OPERATIONAL STUDY OF FINANCIAL PRODUCTS AND SERVICES IN BANKING SECTOR

Submitted for the Synopsis On partial fulfillment of the requirement for the award Of

MASTER OF BUSINESS ADMINISTATION

Affiliated To: Mahamaya Technical University, Noida

IDEAL INSTITUTE OF TECHNOLOGY GHAZIABAD

SUBMITTED TO: MS. Anshu Choudhary (Asst. Prof.)

SUBMITTED BY: Anshul Sharma Roll No.:1102870004 MBA IInd YEAR

Introduction Money- How important this word is for us. For some of us, it is the main source of our living.
For others, it is the source of motivation and driving force for achieving success, while there are some who use it lavishly for enjoying the luxuries of life. In short, we can say that from a beggar to a multimillionaire, its serves everybodys wishes.

Money has innumerable uses. It can be used as a medium of exchange, as a capital for starting a new venture, for buying a property or a land, for spending for a vacation, for renovation, and so on. Some desires can be met easily, while others require large amounts of funds which may not be readily available. For immediate fulfillments of these requirements, people require loans like Housing Loans, Car Loans, Education Loans, Personal Loans, Corporate Loans, two wheeler loans, consumer durable loans and so on. This project deals with the aspect of Unsecured Loans (which can be more precisely explained as Personal Loans) as well as semi secured loans (which can be explained as sales finance includes two wheeler & consumer durable loan). Personal Loans serve as important financial aid to us as they fulfill our immediate monetary requirements. They are one of the best sources of finances whenever we face contingent monetary problems. Therefore, financial institutions play a major role in providing these loans. And sales finance loan provides what you want in your home to maintain standard of living. Almost all banks and lending agencies are vying with each other to park their funds to the maximum extent in this sector. Leading finance companies and commercial banks in the public and private sector, including all the nationalized and foreign banks ,are launching innovative loan products /schemes tailor made to suit all sections of the society/ different segments of the publics/clients and citi financial is no exception to this

Objectives of the project

The objective of this project is a study of loan in India. Some of the key issues are suggested:. To know whether the customers are satisfied with the product of loans or not To study the market penetration of CitiFinancial among the customers. The main objective of the study is to find out whether the public is aware of the Loan or not. To identify and analyze the Consumer Buying Behavior with respect to Personal Loans with the help of questionnaires on the basis of 9 different dimensions. Study the entire process of loan disbursement and suggest improvements to improve the efficiency and reduce the turnaround time. To visualize the flaws in the operations and policies of the bank, if any, and suggest possible ways to overcome these shortcomings thereby enhancing the profitability and reach of the bank. To understand the Consumer Finance Market in India and its future prospects. To study the reasons of rejections of loans by the customers.

Scope of Study
The above objectives of the project were duly met and the findings were fruitful. These results and findings may be of definite help to the Bank as a whole (if properly implemented). But its scope is limited to the residents and customers of Ghaziabad only. This is due to demographic differences that differ from one place to another. the findings of the study may not yield desired results. Age, sex, marital status, density of population, earnings per annum, management cadre, eligibility criteria are certain parameters which limit the scope of this study. However, the turnaround and the processing time in the disbursement of Loans may not be affected by these factors. This is so because this procedure is same throughout the branches of the Bank across the country. Reducing this time may have an impact on the Bank in a positive manner.

During the course of the study, there were certain impediments which were faced and which hindered the accuracy of the results to a certain extent. They were:

The major limitation of the project is the small sample size as the sample size of 100 is quite less when compared to the size of the population in the study. The findings of the study will only be applicable to the twin cities as the it is a clustered sample rather a homogenous sample from the whole country can show a different picture altogether.

RESEARCH METHODOLOGY
The methodology was based on the objectives already defined. The detailed study of financial
product of CitiFinancial cover data collection though observation, questionnaire & interview of consumers.

Types of research :

EXPOLRATORY:

Types of research carried out were EXPOLRATORY in nature, the objective of such research to determine the approximate area where the drawback of the company lies & also to identify the course of action to solve it. For this purpose the information proved useful for giving right suggestion to the company

Sample unit
The research process was done by interacting with customers during the activities performed, Sample size Sample Technique Statistical tools used : 100. : Random Sampling. : Bar charts, Pie- charts.

Software used for analysis : MS Word, MS Excel.

Research instrument

QUESTIONNAIRE

Whole of the research process was dependant on the primary data that was collected from those people who are currently enjoying the services of CitiFinancial as well as those who are not associated with the bank. Questionnaires were used as feedback from the customers for carrying out the analysis of the study. These questionnaires had both open ended as well as closed ended questions, with different weights being assigned to different questions for a close analysis.. The views were analyzed on several parameters before arriving at a final conclusion of the research.. After the research, Financial Analysis was done by comparing the banks. Conclusions were finally arrived at.

Methodological Assumptions
It is assumed that questionnaires were the most appropriate method for collecting. It is assumed that the facts provided by the respondents were genuine and authentic. It is assumed that the sampling procedure adopted was appropriate for the study. It is also assumed that the research design adopted would help in carrying out a systematic study.

Conclusion
There is no doubt that the market for personal loans & sales finance will grow strongly in a rapidly growing economy like India where incomes of the middle class households are rising at a faster rate. Tax rebates that have been reducing the effective cost of borrowings (both on interest and capital) for the customers will continue. There is no doubt that the market for loans will grow strongly in a rapidly growing economy like India where incomes of the middle class households are rising at a faster Similarly growing competition among banks in the personal loan business has also resulted in the lowering of interest rates as well as servicing/processing charges on personal loans. Banks are utilizing all possible means like aggressive pricing, offering value added products, giving away free beaks and installing efficient credit delivery to be competitive in this arena. Cross selling of products is one of the preferred modes adapted. Today no Bank is offering the plain vanilla product. They are coming up with more and more features to make this product tangible like waiving processing charges, making festival offers, reducing interest rates, issuing free ATM cards etc. Off late some banks have rolled out specialized products for women. Products like loans for women to purchase gold bars or ornaments, loans for women entrepreneur at softer rates etc. have emerged. Such customization for different segments helps to enhance penetration in the personal loans market. Innovations are not limited to the product or service offerings, Banks today are looking at their customer data base and seeking ways to improve their relationships with their customers, establishing customer intimacy in their effort to build relationships with their customers and enhance the brand. CITIFINANCIAL should also keep up pace with the changing trends in the market which will auger well for its continuous growth in the personal loan market.

References

www.google.com www.datarecognitioncorp.com/survey/custsat.html www.marketresearch.com/land/product.asp?productid=952644&progid=36 04

Business world magazine http://in.loans.yahoo.com/personalbasics1.html http://loan.ru.com/article4.html http://www.business.com/directory/financial_services/banking/banking_insti tutions/money_center_banks/europe/standard_chartered_bank/

CFA Analyst, 2005 edition. www.highbeam.com www.deal4loan.com www.citifinancial.co.in www.citigroup.com