SUMMER INTERNSHIP REPORT ON

HDFC CAR LOAN PROCESS AND FINANCIAL ANALYSIS

Submitted To
Prof. Rajesh Mehrotra Director School of Business and Management

Submitted By
Chetan kumar nagar PGDM-3

RESEARCH METHODOLOGY

Primary data: All the people from different profession were personally visited and interviewed. They were the main source of data. The methods of the collection of primary data was direct personal interview Secondary data: It was collected on the basic of organisation files, official records, newspapers, magazine, management books, preserved information in the companys database and the website of the company.

OBJECTIVE OF STUDY

To study the various complexities involved in the loan process of HDFC.

To know the various loan provided by the HDFC bank.

To know the various requirements fulfilled by customers to get from HDFC bank. To study the various facilities provided by HDFC bank to customers for taking loans. Recommend the valuable suggestion which may increase the faith of new customers.

BANKING IN INDIA

Banking in India originated in the last decades of the 18th century.

The first banks were THE GENERAL BANK OF INDIA, which is now defunct.
The oldest bank in existence in India is the STATE BANK OF INDIA, which originated in the BANK OF CALCUTTA in June 1806.

The first fully Indian owned bank was the ALLAHABAD BANK, established in 1865.

MAJOR PLAYERS IN INDIA

State Bank of India HDFC Bank ICICI Bank HSBC Bank IDBI BANK City Bank Axis Bank Punjab National Bank ING Vysya Bank Union Bank of India

COMPANY PROFILE
Housing Development Finance Corporation Funded in 1977 by Hasmukh bhai Parakh HDFC Bank was incorporated in August 1994 Among the first in new generation commercial banks Registered office in Mumbai, India Promoted by HDFC, the parent company IPO in India in 1995 Listed in NSE, BSE, NYSE(ADR)

CONTED

Type Founded Headquarters Industry

Products

Website

public 1994 HDFC Bank Ltd., Mumbai, India Banking, Insurance Capital Markets and allied industries Loans, Credit Cards, Savings, Investment Vehicles, Insurance etc. www.hdfcbank.com

NETWORK
761 branches 1977 ATMs in the country 327 cities in India 16 branches in Middle east 6 in Africa Representative offices in Hong Kong, NewYork, London & Singapore.

MISSION
World Class Indian Bank Benchmarking against international standards. Best Practices in terms of product offerings, technology, service levels, risk management and audit & compliance. To build sound customer franchises across distinct businesses.

PRODUCT & SERVICES

Travelers Cheques Credit Card Home Loan Personal Loan Auto Loan Foreign Currency Cash Foreign Currency Demand Drafts Cheque Deposits Remittances Trade services Mutual funds Insurance

ACHIEVEMENTS
HDFC Bank merged with TIMES BANK in 2000. HDFC Bank wins the Asian Banker Best Retail Bank in India Award 2008 for outstanding performance. HDFC Bank chosen as one of Asia Pacifics best50 companies by Forbes magazine. Best Bank in the Private Sector 2008. HDFC Bank ties up with Qatar National Bank. HDFC Bank merged with CENTURION BANK OF PUNJAB in 2007

LOANS PROVIDED BY HDFC

Home Loans Personal loan Car loan Two wheeler loan Commercial Vehicle loan Loan against securities Farm Equity Loans Construction Equipment loan Office Equipment loan Medical Equipment loan

PRODUCT OFFERINGS

New Car loans: Funding of up to 100% of ex-showroom value Tenors from 12-84 months Competitive pricing Insurance of car facilitated by the bank Used car Loans: Funding of up to 85% of valuation of car Tenors from 12-60 months Competitive pricing Insurance of car facilitated by the bank Car N Cash: Refinance on your existing car

ELIGIBILITY & DOCUMENTATION :

SALARIED INDIVIDUALS

Eligibility Criteria

Minimum age of Applicant: 21 years Maximum age of applicant at loan maturity: 58 years. Minimum employment: 1 year in current employment and minimum 2 years employment. Minimum annual Income: Rs 100000 net annual income. Telephone: Must at residence.

Documents required:
Proof of Identity: Passport copy, PAN Card, Voters ID, Driving License (Laminated Recent, legible). Income Proof: Latest salary slip with form 16 Address Proof: Ration card/Driving license/Voters card/Passport copy/Telephone bill copy/Electricity bill/Life insurance policy PAN Card. Bank Statement: Not mandatory

SELF EMPLOYED

Eligibility Criteria:

Minimum age of Applicant: 21 years. Maximum age of Applicant at loan maturity: 65 years. Minimum Annual Income: Net profit Rs. 60000 p.a. for standard cars and Rs.100000 p.a. for mid-sized and premium cars. Telephone: Must at residence.

Documents required:
Proof of Identity: Passport copy, PAN card, Voters ID, Driving License (Laminated Recent, legible). Income Proof: Latest ITR Address Proof: Ration card/Driving license/Voters card/Passport copy/Telephone bill copy/Electricity bill/Life insurance policy PAN Card. Bank Statement: Waived for small cars for mid-sized and premium cars if income greater then Rs. 1.5 lacs then bank statement requirement can be waived.

PARTNERSHIP FIRMS, PRIVATE LIMITED COMPANY AND PUBLIC LIMITED COMPANY

Eligibility criteria: Minimum Income: Net profit Rs. 60000 p.a. for standard cars and Rs. 100000 p.a. for mid-sized and premium cars. Minimum turnover: Turnover Rs. 4.5 lacs. Telephone: One phone at least at business and at residence of the loan executing partner. Documents required: Proof of Identity: NA Income Proof: Audited balance sheet, Profit & Loss Account for latest two years and the latest 2 years IT returns of company. Address proof: Telephone Bill/Electricity Bill/Shop & Establishment Act certificate/ SS registered certificate/Sales Tax certificate. Bank Statement: (except private and public ltd. companys) Waived for small cars, for mid-sized and premium cars if income is greater thenRs. 1.5 lacs then bank statement requirement can be waived.

NRI LOANS:

NRIs can avail of new car loans from HDFC Bank for the use of the vehicles by their relatives in India. Additional documents required are as follows :

Contract copy and salary slip of NRI. Endorsement on passport for last 3 years. Proof of ownership of property. Post-dated cheques must be from the resident account of the borrower.

Approval Plan

If you have an HDFC Bank Preferred Account or a Corporate Salary Account with HDFC Bank for more than six months, you can get fast approvals on your loans with minimal documentation.

ELIGIBILITY & DOCUMENTATION:

Segment

Best Guide to car segments and Funding

A: Mini B:Compact

Ex-Showroom Value (In lac) <=2.15 2.2-4.5

Funding % 80-100 90-100

Examples Maruti 800 Alto, Swift IndicaSantro Getz, Estillo, a-star, Palio, i10

C:Mid-Size

4.5-10

75-100

I20, Accent, Swift, Dzire, Honda Jazz, Verna, SX4, Linea, Ikon, Fusion, Optra, Fabia, Indigo Toyota Corolla, Civic, Skoda, Hyundai Elantra, Optra Magnum

D:Executive

9.5-16

75-95

D+: Premium

16-25

75-90

Honda Accord, Camry, Hyundai Sonata, Skoda Laura, Superb, Passat, Jetta, Tenna, Fiat 500 Mercedes, BMW, Audi, Porche and all other imported

D+: Luxury

25+

75-85

MUV

2.20+

75-90

Omni, Innova, Xylo, Scorpio, Tavera, Bolero,Victa, Safari CR-V Endeavour, Pajero, MonterX-Trail, Prado, Tucson, Captiva, Grand Vitara, Mitsubishi outlander

SUV

14+

75-85

Funding rang is indicative. Pre-approved customers could get up to 100% ex-showroom

FEES & CHARGES FOR NEW CAR LOANS

Description of charges New Car Loans

FC Charges

6 % of POS for preclosures within 1 year from 1st EMI 5% of POS for preclosures within 13-24 months from 1st EMI 3% of POS for preclosures post 24 months from 1st EMI No foreclosure allowed within 6 months from date of availing the car loan At actuals 2% per month Upto 2.5 Lacs : Rs.2150/2.51 to 4 lacs : Rs.3150/> 4 Lacs :Rs. 3650/Rs 500/Rs 1000/-

Stamp Duty Late Payment Penalty Processing fees

Cheque swapping charges Loan cancellation / re-booking charges

Duplicate Repayment Schedule charges

Legal, Repossession & Incidental charges Duplicate no due certificate / NOC Transaction fees for SurakshaKavach Loan Reschedulement charges Special NOC

Rs 500/At actuals Rs 500/Rs 500/- per case As applicable at the time of reschedulement Rs. 500/- per request

COMPANY FINANCIAL ANALYSIS

COMPANY BALANCE SHEET

SHARE CAPITAL

APPROVALS & DISBURSEMENTS (CUMULATIVE)

CRORES
400000 350000 298061 300000 250000 Rupees 200000 145764 150000 100000 50000 0 2007 2008 2009 Years 2010 2011 119281 188284 152156 237450 191806 242219 302533

IN

373246

Approval Disbursement

Interpretation: There is a increase in difference between loans approved of disbursed year by year.

COMPANY PROFIT (IN CORES)

6000
5000 4867

4000 3219 3000 2737 2285 2000 1968 1570 1943

3916 3535

Rupees

2826 Profit Before Tax Profit After Tax

1000

2007

2008

2009 Years

2010

2011

Interpretation : The profits after tax of the company increased by 125% from 2007 to 2011. and increase in profit before tax is 147% from 2007 to 2011. Difference between the percentage of income before tax and after tax is due to government regulations & policies.

SWOT ANALYSIS
STRENGTHS
Support of various promoters High level of services Knowledge of Indian market Quality business High profile clients

WEAKNESS
Gaining attention towards the proposal becomes difficult Not covering Rural areas

OPPORTUNITY
Can expand the portfolio Can make easier loan process People are becoming more service oriented Can Provide additional services

THREAT
From various competitors like foreign banks and government banks Delinquency control Future market trends

SUGGESTIONS
Loans should be provided very easily. There should be less formality for taking loan. Terms and conditions should be easily understandable. Loan should be provided as soon as possible. Interest rate should be less as compare to other banks. The customers should be comfortable while taking loans as compared other banks.

ANY QUERIES