Submitted To :Prof. Vishal

HDFC AND INDUSIND BANK HOME LOAN

BUSINESS POLICIES STRATEGIC MANAGEMENT

GROUP MEMBERS

NAME ROLL NO.LAKSHMI YADAV MBABI012001AANURADHA REDDY MBABI012002HEMANGI BHISE MBABI012003REETI SINGH MBABI012004RICKY SINGH MBABI012005POOJA LAKHANI MBABI012006AANKITA MUKHERJEE MBABI012007KIRAN HEMNANI MBABI012008VINAYA NADAR MBABI012009HITESH GAONKAR MBABI012010

Presented By :- Banking And Insurance Management Students

TOPICS OVERVIEW OF BANKING INDUSTRYHOME LOANS IN INDIAINRODUCTION OF BANKPROCESS OF HOUSING LOANPORTERS FIVE FORCE MODELVALUE CHAIN ANALYSISBUSINESS STRATEGIESCONCLUSION

OVERVIEW OF BANKING INDUSTRY

The banking system is an integral sub-system of the financial system. It represents an important channel of collecting small saving from the household and leading it to the corporatesector. The Indian Banking system has the Reserve Bank of India(RBI) as the apex body for all matters relating to the banking system. It is the "central bank” of India. It is the banker to all other banks.

The country has 87 scheduled commercial banks with deposits worth Rs.71.6 trillion. Of this, 26 are public sector banks, which control over 70 per cent of India’s banking sector, 20 are private banks and 41 are foreign banks.

HOME LOAN A home loan is a loan which is granted to the borrower by banks and financial institutions for the purpose of buying a house.

Home Loan is the funds buyer has to borrow usually from a bank or other financial institutions to purchase a property, generally secured, by a registered mortgage to the bank over the property being purchased.

The banker possesses a conditional ownership over the property i.e., if the borrower fails to repay the loaned amount, then the banker has the right to realize the debt amount by selling off the property.

The government has recently announced interest rate subsidy of 1% for housing loans up to Rs. 10 lakhs and earmarked Rs. 1,000 crores for the scheme.

HOME LOAN IN INDIA

Housing Development Finance Corporation Limited (HDFC Ltd.) was established in 1977 with the primary objective of meeting a social need of encouraging home ownership by providing long-term finance to households.Over the last three and a half decades, HDFC has turned the concept of housing finance for the growing middle class in India into a world-class enterprise with excellent reputation for professionalism, integrity and impeccable service.

TYPES OF HOME LOANS Home Loans For Individuals

Home Loans For NRI’S

Home Improvement Loans

Home Extension Loans

Short Term Bridging Loans

Loan Against Property

PROCEDURE FOR GETTING HOUSING LOAN

Step 1: Application form Step 2: Personal Discussion Step 3: Banks Field Investigation Step 4: Credit appraisal by the bank and loan sanction

Step 5: Offer LetterStep 6: Submission of legal documents & legal check

Step 7: Technical / Valuation check

Step 8: Valuation Step9: Registration of property documents

Step10: Signing of agreements and submitting post- dated cheques.

LOAN IS ASSESSED

BUSINESS LEVEL STRATEGY COST LEADERSHIPCost controlOverhead controlAvoid marginal accounts  DIFFERENTIATIONQualityDeliveryCredit and TermsServiceTraining

FOCUS on the message

INDUSIND BANK IndusInd Bank, which commenced operations in 1994, caters to the needs of both consumer and corporate customers. Its technology platform supports multi-channel delivery capabilities. As on June 30, 2013, IndusInd Bank had 530 branches, and 1003 ATMs spread across 380 geographical locations of the country.

Recent History (2012) Indusind Bank opens it's first Currency Chest in Mumbai.

Suzuki Motorcycle partners with IndusInd Bank to offer retail customer finance

IndusInd Bank introduces new foreign currency pre-paid travel card

TYPES OF HOME LOANS Purchase of land and construction of a residential property.

Purchase of New Flat / House.

Purchase of old house / flat along with undivided share of land.

Extension/ modification of existing house / flat.

Loan against property (Residential property)

PROCEDURE FOR HOME LOAN

The financier provides home loan specialists who assist you throughout the home loan process. 80% of the cost of the property (including the cost of the land) is funded by the lender and taking into consideration the repayment capacity of the borrower.

Home Loans can be applied for either individually or jointly. Proposed owners of the property will have to be co-applicants. However, the co-applicants need not be co owners. 

Porters five force model

Value chain analysis

BUSINESS LEVEL STRATEGIES

COST LEADERSHIPMarket Risk ManagementInternal audit and inspectionOperational risk managementDIFFERENTIATIONQualityDeliveryCredit and TermsServiceFOCUSFocus is on the message and Focus on retail finance which helps in their performance

CONCLUSION Thus we can conclude by saying that , the market share of HDFC bank with respect to home loans falls second and is greater than INDUSIND bank.

The PSUs are now becoming more customer centric & tech savvy and SBI stands first in market share of home loan ratio.

The emergence of retail banking has also brought into focus the performance of the private banks & their aggressive banking practices. The new private banks have used technology to grow.