbursement online
services.

HDFC is one of the largest mobilisers of retail deposits outside the banking system in India. It
is the only company in the country to have received ‘AAA’ rating for its Deposits products for
highest safety consecutively for two and a half decades from two reputed credit rating
agencies.

HDFC Products

1) Home loans

This is the main product of HDFC Ltd.

They provide home loans for the following purposes :- 

Home Loans for purchase of a flat, row house, bungalow from private developers in approved
projects

Home Loans for purchase of properties from Development Authorities such as DDA, MHADA
etc

Loans for purchase of properties in an existing Co-operative Housing Society or Apartment

Owners' Association or Development Authorities settlements or privately built up homes.

2) Plot loans

These are loans for purchase of a plot through direct allotment.

3) Hdfc Rural Housing Finance 

If you are an agriculturist looking for a dream home in the rural or in urban areas, we make it
easy to fulfill your dream. Based on the agricultural land you own and the crops you cultivate,
HDFC's Rural Housing Finance provides you with the Home Loan perfectly suited to fit your
needs. We also offer Home Loans to salaried and self-employed individuals wishing for a space
of their own in their home town or village.

The features of this loan is :-

  Specially designed loans to Agriculturists, Planters, Horticulturists, Dairy Farmers for
purchasing an under construction / new / existing residential property in the rural and
urban areas
 Construct a home on a freehold / lease hold residential plot in the rural and urban areas
 Enhance your home in many ways such as tiling and flooring, internal and external
plaster and painting etc.
 These Loans  are available for the Salaried / Self-Employed for purchasing a under
construction / new / existing residential property in a village

Other home loan products

1. Home improvement loan - With HDFC's Home Improvement Loans one can
upgrade their existing home to a contemporary design and a more comfortable
living space.

These are Loans for enhancing your home in many ways such as tiling and flooring, internal and
external plaster and painting etc

2. Home extension loans

With HDFC's Home Extension Loans one can now add more space to their home ensuring that
all their family needs have an extra room for expression. These are Loans to extend or add space
to your home such as additional rooms etc.

3. Top Up loans

Top up loans are taken by customers for various reasons. This is one of the popular products of
HDFC Ltd. many existing customer require an additional top up on their existing loan for
personal use.

 With HDFC's Top Up Loans one can celebrate their personal or professional milestones such as
marriage, a dream vacation, business expansion, debt consolidation etc. 

The top up loan is available for existing customers or only for those new customer who are doing
a balance transfer from any other instituition.

Affordable housing

1. Hdfc reach home loans

 These are bHome Loans up for salaried individuals with a minimum income ofRs.10,000
p.m. and for self employed individuals with a minimum income ofRs.2 lacs p.a.

Under this scheme one can also avail the home improvement and home extension facility.
Top up loans can also be taken.

2. Pradhan Mantri Awas Yojna

Ministry of Housing and Urban Poverty Alleviation (MoHUPA) has introduced in June 2015, an
interest subsidy scheme called Credit Linked Subsidy Scheme (CLSS) under Pradhan Mantri
Awas Yojana (URBAN)-Housing for All, for purchase/ construction/ extension/ improvement of
house to cater Economical Weaker Section(EWS)/Lower Income Group(LIG)/Middle Income
Group (MIG), given the projected growth of urbanization & the consequent housing demands in
India.

PMAY Benefits
Credit Linked Subsidy Scheme (CLSS) under PMAY makes the home loan affordable as the
subsidy provided on the interest component reduces the outflow of the customer on the home
loan. The subsidy amount under the scheme largely depends on the category of income that a
customer belongs to and the size of the property unit being financed.
The benefits as per the income categories are as follows:
EWS/LIG category:
LIG and EWS categories are defined as those whose annual household incomes are aboveRs.3
lakh but belowRs.6 lakh .The beneficiaries belonging to the Economically Weaker Section
(EWS) and Lower Income Group (LIG) categories are eligible for a maximum interest subsidy of
6.5%, provided that the unit being constructed or purchased does not exceed the carpet area
requirement of 60 square metres (approximately 645.83 square feet). The interest subsidy is
limited up to a maximum loan amount ofRs.6 lakh.
The scheme was extended to include the Middle Income Groups (MIG) in [Link] scheme was
divided into two parts i.e. MIG 1 and MIG 2.
MIG 1 category:
MIG 1 category is defined as the one with household income of aboveRs.6 lakh but belowRs.12
lakh. The beneficiaries in the MIG- 1 category are eligible for a maximum interest subsidy of 4
%, provided that the unit being constructed or purchased does not exceed the carpet area
requirement of 160 square metres (approximately 1,722.23 square feet). This subsidy is however
limited to a maximum loan amount ofRs.9 lakh over a home loan tenure of up to 20 years.
MIG 2 category:
MIG 2 category is defined as the one with household income of above Rs.12 lakh but
belowRs.18 [Link] beneficiaries of the MIG- 2 category are eligible for a maximum interest
subsidy of 3%, provided that the unit being constructed or purchased does not exceed the carpet
area requirement of 200 square metres (approximately 2,152.78 square feet). This subsidy is
however limited to a maximum loan amount ofRs.12 lakh over a home loan tenure of up to 20
years.
Pradhan Mantri Awas Yojana Eligibility

 The beneficiary family should not own a pucca house in his/her or in the name of any
member of his/her family in any part of India.
 In case of married couple, either of the spouse or both together in joint ownership will be
eligible for a single subsidy.
 The beneficiary family should not have availed of central assistance under any housing
scheme from Government of India or any benefit under any scheme in PMAY.

Beneficiary
The beneficiary family will comprise husband, wife and unmarried children. (An adult earning
member irrespective of marital status can be treated as a separate household in MIG category)
Coverage:
All statutory towns as per Census 2011 and towns’ notified subsequently, including planning
area as notified with respect to statutory town.
* woman ownership is not mandatory for construction / extension
*As per amendment dated 15.03.2018, an adult earning member (irrespective of martial status)
can be treated as a separate household. Provided also that in case of a married couple, either of
spouses or both together in joint ownership will be eligible for a single house, subject to income
eligibility of the household under the scheme.
**for MIG - 1 & 2 loan should be approved on/or after 1-1-2017

 Aadhar number(s) of the beneficiary family are mandatory for MIG category.
 The interest subsidy will be available for a maximum loan tenure of 20 yrs or the loan
tenure whichever is lower.
 The interest subsidy will be credited upfront to the loan account of beneficiaries through
HDFC resulting in reduced effective housing loan and Equated Monthly Installment
(EMI).
 The Net Present Value (NPV) of the interest subsidy will be calculated at a discount rate
of 9 %.
 The additional loan beyond the specified limits, if any to be at non-subsidized rate.

Non Housing Loans

HDFC’s diversified loan portfolio caters to the needs of the non-housing segment. Be it the
purchase of a commercial property or funding of personal or business expenses, we offer
several types of loans.

1. Loan against property 

Loan can be availed by mortgaging both residential and commercial properties. These are
Loan against fully constructed, freehold residential and commercial properties for: Business
Needs; Marriage, medical expenses and other personal needs; transferring your outstanding loan
availed from another Bank / Financial Institution.

However the interest rates are a bit higher than home loans.

2. Refinance 

This is an option of Transfering outstanding Home Loan availed from another Bank / Financial
Institution to HDFC and getting an additional Top Up Loan of up to Rs.50 lacs.

An effective employee base

While dealing with external challenges, HDFC has always laid equal emphasis on
strengthening its most valuable assets – its employees. The organisation firmly believes in
participative management, where every employee is enctheiraged to don the mantle of a
leader, albeit in his individual sphere.

HDFC’s customer-centric business model has also resulted in a strong emphasis on training. It
is driven by the belief that the rate of learning needs to be faster than the rate of change in the
environment and that accelerated learning enhances growth of individuals across the
organisation.

Sharing knowledge

At the national level, the company’s executives played a crucial role in supporting the
Government of India to set up the National Housing Bank (the apex body for housing finance
companies) in 1987 and in formulating national policies related to housing finance and urban
development. As a part of developmental initiatives for the financial sector in general, HDFC
has co-promoted financial intermediaries in various fields such as infrastructure, consumer
finance and credit rating.

HDFC has been described as a model housing finance company for developing countries with
nascent housing finance markets. HDFC has provided technical assistance in Bangladesh, Sri
Lanka and Egypt and has undertaken consultancy assignments in various countries across
Asia, Africa and East Europe.

Over the years, HDFC has received accolades on a regular basis, for various
accomplishments, including the company’s performance and emphasis on corporate
governance, CSR initiatives and HR-related initiatives, its annual report and calendars.

HDFC’s success is the result of a consistent approach that has never wavered through the
years. And this approach has always put the consumer first – believing that all strategies and
proposals for change need to benefit the individual investing in the most precious dream he
aspires for – a home.

primary Objective
To enhance the residential housing stock in the country through the provision of Housing
Finance in a systematic and professional manner, and to promote home ownership.
Aim
Increase the flow of restheirces to the housing sector by integrating the housing finance sector
with the overall domestic financial markets.

Growth strategies

Increase the Return On Equity each year in order to maximise shareholder value.

Consistently grow the loan book.

Maintain low Gross Non-Performing Assets (NPAs)

Maintain a low cost to income ratio by improving operational efficiency.

Hdfc presence
Extensive distribution network of 546 interconnected offices (including 188 offices of HDFC
Sales) with outreach programs to several towns and cities all over India.

3 representative offices in Dubai, London and Singapore offering Home Loan products to Non-
Resident Indians and Persons of Indian Origin.

Enhanced distribution through HDFC Sales, HDFC Bank and third party Direct Selling
Associates.

The financial network

Diversified Financial Services - Banking, Insurance (Life and General), Asset Management, Real
Estate Venture Capital, Education Loans among others.

HDFC and its Group Companies consistently maintain leadership positions in their respective
sectors.

The HDFC Group

HDFC is a closely knit family strongly rooted in their approach, yet aspirational in their purpose.
While Housing Finance continues to be their core business, over the years, they have grown into
a large financial conglomerate with diversified businesses. Their key associate and subsidiary
companies hold leadership positions in their respective categories and their newer ventures are
fast emerging.
Their group companies have strong synergies with us, enabling HDFC to offer a wide range of
financial products and services to cater to their needs across different stages of life.

H T PAREKH FOUNDATION

The H T Parekh Foundation is a Section 25 company, established by the Housing Development

Finance Corporation Limited (HDFC).

The H T Parekh Foundation was established in October 2012 with the aim to undertake, pursue
and be concerned with the welfare, betterment and advancement of society as a whole,
irrespective of religion, race, community, caste, gender, language or social status. The
Foundation is sector agnostic and works across a range of social interventions and development
initiatives across India.

HDFC conducts a significant portion of its Corporate Social Responsibility through the
Foundation.

HDFC

HDFC was promoted in October 1977 as a public limited company specialising in providing
housing finance primarily to individual households and corporations for the purchase and
construction of residential housing. HDFC is India’s first retail housing finance company and is
currently one of the largest originators of housing loans in the country. Over the years, the HDFC
Group has emerged as a strong financial conglomerate in the Indian capital markets with a
presence in banking, general & life insurance, asset management, venture capital and education
loans.

HDFC has cumulatively financed 7 million housing units and as on 31st March 2019 HDFC has
outstanding Gross Loans (total loans sold /assigned) of Rs. 4.6 trillion. HDFC was founded by
the late Shri H T Parekh.
The Foundation’s objective is to support and partner socially relevant projects and activities
through NGOs and community based organisations operating across India. With a view to
achieving this goal we work across sectors, geographical locations and size to facilitate deep and
long term impact with partner organisations for a developed and inclusive society.

The Foundation partners with organisation to support initiatives and projects in the following
areas.

1 education
2 health and sanitation
3 child welfare
4 community deveelopment
5 differently abled
6 others

Board of directors
HDFC is a professionally managed organization with its Board consisting of eminent persons,
professionals who represent various segments including finance, taxation, construction and urban
policy & development. The Board primarily focuses on strategy formulation, policy and control,
designed to deliver increasing value to the various stakeholders.

Mr. Deepak S. Parekh

Chairman - HDFC Ltd. 

Mr. Parekh’s astute business acumen and farsightedness has not only made HDFC the leader in
mortgages, but has also transformed it into India’s leading financial services conglomerate with
presence in banking, asset management, life insurance, general insurance, real estate venture
fund, education loans and education. Mr Parekh is also the chairman of HDFC Asset
Management, HDFC Life Insurance Co and HDFC Ergo General Insurance Co.

The Government of India honoured Mr. Parekh with one of the highest civilian awards, the
Padma Bhushan in 2006.

Mr. Parekh is on the board of several leading corporations across diverse sectors. He is the non-
executive chairman in India of Siemens Ltd, and BAE Systems India (Services) Pvt Ltd. He is
also on the board of National Investment and Infrastructure Fund (NIIF) and International boards
of DP World – UAE, Vedanta Resources plc and Fairfax Financial Holdings Corporation -
Canada. He is on the Indian advisory boards of Coca Cola India, Boston Consultancy Group and
Accenture and international advisory boards of Lafarge International, Nomura Holdings Inc and
Warburg Pincus LLC.

Some of the international organizations which Mr. Parekh is associated with in an advisory
capacity, include Indo US CEO Forum, City of London - Finance Committee, Indo - German
Chamber of Commerce (IGCC), India-UK Financial Partnership (IUKFP).

The Mayor of London in 2017 named Mr. Deepak Parekh as first of a network of international
ambassadors for championing London across the globe

In addition to being known for his vociferous views seeking standardization and transparency in
the real estate sector, Mr. Parekh played a key role as Special Director on the Satyam Board in
2009 to revive the company and a crucial role during the restructuring of UTI in the late 90’s,
which helped regain investors’ confidence. Mr. Parekh has always been willing to share his ideas
and experiences to formulate reform policies across sectors. Mr. Parekh was a member of various
high-powered economic groups, advisory committees and task forces which include
infrastructure, housing, financial services and capital markets.

A man with a mission, Mr. Parekh’s philosophy on Corporate Social Responsibility is simple yet
profound. He believes that if a company earns, it must also return to society and that companies
owe a responsibility not just to shareholders, but to all stakeholders.
Government and Industry impressed by Mr. Parekh’s performance and sobriety, have honored
him with several awards. Some of the most important ones are; ‘Bundesverdienstkreuz’
Germany’s Cross of the Order of Merit one of the highest distinction by the Federal Republic of
Germany in 2014, “Knight in the Order of the Legion of Honour” one of the highest distinctions
by the French Republic in 2010, First international recipient of the Outstanding Achievement
Award by Institute of Chartered Accountants in England and Wales, in 2010.

Mr. Keki M. Mistry

is the Vice Chairman & Chief Executive Officer of the Corporation. Mr. Mistry joined the
Corporation in 1981. He was appointed as the Executive Director of the Corporation in 1993, as
the Deputy Managing Director in 1999 and as the Managing Director in 2000. He was re-
designated as the Vice Chairman & Managing Director of the Corporation in October 2007 and
as the Vice Chairman & Chief Executive Officer, with effect from January 1, 2010. He was also
member of the Committee of Corporate Governance set up by the Securities and Exchange
Board of India (SEBI). He is currently the Chairman of CII National Council on Corporate
Governance and a member of Primary Markets Advisory Committee set up by the SEBI. Mr.
Mistry is also a member of the Corporate Social Responsibility Committee of Directors and Risk
Management Committee.

Key Skills and Competencies

Mr. Mistry is a Fellow of The Institute of Chartered Accountants of India. He is an expert in

finance, accountancy, audit, economics, consumer behaviour, sales & marketing, contemporary
corporate governance, risk management and strategic thinking. He has vast experience in
housing finance, real estate and infrastructure sector.

Ms. Renu Sud Karnad

is the Managing Director of the Corporation. She was appointed as the Managing Director of the
Corporation, with effect from January 1, 2010. Ms. Karnad is a member of the Corporate Social
Responsibility Committee of Directors, Risk Management Committee and IT Strategy
Committee of the Corporation. Ms. Karnad has served as the President of the International Union
for Housing Finance (IUHF), an association of housing finance firms present across the globe.

Key Skills and Competencies

Ms. Karnad holds a Master’s degree in Economics from the University of Delhi and a Bachelor’s
degree in law from the University of Mumbai. She is a Parvin Fellow – Woodrow Wilson School
of International Affairs, Princeton University, USA. She is an expert in finance, economics,
human resources and risk management. She has vast experience in housing finance, real estate
and infrastructure sector.

KNOW MORE

Important ratios of hdfc ltd

Rs in Cr. 2019 2018 2017

Dividend per share 15 13 11

Adjusted eps 77.40 67.38 56.78

Operating profit per 57.70 69.06 55.44
share

Owners fund as % of 13.91 11.87 12.20

total source
Current ratio 0.89 0.81 0.74

Dividend payout ratio 18.23 00.00 00.00

ARTICLES ON HDFC LTD

HDFC slashes home loan rate by 0.05 per cent

Source – ECONOMIC TIMES

"HDFC reduces its Retail Prime Lending Rate (RPLR) on housing loans, on which its adjustable
rate home loans (ARHL) are benchmarked by 5 basis points with effect from January 6, 2020,"
the mortgage lender said in a statement.

HDFC Ltd on Friday reduced the benchmark lending rate by 0.05 per cent, a move that will
bring down interest rate for existing as well new borrowers.
SBI earlier this week slashed in its external benchmark-based rate by 25 basis points to 7.80 per
cent from 8.05 per cent.

"HDFC reduces its Retail Prime Lending Rate (RPLR) on housing loans, on which its adjustable
rate home loans (ARHL) are benchmarked by 5 basis points with effect from January 6, 2020,"
the mortgage lender said ..

the rate cut by lenders come despite the RBI keeping its benchmark repo rate unchanged at 5.15
per cent in December monetary policy review.

During the interaction with media after the announcement of monetary policy on December 5,
RBI Governor Shaktikanta Das had said that although it is not in a hurry to keep reducing
interest rates, the central bank would work to ensure that transmission turns more effective since
much needs to be passed on.

HDFC Home Loans’ new campaign aims to catch the pulse of millennials

 Aug 19, 2019

India has the largest millennial population in absolute terms globally, and with their
#Claimthefreedom campaign, HDFC Home Loans has positioned itself as the brand of choice for
home loan applicants between the age group 18 and 35.
On receiving the mandate from HDFC Home Loans, WhiteBalance’s creative team spent over a
month, collating data and research to find the gap in the home loan market. Armed with the
insights of what young Indians- whether starting their creative practice, following their passion,
or joining the corporate bandwagon, want- the concept was built.
Keeping in mind, the unorthodox professional paths being taken by millennials, the brand film
maps their need to own their own home not just for the need of owning a roof over their head but
to revel in their individuality, freedom and space.
Renu Sud Karnad, Managing Director, HDFC Limited, said, “We sincerely believe that the only
way to grow our business is to shift our focus to the millenials. Given the demographic construct
of our country, this is a very important segment for us. These 18 to 35 year olds are fearless,
embrace the unconventional with great ease and have a fierce mind of their own. They are a very
different generation and it’s interesting to see how they consume brands. With the
#Claimthefreedom film we wish to touch the pulse of this segment, not through hard sell, but
through subtle messaging that builds preference for HDFC Home Loans whenever they wish to
own a home.”
To tap the mood of the youth, the creative team at WhiteBalance chose to marry reality and
fiction in this film using both shoot and animation execution.
Robert Godinho, CEO, WhiteBalance, believes that the concepts and commercials for digital
content are increasingly at par with TVCs. “We are seeing not just a shift of content, from TV to
digital, but also the quantum of money, effort and thought spent on it, especially given the
amazing results geo, sex, age and occupation targeting online advertising offers brands. This has
made it easy for us to offer the same quality and execution to digital projects as we do for TV. In
short, brands are now aware of their digital presence and understanding of a consumer
consumption pattern. This no longer is flooding the digital space with brand relevant content, but
good targeted content to leave consumers with great recall,” he said.
With approximately 440 million in this age bracket constituting over 35% of the population, the
brand will continue to engage with this audience with focussed content pieces in the future.

STATE BANK OF INDIA

The State Bank of India (SBI) is an Indian multinational, public sector banking and financial

services statutory body. It is a government corporation statutory body headquartered in Mumbai,
Maharashtra. SBI is ranked as 236th in the Fortune Global 500 list of the world's biggest
corporations of 2019.[6] It is the largest bank in India with a 23% market share in assets, besides a
share of one-fourth of the total loan and deposits market.[7]
The bank descends from the Bank of Calcutta, founded in 1806, via the Imperial Bank of India,
making it the oldest commercial bank in the Indian subcontinent. The Bank of Madras merged
into the other two "presidency banks" in British India, the Bank of Calcutta and the Bank of
Bombay, to form the Imperial Bank of India, which in turn became the State Bank of India in
1955.[8] The Government of India took control of the Imperial Bank of India in 1955,
with Reserve Bank of India (India's central bank) taking a 60% stake, renaming it the State Bank
of India.

VISION
Be the bank of choice for a transforming India

MISSION
Committed to provising simple, responsive and innovative financial solutions

Values

Service
Transparency
Ethics
Politeness
Sustainability
Evolution Of SBI
The origin of the State Bank of India goes back to the first decade of the nineteenth century
with the establishment of the Bank of Calcutta in Calcutta on 2 June 1806. Three years later the
bank received its charter and was re-designed as the Bank of Bengal (2 January 1809). A unique
institution, it was the first joint-stock bank of British India sponsored by the Government of
Bengal. The Bank of Bombay (15 April 1840) and the Bank of Madras (1 July 1843) followed
the Bank of Bengal. These three banks remained at the apex of modern banking in India till their
amalgamation as the Imperial Bank of India on 27 January 1921.

Primarily Anglo-Indian creations, the three presidency banks came into existence either as a
result of the compulsions of imperial finance or by the felt needs of local European commerce
and were not imposed from outside in an arbitrary manner to modernise India's economy. Their
evolution was, however, shaped by ideas culled from similar developments in Europe and
England, and was influenced by changes occurring in the structure of both the local trading
environment and those in the relations of the Indian economy to the economy of Europe and the
global economic framework.

Establishment

The establishment of the Bank of Bengal marked the advent of limited liability, joint-stock
banking in India. So was the associated innovation in banking, viz. the decision to allow the
Bank of Bengal to issue notes, which would be accepted for payment of public revenues within a
restricted geographical area. This right of note issue was very valuable not only for the Bank of
Bengal but also its two siblings, the Banks of Bombay and Madras. It meant an accretion to the
capital of the banks, a capital on which the proprietors did not have to pay any interest. The
concept of deposit banking was also an innovation because the practice of accepting money for
safekeeping (and in some cases, even investment on behalf of the clients) by the indigenous
bankers had not spread as a general habit in most parts of India. But, for a long time, and
especially upto the time that the three presidency banks had a right of note issue, bank notes and
government balances made up the bulk of the investible resources of the banks.

The three banks were governed by royal charters, which were revised from time to time. Each
charter provided for a share capital, four-fifth of which were privately subscribed and the rest
owned by the provincial government. The members of the board of directors, which managed the
affairs of each bank, were mostly proprietary directors representing the large European managing
agency houses in India. The rest were government nominees, invariably civil servants, one of
whom was elected as the president of the board.

Major change in the conditions

A major change in the conditions of operation of the Banks of Bengal, Bombay and Madras
occurred after 1860. With the passing of the Paper Currency Act of 1861, the right of note issue
of the presidency banks was abolished and the Government of India assumed from 1 March 1862
the sole power of issuing paper currency within British India. The task of management and
circulation of the new currency notes was conferred on the presidency banks and the
Government undertook to transfer the Treasury balances to the banks at places where the banks
would open branches. None of the three banks had till then any branches (except the sole attempt
and that too a short-lived one by the Bank of Bengal at Mirzapore in 1839) although the charters
had given them such authority. But as soon as the three presidency bands were assured of the
free use of government Treasury balances at places where they would open branches, they
embarked on branch expansion at a rapid pace. By 1876, the branches, agencies and sub agencies
of the three presidency banks covered most of the major parts and many of the inland trade
centres in India. While the Bank of Bengal had eighteen branches including its head office,
seasonal branches and sub agencies, the Banks of Bombay and Madras had fifteen each.

First Five Year Plan

In 1951, when the First Five Year Plan was launched, the development of rural India was given
the highest priority. The commercial banks of the country including the Imperial Bank of India
had till then confined their operations to the urban sector and were not equipped to respond to the
emergent needs of economic regeneration of the rural areas. In order, therefore, to serve the
economy in general and the rural sector in particular, the All India Rural Credit Survey
Committee recommended the creation of a state-partnered and state-sponsored bank by taking
over the Imperial Bank of India, and integrating with it, the former state-owned or state-associate
banks. An act was accordingly passed in Parliament in May 1955 and the State Bank of India
was constituted on 1 July 1955. More than a quarter of the resources of the Indian banking
system thus passed under the direct control of the State. Later, the State Bank of India
(Subsidiary Banks) Act was passed in 1959, enabling the State Bank of India to take over eight
former State-associated banks as its subsidiaries (later named Associates).
The State Bank of India was thus born with a new sense of social purpose aided by the 480
offices comprising branches, sub offices and three Local Head Offices inherited from the
Imperial Bank. The concept of banking as mere repositories of the community's savings and
lenders to creditworthy parties was soon to give way to the concept of purposeful banking
subserving the growing and diversified financial needs of planned economic development. The
State Bank of India was destined to act as the pacesetter in this respect and lead the Indian
banking system into the exciting field of national development.

AWARDS

SBI has been rated as the “Best Transaction Bank in India” & “Best Payment Bank in India” by
The Asian Banker under their Business Achievement Awards 2019. Our Bank has won the Best
Transaction Bank Award for 3rd consecutive year viz2017, 2018 and 2019. Sri K.P.S. Rawat,
CGM (TBU), with other TBU officials, received the award on behalf of the Bank at The Asian
Banker Business Achievement Awards in Bangkok on 30th May 2019.

RECOGNITION & AWARDS

[Link] Transaction Bank in India by “The Asian Banker” for the second time in a row. 2.”The
Best Trade Finance Bank (India)-2019” for the eighth consecutive year by Global Finance
Magazine. 3.“Green Bond Pioneer Award” for being the largest new emerging markets Certified
Climate Bond issuer of 2018 by Climate Bond Initiative. 4.‘Best MSME Bank Award-Large
bank’ by CIMSME. [Link], our digital initiative, won the “Mobile Banking Initiative of the
Year - India” at the Asian Banking and Finance Retail Banking Awards, Singapore and ET BFSI
Innovation Awards. [Link] the Asian Banker Financial Technology Innovation Awards 2018 SBI
received awards in a number of categories including The Risk Data and Analytics Technology
Implementation of the Year for OFSAA

BOARD OF DIRECTORS

SR NO. NAME DESIGNATION

1 Shri Rajnish Kumar Chairman
2 Shri P.K. Gupta Managing Director
3 Shri Dinesh Kumar Khara Managing Director
 4 Shri Arijit Basu Managing Director
5 Shri C. S. Shetty Managing Director
6 Shri Sanjeev Malhotra Director
7 Shri Bhaskar Pramanik Director
8 Shri Basant Seth Director
9 Shri Venugopal Director
10 [Link] Gupta Director
11 Shri Sanjeev Maheshwari Director
12 Shri Debasish Panda Director
13 Shri Chandan Sinha Director

PROFILE OF KEY DECISION MAKERS

Executive Directors - Shri Rajnish Kumar, Chairman Shri Rajnish Kumar, prior to his elevation,
was the Managing Director of the National Banking Group (NBG) at State Bank of India. In a
career spanning over 39 years with SBI, he has held various assignments which include
Managing Director (Compliance & Risk) prior to which he served as the Head of SBI Capital
Markets, the Investment Banking arm of SBI Group. He has held several key positions across
various business verticals of the Bank like Mid-Corporate Group and Project Finance. He has
also served as the Chief General Manager of North Eastern Circle of SBI. As a part of SBI’s
overseas operations, he has served SBI Canada and later as Regional Head of SBI’s UK
Operations. Shri Kumar is a Post Graduate in Physics. Shri Parveen Kumar Gupta, Managing
Director (Retail & Digital Banking) Shri Parveen Kumar Gupta has held a number of important
assignments in the Bank, both, in India and abroad, which includes Managing Director & CEO,
SBI Capital Markets Ltd. Deputy Managing Director and Chief Financial Officer of SBI. He has
extensively handled treasury operations in the Bank, both in India and abroad. He has also held
the position of Regional Head & Chief Executive Officer of the Bahrain Offshore Banking Unit
and Middle East, West Asia and North Africa (MEWANA) regions. Shri Gupta has also served
at Bank’s London Office. Currently, he looks after Retail Banking and the latest initiatives in
Payments & Digital Banking. Prior to his present assignment, Shri Gupta was the Managing
Director looking after Compliance & Risk functions in the Bank. Shri Dinesh Kumar Khara,
Managing Director (Global Banking & Subsidiaries) Shri Dinesh Khara has over 33 years of
experience in all facets of Commercial Banking. Shri Khara holds a Board level position in the
Bank, supervising Global Market, Corporate Banking and the businesses of non-banking
subsidiaries of the Bank. He did his Masters in Business Administration from FMS New Delhi
and is a Post Graduate in Commerce. Shri Arijit Basu, Managing Director (Commercial Clients
Group & IT) Shri Arijit Basu as Managing Director, handles Commercial Credit and IT verticals
of the Bank. A graduate in Economics and a Master of Arts in History, Shri. Basu started his
career with the bank as a probationary officer in December 1983. Shri Basu served SBI Life
Insurance Company as its MD & CEO from August 2014 to March 2018. During his tenure, the
Company successfully listed on the Stock Exchanges in October, 2017. Earlier in his career, Shri
Basu has held several key assignments in SBI, which includes Chief General Manager of Delhi
Circle and Regional Head & CEO of Japan Operations at Tokyo. He has worked in various
verticals of the Bank including Corporate Banking, International Banking, Retail Banking and
HR and was also part of Business Process Reengineering (BPR) initiative undertaken by the
Bank. Shri Challa Sreenivasulu Setty, Managing Director (Stressed Assets) Shri Challa
Sreenivasulu Setty has taken charge as Managing Director of State Bank of India and will be
looking after the areas of Stressed Assets Resolution Group. A Bachelor of Science in
Agriculture and also, a Certified Associate of Indian Institute of Bankers, started his career with
State Bank of India in 1988 as a Probationary Officer. Across a career spanning over three
decades, he has gained rich experience in Corporate Credit, Retail banking and banking in
developed markets. Prior to taking over charge as MD, Mr Setty was heading the Stressed Asset
Resolution Group of the Bank, in his capacity as Deputy Managing Director, where he was
responsible for resolving the stressed assets portfolio of the Bank, across the country, in different
sectors such as Power, Infra, Auto, Telecom etc. Shri Setty has held key assignments in State
Bank of India including Chief General Manager and General Manager in Corporate Accounts
Group, Deputy General Manager in Commercial Branch, Indore and VP & Head (syndications)
in SBI, New York Branch.
CSR Philosophy

 The Bank is a corporate citizen, with resources at its command and benefits which it
derives from operating in society in general. It therefore owes a solemn duty to the less
fortunate and under-privileged members of the same society.
 Staff members are encouraged to make their contribution by understanding the
aspirations of the public around them and by endeavouring to evolve measures to remove
indisputable social and developmental lacunae.
The SBI Foundation

We, at SBI Foundation, feel a sense of responsibility towards the society we operate in. Our
offerings come with a commitment to act ethically, bring a difference and create a positive
impact on society. We believe in making CSR not just an initiative of the SBI group but an ethos.
The foundation of our programs is reflective of our ethos, values and our vision.

Our Vision
To become a premier CSR institution in India through the Bank’s tradition of “Service
Beyond Banking” by:
• Improving the socio-economic well-being of the society, particularly of the less fortunate
and underprivileged members and enable them to live up to the potential that they all possess.
• Creating an inclusive development paradigm that serves all Indians and to deliver societal
benefits to all geographical regions of the country without any regional, linguistic, caste, creed,
religious or other barriers.

Our Mission
•   To make resources available to the most vulnerable sections of the society directly and
through strategic partnerships/collaborations with impact making entities in the social and
development sector in the most transparent way to create inclusive sustainable development.

FOCUS AREAS

Healthcare and Sanitation

Approximately 70% of the Indians in rural areas are deprived of basic medical facilities due to
lack of healthcare infrastructure within those areas. Thus, accessible healthcare facility becomes
a primary requisite for these underprivileged. In case of severe illness, the family gets into a debt
spiral, thereby destroying the financial stability of the family and creating a direct impact on
other important aspects like nutrition, shelter, education, etc.
SBI Foundation is committed to contributing positively to the United Nations’ Sustainable
Development Goals (SDGs) Goal 3: ‘Good Health and Well Being’ by bringing positive changes
in the lives of underprivileged sections of the society by providing free access to quality
healthcare.
SBI Foundation has initiated various healthcare and sanitation projects to contribute towards
improving the healthcare scenario amongst this section of the society.

Some initiatives include

 SBI Sishu Raksha

 SBI Umeed
 Project Life
 Gift hope Gift Life
 Hospotal on a train
 Care for senior citizens
 SBI Anugraha
  SBI Sanjeevani

Education

Education is observed to be one of the most important tools to bring about a socio-economic
transformation within society. It plays a key role in bringing a developmental progression of a
family within the ecosystem. There is a significant difference between access to education and
access to quality education. Children have a right to state-funded quality education, a standard of
instruction, class engagement, good teachers and a better administration. However, not all
sections of the society have access to the same and therefore SBI Foundation has initiated
various educational projects to bring about a change in the lifestyle of the lower sections of the
society by providing them access to quality education.

Some of the initiatives of SBI in the field of education include

 SBI Udaan
 SBI Edu Diksha
 Shiksha Sahay
 Beti Padhao Kendras
 SBI Virtual Eye

WOMEN EMPOWERMENT AND CARE FOR SENIOR CITIZENS

Gender equality has become a critical issue in the world we live in; especially when it
comes to India, the issue becomes more sensitive in itself. While we are continuously
striving to make women overcome the fear of threat and violence, equal emphasis has to
be laid for men to choose roles that are not predefined by masculinity. Though gender
equality is considered a feminist issue, however, it goes on to have several implications
on economic and moral agendas. It is critical to maintain a balance between gender
diversity since the smallest discriminatory act can perpetuate gender bias for generations.
 SBI Foundation identified this grave reality and started working on some programs to
help create a balance between them.

Some of these initiavtives are

 Samriddhi
 Mauli Seva Pratishthan
Sustainability and Environment

Urbanization poses a threat to the ecosystem and apart from all the hazards on the environment,
the most preventable one is solid waste management. Billions of people worldwide still lack
access to a sustainable solid waste management system. Open burning of solid waste poses a
severe threat to the air quality along with contamination of soil and groundwater. Through our
projects, we aim to make the waste management system climate-resilient and provide skills and
capacity-building to unemployed youth and deliver environmental awareness campaigns.

Some of the initiatives taken by SBI in this area are –

 Waste to Gold
 SBI Corbett
 Protect Himalayas

Rural Development

Rural development generally refers to the process of improving the quality of life and economic
welfare of people living in relatively isolated and sparsely populated areas. In India, out of a total
population of 121 crores, 83.3 crores live in rural areas (Census of India, 2011). Thus, nearly 70
per cent of India’s population lives in rural areas. These rural populations can be characterised by
mass poverty, low levels of literacy and income, high level of unemployment, and poor nutrition
and health status. In order to tackle these specific problems, a number of rural development
programmes are being implemented to create opportunities for improvement of the quality of life
of these rural people. SBI Foundation is committed to contributing positively towards the
development of rural areas through integrated village development program and bringing
innovation by employing talented youth to tackle the most challenging problems.
 KEY FINANCIAL RATIOS OF SBI
(In Rs. Cr)

MAR 19 MAR 18 MAR 17

Basic EPS (Rs.) 0.97 -7.67 13.43
Cash EPS (Rs.) 0.97 -4.07 16.20
Dividend/Share (Rs.) 0.00 0.00 2.60
Net profit/Share (Rs.) 0.97 -7.34 13.15
Net Profit Margin 0.35 -2.96 5.97
(%)
Operating Profit -14.14 -23.13 -14.23
Margin (%)
Return on Equity (%) 0.39 -3.37 6.69
Operating -0.93 -1.48 -0.92
Profit/Total Assets
(%)
Operating Expense/ 1.89 1.73 1.71
Total Assets (%)
Price to Book Value 1.30 1.15 1.49
Price to Sales 1.18 1.01 1.33
Earnings Yield (X) 0.00 -0.03 0.04

Social media presence of State Bank of India

SBI made its debut on social media banking by launching its platform called 'Mingle' through
which its customers can transact using Facebook and Twitter.
The customers have to register for this service through a simple one-time registration process
using either their account number or their ATM/debit card details. For a start, customers can
view their account statements and their balance on Twitter. On Facebook, customers can also do
fund transfers.
Another initiative is a tie-up with Flipkart through which the bank will extend loans to select
customers for purchases above ₹ 5,000. SBI said that at present around one million customers
are eligible for such a loan. Once customers shop on Flipkart, they can opt for equated monthly
instalments (EMI) at the check-out and for this the customers would not need a credit card, only
an SBI account.
SBI has an account on instagram where they keep updating their recent news and schemes.
They are using facebook in many ways. SBI, which was often labelled as old-fashioned, has an
aggressive social media strategy, providing Internet and mobile banking solutions with ease to
cater to the Gen Y customers. Bhattacharya's social media initiatives convey a lot about her
approach to banking and her eagerness to take the game away from both public and private
banking peers. It is, at present, three times bigger than the next big player, ICICI Bank, in terms
of assets.
Given the size and legacy issues, Bhattacharya took the digitisation challenge head on. While a
social media presence created a buzz, Bhattacharya set up half a dozen fully digital branches -
probably a first in the world - equipped with state-of-the-art gadgets that encourage self-service
practices. For instance, in 15 minutes a customer can now walk away with a personalised photo
debit card by using the Aadhaar card. There are also cushy advisory rooms and business lounges.
Business is already rolling in with 16,000 new accounts and close to Rs 200 crore transactions.
Piyush Singh, Managing Director and India Lead, Accenture Financial Services, says
Bhattacharya is one person who came with a very clear vision and conviction that digital banking
was the future. "She is responding very fast to the needs of the digitally savvy customers and, at
the same time, digitising the enterprise and processes at the back end," he says.
In all. SBI uses all social media platforms and follows an aggressive strategy for the same.
It has 4 Million followers on twitter and is activetely posting about the recent updates.
SBI has 1.5 Million followers on instagram with 3680 Posts and adding.
They take up issues such as health and women empowernment and create really interesting posts
on their instagram handle. Their important announcements are also updated on this page.

News articles on SBI

 SBI cuts interest rates on home loans, fixed deposits

Updated 7th feb 2020

SBI said its MCLR or marginal cost of funds-based lending rates will be reduced by 5 basis
points (0.5 percentage point), and the new rates will take effect on February 10.
The announcement came a day after the Reserve Bank of India's Monetary Policy
Committee (MPC) kept repo rate unchanged.
The impact of recent RBI policy measures and reduction in deposit rates will be reflected
in the next review of MCLR, SBI said.

State Bank of India, the country's largest lender by assets, on Friday announced a reduction
in its benchmark lending rates across all tenors. The bank said its marginal cost of funds-
based lending rate (MCLR) will be reduced by 5 basis points (0.5 percentage point), and
the new rates will take effect on February 10.
The move marks the ninth consecutive reduction in the key lending rates by SBI this
financial year.
From February 10, the MCLR will stand reduced to 7.85 per cent for the one-year tenor, as
against the existing 7.90 percent, according to SBI's statement.

SBI corporate governance Philosophy

Philosophy of Corporate Governance

The Company believes that good Corporate Governance emerges from the application of the best
and sound Management practices and Compliances with the laws with adherence to the highest
standards of transparency and business ethics. The Company believes in sound governance
practices for functioning of the Company and for creation of value for its stakeholders on a
sustainable and long term basis.

In order to adopt best practices and greater transparency in the operations of the Company and in
compliance with the guidelines on Corporate Governance issued by Reserve Bank of India vide
Circular No. DNBR (PD) CC. No. 029/ 03.10.001/ 2014-15 dated April 10, 2015, Company has
revised Internal Guidelines on Corporate Governance.
SBI ORGANISATIONAL STRUCTURE
UNAUDITED FINANCIAL RESULTS FOR QUARTER AND NINE MONTHS ENDED
31ST DEC 2019
CORPOEATE GOVERNANCE REPORT
 SBI HOME LOANS PRODUCTS

Regular Home Loan

SBI Home Loans is the largest Mortgage Provider in the country. It has successfully helped
over 30 Lakh families achieve their dream of owning a home.

"THE MOST PREFERRED HOME LOAN PROVIDER" voted in AWAAZ Consumer Awards
along with the MOST PREFERRED BANK AWARD in a survey conducted by TV 18 in
association with AC Nielsen-ORG Marg in 21 cities across India. SBI Home Loans come to you
on the solid foundation of trust and transparency built in the tradition of SBI. It includes options
for purchase of ready built property, purchase of under construction property, purchase of pre-
owned homes, construction of a house, extension of house and repair/renovation.

Features

 Home Loan products to suit every customers need

 Low Interest Rates
 Low Processing Fee
 No Hidden Charges
 No Pre Payment Penalty
 Interest charges on Daily Reducing Balance
 Repayment up to 30 years
 Home Loan Available as Overdraft
 Interest Concession for Women Borrowers

SBIBalance Transfer of Home Loan

Switch your Home Loan to SBI and Save Big!

SBI offers Balance Transfer of home loan that enables a customer to transfer home loan from
Scheduled Commercial Banks (SCBs), Private and Foreign Banks, Housing Finance Companies
(HFCs) registered with National Housing Bank (NHB) and Borrower’s employers if they are
Central/State Govt or their undertakings or Public Sector Undertaking subject to condition that
the borrower should satisfy the eligibility criteria for availing Home Loan as per the Bank's
instruction and has serviced interest and/or installment of the existing loan regularly, as per the
original terms of sanction. The borrower should have valid documents evidencing the title to the
house/flat.
 Feautures

 Low Interest Rates

 No Hidden Charges
 No Pre Payment Penalty
 Interest charges on Daily Reducing Balance
 Home Loan Available as Overdraft
 Interest Concession for Women Borrowers

NRI Home Loan

SBI NRI Home Loans allows Non-Resident Indians to get closer to home.

SBI NRI Home Loan allows many NRIs (Non Resident Indians) to get home loans when
investing in properties. Financially, it makes sense to purchase a property through home loan
rather than through personal financing especially when you can invest your personal funds
somewhere else for better returns.

SBIFlexipay Home Loan

Let your current income not stop you from owning your dream home.

SBI Flexipay Home loan provides an eligibility for a higher loan amount exclusively for the
salaried borrowers. It offers customer the option to pay only interest during the moratorium (pre-
EMI) period, and thereafter, pay moderated EMIs. The EMIs will be stepped-up during the
subsequent years. This variant of SBI home loan is very useful for young earners. The SBI
Flexipay home loan has the potential to lure a large section of home loan buyer towards SBI.

SBIPrivilege Home Loan

Home Loan designed especially for Government Employees

SBI has launched SBI Privilege Home Loan exclusively for government employees. Individuals
who are employees of Central or State Government which includes PSBs, PSUs of Central
Government and other individuals with pensionable service are eligible to apply for this home
loan. The loan amount will be determined by taking into consideration factors such as applicant
income and repaying capacity, age, assets and liabilities, cost of proposed house/flat etc.
 Feautures includes special features like –

 Low Interest Rates

 Zero Processing Fee
 No Hidden Charges
 No Pre Payment Penalty
 Interest charges on Daily Reducing Balance

SBIShaurya Home Loan

You serve the nation, give us an opportunity to serve you.

SBI Shaurya Home Loan scheme is dedicated to the Army and Defence Personnel of the nation.
This special home loan scheme will be only provided to the defence employees. The SBI
Shaurya Home loans will have lower interest rates and other added benefits which will only be
provided to the defence employee applicants. Apart from reduced interest rates in the home loan,
the defence employees will also have the ease of repayment options and may get longer
repayment period of the loaned amount.

SBIPre-Approved Home Loan

Get your home loan in place before you select your property.

The SBI Pre-approved loan (PAL) provides sanction of Home Loan limits to the customers
before finalization of the property which enables them to negotiate with the Builder/Seller
confidently. The loan eligibility will be assessed based on income details of the applicant. Non-
refundable processing fee as applicable to the Home Loan will be collected at the time of
sanction.

BIRealty Home Loan

Construct your dream home from scratch and make it a reality.

SBI Realty provides an opportunity to the customer to purchase a plot for construction of a
dwelling unit. The construction of the house should take place within 5 years from date the loan
has been sanctioned. The customer can also avail another Home Loan for construction of house
on plot financed under SBI Realty. The maximum amount of loan that can be offered to a
customer can range upto Rs. 15 crores with a comfortable repayment of 10 years.

SBIHome Top Up Loan

Unlock the value of your home with SBI Home Top-Up Loans.

SBI offers "SBI Home Top Up Loan" to their customer to borrow certain amount over and above
their home loan amount. The customer who already have a home loan from SBI and requires
more funding, can opt for Home Top up loans. It can be availed for any personal purpose. The
interest rates are much lower than usual personal loan interest rates.

SBIBridge Home Loan

Helps to upgrade your home.

SBI offers "SBI Bridge Home Loan" for all the home owners who aspire to upgrade their homes
- to bigger homes or better locations, by selling off their existing homes. Many a times, such
customers face short term liquidity mismatch on account of time lag between sale of existing
property and purchase of new property. SBI Bridge Home Loan will help to mitigate this
shortfall of funds, and customers can avoid distressed sale of their existing homes.

SBISmart Home Top Up Loan

Visit your nearest Branch/ RACPC and walk out with a Home Top-Up Loan within
minutes. No documents required!

SBI Smart Home Top up loan is a general purpose loan offered to meet your urgent requirements
for any personal purposes such as meeting expenditure on education, marriage, health care,
repair/renovation/furnishing of the house, etc. The best part is you simply need to walk into the
nearest branch/ RACPC to avail the Loan. Smart, isn’t it?

SBIInsta Home Top-Up Loan

Hassel free Top up loan available online for existing Home Loan Customers!

Insta Home Top-Up Loan is a facility made available to our pre-selected Home Loan customers
over our internet banking ([Link]) platform. The selection of customers,
processing of their loan request, and disbursement of loan and setting of S.I. in their Saving
Account for repayment of EMIs will be done automatically by the system and no manual
intervention is required.

SBICorporate Home Loan

Home Loans for Corporate Entities!

To provide Home Loans to Corporate Entities (Both Public & Pvt. Ltd. Companies) for
construction/ acquisition of Residential Units in the name of the Company for use by their
Directors/Promoters and Employees, and for Take-over of Home Loans in the name of the
Company from other Banks/HFCs, subject to compliance to our extant norms for Take-over of
Home Loans.

SBIHome Loan to Non-Salaried – Differential offerings

Home Loans designed for Non-Salaried Individuals!

This product is specifically designed for Non-Salaried Individuals offering the best possible
Home Loan value to customers. Home Loans for the purpose of construction / acquisition of
residential house/flat, takeover of Home Loans from other Banks/HFCs and repair/renovation of
existing house/flat.

SBITribal Plus

Home Loan designed especially for Hilly/ Tribal areas

SBI Tribal plus Home Loan can be availed for the purpose of purchase or construction of a new
house / flat (without mortgage of land), purchase of an existing (old) house / flat which is not
more than 10 years old, and repair /renovation/extension of an existing house or flat. This
scheme is available at all the SBI branches in these areas.
SBIReverse Mortgage Loan

After a lifetime of working and raising families, you deserve a good retirement period

SBI Reverse Mortgage Loan provides an additional source of income for senior citizens of India,
who have a self-acquired or self-occupied home in India. This product is beneficial for senior
citizens who do not have adequate income to support themselves. The Bank makes payments to
the borrower /borrowers (in case of living spouse), against mortgage of his / their residential
house property. The borrower is not expected to service the loan during his lifetime.

SBICRE (Commercial Real Estate) Home Loan

Looking for your next investment in residential space?

CRE Home Loans are for individuals who own two houses or more, and seeking funding for
owning their next home. The maximum number of houses/flats/residential plots is restricted to 3
under CRE Home Loans. The maximum number of Home Loans in the name of an individual,
including the existing loans and the proposed one is restricted to 5 (five) Home Loans (excluding
closed accounts) under Home Loan Scheme.

SBILoan against Property (P-LAP)

Get the best value for your home to fulfill your financial needs

Avail loan against property for fulfilling personal needs such as meeting expenditure on
education, marriage, healthcare, etc. other than speculative purpose. It is to be noted that loans
under SBI LAP will not be permitted for Business Purposes.

SBIOther Schemes Available at SBI

Avail the best scheme suiting your needs!

There are many schemes available with SBI, suiting the needs of customers. Some of them are –
SBI Maxgain, SBI Green Home Loans, Pre-EMI Interest By Builders Scheme, and SBI
Suraksha. SBI also offers schemes for flexible margin payment, Credit Risk Guarantee Fund
Trust for Low Income Housing in Urban Areas (CRGFTLIH) etc
 ANALYSIS AND FINDINGS

1 ) AGE

AGE (YEARS)

20% Below 30
27%
31-50
Above 51

53%

AGE No. Of
Respondents
Below 30 28
31-50 56
Above 51 21
TOTAL 105

The analysis depicts that –

1. 27% of the respondents are below 30 years. Due to the age benefit this group has the
highesh benefit and options available.
2. 53% of the respondents are between the age group of 31-50. This constitutes a major
amount. This is because during the time of research the customers who had loan on going
with HDFC Ltd have been considered aswell.
3. The lowest perecentage which is 20% is above 51 age this is because most of the
customers wish to finish off their loan. Most of them go for prepayment. Also, since age
 is one of the most important factors considered during a loan application, financial
institutions usually try restricting the home loan tenure to a person’s retirement age,
making 60 the age limit.

2) OCCUPATION

OCCUPATION

Salariad
29%
36%
Self Employed professional

10% Home maker

25%
Self employed business

Occupation No. of respondents

Salariad 38
Self Employed 26
professional
Home maker 11
Self employed business 30
TOTAL 105

The above analysis depicts that –

1. Employment Stability: It’s a crucial aspect for home loan consideration. Unless the
applicant is salaried and employed for at least 2 years in the current profession or if the
applicant is self-employed with minimum 5 years of total earnings loan will not be
processed.
2. The maximum amount of people are salaried with 36%
 3. Which is followed by self employeed business 29% and self employed professional 25%
4. The least is home maker. This is because a home maker can not be the applicant but can only
be the co applcant since salary or fixed income is considered before processing the loaan.

3) Amount of loan (Rupees)

AMOUNT OF LOAN (RUPEES)

23% Upto 30 Lakhs

30%
30.01-75 Lakhs

75.01 Lakhs and above

47%

Amount of loan No. of respondents

Upto 30 Lakhs 32
30.01-75 Lakhs 49
75.01 Lakhs and above 24
TOTAL 105

The anaylsis depicts that –

1. Maximum customers take a loan abve 30 lakhs and between 75 lakhs, the percentage of
these customers is 47%
2. There are 30% Customers who take a loan for amount less that 30 lakhs. These are mostlt
loans taken in rural areas and under the pradhan mantri awaz yojna. Most of these
customer are buying home nd taking home loans for the fisrt time.
3. 23% of the custokmers taken loan above 75.01 lakhs.
4) From where do you get information about home loan schemes?

10% newspaper
23%
television
agents/executives
32%
friends/family
34%

1. Most of the customers that is 34% of customer got information through television
regarding the home loan schemes.
2. 32% of the customers got information through agents and executives. This percentage
should have been more and this explains us that the salesforce needs to work better
and generate more leads.
3. 23% of the customers got information through newspaper advertisements and
remaining 11% through referals.
5) Is this your first home loan?

25%
Yes No

75%

First home loan No of respondents

Yes 79
No 26
Total 105
6) If No, From which instituition did you take the loan before?

NAME OF THE INSTITUITION

15%
31% SBI ICICI
15% HDFC PNB

8% LIC
31%

Instituition No. Of
respondents
SBI 8
ICICI 2
HDFC 8
PNB 4
LIC 4
total 26
7) Type of Loan currently taken (purpose)

TYPE OF PURCHASE

under construction
24% 29% resale
renovation
balance transfer
16%

31%

Type of loan No. Of respondents

Under construction 30
Resale 33
Renovation 17
Blanace Transfer 25
 Total 105

8) Please choose the most important factor that you consider before taking a home loan?

FACTORS CONSIDERED

9% Rate Of Interest
14% 31% Loan Amount

10% Loan Tenure

12%
Loan Processing Time
23%
PF And Other charges

Customer service
 Factors considered No of
respondents
Rate Of Interest 33
Loan Amount 24
Loan Tenure 13
Loan Processing 11
Time
PF And Other 15
charges
Customer service 9
Total 105

9) Please rate the following instituitions on the basis of your level of satisfaction
RATE OF INTEREST

RATE OF INTEREST
45
39
40 36
35 33
NUMBER OF RESPONSES

29
30
23 24
25
20
14
15 10
10
5 2
0
0
Highly Dissatisfied Not Satisfied Neutral Satisfied Highly Satisfied

LEVEL OF SATISFACTION

HDFC SBI
 RATE OF HDFC SBI
INTEREST
Highly 2 0
Dissatisfied
Not 36 23
Satisfied
Neutral 14 10
Satisfied 29 33
Highly 24 39
Satisfied
TOTAL 105 105

10) Please rate the following instituitions on the basis of your level of satisfaction
CUSTOMER SERVICE
 CUSTOMER SERVICE
60 57

50

NUMBER OF RESPONSES
40 38
36

30
24
21
20
11 11
9
10
3
0
0
Highly Dissatisfied Not Satisfied Neutral Satisfied Highly Satisfied

LEVEL OF SATISFACTION

HDFC SBI

HDFC SBI
Highly Dissatisfied 0 9
Not Satisfied 21 36
Neutral 3 11
Satisfied 57 38
Highly Satisfied 24 11
105 105

11) Please rate the following instituitions on the basis of your level of satisfaction
 LOAN SANCTIONING TIME

LOAN SANCTIONING TIME

45
40
40
34
NUMBER OF RESPONSES

35
30 28
25 21
19 20
20 17
15 14
11
10 6
5
0
Highly Dissatisfied Not Satisfied Neutral Satisfied Highly Satisfied
LEVEL OF SATISFACTION

HDFC SBI

HDFC SBI
Highly Dissatisfied 14 19
Not Satisfied 28 34
Neutral 6 20
Satisfied 40 21
Highly Satisfied 17 11
105 105

12) Please rate the following instituitions on the basis of your level of satisfaction
 DISBURSEMENT PROCESS

DISBURSEMENT PROCESS
38
NUMBER OF RESPONSES

40 35
35 30
30
25 23
20 16 15 17 16
15 11
9
10
5
0
Highly Dissatisfied Not Satisfied Neutral Satisfied Highly Satisfied
LEVEL OF SATISFACTION

HDFC SBI

HDFC SBI
Highly Dissatisfied 9 16
Not Satisfied 15 23
Neutral 30 38
Satisfied 35 17
Highly Satisfied 16 11
105 105
13) Please rate the following instituitions on the basis of your level of satisfaction

PROCESSING FEES AND OTHER CHARGES

PROCESSING FEES AND OTHER CHARGES

45 42
NUMBER OF RESPONDENTS

40 38
35 33
30 25
25 22
20 17
14
15 11
10 6
5 2
0
Highly Dissatisfied Not Satisfied Neutral Satisfied Highly Satisfied
LEVEL OF SATISFACTION

HDFC SBI

HDFC SBI
Highly Dissatisfied 6 2
Not Satisfied 22 11
Neutral 14 17
Satisfied 38 42
Highly Satisfied 25 33
105 105
14) Please rate the following instituitions on the basis of your level of satisfaction

BRANCH SERVICE

BRANCH SERVICE
50
45 43
40
NUMBER OF RESPONSES

35
35
30
25 23
21 21 21
20 19

15
11
10 9
7
5
0
Highly Dissatisfied Not Satisfied Neutral Satisfied Highly Satisfied

LEVEL OF SATISFACTION

HDFC SBI

HDFC SBI
Highly Dissatisfied 9 23
Not Satisfied 21 43
Neutral 19 7
Satisfied 35 21
Highly Satisfied 21 11
105 105
15) Please rate the following instituitions on the basis of your level of satisfaction

DOCUMENT REQUIREMENT

DOCUMENT REQUIREMENT
40 36
34
NUMBER OF RESPONSES

35 31
30 28
25 21
20 17
13 14
15 11
10 5
5
0
Highly Dissatisfied Not Satisfied Neutral Satisfied Highly Satisfied
LEVEL OF SATISFACTION

HDFC SBI

HDFC SBI
Highly Dissatisfied 5 11
Not Satisfied 13 28
Neutral 36 31
Satisfied 34 21
Highly Satisfied 17 14
105 105
16) Please rate the following instituitions on the basis of your level of satisfaction
PRODUCT FLEXIBILITY

PRODUC FLEXIBILITY
45
39
NUMBER OF RESPONSES

40
35 32
30
25 23 23
20 18 18 18
14 14
15 11
10
5
0
Highly Dissatisfied Not Satisfied Neutral Satisfied Highly Satisfied
LEVEL OF SATISFACTION

HDFC SBI

HDFC SBI
Highly Dissatisfied 23 11
Not Satisfied 32 23
Neutral 18 14
Satisfied 18 39
Highly Satisfied 14 18
105 105