Project Report Mba

AXIS BANK LTD (RETAIL ASSET MANAGEMENT)
SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE DEGREE OF MASTER OF BUSINESS ADMINISTRATION TO SIKKIM MANIPAL UNIVERSITY, DIRECTORATE OF DISTANCE EDUCATION, INDIA
SUBMITTED BY
NAME ROLL NUMBER COURSE / SEMESTER LC NAME & CODE : : : :
ASHIM SAHA
520838870 MBA/ 4TH SEM. STAR TECHNOLOGIES (01786)
RETAIL ASSET MANAGEMENT OF AXIS BANK LTD
PROJECT REPORT
-2-
ACKNOWLEDGEMENT
As a requirement for the MBA course, I feel greatly honoured for having done my training with AXIS BANK LTD, RAC. I am really grateful to my guides Mr. Sudipto Paul
Retail Asset Centre Head, Mr. Arijit Sadhu, Deputy Manager Recovery and Risk Management Head, Mr. Sevoke Road Branch for guiding and providing me with necessary help throughout the project. Without their critical and timely suggestion this project would never have been possible. I would also like to thank other staffs of the bank for their kind help and co-operation. I would like to thank my most affectionate and Beloved Friends and Brother without whose blessings and encouragement this project work would not have completed.
Place: Siliguri Date:
_______________ ASHIM SAHA (Regd.Number: 520838870)
CONTENTS
Chapter~1 Page No.
PROJECT REPORT
-3-
I. II. III IV V
A BRIEF INTRODUCTION ABOUT COMPANY~~~~~~~~~~~~~~~~ 6 OBJECTIVE OF THE STUDY~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~ ~ 7 SUMMERY OF THE PROJECT~~~~~~~~~~~~~~~~~~~~~~~~~~~~~8 RESEARCH DESIGN / METHODOLOGY~~~~~~~~~~~~~~~~~~~~~9 REVIEW OF LITERATURE~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~13
Chapter~2 I II III LOAN AVENUES: AN OVERVIEW~~~~~~~~~~~~~~~~~~~~~~~~~15 List of Table and Illustration~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~5 ABBREVIATIONS ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~31
Chapter~3 PRODUCT AND POLICY I) II) III) IV) V) Chapter~4 LOAN PROCESS I. II. III. IV. CROSS SELL PROCESS~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~74 LOAN PRE-SANCTION PROCESS~~~~~~~~~~~~~~~~~~~~~~~76 OPPS PROCESS FLOW~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~78 Dos & Donts in AOPS~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~80 MORTGAGE- HL LAP LRD NRI RML~~~~~~~~~~~~~ 33 AUTO LOAN~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 48 PERSONAL LOAN~~~~~~~~~~~~~~~~~~~~~~~~~~ 61 LOAN AGAINST MUTUAL FUNDS~~~~~~~~~~~~~~~67 LOAN AGAINST SHARES~~~~~~~~~~~~~~~~~~~~~68
Chapter~5 I. II. III. CONTACT CENTRE~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~81 SCOPE OF ACTIVITY~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~82 CENTERLISED MONOTORING~~~~~~~~~~~~~~~~~~~~~~~~~85
Chapter~6 I. COLLECTION POLICY~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~86 II. ANNUAL FINANCIAL RESULTS~~~~~~~~~~~~~~~~~~~~~~~~90 Chapter~7 I II III IV IV V FINDINGS AND SUGGESTIONS~~~~~~~~~~~~~~~~~~~~~~~~93 LIMITATIONS~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~94 QUESTIONNARIES ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~95 CONCLUSION~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~98 REFERENCES~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~99 GLOSSARY~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~100-103
PROJECT REPORT
-4-
LIST OF TABLE AND ILLUSTRATIONS

TABLE-1 Product and interest rate (page23)
TABLE -2: Distribution of Govt. Employees and self employed by demography (page 23) TABLE -3: Loan Amortization mode 24) TABLE -4: Different Age group of respondent 26) TABLE -5: Profession of respondent regarding personal loan (page-26) TABLE -6: Profession of respondent regarding home loan (page 27) TABLE -7: 28) Annual income-Salaried page (page
(page
TABLE-8: Annual income-Self employed TABLE-9: Delay payment of loan EMI 29)
(page28) (page
PROJECT REPORT
-5-
A BRIEF ABOUT COMPANY Axis Bank was the first of the new private banks to have begun operations in 1994, after the Government of India allowed new private banks to be established. The Bank was promoted jointly by the Administrator of the specified undertaking of the Unit Trust of India (UTI - I), Life Insurance Corporation of India (LIC) and General Insurance Corporation of India (GIC) and other four PSU insurance companies, i.e. National Insurance Company Ltd., The New India Assurance Company Ltd., The Oriental Insurance Company Ltd. and United India Insurance Company Ltd. The Bank today is capitalized to the extent of Rs. 405.17 crores with the public holding (other than promoters and GDRs) at 53.09%. The Bank's Registered Office is at Ahmedabad and its Central Office is located at Mumbai. The Bank has a very wide network of more than 1000 branches and Extension Counters (as on 31st March 2010). The Bank has a network of over 4055 ATMs (as on 31st March 2010) providing 24 hrs a day banking convenience to its customers. This is one of the largest ATM networks in the country. The Bank has strengths in both retail and corporate banking and is committed to adopting the best industry practices internationally in order to achieve excellence.
PROJECT REPORT
-6-
OBJECTIVE OF THE STUDY Service Guarantee Login to Sanction Sanction to Disbursement Post Disbursement Queries Customer Sourcing to Sanction Need to move to system based processing Enables faster decisions Capture maximum data of the customer online Helps keep track of TAT Key Focus Areas
PROJECT REPORT
-7-
SUMMARY OF THE PROJECT

This research intends to investigate the relationships of service quality with customer satisfaction , customer loyalty and solvency of Axis Bank. It is a correlation study which measures the correlation between customer satisfaction __customer loyalty and customer profitability_customer solvancy.The sample for this study is 100 Axis Bank RAC (Retail Asset Center)customer, on which I interact with 70 personal loan user customer, whom I visited in the Axis Bank.Then I distributed my own prepared questionnaires. During this study I found that interest rate on personal loans are mush higher for this the bank does not have anything to sell off and reclaim the loan in case a borrower defaults. Hence defaults tends to be more common in case of Personal loan. In a Home loan , if the borrower defaults, the bank can sell the house and claim its portion of the funds. In case of a Car loan, Car can be recovered and sold.I also found some customer have 3 or 4 overdue till now. After collecting these data I will analyzed by using the statistical tools such as regression analysis and Amortisation model, and Solvency correlation analysis. I will also be find out EMI(equitable monthly installment),loan index.
PROJECT REPORT
-8-
RESEARCH DESIGN / METHODOLOGY

This study follows the Quasi Experimental method that
characterizes the servey(field) procedure.This is because the poinions of individual Axis Bank customers are sought, and utilized as basis for analusis ans conclution. The work utilizes the questionnaire as the vital reserch instrument. The questionnaire contains questions that cover the major research thrusts of the study.Some questions are open-ended while others are multiple choice. The Likert procedure qas utilized where applicable for relevant questions. SAMPLE DESIGN A part of the population is known as sample. The process of drawingf a sample from a large population is called the sampling.The sample design is formulated in siliguri. The idea is to targtet prospective customers, therfore considerable stress has been given on aurveying the people residing and working arround the bank, so that the prospective sustomers of the branch can be identified(along with the servey) and tapped.
PROJECT REPORT
-9-
SAMPLE SIZE The sample size of the emperical investigation is 100. SAMPLING TECHNIQUE There are several method of sampling. The methods are follow----1. Observation method 2. Questionaries method 3. Statistical tools i. ii. iii. iv. iv. v. vi. Frequency distribution mean median mode standard deviation percentage correlation analysis.
PROJECT REPORT
- 10 -
4.Loan amortisation Schedule 5.Calcutalating EMI(equitable monthly installment) 6.Solvency Index SOURCES OF DATA Sources of data can be of two types they are.. 1.Primary data 2.Secondary data
PRIMARY DATA Primary data is collected directly from respondents using data collection methos like servey intervview, questionaries, measurements, direct observation.The collection of primary data for business research is important to assist management in decision-making.
PROJECT REPORT
- 11 -
SECONDARY DATA Secondary data is the data that already exist which has been collected by of some other person data or organization.Sources secondary including
websites,Journals,books.
Sampling Plan: The study is based on primary data. Till date I am collecting sampling data through open and close ended questionnaire with five point rating scale: 5= Strongly Agree, 4= Agree, 3=Neutral, 2=Disagree, 1=Strongly Disagree.
PROJECT REPORT
- 12 -
REVIEW OF LITERATURE Axis Bank is the third-largest private sector bank in India in terms of asset size, with a balance sheet of INR 1.21 tn. It has a network of 729 branches and extension countersacross the country.The bank earns substantial fee income from transaction and merchant banking activities.The key promoter UTI-I (special undertaking) holds 27.5%, LIC holds 10.4%, and the rest is widely held by FIIs and public. Change in management may affect the pace of growth and profitability. Execution risk of its retail and international businesses is the key risk of Axis Bank. The risk management function acts as the gatekeeper, drawing the line on acceptable levels of risk - risk appetite - by setting cut-offs. This is wearing a marginal hat: the cutoff is the margin. For standard retail products it may conveniently be set in terms of PD, although more completely it would be an expected loss calculation. To caricature this risk manager, he doesnt mind how profitable the applicants are, as long as they are just above the cut-off.The business will be looking at the overall profitability of the product/campaign/portfolio whatever. The business manager is more likely to phrase his risk appetite targets in terms of average PD. To caricature the business manager, he doesnt mind if a number of poor decisions are made around the margins as long as the venture as a whole makes a good
PROJECT REPORT
- 13 -
return.Business situation in the credit
market concerns
financial agreements where the creditor evaluate the potential of fulfilled liabilities. The evaluation process concerns the business and financial conditions with the objective to estimate the credit risk or the credit worthiness of the applicant in order to make a seccessful businesss decisions.Internal information such as historical business records and other business considerations such as approval rate and bad rate should be included if avail able in order to perform a be comprehensive evaluation .The credit applicant could loan, personal loan, car loan. So is the setting of risk appetite about trying to decline applicants below a certain marginal PD, or is it about trying to achieve a certain average PD for the accepts? Complicating the discussion is the role played by
consumer or company related such as mortgage loan ,home
volume. Higher cut-offs naturally mean lower volumes of successful applicants and this frustrates the assumptions on the business case.
PROJECT REPORT
- 14 -
LOAN AVENUES: AN OVERVIEW LOAN POLICY : Bank are business institutions with the undoubted objective of earning profits. In the regard, the loan portfolio is the one that holds all the aces. Banks wish to sustain their earnings, by considerint the extent of importance attached to loan portfolio. As a result banks charting out a loan policy is all the more challenging in view of the need to work out a trade- off between banks priorities like profitability, liquidity, volume of business and risk levels against the requirements ato adhere to regulations.
LOAN PRICING :
The objectives of loan pricing
1.Maintain Fixed vs. Floating rate pricing. 2.Maintain market influence on loan pricing. 3.Balance risk reward profile and ensure market rate.
Axis Bank needs to arrive at the appropriate loan price depending on the operational environment of both the bank and the customer. This involves performing the customer profitability analysis.
CUSTOMER PROFITABILITY ANALYSIS: Banks usually have a rich repository of customer information which, if utilized appropriately, can be very predictive of future customer behavior. Using advanced statistical analysis, tools may be developed that will allow multiple variables to be used for
PROJECT REPORT
- 15 -
decision making. Specifically, to address the shortcomings of the matrix approach, banks should make individual risk adjustments at the customer account level within their customer profitability models. The logic for making such an adjustment is no different than that which has been driving improvements in customer profitability measurement in recent years. Just as banks have diligently measured other elements of the profitability equation at the customer account level (e.g., cost of funds, account fees, transaction costs, etc.), they should now focus on attributing risk at the individual level. Below are the steps required to develop a risk-adjusted customer profitability model. 1. Identify significant predictive variables. In addition to credit bureau and behavior scores, banks have a wealth of customer data that can be used to increase the accuracy with which they estimate the likelihood that their customers will default on their credit obligations. Advanced multivariate regression techniques can easily identify the most significant variables from the vast number of predictor variables available on the customer databases. The dependent variable is credit default and potential independent variables come from the banks entire repository of customer data, including account information (balance, time on books, other products held), behavioral data (payment history, credit utilization), and available demographic and psychographic data. Regression analysis will identify those variables that have the power to explain the probability of credit default. Most banks will be surprised to discover the predictive power of the data residing in their own customer information files.
PROJECT REPORT
- 16 -
2. Build probability of charge-off model (scorecard). After identifying the variables most predictive of customer default, the next step is to build a probability of charge-off model -- or scorecard. The scorecard uses the predictive variables, along with historical customer charge-off data, to arrive at a probability of charge-off for every customer. Specifically, the model is developed using statistical software tools to query the customer information file with data for the past 12 or 24 months. The query returns the average incidence of default for every combination of the predictive variables. Visually, the model would appear as a multidimensional object with each cell representing the probability of charge-off for customers possessing particular characteristics represented by the predictive variables. For example, a customer with a home equity line of credit, who has been on the books for 14 months, who frequently draws the line to its limit, and who also has a checking account at the bank, may have a 1.17 percent probability of charge-off over the next 12- or 24-month period.
3. Incorporate risk adjustment. After developing the scorecard, the charge-off probabilities should be incorporated into the customer profitability calculation by applying a probability of charge-off to each customer account. The mechanics of this step are generally the same for most profitability metrics, including customer contribution, net income after capital charge (NIACC), or lifetime value. Essentially, the risk adjustment is carried out by substituting an account level loan loss provision and an account level capital charge for the their product level counterparts in the existing profitability calculation.
PROJECT REPORT
- 17 -
For customer Jane Doe, account level loan loss provision is equal to Janes probability of charge-off multiplied by the outstanding balance on her loan (or the dollar limit on a revolving credit product) minus the expected recovery for secured products. For example, if Jane has a probability of charge-off equal to 3.39 percent, an outstanding loan balance of $7,555, and an expected recovery rate of 80 percent, her account level loan loss provision is equal to $51.22 ( [$7,555 x 3.39%] x [1-80%] ), or $4.27 on a monthly basis. This amount replaces the product-driven loan loss provision in most profitability models. To derive the account level capital charge, each customer must be assigned a risk factor, which is also derived from the probability of charge-off model. The risk factor is calculated by dividing the customers account level loan loss provision by the total outstanding balances (less expected recovery) for that product. The resulting risk factor represents the percentage of total risk for that product represented by each customer. Next, account level capital charge is derived by multiplying the risk factor by the total capital allocated to that product. It is important to note that although this process may seem like a substantial undertaking, it is likely that other departments within the bank are probably already performing some of these steps for other functions. For example, during the loan approval process, most banks use scorecards akin to the probability of charge-off model described above. Similarly, the bank often analyzes the existing customer base for risk management purposes. Therefore, adding a customer level risk adjustment to the existing customer profitability model may simply involve leveraging existing techniques in other parts of the bank.
PROJECT REPORT
- 18 -
It is also important to note that there are several critical prerequisites for successfully implementing a risk adjusted profitability model. These include: Mastering the basics. Guarantee that the fundamentals of profitability analysis, such as activity-based costing, funds transfer pricing, and risk-adjusted capital allocation, are correct. Warehousing the data. Design a customer database with accurate data that is regularly updated and validated. Acting on the information. Ensure the availability of technology that will communicate the customer knowledge from the Risk Adjusted Profitability Model to the front-line customer service representatives so that it is used at the time of customer contact.
COMPETITIVE ADVANTAGE: Successful retail banks are devoting as much time and effort to customer retention as they are to new customer acquisition. Retaining profitable customers and devising successful strategies to increase the value of unprofitable customers will be the single largest source of competitive advantage in the coming years. Achieving this competitive advantage requires that banks have the ability to accurately identify their high value customers. Traditionally, customer profitability analysis has not adequately incorporated credit risk at the individual level. By developing risk-adjusted customer profitability metrics that take full advantage of new technology and the wealth of customer data available in most institutions, banks will ensure that their retention efforts are truly targeted at the most profitable customers.
PROJECT REPORT
- 19 -
LOAN ACCOUNT: With the help of a well laid down loan policy, a tight appraisal mechanism and a suitable pricing model, it may appear that a bank has taken a prudent lending decision. Neverthelessm since the cash inflows from the loan installments are mostly related to the future cash inflows of the borrower, there will be an element of uncertainty related to the returns of the bank.
LOAN REPAYMENT SCHEDULE :All issues related to the repayment of the loan will clearly stated in the loan agreement. Apart from the interest rate the loan agreement will also comment on the repayment schedule. The repayment schedule will be drawn by considering the cash flows of the borrower which inturndepend on the Debt Service Converag Ration(DSCR) CREDIT RISK: A counter party failure in performing the repayment obligation on due date gives rise to low quality assets which in turn lead to credit risk. Like the interest rate risk and the liquidity risk, credit risk is also an inherent feature of any firm that is into the business of lending funds either to individuals or tocorporates. Effective management of credit risk involves the following key principles: 1.Evaluation 2.Pricing 3.Monitoring The effective credit risk management necessitates that various risks arising out of deficiency in lending policy, incorrect product structuring, inadequate loan asreeinin and documentation, ineffective post-sanction ,monitoring/ follow-up and weak collection/ recovery mechanism are addressed adequately and in time. And like traditional lending , the bankers while taking lending decisions of loans should strictly adhere to the five Cs of credit i.e character, capacity,credit, convenants and collateral.As a risk mitigating measure, the RBI has recently advised banks:
PROJECT REPORT AXIS BANK LTD (RETAIL ASSET MANAGEMENT)
- 20 -
1.To keep the exposure of unsecured loans/guarantees within safe limits. 2.To increase provisioning of unsecured NPV standard category from10% to20%. under sub-
3.To increase risk weight on home loan from50 to75% and personal and consumer loan from100% to125%. PROBLEM LOANS: Frequent delay nd defaults in payment that is reflected in the loan account will be awarning signal for the bank. If the bank does not act promptly for such delays, there may be degaults leading further degeneration in the quality of the loan and thus create problem loans. Identifying problem loans: Identification of problem loans most importantly require timely access to information and the ability to analyze them. When the bank has the requisite systemsin place to provide the loan officers with the necessary information, it not only enables them to trace the early warnin signals of loans but also enables them to take swift measures to prevent the deterioration of the loan quality. This highlights the need for systematic data collection in credit management. Details on the folling can provide crucial insights into the post sanction ,monitoring appraisal system employed by the bank and will enable the bank to identify early warning signals for a problem loan: 1.Submission of financial statements-Balance sheet, Profit and Loss and Cash Flow Statement. 2.Submission of quarterly/half-yearly statements. 3.Submission of periodic stock statements. 4.Frequency of as hoc limits to meet the cash commitments. 5.Reflection of purchase and sales into the account. 6.Avarage delay in payment of installemts. 7.Clients projections and performance.
PROJECT REPORT
- 21 -
RETAIL LOAN AND INTEREST RATE RISK: In Siliguri retail loan can be classify three way1.Home Loan 2.Personal Loan 3.Car Loan Interest rate risk is another area to address. In the past twothree years, banks have built up housing loan portfolio, which carry7.5% to9.5% interest.But now it carry 14.75 to 11.25% on fixed rate basis.Housing loan are large tanures say 15 to20 years.Axis Bank offers 20.5% to 13.5% interest rate in case of Personal loan and 11.5% in case of Car loan.
PROJECT REPORT
- 22 -
Table no 1 Product(tenure) Home Loan Fixed Rate (20 Years) Personal Loan (5 Years) Home Loan Floating Rate (20 Years) Car loan(4 years)
Interest rate 11.25% - 14.75% 13.5% - 20.5% 9.75% - 12.5% 11.5%
CREDITORS PROFILE The personal as well as profile factors influence to leand in formulating their leanding pattern. An high profile person perceiving an lend differs from an low profile one. Similarly, the factors such as age, marital status or family size wield their own influence on the perceptual process. A young unmarried person for instance, prefers to take loan in more tenure more capital, whereas an aged person with a family responsibility prefers more or less tenure and less capital and steady incomegenerating avenues. Table No. 2 Distribution of Govt. employees and self employed by demographic Factor No. of Respondents Investor Particulars Total (100) (%) Male 94 94 Sex Female 6 6 CA,MBA 22 22 Academic Graduate or post Qualification Graduate 48 48 DOCTOR 30 30 25-35 42 42 36-45 38 38 Age 46-55 12 12 56-65 0 0 Married 77 77 Marital Status Unmarried 23 23 Annual income below Rs.100000 11 11
PROJECT REPORT
- 23 -
Annual savings
Rs.100000Rs.200000 Above Rs.200000 Less than Rs.25000 Rs.25001-Rs.50000 Above Rs.50000
75 14 40 43 17
75 14 40 43 17
EMPIRICAL ANALYSIS EMI=R/12=44,455 Where, R=15000000/ (PVIFA 18.50%,4) AXIS BANK LTD LOAN AMOTIZATION MODEL TENURE 48 PF 2%(.25WAIVED) ROI 18.5% FOUR CLOSUR 4%ON O/S CHARGE PRI.AMT(2% WAIVED BY COMPETENT AUTHORITY) EMI 44455 LOAN AMOUNT 15,00,000 LOAN A/C Month 0 1 2 3 4 5 6 7 8 9 10 11 Principal PrincipalO/s Repaid 1500000 1500000 1478670 1457010 1435017 1412685 1390009 1366983 1343601 1319860 1295752 1271273 21330 21330 21330 21330 22332 22676 23026 23381 23742 24108 24479 24859 Interest 23125 22796 22462 22123 21779 21429 21074 20714 20348 19976 19599 19216 EMI 1500000 44,455 44,455 44,455 44,455 44,455 44,455 44,455 44,455 44,455 44,455 44,455 44,455
PROJECT REPORT
- 24 -
12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48
1246417 1221177 1195548 1169524 1143099 1116266 1089020 1061354 1033261 1004735 975769 946357 916491 886165 855371 824103 792352 760113 727376 694134 660380 626105 591302 555963 520079 483641 446642 409072 370923 332186 292852 252912 212355 171174 129357 86896 43780
25240 25629 26024 26425 26833 27246 27666 28093 28526 28966 29412 29866 30326 30794 31268 31750 32240 32737 33242 33754 34275 34803 35339 35884 36437 36999 37570 38149 38737 39334 39941 40556 41182 41816 42461 43116 43780
18826 18431 18030 17623 17209 16789 16363 15929 15929 15490 15043 14590 14129 13662 13187 12705 12215 11718 11214 10701 10181 9652 9116 8571 88018 7456 6886 6307 5718 5121 4515 3899 3274 2639 1994 1340 675
44,455 44,455 44,455 44,455 44,455 44,455 44,455 44,455 44,455 44,455 44,455 44,455 44,455 44,455 44,455 44,455 44,455 44,455 44,455 44,455 44,455 44,455 44,455 44,455 44,455 44,455 44,455 44,455 44,455 44,455 44,455 44,455 44,455 44,455 44,455 44,455 44,455
PROJECT REPORT
- 25 -
ANALYSIS OF THE STUDY Interpretation of data using graphs Respondents Age: About 46% of the customer were under the age group 31 and 45 closely followed by the age group under 30 with 43%. Though the people among the age 31-45 invest more, the volume of their taking loan is relatively lower compared to that of the fewer than 30 age group (Following table). Age Under 30 31-45 46-60 60 and above Total Age Group of Respondent No. of People Percent (%) 39 43 41 46 7 8 3 3 90 100
Profession of the Respondents : In my Interim report I am able to found the difference between the customer profiles depends on Customer occupation . This comparative study prepares only the help of Questionnaire method. In my Questionnaire process I have found various type of profession of the respondent. Example: Doctor, Engineer, Government Service, Business, Stock Broker, Banking etc. And their respondent regarding loan is given bellow by Pie Chart. Profession of Respondents regarding Personal loan Doctor Enginee Accountan Business Govt. Stock Softwar r t Service Broker e 5% 10% 6% 4% 55% 1% 2% Bankin g 3%
PROJECT REPORT
- 26 -
PROFETIONAL RESPONDENT REGARDING Home loan Doctor Enginee Accountan Business Govt. Stock Softwar r t Service Broker e 5% 20% 12% 16% 9% 5% 5%
Bankin g 15%
PROJECT REPORT
- 27 -
Annual income(Salaried): Annual income decides the value of the customer made by their salary. Annual Income of the Respondent Annual income No. of people Percent (Lakh) <1 3 3 1-3 31 34 3-5 37 41 5-10 14 16 10+ 5 6 Total 90 100
Annual income(SELF EMPLOYED): Annual income decides the value of customer depending upon their income tax return file. Annual Income of the Respondent Income tax file No. of people Percent return (Lakh) <1 37 41 1-3 31 34 3-5 15 16 5-10 4 4 10+ 2 2 Total 90 100
PROJECT REPORT
- 28 -
DELAY PAYMENT OF LOAN EMI SCHEME DESCRIPTION PERSONAL POWER PERSONAL POWER PERSONAL POWER PERSONAL POWER CAR LOAN CAR LOAN CAR LOAN CAR LOAN CAR LOAN PROFILE BUSINESSMAN BUSINESSMAN SALARIED SERVICE GOVERNMENT SECTOR SERVICE PRIVATE SECTOR BUSINESSMAN BUSINESSMAN BUSINESSMAN BUSINESSMAN INTERE ST RATE 21.5 21.5 23.5 20.5 14.5 11.75 12.6 11.75 11.75 LOAN TENURE
LAST PAYMENT DATE BUC
48 30.11.2007 90-1
36 21.11.2007 90-1
48 22.11.2007 30-6 36 23.11.2007 48 48 48 48 48 24.11.2007 25.11.2007 21.11.2007 24.11.2007 25.11.2007
90-1 0-30 0-30 0-30
PROJECT REPORT
- 29 -
PROJECT REPORT
- 30 -
ABBREVIATIONS
AAA ALM ATM BIS CCIL CIBIL CRM Demat DSAs ECS EFT EMI FS GDP FDI HNIs IDRBT
Anytime, Anywhere, Anyhow Asset Liability Management Automated Teller Machine Bank of International Settlements Clearing Corporation of India Ltd. Credit Information Bureau of India Ltd. Customer Relations Management Dematerialize Direct Selling Agents Electronic Clearing System Electronic Funds Transfer Equated Monthly Instalment Scheme Financial services Gross Domestic Product Foreign Direct Investment High Networth Individuals Institute for Development and Research in
PROJECT REPORT
- 31 -
Banking Technology
IT KYC MIS MNC NPA NSDL OBC PLR PSUs PSB RBI SMEs SCIs UK
Information Technology Know Your Customer Management Information System Multi-national Corpporation Non-Performing Asset National Securities Depository Limited Other Backward Classes Prime Lending Rate Public Sector Undertakings Public sector banks Reserve Bank of India Small and Medium Enterprises Specialised credit institutions United Kingdom
PROJECT REPORT
- 32 -
Process-Flow
The following guidelines should be followed for all Mortgage Loans: 1. All the cases to be mandatorily processed through LOS. 2. Credit Manager should only decision the files in LOS. 3. If a case goes on hold because of any queries, the queries should get cleared within 8 Days. In case the same doesnt get cleared within 8 days the file should be declined and returned back. 4. For all declined cases the decline letter should be kept open for 7 days for review by sales managers / RAC heads. In case the same doesnt get reviewed the reject letter should be directly couriered to the customer. 5. Sanction letter be couriered to the customer. 6. The reasons for files on hold should be captured in Notepad in LOS. 7. Proper reject reason should be captured while declining a case. In LOS we have the following reject reasons, one can select any one of the following: Age Norms not met CPV negative Contractibility norms not met Outside the funding area Criterion not met De-dupe negative Derogatory history Document norms not met Employment / business stability norms not met Gift Sales reject needs to be entered High risk profile / NSP Income norms not met LTV norms not met Negative area Negative Dealer Negative builders / Property Others / qualitative reasons Programme norms not met Residence stability norms not met Tenure norms not met Wrong information / negative reference
- 33 -
Product Paper on Power Home Purpose Purchase of a plot of land and Construction of a house thereon Construction of a house on plot of land already owned Purchase of a new house / flat Purchase of old house / flat. The residual age of the property as confirmed by our empanelled valuators at the maturity of the loan should not be less than 10 years (Home Acquisition Plan) Extend /Renovate/Repair of a house or flat already owned by self (Improvement/ Extension Plan) Take-over of existing Housing Loan Pre-allotment Booking finance Loan takeover with additional refinance However, the property should be located within 50-km radius of the nearest RAC/Branch. The features of the home loan product are enclosed below.Eligibility A) Salaried Individuals 1. Any individual with a minimum net monthly salary of Rs.10, 000/- p.m. 2. In case of salaried persons clubbing of income of Husband and wife is permitted, minimum aggregate net monthly salary of Rs.15, 000/- p.m. and both the applicants to be co-applicants to the loan. All property owners to be made co-applicants to the loan. 3. The applicant in all the cases should be above 24 years of age at the time of loan commencement and up to the age of 60 Years or superannuation, whichever is earlier at the time of loan maturity. B) Professionals: 1. In the case of professionals, minimum net annual income of Rs.1.50 lakhs. 2. In case of professional (i.e. Doctors, Engineers, Dentists, Architects, CAs, Cost Accountants, Company Secretary, Management Consultants
- 34 -
only) Clubbing of income of Husband and wife is permitted, minimum aggregate net monthly salary of Rs.15000/- p.m. and the loan would be granted to only one person. All property owners to be made coapplicants to the loan. 3. The applicant should be above 24 years of age at the time of loan commencement and up to 65 years or less at the time of loan maturity. C) Self Employed Individuals 1. In case of self employed individuals, minimum net annual income of Rs.1.50 lakhs. 2. Clubbing of income of Husband and wife is permitted, minimum aggregate net monthly salary of Rs.15000/- p.m. and the loan would be granted to only one person. All property owners to be made coapplicants to the loan. 3. The applicant in all the cases should be above 24 years of age at the time of loan commencement and up to 65 years or less at the time of loan maturity. Clubbing of Income is allowed between spouse and parents and also for the cases where one of the applicants is salaried and other applicant is self employed, subject to maximum clubbing of income of three applicants. In case the co-applicant / guarantor is a non financial member, the minimum age be 18 years at the time of commencement of loan and up to the age of 75 years at the time of loan maturity. Income / ownership grid as per matrix given in Annexure 1. Work experience A) Salaried Individuals: Particulars Option A Option B Current Job Min 1 year < 1 year Overall 2 years total 3 years total experience experience experience B) Professionals & Self Employed Individuals: Business continuity of last three years in the same field Loan amount Minimum Rs.1 lakh & Maximum - Rs.50 lacs
PROJECT REPORT
- 35 -
Installment to Income Ratios (IIR) and Fixed Obligation to Income Ratios (FOIR) norms Loan eligibility will be calculated basis IIR & FOIR and the loan eligibility basis the lower of IIR norm or FOIR norm will apply. Salaried Individuals, Individuals Net Monthly Income (NMI) Less than Rs.20,000 /Rs. 20,000/- to Rs.1,00,000/Above Rs.1,00,000/Professionals Max IIR 50% 55% 60% & Self employed
Max FOIR on net income 70% 70% 75%
Rate of Interest (as applicable on date) Sr. No. 1 2 Type Floatin g Fixed Loan amount (Rs.) Up to 30 Lacs Above 30 Lacs & up to 100 Lacs Irrespective of the loan amount Effective ROI 8.75 % 9.25 % 14.00 %
Mortgage Reference Rate (MRR) is 12.25%. All rates are subject to change from time to time.
PROJECT REPORT
- 36 -
Processing Charges/ Admission Fee - Penalty & Refund Processing fee equivalent to 1% of the loan amount (applied for) will be collected prior to disbursal. The process of collection & refund of fees is appended below: 1. Minimum cheque of Rs.5,000/- or 1% of the loan amount to be collected upfront in all Home Loan cases but the cheques should be banked after sanction. 2. Balance processing fess of 1% of Home loan needs to be collected from the customer before disbursement. The processing fees should be collected from the customer and not be deducted from the disbursal amount. 3. The process of refund of processing fees is appended below: Sr. Scenario PF amt to be PF amt to be No. retained by the refunded to Bank the Applicant 1. Application rejected Nil Processing fees collected, if any. 2. Application Rs.2,000/Balance sanctioned for a processing fees lower amount then collected. the loan applied and applicant is not interested in the lower amount. 3. Application disbursed 1% of the Balance for a lower amount Sanction limit processing fees then the amount collected. sanctioned. 4. Case sanctioned Rs.5,000/Balance subject to legal & processing fees technical clearance collected. and thereon rejected basis legal & technical report. 5. Case sanctioned but Full amount Nil not availed. collected
PROJECT REPORT
- 37 -
Refunds need to be done within a period of 90 days from the date of sanction / disbursal (as the case may be) of the loan. If the refund is not done, for any reason, in the stipulated period then the same needs to be done with the prior approval of Zonal Retail Asset Head. 4. No out of pocket expenses (e.g. Legal charges, Stamp duty, etc.) will be charged to the customer. These are to be adjusted out of the processing fees. However EM charges may be collected.
Penalty for part prepayment and foreclosure Nil Booking Heads GL Description Loans Power Home Gen INR Product Power Home floating Power Home Fixed
GL Head 69006 Scheme Code PH_LNPHG_floating PH_LNPHG_fixed
Credit Score & CIBIL Score The range of CIBIL score is 300-900. The cut-off score would be 760 for all the retail asset products. The minimum Credit Score rating is 60 for Credit Score Rating sheet. Other Conditions Bank reserves the right to reject any application without assigning reasons thereof. The applicant will undertake to inform the Bank as and when there is a change in address / employment.
- 38 -
The terms & conditions mentioned above and elsewhere under the scheme are subject to modification from time to time solely at Bank's discretion. Operational risk losses to be reported to Central Office for onward reporting to Operational Risk Department. Documentation: Documents required to be submitted along with application form: Purpose Salaried Others Proof of Identity Voter's ID Card / Driving Voter's ID Card / Driving License / PAN card / Photo License / PAN card / Credit Card / Employees ID Photo Credit Card / card / Defence, Police, Passport & latest Government, Departmental Photograph ID card / Passport & latest Photograph Proof of Income Latest salary slip/certificate IT Returns for the last 2 showing all deductions or years and Computation of Form 16 along with current income for the last 2 dated salary certificate. years certified by a C.A. Proof of Bank account statement / Bank account statement / Residence Latest Electricity Bill / Latest Latest Electricity Bill / Mobile / Telephone Bill / Latest Mobile / Telephone Latest Credit Card statement Bill / Latest Credit Card / Latest LIC policy / statement / Latest LIC Insurance Premium Receipt / policy / Insurance Employers letter certifying Premium Receipt / Latest the current mailing address / NSC Latest NSC / Existing House Lease Bank Statement / Last 6 months Last 6 months Pass Book where salary / income is credited Guarantor Form Optional Optional Disbursement documentation: Application Term Loan Agreement Completion of mortgage formalities (Equitable / Registered) Agreement with builder / seller duly registered
- 39 -
Title Clearance Certificate / Valuation Report Blueprint of Plot / Land / House approved by the competent authority No Objection Certificate from Builder/ Society to mortgage the flat Letter of Authority from employee / Undertaking by employer where check-off facility is available Pledge Form for collateral securities
Delegation Branches headed by SVPs/Other Branches The loans will be sanctioned and disbursed at the branch level and the individual sanctions would be reported to Zonal Office at monthly intervals in a pre-designed format for review by the Zonal Office. However, the branches are advised to obtain a pre-disbursal review invariably in those cases where there are deviations from the scheme but where the value of connections or other relevant factors make the proposal worthwhile for consideration.
PROJECT REPORT
- 40 -
Annexure A: POWER HOMES (SALARIED) CREDIT SCORING SHEET Name: Shri / Smt. _________________________________ A/c No._________________ Sr.N Parameters o. Tota Ex. l Mar ks 10 10 G A A A Criteria
1.
Personal Information Age
2.
Educational Qualifications
10
10
3.
No. of De pe nd en ts
10
10
EX > 24 Yrs. And < 35 Yrs. G > 35 Yrs. and < 50 Yrs. AA > 50 Yrs. And < 55 Yrs. A >55 Yrs. EX Post Graduate / Professional G Graduate AA/A Under Graduate EX Upto 4 G5 AA 6 A More than 6
4.
Income Information 20 Net Present Income from all sources 20 13 8 5
EX =>Rs.300000 G =>Rs.200000 < Rs.300000 AA =>Rs.90000 < Rs.200000 A => Rs.50000 , < Rs.90000
- 41 -
PROJECT REPORT
Sr.N Parameters o.
Tota Ex. l Mar ks 15 15
A A
Criteria
5.
Monthly Instalment of Loan / Net Monthly Income (from all sources) Networth Information Has Phone Owning of vehicle
11
EX < 20% G < 35% AA < 45% A > 45% but < 55%
6.
2 3
2 3
0 2
0 1
0 0
EX Yes G/AA/A No EX 4 Wheeler fully owned/ Company provided G Hypothecated 4 Wheeler AA- Two Wheeler A Does not own a vehicle EX -Market Value >Rs.500000 G- Market Value > Rs.300000 AA-Market Value>Rs.200000 A- Market Value > Rs.100000 EX Government / Public Sector Undertaking/ MNC G Public Limited Company AA Private
- 42 -
7.
8.
Net Assets (Total Assets Liab.)
15
15
10
9.
Organisation Information Organisation (*)
PROJECT REPORT
Sr.N Parameters o.
Tota Ex. l Mar ks
A A
Criteria
10.
Designation (*)
11.
Length of Service in present job Credit Card Information i) Type of Credit Card
Limited Company EX Executive / Senior Manager G Officer AA/AOthers EX > 3 Years G > 2 Years AA > 1 Year A < 1Year EX - Gold / Diners G - Silver / Blue / Classic / Executive / Sterling Silver / others, AA/A - No Card EX > 2 Years G 1 2 years AA < 1 Year A No Card
12.
ii) Member Since
Total Marks
100 5 1 5 6 2 7 8 9 10 3 1 5 5 5 11 (3+2 ) Total Marks 100
CREDIT SCORING RATING Point Nos. 1 2 3 4 Max Scores Marks Scored 10 1 10 20 0
Cut off Score = 60
PROJECT REPORT
- 43 -
POWER HOMES SELF EMPLOYED CREDIT SCORING SHEET Name: Shri / Smt. _________________________________ A/c No._________________ Sr.N Parameters Tot Ex. o. al Mar k 1. Personal Information Age 10 10 G A A A Criteria
2.
Educational Qualification s
10
10
EX - 30 years to 45 years. G - 24 years to 30 years (others) 46 years to 50 years(professional) AA - 51 years to 60 years. A - more than 60 years EX Post Graduate/ Professional(Full time Degree course e.g. MBBS,BDS, Architect, Engineers, Chartered Accountants,Com pany Secretary, Cost Accountants, MBAs.) G Graduate AA/A Under Graduate EX Upto 4 G5 AA --6 A More than 6
3.
No. of D e p e
10
10
PROJECT REPORT
- 44 -
Sr.N Parameters o.
Tot Ex. al Mar k n d e n t s
A A
Criteria
4.
Net Present Income from all sources
20
20
15 8
5.
6.
Monthly Instalment of Loan / Net Monthly Income (from all sources) Networth Information Has Phone Owning of vehicle
15
15
11 8
EX => Rs. 300000 G => Rs. 200000 <Rs.300000 AA=>Rs.100000 < Rs.200000 A > Rs. 75000 < Rs.100000 EX < 25% G < 40% AA < 50% A >50% but < 60%
EX Yes G/AA/A No 2 3 2 3 0 2 0 1 0 0 EX 4 Wheeler fully owned/ Company provided G Hypothecated 4 Wheeler AA- Two Wheeler A Does not own a vehicle
7.
PROJECT REPORT
- 45 -
Sr.N Parameters o. 8. Net assets (For others) (Total Assets Liab.)
Tot Ex. al Mar k 15 15
A A
Criteria
11 6
9.
Organisation Information Organisation and Designation
EX Market Value >Rs.500000 G Market Value > Rs.300000 AA Market Value> Rs.200000 A Market Value > Rs.100000 EX Self-employed professional / Director of Pvt. Ltd Co. (with 50 or more staff) G Director of Pvt. Ltd. Co. with less than 50 staff / Partner in a partnership firm with 25 or more employees AA Partner in a partnership firm with >10 and < 25 employees / Proprietor of a firm with more than 25 employees A Proprietor of a firm with < 25 employees / Partner in a partnership firm with <10 employees. EX > 3 Years G > 2 Years AA > 1 Year A < 1Year EX - Gold / Diners G - Silver / Blue / Classic / Executive /
10.
Length of involvement in current business Credit Card Information i) Type of Credit Card
11.
PROJECT REPORT
- 46 -
Sr.N Parameters o.
Tot Ex. al Mar k 2 2
A A
Criteria
Sterling Silver / others AA/A - No Card ii) Member Since 1 0 0 EX > 2 Years G 1 2 years AA < 1 Year A No Card
Total Marks
100
CREDIT SCORING RATING Point Nos. 1 2 3 4 Max Scores Marks Scored 10 1 10 20 0
5 1 5
6 2
7 8 9 10 3 1 5 5 5
11 (3+2 )
Total Marks 100
Cut off Score = 60%
PROJECT REPORT
- 47 -
AUTO LOAN
PURPOSE The product would be applicable for purchase of new cars only. Vehicles under this scheme are to be used for personal use only. SCHEMES
We would be offering the following schemes under the auto loans product: 1. 2. 3. 4. 5. Vanilla Product Salary Account Product Priority Account Product No Income Proof Product Repayment Track Record Product
PROJECT REPORT
- 48 -
6. 7. 8. 9.
Credit Card Product Gross Receipts Product Defence Personnel Product Special Product for Working Women
SECURITY Hypothecation of the vehicle and lien to be marked in favour of UTI Bank Ltd. in the Registration Certificate, Final Invoice and Insurance Policy.
SOURCING This product will be sourced through RAC, SRAC, branches, dealerships, corporate tie-ups, existing salary and priority account relationships and DSAs. ELIGIBLE SEGMENTS The following applicants can apply for the loan: 1. 2. 3. 4. 5. 6. Salaried Individuals Self-employed individuals Proprietorships Partnerships HUFs (with prior clearance of CO) Trusts
All applicants must be either Resident Indians or NonResident Indians For NRI cases, a blood related (father/mother/wife/children) Resident Indian as coapplicant is required. Cheques can be taken from either the Resident co-applicants account or the NRIs Resident account. For all HUF cases, the Karta of the HUF must be taken in as co-applicant in his individual capacity
PROJECT REPORT
- 49 -
Directors (other than working Director employed in professional capacity) cannot apply as Salaried employee unless the Balance Sheet of the company is submitted along with the personal ITR of the applicant. They would be considered under the self-employed category. In case of Trusts, the following documents must be collected in addition: 1. Certified True Copy of the Trust Deed 2. Copy of the resolution passed by the Board of Trustees/Directors authorizing borrowal 3. Certified true copy of the Registration Certificate from Charity Commissioner / Societies Registration Act
ELIGIBLE CARS Cars have been categorized as follows for LTV and eligibility purposes. Category Category A B Category C Maruti 800Zen Baleno Omni Swift Esteem Alto Versa Wagon R Accent Santro Verna Getz Elantra Indica Bolero Palio Scorpio Cedia Lancer Octavia Sumo Safari Indigo
PROJECT REPORT
Category D Vitara Sonata Tucson Mercedes C-Class Mercedes E-Class Mercedes CLS-Class Mercedes S-Class Mercedes SL-Class Mercedes SLK-Class Montero Pajero Combi Laura Superb
- 50 -
Corolla Camry Innova Land Cruiser Prado Chevrolet Aveo Fusion Chevrolet Optra Endeavour Tavera Accord Ikon Civic Fiesta Honda CRV Honda City SRV Marina
ELIGIBILITY CRITERIA & DOCUMENTATION Self-Employed Partnership Firms/ Individuals/Proprietary Trusts concerns Age Minimum 21 years, Minimum 21 years, Loan executing Maximum upto 58 Maximum 65 years at partner/ trustee (as years or 60 years the time of loan maturity applicable) to (age of confirm to these superannuation) at norms: Minimum 21 the time of loan years, Maximum 65 maturity years at the time of loan maturity Loan amount Minimum Rs. Minimum Rs. 100000/Minimum Rs. 100000/100000/Tenure Minimum 1 year and maximum 7 years Minimum 1 year and maximum 7 years Minimum 1 year and maximum 7 years Purpose Salaried
PROJECT REPORT
- 51 -
Income Norms ***
Workexperience Turnover Telephone
Minimum Rs. Minimum Rs. 60000/100000/- gross for Category A/B cars annual income for and Minimum Rs. Category A/B cars 100000/- for Category and Rs. 200000/C/D cars for Category C/D (Gross Income: Net cars (Gross annual Profit after tax + income is the gross Depreciation) salary as reflected in the Form-16 before any deduction) Minimum 2 years Minimum 3 years in of total business employment NA NA Landline at Residence/ Postpaid mobile connection
Minimum Rs. 60000/- for Category A/B cars and Minimum Rs. 100000/- for Category C/D cars (Gross Income: Net Profit after tax + Depreciation)
Minimum 3 years in business Minimum turnover of Rs. 4.5 lacs
Proof Identity
Landline at Residence/ Landline at Postpaid mobile Residence/ Postpaid connection mobile connection of loan executing partner/ trustee (as applicable) of Passport / VotersPassport / Voters Card /Copy of Partnership Card / DrivingDriving License withDeed/ Memorandum License withPhotograph/ PAN card & Articles of Photograph/ PAN Association/Certified card True Copy of Trust Deed (as applicable) & the following documents required for the loan executing partner/trustee: Passport / Voters Card / Driving License with Photograph/ PAN card
PROJECT REPORT
- 52 -
Proof Income
of Latest salary slipLatest Income TaxAudited Balance showing allReturn and ComputationSheet, Profit & Loss deductions ANDof income Account for last 2 Latest Form 16 / years along with the Income Tax Return latest 2 Income Tax (Form 16 FYE Returns March should be available June onwards) Address Proof Ration Card/LatestRation Card/LatestTelephone (of the residing Electricity Electricity Bill/LatestBill/Electricity Bill/ city) Bill/Latest Telephone Shop & Telephone Bill/Passport/Latest Establishment Act Bill/Passport/Latest Credit Card Bill/ DrivingCertificate/SSI Credit Card Bill/License Registered Driving License Certificate/ Sales Tax Certificate Signature Passport copy/Passport copy/ DrivingBankers Verification Verification Driving LicenseLicense with with Photograph/Photograph/ Bankers Bankers Verification Verification Additional NA Declaration fromAuthority letter Documentation Proprietor signed by all partners/Board Resolution for Trusts *** For Self-employed Individuals/Proprietorships: 1. Income from other sources in the form of bank interests and dividends of companies listed on the stock exchange can be added to Business Income ONLY if there is no business loss. However, if this income exceeds 20% of the total income requirement for the product, then income proof in the form of bank credits or bank fixed deposit photo copies or the Demat account statement needs to be given.
2. Income from rent can be added to the business income if
there is no business loss. However, if this income exceeds 20% of the total income requirement for the product, then income proof in the form of rental credits in
- 53 -
bank along with the rent agreement needs to be given. If rent credits are not appearing in the bank account, then the rent agreement along with 3 months bank statements will also be a valid substitute. 3. Agricultural income up to 20% of the total income requirements for the product can be added to the business income provided there is no business loss.
For Partnership Firms: Net loss making firms or firms having debit capital balances not to be considered. Salary of partners, interest paid to partners and full depreciation can be added to the net profit.
Loan To Value (LTV) LTV would be computed on ON-ROAD price (inclusive of insurance and registration) Funding on imported cars is permissible with CO approval The following LTV grid would be applicable: % LTV % LTV % LTV Model & its upto 36 upto 60 upto 84 Company Variants months months months Maruti Maruti 800 85% 80% 75% Omni 80% 75% 70% Zen 85% 80% 75% Alto 85% 80% 75% Wagon R 85% 80% 75% Versa 75% 65% 60% Esteem 80% 75% 70% Baleno 80% 70% 65% Vitara 75% 70% 65%
PROJECT REPORT
- 54 -
Hyundai
Mahindra Mercedes Mitsubishi
Skoda
Tata
Toyota
GM
Fiat Ford
Honda
Swift Santro Getz Accent Verna Elantra Sonata Tucson Bolero Scorpio Mercedes Cedia Lancer Montero Pajero Combi Octavia Laura Superb Sumo Safari Indica Indigo Marina Corolla Camry Innova Land Cruiser Prado Chevrolet Aveo Chevrolet Optra SRV Tavera Palio Petra Ikon Fiesta Fusion Endeavour City Accord
85% 85% 85% 80% 80% 75% 80% 70% 75% 80% 75% 80% 80% 65% 80% 65% 80% 75% 75% 80% 75% 85% 80% 75% 80% 80% 85% 75% 80% 80% 80% 80% 80% 75% 80% 80% 75% 75% 85% 75%
80% 80% 80% 75% 75% 70% 75% 65% 65% 70% 70% 70% 70% NA 70% NA 75% 70% 70% 65% 65% 80% 75% 70% 75% 75% 75% 70% 75% 75% 75% 75% 65% 65% 75% 75% 70% 70% 75% 70%
75% 75% 75% 70% 65% NA 65% NA NA 65% 60% NA NA NA 60% NA 70% 65% NA NA 60% 75% 70% 65% 70% 65% 70% 60% 65% 65% 65% 70% 60% NA 65% 65% NA 60% 70% 65%
- 55 -
PROJECT REPORT
Civic CRV Others RATE OF INTEREST Applicable ROI will be as follows:
80% 75% 65%
75% 70% NA
70% 65% NA
Without Payout With Payout (subject to a maximum payout of 5.5% flat)
Tenor greater than 60 months Tenor upto up to 84 60 months months 10.50% 10.50% 11.75% 12.25%
Rates are subject to change. Any revision in rates of interests would be communicated from the Central Office from time to time. It is at the discretion of the RAC Head/SRAC Head/Branch Head to sell auto loans at rates higher than the one indicated above. No approval from the Zone / Central Office required for the same. PRODUCT-WISE FEATURES 1. VANILLA PRODUCT All category cars can be funded LTV as per grid would apply All documents as defined under documentation would have to be collected Last 3 months bank statements to be collected and to be verified for negative traits like cheque bounces, minimum balance charges, penal interests etc. Deviations would be permissible as per deviation grid 6 months bank statements to be collected from cash salary cases. No deviations permitted for cash salary.
- 56 -
Eligibility Criteria: For Salaried: 1. 3 times Gross Salary p.a. OR (30 times of average net salary of 3 months for cases where Form 16 is not available) 2. EMI must not exceed 50% of net salary For Self-employed: 6 times Gross Income p.a. The RAC Head must ensure that deviation of nonavailability of Form-16 must not be taken for more than 5% of the total portfolio.
Salary Account Product: All category cars can be funded under this product All customers having their Salary A/c with UTI Bank since the past 3 months will qualify under this scheme All documents as defined under documentation would have to be collected (other than income documents) Deviations would be permissible as per deviation grid Eligibility: 1. 30 times Average Net Salary Credited during last 3 months 2. EMI must not exceed 50% of net salary Benefits: 100% Waiver of Processing Fees Waiver of Salary Slips & Bank Statements Priority Account Product: All UTI Bank Priority customers, having an account for a minimum period of 12 months AND a minimum
PROJECT REPORT
- 57 -
AQB of Rs. 100000/- for last 2 completed quarters will qualify under this scheme Borrower will be eligible as per the LTV grid. Credit Manager to use his discretion. All category cars can be funded under this product All documents as defined under documentation would have to be collected Deviations would be permissible as per deviation grid
Benefits: 100% Waiver of Processing Fees Waiver of Income documents & bank statements No Income Proof Product: Only Category A, B, C cars can be funded under this product The product can be offered to all eligible applicants Salaried, Self-employed, Partnership Firms, Trusts and HUFs LTV would be as follows: For Tenure < For Tenure > 36 36 months, <= 60 CAT months months Category A 75% 70% Category B 75% 70% Category C 60% 55% Category D NA NA All documents other than income documents to be collected as per documentation list.
- 58 -
Last 1 Year bank statements to be collected, Repayment to be through the same account Residence must be owned by the applicant or by the spouse/parent/children of the applicant. Ownership proof in the form of Ration Card/Latest Electricity Bill/Passport/Driving License/Property tax bill/Maintenance Bill/letter of allotment to be collected. Deviations would be permissible as per deviation grid
Eligibility: The average bank balance should be atleast 1.5 times the EMI. Loan amount to that extent can be granted
Repayment Track Record Product Only Category A, B, C cars can be funded under this product In addition to the documents mentioned under documentation, the sanction letter of the original loan (repayment track of which is considered) along with the repayment schedule needs to be collected. This loan should have been for a minimum loan amount of Rs. 100000/- for Category A/B cars and Rs. 300000/- for Category C cars. Conditions: The loan can be a live one or a closed one. Atleast 50% of the loan Should have been serviced if the loan account is a live one or should have been closed prior to 15 months from the date of application. If the loan has been closed prior to last 6 months, the bank statements
- 59 -
need to be checked for regularity of cash inflows to assess the current repayment capacity of the borrower. The credit manager to use his discretion while assessing the same. There should not have been more than 2 cheque bounces per completed 12 months. It should never have been 30 days past due and should be current if live. Repayment must be from one of the following: UTI Bank, ICICI Bank, HDFC, ABN Amro Bank, SCB, GE Countrywide, Citi, Kotak, Amex, HSBC, SBI and in the name of the applicant. Repayment track record would also be acceptable in any of the following cases: Track record availabe in the name of the proprietorary concern where the borrower is the proprietor Track record available in the name of a partnership firm where the borrower is a 50% partner in the firm Last 1 Year bank statements to be taken in all cases. Repayment track should be verified from either the loan account statement of the bank statements. If the track is verified from the bank statements, the same needs to be collected for atleast 50% of the original loan tenor completed. LTV as per grid. Deviations would be permissible as per deviation grid Eligibility: The new loan EMI can be upto a maximum of 1.5 times the previous loan EMI. For UTI Bank repayment cases, the new loan EMI can be upto 2 times the previous EMI.
PROJECT REPORT
- 60 -
PERSONAL LOAN 1.1.1 Eligibility Criteria
Any Individual having a cumulative experience of 2 years or more with a minimum net income of Rs 7000 p.m. should be eligible for the loan, irrespective of confirmation in his present job. An employee with 1 year experience in cat A or cat B company receiving net salary of Rs.11000/- p.m. is also eligible to avail the personal loan. Minimum experience of one year (1 year) or more for Salary Power customers with check off facility. The applicant should be above 21 years of age and less than the age of superannuation at the termination of the loan. 1.1.2 Additional Eligibility Criteria for cash salary
Any individual receiving cash salary will also be eligible for a Personal Loan. The following are the features: 1. Loan amount will be restricted to Rs.2 lacs 2. Applicant must have a minimum net income of Rs.10,000/p.m. 3. Banking habits: Atleast 6 transactions should be reflected in the last 6 months bank statements and no cheque bounces/ minimum balance charges to be allowed 4. Pricing would be 200 basis points higher than the respective category rate 5. These loans will be tracked under the label code PLCASH. The same is to be captured on Disbursement Memo.
PROJECT REPORT
- 61 -
1.1.3
Loan Amount
The following matrix / loan limits are applicable for Salaried Individual Normal segment: Minimum Loan amount: Rs 50,000 Maximum Loan amount: Rs 10.00 lacs For Salary Power customers, minimum loan amount: Rs 25,000 (at the discretion of RAC Heads) (Repayment limit listed in the table below) Repayment Limit (Salaried Individual Normal) CAT A / B / C / D customers Repayment Period (Salaried Individual Normal) Max. Loan Amount (Salaried Normal)
Maximum Limit Rs. 10,00,000/5 times Net Monthly Income for CAT A 4 times Net Monthly Income for CAT B =>12 months but < 24 4 times Net Monthly Income for CAT months C 4 times Net Monthly Income for CAT D 10 times Net Monthly Income for CAT A 8 times Net Monthly Income for CAT B =>24 months but < 36 8 times Net Monthly Income for CAT months C 8 times Net Monthly Income for CAT D =>36 months but < 48 13 times Net Monthly Income for CAT months A 10 times Net Monthly Income for CAT B 10 times Net Monthly Income for CAT C
- 62 -
Repayment Period (Salaried Individual Normal)
Max. Loan Amount (Salaried Normal)
Maximum Limit Rs. 10,00,000/10 times Net Monthly Income for CAT D 15 times Net Monthly Income for CAT A =>48 months upto 60 12 times Net Monthly Income for CAT months B N.A. for CAT C / D NOTE: Personal Discussion with the borrower mandatory for all loan amounts > Rs 5.0 Lacs. 1.1.4 A. Security / Collateral
Salaried (having salary power account with the Bank with checkoff facility) having net monthly income of Rs. 7000 to Rs.10,000, need not provide collateral security. B. Salaried (not having salary power account with the Bank) having net monthly income of Rs. 7000 to Rs.10,000 need to provide 50% collateral security (units of UTI, NSCs, KVPs, Demat shares, Bank deposits, Surrender value of Life Insurance policy and such other investments that are acceptable to the Bank ) or a 3rd party guarantee of a person of satisfactory means* C. Salaried having net monthly income of Rs. 10,000 or more need not provide collateral security. * Guarantor: Father / Mother / Spouse / Third Party (any one of these) can be a financial guarantor by declaration. Signature verification and photograph required from the guarantor. Guarantor need to have monthly salary / income > Rs 10,000. For SRACs, monthly salary / income of Guarantor to be > Rs 8,000
PROJECT REPORT
- 63 -
1.1.5
Banking Relationships
1.
For salaried normal in the last six (6) months maximum of 2 cheque bounces allowed (for CAT C & D). 2. For CAT A & B employees, maximum of 1 cheque bounce allowed in last 3 months.
1.1.6
Rate Of Interest
** Rate of Interest for Salaried Individuals Normal:RATE OF INTEREST S. No. 1 2 3 4 CATEGORY CAT A CAT B CAT C CAT D 13.00 % p.a. 15.00 % p.a. 18.50 % p.a. 20.50 % p.a.
A consolidated list of 7144 companies categorised as CAT A/B/C/D is enclosed as Annexure I for information. The list has been finalised after compiling similar data of all the market palyers (including MNC Banks) and discussing the same with RAC Heads / Sales Managers. The matrix defining the logic for un listed companies is also mentioned in the same annexure.
This rate of interest is the floor rate to be offered to the borrowers. It is at the discretion of the RAC Head / Branch Head to sell Personal Power at rates higher than the one
PROJECT REPORT
- 64 -
indicated above. No approval from the Zone / Central Office required for the same.
1.1.7
Pre-payment Penalty
A pre-payment penalty of 4% of capital outstanding will be imposed, in case of pre payment of the loan. At RAC Heads discretion, 50% waiver in pre-payment penalty can be granted. 1.1.8 Repayment
Salaried Individual Normal 12 to 60 months (for CAT A & B) in Equated Monthly Installments (EMI) from the date of disbursement by way of post-dated cheques in cases where check-off facility is not available. Otherwise, the monthly installment will be received from the employer under checkoff facility.
1.1.9
Residence & Phone Criteria
Residence Criteria 1. For Salaried individuals normal, Present residence should not be less than 6 months (mandatory). On declaration backed by FI. If present residence is less than six (6) months, then it should be company provided or own house or transfer case. Anything other than the listed cases, guarantor (local) mandatory. For Bachelor / Spinster salaried individual staying alone, permanent residence proof mandatory. If not provided, loan to be rejected. Also in this case, native place Field Investigation (FI) IS mandatory either by RAC / SRAC present in that location and if not, then tele verification to be done. Permanent residence proof mandatory for all loan cases > Rs 3.0 Lacs.
PROJECT REPORT
- 65 -
Phone Criteria 1. For Salaried, a phone (landline) / mobile / WLL mandatory. Documentary proof required for the phone.
1.1.10 Service Charges / Processing Fees 2% of loan amount applied for. Net off from the loan amount availed. Waiver / reduction in processing fees allowed at RAC Heads discretion.
1.1.11 Documentary Proofs
Purpose Proof of Identity Proof of Income Proof of Residence
Bank Statement / Pass Book where salary / income is credited Proof of Telephone Latest bill of landline / mobile / WLL stating name of borrower or address of borrower Guarantor Form Yes (Optional)
Salaried Normal Passport / Voter's Card / Driving Licence / PAN card & Photograph Latest salary slip showing all deductions or Form 16 alongwith current dated salary certificate Ration Card/ Passport /Latest Electricity Bill/ Latest Telephone Bill/ Latest Credit Card Bill Last 6 months 3 months Bank Statement for CAT A & B employees.
LOAN AGAINST MUTUAL FUNDS

Customer approaches the Bank for Loan Against Mutual Funds
Bank Official briefs him about LMF Product. 1) Product Policy 2) Interest rate 3) Approved schemes 4) Eligible Loan amount Please refer to the updated list available at Retail Asset URL K@axis.com/Retail AXIS BANK LTD (RETAIL ASSET MANAGEMENT) Asset URL (http://20.1.135.107/ RETAILASSETS -
PROJECT REPORT
If the requested MF scheme is in approved list then Bank Official to feed the scheme- 66 details in the What If DP
If not in approved list, then reject the same
If customer is not interested, thank the customer for taking interest in Axis
APPLICATION AND SANCTION STAGE
If customer agrees, Bank Official collects application form and sanction document. 1) Loan is sanctioned as per the product guideline 2) Collect accepted sanction letter along with loan documents from customer. (for other documents to be collected, please refer to product policy) 3) Take pledge request letter duly signed by the customer. 4) All other documents as per Loan Against Mutual Funds Policy and/or any other docs required for new a/c opening ACCOUNT OPENING AND PLEDGE CREATION STAGE If cust id exists, account opening information to be filled up in the pre defined template by RAC / Branch and send the request info by email to lasramgcoordinator@axisbank.com. If no cust id exists, RAC requests the Branch to create the cust id and then forward the account opening request to RAMG. RAMG completes the account opening procedure and informs RAC . Pledge request letter is forwarded to RAMG. RAMG send this to respective fund house. On receipt of confirmation from the fund house Drawing power is uploaded Activity at RAMG 1) Drawing Power uploading in DPintranet system 2) Drawing Power uploading from Dpintranet to
ACCOUNT ACTIVATION, SERVICING AND Branch Task : 1) To issue cheque book to customer. 2) To maintain account related documentation 3) Servicing of the account. Regular activity at CO: 1) Monitoring of portfolio for delinquency & informing the same to respective branches. 2) Incase of delinquency ity at Branches / RAC: Informing the customer for delinquency or unutilized credit limit. Follow up with the customer for funding / additional pledging for regularization / issuing intimation for account
PROJECT REPORT
- 67 -
Process Flow for Loan against share

A Customer approaches for LAS
DSA informs him about LAS {product policy}

(Interest rate, Approved scrips etc)
Asks the Customer whether he wants loan against a Single Scrip (Scheme Code IND02) or a group of Scrips (Scheme Code IND01){ Appv List of Shares } (Please refer updated list only)
If Single Scrip,then to check whether the same is approved in Single Scrip Category (IND02)
If Multiple Scrips,then to check whether all or atleast 2 of them are approved in Multiple Scrip Category (IND01)
If not approved then reject the same
If Approved then proceed further`
Details of scrips given to Relationship Manager to get an idea on approx. Drawing Power.
If customer not interested, thank the customer for taking interest in Axis Bank.
- 69 -
If Ok with customer, DSA gets the customer to fill upLoan Application form for LAS and submits required documents.{Emp-frm1},{Emp-frm2} Agreement form duly stamped & signed. {Empower Agmt}, {Pers Guarantee}, {Irrevocable Undertaking},{Power of Attorney},{Serv Chrgs Decl},{Letter of Continuing Security},{Letter of Waiver},{Demand Promissory Note}, {DPN Delv Letter},{Legal note Stamping/Signatory}. Take pledge Creation forms (3 copies 1 copy for DP ops, 1 for customer & 1 for branch records) duly signed by the customer & by the branch official incase of demat a/c with Axis Bank, if demat a/c with other DP then the customer has to submit the pledge forms to his DP and submit the acknowledged copy of the same to RAC for further processing. Precautions for filling up of Pledge Forms: To mention correctly ISIN No., Code of Scrips,Scrip Name ,Quantity, ODMAT A/c No. and DP ID (if DP A/c is with other depositoryAll other documents as per Empower Policy and/or any other docs required for new a/c opening (eg. Form for debit card etc). Take Customers signature on sanction letter.
- 70 -
If the client does not have our DP a/c then inform the customer to fill up the pledge creation forms of his DP and send the same to his DP a/c and collect the acknowledged copy of those forms and submit the same to RAC for process.
All the documents submitted to RAC for further process.
After completion of documentation, the request for account opening and pledge creation to be forwarded to RAMG and DP ops respectively by RAC
- 71 -
The cheque book is issued by the Branch where the OD account is opened. Drawing Power upload is on a daily basis. Incase of delinquency greater than the prescribed norms centralized share sale is executed.
DSA to inform the customer for delinquency or unutilized credit limit.
PROJECT REPORT
- 72 -
PROJECT REPORT
- 73 -
Process Flow for Cross Sell

Step 1: Lead Generation and Entry into Telesmart There would be two modes of Lead Generation. CET (Customer Employee Type) Customer approaches Axis Bank Branch or other offices such as Regions, Zones or Central Office. Leads are entered into Telesmart directly by the staff or by the Asset Desk Officer (ADO) stationed at the branch. CST (Customer System Type) Customer applies through Axis Bank Alternate Channels. Leads are automatically entered into Telesmart through a back end process at CO. Step 2: Telesmart Customer ID generation Once the lead is entered into Telesmart, Telesmart Lead ID and Telesmart Customer ID would be generated. Step 3: Assigning Lead to CSC The leads would automatically get assigned to the CSC at the respective RAC. The CSC would be able to view the details entered at the front end along with the corresponding Telesmart Customer ID. Step 4: Re-assigning lead to CS SM The CSC would then assign the lead to the Cross Sell Sales Manager at the RAC. Step 5: Customer Contact The Cross Sell Sales Manager would contact the customer and keep the CSC updated over the status of the lead. Step 6: Updation of Lead status in system The CSC would need to update the status of the lead in Telesmart. Thus, the ADO would be able to view the status of the leads and inform the lead generating branch staff. Step 7: Conversion of Leads
PROJECT REPORT
- 74 -
The leads that successfully get converted would need to be entered in FinnOne by the RAC Operations Staff.
Step 8: Entry into FinnOne. The Leads entered into Telesmart are visible in FinnOne on the next day. While entering the Cross Sell business into FinnOne, the Telesmart ID would be entered in the Lead field. Also, the Branch Name would be entered in the Source Code field. The RAC Operations Staff makes these entries in FinnOne. Step 9: Lead closure in Telesmart. Once the business is logged into FinnOne, the corresponding leads in Telesmart would be closed by the CSC by recording the A/c. no. generated through FinnOne and the amount disbursed.
1. Lead Generation and Entry into Telesmart
2. Telesmart Customer ID generated
3. Lead Assigned to CSC
4. CSC to reassign lead to CS SM
5. Customer Contact
6. Updation of Lead status in Telesmart
9. Lead closed in Telesmart with A/c. No. and Amt
8. Entry into FinOne. Telesmart ID also entered
7. Lead converted
PROJECT REPORT
- 75 -
PRE-SANCTION PROCESS
PROJECT REPORT
- 76 -
Identifies a potential customer & the product which can be sold to
DSA / DST
the customer (Day -1)

Gets the loan application form completely filled from the customer
Gets the file completed from the customer Collects the loan application form along with relevant papers & prepares a file Is the file comple te ? Y
File is submitted back to DSA/ DSE w/o login. The file is submitted to sales coordinator along with PF cheque who File is submitted back to the sales coordinator (Day 0) NNegativ Y e Match is found ? CPA does the dedupe check, CIBIL check & PAN card verification (Day 0)
(Day -1)
Is the file comple te Y ?
CPA checks the file against the same CPA
CPA checks the name of the DSE / DST who has logged in the file with the list of existing DSE / DSTs (Day 0) Match is found ? Y
CPA log-ins the file & enters the same in the sanction tracker
Starts doing the data entry in LOS (Day 0)
FI is triggered & file N Is forwarded to RCU
Credit Manager / RAC Head

PROJECT REPORT
Shows the file to Credit, who decides whether the file is to be processed further or declined, basis the matches (Day 1) Y N
CAM is prepared and file is rejected in LOS (Day 1)
Further processi AXIS BANK LTD (RETAIL ASSET MANAGEMENT) ng ?
A - 77 -
SANCTION PROCESS
DSA / DST
B
RCU stamps the file as Screened, sampled
CPA
or RCU Hold (Day 1) CPA does the eligibility calculation by preparing a eligibility sheet (Day 1) Receives the RCU report & FI report and incorporates the same in file along with his observations (Day 2)
Co mpl ete ? Y
Shoots the Legal & Technical to the empanelled agencies & collects the report
Prepares a combined list of queries & updates the same in tracker
Credit Manager / RAC Head
Checks the file along with eligibility calculation & CPAs observations (Day 3)
PROJECT REPORT
PD N requi Y red ? Is Conducts a Legal & PD AXIS BANK LTD (RETAIL ASSET technical MANAGEMENT) at the Reqd.? applicants
Queries Satisfie d OPPS PROCESS FLOW the with proposa l Y ?
Sanction / Decline letter is prepared in triplicate. Two copies are dispatched to the customer & one copy is attached in the file. Sanction tracker is N CAM is prepared and file is rejected in N
Cheque cleared
- 78 -
PROJECT REPORT
- 79 -
Dos & Donts in AOPS
AOF in black ink & capital letters only No cutting/over writing Signatures in black ink only No multiple inks to be used Photograph mandatory - to be affixed/pasted, not stapled All photocopies of documents on A4 only Separate A4 sheets for separate documents Check the application form with the documents, any discrepancies would be rejected Check boxes to be filled with tick mark correctly
PROJECT REPORT
- 80 -
Contact Centre
Outsourced contact centre To handle calls & emails Prospective customers Clearly defined role & scope Escalation to the concerned authority SMS communication to customers Carried out in-house Instances Application form login Loan sanction Disbursement EMI deduction Cheque bounce
Scope of activities
- 81 -
Scope of activities
Outbo und calls Outbo und calls Custo mer Emails Inboun d calls Inboun d calls
- Welcome calls to customers - Calls to customers regarding applications on hold - Calls to RACs to follow up on the held application forms
Custo mer
Emails
PROJECT REPORT
- 82 -
Scope of activities
Outbo und calls
- Calls from customers regarding status of application - Calls from the customers regarding claiming of service guarantee amount - Other queries from customers
Custo mer Emails Inboun d calls
PROJECT REPORT
- 83 -
Scope of activities
Outbo und calls
- Welcome emails to customers - Mails to customers regarding applications on hold
Custo mer Emails Inboun d calls
Centralized Monitoring
- 84 -
PROJECT REPORT
- 85 -
COLLECTIONS POLICY
OBJECTIVES The objective of the collection effort will be to encourage Borrowers to bring payments to date and to stress the need to make future payments on time.
COLLECTION DOCUMENTATION All Collection activities must be documented for all 30 dpd + cases. The Collection agency and the collectors should record only FACTS and not opinions, assumptions or derogatory comments on the borrower.
COLLECTION PROCESS GUIDELINES The Bank collection procedure will support the following guidelines:1. Initial collection practices should be based on the presumption that the borrower intends to repay. All communications in writing, by telephone or by personal visit should be based on this presumption unless the Collector determines that the borrower is deliberately evading repayment.
PROJECT REPORT
- 86 -
2. In all cases, the collection agency / collector should determine the cause of the delinquency and document it. Borrowers must be dealt with as individuals who have different attitudes toward obligations. Collectors should recognize that economic, social or personal problems may account for slow payment. 3. If the borrower does not indicate a willingness to pay, the Collector should explain the seriousness of continuing the delinquency and escalate the Collection effort. The Collector must not use personal abuse or other unethical tactics as these may antagonize the borrower or may lead to lawsuits, thereby frustrating the Collection effort apart from reputational damage. 4. Legal remedies available to the Bank can be stated as part of the collection effort. Legal action should not be cited unless it will be used against the customer. In case legal proceedings have to be resorted to, the Branch/Zone/RAC Head should obtain the approval of the Head Retail Assets or the designated officer at the Central Office. Alternatively the Senior Vice President Legal Department can also be contacted by keeping the Head Retail Assets in the loop.
PROJECT REPORT
- 87 -
COLLECTIONS POLICY RETAIL RISK MANAGEMENT 6. External agencies represent the bank and any unethical actions on their part may expose the bank to adverse publicity and/or lawsuits. 7. Hence, all external agencies employed in the collection effort should be evaluated based on market reputation, infrastructure availability and experience. The collection agencies will be appointed with the recommendation of the Branch/Zone/RAC Head / AVP Retail Assets, Retail Banking and approved by the Senior Vice President Retail Banking, Head-Retail Assets or designated officers at the Central Office. 6. In case of delinquencies that arise due to borrower's dissatisfaction with the goods or services rendered (due to material defects or conflict over terms), Collectors should note that as per the Bank's loan documentation, the Bank is not to be involved in any dispute relating to quality, condition or delivery date of the asset procured. The Collection agency / Collector should investigate the situation and determine the legal involvement of the Bank. If the Bank is involved, he should refer to the Branch/Zone/RAC Head, AVP Retail Assets, who will take requisite legal approvals from the Legal Department at Central Office. If the Bank is not involved, Collection efforts are to be resumed.
- 88 -
7. Delinquency charges are to be assessed as per the Power Loan schedule of Charges (Format attached as per Annexure A) and collected at the time of delinquent payment receipt. In case of borrowers who have residual unpaid delinquency charges, the delinquency charges may be collected at the maturity of the loan. 8. Borrower complaints concerning the Bank's Collection practices must be promptly investigated. The Bank / Collection agency must review and respond to the
complaint keeping legal requirements and impact on the Borrower's willingness to pay in mind.
PROJECT REPORT
- 89 -
PROJECT REPORT
- 90 -
PROJECT REPORT
- 91 -
FINDINGS AND SUGGESTIONS

As retail segment is the most profitable and less risky- banks has to go for it. As Indian economy is booming the retail banking sector has a great advantage from the point of view of both profitability and credibility. But the competition also is increasing. So, banks should focus towards certain factors
They should adopt the latest technology to avoid the cases of comparative disadvantages.
They should offer wide range of products to cater the needs of various segments.
They should adopt the corporate governance framework for better transparency and reliability.
They should be customer oriented. They should put extra effort to retain the customers.
To reduce defalt Axis Bank should keep exposure of unsecured loans/guarantees within safe limits.
PROJECT REPORT
- 93 -
LIMITATION GEOGRAPHICAL LIMITATION The research will carried out with the Axis Bank customer who are lives on Siliguri and is not applicable to otherparts. TEMPORAL LIMITATIAON The data and analysis pertain to the information available during that period of study only. PROCEDURAL LIMITATION The short time span of the project restricts from in depth study in some areas. Data collected from sources are not adequate in some cases.
PROJECT REPORT
- 94 -
QUESTIONNAIRE
PERSONAL DETAILS
1. Name of the person:
_______________________________________ 2. Address: _________________________

1. Age (in years): ________
2. Gender:
Male
Female Married Unmarried self employed
3. Marital Status:
4. Occupation:
salaried professional
others.
5. Average monthly income (in INR):
1,000-10,000
10,000-
20,000
20,000-40,000
40,000-50,000
above 50,000. 2,00,000-4,00,000
6.Average gross income in Incom-tax file: 4,00,000-above.
PROJECT REPORT
- 95 -
BANKING HABIT 1.Name of your prime bank 2.How many times you have taken loan from Axis Bank? zero 1 2
3.How secure you feel with your financial information available and managed over internet? Very secure insecure Very insecure 6. Do you consider the Axis Banks products are the better financial product? Yes, N0 Some what secure not secure some what
7. Do you consider the brand when you choose any retail banking product? Yes, N0
8.Have you cleared all the due EMI overdue? yes No
9.How many overdue you are not clear till now?
PROJECT REPORT
- 96 -
SERVICE OFFERED BY BANK 1.Which of the following factors are you consider when you choose any loan from Axis Bank? Need, satisfaction Quick processing customer profitability customer
past record of the bank,
2.Which of the following services are provided by the bank from where youchoose that Axis Bank product? Better service after sales service Core service Associated/Supporting
Service flexibility in payment.
3.What type of service you are using from Axis Bank(RAC)? Personal loan Home loan car loan Mortgage loan
4.Do you feel that the service what they provide is up to the mark? Yes, N0
PROJECT REPORT
- 97 -
CONCLUSION
The implementation of customer profitability has yielded a number of benifits to the bank. One of the important benefits to the bank. One of the important benefits was customer has provided the bank an opportunity to understand its customers well and accordingly cater to their needs with individualized offerings. The response time of the bank has redu ced. The effectiveness and performance of thebank as well as the level of service of the bank have also improved.The implematation of customer profitability helped the bank tocome closer to its profitability we can retention,loyalty.To customers. To analyze customer customer satisfaction, understand
improve customer satisfaction and increase has customized their product.
customer expectations Axis Bank
Delays /defaultsin payments affect the cash flow forecastsmade by the bank and further result in changed risk profile,as the bank will now have to face an enhanced interest reate risk and liquidity risk as well as credit risk. For theis reason it is neecssary .. 1. To keep the exposure of unsecured loans within safe limit. 2.To increase provisioning of unsecured NPA under sub-standard category from 10% to20%. 3.To increase risk weighy on home loanfrom 50 to 75% and
Personal loan from 100% to 125%.
PROJECT REPORT
- 98 -
REFERENCES
Magazines & Newspapers:
Business world. Business line and The Economic Times.
Website Address:
www.google.com www.indiainfoline.comn www.economics.about.com www.wikipedia.com www.siligurionline.com www.siligurimc.org
PROJECT REPORT
- 99 -
GLOSSARY
Arbitraging The purchase of securities on one market for immediate resale on another market in order to profit from a price discrepancy. Credit risk Credit risk is risk due to uncertainty in a counterparty's (also called an obligor's or credit's) ability to meet its obligations. Because there are many types of counterpartiesfrom individuals to sovereign governmentsand many different types of obligationsfrom auto loans to derivatives transactionscredit risk takes many forms. Institutions manage it in different ways. Deregulation Deregulation is the process by which governments remove, reduce, or simplify restrictions on business and individuals with the intent of encouraging the efficient operation of markets. The stated rationale for deregulation is often that fewer and simpler regulations will lead to a raised level of competitiveness, therefore higher productivity, more efficiency and lower prices overall. Deregulation is different from liberalization because a liberalized market, while often having less and simpler regulations, can also have regulations in order to increase efficiency and protect consumer's rights
PROJECT REPORT
- 100 -
Insourcing Insourcing is a business practice in which work that would otherwise have been contracted out is performed in house. Insourcing is a business decision that is often made to maintain control of certain critical production or competencies. KYC norms A KYC profile is an aggregation of information on a customer. This information is used to get to know the customer better and to understand and above all to be able to assess its business operations and activities. Information on its financial condition should help the financial institution to check the plausibility of the statements made. Leverage Leverage (or gearing) is using given resources in such a way that the potential positive or negative outcome is magnified. It generally refers to using borrowed funds, or debt, so as to attempt to increase the returns to equity.
PROJECT REPORT
- 101 -
Market risk Market risk is the risk that the value of an investment will decrease due to moves in market factors. The four standard market risk factors are: Equity risk, Interest rate risk, Currency risk, Commodity risk. Liquidity Quality that makes an asset easily convertible into cash with relatively little loss of value in the conversion process. Sometimes used more broadly to encompass credit in hand and promises of credit to meet needs for cash. Non-Performing Asset (NPA) A NPA is a credit facility in respect of which the interest has remained past due for two quarters or more
PROJECT REPORT
- 102 -
Outsourcing The process of outsourcing formalizes the description of the non-core operation into a contractual relationship between the client and the supplier. Under the new contractual agreement the supplier acquires the means of production which may include people, processes, technology, intellectual property and assets.
Productivity
In economics, productivity is the amount of output created (in terms of goods produced or services rendered) per unit input used.
PROJECT REPORT
- 103 -

Project Report Mba

Hochgeladen von

Dokumentinformationen

Copyright

Verfügbare Formate

Dieses Dokument teilen

Dokument teilen oder einbetten

Freigabeoptionen

Stufen Sie dieses Dokument als nützlich ein?

Sind diese Inhalte unangemessen?

Copyright:

Verfügbare Formate

Project Report Mba

Hochgeladen von

Copyright:

Verfügbare Formate

AXIS BANK LTD (RETAIL ASSET MANAGEMENT)

RETAIL ASSET MANAGEMENT OF AXIS BANK LTD

AXIS BANK LTD (RETAIL ASSET MANAGEMENT)

Place: Siliguri Date:

_______________ ASHIM SAHA (Regd.Number: 520838870)

AXIS BANK LTD (RETAIL ASSET MANAGEMENT)

Chapter~5 I. II. III. CONTACT CENTRE~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~81 SCOPE OF ACTIVITY~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~82 CENTERLISED MONOTORING~~~~~~~~~~~~~~~~~~~~~~~~~85

AXIS BANK LTD (RETAIL ASSET MANAGEMENT)

LIST OF TABLE AND ILLUSTRATIONS

AXIS BANK LTD (RETAIL ASSET MANAGEMENT)

AXIS BANK LTD (RETAIL ASSET MANAGEMENT)

AXIS BANK LTD (RETAIL ASSET MANAGEMENT)

SUMMARY OF THE PROJECT

AXIS BANK LTD (RETAIL ASSET MANAGEMENT)

RESEARCH DESIGN / METHODOLOGY

AXIS BANK LTD (RETAIL ASSET MANAGEMENT)

AXIS BANK LTD (RETAIL ASSET MANAGEMENT)

AXIS BANK LTD (RETAIL ASSET MANAGEMENT)

AXIS BANK LTD (RETAIL ASSET MANAGEMENT)

AXIS BANK LTD (RETAIL ASSET MANAGEMENT)

return.Business situation in the credit

consumer or company related such as mortgage loan ,home

AXIS BANK LTD (RETAIL ASSET MANAGEMENT)

The objectives of loan pricing

AXIS BANK LTD (RETAIL ASSET MANAGEMENT)

AXIS BANK LTD (RETAIL ASSET MANAGEMENT)

AXIS BANK LTD (RETAIL ASSET MANAGEMENT)

AXIS BANK LTD (RETAIL ASSET MANAGEMENT)

AXIS BANK LTD (RETAIL ASSET MANAGEMENT)

AXIS BANK LTD (RETAIL ASSET MANAGEMENT)

AXIS BANK LTD (RETAIL ASSET MANAGEMENT)

Interest rate 11.25% - 14.75% 13.5% - 20.5% 9.75% - 12.5% 11.5%

AXIS BANK LTD (RETAIL ASSET MANAGEMENT)

Rs.100000Rs.200000 Above Rs.200000 Less than Rs.25000 Rs.25001-Rs.50000 Above Rs.50000

AXIS BANK LTD (RETAIL ASSET MANAGEMENT)

AXIS BANK LTD (RETAIL ASSET MANAGEMENT)

AXIS BANK LTD (RETAIL ASSET MANAGEMENT)

AXIS BANK LTD (RETAIL ASSET MANAGEMENT)

AXIS BANK LTD (RETAIL ASSET MANAGEMENT)

LAST PAYMENT DATE BUC

48 22.11.2007 30-6 36 23.11.2007 48 48 48 48 48 24.11.2007 25.11.2007 21.11.2007 24.11.2007 25.11.2007

90-1 0-30 0-30 0-30

AXIS BANK LTD (RETAIL ASSET MANAGEMENT)

AXIS BANK LTD (RETAIL ASSET MANAGEMENT)

AXIS BANK LTD (RETAIL ASSET MANAGEMENT)

AXIS BANK LTD (RETAIL ASSET MANAGEMENT)

AXIS BANK LTD (RETAIL ASSET MANAGEMENT)

Max FOIR on net income 70% 70% 75%

AXIS BANK LTD (RETAIL ASSET MANAGEMENT)

AXIS BANK LTD (RETAIL ASSET MANAGEMENT)

GL Head 69006 Scheme Code PH_LNPHG_floating PH_LNPHG_fixed

AXIS BANK LTD (RETAIL ASSET MANAGEMENT)

Personal Information Age

Income Information 20 Net Present Income from all sources 20 13 8 5

AXIS BANK LTD (RETAIL ASSET MANAGEMENT)

Tota Ex. l Mar ks 15 15

Net Assets (Total Assets Liab.)

Organisation Information Organisation (*)

AXIS BANK LTD (RETAIL ASSET MANAGEMENT)

Tota Ex. l Mar ks

ii) Member Since

100 5 1 5 6 2 7 8 9 10 3 1 5 5 5 11 (3+2 ) Total Marks 100

CREDIT SCORING RATING Point Nos. 1 2 3 4 Max Scores Marks Scored 10 1 10 20 0

Cut off Score = 60

Chapter~5 I. II. III. CONTACT CENTRE~~~~~~~~~~81 SCOPE OF ACTIVITY82 CENTERLISED MONOTORING~85