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30653671 22712301-comparative-study-of-home-loans-of-pnb-and-sbi-bank
30653671 22712301-comparative-study-of-home-loans-of-pnb-and-sbi-bank
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  • 1. COMPARATIVE STUDY OF HOME LOANS OF PNB AND SBI BANK.A dissertation submitted to Department of Management in partial fulfillment of the requirement for the award of degree of BACHELOR OF BUSINESS ADMINISTRATION (HONS.)Submitted by: KOMAL MARWAHA 7020070003Supervisor: Miss Monika Kanali (lect,lpu)LOVELY PROFESSIONAL UNIVERSITY PHAGWARA 20101
  • 2. TO WHOMSOEVER IT MAY CONCERNThis is to certify that the project report titled “Comparative study of home loans of PNB and SBI” carried out by Miss KOMAL MARWAHA, D/o RAJESHMARWAHA has been accomplished under my guidance & supervision as a duly registered BBA(Hons) student of the Department of Management, LovelyProfessional University, Phagwara. This project is being submitted by him/her in the partial fulfillment of the requirements for the award of the BBA(Hons) from Lovely Professional University. Her dissertation represents her original work and is worthy of consideration for the award of the degree of BBA(Hons)___________________________________ (Name & Signature of the Faculty Advisor) Title: ______________________________ Dare: ______________________________2
  • 3. DECLARATIONI KOMAL MARWAHA, hereby declare that the work presented herein is genuine work done originally by me and has not been published or submitted elsewhere for the requirement of a degree programme. Any literature, data or works done by others and cited within this dissertation has been given due acknowledgement and listedin the reference section._______________________ (Students name & Signature) _______________________ (Registration No.) Date:__________________3
  • 4. AcknowledgementFirst of all my sincere gratitude goes to my academic supervisor Miss Monika Kanali, lecture, lovely professional university,phagwara,who helpd andguided me for this work. Her conversation and encouragement will always be remembered. In many stages of project, her proudful expertise and professional knowledge providedcrucial and key injection to the technical solution. I also would like to thanks all the staff members of the department, for their cooperation and support during this work. Finally, I wish to thank my family and friends for their encouragement and support that accomplishment me throughout the research work.4
  • 5. TABLE OF COTENTSPage no. 6-11Chapter CHAPTER 1 Section 1.1 Introduction to Subject 1.2 Objective, Need, Scope & Methodology12-28CHAPTER 2 Section 2.1 Introduction to Company 2.2 Overview of the industry (History, Growth, Landmarks, major players and their market share) 2.3 Profile of the organization 2.4 Company’s history 2.5 Recent achievements and milestones 2.6 Product range of the company/industry 2.7 Performance of the company over the last few years(Statistical Profile) 2.8 Financial status of the organization 2.9 Future prospects/ plans29-35CHAPTER 3 Survey of Literature36-65CHAPTER 4 Interpretation66CHAPTER 5 Section 5.1 Conclusion 5.2 Limitations67-69 70-72CHAPTER 6 References CHAPTER 7 Questionnaire 5
  • 6. CHAPTER 11.1 SectionINTRODUCTION TO SUBJECT:Home loans work like any other debt. That is, loans are simply specific money that we borrow from a bank, a private lender, or some other type of lender. Afterwards, we must repay our debts with interest. However, unlike other types of loans, home loans are different in several respects. Owning a piece of land or property is a lifetime dream for every individual. There are many home loans provider in the market. There are different type of home loan i.e.• • • • • • •Home Purchase Loans Home Improvement Loans Home Construction Loans Home Extension Loans Home Equity Loans Land Purchase Loans Bridge LoansHome purchase loans: These are the basic forms of home loans used forpurchasing of a new home. With about a million home lenders and mortgage brokers   it s becoming a tough challenge as the days are progressing. But at the same time, when the sites are coming up with all the latest tools and relevant information for us, and with all such conveniences, obtaining a home purchase loan or mortgage has 6
  • 7. become really pretty simple. However, at the same time though, we may be flummoxed to look so many attractive rates and offers in the market, not to forget thehidden costs associated with each of them.Home improvement loan: Home improvement loans are used to financeimprovements and add on to the existing set of credentials of beauty on your owned house, recently purchased property or rented accommodation. Home improvementloans are used to maintain or enhance the value of your house. In general it includes: repairs, remodeling, energy-related items (permanent in nature), repairs, a new kitchen, a new bathroom, terrace, an extension or general property improvements. Luxury items and fireplaces are generally not eligible, though. Many improvements in landscape and even swimming pools are nowadays considered to be a part of home improvement.Home construction loan: Home construction loans are used to finance for theconstruction of our newly acquired home or if we are planning to build a home. The factors include in calculations for house building costs?• • • •Design of the house Construction cost Financing Cost Buildable siteAll the above mentioned costs will help us to determine the amount we may need to borrow. For example, besides calculating the construction costs, we may also be required to consider the total expenditures to develop the site in order to build. Each site is unique requiring different expenditures so this specific rupee amount will vary from site location to site location. Payment: Before the house starts getting build, we will be required to pay a deposit to your builder as well as paying a deposit for the land if we are buying land. As work progresses you will need to make payments to the builder. Certain loans can be structured for progress payments to be made during construction.Home extinction loanHome extension loans are used by customers to get loans from the banks to extend their houses, by adding more rooms, kitchens, wash rooms, terraces, or any other rooms for your growing family. It may also be used to enclose open balcony/terrace space, or constructing a Puja ghar.7
  • 8. Maximum Amount of Home Extension Loans:Banks generally offers about 70-85% of the total amount of home extension as loan. The amount of loan sanctioned also depends on a number of factors such as the age of the applicant at the time of loan, tenure of the loan, repayment capacity of the borrower; his/her credit history etc.Home equity loan:Home equity loans helps customer to encash the market value of the commodity bytaking a loan by mortgaging the property. So, Home equity loans are availed by customers, who wish to mortgage his/her property to the bank for taking some loan     for some other purpose. Then, it s up to the bank s discretion to consider themarket value of the property and accordingly decide how much to pay to the customer. Both the residential as well as non residential property can be consideredfor the approval of the loan, provided the mortgager is a licensed title holder  and the land is free form any kind of dispute. Home equity loans don t restrictone to use the loan money in specific investments. It might also be used in marriage, higher education, medical expenses, etc. However it should not be used inany illegal or speculation purposes.land purchase loan:Land Purchase loans are used by customers who wish to purchase a plot of land for commercial or residential purpose. Everyone has his/her dream perfectly sketched in his souls and so is his ambition to get his house erected on the exact location he dreamt that to be. If you have found and shorlisted the piece of land,and have arrived here for finance, you have come to the best place you could have arrived in the web. Now, that you have decided to purchase a land as an investment or for your own dream home, you will realize that a land purchase loan is one you will cherish. Loans that are strictly for land purchase can be as scarceas good residential plots. While many lending firms around the nation compete to provide mortgages for the purchase of a house on a lot, only local institutions typically will be interested in lending for an empty lot.Bridge loan:Bridge loans are designed for people who wish to sell the existing home and purchase another one. The bridge loans help finance the new home, until a buyer is found for the home. Bridge loans are used by customers as an effective vehicle to capitalize on a purchase opportunity. It can be considered as a short term financing scheme which8
  • 9. is generally expected to be paid back, within the range of 6-36 months, till the time the borrower gets more permanent and lower cost financing. So, bridge loans, (or swing loans as they are otherwise said) is a short term loan provided byvarious banks like Bank of India, Citibank, ICICI etc. often used for commercial real estate purchases, retrieve real estate from foreclosure. Bridge loans in corporate finance are called gap financing, and are used to cover the time between redemption of issuance of one bond and its replacement by a new issue. They can also be operating loans for periods between LOI and acquisition, or quiet period and IPO. Bridge loan may contain a decent proportion of prepaid interest, sometimes as much as six months. If the home gets sold before that time, you may re  ceive interest payments back, but if it hasn t sold, you may be required to continue payments.1.2 SectionOBJECTIVES To study the cost of home loans provided by the bank. To know that which bank provide batter loan schemes. To analyze the home loan scheme by PNB and SBIbanks. To know the consumer perception about the home loan of PNB and SBI. SCOPE OF THE STUDY: This study is analysis and comparison of home loans provided by the SBI and PNB banks. It is helpful in analysing the home loan service provided to the customer and their comparison.RESEARCH METHODOLOGY Design of Research:The research will be exploratory in nature. A population of peoples who take home loan from these banks will be considered for this study. I will try to explore about the home loans which would make a difference in the behavior of the consumer. Effort will be made to throw light on most of the factors which have either indirect or direct effect on the behavior of the consumer. I will also explorethe impact of home loans on the market share of the banks.9
  • 10. Sampling plan:• Population:The study aimed to include the customers of SBI and PNB in nawanshahr, to make a comparative analysis of home loan schemes of these two banks..•Sample Size:A Sample size of 100 respondents will be taken for the current study because itis not possible to cover the whole universe in the available time period. So itis necessary to take the sample size. In 100 respondents 50 respondents from PNB and 50 from SBI. The sample will the peoples of age group lying between eighteen to thirty years. The sample will be taken in the form of strata based on age,sex, and income group.• Sampling technique:The sampling technique will be probabilistic sampling more specifically the random convenient and judgemental sampling will be used. As in probabilistic sampling the select unit for observation with known probabilities so that statistically sound assumptions are supported from the sample to entire population so that we had positive probability of being selected into the sample. I will go for stratified random sampling as we are interested to study the home loan by SBI and PNB banks, so we will make the strata on the basis of age, occupation, income level, gender. And from each strata we will go for random sampling.Sources of Data:I will use primary source of data that is structured questionnaire. As these banks are established from so many years, so many researchers have done research on this topic, so we will find secondary data also and also use this data for thehelp of this research. So, this research data will collected from the primary source and secondary source.10
  • 11. Our method of collecting the data is from the questionnaire that will be filledby the respondent from the sample, it will be structured questionnaire.Tools and Techniques:As no study could be successfully completed without proper tools & techniques, same with my project. For the better presentation and right explanation I used tools of statistics and computer very frequently and I am very thankful to all those tools for helping me a lot. Basic tools which I used for project are:- BAR CHARTS- PIE CHARTS- TABLESBar charts and pie charts are very useful tools for every research to show the result in a clear, simple way. Because I used bar charts and pie charts in my project for showing data in a systematic way. So I need not necessary for any observer to read all the theoretical detail, simple on seeing the charts anybody that what is being said.Technological Tools:MS -WORD MS-EXCEL11
  • 12. CHAPTER 2 2.1 SectionINTRODUCTION TO COMPANY:PUNJAB NATIONAL BANK : PNB has over 4500 branches and offices bringing the Punjab National Bank to your doorstep. Around 2400 offices come under the network ofCentralized Banking Solution or CBS. A need for centralized banking system prompted PNB to go computerized and what followed was the establishment of CBS in Punjab National Bank branches in all the leading cities like Delhi, Pune, Chennai,Mumbai, Ahmedabad, Chandigarh, Gurgaon, Hyderabad, Jalandhar, Kolkata, Ludhiana, Nodal and Bangalore. Internet Banking Services are provided to all customers in the CBS branches. A branch and ATM locator is also available on the official website of Punjab National Bank. For an overview of the annual report or the bankprofile, the site can be resourceful. The website also provides info on the careers and recruitments at PNB and the exam results. The careers at nationalized banks like PNB are the most sought after one and candidates are selected on the basis of their exam result. PNB topped the Best Paying Commercial Bank category with an overall rating of 87.45% as evaluated by the SSS Retirement, Death & Funer  al Benefits Program. STATE BANK OF INDIA: State Bank of India (SBI) is India s largest commercial bank. SBI has a vast domestic network of over 9000 branches (approximately 14% of all bank branches) and commands one-fifth of deposits and loans of all scheduled commercial banks in India. The State Bank Group includes anetwork of eight banking subsidiaries and several non-banking subsidiaries offering merchant banking services, fund management, factoring services, primary dealership in government securities, credit cards and insurance.The eight banking subsidiaries are:State Bank of Bikaner and Jaipur (SBBJ),State Bank of Hyderabad (SBH).State Bank of India (SBI),State Bank of12
  • 13. Indore (SBIR),State Bank of Mysore (SBM),State Bank of Patiala (SBP),State Bankof Saurashtra (SBS) and State Bank of Travancore (SBT). Today, State Bank of India (SBI) has spread its arms around the world and has a network of branches span  ning all time zones. SBI s International Banking Group delivers the full range of cross-border finance solutions through its four wings - the Domestic division, the Foreign Offices division, the Foreign Department and the International Services division.2.2 Section OVERVIEW OF THE INDUSTRY: HISTORY:Banking in India has a long and elaborate history of more than 200 years. The beginning of this industry can be traced back to 1786, when the country’s first bank, Bank of Bengal, was established. But the industry changed rapidly and drastically, after the nationalization of banks in 1969. As a result, the public sector banks began experiencing numerous positive changes and enormous growth. Then came the muchtalked-about liberalization and economic reforms that allowed banksto explore new business opportunities and not just remain constrained to generating revenues from mere borrowing and lending. This provided the Indian banking scenario a remarkable facelift that only continues to get better with time. However, even today, despite the foray of foreign banks in the country, nationalizedbanks continue to be biggest lenders in the country. This is primarily due to the size of the banks and the penetration of the networks. The Indian banking system can be classified into nationalized banks, private banks and specialized banking institutions. The industry is highly fragmented with 30 banking units contributing to almost 50% of deposits and 60% of advances. The Reserve Bank of Indiais the foremost monitoring body in the Indian Financial sector. It is a centralized body that monitors discrepancies and shortcomings in the system. Industry estimates indicate that out of 274 commercial banks operating in the country, 223banks are in the public sector and 51 are in the private sector. These private sector banks include 24 foreign banks that have begub their operations here. Thespecialized banking institutions that include cooperatives, rural banks, etc. form a part of the nationalized banks category. Opportunities The Banking sector is considered the most lucrative option in today’s job market. In the industry, a position in Treasury or Forex is considered right on top and this is followed by careers in Private Banking, Investment Banking and Retail Banking. One could work in a variety of areas in banking industry including Recurring Deposit13
  • 14. account, banking officer, probationary officer, loan officer, assessor, personal loan officer, home loan officer, home loan agent, loan manager, mortgage loan underwriter, loan processing officer, accountant, product marketing and sales executive, and customer service executive among others. In the Financial Services,some of the important jobs include that of a stockbroker who is essentially a person who buys and sells securities on behalf of individuals and institutions for some commission. While some brokers like to practice with individual clients others work for institutions. Brokers who work for institutional investors are often called securities traders. Many prefer to work as dealers, advisors and securities analysts. Security analysts are those who advise companies on floatation’s of shares as they are expected to have sound knowledge of capital markets. Investment analysts are the backbone of the financial services sector. They study the financial reports of companies, assess various statistical information, profitability projections, compare financial results, survey the industry as a whole and on the basis of the available information, and finally conclude to a decision. Equity Analysts do jobs similar to investment analysts and research the equity markets and make predictions.Growth:The limit for foreign direct investment in private banks has been increased from 49% to 74%. In addition, the limit for foreign institutional investment in private banks is 49%. Liberalization and globalization have created a more challenging environment in the banking sector as well as in the other segments of the financial sector such as mutual funds, Non Banking Finance Companies, post offices, capital markets, venture capitalists, etc. Research and Markets has announced t    he addition of Indian Retail Banking, 2006 to their offering. Indian Retail Banking continues to redefine the credit growth in the country. It grew by a whopping 44.4% in 2005-06 to touch Rs 3,538 billion. This leap was despite the increase in risk weight by RBI for housing and real estate loans during August, 2005.Housing, which constitutes more than 52% of all retail loans, grew at a robust rate of 44.35% during 2005-06. In order to help banks in India to understand themarket and competition and plan future strategies, we have just come out with an Industry Insight on Indian Retail banking - 2006 edition. This report analysesthe retail banking market and its segments in India and presents the key trends, along with issues and challenges. The report also paints a future outlook for the market. Besides it profiles 21 major players in the retail banking space and  their strategies. Finally, it seems Reserve Bank of India s (RBI) flurry of measures to restrain the home finance market is paying off. With tightening of interest rates by the RBI and a simultaneous increase in real estate prices in a fewmarkets, the banking sector is witnessing a decline in the growth of its home loan portfolio. The home loan industry is experiencing a growth of 25% this year,as against 30% growth in home loans earlier. Rajiv Sabharwal, senior general manager, ICICI Bank,14
  • 15. which has recorded the highest incremental growth in home finance segment in recent past, said, “The real estate prices have become very high in few markets, which has resulted in the fall in growth rates for home loans for the banking industry. Home loan growth has reduced to 25% from its earlier growth rate at 30% and since we are an integral part of the industry, there will be some impact on us too.” He added that the bigger impact had come from real estate prices, but obviously interest rates hikes will also have an impact. He, however, declined to disclose the bank’s current home loan growth rate. Echoing a similar view, a senior official of State Bank of India (SBI) said the home loan market is showing some signs of slowing down. However, another major player, Housing Development Finance Corporation (HDFC) said the housing finance market for the middle class segment was growing at a healthy pace. PNB Bank is a leading home loan lender of the country with about 30% market share. Retail lending comprises 70% of the total loan portfolio of the bank, of which the home loan lending is about 50%. In the first half of fiscal 2007, the bank experienced total home loan disbursements of Rs 13,400 crore.MAJOR PLAYERS:The financial sector in India has become stronger in terms of capital and the number of customers. It has become globally competitive and diverse aiming, at higher productivity and efficiency. Exposure to worldwide competition and deregulation in Indian financial sector has led to the emergence of better quality products and services. Reforms have changed the face of Indian banking and finance. The banking sector has improved manifolds in terms of capital adequacy, asset classification, profitability, income recognition, provisioning, exposure limits, investment fluctuation reserve, risk management, etc. TOP 10 PLAYERS IN BANKING &FINANCE State Bank of India HDFC bank Citibank ICICI Bank Punjab National bank UTI Bank Hongkong & Shanghai Banking Corp. Kotak Mahindra Bank Sundaram Bank Oriental Bank of Commerce TOP 10 PLAYERS IN INSURANCE15
  • 16. Life Insurance corporation of India Bajaj Allianz General Insurance ICICI Prudential Life Insurance ICICI Lombard General Insurance Birla Sunlife Insurance Tata AIG General Insurance New India Assurance Co. Iffco Tokio General Insurance Oriental Insurance Co. HDFC Standard Life Insurance2.3 Section PROFILE OF THE ORGANISATION:PROFILE OF PNB: The profile of the PNB shows superior banking services in corporate, personal and international banking, industrial and agricultural finance and finance of trade. Punjab National Bank boasts of a varied clientele consistingof small and medium industrial units, exporters, multi-national companies, Indianconglomerates and NRI. The Bank is changing outdated front and back end processes to modern customer friendly processes to help improve the total customer experience. With about 8500 of its own 10000 branches and another 5100 branches of its Associate Banks already networked, today it offers the largest banking network to the Indian customer. The Bank is also in the process of providing complete payment solution to its clientele with its over 8500 ATMs, and other electronic channels such as Internet banking, debit cards, mobile banking, etc.The objectives of the Company are in line with objectives laid down by RBI for the Primary Dealers: Strengthen the infrastructure in the government securities market in order tomake it vibrant, liquid and broad based. Ensure the development of underwriting and market making capabilities for Government Securities Improve secondary market trading system, which would contribute to price discovery, enhance liquidity and turnover and encourage voluntary holding of Government securities amongst a wider investor base Become an effective conduit for conducting open marketoperations.16
  • 17. PROFILE OF SBI: The SBI’s powerful corporate banking formation deploys multiplechannels to deliver integrated solutions for all financial challenges faced by the corporate universe. The Corporate Banking Group and the National Banking Group are the primary delivery channels for corporate banking products. The Corporate Banking Group consists of dedicated Strategic Business Units that cater exclusively to specific client groups or specialize in particular product clusters. Foremost among these a specialized group is the Corporate Accounts Group (CAG), focusing on the prime corporate and institutional clients of the country’s biggest business centers. The others are the Project Finance unit and the Leasing unit.The National Banking Group also delivers the entire spectrum of corporate banking products to other corporate clients, on a nationwide platform. The bank is also looking at opportunities to grow in size in India as well as Internationally.It presently has 82 foreign offices in 32 countries across the globe. It has also 7 Subsidiaries in India – SBI Capital Markets, SBICAP Securities, SBI DFHI, SBI Factors, SBI Life and SBI Cards - forming a formidable group in the Indian Banking scenario. It is in the process of raising capital for its growth and also consolidating its various holdings. Throughout all this change, the Bank is alsoattempting to change old mindsets, attitudes and take all employees together onthis exciting road to Transformation. In a recently concluded mass internal communication programme termed ‘Parivartan’ the Bank rolled out over 3300 two day workshops across the country and covered over 130,000 employees in a period of 100 days using about 400 Trainers, to drive home the message of Change and inclusiveness. The workshops fired the imagination of the employees with some other banks in India as well as other Public Sector Organizations seeking to emulate the programme.2.4 section17
  • 18. COMPANY HISTORY: PNB HISTORY:Punjab National Bank of India was established by Lala Lajpat Rai in the preindependence India in 1895 in Punjab, with Lahore as its head office. Today it is the second largest public sector bank in India. It was nationalized in 1969 along with 13 other major commercial banks. The privatization started in 1989 when 30 per cent of its shares were offered to the public and it was listed on the stockexchange.In 1992, PNB became the first Philippine bank to reach P100 billion inassets. Later that year, privatization continued with a second public offering of its shares. In August 2005, PNB was fully privatized. The joint sale by the Philippine government and the Lucio Tan Group of the 67% stake in PNB was completed within the third quarter of 2005. The Lucio Tan Group exercised its right to match the P 43.77 per share bid offered by a competitor and purchased the sharesowned by the government. The completion of sale is expected to speed up the development of PNB’s franchise and operational competitiveness. SBI HISTORY: The origins of State Bank of India date back to 1806 when the Bank of Calcutta (later called the Bank of Bengal) was established. In 1921, the Bank of Bengal and two other Presidency banks (Bank of Madras and Bank of Bombay) were amalgamated to form the Imperial Bank of India. In 1955, the controlling interest in the Imperial Bank of India was acquired by the Reserve Bank of India and the State Bank of India (SBI) came into existence by an act of Parliament as successor to the Imperial Bank of India.Today, State Bank of India (SBI) has spread its arms around the world and has a  network of branches spanning all time zones. SBI s International Banking Group delivers the full range of cross-border finance solutions through its four wings- the Domestic division, the Foreign Offices division, the Foreign Department and the International Services division.18
  • 19. 2.5 Section RECENT ACHIVEMENTS AND MILESTONES:PNB Recent achievements and milestones Punjab National Bank (PNB), has announced that it has completed 100% core banking implementation at all its 4604 branches and extension counters through the Finacle Universal Banking Solution from Infosys, on Sun infrastructure and the Oracle Database setting a significant milestone for themselves and a new benchmark for the Indian banking industry. Completed in November 2008, 4 months ahead of schedule, the bank implemented industry-leading Finacle core banking solution from Infosys across its operations running aflexible, and scalable database platform from Oracle and innovative servers from Sun Microsystems With an increasingly dynamic business and regulatory environment, PNB sought to not only achieve automation, but also centralize operations, standardize branch processes, achieve high scalability for future business growth, provide flexibility of creating innovative banking products to its lines of business, and at the same time, reduce overall costs. The visionary zeal and the futuristic view of the Bank’s top management in the year 2007-2008 incubated theidea of introduction of a Centralised Banking solution. The bold and innovativethought culminated into the CBS architecture with Finacle application on OracleDatabase and Sun hardware platform with Solaris Operating System. With Finacle’s agile and future proof technology, the bank today has over 22,500 concurrent users. The solution’s scalability has also enabled the bank’s scalability to be the best in the country with the number of peak transactions at 3.5 million. Finacle core banking platform also provides the bank with exceptional agility for product innovation and improved flexibility of operations. With seamless integration of delivery channels such as ATM and internet banking solutions, PNB is able to provide 24X7 services to customers at a reduced transaction cost. PNB’s choice of the Oracle Database has provided the bank’s IT infrastructure with robustness, management features, security and scalability as well as performance requirements to service 3.5 million transactions and 22500 concurrent users – a significant achievement in the Indian banking industry. In addition, the Oracle Database will help PNB take control of its enterprise information, gain better businessinsight, and quickly and confidently adapt to an increasingly changing competitive environment.19
  • 20. With secure, highly available and scalable grids of low-cost servers and storage, Oracle customers can tackle the most demanding transaction processing, data warehousing, business intelligence and content management applications. The 100% implementation of Finacle Core Banking Solution shall enable PNB to further reduce operational costs and revenue leakage while improving productivity of branches, introduction of new and innovative products and visibility of business. The anywhere anytime banking facility will enable the bank to offer products for every segment of the customer. PNB long-standing and progressive partnership also highlights Finacle’s leadership in large scale banking transformation, the solution’s future proof technology and powerful capabilities. India is a strategic market for Finacle and we look forward to closely collaborating with Punjab NationalBank for their future growth plans.”SBI RECENT ACHIVEMENTS AND MILESTONES:AWARDS:SBI has been the proud recipient of the ICRA Online Award - 8 times, CNBC TV – 18, Crisil Award 2006 - 4 Awards, The Lipper Award (Year 2005-2006) and most recently with the CNBC TV - 18 Crisil Mutual Fund of the Year Award 2007 and5 Awards for our schemes. SBI Card reaches three million milestone: SBI Card, ajoint venture between State Bank ofIndia and GE Money, announced yet another landmark achievement of crossing the three million cardholders-mark. Roopam Asthana, CEO-SBI Card, said, "This milestone is even more remarkable as we have added one million cardholders in just tenmonths. Our objective is to accelerate the pace of growth by extending the benefits to a broader range of consumers in Tier II cities, along with improved value propositions for the urban affluent customers." SBI Card recently signed up Indian cricketer Yuvraj Singh as its brand ambassador.SBI joins Chinese bank to touch 10,000 branches: Public sector State Bank of India on Sunday became only the second bank in the world to have 10,000 branches when Union Finance Minister P Chidambaram inaugurated its latest branch here. Spea  king on the occasion, Chidambaram said China s ICBC Bank was the other bank to have 10,000 branches. Opening 10,000 branches was a great feat. "It is not an easy milestone though the SBI was the bank of the government and Indian people even before other banks were nationalised," he said. People all over the world, including the Chinese, would now know about this small village where the 10000th bra  nch of the SBI had been opened, he said adding they would be amazed by the banks growth. The bank should be proud of the achievement he said and wished that the bank opened one lakh branches. The Minister said out of the over 100 crore people, seventy 75 per cent did not have any type of insurance. Similarly, 50 per cent of the 11 crore farmers did not have bank account. Banks should go to the pe  ople and enroll them as account holders. That is what economists say is financi  al inclusion, he said. 20
  • 21. 2.6 Section PRODUCT RANGE OF COMPANY/INDUSTRY:The products and services provided by the SBI and PNB are in various fields, such as: • • • • • • Banking services NRI services International banking Corporatebanking Agricultural banking International banking2.7 Section PERFORMANCE OF COMPANTY IN LAST FIVE YEARS:PNB performance in last five years: 1st Quarter Net Income UP 48% Year-on-Year Taking-off from a breakthrough performance in 2007 with a registered net income of P1.5 billion, PNB continues to reap the benefits from its efforts to strengthen core businesses, reduce non-performing assets and manage costs. Net Income for the 1st Quarter of 2008 registered P457 million, up 48% from P308 million of the same period last year. This performance bucks industry trends for the 1st quarter of 2008 based on published income reports. Even as the operating environment proved volatile where negative trends are expected, PNB still managed to reflect a 136% growth in foreign exchange gains year-on-year, from P242 million to P571 million. A relentless focus in generating low-cost funds from deposits and other funding sources led to a reduction in total interest expense by as much as 27%. Total deposits closed firm at P180 billion. Operating expenses were down 23%despite investments made in systems enhancement and upgrading of facilities. The Bank has recently implemented a new generation core banking system: Flexcube –an end-to-end solution designed to automate both corporate and retail banking businesses; and effectively in-source core overseas operations to its global datacenter in the Philippines. PNB’s Japan, Singapore, Hongkong and United States branches as well as the London subsidiary have already been converted and the rest of the Bank is expected to go live soon. As of March 31, 2008, PNB’s consolidated total asset size remained strong at P242 Billion, up P2.7 billion versus end-2007. With the significant strengthening of its balance sheet over the past fewyears, PNB has been able to concentrate on generating new client relationships in the corporate segment, both in the large and SME categories. The contributionfrom the consumer finance business has likewise continued to register accelerated growth. Total consumer loans portfolio stood at P3.321
  • 22. billion, up 25% from end-2007. Combined new bookings for the 1st quarter 2008 already reached the half-billion mark. PNB’s Net Loans and Receivables closed P77billion. As of March 31, 2008, PNB’s Capital Adequacy Ratio under Basel II remained formidable at 18.51%, still way above the 10% ratio required by the Bangko Sentral ng Pilipinas. Subject to appropriate approvals and clearances, PNB is going to the capital markets to raise a minimum of P3 billion of Tier 2 Capital inpreparation for its maturing subordinated notes in February 2009. PNB will emerge as the 4th largest domestic bank in the country in terms of asset size once its planned merger with Allied Banking Corporation (ABC) is completed. The respective Board of Directors of PNB and ABC passed resolutions last April 30, 2008 approving the plan to merge the two banks. This transaction is subject to the approval of shareholders and regulatory authorities and is expected to be completed by the 3rd quarter of 2008. SBI performance in last five years: State Bank of India (SBI) is all geared up to increase its business per employee and profit per employee as it thinks that for SBI, these two parameters are among the lowest inthe industry. On one hand, the bank is trying to reduce its staff strength which would eventually improve the ratios; but on the other, the bank is also going flat out to increase its customer base. "Our business per employee and profit per employee is one of the lowest in the industry," SBI had recently said in a join  t statement issued by the management and unions.SBI s generates Rs 2.99 crore of business per employee, while its profit per employee is just about Rs 2.17 lakh. By contrast, majority of the large public sector banks are better in terms ofboth these parameters. For instance, Canara Bank has a business per employee (BP  E) of Rs 4.42 crore, while Union Bank of India s BPE is at Rs 4.36 crore and Ban  k of Baroda s (BoB) Rs 3.51 crore. These are according to their respective annua  l reports for 2005-06. On the other hand, Canara Bank s profit per employee (PPE) is also on the higher side at Rs 3.02 lakh. The PPEs of Union Bank and BoB are at Rs 2.66 lakh and Rs 2.13 lakh, respectively. "Over the years, we have been steadily losing our marketshare from about 35% in 1970s to around 16% in 2006. Our vast network is failing to attract the new and demanding young customers," SBI said in that statement, which is addressed to all SBI officers and employees and aimed at changing their attitude towards customers.22
  • 23. The statement was jointly signed by chairman OP Bhatt, managing directors TS Bhattacharya and Yogesh Agarwal and top office bearers of its officers and employees associations. To address these issues, both the management and unions have agr  eed to work hand in hand. They have appealed to the bank s staffs to go flat out   to increase its customer base."Let us be conscious of the customer s overall needs rather than only the transaction at hand. Let us expand our customer base,"the statement read. The bank has nearly 37 lakh savings bank accounts in the Ben  gal circle itself.Meanwhile, the country s largest and oldest bank has offered an exit option scheme (EOS) to its employees. The bank has some 2.1 lakh staffs,out of which nearly 1.4 lakh are clerical and subordinate employees.2.8 Section FINANCIAL STATUS OF THE ORGANISATION:PNB financial status for last five years: Annual results      Mar  08 Sales Operating profit Interest Gross profit EPS (Rs) Mar 07 Mar 06   Mar 05 Mar 04 14,265.02 11,537.48 9,584.15 8,459.85 7,778.94 10,029.21 8,730.86 4,006.24 64.98 7,149.74 5,721.06 4,683.04 4,056.84 6,022.91 4,917.39 4,453.11 4,154.99 3,230.64 2,874.77 2,707.21 3,120.86 48.84 45.65 44.72 41Balance sheet    Mar 08 Sources of funds Owner s fund Equity share capital Share application money Preference share capital Reserves & surplus Loan funds 315.30 10,467.35 315.        30 9,826.31 315.30 8,758.68 315.30 265.30 Mar 07 Mar 06 Mar 05 Mar 047,533.50 4,425.4723
  • 24. Secured loans Unsecured loans Total Uses of funds Fixed assets Gross block Less: revaluation reserve Less : accumulated depreciation Net block Capital work-in-progress Investments Net current assets Current assets, loans & advances Less :current liabilities & provisions Total net current assets Miscellaneous expenses not written Total Notes: Book value of unquoted investments Market value of quoted investments Contingent liabilities Number of equity sharesoutstanding (Lacs)-----1,66,457.23 1,39,859.67 1,19,684.92 1,03,166.89 87,916.40 1,77,239.88 1,50,001.28 1,28,758.90 1,11,015.69 92,607.163,699.64 1,535.70 1,384.12 779.83 53,991.712,247.74 293.85 1,237.92 715.98 45,189.842,106.92 302.38 1,076.69 727.84 41,055.311,875.65 1,645.93 312.49 910.42 652.74 321.04 746.08 578.81 -50,672.83 42,125.494,380.84 14,798.23 -10,417.38 44,354.153,980.80 10,178.51 -6,197.71 39,708.103,762.79 9,518.93 -5,756.14 36,027.013,101.44 3,261.18 12,194.80 8,114.48 -9,093.36 -4,853.30 -42,232.20 37,850.991,04,055.87 3153.0374,700.48 3153.0358,739.31 3153.03--47,047.19 32,229.85 3153.03 2653.03Profit loss account  Mar 08 Income: Operating income Expenses Material consumed Manufacturing expenses Personnel expenses Selling expenses 2,461.54 23.31 2,352.45 18.03 2,114.97 20.15 2,121.23 19.16 1,654.06 10.85 15,925.65 12,104.24 9,791.12 9,712.63 9,617.3        4 Mar 07 Mar 06 Mar 05 Mar 0424
  • 25. Adminstrative expenses Expenses capitalised Cost of sales Operating profit Other recurring income Adjusted PBDIT Financial expenses Depreciation Other write offs Adjusted PBT Tax charges Adjusted PAT Non recurring items Other non cash adjustments Reported net profit Earnigs before appropriation Equity dividend Preference dividend Dividend tax Retained earnings1,247.47 3,732.33 3,462.46 231.62 3,694.08 8,730.86 170.23 3,523.85 1,247.15 2,047.63 1.13 2,048.76 2,064.28 409.89 69.66 1,584.731,360.77 3,731.25 2,350.09 186.67 2,536.76 6,022.91 194.80 2,341.96 629.05 1,539.33 0.76 1,540.08 1,723.57 409.89 63.11 1,250.57941.38 3,076.51 1,797.23 131.54 1,928.77 4,917.39 186.65 1,742.12 412.83 1,436.66 2.65 1,439.31 1,439.31 189.18 26.53 1,223.60933.60 3,073.99 2,185.53 470.69 2,656.22 4,453.11 183.28 2,472.94 495.49 1,409.50 0.62 1,410.12 1,410.12 174.18 23.48 1,212.461,764.91 3,429.82 2,032.53 59.85 2,092.38 4,154.99 181.45 1,910.93 660.79 1,108.45 0.24 1,108.69 1,108.69 106.12 13.60 988.97Cash flow  Mar 08 Profit before tax Net cashflow-operating activity Net cash used in investing activity Netcash used in fin. activity Net inc/dec in cash and equivlnt Ca  sh and equivalnt begin of year Cash and equivalnt end of year 3,295.91 Mar       072,169.13 Mar 06 2,033.87 Mar 05 Mar 04 1,904.74 1,768.68 1,073.53 -349.831,544.81 2,268.51 529.29 -176.20 390.24 743.331,756.13 -10,144.34 14,961.44 -444.46 1,873.54 3,185.21 -159.41 1,157.57 -465.64 -793.13-9,146.17 13,702.6615,645.52 24,791.69 11,089.038,820.51 8,077.1918,830.72 15,645.52 24,791.69 11,089.03 8,820.51SBI financial status for last five years: Annual results        Mar  09 Sales Operating profit Mar 08 Mar 07 0.90 0.35 Mar 06 0.44 -0.06Mar 05 0.66 -0.0325
  • 26. Interest Gross profit EPS (Rs)24.67 -24.63 -16.4221.36 -18.24 -12.1721.29 -4.79 -3.1921.30 -21.17 -14.1321.30 -20.35 -13.58Balance sheet    Mar 08 Sources of funds Owner s fund Equity share capital Share application money Preference share capital Reserves & surplus Loan funds Secured loans Unsecured loans Total Uses of funds Fixed assets Gross block Less : revaluation reserve Less : accumulated depreciation Net block Capital work-in-progress InvestmentsNet current assets Current assets, loans & advances Less : current liabilities & provisions Total net current assets Miscellaneous expenses not written Total Notes: Book value of unquoted investments Market value of quoted investments Contingent liabilities Number of equity sharesoutstanding 0.22 150.00 0.21 150.00 0.22 150.00 10.40 150.00 10.40 150.00 11.44 306.47 -295.04 -294.56 16.30 293.09 -276.79 -276.32 23.98 296.10 -272.12 -271.64 24.38 275.52 -251.14 -250.66 32.15 263.77 -231.62 -230.35 0.57 0.10 0.48 0.57 0.10 0.48 0.72 0.24 0.48 0.72 0.24 0.482.86 1.59 1.27 -294.56 -276.32 -271.64 -250.66 -230.35 15.00 -309.56 15.00 -291.        32 15.00 -286.64 15.00 -265.66 15.00 -245.35 Mar 07 Mar 06 Mar 05 Mar 0426
  • 27. (Lacs)Profit loss account  Mar 08 Income: Operating income Expenses Material consumed Manufacturing expenses Personnel expenses Selling expenses Adminstrative expenses Expenses capitalised Cost of sales Operating profit Other recurring income Adjusted PBDIT Financial expenses Depreciation Other write offs Adjusted PBT Tax charges Adjusted PATNon recurring items Other non cash adjustments Reported net profit Earnigs before appropriation Equity dividend Preference dividend Dividend tax Retained earnings 0.03 0.12 0.29 0.44 0.58 2.53 3.11 21.36 -18.24 -18.25 -18.25 -312.32 -312.32 0.09 0.41 0.51 0.39 12.16 12.55 21.35 -8.80 0.01 -8.81 4.13 -4.67 -294.08 -294.08 0.14 0.29 0.44 0.01 0.10 0.11 21.36 0.01 -21.26 0.01 -21.27 0.01 0.27 -20.99-289.40 -289.40 0.20 0.48 0.68 -0.03 0.79 0.76 21.30 0.02 -20.56 -20.56 0.08 0.17 -20.31 -268.42 -268.42 0.72 0.03 12.45 13.20 -2.30 -2.30 28.66 1.02 -31.98 -31    .98 -2.95 9.65 -25.29 -248.11 -248.11 1.02 0.90 0.44 0.66 10.90 Mar 07 Mar 0    6 Mar 05 Mar 04Cash flow        Mar 08 Profit before tax -18.24 Mar   07 -4.67 Mar 06 -20.98 Mar 05 -21.06 Mar 04 -25.2927
  • 28. Net cashflow-operating activity Net cash used in investing activity Netcash used in fin. activity Net inc/dec in cash and equivlnt Cash and equivalnt begin of year Cash and equivalnt end of year-4.89 -4.89 16.16 11.275.65 5.65 10.51 16.160.08 0.01 0.09 10.42 10.51-7.02 0.85 -0.46 -6.64 17.06 10.4288.19 29.46 -131.50 -13.85 30.91 17.062.9 Section FUTURE PLANS:PNB future plans: PNB has initiated various steps in a bid to expand its operations in the state of Kerala. These include opening new branches and increasing the number of its core banking solutions branches. PNB currently has 71 CBS branches in Kerala and has registered good growth from this region. PNB in looking atincreasing its international presence and in line with this, the company is planning to set up offices in UK, Singapore, Hong Kong and Canada. The Canada office is likely to open very soon, while the other locations are likely to commence operations by end of this fiscal year. PNB unvieled its plans to raise additional capital of Rs. 21,000 million to fund its business expansion plans for this current fiscal. SBI future plans: SBI has set for itself an ambitious target of credit linking 1 million SHGs up to March 2008.The Bank has started to leverage our vast SHG network for various services beyond credit delivery. The State Bank of India (SBI) has formulated a “home-grown strategy” to merge its six associatedbanks with it within this fiscal. SBI drawn up a home-grown strategy to carry out the merger programme and we may take up such mergers one by one, or two at a time or in a phased manner. SBI want the future mergers to be as smooth as the merger.Post-merger, the size of SBI’s balance sheet will cr-oss Rs 12,00,000 crore and its profitablity will increased.28
  • 29. CHAPTER 3 REVIEW OF LITERATURE:1) In august 2001 James B. Thomson and Ben R. Craig had studied about the Federal Home Loan Bank Lending to Community Banks,are Targeted Subsidies Necessary? The Gramm-Leach-Bliley Act of 1999 amended the lending authority of the Federal Home Loan Banks to include advances secured by small enterprise loans of community financial institutions. Three possible reasons for the extension of this selective credit subsidy to community banks and thrifts are examined, including the need to: subsidize community depository institutions, stabilize the Federal Home Loan Banks, and address a market failure in rural markets for small enterprise loans. They empirically investigate whether funding constraints impact the smallbusiness lending decision by rural community banks. Specifically, they estimate two empirical models of small-business lending by community banks. The data reject the hypothesis that access to increased funds will increase the amount of small-business loans made by community banks.2) In December 2006 Fulbag Singh and Reema Sharma had studied about the housingFinance in India. Housing, as one of the three basic needs of life, always remains on the top priority of any person, economy, government and society at large.In India, majority of the population lives in slums and shabby shelters in rural areas. From the last decade, the Government of India has been continuously trying to strengthen the housing sector by introducing various housing loan schemesfor rural and urban population. The first attempt in this regard was the National Housing Policy (NHP), which was introduced in 1988. The National Housing Bank(NHB) was set up in 1988 as an apex institution for housing finance and a wholly-owned subsidiary of Reserve Bank of India (RBI). The main objective of the bank is to promote and establish the housing financial institutions in the country as well as to provide refinance facilities to housing finance corporations and scheduled commercial banks. Moreover, for the salaried section, the tax rebates on housing loans have been introduced. The paper is based on the case study of LIC Housing Finance Ltd., which analyzes region-wise disbursements of individual house loans, their portfolio amounts and the defaults for the last ten years, i.e., from 1995-96 to 2004-05 by working out relevant ratios in terms of percentages and the compound annual growth rates. A relevant chart has also been prepared to highlight the results.3) In May 18, 2007 Michael LaCour-Little had studied about the Economic FactorsAffecting Home Mortgage Disclosure Act Reporting. The public release of the 20042005 Home Mortgage Disclosure Act data raised a number of questions given the increase in the number and percentage of higher-priced home mortgage loans and continued differentials across demographic groups. Here we assess three possible explanations for the observed increase in 2005 over 2004: (1) changes in lender business practices; (2) changes in the risk profile of borrowers; and (3) changesin the yield curve environment. Results suggest that after controlling for the mix of loan types, credit risk factors, and the yield curve, there was no statistically significant29
  • 30. increase in reportable volume for loans originated directly by lenders during 2005, though indirect, wholesale originations did significantly increase. Finally, given a model of the factors affecting results for 2004-2005, we predict that 2006 results will continue to show an increase in the percentage of loans that are higher priced when final numbers are released in September 2007.4) In may 1991 Stephen F. Borde had studied about the “Is the Savings and Loan Industry Facing Extinction?” This article tells about the Saving and loan crisis. Proposed solutions are discussed in the context of the industry as it currently stands. With a somewhat similar liability structure to that of banks (mainly short-term deposits), the asset structure of S&Ls is quite different. Whereas banks assets consist of short-term loans, S&L assets consist largely of long-term loans, such as home ownership mortgages. Therefore, in the absence of adequate hedging measures, S&Ls are more vulnerable to interest rate risk, which can lead to lower profits when interest rates rise.5) In June 29, 2001 Joshua Rosner had studied about the Housing in the New Millennium: A Home Without Equity is Just a Rental with Debt. They studied about theprospects of the U.S. housing/mortgage sector over the next several years. Based on our analysis, we believe there are elements in place for the housing sectorto continue to experience growth well above GDP. However, we believe there are risks that can materially distort the growth prospects of the sector. Specificall    y, it appears that a large portion of the housing sector s growth in the 1990 scame from the easing of the credit underwriting process. Such easing includes: * The drastic reduction of minimum down payment levels from 20% to 0% * A focused effort to target the "low income" borrower * The reduction in private mortgageinsurance requirements on high loan to value mortgages * The increasing use of software to streamline the origination process and modify/recast delinquent loans in order to keep them classified as "current" * Changes in the appraisal process which has led to widespread overappraisal/overvaluation problems If these trends remain in place, it is likely that the home purchase boom of the past decadewill continue unabated. Despite the increasingly more difficult economic environment, it may be possible for lenders to further ease credit standards and more fully exploit less penetrated markets. Recently targeted populations that have historically been denied homeownership opportunities have offered the mortgage industry novel hurdles to overcome. Industry participants in combination with eased regulatory standards and the support of the GSEs (Government Sponsored Enterprises) have overcome many of them. If there is an economic disruption that causesa marked rise in unemployment, the negative impact on the housing market could be quite large. These impacts come in several forms. They include a reduction inthe demand for homeownership, a decline in real estate prices and increased foreclosure expenses. These impacts would be exacerbated by the increasing debt burden of the U.S. consumer and the reduction of home equity available in the home.Although we have yet to see any materially negative consequences of the relaxation of credit standards, we believe the risk of credit relaxation and leverage ca  n t be ignored. Importantly, a relatively new method of loan forgiveness can temporarily alter the perception of credit health in the housing sector. In an effort to keep homeowners in the home and reduce foreclosure expenses, holders of mortgage assets are currently recasting or modifying troubled loans. Such policy initiatives may for a time distort the relevancy of delinquency and foreclosure statistics. However, a protracted housing slowdown could eventually cause modifications to become uneconomic and, thus, credit quality30
  • 31. statistics would likely become relevant once again. The virtuous circle of increasing homeownership due to greater leverage has the potential to become a vicious cycle of lower home prices due to an accelerating rate of foreclosures. 6) Indec 2002 Melissa B. Jacoby had studied about the Home Ownership Risk Beyond a Subprime Crisis: The Role of Delinquency Management. They studied that Public investment in and promotion of homeownership and the home mortgage market often relies on three justifications to supplement shelter goals: to build household wealth and economic self-sufficiency, to generate positive social-psychological states, and to develop stable neighborhoods and communities. Homeownership and mortgage obligations do not inherently further these objectives, however, and sometimes undermine them. The most visible triggers of the recent surge in subprime delinquency have produced calls for emergency foreclosure avoidance interventions (as well as front-end regulatory fixes). Whatever their merit, I contend that a system of mortgage delinquency management should be an enduring component of housing policy. Furtherance of housing and household policy objectives hinges in part on the conditions under which homeownership is obtained, maintained, leveraged, and - in some situations - exited. Given that high leverage or trigger events such as job loss and medical problems play significant roles in mortgage delinquency independent of loan terms, better origination practices cannot eliminate the need for delinquency management. One function of this brief essay is to identify an existing rough framework for managing delinquency. Legal scholarship should no longer discuss mortgage enforcement primarily in terms of foreclosure law and instead should include other debtor-creditor laws such as bankruptcy, industry loss mitigation efforts, and thirdparty interventions such as delinquency housing counseling. In terms of analyzing this framework, it is tempting to focus onits impact on mortgage credit cost and access or on the absolute number of homes temporarily saved, but my proposed analysis is based on whether the system honors and furthers the goals of wealth building, positive social psychological states, and community development. Because those ends are not inexorably linked to ownership generally or owning a particular home, a system of delinquency management that honors these objectives should strive to provide fair, transparent, humane, and predictable strategies for home exit as well as for home retention. Although more empirical research is needed, this essay starts the process of analyzing mortgage delinquency management tools in the proposed fashion.7)In 1999 Yoko Moriizumi had studied about the Current Wealth, Housing Purchase and Private Housing Loan Demand in Japan. Japanese households accumulate wealth for downpayments at a high rate. Therefore, current wealth plays an important role in home acquisition as public loans whose direct mortgage lending is a strong support for home purchasers. We estimate the wealth effect on private mortgage debt as well as housing consumption by applying a model where mortgage debt demand is derived from house purchase decisions and is determined jointly with housing consumption. We use a simultaneous equation Tobit estimation method. Wealth effects on private mortgage debt, likelihood of borrowing, and housing consumptionare not elastic. On the other hand, a change in housing consumption affects thelikelihood of borrowing elastically much more than the private mortgage amount of borrowers. Housing and private mortgage markets fluctuate very closely with the number of participants in the mortgage market. Therefore, the number of housing starts is linked strongly to the private mortgage market.8) Robert B. Avery and Allen N. Berger had studied about the Loan commitments and bank risk exposure. They studied about the Loan commitments increase a  bank s risk by obligating it to issue future loans under terms that it might otherwise refuse. However, moral hazard and adverse selection problems31
  • 32. potentially may result in these contracts being rationed or sorted. Depending on the relative risks of the borrowers who do and do not receive commitments, commitment loans could be safer or riskier on average than other loans. the empirical results indicate that commitment loans tend to have slightly better than average performance, suggesting that commitments generate little risk or that this risk is offset by the selection of safer borrowers.9) Sumit Agarwal,Souphala Chomsisengphet and John C. Driscoll had studied aboutthe Loan commitments and private firms. They studied that, Most loansare in the form of credit lines. Empirical studies of line demand have been complicated by their use of data on publicly traded firms, which have a wide menu of financing options. We avoid this problem by using a unique proprietary data set from a large financial institution of loan commitments made to 712 privately-he  ld firms. We test Martin and Santomero s (1997) model, in which lines give firms the speed and flexibility to pursue investment opportunities. Our findings areconsistent with their predictions. Firms facing higher rates and fees have smaller credit lines. Firms with higher growth commit to larger lines of credit and have a higher rate of line utilization. Firms experiencing more uncertainty in their funding needs commit to smaller credit lines. Almost all firms convert unused credit line portions into spot loans and take out new lines.10) Faik Koray and Eric T. Hillebrand had studied about the Interest Rate Volatility and Home Mortgage Loans . they studied that The U.S. economy has experienced substantial fluctuations in real and nominal interest rates since the 1970s. This paper investigates empirically the relationship between home mortgage loansand volatility in mortgage rates for the period 1971:02 through 2003:03. Contrary to common wisdom, we find a positive relationship between mortgage rate volatility and home mortgage loans. Further investigation indicates that this is due to volatility in the bond market. In times of high interest volatility, households disinvest in government securities and invest in real assets, which yield a positive relationship between mortgage rate volatility and home mortgage loans.11) In nov 2000 Michelle J. White and Emily Y. Lin had studied about the Bankruptcy and the Market for Mortgage and Home Improvement Loans. They studied that This paper investigates the relationship between bankruptcy exemptions and the availability of credit for mortgage and home improvement loans. We develop a combin  ed model of debtors decisions to file for bankruptcy and to default on their mortgages and show that the theory predicts positive relationships between both the homestead and personal property exemption levels and the probability of borrowers being denied mortgage (secured) and home improvement loans. We test these predictions empirically and find strong and statistically significant support when evidence from crossstate variation in bankruptcy exemption levels is used. Applicants for mortgages are 2 percentage points more likely to be turned down for mortgages and 5 percentage points more likely to be turned down for home improvement loans if they live in states with unlimited rather than low homestead exemptions. These relationships also hold when we introduce state fixed effects into the model. 12) In October 14, 2008 David P. Bernstein had studied about the HomeEquity Loans and Private Mortgage Insurance: Recent Trends & Potential Implications. They studied about the the impact of increased use of home equity lines and decreased32
  • 33. private mortgage insurance (PMI) on mortgage markets. The data confirms that inthe years leading up to the mortgage crisis home buyers and lenders have aggressively used piggyback loans to avoid taking out PMI on first mortgages. Multiple-mortgage financing packages as a percent of newly originated mortgages (mortgages originated within the previous five years) went from 14.8% in survey year 2001 to 21.5% in survey year 2007. The multiple-mortgage percentage for seasoned mortgages (mortgages originated more than five years prior to the origination date) also increased by a modest amount. Further comparisons reveal a large decreasein the proportion of mortgages with PMI with the largest decreases in PMI coverage occurring among newly originated multiple-lien packages. Data from the SCF was used to compare five financial characteristics (credit card debt, installmentloans, consumer credit, home-owners equity, and liquid assets) for multiple-lien versus single-lien households. The comparisons suggest single-lien households tend to have slightly stronger financial variables than multiple-lien households. The data does not support the view that homeowners with multiple liens are less risky and should therefore be allowed to avoid PMI. The reduced use of PMI andthe increased use of home equity loans increased mortgage holder risk in several different ways and was a contributing factor to the 2008 mortgage and financial crisis. This change in lending and borrowing behavior is not a subprime marketproblem.13) In aug 2007 Michael LaCour-Little had studied about the The Home Purchase Mortgage Preferences of Low- and Moderate-Income Households. Housing policy in the United States has long supported homeownership, yet variation persists across income groups. This article employs recent mortgage origination data to focus onthe revealed preferences of low- and moderateincome (LMI) households in home purchase mortgage choice. I identify the factors associated with conventional conforming, FHA, nonprime and specially targeted programs. Empirical results show that individual credit characteristics and financial factors, including pricing, generally drive product choice, with some variation evident when loans are originated through brokers. Results also indicate that targeted conventional programs effectively compete with government-insured products in the LMI segment.14) In 24 oct 2008 David C. Wheelock had studied about the Government Response to Home Mortgage Distress: Lessons from the Great. They studied about the The Great Depression was the worst macroeconomic collapse in U.S. history. Sharp declines in household income and real estate values resulted in soaring mortgage delinquency rates. According to one estimate, as of January 1, 1934, fully one-half of U.S. home mortgages were delinquent and, on average, some 1000 home loans were foreclosed every business day. This paper documents the increase in residential mortgage distress during the Depression, and discusses actions taken by state governments and the federal government to reduce mortgage foreclosures and restore the functioning of the mortgage market. Many states imposed moratoria on bothfarm and nonfarm residential mortgage foreclosures. Although moratoria reduced farm foreclosure rates in the short run, they appear to have also reduced the supply of loans and made credit more expensive for subsequent borrowers. The federal government took a number of steps to relieve residential mortgage distress and to promote the recovery and growth of the national mortgage market. The Home Owners Loan Corporation (HOLC) was created in 1933 to purchase and refinance delinquent home loans as long-term, amortizing mortgages. Between 1933 and 1936, theHOLC acquired and refinanced one million delinquent loans totaling $3.1 billion. The HOLC refinanced loans on some 10 percent of all nonfarm, owner-occupied dwellings in the United States, and about 20 percent of those with an outstanding mortgage. The Great Depression experience suggests how foreclosures might be reduced during the present crisis.33
  • 34. 15) In march 2001 Tullio Jappelli and Maria Concetta Chiuri had studied about the Financial Market Imperfections and Home Ownership: A Comparative Study. They explore the determinants of the international pattern of home ownership using the Luxembourg Income Study (LIS), a collection of microeconomic data on fourteen OECD countries. In most, the cross-section is repeated over time and includes several demographic variables carefully matched between the different surveys. This allows us to construct a truly unique international dataset, merging data on more than 400,000 households with aggregate panel data on mortgage loans and downpayment ratios. After controlling for demographic characteristics, country effects, cohort effects and calendar time effects, we find strong evidence that the availability of mortgage finance - as measured by outstanding mortgage loans anddown payment ratios - affects the age-profile of home ownership, especially at the young end. The results have important implications for the debate on the relationship between saving and growth.16) In 10 dec 2007 Irina Paley and Chau Do had studied about the Explaining theGrowth of Higher-Priced Loans in HMDA: A Decomposition Approach. The period 2004-2005 showed a significant increase in Home Mortgage Disclosure Act (HMDA) ratespread reporting. Following the Oaxaca (1973), Blinder (1973), and Fairlie (2005) decomposition techniques, this study identifies the fraction of the increase due to the flattening of the yield curve. Even after controlling for changes in borrower risk characteristics, the findings reveal that during 20042006, the flattening of the yield curve explains a significant amount of the increase in ratespread reportable loans. This is the case for both prime and subprime originations.17) In feb 1 2009 Vincent W. Yao and Eric Rosenblatt and Michael LaCour-Little had studied about the unique paired loan dataset containing information on multiple conventional conforming mortgage loans of households to examine home equity extraction decisions over the period 2000-2006. The main question addressed is how much households borrow when refinancing their current mortgage debt in a cash-out transaction. We also provide estimates of the marginal effect of certain borrower characteristics. Results contribute both to the literature on refinancingbehavior and the role of house price appreciation in providing funds that may be used for consumer spending or other purposes.18) In aug 2004 Mark Carey and Greg Nini had studied about the Is the CorporateLoan Market Globally Integrated? A Pricing Puzzle. We offer evidence that interest rate spreads on syndicated loans to corporate borrowers are economically significantly smaller in Europe than in the U.S., other things equal. Differences in borrower, loan and lender characteristics associated with equilibrium mechanisms suggested in the literature do not appear to explain the phenomenon. Borrowers overwhelmingly issue in their natural home market and bank portfolios display significant home "bias." This may explain why pricing discrepancies are not competed away, but the fundamental causes of the discrepancies remain a puzzle. Thus, important determinants of loan origination market outcomes remain to be identified, home "bias" appears to be material for pricing, and corporate financing costs differ in Europe and the U.S.19) In july 2005 Gwilym B.J. Pryce and Patric H. Hendershott had studied abot the The Sensitivity of Homeowner Leverage to the Deductibility of Home Mortgage Interest.Mortgage interest tax deductibility is needed to treat debt and equity financing of homes equally. Countries that limit deductibility create a debt tax penalty that presumably leads households to shift from debt toward equity financing. The greater the shift, the less is the tax revenue raised by the limitationand smaller is its34
  • 35. negative impact on housing demand. Measuring the financing response to a legislative change is complicated by the fact that lenders restrict mortgage debt to the value of the house (or slightly less) being financed. Taking this restrictioninto account reduces the estimated financing response by 20 percent (a 32 percent decline in debt vs a 40 percent decline). The estimation is based on 86,000 newly originated UK loans from the late 1990s.20) In 1 nov 2007 Marsha Courchane studied about The Pricing of Home Mortgage Loans to Minority Borrowers: How Much of the APR Differential. The public releases of the 2004 and 2005 HMDA data have engendered a lively debate over the pricing of mortgage credit and its implications regarding the treatment of minority mortgage borrowers. We provide a unique empirical assessment of this issue by using aggregated proprietary data provided to us by lenders and an endogenous switching regression model to estimate the probability of taking out a subprime mortgage, and annual percentage rate ("APR") conditional on getting either a subprime or prime mortgage. We find that up to 90 percent of the African American APR gap, and 85 percent of the Hispanic APR gap, is attributable to observable differences in underwriting, costing and market factors that appropriately explain mortgage pricing differentials. Although any potential discrimination is problematic and should be addressed, our analysis suggests that little of the aggregate differences in APRs paid by minority and non-minority borrowers are appropriately attributed to differential treatment.21) In 1991 Susan M. Wachter and Paul S. Calemhad studied about the Community Reinvestment and Credit Risk: Evidence from an Affordable Home Loan Program.This study examines the performance of home purchase loans originated by a major depository institution in Philadelphia under a flexible lending program between 1988and 1994. We examine long-term delinquency in relation to neighborhood housing market conditions, borrower credit history scores, and other factors. We find that likelihood of delinquency declines with the level of neighborhood housing market activity. Also, likelihood of delinquency is greater for borrowers with low credit history scores and those with high ratios of housing expense to income, and when the property is unusually expensive for the neighborhood where it is located.35
  • 36. CHAPTER 4 INTERPRETATION: SBI: NO.501) What is your occupation?Business man Student Government Employee Other House wife15 0 22 0 925 20 15 10 5 0 Series1 Series2 Series3STUDENTGOVERNMENT EMPLOYEEBUSINESS MANInterpretation:o o o o o o oTotal Number of Respondents was 46. 0 of our Respondents was Students. 22 of the Respondents were into government employees 15 of our Respondents were Businessman. 9 of our Respondents were Housewives. None of our Respondent belonged to the category of others. 4 respondents did not answer.HOUSE WIFEOTHER36
  • 37. 2) From how many years you are associated with this bank?Less than 1 year 1-5 years More than 5 10 24 1230 25 20 Series1 15 10 5 0 Less than year 1-5 year more then 5 Series2Interpretation:o o o o oTotal Number of Respondents was 46 10 persons are associated less than 1 year 24 persons are associated from 1-5 years. 12 persons are associated from more than 5 years.3) How do you come to know about the home loan schemes of that bank?News paper Television18 1437
  • 38. Internet other resources10 420 18 16 14 12 10 8 6 4 2 0 News paper Television Internet Other resourcesSeries1 Series2Interpretation:o o o o oTotal Number of Respondents was 46 18 persons came to know from newspaper 14 persons came to know from television 10 persons came to know from internet 4 persons came to know from other resources4) Are you aware of these type of home loans?Home purchase loan Home construction loan Home improvement loan Home equity loan Land purchase loan9 18 6 4 938
  • 39. 20 18 16 14 12 10 8 6 4 2 0Series1Interpretation:o o o o o5) Are you aware all terms and conditions of home loans?Yes Nolo an co ns tr u ct Ho io n m lo e an im pr ov em en tl oa Ho n m e eq ui ty loLa an nd pu rc ha se lo anHo m eHo m epu rc ha seTotal Number of Respondents was 46 Only 4 persons know home equity loan. Many of peoples know home construction loan. 9 peoples know home purchase loan. 6 peoples knowhome improvement loans.40 639
  • 40. 45 40 35 30 25 20 15 10 5 0 Yes No Series1Interpretation:o o oTotal Number of Respondents was 46. Many of persons know all terms and conditions of home loan i.e. 40. 6 persons had not know properly about all terms and conditions.6) Are you satisfy with the interest rate charges by your bank?Strongly agree Agree Disagree strongly disagree12 30 4 040
  • 41. 16 14 12 10 8 6 4 2 0 Strongly agree Agree Disagree strongly disagree Series1Interpretation:o o o o oTotal Number of Respondents was 46 12 among all consumers are strongly agreed by interest rate of the bank. 30 among all consumers are agreed by interest rate of the bank 4 among all consumers are disagreed by interest rate of the bank 0 among all consumers are strongly disagreed by interest rate of the bank7) Your bank offer which type of services?Mobile banking Net banking Forex banking24 15 741
  • 42. 30 25 20 15 10 5 0 Mobile banking Net banking Forex banking Series1Interpretation:o o o oTotal Number of Respondents was 46. 24 persons said that bank offer mobile banking services. 15 said that bank offer net banking services. Only 7 persons said that bank offer forex banking services.8) Do you agree that your bank loan processing is fast?Strongly agree Agree Disagree strongly disagree8 26 9 342
  • 43. 30 25 20 15 10 5 0 Strongly agree Agree Disagree strongly disagree Series1Interpretation:o o o o oTotal Number of Respondents was 46. 8 persons strongly agree that bank home loan processing is fast. 26 persons agree that bank home loan processing is fast. 9persons disagree that bank processing is fast. 3 persons strongly disagree thatbank processing is fast.9) Do you satisfy with the after home loan services provided by your bank are best as compare to other bank?Strongly agree Agree Disagree strongly disagree12 30 4 043
  • 44. 35 30 25 20 Series1 15 10 5 0 Strongly agree Agree Disagree strongly disagreeInterpretation:o oTotal Number of Respondents was 46 12 among all consumers are strongly agreed by after sale services of the bank.o o o30 among all consumers are agreed by after sale services of the bank 4 among all consumers are disagreed by after sale services of the bank 0 among all consumers are strongly disagreed by after sale services of the bank10) Does the cost of home loan is appropriate, according to your demand?Yes No33 1344
  • 45. 35 30 25 20 Series1 15 10 5 0 Yes NoInterpretation:o oTotal Number of Respondents was 46. 33 persons said that home loan is appropriate according to their demand.o13 persons said that home loan is not appropriate according to their demand.11) Are you satisfy with the employees behaviour of the bank?Strongly agree Agree Disagree strongly disagree19 23 4 045
  • 46. 25 20 15 Series1 10 5 0 Strongly agree Agree Disagree strongly disagreeInterpretation:o o o o o oTotal Number of Respondents was 46. 19 persons very satisfied with the employeebehaviour of the bank. 23 persons satisfied with the employee behaviour of the bank. 4 persons disagree with the employee behaviour of the bank. No one is disagree with the employee behaviour of the bank.12) Does the bank give any discount upon loan services?Yes No40 646
  • 47. 45 40 35 30 25 20 15 10 5 0 Yes No Series1Interpretation:o o oTotal Number of Respondents was 46. 40 persons said that bank give discount upon loan services. Only 6 persons said that bank does not give any discount upon loan services.13) Are you satisfy by the time taken in sanctioning the loan?Yes No34 1247
  • 48. 40 35 30 25 20 15 10 5 0 Yes No Series1Interpretation:o o oTotal Number of Respondents was 46. 34 persons are satisfied by the time taken 12 persons are not satisfied by the time taken14) Have you face any difficulty during taking the loan?Yes No39 748
  • 49. 45 40 35 30 25 20 15 10 5 0 Yes No Series1Interpretation:o o oTotal Number of Respondents was 46. 39 persons face difficulty during taking the loan. Only 7 persons does not face any difficulty during taking the loan.15) Which grade you want to give of home loan schemes of the bank?Excellent Good Average below average24 18 4 049
  • 50. 30 25 20 15 10 5 0 Excellent Good Average below average Series1Interpretation:o o o o oTotal Number of Respondents was 46. 24 persons give excellent grade of the bank. 18 persons gove good grade to the bank. Only 4 persons give average grade to the bank. No none give below average grade to the bank.PNB: NO.501) What is your occupation?Business man Student Government Employee Other House wife17 0 23 0 750
  • 51. 25 20 15 10 5 0 Series1St ud en en t tE m pl oy eeO th eranmBu sinInterpretation:o o o o o o oG ov er nmTotal Number of Respondents was 47. 0 of our Respondents was Students. 23 of the Respondents were into government employees 17 of our Respondents were Businessman. 7 of our Respondents were Housewives. None of our Respondent belonged to the category of others. 3 respondents did not answer.2) From how many years you are associated with this bank? 3)Less than 1 year 1-5 years More than 5 17 19 11Ho us ees swife51
  • 52. 20 18 16 14 12 10 8 6 4 2 0 Less than 1 1-5 years year More than 5Series1Interpretation:o o o oTotal Number of Respondents was 47 17 persons are associated less than 1 year 19 persons are associated from 1-5 years. 11 persons are associated from more than 5 years.3) How do you come to know about the home loan schemes of that bank?News paper Television Internet other resources12 22 9 452
  • 53. 25 20 15 Series1 10 5 0 News paper Television Internet other resourcesInterpretation:o o o o oTotal Number of Respondents was 47 12 persons came to know from newspaper 22 persons came to know from television 9 persons came to know from internet. 4 persons came to know from other resources.4) Are you aware of these type of home loans?Home purchase loan Home construction loan Home improvement loan Home equity loan Land purchase loan9 19 9 2 853
  • 54. 20 18 16 14 12 10 8 6 4 2 0Series1Interpretation:o o o o o5)Are you aware all terms and conditions of home loans?Yes Nopu rc ha se co ns lo Ho an tr u m ct e io im n pr lo an ov em en Ho tl m oa e eq n La ui nd ty lo pu an rc ha se lo an Ho m eHo m eTotal Number of Respondents was 47. Only 2 persons know home equity loan. Many of peoples know home construction loan. 9 peoples know home purchase loan. 9 peoples knowhome improvement loans.34 1354
  • 55. 40 35 30 25 20 15 10 5 0 Yes No Series1Interpretation:o o oTotal Number of Respondents was 47. Many of persons know all terms and conditions of home loan i.e. 34. 13 persons had not know properly about all terms and conditions.6)Are you satisfy with the interest rate charges by your bank?Strongly agree Agree Disagree strongly disagree11 34 2 055
  • 56. 40 35 30 25 20 15 10 5 0 Strongly agree Agree Disagree strongly disagree Series1Interpretation:o o o o oTotal Number of Respondents was 47. 11 among all consumers are strongly agreed by interest rate of the bank. 34 among all consumers are agreed by interest rateof the bank 2 among all consumers are disagreed by interest rate of the bank 0 among all consumers are strongly disagreed by interest rate of the bank7) Your bank offer which type of services?Mobile banking Net banking Forex banking26 13 856
  • 57. 30 25 20 15 10 5 0 Mobile banking Net banking Forex banking Series1Interpretation:o o o oTotal Number of Respondents was 47. 26 persons said that bank offer mobile banking services. 13 said that bank offer net banking services. Only 8 persons said that bank offer forex banking services.8)Do you agree that your bank loan processing is fast?Strongly agree Agree Disagree strongly disagree4 21 13 957
  • 58. 25 20 15 Series1 10 5 0 Strongly agree Agree Disagree strongly disagreeInterpretation:o o o o oTotal Number of Respondents was 47. 4 persons strongly agree that bank home loan processing is fast. 21 persons agree that bank home loan processing is fast. 13 persons disagree that bank processing is fast. 9 persons strongly disagree that bank processing is fast.9) Do you satisfy with the after home loan services provided by your bank are best as compare to other bank?Strongly agree Agree Disagree strongly disagree14 29 4 058
  • 59. 35 30 25 20 15 10 5 0 Strongly agree Agree Disagree strongly disagree Series1Interpretation:o oTotal Number of Respondents was 47. 14 among all consumers are strongly agreed by after sale services of the bank.o o o29 among all consumers are agreed by after sale services of the bank 4 among all consumers are disagreed by after sale services of the bank 0 among all consumers are strongly disagreed by after sale services of the bank10) Does the cost of home loan is appropriate, according to your demand?Yes No29 1859
  • 60. 35 30 25 20 Series1 15 10 5 0 Yes NoInterpretation:o oTotal Number of Respondents was 47. 29 persons said that home loan is appropriate according to their demand.o18 persons said that home loan is not appropriate according to their demand.11)Are you satisfy with the employees behaviour of the bank?Strongly agree Agree Disagree strongly disagree16 25 6 060
  • 61. 30 25 20 15 10 5 0 Strongly agree Agree Disagree strongly disagree Series1Interpretation:o o o o oTotal Number of Respondents was 47. 16 persons very satisfied with the employeebehaviour of the bank. 25 persons satisfied with the employee behaviour of the bank. 6 persons disagree with the employee behaviour of the bank. No one is disagree with the employee behaviour of the bank.12)Does the bank give any discount upon loan services?Yes No35 1261
  • 62. 40 35 30 25 20 15 10 5 0 Yes No Series1Interpretation:o o oTotal Number of Respondents was 47. 35 persons said that bank give discount upon loan services. Only 12 persons said that bank does not give any discount upon loan services.13)Are you satisfy by the time taken in sanctioning the loan?Yes No30 1762
  • 63. 35 30 25 20 Series1 15 10 5 0 Yes NoInterpretation:o o oTotal Number of Respondents was 47. 30 persons are satisfied by the time taken 17 persons are not satisfied by the time taken14)Have you face any difficulty during taking the loan?Yes No43 463
  • 64. 50 45 40 35 30 25 20 15 10 5 0 Yes No Series1Interpretation:o o oTotal Number of Respondents was 47. 43 persons face difficulty during taking the loan. Only 4 persons does not face any difficulty during taking the loan.15)Which grade you want to give of home loan schemes of the bank?Excellent Good Average below average18 20 8 125 20 15 Series1 10 5 0 Excellent Good Average below average64
  • 65. Interpretation:o o o o oTotal Number of Respondents was 47. 18 persons give excellent grade of the bank. 20 persons gove good grade to the bank. Only 8 persons give average grade to the bank. 1 person give below average grade to the bank.65
  • 66. CHAPTER 5 5.1 Section CONCLUSION:All the people are availing loan facility from both the banks. No. of respondents of SBI were 46 and 47 of SBI Bank. Peoples are relating with PNB more satisfywith the interest rate as compare to SBI. SBI peoples much know about home loans then PNB. Both PNB and SBI mostly offer mobile banking services. Processing ofSBI is fast then PNB. After home loan services of PNB is good as compare to SBI. Peoples related with SBI is more satisfy with the employee behaviour as compare to PNB.People are more satisfied by SBI for time taken for sanctioning the loan. From all this I conclude that SBI bank provide good home loan services as compare to PNB and many peoples are very satisfied from SBI.5.2 Section LIMITATIONSAlthough best of the efforts were made to conduct a prefect survey but still itfaces certain limitation. Following were certain limitation of this project. 1.The survey was conducted only on 100 respondents. 2.Some of the respondents did not answer all the questions, which could hamper the final results to a certain extent. 3.The study confines itself to the respondents of “NAWANSHAHAR” region only. Hence findings would not be relevant to other cities.66
  • 67. CHAPTER 6REFERENCES:•Craig, Ben R. and Thomson, James B.,Federal (August 2001). Home Loan Bank Lending to Community Banks: Are Targeted Subsidies Necessary? FRB of Cleveland Working Paper No. 01-12. Available at SSRN: http://ssrn.com/abstract=282410 or DOI: 10.2139/ssrn.282410•Singh, Fulbag and Sharma, Reema,(December 2006) Housing Finance in India: A Case Study of LIC Housing Finance Limited. ICFAI Journal of Financial Economics, Vol. 4, No. 4, pp. 63-74, December 2006. Available at SSRN: http://ssrn.com/abstract=959359•LaCour-Little, (May 18, 2007) Michael,Economic Factors Affecting Home Mortgage Disclosure Act. SSRN: http://ssrn.com/abstract=992815•Borde, Stephen F. May/June 1991 ,Is the Savings and Loan Industry Facing Extinction?The Secured Lender,Vol.47. SSRN:http://ssrn.com/abstract=151018•Rosner, Joshua (June 29, 2001).,Housing in the New Millennium: A Home Without Equity is Just a Rental with Debt,Available at SSRN: http://ssrn.com/abstract=1162456•Jacoby, Melissa B.( dec 2006) Home Ownership Risk Beyond a Subprime Crisis: TheRole of Delinquency Management. Fordham Law Review, Vol. 76, 2008; UNC Legal Studies Research Paper No. 1074442. Available at SSRN: http://ssrn.com/abstract=1074442•Moriizumi, Yoko,Current Wealth, (dec 1999) Housing Purchase and Private HousingLoan Demand in Japan. Journal of Real Estate Finance and67
  • 68. Economics, Vol. 21, Issue SSRN: http://ssrn.com/abstract=2378151.Availableat•http://ideas.repec.org/p/fip/fedcwp/9015.html•http://ideas.repec.org/p/fip/fedgfe/2004-27.html• •• ••• • • • •Hillebrand, Eric T. and Koray, Faik,Interest Rate Volatility and Home Mortgage Loans. Applied Economics, Forthcoming. Available at SSRN: http://ssrn.com/abstract=923358 Lin, Emily Y. and White, Michelle J. (November 2000),Bankruptcy and the Market for Mortgage and Home Improvement Loans. Michigan Law and Economics Research Paper No. 00-013. Available at SSRN: http://ssrn.com/abstract=252699 or DOI: 10.2139/ssrn.252699 Bernstein, David P. (October 14, 2008) ,Home Equity Loansand Private Mortgage Insurance: Recent Trends & Potential Implications. Available at SSRN: http://ssrn.com/abstract=1277353 LaCour-Little, Michael,The Home Purchase Mortgage Preferences of Lowand Moderate-Income Households. Real Estate Economics, Vol. 35, No. 3, pp. 265-290, Fall 2007. Available at SSRN: http://ssrn.com/abstract=1007862 or DOI: 10.1111/j.1540-6229.2007.00190.x Wheelock, David C(October 24, 2008)..,Government Response to Home Mortgage Distress: Lessons from the Great Depression.Federal Reserve Bank of St. Louis Working Paper No. 2008-038A. Available at SSRN: http://ssrn.com/abstract=1289440 Chiuri, Maria Concetta and Jappelli, Tullio, (March 2001) Financial Market Imperfections and Home Ownership: A Comparative Study. CEPR Discussion Paper No. 2717. Available at SSRN: http://ssrn.com/abstract=264399 Do, Chau and Paley, Irina,Explaining the Growth of Higher-Priced Loans in HMDA: A Decomposition Approach. Journal of Real Estate Research, Vol. 29, No. 4, 2007. Available at SSRN: http://ssrn.com/abstract=1030058LaCour-Little, Michael, Rosenblatt, Eric and Yao, Vincent W.(February 1, 2009).,Home Equity Extraction by Homeowners: 2000-2006. Journal of Real Estate Research, 2009. Available at SSRN: http://ssrn.com/abstract=1336049 Nini, Greg and Carey, Mark, (August 2004) Is the Corporate Loan Market Globally Integrated? A Pricing Puzzle. FRB International Finance Discussion Paper No. 813. Available at SSRN: http://ssrn.com/abstract=585742 Hendershott, Patric H. and Pryce, Gwilym B.J. (July 2005).,The Sensitivity of Homeowner Leverage to the Deductibility of Home Mortgage Interest.NBER Working Paper No. W11489. Available at SSRN: http://ssrn.com/abstract=76276868
  • 69. • •Courchane, Marsha, (November 1, 2007). The Pricing of Home Mortgage Loans to Minority Borrowers: How Much of the APR Differential Can We Explain? Available at SSRN: http://ssrn.com/abstract=1374872 Calem, Paul S. and Wachter, Susan M. (Nov1, 1999),Community Reinvestment and Credit Risk: Evidence from an Affordable Home Loan Program. Real Estate Economics, Vol. 27. Available at SSRN: http://ssrn.com/abstract=14536069
  • 70. CHAPTER 7QUESTIONNAIRE:Name____________ Qualification_________ Age 18-25 25-35 35-40 Above Gender_________ 16) What is your occupation? Business man House wife Other Government employee Student17)From how many years you are associated with this bank?1-5Less than 1 year More than 5 year3) How do you come to know about the home loan schemes of this bank? News paper Internet Television Other resources4) Are you aware of these type of home loans? Home purchase laon Home improvement loan Home equity loan Home construction loan Home extention loan Land purchase loan5) Are you aware all terms and conditions of home loans? Yes No6) Are you satisfy with the interest rate charges by your bank? Strongly agree Agree70
  • 71. Strongly disagreeDisagree7) Your bank offer which type of services ? Mobile banking Forex banking 8)Do you agree that your bank loan processing is fast? Strongly agree Strongly disagree Agree Disagree Net banking9) Do you satisfy with the after home loan services provided by your bank are best as compare to other bank? Strongly agree Strongly disagree Agree Disagree10) Does the cost of home loan is appropriate, according to your demand? Yes No11) Are you satisfy with the employees behaviour of the bank? Strongly agree Strongly disagree Agree Disagree12) Does the bank give any discount upon loan services? Yes No13) Are you satisfy by the time taken in sanctioning the loan? Yes No14) Have you face any difficulty during taking the loan? Yes NoIf yes then specify___________________________ 15) Which grade you want to giveof home loan schemes of your bank? Excellent Good71
  • 72. AverageBelow average16) Any suggestions that you want to give________________________________________________________________________________________________________72

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