PROJECT REPORT

ON
CONSUMER PERCEPTION HOME LOAN TOWARDS
SBI&PNB
MASTER OF COMMERCE (ACCOUNTANCY)
PART-2 (SEMESTER-3)
(2016-2017)
INTERNAL ASSESSMENT
RESEARCH METHODOLOGY
Submitted To:PROF.SEETHALAXMI.
Submitted By:VANITA SHANKAR BHUJBAL.
ROLL NO:-07
S.I.E.S. (NERUL) COLLEGE OF ARTS, SCIENCE & COMMERCE

AFFILIATED TO UNIVERSITY OF MUMBAI

S.I.E.S (NERUL) COLLEGE OF ARTS, SCIENCE & COMMERCE
1

CERTIFICATE
(2016-2017)
This is to certify that the project entitled CONSUMER
PERCEPTION HOME LOAN TOWARDS SBI&PNB is a project
work done by VANITA SHANKAR BHUJBAL, ROLL NO-07, in
fulfilment

of

the

requirements

for

the M.COM

in

ACCOUNTANCY (PART-2) (SEMESTER-3) during the academic

year 2016-2017 is the original

work done of the candidate and

completed under guidance of PROF.SEETHALAXMI.

Date:Place:- NAVI MUMBAI
..

..........................

Internal Examiner

External Examiner

(Mrs.KOEL.ROY.CHOUDHURY)

(Mrs.KOEL.ROY.CHOUDHURY)

M.COM Coordinator

Principal

DECLARATION BY STUDENTS

I, VANITA SHANKAR BHUJBAL, ROLL NO-07, the student

of M.COM in ACCOUNTANCY (Part-2) (Semester-3) (2016-2017)
hereby declares that I have completed the project on CONSUMER
PERCEPTION HOME LOAN TOWARDS SBI&PNB under

the

supervision of the internal guidance of PROF.SEETHALAXMI. and

that the contents of the project are not copied any other source
such as internet, earlier projects, textbooks etc.
The information submitted is true and original to best of my
knowledge.
Thank you,

Yours faithfully,
VANITA BHUJBAL
ROLL NO:-07

ACKNOWLEDGEMENT

I would like to thank all the people who helped me in undertaking

the study and completing the project, by imparting me with valuable
information and guidance that was required at every stage of my
project work.
I would like thank our principal, Prof. Koel Roy Choudhury and
Co-ordinate for giving me an opportunity and encouragement to
prepare the project.
Last but not the least, I would like to thanks my project guide
for guiding and helping me throughout the preparation of my
project, right from selection of the topic till its completion.

VANITA BHUJBAL
Roll No: 07

INDEX

SR. NO

TABLE OF COTENTS

Chapter -1

PG.
NO

INTRODUCTION OF THE INDUSTRY

2

Chapter 2

REVIEW OF LITERATURE
3

Chapter 3

RESEARCH DESIGN
3.1Research problem selection
3.2OBJECATIVE OF STUDY
3.3 SCOPE OF THE STUDY
3.4RESEARCH METHODOLOGY
3.5 Primary & secondary data
3.6 LIMITATIONS OF STUDY
3.7 INTERPRETATION
3.8 CONCLUSION
3.9 REFERENCES

INTRODUCTION OF THE INDUSTRY

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
countrys first bank, Bank of Bengal, was established. But the industry
5

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 much-talked-about
liberalization and economic reforms that allowed banks to explore new
business opportunities and not just remain constrained to generating
revenues for more 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, nationalized banks 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 bank sand specialized banking institutions. The industry is
highly fragmented with 30banking units contributing to almost 50% of
deposits and 60% of advances. The Reserve Bank of India is 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,223 banks 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. The specialized 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 todays 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.
Growth in banking industry: The limit for foreign direct investment in
private banks has been increased from 49%to 74%. In addition, the
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limit for foreign institutional investment in private banks is49%.

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.
declined to disclose the banks 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
heal thy 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
7

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 INSURANCE
Life Insurance corporation of India,
Bajaj Allianz General Insurance,
ICICI Prudential Life Insurance,
ICICI Lombard General Insurance,
Birla Sun life Insurance,
Tata AIG General Insurance ,
New India Assurance Co.,
Iffco Tokio General Insurance Oriental Insurance Co.,
HDFC Standard Life Insurance.

PROFILE OF THE ORGANISATION:

PROFILE OF PNB:
The profile of the PNB shows superior banking services incorporate,
personal and international banking, industrial and agricultural finance and
finance

of

trade.

Punjab

National Bank

boasts

of

varied

clientele consisting of small land medium industrial units, exporters,

multi-national companies, India conglomerates and NRI. The Bank is

changing outdated front and back end processes to modern customer

friendly processes to help improve the total customer experience.
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 market operations.
PROFILE OF SBI:
The SBIs powerful corporate banking formation deploys multiple
channels 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 countrys 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 workshops fired the imagination of the employees
with some other banks in India as well as other Public Sector
Organizations seeking to emulate the programmed
COMPANY HISTORY:
PNB HISTORY:
Punjab National Bank of India was established by Lala Lajpat Rai in the
pre-independence India in 1895 in Punjab, with Lahore as its head office.
9

Today it is the second largest public sector bank in India. It was

nationalized in 1969 along with 13other 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 stock exchange. In 1992,PNB
became the first Philippine bank to reach P100 billion in assets. 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 P43.77 per share bid offered by a
competitor and purchased the shares owned by the government. The
completion of sale is expected to speed up the development of PNBs
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.
PRODUCT RANGE OF COMPANY/INDUSTRY:
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The products and services provided by the SBI and PNB are in various
fields, such as:
Banking services
NRI services
International banking
Corporate banking
Agricultural banking

Chapter -2
REVIEW OF LITERATURE:
The relevant literature relating to the topic is reviewed as under:
Nath Ravi & Schrick Paul (2001), e-Service Journal, Bankers'
Perspectives on Internet Banking, Vol. 1, no. 1. In every industry, E11

commerce is revolutionizing the way business is conducted. New

business models are replacing outdated ones and organizations are
rethinking business process designs and customer relationship
management strategies. Banks are no exception to this transformation.
This study examines bankers views on providing banking services to
customers using the web.The results show that Internet banking is in its
nascent stage only a small number of banks offer web-based banking to
customers and the full benefits of Internet banking are still to be realized
by many banks.
Debashis and Mishra (2005), The study analysed and measured
customer satisfaction in branch services provided by nationalized banks
in northern India. 1200 customers were given questionnaires and it was
found out that computerization, accuracy in transactions, attitude of staff
and availability of staff Influenced customer satisfaction. Least important
factor was promotion of the products and various schemes.

Mushtaq M Bhat (2005), This study finds out service quality parameters
in bank through SERVQUAL and influence of demographic variables.
The study was limited to SBI, PNB, Jammu and Kashmir bank Citi bank
and Standard Chartered Grind lays bank. Sample size was 800 and study
found out that foreign banks are better than Indian banks. SBI was found
to be relatively poor on reliability and responsiveness. Banks in Delhi
were comparatively better in service quality.
Mohammad et al (2005), The study tries to develop a comprehensive
model of banking automated service quality taking into consideration
unique attributes of each delivery channel and other dimensions which
influence service quality.
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P K Gupta (2008), Objective of this study was to find out the behavior
of customers with respect to internet banking vis--vis conventional
banking. The study found out that internet banking was found to be
easier and speedier than conventional banking and trust, accuracy and
confidentiality were the most important factors here.
Pooja Malhotra & Balwinder Singh (2009), Eurasian Journal of
Business and Economics, The Impact of Internet Banking on Bank
Performance and Risk: The Indian Experience, Vol. 2 no. 4. The paper
describes the current status of internet banking in India and its
implication for the Indian banking industry. The attempt was made to see
if there is any association between adoption of Internet banking and the
banks performance and risk. The internet banking has a negative and
significant impact on risk, which shows that, the adoption of Internet
banking has not increased the risk profile of banks.
Neha Dixit & Dr. Saroj K Dutta (2010), Journal of Internet Banking
and Commerce, Acceptance of E-banking among Adult Customers: An
Empirical Investigation in India, Vol. 15 no. 2. Points out that in a
country like India there is a need for providing better and customised
services to the customers which can be make possible through ebanking. The people have positive perception about online banking,
should be treated with the great value.
Nahum Goldmann (2010), Journal of Internet Banking and
Commerce, ICEP2010 (International Conference on ecommerce and epayments, Poland 14-16 September 2010), Vol. 15 no. 3. In this paper
statical analysis, descriptive statistics was used to explain demographic
profile of respondents and also factor regression analysis was used to
know the trend of internet use and the factors affecting e banking.
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Sachin Mittal&Rajnish Jain (2010), This paper is basically a banking

industry and effect of IT based services on customer satisfaction. The
study highlights customer satisfaction levels among young customers in
banking industry. A survey indicates the gaps between customers
expectations and perception with respect to IT based banking services.
Findings indicated need to improve the IT based services for enhancing
customer satisfaction.

CHAPTER - 3
RESEARCH DESIGN
3.1Research problem selection :

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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 life time dream for every
individual. There are many home loans provider in the market .
Researcher is selecting a topic for research is compression between two
Banks those are SBI & PNB for the consumer preference for home loan .

3.2OBJECATIVE OF STUDY:
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 SBI banks.
To know the consumer perception about the home loan of PNB and SBI.
3.3 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.

3.4RESEARCH 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
15

behaviour of the consumer. Effort will be made to throw light on most of

the factors which have either indirect or direct effect on the behaviour of
the consumer. I will also explore the impact of home loans on the market
share of the banks.
Sampling plan: Population: The study aimed to include the customers of
SBI and PNB in Nerul & Juinagar, 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 it is not possible to cover the whole universe in the
available time period. So it is 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 judgmental 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.
3.5 Primary & secondary data:
Primary Data:

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Research 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.
Secondary data:
secondary data also help of this research. In secondary the researcher is
finding

data from online website and newspaper and other research

papers.

3.6 LIMITATIONS OF STUDY

Although best of the efforts were made to conduct a prefect survey but
still it faces 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 Nerul & Juinagar
region only. Hence findings would not be relevant to other cities.

3.7 INTERPRETATION
Researcher is taking a 50 from SBI & 50 from PNB All the people are
availing loan facility from both the banks. No. of respondents of SBI
were 46 and 47 of PNB Bank. Peoples are relating with PNB more
satisfy with the interest rate as compare to SBI.
3.8 CONCLUSION:

17

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 satisfy with 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 of SBI 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.
3.9 REFERENCES:
ONLINE NEWSPAPER:
1. La Cour-Little, Michael ,The Home Purchase Mortgage Preferences of
Low-and Moderate-Income Households. Real Estate Economics, Vol. 35,
No. 3,

pp.265-290,

Fall

http://ssrn.com/abstract=1007862

2007.

Available
or

at

SSRN:

DOI: 10.1111/j.1540-

6229.2007.00190.x

2. Calem, Paul S. and Wachter, Susan M. (Nov 1, 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=145360

RESEARCH OR WORKING PAPERS :

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1.

Craig,

Ben

Federal (August 2001). Home Loan

R. and Thomson, James B.

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
2. Jacoby, Melissa B.( dec 2006) Home Ownership Risk Beyond a
Subprime Crisis: The Role of Delinquency Management. Fordham Law
Review, Vol. 76,2008; UNC Legal Studies Research Paper No. 1074442.
Available at SSRN: http://ssrn.com/abstract=1074442

ONLINE WEBSITE :
1.http://ideas.repec.org/p/fip/fedcwp/9015.html
2.http://ideas.repec.org/p/fip/fedgfe/2004-27.html

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