TO FIND OUT THE FACTORS INFLUENCING
CUSTOMER SATISFACTION TOWARDS THE
SERVICES PROVIDED BY IBHFL

Research Report submitte...
DECLARATION
I hereby declare that the research entitled “TO FIND OUT THE
FACTORS

INFLUENCING

CUSTOMER

SATISFACTION

TOW...
Prof. Meghnathrao V. Belathur
Professor
Jain College
Bangalore

CERTIFICATE
I certify that this research entitled “TO FIND...
Contents
Page
No.
List of Tables
List of graphs

Chapter I

I
II

Introduction

1 – 17

1.1 Industry Profile
1.2 Home loan...
Chapter
IV

Data Analysis

41 – 58

4.1 Customer preferred for financial center
4.2 Profile of outline
4.3 Gendershared ou...
LIST OF TABLE
Sl. No.

Table No.

Title of table

1
2
3
4
5
6
7
8
9

4.1
4.2
4.3
4.4
4.5
4.6
4.7
4.8
4.9

10

4.10

Custom...
LIST OF GRAPH
Sl. No.

Table No.

Title of table

1
2
3
4
5
6
7
8
9
10
11
12

1.1
2.2
2.3
4.4
4.5
4.6
4.7
4.8
4.9
4.10
4.1...
EXECUTIVE SUMMARY
The primary goal of company would be to provide tailor made products and
services to the customer and to...
CHAPTER 1
INTRODUCTION

9
The chief importance this project is to know the about customer satisfaction and
factors influencing to chooseservices pro...
1.1 INDUSTRY PROFILE
1.1.1 NON-BANKING FINANCIAL COMPANIES (NBFC)

Non-banking financial companies are financial instituti...
NON-BANKING FINANCIAL INSTITUTION
A nonbank financial institution (NBFI) is interacts with banks and governments, a
financ...
remain constant, the insured overpays in the earlier stages and underpays in the
later years. The overpayment in the early...
The two main types of mutual funds are open-end and closed-end funds. Openend funds generate new investments by allowing t...
1.1.2 NBFC UNDER GOVERNMENT REGULATION

The working and operations of NBFCs are regulated by the Reserve Bank of
India (RB...
The registration process involves submission of an application by the company in
the prescribed format along with the nece...
1.1.3THE TYPES OF NBFCS REGISTERED WITH THE RBI

A. Equipment leasing company: - is any financial institution whose princi...
1.2 HOME LOAN
A home mortgage is one of the most common forms of debt, and it is also one of
the most advised. Mortgage lo...
1.3 INDUSTRY STRUCTURE
The Reserve Bank of India is entrusted with the responsibility of regulating and
supervising the No...
1.4 ROLE IN FINANCIAL SYSTEM
The Reserve Bank of India has recognized the need to introduce NBFIs
supplement banks in prov...
The micro-financing sector is just beginning to pick up pace and has a suitable
role for NBFCs. Role in deposit mobilizati...
1.5FUTURE PROSPECTS OF NBFC SECTOR

NBFCs have been playing a very important role both from the macro economic
Perspective...
NON-BANK INTEGRATION AND SUPERVISORY INTEGRATION

The banking, securities, and insurance markets have become increasingly
...
1.6 CUSTOMER SATISFACTION:

Customer satisfaction can help business to achieve a sustainable competitive
advantage. It abo...
1.7CUSTOMER SATISFACTION RESEARCH
Satisfaction surveys are an important method for collecting information about
how your c...
1.8 FACTORS INFLUENCING PERCEPTION
Perception is the process by which an individual selects, organizes, and
interprets inf...
CHAPTER 2
COMPANY PROFILE

27
COMPANYPROFILE
Indiabulls is an Indian company headquartered in Gurgaon, with its presence in
the Real Estate, Infrastruct...
2.2 GROWTH AND DEVELOPMENT OF THE COMPANY

2.2.1 TIMELINE
YEAR 2000-01
One of india’s first trading platforms was set up b...
YEAR 2006-07
The steel Tycoon Mr. L N Mittal promoted LNM India intimate Venture Ltd
acquired 8.2% stake in Indiabulls cre...
YEAR 2011-12
Credit rating upgraded to AA+.
PAT crosses Rs.1000 cr .
Balance sheet crosses Rs. 30,000 cr
RoE: 21.9%.

YEAR...
2.3 PRESENT STATUS OF COMPANY

The total planned capital expenditure of the Group by 2013-14 is Rs 35,000
Crore. Indiabull...
2.4 OWENERSHIP PATTERN

CHAIRMAN, INDIABULLS GROUP
Sameer Gehlaut

Sameer Gehlaut has been the chairman of Indiabulls Grou...
INDIABULLS HOUSING FINANCE LIMITED
MrGaganBanga
MrAshwini Kumar Hooda

-CEO
- DMD

INDIABULLS REAL ESTATE LIMITED
MrNarend...
2.5 BUSINESSES:

INDIABULLS GROUP

Indiabulls
Power

Indiabulls
Securities

INDIABULLS
GROUP

Indiabulls
Real
Estate

Indi...
2.5.1 INDIABULLS POWRE:

Indiabulls Power currently developing Thermal Power Projects with an aggregate
capacity of 5400 M...
2.5.3 INDIABULLS REAL ESTATE:

Indiabulls Real Estate is among India's top Real Estate companies with
development projects...
2.6 PRODUCT& SERVICES:
2.6.1 HOME LOANS:

At Indiabulls Housing Finance Limited, we support your dream of owning a home.
I...
2.6.3 LOAN AGAINST PROPERTY

Indiabulls Financial Services understands how difficult it is to choose between
your aspirati...
2.6.5 TRADING ACCOUNT:
An account similar to a traditional bank account, holding cash and securities, and
is administered ...
2.6.9 MORTGAGE:

A debt instrument that is secured by the collateral of specified real estate
property and that the borrow...
Total Assets
As at March 31, 2013

Rs. 39,128Cr. (US$ 7.25 bn)

As at March 31, 2012

Rs. 32,225 Cr. (US$ 5.97 bn)

GRAPH ...
40000
Total Loan Assets (Rs. Cr)
35000

Loan sold (In preceding 12
months)

30000
25000
20000
15000
10000
5000
0
Jan-11

J...
2.8 STRENGTHS OF IBHFL

2.8.1 HOME LOAN STRENGTHS

i.

In-house sourcing & collection teams.

ii.

Low average loan to val...
CHAPTER 3
RESEARCH METHODOLOGY

45
METHODOLOGY
3.1 STATEMENT OF PROBLEM:

The occasionof study was to interpret the scale of factors influencing customer
sat...
3.3 OBJECTIVES OF THE STUDY:

The following are the objectives of the study to solve the problem.
They are:

 To study ge...
3.4 RESEARCH METHODOLOGY:

Research methodology is a way to systematically solve the research problem. It
is step-by-step ...
MARKET RESEARCH:

Market research is the role which likes the consumers, customers & public the
marketer through informati...
3.5 DATA COLLECTION:

3.5.1 PRIMARY DATA AND SECONDARY DATA

Primary data: Primary data is the new or fresh data collected...
Basically any research work proceeds as:

Define The
Problem

Design The
Research

Design The Data
Collection Form

Specif...
3.5.2 QUESTIONNAIRE DESIGN:

Questionnaire Design is prepared on the basis of the following parameters.
Customers satisfac...
3.6 LIMITATION OF THE STUDY:

1. The time spent was limited due to which the exhaustive study could not be
conducted.
2. Q...
CHAPTER 4
DATA ANALYSIS

54
Table 4.1 Customer preferred for Financial Center

Responses

Percentage

SBI

18

36

HDFC

15

30

IIFL

4

8

PNB

5

1...
Table 4.2 Profile of Outline

Age

No. Of Respondents

Percentage

18-25

7

14

26-35

15

30

36-45

23

46

46&above

5...
Table 4.3 Gender shared out among a group

Gender

No. Of Respondents

Percentage

Male

42

84

Female

8

16

Total

50
...
Table 4.4 Customer awareness of regarding services

Decision

Responses

Percentages

Yes

37

74%

No

13

26%

Total

50...
Table 4.5 Customer preference on housing loan

Responses

Percentage

SBI

8

16

HDFC

16

32

LICHFL

5

10

IBHFL

21

...
Table 4.6 Customer perception on IBHFL

Decision

Responses

Percentages

S.Agree

23

36%

Agree

13

36%

Not decide

0
...
Table 4.7 Source of influence for the selection of IBHFL

Decision

Responses

Percentages

Friends

16

32%

Relatives

8...
Table 4.8 Regular customer to IBHFL

Decision

Responses

Percentages

Yes

23

46%

No

27

54%

Total

50

100%

46%
YES...
Table 4.9 Degree of customer safekeeping

Decision

Responses Percentages

Yes

38

76%

No

12

24%

Total

50

100%

24%...
Table 4.10 Company provides better services than other company

Decision

Responses Percentages

S.Agree

4

8%

Agree

19...
Table 4.11 Customer opinion onword of mouth connection

Decision

Responses

Percentages

S.Agree

13

26%

Agree

30

60%...
Table 4.12 Customer perception of interest rate of IBHFL

Decision

Responses

Percentages

S.Agree

18

36%

Agree

27

5...
Table 4.13 Customer expectation with respect to IBHFL market growth

Decision

Responses

Percentages

Yes

30

60%

No

2...
Table 4.14 Years of customer association in IBHFL

Decision

Responses Percentages
22

44%

13

26%

1 to 2 Years

11

22%...
Table 4.15 Customer perception of the market share of IBHFL

Decision

Responses

Percentages

S.Agree

10

20%

Agree

26...
Table 4.16 Type of Housing Loan the customers have taken

Type of Loans

No. of Respondents Percentage

Home purchase Loan...
CHAPTER 5
FINDINGS

71
5.1 FINDINGS
Based on the detailed data analysis following are the major findings of the study:
From the survey it is foun...
As found in research study 20 % have strongly agreed that IBHFL has
highest market share in south India while 52% have agr...
CHAPTER 6
CONCLUSION &
RECOMMENDATIONS

74
6.1 CONCLUSION
Indiabulls, the any breed of domestic cattle, within few years of its formation has
established itself as a...
6.2 Recommendations
This Project used to customer satisfaction and factors influencing to choose
services provided by the ...
It has been founded that most of the people 45%-50% regular customers
of IBHFL and remaining are not and as per the study ...
BIBLIOGRAPHY

78
BIBLIOGRAPHY
Books:
1. Kotler Philip, Marketing Management, 13th edition, Dorling Kindersley pvt.
Ltd.
2. Kothari C R, Res...
APPENDIX

80
Questionnaire is to find out the factors influencing customer
satisfaction towards the services provided by Indiabulls.

D...
A. SBI
B. PNB
C. HDFC
D. IBHFL
E. None

4. In your opinion, is IBHFL best company in Bangalore?
(a) Strongly agree

(b) Ag...
(a) Less than 6 months
(b) 6 to 12 months
(c) 1 to 2 years
(d) more than 2 years

9. You share the information with your f...
(a) YES

(b) NO

13. In your opinion IBHFL interest prices are low?
(a) Strongly agree
(b) Agree
(c) Disagree
(d) Strongly...
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TO FIND OUT THE FACTORS INFLUENCING CUSTOMER SATISFACTION TOWARDS THE SERVICES PROVIDED BY IBHFL

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The chief importance this project is to know the about customer satisfaction and factors influencing to choose services provided by the IBHFL. The foremost thing is the company and its unit profile. Were work that was being carried out simultaneously was to know the current policies and system regarding services.

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TO FIND OUT THE FACTORS INFLUENCING CUSTOMER SATISFACTION TOWARDS THE SERVICES PROVIDED BY IBHFL

  1. 1. TO FIND OUT THE FACTORS INFLUENCING CUSTOMER SATISFACTION TOWARDS THE SERVICES PROVIDED BY IBHFL Research Report submitted to Entrepreneurship Development Institute of India in partial fulfillment of the requirements for the award of Post Graduate Diploma in Business Management Submitted by Suraj Apagonda Patil Register No.: 12JJEPG1103 under the guidance of Prof. Meghnathrao V. Belathur Professor Jain College Bangalore Entrepreneurship Development Institute of India Ahmedabad 2013 1
  2. 2. DECLARATION I hereby declare that the research entitled “TO FIND OUT THE FACTORS INFLUENCING CUSTOMER SATISFACTION TOWARDS THE SERVICES PROVIDED BY IBHFL” submitted to Entrepreneurship Development Institute of India in partial fulfillment of the requirements for the award of PGDBM, is a record of independent research work carried out by me under the supervision and guidance of Prof. Meghnathrao V. Belathur, Professor, Jain College, Bangalore. This work has not formed the basis for the award of any Degree and has not been submitted previously to any other College/University. Bangalore NOVEMBER, 2013 Suraj Apagonda Patil Annexur 2
  3. 3. Prof. Meghnathrao V. Belathur Professor Jain College Bangalore CERTIFICATE I certify that this research entitled “TO FIND OUT THE FACTORS INFLUENCING CUSTOMER SATISFACTION TOWARDS THE SERVICES PROVIDED BY IBHFL” submitted to Entrepreneurship Development Institute of India in partial fulfillment of the requirements for the award of PGDBM, is a record of independent research work carried out by Mr. Suraj Apagonda Patil under my supervision and guidance. This work has not formed the basis for the award of any Degree and has not been submitted previously to any other College/University. Bangalore Prof. Meghnathrao V. Belathur NOVEMBER, 2013 Research Mentor INTRODUCTION 3
  4. 4. Contents Page No. List of Tables List of graphs Chapter I I II Introduction 1 – 17 1.1 Industry Profile 1.2 Home loan 1.3 Industry structure 1.4 Role in financial system 1.5 Future respective towards NBFC sector 1.6 Customer satisfaction 1.7 Customer satisfaction Research 1.8 Factors influencing perception Chapter II 2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 Origin of Organization Growth and development of company Present status of company Ownerships pattern Business Product and services Financial information Strength of IBHFL 2.8.1 Home loan strength 2.8.2 Corporate strength Chapter III 3.1 3.2 3.3 3.4 3.5 3.6 Company Profile18 - 34 Research Methodology35 - 42 Statement of the problem Scope of the study Objective of the study Research methodology Data collection Limitation of the study 4
  5. 5. Chapter IV Data Analysis 41 – 58 4.1 Customer preferred for financial center 4.2 Profile of outline 4.3 Gendershared out among a group 4.4 Customer awareness regarding IBHFL 4.5 Customer preference on housing loan 4.6 Customer perception on IBHFL 4.7 Source of influence for the selection of IBHFL 4.8 Regular customer to IBHFL 4.9 Degree of customer safekeeping 4.10 Company provides better services 4.11 Customer opinion on word of mouth connection 4.12 Customer perception of interest rate of IBHFL 4.13 Customer expectation 4.14 Years of customer association in IBHFL 4.15 Customer perception of the market share of IBHFL 4.16 Type of Housing Loan the customers have taken Chapter V Findings 58 – 59 5.1 Findings Chapter VI Conclusion & Recommendations 61 – 65 6.1 Conclusion 6.2 Recommendations Bibliography Appendices 5
  6. 6. LIST OF TABLE Sl. No. Table No. Title of table 1 2 3 4 5 6 7 8 9 4.1 4.2 4.3 4.4 4.5 4.6 4.7 4.8 4.9 10 4.10 Customer preferred for Financial Institution Profile of customer Gender shared out among a group Customer awareness respecting IBHFL Customer preference on housing loan Customer perception on IBHFL Source of influence for the selection of IBHFL Regular customer to IBHFL Degree of customer safekeeping Company provides better services 11 4.11 opinion on word of mouth connection 12 4.12 Customer perception of interest rate of IBHFL 13 4.13 Customer expectation 14 4.14 Years of customer association in IBHFL 15 4.15 Customer perception of the market share of IBHFL 16 4.16 Type of Housing Loan the customers have occupy 6
  7. 7. LIST OF GRAPH Sl. No. Table No. Title of table 1 2 3 4 5 6 7 8 9 10 11 12 1.1 2.2 2.3 4.4 4.5 4.6 4.7 4.8 4.9 4.10 4.11 4.12 13 4.13 Growth-mortgage penetration Balance sheet assets Loan book growth Customer preferred for Financial Institution Profile of customer Gender shared out among a group Customer awareness respecting IBHFL Customer preference on housing loan Customer perception on IBHFL Source of influence for the selection of IBHFL Regular customer to IBHFL Degree of customer safekeeping Company provides better services 14 4.14 opinion on word of mouth connection 15 4.15 Customer perception of interest rate of IBHFL 16 4.16 Customer expectation 17 4.17 Years of customer association in IBHFL 18 4.18 Customer perception of the market share of IBHFL 19 4.19 Type of Housing Loan the customers have occupy 7
  8. 8. EXECUTIVE SUMMARY The primary goal of company would be to provide tailor made products and services to the customer and to retain them into the organization by providing them with higher levels of satisfaction. But this becomes a though field work for the company. Here a study has been undertaken at IBHFL assessing the satisfaction levels of the clients of Indiabulls. The need for this research is to emphasis the expectation of clients of IBHFL and how the company is performing is contrast to the expectation and able to provide satisfaction. Every industry in India has grown over the last 10 years except this one, whatever retail participation exists is coming from bigger cities such as Mumbai and Delhi. The services have not reach bottom of pyramid. So, this study becomes even more important to help IBHFL know the satisfaction level of their customers. It will also help Indiabulls to focus on what aspects they lag behind so that they can provide better services to their customer and satisfy them were gathered the data from various departments like Marketing department, Finance & Accounts department, HR department etc. For understanding customer satisfaction level and their expectation a survey of 50 clients of Indiabulls is done using random sampling. The survey reveals that the overall customer satisfaction level is above average. The study concludes with some recommendation. 8
  9. 9. CHAPTER 1 INTRODUCTION 9
  10. 10. The chief importance this project is to know the about customer satisfaction and factors influencing to chooseservices provided by the IBHFL. The foremost thing is the company and its unit profile. Were work that was being carried out simultaneously was to know the current policies and system regarding services. The main objectives of this report are: To study general profile of the customers. To identify major factor influencing customer satisfaction for Indiabulls services. To know the how fair practices set by IBHFL in dealing with services. 10
  11. 11. 1.1 INDUSTRY PROFILE 1.1.1 NON-BANKING FINANCIAL COMPANIES (NBFC) Non-banking financial companies are financial institutions that provide banking services, but do not hold a banking license. These institutions are not allowed to take deposits from the public. All operations of these institutions are still covered under banking regulations. NBFCs do gather all sorts of banking services, such as loans and credit facilities, retirement planning, money markets, and merger activities. The number of NBFS’s has expanded greatly in the last several years as venture capital companies, retail and industrial companies have entered the lending business. NBFC have rapidly emerged as an important segment of the Indian financial system. Moreover, NBFCs assume significance in the small business segment as they primarily cater to the credit requirements of the unorganized sector such as wholesale & retail traders, small-scale industries and small borrowers at the local level. NBFC is a heterogeneous group of financial institutions, performing a wide range of activities like hire-purchase finance, vehicle financing, equipment lease finance, personal loans, working capital loans, consumer loans, housing loans, loans against shares and investment, etc. NBFCs are broadly divided into three categories namely (i) NBFCs accepting deposits from banks (NBFC-D) (ii) NBFCs not accepting/holding public deposits (NBFC-ND) (iii) Core investment companies 11
  12. 12. NON-BANKING FINANCIAL INSTITUTION A nonbank financial institution (NBFI) is interacts with banks and governments, a financial institution that does not have a full banking license and cannot accept deposits from the public. However, NBFIs do facilitate alternative financial services, such as investment risk pooling, financial consulting, brokering, money transmission, and check cashing. NBFIs are a source of consumer credit (along with licensed banks). Examples of nonbank financial institutions include insurance firms, venture capitalists, currency exchanges, some microloan organizations, and pawn shops. These non-bank financial institutions provide services that are not necessarily suited to banks, serve as competition to banks, and specialize in sectors or groups. Risk pooling institutions Insurance companies underwrite economic risks associated with death, illness, damage to or loss of property, and other risk of loss. Under this system, insurance companies come together to form a pool, which can provide protection to insurance companies against catastrophic risks such as floods, earthquakes etc. They provide a contingent promise of economic protection in the case of loss. There are two main types of insurance companies: life insurance and general insurance. General insurance tends to be short-term, while life insurance is a longer contract, ending at the death of the insured. Both types of insurance, life and property, are available to all sectors of the community. Because of the nature of the insurance industry (companies must access a plethora of information to assess the risk in each individual case), insurance companies enjoy a high level of information efficiency. Life insurance companies insure against economic loss of the insured’s premature death. The insured will pay a fixed sum as an insurance premium every term. Because the probability of death increases with age while premiums 12
  13. 13. remain constant, the insured overpays in the earlier stages and underpays in the later years. The overpayment in the early years of the agreement is the cash value of the insurance policy. General insurance is further divided into two categories: market and social insurance. Social insurance is against the risk of loss of income due to sudden unemployment, disability, illness, and natural disasters. Because of the unpredictability of these risks, the ease at which the insured can hide pertinent information from the insurer, and the presence of moral hazard, private insurance companies frequently do not provide social insurance, a gap in the insurance industry which government usually fills. Social insurance is more prevalent in industrialized Western societies where family networks and other organic social support groups are not as prevalent. Market insurance is privatized insurance for damage or loss of property. General insurance companies take a single premium payment. In return, the companies will make a specified payment contingent on the event that it is being insured against. Examples include theft, fire, damage, natural disaster, etc. Contractual savings institutions Contractual savings institutions provide the opportunity for individuals to invest in collective investment vehicles in a fiduciary rather than a principle role.Contractual savings institutions include national provident funds, life insurance companies, private pension funds, and funded social pension insurance systems. They have long-term liabilities and stable cash flows and are therefore ideal providers of term finance, not only to government and industry, but also to municipal authorities and the housing sector. The two most popular examples of contractual savings institutions are mutual funds and private pension plans. 13
  14. 14. The two main types of mutual funds are open-end and closed-end funds. Openend funds generate new investments by allowing the public buy new shares at any time. Shareholders can liquidate their shares by selling them back to the open-end fund at the net asset value. Closed-end funds issue a fixed number of shares in an IPO. The shareholders capitalize on the value of their assets by selling their shares in a stock exchange. Pension funds are mutual funds that limit the investor’s ability to access their investment until after a certain date. In return, pension funds are granted large tax breaks in order to incentivize the working public to set aside a percentage of their current income for a later date when they are no longer amongst labour. GRAPH 1.1 Lower mortgage penetration compared to advanced and emerging economies implies hugeopportunity forgrowth. •Mortgage to GDP Ratio expected to improve to 12% by FY15, supported by •Increasing Urbanization •Improved Affordability 14
  15. 15. 1.1.2 NBFC UNDER GOVERNMENT REGULATION The working and operations of NBFCs are regulated by the Reserve Bank of India (RBI)within the framework of the Reserve Bank of India Act, 1934 (Chapter III B) and the directions issued by it under the Act. As per the RBI Act, a 'nonbanking financial company' is defined as:1. A financial institution which is a company. 2. A non-banking institution which is a company and which has as its principal business the receiving of deposits, under any scheme or arrangement or in any other manner, or lending in any manner. 3. Such other non-banking institution or class of such institutions, as the bank may, with the previous approval of the Central Government and by notification in the Official Gazette, specify. Under the Act, it is mandatory for a NBFC to get itself registered with the RBI as a deposit taking company. This registration authorizes it to conduct its business as an NBFC. For the registration with the RBI, a company incorporated under the Companies Act, 1956 and desirous of commencing business of non-banking financial institution, should have a minimum net owned fund (NOF) of Rs 25 lakh (raised to Rs 200 lakh w.e.f April 21, 1999). The term 'NOF' means, owned funds (paid-up capital and free reserves, minus accumulated losses, deferred revenue expenditure and other intangible assets) less, (i) investments in shares of subsidiaries/companies in the same group/ all other NBFCs; and (ii) the book value of debentures/bonds/ outstanding loans and advances, including hirepurchase and lease finance made to, and deposits with, subsidiaries/ companies in the same group, in excess of 10% of the owned funds. 15
  16. 16. The registration process involves submission of an application by the company in the prescribed format along with the necessary documents for RBI's consideration. If the bank is satisfied that the conditions enumerated in the RBI Act, 1934 are fulfilled, it issues a 'Certificate of Registration' to the company. Only those NBFCs holding a valid Certificate of Registration can accept/hold public deposits. The NBFCs accepting public deposits should comply with the NonBanking Financial Companies Acceptance of Public Deposits (Reserve Bank) Directions, 1998, as issued by the bank. Some of the important regulations relating to acceptance of deposits by the NBFCs are:- They are allowed to accept/renew public deposits for a minimum period of 12 months and maximum period of 60 months. They cannot accept deposits repayable on demand. They cannot offer interest rates higher than the ceiling rate prescribed by RBI from time to time. They cannot offer gifts/incentives or any other additional benefit to the depositors. They should have minimum investment grade credit rating. Their deposits are not insured. The repayment of deposits by NBFCs is not guaranteed by RBI. 16
  17. 17. 1.1.3THE TYPES OF NBFCS REGISTERED WITH THE RBI A. Equipment leasing company: - is any financial institution whose principal business is that of leasing equipment’s or financing of such an activity. B. Hire-purchase Company: - is any financial intermediary whose principal business relates to hire purchase transactions or financing of such transactions. C. Loan company:- means any financial institution whose principal business is that of providing finance, whether by making loans or advances or otherwise for any activity other than its own. D. Investment Company: - is any financial intermediary whose principal business is that of buying and selling of securities. Now, these NBFCs have been reclassified into three categories: Asset Finance Company (AFC) Investment Company (IC) Loan Company (LC) Under this classification, 'AFC' is defined as a financial institution whose principal business is that of financing the physical assets which support various productive/economic activities in the country. 17
  18. 18. 1.2 HOME LOAN A home mortgage is one of the most common forms of debt, and it is also one of the most advised. Mortgage loans come with lower interest rates than almost any other kind of debt an individual consumer can find. Real estate is currently one of the fastest growing sectors in India. Banking sector is also registering profitable business since the last few decades, with the growth of real estate. Majority of the banks are also offering easy home loans at attractive rates to their customers. Now that getting a home loan is so easy, it seems everyone can fulfill his / her long cherished dreams of purchasing lands, building their houses and expanding their homes. Different types of home loans are tailored to suit the heterogeneous requirements of the customers. The description of some of the most common types of home loans is given below. Types Of Home Loans Home Purchase Loans. Home Improvement Loans Home Construction Loan Home Extension Loans. Home Conversion Loan Land Purchase Loans Bridge Loans Balance Transfer Loans 18
  19. 19. 1.3 INDUSTRY STRUCTURE The Reserve Bank of India is entrusted with the responsibility of regulating and supervising the Non-Banking Financial Companies by virtue of powers vested in Chapter III B of the Reserve Bank of India Act, 1934. The regulatory and supervisory objective is to: 1. Ensure healthy growth of the financial companies; 2. Ensure that these companies function as a part of the financial system within the policy framework, in such a manner that their existence and functioning do not lead to systemic aberrations; and that 3. The quality of surveillance and supervision exercised by the Bank over the NBFCs is sustained by keeping pace with the developments that take place in this sector of the financial system. 19
  20. 20. 1.4 ROLE IN FINANCIAL SYSTEM The Reserve Bank of India has recognized the need to introduce NBFIs supplement banks in providing financial services to individuals and firms. They can provide competition for banks in the provision of these services. While banks may offer a set of financial services as a package deal, NBFIs unbundle these services, tailoring their services to particular groups. Additionally, individual NBFIs may specialize in a particular sector, gaining an informational advantage. By this unbundling, targeting, and specializing, NBFIs promote competition within the financial services industry. There are different categories of companies 1. Loan companies 2. Investment companies 3. Hire purchase finance companies 4. Equipment Leasing companies 5. Mutual Benefit Financial Companies 6. Housing Finance Company 7. Residuary Non-Banking companies Non-bank financial institutions can exacerbate the fragility of the financial system. While not all NBFIs are lightly regulated, the NBFIs that comprise the shadow banking system are. In the run up to the recent global financial crisis, institutions such as hedge funds and structured investment vehicles were largely overlooked by regulators, who focused NBFI supervision on pension funds and insurance companies. If a large share of the financial system is in NBFIs that operate largely unsupervised by government regulators and anybody else, it can put the stability of the entire system at risk. Weaknesses in NBFI regulation can fuel a credit bubble and asset overpricing, followed by asset price collapse and loan defaults. 20
  21. 21. The micro-financing sector is just beginning to pick up pace and has a suitable role for NBFCs. Role in deposit mobilization and credit extension can hardly be over-emphasized. Given India's large unorganized markets, there is a huge demand for unsecured credit in areas where banks do not have adequate reach. NBFCs fill this gap. Specializing in funding sectors where there is a credit gap. In the past decade, NBFCs have played an important role in the expansion of the consumer durables, housing and transport sectors. The industry is now witnessing a paradigm shift, as competition is eating into the retail finance space, which has been traditionally dominated by NBFCs. As the traditional boundaries between different financial intermediaries blur, market participants are merging to increase their size and reach, while distributing risk over the large base in an attempt to survive. 21
  22. 22. 1.5FUTURE PROSPECTS OF NBFC SECTOR NBFCs have been playing a very important role both from the macro economic Perspective and the structure of the Indian financial system. NBFCs are the perfect or even better alternatives to the conventional Banks for meeting various financial requirements of a business enterprise. They offer quick and efficient services without making one to go through the complex rigmarole of conventional banking formalities. However to survive and to constantly grow, NBFCs have to focus on their core strengths. while improving on weaknesses. They will have to be very dynamic and constantly. Endeavor to search for new products and services in order to survive in this ever competitive financial market. Since NBFCs have been kept outside the purview of SARFAESI Act, a reform in this area is quite urgently needed. A suitable legislative amendment extending the operation of the said Act to NBFCs too would go a long way in fortifying the faith of the investors and which in turn would greatly contribute to the growth of this Sector. The coming years will be very crucial for NBFCs and only those who will be able to face the challenge and prove themselves by standing the test of time will survive in the long run. 22
  23. 23. NON-BANK INTEGRATION AND SUPERVISORY INTEGRATION The banking, securities, and insurance markets have become increasingly integrated, with linkages across the markets rapidly increasing. In response, one of the most notable developments in financial sector regulation in the past 20 years has been a shift from the traditional sector-by-sector approach to supervision (with separate supervisors for banks, securities markets, and insurance companies) toward a greater cross-sector integration of financial supervision. This had an important impact on the practice of supervision and regulation around the globe. Three broad models are being used around the world: a three-pillar or “sectoral” model (banking, insurance, and securities); a two-pillar or “twin peak” model (prudential and business conduct); and an integrated model (all types of supervision under one roof). One of the arguably most remarkable developments of the past 10 years, confirmed by the World Bank’s Bank Regulation and Supervision Survey, has been a trend from the three-pillar model toward either the two-pillar model or the integrated model. In a recent study, Melecky and Podpiera (2012) examined the drivers of supervisory structures for prudential and business conduct supervision over the past decade in 98 countries, finding among other things that countries advancing to a higher stage of economic development tend to integrate their supervisory structures, small open economies tend to opt for more integrated supervisory structures, financial deepening makes countries integrate supervision progressively more, and the lobbying power of the concentrated and highly profitable banking sector acts as a negative force against business conduct integration 23
  24. 24. 1.6 CUSTOMER SATISFACTION: Customer satisfaction can help business to achieve a sustainable competitive advantage. It about understands the way a customer feels after purchasing a product or service and, in particular, whether or not that product or service met the customer’s expectations. Customers primarily form their expectations through past purchasing experiences, word-of-mouth from family, friends and colleagues and information delivered through marketing activities, such as advertising or public relations. If the customer’s expectation isn’t met, they will be dissatisfied and it’s very likely they will tell others about their experience. WHY CUSTOMER SATISFACTION IS IMPORTANT Don’t underestimate the value of customer satisfaction. It’s becoming an important area of competition. A high level of satisfaction can deliver many benefits, including: Loyalty: a highly satisfied customer is a loyal customer. Repeat purchase: a highly satisfied customer buys more products. Referrals: a highly satisfied customer tells their family and friends about the product or service. Retention: a highly satisfied customer is less likely to switch brands. Reduced costs: a highly satisfied customer costs less to serve than a new customer. Premium prices: a highly satisfied customer is willing to pay more for the product or service. 24
  25. 25. 1.7CUSTOMER SATISFACTION RESEARCH Satisfaction surveys are an important method for collecting information about how your customers think and feel about your brand, product or service. A satisfaction survey can help you to understand the expectations of your customers, determine whether your customers believe you are meeting those expectations, identify new customer requirements or trends in the market and determine what areas of your business need investment. A good customer satisfaction survey will also help you to understand the causes of dissatisfaction among your customers. Many businesses systematically measure customer satisfaction through independent surveys, feedback forms, mystery shopping and focus groups. Some third party surveys also compare the customer satisfaction of major competitors, which allows companies to benchmark themselves in their relevant sector. Measuring customer satisfaction doesn’t have to be expensive. It can be as simple as preparing a short feedback form or conducting a brief telephone interview that asks the customer to rate the product or service on a number of criteria. INDICATORS OF CUSTOMER SATISFACTION An important indicator of customer satisfaction is the customer retention rate. To calculate our customer retention rate, we have needed to capture data about the total number of customers and the number of customers switching brands. If we can track this information over time, will be able to see whether you are improving your customer retention and satisfaction. 25
  26. 26. 1.8 FACTORS INFLUENCING PERCEPTION Perception is the process by which an individual selects, organizes, and interprets information inputs to create a meaningful picture the world. Perception depends not only on the physical stimuli, but also on the stimuli’s relation to the surrounding field and on conditions within the individual. The key point is that perception can vary widely among individuals exposed to the same reality. One person might perceive a fast-talking salesperson an aggressive and insincere another, as intelligent and helpful. Factors that influence perception: Factors in the perceiver Attitudes Motives Interests Experience Expectations Factors in the situation Time Work setting Social setting Factors in the target Motion Size Background Proximity Similarity 26
  27. 27. CHAPTER 2 COMPANY PROFILE 27
  28. 28. COMPANYPROFILE Indiabulls is an Indian company headquartered in Gurgaon, with its presence in the Real Estate, Infrastructure, Financial Services, Securities, Retail, Multiplex and Power sectors. Started functioning in the stock market in 2000. Over the years, the company has grown from strength to strength to become a major player in India’s financial services sector. Today Indiabulls securities limited is leading the industry as they listed NSE, BSE, and Luxembourg stock exchange. They located offices in major cities and placed highly expert man them. 2.1 ORIGIN OF ORGANIZATION In middle of 1999, Mr. Sameer Gehlaut and his close IIT Delhi friend Mr. Rajiv Rattan bought a defunct securities company with a NSE membership and started offering brokerage services later joined by their friend Mr.Saurabh Mittal. In December 1999, the company built one of the first online platforms in India for offering internet brokerage services. Indiabulls Financial Services received venture capital funding from Mr. Lakshmi Mittal & Mr. Harish Fabian. Indiabulls Group is one of the country's leading business houses with business interests in Power, Financial Services, Real Estate and Infrastructure. 28
  29. 29. 2.2 GROWTH AND DEVELOPMENT OF THE COMPANY 2.2.1 TIMELINE YEAR 2000-01 One of india’s first trading platforms was set up by Indiabulls financial services Ltd. With the development of an in house team. YEAR 2001-02 The service offered by Indiabulls was increased to include Equity, wholesale debt, Mutual fund, IPO Financing and Equity Research. YEAR 2002-2003 In this particular year Indiabulls ventured into Distribution and commodities trading business. YEAR 2004-05 Indiabulls came with its initial IPO in September 2004. Indiabulls started its consumer finance business. Indiabulls entered the indian real estate market and become the first company to bring FDI in indian Real Estate. YEAR 2005-06 Multi-product lending. Become market leader in securities brokerage industry, with around 31% share online trading. The world’s largest hedge fund, Farallon capital and its affiliates committed 2000 million for Indiabulls. 29
  30. 30. YEAR 2006-07 The steel Tycoon Mr. L N Mittal promoted LNM India intimate Venture Ltd acquired 8.2% stake in Indiabulls credit service Ltd. YEAR 2007-08 Credit rating of AALoan book crosses Rs.10,000 cr. Exit from unsecured personal and business loans YEAR 2008-09 Mortgage finance focused growth plan. Home loans to prime salaried segments In house sales team ramp up to over 1000 employees YEAR 2010-11 Credit rating upgraded to AA. Retail mortgage constitutes 70% of loan book. Balance sheet crosses Rs. 20,000 cr. RoE: 17.2%Indiabulls Housing Finance is bestowed with prestigious awards “People’s Choice Award for Most Preferred Brand in Housing Finance” & “The best Customer service” at MCHI PROPERTY 2011 30
  31. 31. YEAR 2011-12 Credit rating upgraded to AA+. PAT crosses Rs.1000 cr . Balance sheet crosses Rs. 30,000 cr RoE: 21.9%. YEAR 2012-13 Conversion to HFC India’s 3rd largest HFC by loan assets PAT Rs.1266 cr. Balance sheet: Rs. 39,128 cr. RoE: 25.6% 31
  32. 32. 2.3 PRESENT STATUS OF COMPANY The total planned capital expenditure of the Group by 2013-14 is Rs 35,000 Crore. Indiabulls Power is currently developing Thermal Power Projects with an aggregate capacity of 5400 MW. Business Summary • Loans Outstanding:Rs. 34,425 Cr (March 31, 2013) : (US$ 6.38 bn) • Loan Book CAGR (5 years) : 26% • Cumulative Loans given to retail Customers : 5.49 Lakh • Cumulative Loans Disbursed till date :Rs. 71,000 Cr (US$ 13.15 bn) • Cost to Income Ratio (FY 2013) : 18.0% • Profit After Tax CAGR (5 years) : 19% 32
  33. 33. 2.4 OWENERSHIP PATTERN CHAIRMAN, INDIABULLS GROUP Sameer Gehlaut Sameer Gehlaut has been the chairman of Indiabulls Group since inception. He is also the chairman of major Indiabulls companies: Indiabulls Power, Indiabulls Housing Finance & Indiabulls Real Estate. Under his leadership, Indiabulls Group has grown in scale and size to a business house with strong businesses in various sectors. MrGehlaut started Indiabulls Group after working briefly with Halliburton before returning to India. MrGehlaut received a B.Tech degree in Mechanical Engineering from Indian Institute of Technology, Delhi. INDIABULLS GROUP Mr Rajiv Rattan - Vice Chairman MrSaurabh Mittal - Vice Chairman Mr Ashok Kacker - Group President Mr Ashok Sharma - Group CFO MrAjit Mittal - Group Director MrGurbans Singh - Group Director MrTejinderpal Singh Miglani - Group CIO 33
  34. 34. INDIABULLS HOUSING FINANCE LIMITED MrGaganBanga MrAshwini Kumar Hooda -CEO - DMD INDIABULLS REAL ESTATE LIMITED MrNarendraGehlaut - MD INDIABULLS POWER LIMITED MrRajendra Kumar Sugandhi - CEO MrMehul Johnson - President INDIABULLS SECURITIES LIMITED MrDivyesh Shah - CEO Mr Vijay Babbar - DMD 34
  35. 35. 2.5 BUSINESSES: INDIABULLS GROUP Indiabulls Power Indiabulls Securities INDIABULLS GROUP Indiabulls Real Estate Indiabulls Housing Finance Ltd Indiabulls Housing Finance Ltd. (IBHFL), wholly owned subsidiary of Indiabulls Financial Services Ltd. (IBFSL), is a registered HFC by National Housing Bank (NHB). Incorporated in May 2005, IBHFL is a young and an enterprising new generation Housing Finance Company which has in these short span of years already spread its presence through 78 branches in 57 cities across the country. Today, Indiabulls Group has a net worth of Rs 19,320 Crore& has a strong presence in important sectors like financial services, power & real estate through independently listed companies and Indiabulls Group continues its journey of building businesses with strong cash flows. 35
  36. 36. 2.5.1 INDIABULLS POWRE: Indiabulls Power currently developing Thermal Power Projects with an aggregate capacity of 5400 MW.The first unit is expected to go on stream in Dec 2012. The net worth of Indiabulls Power is Rs 5,507 Crore. The company has a total capital expenditure of Rs 27,500 Crore. The company has been assigned 'BBB' rating. 2.5.2 INDIABULLS HOUSING FINANCE LTD. (IBHFL): Indiabulls Housing Finance Ltd. (IBHFL) is India’s 3rd largest Housing Finance Company (HFC). The company is registered as a Housing Finance Company (HFC) and is regulated by the National Housing Bank (NHB). IBHFL is a leading provider of home loans, loan against properties and commercial vehicle loans. The company has a loan asset book of over Rs. 34,400 Cr and has, since inception, disbursed over Rs. 71,000 Cr to over 5.5 lakh customers. With a net worth of over Rs. 5,300 Cr, IHFL is one of the best capitalized companies amongst its peer with a CRAR of 18.47% as at March 31st, 2013. Further, the company is one of the least levered amongst its peer set with a net debt-to-equity ratio of only 4.67. The company enjoys a credit rating of AA+. IBHFL has 200 well-appointed and customer accessible walk-in branches spread across the country. Company’s national and International reach is further enhanced from tie-ups with Yes Bank and Doha Bank. 36
  37. 37. 2.5.3 INDIABULLS REAL ESTATE: Indiabulls Real Estate is among India's top Real Estate companies with development projects spread across residential complexes, integrated townships, commercial office complexes, hotels, malls, Special Economic Zones (SEZs) and infrastructure development. Indiabulls Real Estate partnered with Farallon Capital Management LLC of USA to bring the first FDI into real estate in the country. The company has a net worth of Rs 7,403 Crore and has purchased prime land, mostly in the metros and other Tier 1 cities worth Rs 4,000 Crore in government auctions alone. Indiabulls Real Estate is currently developing 72.86 million sqft into premium quality, high-end commercial, residential and retail spaces. The company has been assigned 'A+' rating. 2.5.4 INDIABULLS SECURITIES: Indiabulls Securities is one of India's leading capital markets companies providing securities broking and advisory services. Indiabulls Securities also provides depository services, equity research services and IPO distribution to its clients and offers commodities trading through a separate company. These services are provided both through on-line and off-line distribution channels. Indiabulls Securities is a pioneer of on-line securities trading in India. Indiabulls Securities’ in-house trading platform is one of the fastest and most efficient trading platforms in the country. Indiabulls Securities has been assigned the highest rating BQ-1 by CRISIL. 37
  38. 38. 2.6 PRODUCT& SERVICES: 2.6.1 HOME LOANS: At Indiabulls Housing Finance Limited, we support your dream of owning a home. It becomes your partners while you lay the foundation of your dream home. It assists you at every step and ensures that buying your perfect home is a happy and memorable experience. While owning a house is cherished dream and an achievement, buying a home requires long-term planning, large investment and responsibility. Indiabulls helps you achieve your dream by providing the best-in-class financial help and services. While you take this momentous decision, we guide towards everything that is best for you. As we understand your dreams and goals, we ensure that you receive a safe and secure home loan scheme. Our teams are attentive, careful and always receptive to your needs and feedback. Along with the best rates and schemes from us, multiple incentives of acquiring a home loan make your dream home a happy reality. 2.6.2 COMMERCIAL VEHICLES LOAN: Indiabulls Commercial Vehicle Loans offers commercial loans to a wide variety of business owners. Through simple documentation, we provide easy loans to first time buyers and fleet operators. We offer quick and easy loans to small and medium operators which help them in acquiring vehicles with minimum hassles and documentation.We support our easy to understand finance schemes with quick completion of transactions to help you proceed with your plans swiftly. At every step, we assure you a quick, transparent and hassle-free deal. 38
  39. 39. 2.6.3 LOAN AGAINST PROPERTY Indiabulls Financial Services understands how difficult it is to choose between your aspirations to become successful entrepreneur & your personal priorities. Indiabulls Loan against Property will take care of your financial needs while you can concentrate on your business plan. Indiabulls Loan against Property will guide you to understand the hidden value of your residential or commercial property so that your small or medium sized enterprise need not feel the crunch of working capital. Indiabulls Loan against Property can also help you to fund your other working capital needs such as business expansion. This loan can be as high as 65% of the market value of your property and is available to Small to mid-sized businesses, Partnership firms and Private Ltd or closely held companies. 2.6.4 DEMAT ACCOUNT: The term "Demat", inIndia refers to a dematerialized account for individual Indian citizens to trade in listed stocks or debentures in electronic form rather than paper, as required forinvestors by the Securities and Exchange Board of India (SEBI). In ademat account,shares and securities are held electronically instead of the investor taking physical possession of certificates. A demat account is opened by the investor while registering with aninvestment broker (or subbroker). The demat account number is quoted for all transactions to enable electronic settlements of trades to take place. Access to the demat account requires aninternet password and a transaction password. Transfers or purchases of securities can then be initiated. Purchases and sales of securities on the demat account are automatically made once transactions are confirmed and completed. 39
  40. 40. 2.6.5 TRADING ACCOUNT: An account similar to a traditional bank account, holding cash and securities, and is administered by an investment dealer. An account held at a financial institution and administered by an investment dealer that the account holder uses to employ a trading strategy rather than a buy-and-hold investment strategy. 2.6.6 DERIVATIVE: A security whose price is dependent upon or derived from one or more underlying assets the derivative itself is merely a contract between two or more parties. Its value is determined by fluctuations in the underlying asset. The most common underlying assets include stocks, bonds, commodities, currencies, interest rates and market indexes. Most derivatives are characterized by high leverage. 2.6.7 COMMODITY TRADING: An individual or a firm, registered with the Commodity Futures Trading Commission that receives compensation for giving people advice on options, futures and the actual trading of managed futures accounts. Registration for CTAs is done through the National Futures Association, a self-regulated organization responsible for reviewing and accepting registration 2.6.8 INITIAL PUBLIC OFFERING– IPO: The first sale of stock by a private company to the public. IPOs are often issued by smaller, younger companies seeking the capital to expand, but can also be done by large privately owned companies looking to become publicly traded. In an IPO, the issuer obtains the assistance of an underwriting firm, which helps it determine what type of security to issue (common or preferred), the best offering price and the time to bring it to market. 40
  41. 41. 2.6.9 MORTGAGE: A debt instrument that is secured by the collateral of specified real estate property and that the borrower is obliged to pay back with a predetermined set of payments. Mortgages are used by individuals and businesses to make large purchases of real estate without paying the entire value of the purchase up front. Mortgages are also known as "liens against property" or "claims on property." 2.6.10 INSURANCE: Insuranceis a form ofrisk management primarily used tohedge against therisk of a contingent,uncertain loss. Insurance is defined as the equitable transfer of the risk of a loss, from one entity to another, in exchange for payment. An insurer, or insurance carrier, is a company selling the insurance; the insured, or policyholder, is the person or entity buying the insurance policy. The amount to be charged for a certain amount of insurance coverage is called the premium.Risk management the practice ofappraising and controlling risk, has evolved as a discrete field of study and practice. The transaction involves the insured assuming a guaranteed and known relatively small loss in the form of payment to the insurer in exchange for the insurer's promise to compensate (indemnify) the insured in the case of a financial (personal) loss. The insured receives acontract, called theinsurance policy, which details the conditions and circumstances under which the insured will be financially compensated. 2.7 FINANCIAL INFORAMATION 2.7.1BALANCE SHEET ASSETS 41
  42. 42. Total Assets As at March 31, 2013 Rs. 39,128Cr. (US$ 7.25 bn) As at March 31, 2012 Rs. 32,225 Cr. (US$ 5.97 bn) GRAPH 2.1 BALANCE SHEET ASSETS 18% 3% Loan Book Cash and liqued Investments 79% Other Assets * Cash, Cash Equivalents and Investments in Liquid Debt InstrumentsUS $ amounts are converted based on the exchange rate of US $1 = Rs. 5479% 2.7.2 LOAN BOOK GROWTH GRAPH 2.2 42
  43. 43. 40000 Total Loan Assets (Rs. Cr) 35000 Loan sold (In preceding 12 months) 30000 25000 20000 15000 10000 5000 0 Jan-11 Jan-12 Jan-13 The growth in the loan book inclusive of loans sold in the previous 12 months is 25% Loans amounting to Rs.2,397.4 were sold during they earended Mar31, 2012 Loanssold (outstanding): Rs. 3,642.6Cr.–on which spread at 3.1 % p.a. is to be earned over the life of the loan. 43
  44. 44. 2.8 STRENGTHS OF IBHFL 2.8.1 HOME LOAN STRENGTHS i. In-house sourcing & collection teams. ii. Low average loan to value ratios iii. Emphasis on borrower cash flow stability during loan appraisal iv. Experienced underwriting team -company has cumulatively disbursed over Rs. 70,000 Cr since FY06 2.8.2 CORPORATE STRENGTHS i. Stable and experienced management team ii. Technology driven quality customer service iii. Headroom to grow: CRAR: 18.5%; Net gearing: 4.67 iv. Steady book growth over last 15 quarters v. Declining cost to income ratio: 18.0% (for FY13) vi. Tailor made products vii. Strong sales and marketing team. 44
  45. 45. CHAPTER 3 RESEARCH METHODOLOGY 45
  46. 46. METHODOLOGY 3.1 STATEMENT OF PROBLEM: The occasionof study was to interpret the scale of factors influencing customer satisfaction towards the services.and understanding the customersbeliefregarding the products and services of Indiabulls and the company’s performance of the same. The objective of every company would be ensuring customer satisfaction for the would create loyal customers. Measuring customer satisfaction is always a challenge, as customer either would not disclose or sometimes do not assess their satisfaction level clearly. Many times the customer can not specify the reasons for his satisfaction. 3.2 SCOPE OF THE STUDY: The scope of the study is to find out the factors influencing customer satisfaction towards the services with reference to Home loans. The study covers the different faceof customer satisfaction. Data have been collected from customer by a personal interview through questionnaire. 46
  47. 47. 3.3 OBJECTIVES OF THE STUDY: The following are the objectives of the study to solve the problem. They are:  To study general profile of the customers.  To identify major factor influencing customer satisfaction for Indiabulls services.  To know major factors for shape policy on customer’s satisfaction for IBHFL products and services. 47
  48. 48. 3.4 RESEARCH METHODOLOGY: Research methodology is a way to systematically solve the research problem. It is step-by-step methods are order to solve a particular problem.It can also be defined as a scientific and systematic search for pertinent information on a specific topic. It refers to a search for knowledge In fact, research is an art of scientific investigation. The methodology may include publication research, interviews, surveys and other research techniques, and could include both present and historical information. The methodology adopted for the present study was focus discussion, interview and close observation through in-house study. Since the project is based on action research it was necessary to build rapport to collect intense as possible information from the Client. The main focus was to do with the terminate satisfaction level of customer and explore the possibility of more arrangement of information system. Research can be define as “ Logical and systematize application of fundamentals of science to the general and overall questions of the study, and scientific techniques which provide precise tools, specific procedures and technical rather than philosophical means for getting and ordering the data prior to their logial and manipulation.” The process used to collect information and data for the purpose of making business decisions. The methodology may include publication research, interviews, surveys and other research techniques, and could include both present and historical information.Hence the research spent considerable time with the people who reside in nearby encompassing Bangalore city. 48
  49. 49. MARKET RESEARCH: Market research is the role which likes the consumers, customers & public the marketer through information. The action or activity of gathering information about consumers' needs and preferences.This is used to identify & define market opportunities & problems, generate, refine & evaluate market action; monitor market performances & improve understanding of marketing as a process. TYPES OF MARKET RESEARCH On the basis of fundamental objectives of the research, market research projects are classified into two branches: 1. Exploratory Research 2. Conclusive Research 49
  50. 50. 3.5 DATA COLLECTION: 3.5.1 PRIMARY DATA AND SECONDARY DATA Primary data: Primary data is the new or fresh data collected from the respondents through direct interview using a pre-structured questionnaire. The Primary Data is collected through questionnaire survey to customers. Survey conduction Personal Interview Group Discussion Secondary data: Secondary data may be obtained from many sources, including literature, industry surveys, compilations from computerized databases and information systems, and computerized or mathematical models of environmental processes. Information is gathered from company document, website and books on Consumer Behavior. The data has been collected through following method – Books Internet Company website 50
  51. 51. Basically any research work proceeds as: Define The Problem Design The Research Design The Data Collection Form Specify The Sample Collect The Data Analyaze The Data Present The Finding 51
  52. 52. 3.5.2 QUESTIONNAIRE DESIGN: Questionnaire Design is prepared on the basis of the following parameters. Customers satisfaction Customer Awareness QUESTIONNAIRE ADMINISTRATION: The information is gathered by administering to the customers residing is an around Bangalore. 3.6.3 SAMPLING: Sample size = 50 No. 3.5.4 STATISTICAL TOOLS: For data analysis statistical tools used are simple percentage, tabulation and pie chart 52
  53. 53. 3.6 LIMITATION OF THE STUDY: 1. The time spent was limited due to which the exhaustive study could not be conducted. 2. Quality of information is based on the awareness among customer. 3. In some of the cases the responses may be biased ones. 4. The study confined to the Bangalore City. 53
  54. 54. CHAPTER 4 DATA ANALYSIS 54
  55. 55. Table 4.1 Customer preferred for Financial Center Responses Percentage SBI 18 36 HDFC 15 30 IIFL 4 8 PNB 5 10 IBHFL 8 16 Total 50 100 16% 36% 10% SBI HDFC IIFL 8% PNB IBHFL 30% Graph 4.3 showing customer preferences for financial institution Analysis & Interpretation: From the above table it can see that out of 50 respondents 35 percent were SBI and 31 Percent were HDFCFrom the table it can see that consumer mostly tend to choose SBI and HDFC. 55
  56. 56. Table 4.2 Profile of Outline Age No. Of Respondents Percentage 18-25 7 14 26-35 15 30 36-45 23 46 46&above 5 10 Total 50 100 10% 14% 18-25 26-35 46% 30% 36-45 46 & above Graph 5.1 showing profile of customers Analysis & Interpretation: From the above table it can see that majority of the respondents i.e. 46 percentages of the respondents are under the age of 36-45, 30 percentages of the respondents are under the age of 26-35, 14 percentages of the respondents are under the age group 18-25, and 10 percentages of the respondents are under the age group 46 & above. From above chart we found that Indiabulls engage the newly earners. 56
  57. 57. Table 4.3 Gender shared out among a group Gender No. Of Respondents Percentage Male 42 84 Female 8 16 Total 50 100 0% 0% 14% Male Female 86% Graph 4.2 showing gender distributions Analysis & Interpretation: From the above table it can see that out of 50 respondents 86 percent were male and remaining 14 were female. It was found those Indiabulls customers are mostly male. 57
  58. 58. Table 4.4 Customer awareness of regarding services Decision Responses Percentages Yes 37 74% No 13 26% Total 50 100% 0% 0% 26% YES No 74% Graph 4.4 showing Customer awareness regarding IBHFL Analysis & Interpretation: From the table it can see that out of 50 respondents, 74 % have aware the IBHFL.The chart clearly shows that most of customer has strong knowledge of Indiabulls services. 58
  59. 59. Table 4.5 Customer preference on housing loan Responses Percentage SBI 8 16 HDFC 16 32 LICHFL 5 10 IBHFL 21 42 Total 50 100 16% SBI 42% HDFC LICHFL 32% IBHFL 10% Graph 4.5 showing Customer preference on housing loan Analysis & Interpretation: From the table it can see that majority of respondents i.e. 32% prefer HDFC for housing loan and 42% prefer IBHFL. Chart indicates the almost all compotator have average industry share among over. 59
  60. 60. Table 4.6 Customer perception on IBHFL Decision Responses Percentages S.Agree 23 36% Agree 13 36% Not decide 0 0% Disagree 14 28% S.disagree 0 0% Total 50 100% 0% 28% 36% S.Agree Agree Not decide 0% Disagree S.Disagree 36% Graph 4.6 showing Customer perception on IBHFL Analysis & Interpretation: It was found from above chart that fair and cordial relationship between the Customer and the Company thus perception level of Indiabulls is high. The above table it was found that out of 50 respondents, 36 % customers have strongly agreed that the IBHFL is best company in a Bangalore while 36 % have agreed, 28% of disagreed 60
  61. 61. Table 4.7 Source of influence for the selection of IBHFL Decision Responses Percentages Friends 16 32% Relatives 8 16% Neighbors 11 22% Advertisements 15 30% Total 50 100% 30 32 Friends Relatives Neighbours Advertisement 22 16 Graph 4.7 showing Source of inspiration for the selection of IBHFL Analysis & Interpretation: As we can see that low level of stimulation by company advertisement compare to other factors. From the above table it was found that out of 50 respondents, 32% customers have inspired to buy the IBHFL loans through friends, 30% have relatives, 16% have neighbors and 22% have advertisements. 61
  62. 62. Table 4.8 Regular customer to IBHFL Decision Responses Percentages Yes 23 46% No 27 54% Total 50 100% 46% YES 54% NO Graph 4.8 showing regular customer to IBHFL Analysis & Interpretation: From the above table it can see that out of 50 respondents, 46 % of the people are regular customers and 54% people are not regular customers to the IBHFL. The above chart shows that half of Indiabulls customers are repetitive. 62
  63. 63. Table 4.9 Degree of customer safekeeping Decision Responses Percentages Yes 38 76% No 12 24% Total 50 100% 24% YES NO 76% Graph 4.9 showing degree of customer retention Analysis & Interpretation: From above chart found that out of 50 respondents, the customers of the IBFL 76% customers have yes and 24% have no. it shows that strong customer association with IBHFL. 63
  64. 64. Table 4.10 Company provides better services than other company Decision Responses Percentages S.Agree 4 8% Agree 19 38% Disagree 27 54% S.disagree 0 0% Total 50 100% 0% 8% Strongly agree Agree 54% 38% Disagree Strongly disagree Graph 4.10 showing Company provides better services than other company Analysis & Interpretation: From the table it can see that out of 50 respondents, Company provides better services than other company, 8% customers have strongly agreed while 38% customers have agreed and 68 % have disagreed. Which shows IBHFL still not yet met the customerneed. 64
  65. 65. Table 4.11 Customer opinion onword of mouth connection Decision Responses Percentages S.Agree 13 26% Agree 30 60% Not decide 4 8% Disagree 2 4% S.disagree 1 2% Total 50 100% 4% 2% 8% 26% Strongly Agree Agree Not Decided Disagree Strongly disagree 60% Graph 4.11 showing Customer agreement on positive word of mouth communication Analysis & Interpretation: From the above table it can see that out of 50 respondents, IBHFL have strongly positive mouth of interchange, whichis more important for company 26% have strongly agreed and 60% have agreed. 65
  66. 66. Table 4.12 Customer perception of interest rate of IBHFL Decision Responses Percentages S.Agree 18 36% Agree 27 54% Not decide 4 8% Disagree 1 2% S.disagree 0 0% Total 50 100% 2% 0% 8% S.agree 36% Agree Not Decided Disagree 54% S.disagree Graph 4.12 showing Customer perception of interest rate of IBHFL Analysis & Interpretation: From the above table it has found that out of 50 respondents, 36% customers have strongly agreed the IBHFL interest prices are low, 54% have agreed and 8% has not decided. Overall customer satisfaction with respect to responsive of the company is good. 66
  67. 67. Table 4.13 Customer expectation with respect to IBHFL market growth Decision Responses Percentages Yes 30 60% No 20 40% Total 50 100% 40% YES NO 60% Graph 4.13 showing Customer expectation with respect to IBHFL market growth Analysis & Interpretation: From the above table it can see that out of 50 respondents, 60% customers have yes the IBHFL market will spread all over India and 40% customers have no. 67
  68. 68. Table 4.14 Years of customer association in IBHFL Decision Responses Percentages 22 44% 13 26% 1 to 2 Years 11 22% More than 2 Years 4 8% Total 50 100% Less than 6 months 6 to 12 months 8% 22% 44% Less than 6 months 6 to 12 months 1 to 2 years More than 2 years 26% Graph 4.14showing Years of customer association in IBHFL Analysis & Interpretation: From above table it hasfound that outrespondents, 22% are since 1 to 2 years and 44% are customers of company less than 6 month while 26% are since 612 months. The above chart shows clearly that most of customers are new earner. 68
  69. 69. Table 4.15 Customer perception of the market share of IBHFL Decision Responses Percentages S.Agree 10 20% Agree 26 52% Not decide 10 20% Disagree 4 8% S.disagree 0 0% Total 50 100% 0% 8% 20% 20% S.Agree Agree Not decided Disagree S.Disagree 52% Graph 4.15 showing Customer perception of the market share of IBHFL Analysis & Interpretation: From the table it can see that out of 50 respondents, 20 % have strongly agreed that IBHFL has highest market share in south India while 52% have agreed and 20 % have not decided and 8% disagree. Above chart shows that Indiabulls most of customer associated in Bangalore. 69
  70. 70. Table 4.16 Type of Housing Loan the customers have taken Type of Loans No. of Respondents Percentage Home purchase Loan 15 30 Home Improvement Loan 3 6 Home Extension Loan 4 8 Home Conversion Loan 3 6 Bridge Loan 2 4 Home Construction Loan 12 24 Land Purchase Loan 11 22 Home purchase loan 22% 30% Home improvement loan Home extension loan Home conversion loan Bridge loan 6% 24% 8% 6% Home construction loan Land purchase loan 4% Graphs 4.16 showing Type of Housing Loan the customers have reached for Analysis & Interpretation: From the above table it can see that the majority of respondents i.e. 30% have taken home purchase loan and 24 % of respondents have taken home construction loan. Witch indicates the Indiabulls customers are more engage with Home loans. 70
  71. 71. CHAPTER 5 FINDINGS 71
  72. 72. 5.1 FINDINGS Based on the detailed data analysis following are the major findings of the study: From the survey it is found that 16% of respondents are preferred of IBHFL. From study it is found that 46 percentages of the respondents are under the age of 36-45, 30 percentages of the respondents are under the age of 26-35. IBHFL has 86% are male customer. From the survey it is found that 74% of respondents are familiar with of IBHFL. Customer especially an appeal as IBHFL is best company in Bangalore. From study it was found 70% of customer is not influenced by advertisement. It has found that 46 % of the people are periodic customers of the IBHFL. From study found that respondent shows 86% was positive mouth of communication. From the study it is found that when compared to other brands, Interest price of the IBHFL is Low. 72
  73. 73. As found in research study 20 % have strongly agreed that IBHFL has highest market share in south India while 52% have agreed. Study found that 54% of the respondents were using Home loans and only 46% of the respondents were using for other purpose. 73
  74. 74. CHAPTER 6 CONCLUSION & RECOMMENDATIONS 74
  75. 75. 6.1 CONCLUSION Indiabulls, the any breed of domestic cattle, within few years of its formation has established itself as a business first rate brand. The IBHFL has good system of housing loan scheme, which helps to approval the loan as soon as possible. The company which starts as a simple brokerage firm has now as its wings in real estate, home loans, power, and securities. Indiabulls Housing finance ltd. is a front runner company of the group which offers Home Loan, loan against property, commercial vehicle loan. The loans are sometime rejected also, it is been taken into consideration, the manager had to maintain the record of the rejected applications. The IBHFL is very good at providing the services and gives high amount of loan and low interest rate. It was a great knowledge acquired and an insight in various functional aspects from the customer prospective. The study was a unique learning experience to link theory with the reality of the life. 75
  76. 76. 6.2 Recommendations This Project used to customer satisfaction and factors influencing to choose services provided by the IBHFL. It was undertaken basically primary data were collected and organized the same was analysis through tabulating and applying simple statistical technique. Subsequently research finding were prepared and documented. Based on the research findings following suggestions are made It has been founded 36% of respondent strongly believe that IBHFL is one of the best company offering best financial services and was found 70% of customer is not influenced by advertisement. Hence it is suggested that IBFL should find out the reason for their disagreement and take appropriate look on communication gap. Majority of the respondent (86%) are male customers who are gathering services in IBFL. In study it is found that 46% of respondents are the age of 36-45, which shows mismatch of segment, hence it is strongly suggested that immediate investigative study to find out the reason for why gender distribution and initiate immediate improvement activities under the supervision of senior executives. Failed to promote good and fair practices by setting minimum standards in dealing with customer.Suggested in improvements of tailor made products according to each and every customer. It has been founded 54% of clients go for home loan, hence it is put forward IBHFL higher management body, should encourage those who are using loan for other purposes, to go for housing loan. 76
  77. 77. It has been founded that most of the people 45%-50% regular customers of IBHFL and remaining are not and as per the study 44% customers associated with Indiabulls from last 6 Months. Hence it is recommended company should review and modify their promotional program to convert non regular customers into the regular one. 77
  78. 78. BIBLIOGRAPHY 78
  79. 79. BIBLIOGRAPHY Books: 1. Kotler Philip, Marketing Management, 13th edition, Dorling Kindersley pvt. Ltd. 2. Kothari C R, Research Methodology, 2nd edition 3. Sharma Kr. Atul, Consumer Behavior Website: 1. www.indiabulls.com 2. www.econ.worldbank.org 3. www.financial.indiabulls.com 4. www.rbi.org.in 79
  80. 80. APPENDIX 80
  81. 81. Questionnaire is to find out the factors influencing customer satisfaction towards the services provided by Indiabulls. Dear Sir/Madam The student of JGI Management studies is conducting this survey, As a part of their project in field of Market Research. The purpose of this activity is tomeasure customer satisfaction towards the services provided by Indiabulls among the potential customer of Bangalore. Please tick the appropriate boxes and add your comments where relevant. Name Profession Age Sex 1 Are you aware of IBHFL offering housing loan? A. Yes B. No 2. Which are the financial institutions offering home loan known by you? (a) SBI (b) PNB (c) SBM (d) IBHFL 3. Which company Housing loan products do you prefer to use? 81
  82. 82. A. SBI B. PNB C. HDFC D. IBHFL E. None 4. In your opinion, is IBHFL best company in Bangalore? (a) Strongly agree (b) Agree (c) Not decided (d) Disagree (e) Strongly Disagree 5. How did you get to know about the brand IBHFL? (a) Print media (b) television (c) friends/relatives (d) dealers 6. from how you come to know about IBHFL housing loan (a) Friends (b) Relatives (c) Advertisements (d) Neighbors 7. Are you already the customer of the IBHFL Company? (a) Yes (b) No 8. since when you are the customer of the IBHFL company? 82
  83. 83. (a) Less than 6 months (b) 6 to 12 months (c) 1 to 2 years (d) more than 2 years 9. You share the information with your friends and relatives. 1 Strongly agree 2 Agree 3 Disagree 4 strongly disagree 10. IBHFL company provides better services than other company. A Strongly agree B Agree C Disagree D strongly disagree 11. The word of mouth communication is more important for company. (a) Strongly agree (b) Agree (c) Disagree (d) Strongly disagree (e) Not decided 12. Can the company expect the Positive/ favorable word of mouth communication from you? 83
  84. 84. (a) YES (b) NO 13. In your opinion IBHFL interest prices are low? (a) Strongly agree (b) Agree (c) Disagree (d) Strongly disagree (e) Not decided 14. Do you agree that the IBHFL market will grow all over INDIA? (a) YES (b) NO 15. Which type of housing loan you taken? (a) Home purchase loan (b) Home improvement loan (c) Home extension loan (d) Home Conversion Loan (e) Bridge Loan (f) Home Construction Loan (g) Land purchase loan Thank you for completing this questionnaire. Results will be treated in confidence. 84

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