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SYNOPSIS OF MAJOR RESEARCH PROJECT

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GUIDED BY SUBMITTED BY
MS. SAMKITA JAIN SATISH KUMAR SLKARI
MBA II YEAR
BATCH 2008-10
TABLE OF COTENTS
CHAPTER 1 (Section)
1.1 Introduction to Subject
1.2 Objective, Need, Scope & Methodology
CHAPTER 2 (Section)
2.1 Introduction to Company
2.2 Overview of the industry (History, Growth, Landmarks, major players and their
market share)
2.3 Profile of the organization
2.4 Company¶s history
2.5 Recent achievements and milestones
2.6 Product range of the company/industry
2.7 Performance of the company over the last few years(Statistical Profile)
2.8 Financial status of the organization
2.9 Future prospects/ plans
CHAPTER 3
Survey of Literature
CHAPTER 4
Interpretation
CHAPTER 5 (Section )
5.1 Conclusion
5.2 Limitations
CHAPTER 6
References
CHAPTER 7
Questionnaire
1.1 Section
INTRODUCTION
Home loans work like any other debt. That is, loans are simply specific money that We borrow
from a bank, a private lender, or some other type of lender. Afterwards, we must repay our debts
with interest. However, unlike other types of loans, home loans are different in several respects.
Owning a piece of land or property is a lifetime dream for every individual. There are many
home loans provider in the market.
There are different types of home loan:-
º? Home Purchase Loans

º? Home Improvement Loans
º? Home Construction Loans
º? Home Extension Loans
º? Home Equity Loans
º? Land Purchase Loans
Bridge Loans
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These are the basic forms of home loans used for Purchasing of a new home. With about a
million home lenders and mortgage brokers it's becoming a tough challenge as the days are
progressing. But at the same time, when the sites are coming up with all the latest tools and
relevant information for us, and with all such conveniences, obtaining a home purchase loan or
mortgage has become really pretty simple. However, at the same time though, we may be
flummoxed to look so many attractive rates and offers in the market, not to forget the hidden
costs associated with each of them.
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Home improvement loans are used to finance Improvements and add on to the existing set of
credentials of beauty on your owned house, recently purchased property or rented
accommodation. Home improvement loans are used to maintain or enhance the value of your
house. In general it includes: repairs, remodeling, energy-related items (permanent in nature),
repairs, a new kitchen, a new bathroom, terrace, an extension or general property improvements.
Luxury items and fireplaces are generally not eligible, though. Many improvements in landscape
and even swimming pools are nowadays considered to be a part of home improvement.
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Home construction loans are used to finance for the Construction of our newly acquired home or
if we are planning to build a home.
The factors include in calculations for house building costs?
º? Design of the house

º? Construction cost
º? Financing Cost
º? Buildable site
All the above mentioned costs will help us to determine the amount we may need to borrow. For
example, besides calculating the construction costs, we may also be required to consider the total
expenditures to develop the site in order to build. Each site is unique requiring different
expenditures so this specific rupee amount will vary from site location to site location.
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Before the house starts getting build, we will be required to pay a deposit to your builder as well
as paying a deposit for the land if we are buying land. As work progresses you will need to make
payments to the builder. Certain loans can be structured for progress payments to be made during
construction.
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Home extension loans are used by customers to get loans from the banks to extend their houses,
by adding more rooms, kitchens, wash rooms, terraces, or any other rooms for your growing
family. It may also be used to enclose open balcony/terrace space, or constructing a Puja ghar.
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Banks generally offers about 70-85% of the total amount of home extension as loan. The amount
of loan sanctioned also depends on a number of factors such as the age of the applicant at the
time of loan, tenure of the loan, repayment capacity of the borrower; his/her credit history etc.
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Home equity loans helps customer to encash the market value of the commodity by taking a loan
by mortgaging the property. So, Home equity loans are availed by customers, who wish to
mortgage his/her property to the bank for taking some loan for some other purpose. Then, it's up
to the bank's discretion to consider the market value of the property and accordingly decide how
much to pay to the customer. Both the residential as well as non residential property can be
considered for the approval of the loan, provided the mortgager is a licensed title holder and the
land is free form any kind of dispute.Home equity loans don't restrict one to use the loan money
in specific investments. It might also be used in marriage, higher education, medical expenses,
etc. However it should not be used in any illegal or speculation purposes.
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Land Purchase loans are used by customers who wish to purchase a plot of land for commercial
or residential purpose. Everyone has his/her dream perfectly sketched in his souls and so is his
ambition to get his house erected on the exact location he dreamt that to be. If you have found
and shorlisted the piece of land, and have arrived here for finance, you have come to the best
place you could have arrived in the web. Now, that you have decided to purchase a land as an
investment or for your own dream home, you will realize that a land purchase loan is one you
will cherish. Loans that are strictly for land purchase can be as scarce as good residential plots.
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U? To analyze the home loan scheme by PNB and SBI banks.
º? To know the consumer perception about the home loan of PNB and SBI.?
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º? . To study the cost of home loans provided by the bank.

º? . To know that which bank provide batter loan schemes. of PNB and SBI.
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" 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.

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$-!?*?"?The research will be exploratory in nature. A population of peoples

who take home loan from these banks will be considered for this study. I will try to explore
about the home loans which would make a difference in the behavior of the consumer. Effort
will be made to throw light on most of the factors which have either indirect or direct effect on
the behavior of the consumer. I will also explore the impact of home loans on the market share of
the banks.
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$1"?A Sample size of 100 respondents will be taken for the current study because it
is not possible to cover the whole universe. So it is necessary to take the sample size. In 100
respondents 50 respondents from PNB and 50 from SBI. The sample will the peoples of age
group lying between eighteen to thirty years. The sample will be taken in the form of strata based
on age, sex, and income group.
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$!-?&,"#The sampling method will be probabilistic sampling more specifically

the random convenient and judgemental sampling will be use. 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.
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PNB has over 4500 branches and offices bringing the Punjab National Bank to your
doorstep. Around 2400 offices come under the network of Centralized Banking Solution
or CBS. A need for centralized banking system prompted PNB to go computerized and
what followed was the establishment of CBS in Punjab National Bank branches in all the
leading cities like Delhi, Pune, Chennai, Mumbai, Ahmedabad, Chandigarh, Gurgaon,
Hyderabad, Jalandhar, Kolkata, Ludhiana, Nodal and Bangalore. Internet Banking
Services are provided to all customers in the CBS branches. A branch and ATM locator is
also available on the official website of Punjab National Bank. For an overview of the
annual report or the bank profile, the site can be resourceful. The website also provides
info on the careers and recruitments at PNB and the exam results. The careers at
nationalized banks like PNB are the most sought after one and candidates are selected on
the basis of their exam result. PNB topped the Best Paying Commercial Bank category
with an overall rating of 87.45% as evaluated by the SSS Retirement, Death & Funeral
Benefits Program.
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State Bank of India (SBI) is India's largest commercial bank. SBI has a vast domestic network of
over 9000 branches (approximately 14% of all bank branches) and commands one-fifth of
deposits and loans of all scheduled commercial banks in India. The State Bank Group includes a
network of eight banking subsidiaries and several non-banking subsidiaries offering merchant
banking services, fund management, factoring services, primary dealership in government
securities, credit cards and insurance.The eight banking subsidiaries are:State Bank of Bikaner
and Jaipur (SBBJ),State Bank of Hyderabad (SBH).State Bank of India (SBI),State Bank of
Indore (SBIR),State Bank of Mysore (SBM),State Bank of Patiala (SBP),State Bank of
Saurashtra (SBS) and State Bank of Travancore (SBT). Today, State Bank of India (SBI) has
spread its arms around the world and has a network of branches 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
Internationl Services division.
2.2 Section
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Banking in India has a long and elaborate history of more than 200 years. The beginning of this
industry can be traced back to 1786, when the country¶s first bank, Bank of Bengal, was
established. But the industry changed rapidly and drastically, after the nationalization of banks in
1969. As a result, the public sector banks began experiencing numerous positive changes and
enormous growth. Then came the much-talked-about liberalization and economic reforms that
allowed banks to explore new business opportunities and not just remain constrained to
generating revenues from mere borrowing and lending. This provided the Indian banking
scenario a remarkable facelift that only continues to get better with time. However, even today,
despite the foray of foreign banks in the country, 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 banks
and specialized banking institutions. The industry is highly fragmented with 30 banking units
contributing to almost 50% of deposits and 60% of advances. The Reserve Bank of 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.
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The Banking sector is considered the most lucrative option in today¶s job market. In the industry,
a position in Treasury or Forex is considered right on top and this is followed by careers in
Private Banking, Investment Banking and Retail Banking. One could work in a variety of areas
in banking industry including Recurring Deposit account, banking officer, probationary officer,
loan officer, assessor, personal loan officer, home loan officer, home loan agent, loan manager,
mortgage loan underwriter, loan processing officer, accountant, product marketing and sales
executive, and customer service executive among others. In the Financial Services, some of the
important jobs include that of a stockbroker who is essentially a person who buys and sells
securities on behalf of individuals and institutions for some commission. While some brokers
like to practice with individual clients others work for institutions. Brokers who work for
institutional investors are often called securities traders. Many prefer to work as dealers, advisors
and securities analysts. Security analysts are those who advise companies on floatation¶s of
shares as they are expected to have sound knowledge of capital markets. Investment analysts are
the backbone of the financial services sector. They study the financial reports of companies,
assess various statistical information, profitability projections, compare financial results, survey
the industry as a whole and on the basis of the available information, and finally conclude to a
decision. Equity Analysts do jobs similar to investment analysts and research the equity markets
and make predictions.
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The limit for foreign direct investment in private banks has been increased from 49% to 74%. In
addition, the limit for foreign institutional investment in private banks is 49%. Liberalization and
globalization have created a more challenging environment in the banking sector as well as in the
other segments of the financial sector such as mutual funds, Non Banking Finance Companies,
post offices, capital markets, venture capitalists, etc.
Research and Markets has announced the addition of 'Indian Retail Banking, 2006' to their
offering. Indian Retail Banking continues to redefine the credit growth in the country. It grew by
a whopping 44.4% in 2005-06 to touch Rs 3,538 billion. This leap was despite the increase in
risk weight by RBI for housing and real estate loans during August, 2005. Housing, which
constitutes more than 52% of all retail loans, grew at a robust rate of 44.35% during 2005-06. In
order to help banks in India to understand the market and competition and plan future strategies,
we have just come out with an Industry Insight on Indian Retail banking - 2006 edition.
This report analyses the retail banking market and its segments in India and presents the key
trends, along with issues and challenges. The report also paints a future outlook for the market.
Besides it profiles 21 major players in the retail banking space and their strategies. Finally, it
seems Reserve Bank of India's (RBI) flurry of measures to restrain the home finance market is
paying off. With tightening of interest rates by the RBI and a simultaneous increase in real estate
prices in a few markets, the banking sector is witnessing a decline in the growth of its home loan
portfolio.
The home loan industry is experiencing a growth of 25% this year, as against 30%
growth in home loans earlier. Rajiv Sabharwal, senior general manager, ICICI Bank, which has
recorded the highest incremental growth in home finance segment in recent past, said, ³The real
estate prices have become very high in few markets, which has resulted in the fall in growth rates
for home loans for the banking industry. Home loan growth has reduced to 25% from its earlier
growth rate at 30% and since we are an integral part of the industry, there will be some impact on
us too.´ He added that the bigger impact had come from real estate prices, but obviously interest
rates hikes will also have an impact. He, however, declined to disclose the bank¶s current home
loan growth rate. Echoing a similar view, a senior official of State Bank of India (SBI) said the
home loan market is showing some signs of slowing down. However, another major player,
Housing Development Finance Corporation (HDFC) said the housing finance market for the
middle class segment was growing at a healthy pace. PNB Bank is a leading home loan lender of
the country with about 30% market share. Retail lending comprises 70% of the total loan
portfolio of the bank, of which the home loan lending is about 50%. In the first half of fiscal
2007, the bank experienced total home loan disbursements of Rs 13,400 crore.
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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.
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U? State Bank of India

U? HDFC bank
U? Citibank
U? ICICI Bank
U? Punjab National bank
U? UTI Bank
U? Hongkong & Shanghai Banking Corp.
U? Kotak Mahindra Bank
U? Sundaram Bank
U? Oriental Bank of Commerce
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U? Life Insurance corporation of India
U? Bajaj Allianz General Insurance
U? ICICI Prudential Life Insurance
U? ICICI Lombard General Insurance
U? Birla Sunlife Insurance
U? Tata AIG General Insurance
U? New India Assurance Co.
U? Iffco Tokio General Insurance
U? Oriental Insurance Co.
U? HDFC Standard Life Insurance
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The profile of the PNB shows superior banking services in corporate, personal and international
banking, industrial and agricultural finance and finance of trade. Punjab National Bank boasts of
a varied clientele consisting of small and medium industrial units, exporters, multi-national
companies, Indian 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.
With about 8500 of its own 10000 branches and another 5100 branches of its Associate Banks
already networked, today it offers the largest banking network to the Indian customer. The Bank
is also in the process of providing complete payment solution to its clientele with its over 8500
ATMs, and other electronic channels such as Internet banking, debit cards, mobile banking,
etc.The objectives of the Company are in line with objectives laid down by RBI for the Primary
Dealers: Strengthen the infrastructure in the government securities market in order to make it
vibrant, liquid and broad based. Ensure the development of underwriting and market making
capabilities for Government Securities . Improve secondary market trading system, which would
contribute to price discovery, enhance liquidity and turnover and encourage voluntary holding of
Government securities amongst a wider investor base . Become an effective conduit for
conducting open market operations.
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The SBI¶s 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 country¶s biggest business centers. The others are the
Project Finance unit and the Leasing unit.The National Banking Group also delivers the entire
spectrum of corporate banking products to other corporate clients, on a nationwide platform.
The bank is also looking at opportunities to grow in size in India as well as Internationally. It
presently has 82 foreign offices in 32 countries across the globe. It has also 7 Subsidiaries in
India ± SBI Capital Markets, SBICAP Securities, SBI DFHI, SBI Factors, SBI Life and SBI
Cards - forming a formidable group in the Indian Banking scenario. It is in the process of raising
capital for its growth and also consolidating its various holdings. Throughout all this change, the
Bank is also attempting to change old mindsets, attitudes and take all employees together on this
exciting road to Transformation. In a recently concluded mass internal communication
programme termed µParivartan¶ the Bank rolled out over 3300 two day workshops across the
country and covered over 130,000 employees in a period of 100 days using about 400 Trainers,
to drive home the message of Change and inclusiveness. The workshops fired the imagination of
the employees with some other banks in India as well as other Public Sector Organizations
seeking to emulate the programme.
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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. Today it is the second largest public sector
bank in India. It was nationalized in 1969 along with 13 other major commercial banks. The
privatization started in 1989 when 30 per cent of its shares were offered to the public and it was
listed on the stock exchange.In 1992, PNB became the first Philippine bank to reach P100 billion
n 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 P 43.77 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 PNB¶s franchise and operational competitiveness.
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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.
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Punjab National Bank (PNB), has announced that it has completed 100% core banking
implementation at all its 4604 branches and extension counters through the Finacle Universal
Banking Solution from Infosys, on Sun infrastructure and the Oracle Database setting a
significant milestone for themselves and a new benchmark for the Indian banking industry.
Completed in November 2008, 4 months ahead of schedule, the bank implemented industry-
leading Finacle core banking solution from Infosys across its operations running a flexible, and
scalable database platform from Oracle and innovative servers from Sun Microsystems With an
increasingly dynamic business and regulatory environment, PNB sought to not only achieve
automation, but also centralize operations, standardize branch processes, achieve high scalability
for future business growth, provide flexibility of creating innovative banking products to its lines
of business, and at the same time, reduce overall costs. The visionary zeal and the futuristic view
of the Bank¶s top management in the year 2007-2008 incubated the idea of introduction of a
Centralised Banking solution. The bold and innovative thought culminated into the CBS
architecture with Finacle application on Oracle Database and Sun hardware platform with Solaris
Operating System. With Finacle¶s agile and future proof technology, the bank today has over
22,500 concurrent users.
The solution¶s scalability has also enabled the bank¶s scalability to be the best in the country
with the number of peak transactions at 3.5 million. Finacle core banking platform also provides
the bank with exceptional agility for product innovation and improved flexibility of operations.
With seamless integrationof delivery channels such as ATM and internet banking solutions, PNB
is able to provide 24X7 services to customers at a reduced transaction cost.
PNB¶s choice of the Oracle Database has provided the bank¶s IT infrastructure with robustness,
management features, security and scalability as well as performance requirements to service 3.5
million transactions and 22500 concurrent users ± a significant achievement in the Indian
banking industry. In addition, the Oracle Database will help PNB take control of its enterprise
information, gain better business insight, and quickly and confidently adapt to an increasingly
changing competitive environment. With secure, highly available and scalable grids of low-cost
servers and storage, Oracle customers can tackle the most demanding transaction processing,
data warehousing, business intelligence and content management applications.
The 100% implementation of Finacle Core Banking Solution shall enable PNB tofurther reduce
operational costs and revenue leakage while improving productivity of branches, introduction of
new and innovative products and visibility of business.
The anywhere anytime banking facility will enable the bank to offer products for every segment
of the customer.
PNB long-standing and progressive partnership also highlights Finacle¶s leadership in large scale
banking transformation, the solution¶s future proof technology and
powerful capabilities. India is a strategic market for Finacle and we look forward to closely
collaborating with Punjab National Bank for their future growth plans.´
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SBI has been the proud recipient of the ICRA Online Award - 8 times, CNBC TV ± 18, Crisil
Award 2006 - 4 Awards, The Lipper Award (Year 2005-2006) and most recently with the CNBC
TV - 18 Crisil Mutual Fund of the Year Award 2007 and 5 Awards for our schemes. SBI Card
reaches three million milestone: SBI Card, a joint venture between State Bank of India and GE
Money, announced yet another landmark achievement of crossing the three million cardholders-
mark. Roopam Asthana, CEO-SBI Card, said, "This milestone is even more remarkable as we
have added one million cardholders in just ten months. Our objective is to accelerate the pace of
growth by extending the benefits to a broader range of consumers in Tier II cities, along with
improved value propositions for the urban affluent customers." SBI Card recently signed up
Indian cricketer Yuvraj Singh as its brand ambassador. SBI joins Chinese bank to touch 10,000
branches: Public sector State Bank of India on Sunday became only the second bank in the world
to have 10,000 branches when Union Finance Minister P Chidambaram inaugurated its latest
branch here. Speaking on the occasion, Chidambaram said China's ICBC Bank was the other
bank to have 10,000 branches. Opening 10,000 branches was a great feat. "It is not an easy
milestone though the SBI was the bank of the government and Indian people even before other
banks were nationalised," he said. People all over the world, including the Chinese, would now
know about this small village where the 10000th branch of the SBI had been opened, he said
adding they would be amazed by the bank's growth. The bank should be proud of the
achievement he said and wished that the bank opened one lakh branches. The Minister said out
of the over 100 crore people, seventy 75 per cent did not have any type of insurance. Similarly,
50 per cent of the 11 crore farmers did not have bank account. Banks should go to the people and
enroll them as account holders. 'That is what economists say is financial inclusion,' he said. ]
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Banking services
NRI services
International banking
Corporate banking
Agricultural banking
International banking
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1st Quarter Net Income UP 48% Year-on-Year Taking-off from a breakthrough performance in
2007 with a registered net income of P1.5 billion, PNB continues to reap the benefits from its
efforts to strengthen core businesses, reduce non-performing assets and manage costs. Net
Income for the 1st Quarter of 2008 registered P457 million, up 48% from P308 million of the
same period last year. This performance bucks industry trends for the 1st quarter of 2008 based
on published income reports.
Even as the operating environment proved volatile where negative trends are expected, PNB still
managed to reflect a 136% growth in foreign exchange gains year-on-year, from P242 million to
P571 million. A relentless focus in generating low-cost funds from deposits and other funding
sources led to a reduction in total interest expense by as much as 27%. Total deposits closed firm
at P180 billion.
Operating expenses were down 23% despite investments made in systems enhancement and
upgrading of facilities. The Bank has recently implemented a new generation core banking
system: Flexcube ± an end-to-end solution designed to automate both corporate and retail
banking businesses; and effectively in-source core overseas operations to its global data center in
the Philippines. PNB¶s Japan, Singapore, Hongkong and United States branches as well as the
London subsidiary have already been converted and the rest of the Bank is expected to go live
soon.
As of March 31, 2008, PNB¶s consolidated total asset size remained strong at P242 Billion, up
P2.7 billion versus end-2007. With the significant strengthening of its balance sheet over the past
few years, PNB has been able to concentrate on generating new client relationships in the
corporate segment, both in the large and SME categories. The contribution from the consumer
finance business has likewise continued to register accelerated growth. Total consumer loans
portfolio stood at P3.3 billion, up 25% from end-2007. Combined new bookings for the 1st
quarter 2008 already reached the half-billion mark. PNB¶s Net Loans and Receivables closed
P77 billion.
As of March 31, 2008, PNB¶s Capital Adequacy Ratio under Basel II remained formidable at
18.51%, still way above the 10% ratio required by the Bangko Sentral ng Pilipinas. Subject to
appropriate approvals and clearances, PNB is going to the capital markets to raise a minimum of
P3 billion of Tier 2 Capital in preparation for its maturing subordinated notes in February 2009.
PNB will emerge as the 4th largest domestic bank in the country in terms of asset size once its
planned merger with Allied Banking Corporation (ABC) is completed. The respective Board of
Directors of PNB and ABC passed resolutions last April 30, 2008 approving the plan to merge
the two banks. This transaction is subject to the approval of shareholders and regulatory
authorities and is expected to be completed by the 3rd quarter of 2008.

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State Bank of India (SBI) is all geared up to increase its business per employee and profit per
employee as it thinks that for SBI, these two parameters are among the lowest in the industry. On
one hand, the bank is trying to reduce its staff strength which would eventually improve the
ratios; but on the other, the bank is also going flat out to increase its customer base.
"Our business per employee and profit per employee is one of the lowest in the industry," SBI
had recently said in a joint statement issued by the management and unions.SBI's generates Rs
2.99 crore of business per employee, while its profit per employee is just about Rs 2.17 lakh. By
contrast, majority of the large public sector banks are better in terms of both these parameters.
For instance, Canara Bank has a business per employee (BPE) of Rs 4.42 crore, while Union
Bank of India's BPE is at Rs 4.36 crore and Bank of Baroda's (BoB) Rs 3.51 crore. These are
according to their respective annual reports for 2005-06. On the other hand, Canara Bank's profit
per employee (PPE) is also on the higher side at Rs 3.02 lakh. The PPEs of Union Bank and BoB
are at Rs 2.66 lakh and Rs 2.13 lakh, respectively.
"Over the years, we have been steadily losing our marketshare from about 35% in 1970s to
around 16% in 2006. Our vast network is failing to attract the new and demanding young
customers," SBI said in that statement, which is addressed to all SBI officers and employees and
aimed at changing their attitude towards customers.
The statement was jointly signed by chairman OP Bhatt, managing directors TS Bhattacharya
and Yogesh Agarwal and top office bearers of its officers and employees associations. To
address these issues, both the management and unions have agreed to work hand in hand. They
have appealed to the bank's staffs to go flat out to increase its customer base."Let us be conscious
of the customer's overall needs rather than only the transaction at hand. Let us expand our
customer base," the statement read.
The bank has nearly 37 lakh savings bank accounts in the Bengal circle itself.Meanwhile, the
country's largest and oldest bank has offered an exit option scheme (EOS) to its employees. The
bank has some 2.1 lakh staffs, out of which nearly 1.4 lakh are clerical and subordinate
employees.
?
&$!??
?
?

?? ?0
:
?*$!!$ ?&&?*? &?*$%?("??
!! ? &??
?

?
º
?? &$!-?*$&?? !&&?? 0?*$&??
89??
??
Mar ' 08 14,265.02 10,029.21 8,730.86 4,006.24 64.98
Mar ' 07 11,537.48 7,149.74 6,022.91 3,230.64 48.84
Mar ' 06 9,584.15 5,721.06 4,917.39 2,874.77 45.65
Mar ' 05 8,459.85 4,683.04 4,453.11 2,707.21 44.72
Mar ' 04 7,778.94 4,056.84 4,154.99 3,120.86 41

?? ?? ??
!?&??
?
!?&??
Mar ' 08 Mar ' 08
Mar ' 07 Mar ' 07
Mar ' 06 Mar ' 06
Mar ' 05 Mar ' 05
Mar ' 04 Mar ' 04

??
Sources of funds Uses of funds
Owner's fund Fixed assets
Equity share capital Gross block
315.3 3,699.64
315.3 2,247.74
315.3 2,106.92
315.3 1,875.65
265.3
1,645.93
Share application money Less : revaluation reserve
- 1,535.70
- 293.85
- 302.38
- 312.49
- 321.04
Preference share capital Less : accumulated depreciation
- 1,384.12
- 1,237.92
- 1,076.69
- 910.42
- 746.08
Reserves & surplus Net block
10,467.35 779.83
9,826.31 715.98
8,758.68 727.84
7,533.50 652.74
4,425.47 578.81
Capital work-in-progress
Loan funds -
Secured loans -
- -
- Investments
- 53,991.71
- 45,189.84
- 41,055.31
Unsecured loans 50,672.83
1,66,457.23 42,125.49
1,39,859.67 Net current assets
1,19,684.92 Current assets, loans &

advances
1,03,166.89
4,380.84
87,916.40
3,980.80
??
?? 3,762.79
??
?? 3,101.44
??
?? 3,261.18
??
?? Less : current liabilities &
?? provisions
??
?? 14,798.23
?? 10,178.51
??
?? 9,518.93
??
?? 12,194.80
??
?? 8,114.48
??
?? Total net current assets
??
?? -10,417.38
??
?? -6,197.71
??
?? -5,756.14
??
?? -9,093.36
??
?? -4,853.30
??
?? Miscellaneous expenses not
?? written
??
?? -
??
?? -
??
?? -
??
?? -
??
?? -
??
Total Total
1,77,239.88 44,354.15
1,50,001.28 39,708.10
1,28,758.90 36,027.01
1,11,015.69 42,232.20
92,607.16 37,850.99
Other
Materia Person Sellin Adjust
Manufactu Adminstra Expenses Cost Operati recurr
Operatin l nel g ed
? ring tive capitalise of ng ing
g income consum expens expe PBDI
expenses expenses d sales profit incom
ed es nses T
e
??
Mar ' 15,925.6 2,461. 3,732. 3,462.4 231.6 3,694.
08 5 0 - 54 23.31 1,247.47 - 33 6 2 08
-
Mar ' 12,104.2 2,352. 3,731. 2,350.0 186.6 2,536.
07 4 - 45 18.03 1,360.77 - 25 9 7 76
-
Mar ' 2,114. 3,076. 1,797.2 131.5 1,928.
06 9,791.12 - 97 20.15 941.38 - 51 3 4 77
-
Mar ' 2,121. 3,073. 2,185.5 470.6 2,656.
05 9,712.63 - 23 19.16 933.6 - 99 3 9 22
-
Mar ' 1,654. 3,429. 2,032.5 2,092.
04 9,617.34 - 06 10.85 1,764.91 - 82 3 59.85 38
-
? ? ?
Financi Non Earnigs Equit Prefere Retain
Adjust Divid
al Depreciat Adjuste Tax recur Reported before y nce ed
ed end
expens ion d PBT charges ring net profit appropria divide dividen earnin
PAT tax
es items tion nd d gs
8,730.8 3,523.8 2,047. 409.8 1,584.

6 170.23 5 1,247.15 63 1.13 2,048.76 2,064.28 9 - 69.66 73
6,022.9 2,341.9 1,539. 409.8 1,250.

1 194.8 6 629.05 33 0.76 1,540.08 1,723.57 9 - 63.11 57
4,917.3 1,742.1 1,436. 189.1 1,223.

9 186.65 2 412.83 66 2.65 1,439.31 1,439.31 8 - 26.53 60
4,453.1 2,472.9 1,409. 174.1 1,212.

1 183.28 4 495.49 50 0.62 1,410.12 1,410.12 8 - 23.48 46
4,154.9 1,910.9 1,108. 106.1 988.9

9 181.45 3 660.79 45 0.24 1,108.69 1,108.69 2 - 13.6 7
Profit loss
Cash flow
Mar ' 08
Mar ' 07
Mar ' 06
Mar ' 05
Mar ' 04
Profit before tax
3,295.91
2,169.13
2,033.87
1,904.74
1,768.68
Net cashflow-operating activity
1,756.13
-10,144.34
14,961.44
1,073.53
529.29
Net cash used in investing activity
-444.46
-159.41
-465.64
-349.83
-176.20
Netcash used in fin. activity
1,873.54
1,157.57
-793.13
1,544.81
390.24
Net inc/dec in cash and equivlnt
3,185.21
-9,146.17
13,702.66
2,268.51
743.33
Cash and equivalnt begin of year
15,645.52
24,791.69
11,089.03
8,820.51
8,077.19
Cash and equivalnt end of year
18,830.72
15,645.52
24,791.69
11,089.03
8,820.51
?*$!!$ ?&&?*? &?*$%?("??

Annual results
Operating Gross
Year Sales Interest EPS (Rs)
profit profit
??
Mar ' 09 - - 24.67 -24.63 -16.42
Mar ' 08 - - 21.36 -18.24 -12.17
Mar ' 07 0.9 0.35 21.29 -4.79 -3.19
Mar ' 06 0.44 -0.06 21.3 -21.17 -14.13
Mar ' 05 0.66 -0.03 21.3 -20.35 -13.58
Balance sheet
Mar ' 08
Mar ' 07
Mar ' 06
Mar ' 05
Mar ' 04
Sources of funds
Owner's fund
Equity share capital
15.00
15.00
15.00
15.00
15.00
Share application money
Preference share capital
Reserves & surplus

-309.56
-291.32
-286.64
-265.66
-245.35
Loan funds
Secured loans
Unsecured loans
Total
-294.56
-276.32
-271.64
-250.66
-230.35
Uses of funds
Fixed assets
Gross block
0.57
0.57
0.72
0.72
2.86
Less : revaluation reserve
Less : accumulated depreciation
0.10
0.10
0.24
0.24
1.59
Net block
0.48
0.48
0.48
0.48
1.27
Capital work-in-progress
Investments
Net current assets
Current assets, loans & advances
11.44
16.30
23.98
24.38
32.15
Less : current liabilities & provisions
306.47
293.09
296.10
275.52
263.77
Total net current assets
-295.04
-276.79
-272.12
-251.14
-231.62
Miscellaneous expenses not written
-
-
Total
-294.56
-276.32
-271.64
-250.66
-230.35
Notes:
Book value of unquoted investments
Market value of quoted investments
Contingent liabilities
0.22
0.21
0.22
10.40
10.40
Number of equity sharesoutstanding
150.00
150.00
150.00
150.00
150.00
(Lacs)
Profit loss account
Mar ' 08
Mar ' 07
Mar ' 06
Mar ' 05
Mar ' 04
Income:
Operating income
1.02
0.90
0.44
0.66
10.90
Expenses
Material consumed
-
Manufacturing expenses
0.03
Personnel expenses
0.12
0.09
0.14
0.20
0.72
Selling expenses
-
0.03
Adminstrative expenses
0.29
0.41
0.29
0.48
12.45
Expenses capitalised
Cost of sales
0.44
0.51
0.44
0.68
13.20
Operating profit
0.58
0.39
0.01
-0.03
-2.30
Other recurring income
2.53
12.16
0.10
0.79
Adjusted PBDIT
3.11
12.55
0.11
0.76
-2.30
Financial expenses
21.36
21.35
21.36
21.30
28.66
Depreciation
0.01
0.02
1.02
Other write offs
Adjusted PBT
-18.24
-8.80
-21.26
-20.56
-31.98
Tax charges
0.01
0.01
Adjusted PAT
-18.25
-8.81
-21.27
-20.56
-31.98
Non recurring items
0.01
0.08
-2.95
Other non cash adjustments
4.13
0.27
0.17
9.65
Reported net profit

-18.25
-4.67
-20.99
-20.31
-25.29
Earnigs before appropriation
-312.32
-294.08
-289.40
-268.42
-248.11
Equity dividend
Preference dividend
-
-
Dividend tax
Retained earnings
-312.32
-294.08
-289.40
-268.42
-248.11
Cash flow
Mar ' 08
Mar ' 07
Mar ' 06
Mar ' 05
Mar ' 04
Profit before tax
-18.24
-4.67
-20.98
-21.06
-25.29
Net cashflow-operating activity
-4.89
5.65
0.08
-7.02
88.19
Net cash used in investing activity
0.01
0.85
29.46
Netcash used in fin. activity
-0.46
-131.50
Net inc/dec in cash and equivlnt
-4.89
5.65
0.09
-6.64
-13.85
Cash and equivalnt begin of year
16.16
10.51
10.42
17.06
30.91
Cash and equivalnt end of year
11.27
16.16
10.51
10.42
17.06
2.9 Section
FUTURE PLANS:
PNB future plans:
PNB has initiated various steps in a bid to expand its operations in the state of Kerala.
These include opening new branches and increasing the number of its core banking
solutions branches. PNB currently has 71 CBS branches in Kerala and has registered
good growth from this region.
PNB in looking at increasing its international presence and in line with this, the
company is planning to set up offices in UK, Singapore, Hong Kong and Canada. The
Canada office is likely to open very soon, while the other locations are likely to
commence operations by end of this fiscal year.
PNB unvieled its plans to raise additional capital of Rs. 21,000 million to fund its
business expansion plans for this current fiscal.
SBI future plans:
SBI has set for itself an ambitious target of credit linking 1 million SHGs up to March
2008.The Bank has started to leverage our vast SHG network for various services
beyond credit delivery.
The State Bank of India (SBI) has formulated a ³home-grown strategy´ to merge its
six associated banks with it within this fiscal.
SBI drawn up a home-grown strategy to carry out the merger programme and we may
take up such mergers one by one, or two at a time or in a phased manner. SBI want
the future mergers to be as smooth as the merger.Post-merger, the size of SBI¶s
balance sheet will cr-oss Rs 12,00,000 crore and its profitablity will increased.
CHAPTER 3
REVIEW OF LITERATURE:
1) In august 2001 James B. Thomson and Ben R. Craig had studied about the
Federal Home Loan Bank Lending to Community Banks,are Targeted
Subsidies Necessary? The Gramm-Leach-Bliley Act of 1999 amended the
lending authority of the Federal Home Loan Banks to include advances
secured by small enterprise loans of community financial institutions. Three
possible reasons for the extension of this selective credit subsidy to
community banks and thrifts are examined, including the need to: subsidize
community depository institutions, stabilize the Federal Home Loan Banks,
and address a market failure in rural markets for small enterprise loans.
They empirically investigate whether funding constraints impact the small-
business lending decision by rural community banks. Specifically, they
estimate two empirical models of small-business lending by community banks.
The data reject the hypothesis that access to increased funds will increase the
amount of small-business loans made by community banks.
2) In December 2006 Fulbag Singh and Reema Sharma had studied about the
housing Finance in India. Housing, as one of the three basic needs of life,
always remains on the top priority of any person, economy, government and
society at large. In India, majority of the population lives in slums and shabby
shelters in rural areas. From the last decade, the Government of India has been
continuously trying to strengthen the housing sector by introducing various
housing loan schemes for rural and urban population. The first attempt in this
regard was the National Housing Policy (NHP), which was introduced in 1988.
The National Housing Bank (NHB) was set up in 1988 as an apex institution
for housing finance and a wholly-owned subsidiary of Reserve Bank of India
(RBI). The main objective of the bank is to promote and establish the housing
financial institutions in the country as well as to provide refinance facilities to
housing finance corporations and scheduled commercial banks. Moreover, for
the salaried section, the tax rebates on housing loans have been introduced.
The paper is based on the case study of LIC Housing Finance Ltd., which
analyzes region-wise disbursements of individual house loans, their portfolio
amounts and the defaults for the last ten years, i.e., from 1995-96 to 2004-05
by working out relevant ratios in terms of percentages and the compound
annual growth rates. A relevant chart has also been prepared to highlight the
results.
3) In May 18, 2007 Michael LaCour-Little had studied about the Economic Factors
Affecting Home Mortgage Disclosure Act Reporting. The public release of the 2004-
2005 Home Mortgage Disclosure Act data raised a number of questions given the
increase in the number and percentage of higher-priced home mortgage loans and
continued differentials across demographic groups. Here we assess three possible
explanations for the observed increase in 2005 over 2004: (1) changes in lender
business practices; (2) changes in the risk profile of borrowers; and (3) changes in
the yield curve environment. Results suggest that after controlling for the mix of loan
types, credit risk factors, and the yield curve, there was no statistically significant
increase in reportable volume for loans originated directly by lenders during 2005,
though indirect, wholesale originations did significantly increase. Finally, given a
model of the factors affecting results for 2004-2005, we predict that 2006 results will
continue to show an increase in the percentage of loans that are higher priced when
final numbers are released in September 2007.
4) In may 1991 Stephen F. Borde had studied about the ³Is the Savings and Loan
Industry Facing Extinction?´ This article tells about the Saving and loan crisis.
Proposed solutions are discussed in the context of the industry as it currently stands.
With a somewhat similar liability structure to that of banks (mainly short-term
deposits), the asset structure of S&Ls is quite different. Whereas banks assets
consist of short-term loans, S&L assets consist largely of long-term loans, such as
home ownership mortgages. Therefore, in the absence of adequate hedging
measures, S&Ls are more vulnerable to interest rate risk, which can lead to lower
profits when interest rates rise.
5) In June 29, 2001 Joshua Rosner had studied about the Housing in the New
Millennium: A Home Without Equity is Just a Rental with Debt.
They studied about the prospects of the U.S. housing/mortgage sector over the next
several years. Based on our analysis, we believe there are elements in place for the
housing sector to continue to experience growth well above GDP. However, we
believe there are risks that can materially distort the growth prospects of the sector.
Specifically, it appears that a large portion of the housing sector's growth in the
1990's came from the easing of the credit underwriting process. Such easing includes:
* The drastic reduction of minimum down payment levels from 20% to 0%
* A focused effort to target the "low income" borrower
* The reduction in private mortgage insurance requirements on high loan to value
mortgages
* The increasing use of software to streamline the origination process and
modify/recast delinquent loans in order to keep them classified as "current"
* Changes in the appraisal process which has led to widespread overappraisal/over-
valuation problems
If these trends remain in place, it is likely that the home purchase boom of the past
decade will continue unabated. Despite the increasingly more difficult economic
environment, it may be possible for lenders to further ease credit standards and more
fully exploit less penetrated markets. Recently targeted populations that have
historically been denied homeownership opportunities have offered the mortgage
industry novel hurdles to overcome. Industry participants in combination with eased
regulatory standards and the support of the GSEs (Government Sponsored
Enterprises) have overcome many of them.
If there is an economic disruption that causes a marked rise in unemployment, the
negative impact on the housing market could be quite large. These impacts come in
several forms. They include a reduction in the demand for homeownership, a decline
in real estate prices and increased foreclosure expenses.
These impacts would be exacerbated by the increasing debt burden of the U.S.
consumer and the reduction of home equity available in the home. Although we have
yet to see any materially negative consequences of the relaxation of credit standards,
we believe the risk of credit relaxation and leverage can't be ignored. Importantly, a
relatively new method of loan forgiveness can temporarily alter the perception of
credit health in the housing sector. In an effort to keep homeowners in the home and
reduce foreclosure expenses, holders of mortgage assets are currently recasting or
modifying troubled loans. Such policy initiatives may for a time distort the relevancy of
delinquency and foreclosure statistics. However, a protracted housing slowdown
could eventually cause modifications to become uneconomic and, thus, credit quality
statistics would likely become relevant once again. The virtuous circle of increasing
homeownership due to greater leverage has the potential to become a vicious cycle
of lower home prices due to an accelerating rate of foreclosures.
6) In dec 2002 Melissa B. Jacoby had studied about the Home Ownership Risk Beyond
a Subprime Crisis: The Role of Delinquency Management. They studied that Public
investment in and promotion of homeownership and the home mortgage market often
relies on three justifications to supplement shelter goals: to build household wealth
and economic self-sufficiency, to generate positive social-psychological states, and to
develop stable neighborhoods and communities. Homeownership and mortgage
obligations do not inherently further these objectives, however, and sometimes
undermine them. The most visible triggers of the recent surge in subprime
delinquency have produced calls for emergency foreclosure avoidance interventions
(as well as front-end regulatory fixes). Whatever their merit, I contend that a system
of mortgage delinquency management should be an enduring component of housing
policy. Furtherance of housing and household policy objectives hinges in part on the
conditions under which homeownership is obtained, maintained, leveraged, and - in
some situations - exited. Given that high leverage or trigger events such as job loss
and medical problems play significant roles in mortgage delinquency independent of
loan terms, better origination practices cannot eliminate the need for delinquency
management.
One function of this brief essay is to identify an existing rough framework for
managing delinquency. Legal scholarship should no longer discuss mortgage
enforcement primarily in terms of foreclosure law and instead should include other
debtor-creditor laws such as bankruptcy, industry loss mitigation efforts, and third-
party interventions such as delinquency housing counseling. In terms of analyzing
this framework, it is tempting to focus on its impact on mortgage credit cost and
access or on the absolute number of homes temporarily saved, but my proposed
analysis is based on whether the system honors and furthers the goals of wealth
building, positive social psychological states, and community development. Because
those ends are not inexorably linked to ownership generally or owning a particular
home, a system of delinquency management that honors these objectives should
strive to provide fair, transparent, humane, and predictable strategies for home exit as
well as for home retention. Although more empirical research is needed, this essay
starts the process of analyzing mortgage delinquency management tools in the
proposed fashion.
7) In 1999 Yoko Moriizumi had studied about the Current Wealth, Housing Purchase
and Private Housing Loan Demand in Japan.
Japanese households accumulate wealth for downpayments at a high rate. Therefore,
current wealth plays an important role in home acquisition as public loans whose
direct mortgage lending is a strong support for home purchasers. We estimate the
wealth effect on private mortgage debt as well as housing consumption by applying a
model where mortgage debt demand is derived from house purchase decisions and
is determined jointly with housing consumption. We use a simultaneous equation
Tobit estimation method. Wealth effects on private mortgage debt, likelihood of
borrowing, and housing consumption are not elastic. On the other hand, a change in
housing consumption affects the likelihood of borrowing elastically much more than
the private mortgage amount of borrowers. Housing and private mortgage markets
fluctuate very closely with the number of participants in the mortgage market.
Therefore, the number of housing starts is linked strongly to the private mortgage
market.
8) Robert B. Avery and Allen N. Berger had studied about the Loan commitments
and bank risk exposure. They studied about the Loan commitments increase a
bank's risk by obligating it to issue future loans under terms that it might
otherwise refuse. However, moral hazard and adverse selection problems
potentially may result in these contracts being rationed or sorted. Depending
on the relative risks of the borrowers who do and do not receive commitments,
commitment loans could be safer or riskier on average than other loans. the
empirical results indicate that commitment loans tend to have slightly better
than average performance, suggesting that commitments generate little risk or
that this risk is offset by the selection of safer borrowers.
9) Sumit Agarwal,Souphala Chomsisengphet and John C. Driscoll had studied

about the Loan commitments and private firms. They studied that, Most loans
are in the form of credit lines. Empirical studies of line demand have been
complicated by their use of data on publicly traded firms, which have a wide
menu of financing options. We avoid this problem by using a unique
proprietary data set from a large financial institution of loan commitments
made to 712 privately-held firms. We test Martin and Santomero's (1997)
model, in which lines give firms the speed and flexibility to pursue investment
opportunities. Our findings are consistent with their predictions. Firms facing
higher rates and fees have smaller credit lines. Firms with higher growth
commit to larger lines of credit and have a higher rate of line utilization. Firms
experiencing more uncertainty in their funding needs commit to smaller credit
lines. Almost all firms convert unused credit line portions into spot loans and
take out new lines.
10) Faik Koray and Eric T. Hillebrand had studied about the Interest Rate Volatility and
Home Mortgage Loans . they studied that The U.S. economy has experienced
substantial fluctuations in real and nominal interest rates since the 1970s. This
paper investigates empirically the relationship between home mortgage loans
and volatility in mortgage rates for the period 1971:02 through 2003:03.
Contrary to common wisdom, we find a positive relationship between mortgage
rate volatility and home mortgage loans. Further investigation indicates that
this is due to volatility in the bond market. In times of high interest volatility,
households disinvest in government securities and invest in real assets, which
yield a positive relationship between mortgage rate volatility and home
mortgage loans.
11) In nov 2000 Michelle J. White and Emily Y. Lin had studied about the
Bankruptcy and the Market for Mortgage and Home Improvement Loans. They
studied that This paper investigates the relationship between bankruptcy
exemptions and the availability of credit for mortgage and home improvement
loans. We develop a combined model of debtors' decisions to file for
bankruptcy and to default on their mortgages and show that the theory predicts
positive relationships between both the homestead and personal property
exemption levels and the probability of borrowers being denied mortgage
(secured) and home improvement loans. We test these predictions empirically
and find strong and statistically significant support when evidence from cross-
state variation in bankruptcy exemption levels is used. Applicants for
mortgages are 2 percentage points more likely to be turned down for
mortgages and 5 percentage points more likely to be turned down for home
improvement loans if they live in states with unlimited rather than low
homestead exemptions. These relationships also hold when we introduce state
fixed effects into the model.
12) In October 14, 2008 David P. Bernstein had studied about the Home Equity Loans
and Private Mortgage Insurance: Recent Trends & Potential Implications. They
studied about the the impact of increased use of home equity lines and decreased
private mortgage insurance (PMI) on mortgage markets. The data confirms that in the
years leading up to the mortgage crisis home buyers and lenders have aggressively
used piggyback loans to avoid taking out PMI on first mortgages. Multiple-mortgage
financing packages as a percent of newly originated mortgages (mortgages
originated within the previous five years) went from 14.8% in survey year 2001 to
21.5% in survey year 2007. The multiple-mortgage percentage for seasoned
mortgages (mortgages originated more than five years prior to the origination date)
also increased by a modest amount. Further comparisons reveal a large decrease in
the proportion of mortgages with PMI with the largest decreases in PMI coverage
occurring among newly originated multiple-lien packages. Data from the SCF was
used to compare five financial characteristics (credit card debt, installment loans,
consumer credit, home-owners equity, and liquid assets) for multiple-lien versus
single-lien households. The comparisons suggest single-lien households tend to have
slightly stronger financial variables than multiple-lien households. The data does not
support the view that homeowners with multiple liens are less risky and should
therefore be allowed to avoid PMI. The reduced use of PMI and the increased use of
home equity loans increased mortgage holder risk in several different ways and was
a contributing factor to the 2008 mortgage and financial crisis. This change in lending
and borrowing behavior is not a subprime market problem.
13) In aug 2007 Michael LaCour-Little had studied about the The Home Purchase
Mortgage Preferences of Low- and Moderate-Income Households. Housing
policy in the United States has long supported homeownership, yet variation
persists across income groups. This article employs recent mortgage
origination data to focus on the revealed preferences of low- and moderate-
income (LMI) households in home purchase mortgage choice. I identify the
factors associated with conventional conforming, FHA, nonprime and specially
targeted programs. Empirical results show that individual credit characteristics
and financial factors, including pricing, generally drive product choice, with
some variation evident when loans are originated through brokers. Results also
indicate that targeted conventional programs effectively compete with
government-insured products in the LMI segment.
14) In 24 oct 2008 David C. Wheelock had studied about the Government
Response to Home Mortgage Distress: Lessons from the Great. They studied
about the The Great Depression was the worst macroeconomic collapse in U.S.
history. Sharp declines in household income and real estate values resulted in
soaring mortgage delinquency rates. According to one estimate, as of January
1, 1934, fully one-half of U.S. home mortgages were delinquent and, on average,
some 1000 home loans were foreclosed every business day. This paper
documents the increase in residential mortgage distress during the Depression,
and discusses actions taken by state governments and the federal government
to reduce mortgage foreclosures and restore the functioning of the mortgage
market. Many states imposed moratoria on both farm and nonfarm residential
mortgage foreclosures. Although moratoria reduced farm foreclosure rates in
the short run, they appear to have also reduced the supply of loans and made
credit more expensive for subsequent borrowers. The federal government took
a number of steps to relieve residential mortgage distress and to promote the
recovery and growth of the national mortgage market. The Home Owners Loan
Corporation (HOLC) was created in 1933 to purchase and refinance delinquent
home loans as long-term, amortizing mortgages. Between 1933 and 1936, the
HOLC acquired and refinanced one million delinquent loans totaling $3.1 billion.
The HOLC refinanced loans on some 10 percent of all nonfarm, owner-occupied
dwellings in the United States, and about 20 percent of those with an
outstanding mortgage. The Great Depression experience suggests how
foreclosures might be reduced during the present crisis.
15) In march 2001 Tullio Jappelli and Maria Concetta Chiuri had studied about the
Financial Market Imperfections and Home Ownership: A Comparative Study.
They explore the determinants of the international pattern of home ownership
using the Luxembourg Income Study (LIS), a collection of microeconomic data
on fourteen OECD countries. In most, the cross-section is repeated over time
and includes several demographic variables carefully matched between the
different surveys. This allows us to construct a truly unique international
dataset, merging data on more than 400,000 households with aggregate panel
data on mortgage loans and down payment ratios. After controlling for
demographic characteristics, country effects, cohort effects and calendar time
effects, we find strong evidence that the availability of mortgage finance - as
measured by outstanding mortgage loans and down payment ratios - affects
the age-profile of home ownership, especially at the young end. The results
have important implications for the debate on the relationship between saving
and growth.
16) In 10 dec 2007 Irina Paley and Chau Do had studied about the Explaining the
Growth of Higher-Priced Loans in HMDA: A Decomposition Approach. The
period 2004-2005 showed a significant increase in Home Mortgage Disclosure
Act (HMDA) rate spread reporting. Following the Oaxaca (1973), Blinder (1973),
and Fairlie (2005) decomposition techniques, this study identifies the fraction
of the increase due to the flattening of the yield curve. Even after controlling for
changes in borrower risk characteristics, the findings reveal that during 2004-
2006, the flattening of the yield curve explains a significant amount of the
increase in rate spread reportable loans. This is the case for both prime and
subprime originations.
17) In feb 1 2009 Vincent W. Yao and Eric Rosenblatt and Michael LaCour-Little had
studied about the unique paired loan dataset containing information on
multiple conventional conforming mortgage loans of households to examine
home equity extraction decisions over the period 2000-2006. The main question
addressed is how much households borrow when refinancing their current
mortgage debt in a cash-out transaction. We also provide estimates of the
marginal effect of certain borrower characteristics. Results contribute both to
the literature on refinancing behavior and the role of house price appreciation
in providing funds that may be used for consumer spending or other purposes.
18) In aug 2004 Mark Carey and Greg Nini had studied about the Is the Corporate
Loan Market Globally Integrated? A Pricing Puzzle. We offer evidence that
interest rate spreads on syndicated loans to corporate borrowers are
economically significantly smaller in Europe than in the U.S., other things equal.
Differences in borrower, loan and lender characteristics associated with
equilibrium mechanisms suggested in the literature do not appear to explain
the phenomenon. Borrowers overwhelmingly issue in their natural home
market and bank portfolios display significant home "bias." This may explain
why pricing discrepancies are not competed away, but the fundamental causes
of the discrepancies remain a puzzle. Thus, important determinants of loan
origination market outcomes remain to be identified, home "bias" appears to be
material for pricing, and corporate financing costs differ in Europe and the U.S.
19) In july 2005 Gwilym B.J. Pryce and Patric H. Hendershott had studied abot the
The Sensitivity of Homeowner Leverage to the Deductibility of Home Mortgage
Interest.Mortgage interest tax deductibility is needed to treat debt and equity
financing of homes equally. Countries that limit deductibility create a debt tax penalty
that presumably leads households to shift from debt toward equity financing. The
greater the shift, the less is the tax revenue raised by the limitation and smaller is its
negative impact on housing demand. Measuring the financing response to a
legislative change is complicated by the fact that lenders restrict mortgage debt to the
value of the house (or slightly less) being financed. Taking this restriction into account
reduces the estimated financing response by 20 percent (a 32 percent decline in debt
vs a 40 percent decline). The estimation is based on 86,000 newly originated UK
loans from the late 1990s.
20) In 1 nov 2007 Marsha Courchane studied about The Pricing of Home Mortgage
Loans to Minority Borrowers: How Much of the APR Differential. The public
releases of the 2004 and 2005 HMDA data have engendered a lively debate over
the pricing of mortgage credit and its implications regarding the treatment of
minority mortgage borrowers. We provide a unique empirical assessment of
this issue by using aggregated proprietary data provided to us by lenders and
an endogenous switching regression model to estimate the probability of
taking out a subprime mortgage, and annual percentage rate ("APR")
conditional on getting either a subprime or prime mortgage. We find that up to
90 percent of the African American APR gap, and 85 percent of the Hispanic
APR gap, is attributable to observable differences in underwriting, costing and
market factors that appropriately explain mortgage pricing differentials.
Although any potential discrimination is problematic and should be addressed,
our analysis suggests that little of the aggregate differences in APRs paid by
minority and non-minority borrowers are appropriately attributed to differential
treatment.
21) In 1991 Susan M. Wachter and Paul S. Calemhad studied about the Community
Reinvestment and Credit Risk: Evidence from an Affordable Home Loan
Program.This study examines the performance of home purchase loans
originated by a major depository institution in Philadelphia under a flexible
lending program between 1988 and 1994. We examine long-term delinquency in
relation to neighborhood housing market conditions, borrower credit history
scores, and other factors. We find that likelihood of delinquency declines with
the level of neighborhood housing market activity. Also, likelihood of
delinquency is greater for borrowers with low credit history scores and those
with high ratios of housing expense to income, and when the property is
unusually expensive for the neighborhood where it is located.
CHAPTER 4
INTERPRETATION:
SBI: NO.50
1) What is your occupation?
Business man
15
Student
Government Employee
22
Other
House wife
Interpretation:-
0510152025BUSINESSMANGOVERNMENTEMPLOYEEHOUSE
WIFESTUDENTOTHERSeries1Series2Series3
o Total Number of Respondents was 46.
o 0 of our Respondents was Students.
o 22 of the Respondents were into government employees
o 15 of our Respondents were Businessman.
o 9 of our Respondents were Housewives.
o None of our Respondent belonged to the category of others.
o 4 respondents did not answer.
2)From howmany years you are associated with this bank?
Less than 1 year101-5 years 24More than 512
051015202530Less than year1-5 yearmore then 5Series1Series2

Interpretation:-
oTotal Number of Respondents was 46

o10persons are associated less than 1 year
o24persons are associated from 1-5 years.
o12persons are associated frommore than 5 years.
o
3)How do you come to know about the home loan schemes ofthat bank?
News paper18Television 14
Internet 10other resources 4
02468101214161820News paperTelevisionInternetOtherresourcesSeries1Series2
Interpretation:-

o18persons came to know from newspaper
o14persons came to know from television
o10persons cameto know from internet
o4persons came to knowfrom other resources
4)Are you aware of thesetype of home loans?
Home purchaseloan 9Home constructionloan 18Homeimprovementloan 6Home

equityloan4Land purchase loan9
02468101214161820Homepurchase loan
Homeconstructionloan
Home improvement loan
Home equityloanLand purchase loanSeries1
Interpretation:-

oOnly 4 persons know home equity loan.
oMany of peoples know home construction loan.
o9 peoples know home purchaseloan.
o6 peoples knowhome improvement loans.
5)Are you aware all termsand conditions of home loans?
Yes 40No 6
051015202530354045YesNoSeries1
Interpretation:-
oTotal Number of Respondents was 46.

oMany of persons know all terms and conditions of home loan i.e. 40.
o6 persons had not know properly about all termsand conditions.
6)Are you satisfy with theinterestratecharges by your bank?
Strongly agree12Agree30Disagree4strongly disagree0

0246810121416Strongly agree AgreeDisagreestronglydisagree
Series1
Interpretation:-

o12among all consumers are strongly agreed by interest rate of the bank.
o30among all consumers are agreed by interestrate of the bank
o4among all consumers are disagreed by interestrate of the bank
o0 among all consumers are strongly disagreed by interest rate of thebank
7)Your bank offer which type of services?
Mobile banking24Net banking15Forex banking7

051015202530Mobile bankingNet bankingForex banking
Series1
Interpretation:-

o24 persons said that bank offermobile banking services.
o15 said thatbank offer net banking services.
oOnly 7 persons said that bank offer forex banking services.
8)Do you agree that your bank loanprocessing is fast?
Strongly agree8Agree26Disagree9strongly disagree 3

051015202530Strongly agreeAgreeDisagreestronglydisagree
Series1
Interpretation:-

o8 persons strongly agreethat bank home loan processing is fast.
o26 persons agree that bank home loan processing is fast.
o9 persons disagreethat bank processing is fast.
o3 persons strongly disagree that bank processing is fast.
9)Do you satisfy with the after home loan services provided by your bank arebest as
compare to other bank?

05101520253035Strongly agreeAgreeDisagreestronglydisagree
Series1
Interpretation:-

o12among all consumers are strongly agreed by after sale services ofthe bank.
o30among all consumers are agreed by after sale services of the bank
o4among all consumers are disagreed by after sale services of the bank
o0 among all consumers are strongly disagreed by after sale services ofthe bank
10)Does the cost of homeloan is appropriate, according to your demand?
Yes 33No 13
05101520253035YesNoSeries1
Interpretation:-

o33 persons said thathome loan is appropriate according to theirdemand.
o13 personssaid that home loan isnot appropriate according to theirdemand.
11)Are you satisfy with the employees behaviour of the bank?

0510152025Strongly agree AgreeDisagreestronglydisagree
Series1
Interpretation:-

o19 persons very satisfied with the employee behaviour of thebank.
o23 persons satisfied with the employee behaviour of the bank.
o4 persons disagree with the employee behaviour of the bank.
oNo one is disagree with the employee behaviour of the bank.
o
12)Does the bank give any discount upon loan services?
Yes 40No 6
051015202530354045YesNo
Series1
Interpretation:-

o40 persons said that bank give discount upon loan services.
oOnly 6 persons said that bank does not give any discountupon loan
services.
13)Are you satisfy by the time taken in sanctioning the loan?
Yes 34No 12
0510152025303540YesNoSeries1
Interpretation:-

o34persons are satisfied by the time taken
o12persons are not satisfied by the time taken
14)Have you face any difficulty during taking theloan?
Yes 39No 7
051015202530354045YesNoSeries1
Interpretation:-

o39 persons face difficulty during taking the loan.
oOnly 7 persons does not face any difficulty during taking the loan.
15)Which grade you want to give of home loan schemes of the bank?
Excellent24Good 18Average4below average0

051015202530ExcellentGood Average belowaverage
Series1
Interpretation:-

o24 persons give excellent grade of the bank.
o18 persons gove good grade to the bank.
oOnly 4 persons give average grade to the bank.
oNo none give below average gradeto the bank.
PNB:NO.50
1)Whatis your occupation?
Business man 17Student0Government Employee23Other 0House wife 7

0510152025Businessman
StudentGovernment EmployeeOtherHousewife
Series1
Interpretation:-

o0of our Respondents was Students.
o23of the Respondents were into government employees
o17of our Respondents were Businessman.
o7of our Respondents were Housewives.
oNone of our Respondentbelonged to the category of others.
o3respondents did notanswer.
2)From howmany years you are associated with thisbank?
3)
Less than 1 year171-5 years 19More than 511

02468101214161820Less than 1year1-5 yearsMore than 5
Series1
Interpretation:-

o17persons are associated less than 1 year
o19persons are associated from 1-5 years.
o11persons are associated frommore than 5 years.
3) How do you come to know about the home loan schemes of that bank?
News paper12Television 22Internet 9other resources 4

0510152025NewspaperTelevision InternetotherresourcesSeries1
Interpretation:-
oTotalNumber of Respondents was 47

o12persons came to know from newspaper
o22persons came to know from television
o9persons came to knowfrom internet.
o4 persons came to know from other resources.
4) Are you aware of these type of home loans?
Home purchaseloan 9Home constructionloan 19Homeimprovementloan 9Home

equityloan2Land purchase loan8
02468101214161820Homepurchase loan
Homeconstructionloan
Home improvement loan
Home equityloanLand purchase loanSeries1
Interpretation:-

oOnly 2 persons know home equity loan.
oMany of peoples know home construction loan.
o9 peoples know home purchaseloan.
o9 peoples knowhome improvement loans.
5)Are you aware all terms and conditions of home loans?
Yes 34No 13
0510152025303540YesNoSeries1
Interpretation:-

oMany of persons know all terms and conditions of home loan i.e. 34.
o13 persons had not know properly about all terms and conditions.
6)Are you satisfy with the interest rate chargesby your bank?

0510152025303540Stronglyagree
AgreeDisagreestronglydisagree
Series1
Interpretation:-

o11among all consumers are strongly agreed by interest rate of the bank.
o34among all consumers are agreed by interestrate of the bank
o2among all consumers are disagreed by interestrate of the bank
o0 among all consumers are strongly disagreed by interest rate of thebank
7)Your bank offer which type of services?
Mobile banking26Net banking13Forex banking8

051015202530MobilebankingNet bankingForex banking
Series1
Interpretation:-

o26 persons said that bank offermobile banking services.
o13 said thatbank offer net banking services.
oOnly 8 persons said that bank offer forex bankingservices.
8)Do you agree that your bank loan processing is fast?

0510152025StronglyagreeAgreeDisagreestronglydisagree
Series1
Interpretation:-

o4 persons strongly agreethat bank home loan processing is fast.
o21 persons agree that bank home loan processing is fast.
o13 persons disagree thatbank processing is fast.
o9 persons strongly disagree that bank processing isfast.
9) Do you satisfy with the after home loan services provided by your bank are
best as compare to other bank?

05101520253035StronglyagreeAgreeDisagreestronglydisagree
Series1
Interpretation:-

o14among all consumers are strongly agreed by after sale services ofthe bank.
o29among all consumers are agreed by after sale services of the bank
o4among all consumers aredisagreed by after sale services of the bank
o0 among all consumers are strongly disagreed by after sale services ofthe bank
10) Does the cost of home loan is appropriate, according to your demand?
Yes 29No 18
Interpretation:-

o29 persons said thathome loan is appropriate according to theirdemand.
o18 personssaid that home loan is not appropriate according to theirdemand.
11)Areyou satisfy with the employees behaviour of the bank?

051015202530Stronglyagree
AgreeDisagreestronglydisagree
Series1
Interpretation:-

o16 persons very satisfied with the employee behaviour of thebank.
o25 persons satisfied with the employee behaviour of the bank.
o6 persons disagree with the employee behaviour of the bank.
oNo one is disagreewith the employee behaviour of the bank.
12)Does the bank giveany discount upon loan services?
Yes 35No 12
0510152025303540YesNoSeries1
Interpretation:-
oTotal Number of Respondents was47.

o35persons said that bank give discount upon loan services.
oOnly 12 persons said that bank does not give any discountupon loan
services.
13)Are you satisfy by the time taken in sanctioning the loan?
Yes 30No 17
Interpretation:-

o30persons are satisfied by the time taken
o17persons are not satisfied by the time taken
14)Have you face any difficulty during taking the loan?
Yes43No 4
05101520253035404550YesNoSeries1
Interpretation:-

o43 persons face difficulty during taking the loan.
oOnly 4 persons does not face any difficulty duringtaking the loan.
15)Which grade you want to give of home loan schemes of the bank?
Excellent18Good 20Average8below average1
640510152025ExcellentGood Average belowaverage

Series1
Interpretation:-
o Total Number of Respondents was 47.

o 18 persons give excellent grade of the bank.
o 20 persons gove good grade to the bank.
o Only 8 persons give average grade to the bank.
o 1 person give below average grade to the bank.
CHAPTER 5
5.1 Section
CONCLUSION:
All the people are availing loan facility from both the banks. No. of respondents of
SBI were 46 and 47 of SBI Bank. Peoples are relating with PNB more 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.
5.2 Section
LIMITATIONS
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 ³NAWANSHAHAR´
region only. Hence findings would not be relevant to other cities.
CHAPTER 6
REFERENCES:
Craig, Ben R. and Thomson, James B.,Federal (August 2001). Home Loan
Bank Lending to Community Banks: Are Targeted Subsidies Necessary? FRB
of Cleveland Working Paper No. 01-12. Available at SSRN:
http://ssrn.com/abstract=282410 or DOI: 10.2139/ssrn.282410
Singh, Fulbag and Sharma, Reema,(December 2006) Housing Finance in India:

A Case Study of LIC Housing Finance Limited. ICFAI Journal of Financial
Economics, Vol. 4, No. 4, pp. 63-74, December 2006. Available at
SSRN: http://ssrn.com/abstract=959359
LaCour-Little, (May 18, 2007) Michael,Economic Factors Affecting Home

Mortgage Disclosure Act. SSRN: http://ssrn.com/abstract=992815
Borde, Stephen F. May/June 1991 ,Is the Savings and Loan Industry Facing
Extinction?The Secured Lender,Vol.47.
SSRN:http://ssrn.com/abstract=151018
Rosner, Joshua (June 29, 2001).,Housing in the New Millennium: A Home

Without Equity is Just a Rental with Debt,Available at
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
Moriizumi, Yoko,Current Wealth, (dec 1999) Housing Purchase and Private

Housing Loan Demand in Japan. Journal of Real Estate Finance and
Economics, Vol. 21, Issue 1. Available at
http://ideas.repec.org/p/fip/fedcwp/9015.html
http://ideas.repec.org/p/fip/fedgfe/2004-27.html
Hillebrand, Eric T. and Koray, Faik,Interest Rate Volatility and Home

Mortgage Loans. Applied Economics, Forthcoming. Available at SSRN:
http://ssrn.com/abstract=923358
Lin, Emily Y. and White, Michelle J. (November 2000),Bankruptcy and the
Market for Mortgage and Home Improvement Loans. Michigan Law and
Economics Research Paper No. 00-013. Available at SSRN:
http://ssrn.com/abstract=252699 or DOI: 10.2139/ssrn.252699
Bernstein, David P. (October 14, 2008) ,Home Equity Loans and Private
Mortgage Insurance: Recent Trends & Potential Implications. Available at
LaCour-Little, Michael,The Home Purchase Mortgage Preferences of Low-
and Moderate-Income Households. Real Estate Economics, Vol. 35, No. 3, pp.
265-290, Fall 2007. Available at SSRN: http://ssrn.com/abstract=1007862 or
DOI: 10.1111/j.1540-6229.2007.00190.x
Wheelock, David C(October 24, 2008)..,Government Response to Home
Mortgage Distress: Lessons from the Great Depression.Federal Reserve Bank
of St. Louis Working Paper No. 2008-038A. Available at
Chiuri, Maria Concetta and Jappelli, Tullio, (March 2001) Financial Market
Imperfections and Home Ownership: A Comparative Study. CEPR Discussion
Paper No. 2717. Available at SSRN: http://ssrn.com/abstract=264399
Do, Chau and Paley, Irina,Explaining the Growth of Higher-Priced Loans in
HMDA: A Decomposition Approach. Journal of Real Estate Research, Vol. 29,
No. 4, 2007. Available at SSRN: http://ssrn.com/abstract=1030058
LaCour-Little, Michael, Rosenblatt, Eric and Yao, Vincent W.(February 1,
2009).,Home Equity Extraction by Homeowners: 2000-2006. Journal of Real
Estate Research, 2009. Available at SSRN: http://ssrn.com/abstract=1336049
Nini, Greg and Carey, Mark, (August 2004) Is the Corporate Loan Market
Globally Integrated? A Pricing Puzzle. FRB International Finance Discussion
Paper No. 813. Available at SSRN: http://ssrn.com/abstract=585742
Hendershott, Patric H. and Pryce, Gwilym B.J. (July 2005).,The Sensitivity of
Homeowner Leverage to the Deductibility of Home Mortgage Interest.NBER
Working Paper No. W11489. Available at
Courchane, Marsha, (November 1, 2007). The Pricing of Home Mortgage
Loans to Minority Borrowers: How Much of the APR Differential Can We
Explain? Available at SSRN: http://ssrn.com/abstract=1374872
Calem, Paul S. and Wachter, Susan M. (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
CHAPTER 7
QUESTIONNAIRE:
Name____________
Qualification_________
Age 18-25 . 25-35. 35-40. Above .
Gender_________
16) What is your occupation?
Business man . Government employee .

House wife . Student .
Other .
17) From how many years you are associated with this bank?
Less than 1 year . 1-5 .

More than 5 year .
3) How do you come to know about the home loan schemes of this bank?
News paper . Television .

Internet . Other resources .
4) Are you aware of these type of home loans?
Home purchase laon . Home construction loan .

Home improvement loan . Home extention loan .
Home equity loan . Land purchase loan .
5) Are you aware all terms and conditions of home loans?

Yes . No .
6) Are you satisfy with the interest rate charges by your bank?
Strongly agree . Agree .

Strongly disagree . Disagree .
7) Your bank offer which type of services ?
Mobile banking . Net banking .

Forex banking .
8) Do you agree that your bank loan processing is fast?

9) Do you satisfy with the after home loan services provided by your bank are best
as compare to other bank?

10) Does the cost of home loan is appropriate, according to your demand?
Yes . No .
11) Are you satisfy with the employees behaviour of the bank?

12) Does the bank give any discount upon loan services?
Yes . No .
13) Are you satisfy by the time taken in sanctioning the loan?
Yes . No .
14) Have you face any difficulty during taking the loan?
Yes . No .
If yes then specify___________________________
15) Which grade you want to give of home loan schemes of your bank?
Excellent . Good .
Average . Below average .
16) Any suggestions that you want to give___________________________________
_____________________________________________________________________

MRP Satish

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c  

  c  c  

SYNOPSIS OF MAJOR RESEARCH PROJECT

There are different types of home loan:-

º? Home Purchase Loans

º? Design of the house

)$? !&?*?? )&!$!?!:

º? . To study the cost of home loans provided by the bank.

$-!?*?"?The research will be exploratory in nature. A population of peoples

 $!-?&,"#The sampling method will be probabilistic sampling more specifically

2 ?  ? ?"??

U? State Bank of India

? ?  

Mar ' 07 11,537.48 7,149.74 6,022.91 3,230.64 48.84

Mar ' 06 9,584.15 5,721.06 4,917.39 2,874.77 45.65

Mar ' 05 8,459.85 4,683.04 4,453.11 2,707.21 44.72

Mar ' 04 7,778.94 4,056.84 4,154.99 3,120.86 41

Mar ' 07 Mar ' 07

Mar ' 06 Mar ' 06

Mar ' 05 Mar ' 05

Mar ' 04 Mar ' 04

Owner's fund Fixed assets

Equity share capital Gross block

Share application money Less : revaluation reserve

Preference share capital Less : accumulated depreciation

Reserves & surplus Net block

Unsecured loans 50,672.83

1,39,859.67 Net current assets

1,19,684.92 Current assets, loans &

8,730.8 3,523.8 2,047. 409.8 1,584.

6,022.9 2,341.9 1,539. 409.8 1,250.

4,917.3 1,742.1 1,436. 189.1 1,223.

4,453.1 2,472.9 1,409. 174.1 1,212.

4,154.9 1,910.9 1,108. 106.1 988.9

Profit before tax

Net cashflow-operating activity

Net cash used in investing activity

Netcash used in fin. activity

Net inc/dec in cash and equivlnt

Cash and equivalnt begin of year

Cash and equivalnt end of year

?*$!!$ ?&&?*? &?*$%?("??

Mar ' 08 - - 21.36 -18.24 -12.17

Mar ' 07 0.9 0.35 21.29 -4.79 -3.19

Mar ' 06 0.44 -0.06 21.3 -21.17 -14.13

Mar ' 05 0.66 -0.03 21.3 -20.35 -13.58

Equity share capital

Share application money

Preference share capital

Reserves & surplus

Less : revaluation reserve

Less : accumulated depreciation

Net current assets

Current assets, loans & advances

Less : current liabilities & provisions

Total net current assets

Miscellaneous expenses not written

Book value of unquoted investments

Market value of quoted investments

Number of equity sharesoutstanding

Profit loss account

Other recurring income

c

c c

)$? !&?*?? )&!$!?!:

$-!?*?"?The research will be exploratory in nature. A population of peoples

$!-?&,"#The sampling method will be probabilistic sampling more specifically

2 ? ? ?"??

? ?

?$!!$ ?&&?? &?*$%?("??

Singh, Fulbag and Sharma, Reema,(December 2006) Housing Finance in India:

LaCour-Little, (May 18, 2007) Michael,Economic Factors Affecting Home

Rosner, Joshua (June 29, 2001).,Housing in the New Millennium: A Home

Moriizumi, Yoko,Current Wealth, (dec 1999) Housing Purchase and Private

Hillebrand, Eric T. and Koray, Faik,Interest Rate Volatility and Home