axis bank-vehicle loan

7/24/2019 Axis Bank-Vehicle Loan

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Axis Bank- Vehicle Loan-Car Loan

Introduction:

Axis Bank offers its valuable customers a variety of loans in India that will suit

their needs. At Axis bank you are sure to find a loan product that is just meant for

you. We offer loans in various denominations so that you can pursue your dreams

of buying a car, a home or to send your child abroad for higher education. ou can

also avail our loan facilities through the internet by providing few basic details and

our representative will promptly respond to your !uery for getting a loan.

"o matter what be your need, our liberal criteria for loan application processing

will see to it that your application is processed in minimum time and in a hassle#

free manner.

A car loan is an amount of money taken from a lending provider to purchase a new

or used car. $he individuals agree to repay the total amount of the loan along with

the lending interest rate amount to the lender %often banks& as and when re!uired.

Individuals can choose a car from a list of models and manufacturers in India

according to their annual income and budget. 'resently, a common man can fulfill

his dreams of purchasing a car by getting an auto loan. According to your

re!uirements and financial situations, you can get auto loans from a variety of auto

financing services such as (ahindra )inance, $ata )inance, Bajaj )inance and

*tate Bank of India loans.

)or example, if you are thinking about financing options with Bajaj )inance, you

must first give your information regarding the type of loan to the company. $he



Bajaj )inance associates will then get in touch with you to assist with the loan

eligibility amount and the different offers and schmes available with their bank.

$hese days, almost everyone has the desire to buy a car which best suits them

according to their re!uirements. If you are one that has the desire to have a car,

then simply fill out our form on Bankand)inance.com to get free car loan !uotes.

ou may also want to apply for car insurance through our site.

Types of Car Loan

$here are several different types of auto loans so that every individual will find at

least one auto loan that is able to meet their re!uirements.

• New Car Loan

A new car loan is taken out to purchase new vehicles generally from dealerships.

As citi+ens of India are getting higher pay packages, many salaried and self#

employed individuals are looking to get their dream car.

(any individuals have the cash in hand and they prefer to purchase a new car on

the spot. $his however does not apply to the majority of those falling under this

category. (ost people will contact banks for information about their auto loans and

look to proceed from there. At Bankand)inance.com, we provide you with this

information along with the lowest lending interest rate from various auto loans

providers such as Bajaj )inance, $ata and (ahindra.

$here are many banks which provide new car loans with low car loan rates in

India. As the financial market fluctuates in India, there may be an increase in the

lending interest rate for new car loans. Because of this situation, be careful when it



comes to getting an auto loan and plan according to your financial situations and

position. se our loans calculator to calculate the amount which you will need to

pay every month.

• Used Car Loans

sed auto loans are taken by the borrower to purchase a used car from either a

second hand car dealer or an individual seller. $here are a number of lending

institutions which provide used car loans in India. Before going for a car loan,

check the various offers and schemes from Bajaj )inance and other providers.

*ometimes people can-t afford to buy a new car and in such cases, going for a used

car is the best option. $he amount of money that you can afford per month should

also be taken into consideration in order to take the right decision for auto loans

from top banks and lenders such as III, A/I*, 01), *BI and Bajaj )inance.

$o get used auto loans, banks usually charge a high lending interest rate. It-s

always good to check with banks about the lending interest rate because buying a

used car in India will definitely be cheaper than purchasing a new car. $he

depreciation of used cars is always less than that of a new car. In most cases the

owner of a car will apply for auto insurance for the used car and the cost of

insurance will be lower. 2et car loan !uotes instantly by filling in your personal

details in our form.

At Bankand)inance.com you will learn more about personal loans, home loans and

two wheeler loans and the you are guaranteed to leave more enriched.

eatures ! Benefits:-



Axis Bank offers uni!uely tailored ar 3oan products that take the pain and hassle

out of buying a car. )lexible, transparent, !uick, and cost#effective, our ar 3oans

put the joy back into owning a car.

At Axis Bank, we reali+e that owning a car has increasingly become a necessity.

But we also reali+e that the price tag of your dream car may be just outside your

immediate grasp. Axis Bank4s Auto 3oans are just what you need to bridge the gap.

• ar 3oan value calculated on ex#showroom price of the vehicle

• Attractive interest rates on ar 3oans

• 3$5 up to 678 of the ex#showroom price on select models

• Auto loans available for salaried and self#employed individuals,

proprietorships, 0), 'artnership firms, 3imited 3iability 'artnership

)irms, $rusts, *ocieties and ompanies

• Banking surrogate schemes available

• 3oans offered from 9s. : 3akh onward

• ar 3oans tenure from : year to ; years

• alculate your monthly outgo with our ar 3oan <(I alculator

• *pecial benefit available for 'riority Banking, Wealth Banking and 'rivee

banking customers. $o know more, contact your 9elationship (anager

today=

http://www.axisbank.com/Calculators/Car-Loan-Calculator.html

http://www.axisbank.com/Calculators/Car-Loan-Calculator.html



• *pecial *urrogate *cheme available for lub 7> and hannel ?ne urrent

Account customers

•

*pecial *cheme for Axis Bank *alary A@ customers

"li#i$ility :-

Axis Bank offers ar 3oans at attractive interest rates to both salaried and self#

employed individuals who meet our age and income eligibility criteria.

%alaried Indi&iduals

• (inimum age of applicant : years

• (aximum age of applicant at loan maturity ;> years %onditions apply&

• Income (inimum "et Annual *alary of 9s. .C 3ac p.a. for all approved car

models

• Income eligibility As per latest salary slip and )orm :D

• <mployment (inimum : year of continuous employment

%elf-e'ployed Indi&iduals

• (inimum age of applicant :E years

• (aximum age of applicant at loan maturity ;7 years



• Income (inimum "et Annual Business income of 9s. :.E 3ac p.a. for

selected models and 9s. .> 3ac p.a. for others

•

Income eligibility # As per latest I$9

• <mployment (inimum F yrs in same line of business.

%elf-e'ployed Non Indi&iduals

• Income (inimum "et Annual Business income of 9s. :.E 3ac p.a. for selected

models and 9s. .> 3ac p.a. for others

• Income eligibility As per latest year I$9s and audited financial of years

along with computation of income

• <mployment (inimum F yrs in same line of business.

GAll of the above is subject to terms and conditions.

%che'e for (riority)*ealth)(ri&ee Custo'ers

<ligibility All 'riority@Wealth@'rivee customers with a vintage of D months

And

A minimum Average Huarterly Balance as below

• An AHB of 9s. : 3akh for last completed !uarters. AHB re!uirement to be

meeting for both the !uarters

(aximum loan amount restricted to F times the AHB in the last !uarters



%che'e for %alary Custo'ers

All customers having their *alary A@c with Axis Bank since the past F months and

working with the following organisation are eligible for this product.

"li#i$ility

• 'ublic 3imited 'rivate 3imited ompanies

• ("s

• 'ermanent employees of *tate @ entral 2overnment

• 'ermanent employees of 'ublic *ector ndertakings

• 'ermanent employees of reputed schools @ colleges

(ara'eters

• (inimum age of applicant : years

• (aximum age of applicant at loan maturity ;> years

• Income (inimum "et Annual *alary of 9s. .C> 3ac p.a.

• Income eligibility As per latest salary slip and )orm :D

• <mployment (inimum : yrs of continuous employment



+ocu'entation:-

List of Car Loan docu'ents re,uired

• Age proof

• I1 proof

• Application form

• 'hotograph

• 9esidence proof

• Income proof

• Bank statement

• *ignature verification proof

• 'ro#forma Invoice or 9ate 3ist

1ocumentation for salaried applicants

• 3ast F months salary#slip

• )orm :D or Incomne tax return

1ocumentation foe self employed applicant

• 3ast F years Income $ax 9eturns with computation of Income



• 3ast F years A ertified@Audited Balance *heet and 'rofit 3oss

Account.

(ost %anction ) (re +is$urse'ent +ocu'entation

• 3oan Agreement duly signed along with 9$? set

• *tanding Instruction %*I& 9e!uest @ <* )orm @ 'ost 1ate he!ues %'1s&.

*ecurity he!ues re!uired for *I and <*

• (argin money receipt

Interest ates ! Char#es:-

?ne of the prime considerations while seeking car finance is the ar 3oan interest

rate. $his is not surprising because the interest rate is one of the factors that

determine how much <(I you will work out.

Axis Bank offers some of the most attractive ar 3oan rates in India, besides the

benefits of simple processes, flexible tenures, and unmatched customer service.

?ur low ar 3oan rates allow you to bring down your monthly outgo. <ven as ar

3oan finance rates fluctuate based on external market conditions, Axis Bank

ensures that your auto loan interest rates are competitive and reasonable.

Car Loan Interest ate

$he Axis Bank interest rates are among the most attractive ar 3oan rates in India

today. ?ur auto loan rates ensure that you have to pay less every month.

ates of Interest (rocessin# ee. +ocu'entation Char#es.

::.7>8 # :.7>8 9s. F7>> to 9s. 77>> 9s.F>>@#



G Inclusive of *ervice $ax

Car Loan /ther Char#es

We offer our ar 3oans at attractive interest rates. In addition, our processing

charges are transparent and kept to a minimum so that you pay less upfront. 0ere4s

what you have to pay

TypeChar#es

:he!ue Bounce @ Instrument 9eturn

harges9s 7>>@ Instance

he!ue @ Instrument *wap harges 9s 7>>@ InstanceF 1uplicate *tatement issuance charges 9s 7>>@ Instance

C1uplicate 9epayment *chedule

issuance charges9s 7>>@ Instance

7 1uplicate "o 1ues ertificate @ "? 9s 7>>@ Instance

D 3ate repayment penalty 8 per month; 3oan cancellation @ 9e#booking 9s :>>>@ instance

E )oreclosure harges78 of the 'rincipal ?utstanding plus

service tax

6 'art payment charges GG78 of the 'art 'ayment amount plus

service tax:> *tamp 1uty At Actuals:: Issuance of redit 9eport 9s 7>@ Instance

• *ervice $ax as applicable will be levied

• 'art payment will be allowed twice in a loan calendar year and once in a loan

calendar month.

• $he minimum amount accepted for part payment will be e!ual to one <(I and

maximum amount will be 78 of the balance principal in one year.



Axis Bank &ehicle Loan +etails

Interest ate #:>.7>8 to :7.>>801onthly reducin# $alance2

(rocessin# ees #"il

Loan Tenure #: year to 7 ears

(re Closer Char#es #:>8 %plus services tax& of prepaid amount

Within first six month. 78



ou are probably eligibility for an Axis Bank 5ehicle 3oan if you are

• 3ess than ;7 years old.

•

*alaried or self#employed with regular income.• <arn more thsn the minimum income re!uired.

Axis Bank ar 3oan amount eligibility is based on these factors

• (inimum income re!uired 9s. >,>>> per month

• 3oan capped J678 of the exKshow room price

• <(Is of other loans lower your eligibility

Increase your eligible Axis Bank ar 3oan amount by these steps

• 'ay of your credit card bills

• hoose longer $enure loan up to 7 years.



•

e&iews:-

Chapter-II

345 e&iew of Literature

343 esearch 1ethodolo#y

346 7ypothesis of the %tudy348 Li'itations of the %tudy

::39 ::

L L

0ealth of banking industry indicates the health of the economy of

a country. Indian Banking industry has witnessed changes after the

liberali+ation of the trade of country. <arlier the Indian banks were slow

in functioning and it was not much according to the customers needs. $he

government controls on Banking system were tighter but now within the

last two decades the Banks are adjusting themselves towards the (arketing

concept bringing more products suitable as per the demand of market. In

Indian market the 'ublic sector Banks and 'rivate sector Banks are

operating. Both sector banks are operating in the competitive market and

aspiring for growth. 5arious views on 'ublic and 'rivate sector Banks

are as follows M

%arkar and +as find 'ublic *ector Banks comparing poorly with

the other two categories. 0owever, they caution that no firm inference

can be derived from a comparison done for a single year:.



%atya'urthy clarified the concepts of profits, profitability

productivity applicable to the banking industry organi+ed by the bank

managements that the pressure on the profitability is more due to the

factors beyond their control.

%in#h ! u'ar analy+ed that deposits is a major determinant of

spread followed by borrowings and labor. $he study again concluded

:. *arkar, '.. 1as, %:66;& 1evelopment of composite index of banking

efficiency $he Indian case, 9BI occasional papers, :E%:& D;#;7

. *atyamurthy, B%:66C&. A study on interest spread in commercial banks in

India. "IB(, working paper

::6; ::

that average technical and allocative efficiency are the highest in foreign

banks.F

+as concluded that while there is a welcome increase in emphasis

on non# interest income, banks have tended to show risk#averse behavior

by opting for risk# free investments over risky loansC.

%in#la ! Arora studied the comparative performance of anara

Bank and Indian Bank that both the banks have improved their financial

performance during the study period where anara Bank has an upper

hand in growth of deposit, advances and average working funds. In case

of productivity it is rising in both the banks but remained much higher

in anara Bank.7

%wa'y concludes that in many respects "ew 'rivate *ector Banks

are much better than 'ublic *ector Banks, even they are better than

foreign sector banks.D

+r irdos T4 %hroff says that Indian Banking industry will have

to adopt latest information technology not only for the survival of Banks



F. *ingh, I Numar, '.%>>D& 3iberali+ation and efficiency $he case of Indian

banking. Indian management studies journal, :>%C& ;;#6F

C. 1as, A %:666&. 'rofitability of public sector banks A decomposition model.

9BI occasional paper, >%:& C7#7D

7. *ingla Arora, 9.*. %>>7&. )inancial performance of public sector banks A

comparative study of anara bank and Indian bank. 'unjab journal of Business

studies, %:& E;#6F

D. *wamy, B.".A %>>:&. "ew competition, 1eregulation and emerging changes

in Indian banking An analysis of the comparative performance of different

bank groups. Bank HuestM$he journal of India institute of banking and finance,

;%F& F#

::65 ::

but also to operate with greater efficiency and flexibility. Banks which

invest wisely in I$ and turn their investments into successful application

will be the leaders in the competitive economy of twenty first century.;

%a#hir Ah'ed wrote that in the Indian context, a major element

of financial sector reforms has been the adaption of a set of prudential

measures relating to capital ade!uacy, income recognition, asset

classification and provisioning, exposure norms, disclosures, investment

and risk management as well as asset liability management aimed at

imparting strength to the banking system.E

Vittal mentioned that after the Industrial 9evolution we now have

the $echnology 9evolution. $echnology is changing the way we live, the

way we work and the nature of work life itself. As science continues to

advance we will increasingly see technology being integrated as a natural

part of our day#to#day existence. All this will mean products that are

readily accessible at reduced costs to all those who want it. )or architects



it could be designing , for environmentalists this could be a means of

increasing awareness and perhaps, avoiding disasters throughout the world,

authors may have a wider canvas to sketch on, for stock market traders

this could mean better decision while dealing in many markets for

manufacturing giants this could aid in inventory and distribution

management, and for financial markets this would mean catering to the

;. 1r )irdos $. *hroff %>>;&. (odern Banking $echnology, "orthern book centre,

1aryaganj, "ew 1elhi, 'ages :

E. *aghir, Ahmed, )inancial reforms in India, (ittal publications, >>D, "ew

1elhi, 'age CD

::63 ::

smallest financial needs of customers in increasingly competitively

condition.6

<eitha'l ! =re'ler are of the view that as a customer continues

to make purchases from a firm and to receive value in the exchange

relationship, the firm begins to ac!uire specific knowledge of the customers

needs, allowing it to create an offering that directly addresses the

customer-s situation.:>

Adrian (ayne is of the view that the three levels beyond the core

or generic product represent the opportunities to provide added value to

customers. $his added value may be solely at the emotional level it is

nevertheless real to the customer. 5alue is added through the creation of

strong brand names and the owners of the brands can command premium

prices for them. Branding has an important role in helping customers be

assured of uniform service !uality.::

otlar said that (arketing came into banks in the late :67>s, not

in the form of marketing concept, but in the form of advertising and



promotion.:

6. 5ittal, " %>>:&. $he emerging challenges *trategies and solutions for Indian

banking. IBA Bulletin F %F& 6#:7

:>. Oeithaml 2remler P*ervices marketingQ $A$A (c2raw#0ill, >>E, 'ages

:EC :E7

::. 'ayne. A. %>>F& P$he <ssence of services marketingQ, 'rentice 0all of India,

"ew 1elhi, 'age :;

:. Notler, '. %:6E>& P(arketing (anagement Analysis, 'lanning and ontrolQ,

'rentice 0all of India, "ew 1elhi, 'age :.

::66 ::

%axena says that in India, however, the importance of marketing

was reali+ed much later. 1uring :67>s, Indian banks were more

conservative and inward looking, concerned mainly with their profits. As

a matter of fact, competition was not in existence. ?n the one side of the

fence was *tate Bank of India alone, enjoying 2overnment patronage and

on the other side were private commercial banks, local by orientation,

primarily serving the interests of the controlling business houses. It was

the phase of select banking and even the communication through the

media was looked down upon with contempt as something against the

tenets of banking culture. <ven the advertisements released till :6DD were

very few and far between:F.

a>an says that, after nationali+ation of fourteen major commercial

banks in :6D6, banks woke up from their splendid isolation and found

themselves in a highly competitive and rapidly changing environment,

with competition becoming fierce day by day. Banks approach towards

customers and market underwent a change and focus was gradually shifted

to marketing their products. $he first major step in this direction of



marketing was initiated by *tate Bank of India when in :6; it reorgani+ed

itself on the basis of major market segments # small industries and small

businesses, agriculture, commercial and institutional, and personal and

service banking. Again in :6;F, the *tate Bank of India took yet another

:F. *axena, N.N %:6EE& PBank (arketing oncepts and AppplicationsQ, *kylark

publications, "ew 1elhi, 'age :C;

::68 ::

major leap forward in the direction of marketing when it took upon the

responsibility of involving itself in the neighborhood affairs and winning

the cooperation of community development efforts. 9eali+ing the duty

towards community development, individual banks, in order to have close

contact with the masses, also started actively participating in many of the

social, economic and education functions@ceremonies arranged by different

organi+ations.:C

A>it? Bhattacharya and =hose wrote that in the early :6E>s,

banks started thinking in terms of product development, market penetration

and market development.Banks also accelerated their process of e!uipping

their staff with the marketing capabilities and attitudes through different

programmes.:7 :D

=hose wrote that apart from unprecedented growth and functional

diversification, there has, in fact, been a change in the concept, precept

and outlook of banking.:;

%undara' said that the post#nationali+ation era witnessed a

:C. 9ajan, ".". %:66& P(arketing of bank servicesQ $he banker, vol F6, "o 6,

"ovember, 'age >

:7. Ajit, *. %:6ED& $raining for Bank (arketingQ, )inancial express, Bombay,

1ecember F:, 'age D



:D. Bhattacharya, B.". and 2hose, ".N. %:6E6& P(arketing of bank services,

'roblems and perspectivesQ, <conomic and political weekly, )ebruary 7, 5o.

C, "o. E.

:;. 2hose, B.N. %:66>& Pproductivity in banksQ, *tate Bank of India, (onthly

9eview, August, 'age FC

::6@ ::

complete transformation of Indian banking from Rclass- banking to Rmass

banking, from Rasset based- lending to Rproduction oriented- lending and

from Relite- banking to Rsocial banking-. $his present phase of marketoriented

banking or bank marketing started in early eighties. It could be

concluded that adoption of marketing concept in Indian banking as a

conscious and organi+ed effort is of recent origin. (arketing has emerged

now as the core business philosophy for financial service companies and

successes belongs to ones who excel in customer mindedness and

responsiveness. "ow the products are designed keeping in mind the needs

and wants of customers.:E

otler wrote that the Business <nvironment is characteri+ed by

economic, legal and technological changes. In a competitive environment,

companies can react by emphasi+ing operations and financial efficiency

and@or more focused product and market strategies.:6

Bhattacharya? 1unira>? Na#eswar? and a'chandra in their

studies highlighted branch expansion particularly in rural areas as one of

the contributing factors in decreasing customer dissatisfaction. $his

dissatisfaction can be removed when product variants are designed

according to the needs of rural customers. 3ot of dissimilarities exists

between a rural and urban area. <ach of them is far from being

:E. *undaram, *. %:6EC& P ustomers service in banks at cross roadsQ, the journal



of the Indian institute of bankers, vol 77, "o C, pp :#6

:6. Notler, '. %:666& P(arketing (anagement $he (illennium <ditionQ, 'rentice

0all of India, "ew 1elhi, 'age. 7>

::6 ::

homogeneous. $he income trends and financial assets vary considerably

and therefore rural banking deserves different approach.>, :, F

=urdeep? observed three areas which merit special attention for

the bankers as %i& !uick receiving and payment of cashS %ii& remittance

of funds, whether by means of drafts, mail transfers or telegraphic transfers,

with a minimum of delayS and %iii& collection of che!ues, bills, dividend

warrants, etc., at maximum speed. In all the three areas, he believes that

banks have a lot of say, and by cutting the delay at each stage, the

customer satisfaction can be improved significantly regarding financial

products. $o overcome growing customer dissatisfaction banks should

adopt two#fold strategy include creation of wide range of products, suitable

and beneficial to the customers C

*tate Bank of India-s home loan portfolio has recorded a ;F.ED per

cent growth against 9s D,FFE crore %9s DF.FE billion& as on *eptember

F>, >>6. $he country-s largest bank, the *tate Bank of India %*BI&, is

>. Bhattacharya, B.". and 2hose, ".N. %:6E6& P(arketing of Banking *ervices

in the 6>s, 'roblems and 'erspectivesQ, <conomic and 'olitical weekly, )ebruary

7, 5o C, "o.E

:. (uniraj, 9. %:66C& P*trategies to Improve ustomer *ervice in BanksQ, $he

Banker, Tune, pp.F:#FC.

. "ageswar, 9. %:6E;& Pustomer *ervice in Banks (ust ImproveQ, ojana,

5ol. F:, "o.:F, pp.>#F:.

F. 9amachandra, 9.B. %:66& PWhere the Bankers are not (arket#)riendlyQ, $he



Banker, F6%6&D#E.

C. 2urdeep, *. %:66C& P (arketing of *ervicesQ , 9awat publications, "ew 1elhi,

'age 6>.

::6 ::

eyeing aggressive targets as it looks at doubling its home loan portfolio

over the next three years.

PWe are hoping to have a home loan portfolio worth 9s lakh

crore %9s trillion& by (arch F:, >:7. As on *eptember F>, it stands

at 9s :>E,FE: crore %9s :.>E trillion&,Q said a senior bank official.

$he home loan portfolio implies the opening balance of loans plus

loans disbursed, after deducting loans repaid in a year.

According to an *BI official, the bank will target $ier#I and $ier#

II cities for growth in home loans. $he bank is also increasing the number

of retail assets central processing centres %9A'&.

P2rowth in cities like (umbai may be slow but we are seeing

growth in other cities. $his financial year, we opened F additional

9A's so far, which took the total number to :: centres. We may add

another :>#: centres during the remaining part of the financial year,Q

said the official. $he increase in 9A's will help the bank to sanction

more loans.

*BI-s home loan portfolio has recorded a ;F.ED per cent growth

against 9s D,FFE crore %9s DF.FE billion& as on *eptember F>, >>6.

0owever, a major part of this growth was due to *BI-s controversial

Rteaser loans- scheme, launched in )ebruary >>6.

According to 5aibhav Agrawal, vice#president %research& at Angel

Broking, *BI-s home loan target is a bit on the higher side.

P*BI may not be able to reach a portfolio si+e of 9s >>,>>> crore



%9s trillion& but I think they will surely manage to reach 9s :,;>,>>>

crore %9s :.; trillion& home loans portfolio by (arch F:, >:7.

::6 ::

Because home loans is under#penetrated and there is scope for

higher growth. If that happens, then *BI-s home loans portfolio will grow

at a faster rate than the industry growth,Q he said.

According to Agrawal, *BI could afford to offer loans at competitive

interest rates as it has lower cost of funds and wider branch network. 0e

estimates the cost of funds of *BI at about C>#7> basis points lower than

its peers.

$he *BI reduced the processing fee on home and auto loans by 7>

per cent for loans availed till 1ecember F:, >>6. With this reduction, the

bank is !uoting the lowest processing fee on both home and auto loans

in this festive season.

According to a senior *BI official, the reduction in processing fee

on home loans will result in a 9s 7,>>>#crore %9s 7> billion& growth in

portfolio by 1ecember >>6#end.7

A'andeep said that for nationali+ed banks, the share of fixed

deposits which was 7C.>8 of total deposits in :6;D, increased to 7;.778

in :6E7 while the share of current deposits declined from >.E8 to :;.6D8

over the same period % the share of saving deposits also declined slightly

that is from C.6E8 in :6;D to C.CE8 in :6E7&. )or public sector banks,

the proportion of current deposits declined from F.;C8 in :6;D to >.E8

in :6E7 while the fixed deposits and savings deposits witnessed an increase.

)ixed deposits increased from 7F.F68 to 77.D68 and the savings deposits

from .DD8 to C.>8 over the period :6;D#E7. )or *tate bank group



7. http@@www.rediff.com@money@report@sbi#eyes#rs##trillion#home#loan#

portfolioby#

march#>:7@>::>:6.htm

::69 ::

and private sector Indian banks the savings deposits share increased from

:E.:F8 to F.>8 and from F.>:8 to D.6;8 respectively over the

period :6;D#E7 however the share of fixed deposits of these two categories

of banks has shown a slight decline.D

$he III bank has adopted a conscious strategy of focusing on

current and savings account deposits and reducing its wholesale term

deposits base. urrent and savings account deposits increased :D8 to 9s

DD,6:C crore %* U:C. billion& at *eptember F>, >>;. urrent and

savings account %A*A& deposits constituted F>8 of total deposits at

*eptember F>, >>E compared to 78 at *eptember F>, >>;.;

1ishra is of the view that the III bank has been very successful

in transforming itself into a truly universal financial services firm. A look

at the firms financials illustrates the success that III has experienced.

Between ) :66D and ) >>> total income rose 6:8 to 9s EC.D

billion. 'A$ rose ;.D8 and total assets climbed E>8 to 9s D7F.6 billion.

1uring the same period, disbursements grew FDF8 to 9s 7E.FD billion.

III bank total assets increased to 9s :7.E billion at (arch F:,

>>:. $otal deposits increased F:7.ED8 to 9s DE:.>6 billion at (arch F:,

>>:. In addition, savings account deposits increased FC7.>E8 to 9s

E;.; billion in fiscal >>C from 9s :E.E: billion in fiscal >>>.E

D. Amandeep, Tanuary :66F P'rofits and profitability in commercial banksQ 1eep

and 1eep publications, 'ages C; CE

;. http@@www.icicibank.com@aboutus@pdf@HK)>6K9esults.pdf



E. (.". (ishra edited by (.. 'ande and *ubodh kumar, %>>7& PBanking

trends and practicesQ Anamika publishers and distributors private ltd, 1aryaganj,

"ew 1elhi, 'age# :7

::8; ::

Ashok %o' wrote that III established its international banking

group in >> in hopes of extending its success for domestic branchless

expansion. We started with the premise that we would follow the Indian

diaspora, which was located in various countries outside India, which led

us to look at markets like anada, the N and the *A, where we

initially established our footholds. *aid 5inod <aswaran, IIIs head for

retail banking for 9ussia. $he strategic focus in these countries had been

fee based services such as remittances %rather than deposit expansion&.

III saw an opportunity to help these customers, who were supporting

families back at home as well as buying properties there. III later

expanded its products offering by adding India centric products for

mortgages and car loans. )or customers living abroad who wanted to buy

a car or a house for their parents these types of services proved invaluable,

especially since local banks practically ignored this need6.

Indian auto market has more than F7 financers that offer auto

financing solutions to the intended car buyers. Being one of the fastest

growing automobile markets in the world, the Indian automobile market

has got so much of potential and hence a number of auto finance companies

have come up to tap the booming market. It can be added here that the

passenger vehicle market constitutes almost E>8 of automobile sales. In

>>E, the stock passenger car was about :: per :,>>> people. $he

production of passenger vehicle is further expected to go up at a A29



6. Ashok *om, PInternational (anagementQ %>:>&, $A$A (c2raw 0ill

education,

"ew 1elhi. 'age ;.

::85 ::

of about :>8 from >>6#:> to >:#:F. *o, sensing this market potential,

many financial companies in India have given special attention on auto

financing.

1uring the >>>s, the auto finance in India was dominated by

private banks, when itibank was the market leader. But its market share

dropped from ; per cent during 6>s to less than E percent during early

>>>. III Bank became the new leader with almost 6. per cent

market share during >>F#>C. $he journey continued till >>E when 01)

bank took the lead. 0owever, the current trend shows that the '* banks

like *BI, '"B, Bank of Baroda, Bank of India, anara Bank, *yndicate

Bank and nion Bank etc. are leaving behind their private sector

counterparts in the ,>>> crore passenger car and #wheeler loan market.

$he reason behind this is the fact that, private banks have been compelled

to reduce their exposure to the sector owing to increased delin!uencies.

*tate Bank of India %*BI& is one of the leaders in the auto finance

segments in India. 9ecently it has slashed down its rate of interest for the

new cars, which, in turn, has attracted a number of customers. Its long

repayment option and extensive network of more than :,:7> branches

have also made it !uite popular among the customers. 9ecently *BI has

inked a deal with 2eneral (otors for car finance. In >>E#>6, *BI

registered a net profit of 6,:: crore, which was F7.778 bigger than the

last financial year-s profit of D,;6 crore.

III Bank was the market leader in auto finance in India till



>>E. $hough currently not on the top, it still remains amongst the top

::83 ::

:> auto finance companies in India. 0owever, to regain its lost reign,

III Bank is putting car loans on fast track. In the current financial year,

III Bank has doubled auto loan disbursement amount to more than

:,7>> crore, comparing to the last financial year %ended (arch >>6&.

III Bank registered a net income of F7,;D6.7 million in the last financial

year %ended (arch F:, >>6&F>.

Bindisha %aran# is of the view that the *tate bank of India, India-s

largest bank, has raised its interest rates on some domestic term deposits

by up to .7 percentage points effective : Tune >>E. $he new rates on

deposits of #F years have increased by .7 percentage points. F#7 years

by .F7 percentage points and over five years by .7 percentage points.

ogesh Aggarwal, chairman and managing director, I1BI bank

said *BI may have increased its interest rates to increase its market share

and the competitive edge over other banks.

0owever this edge will be temporary as other banks will also have

to increase their deposit rates to survive the competition.F:

'ublic sector banks have overtaken their private sector counterparts

as the biggest lenders to retail consumers in the 9s ,>>> crore passenger

car and two#wheeler loan market. $his is largely due to private banks

reducing their exposure to the sector due to increased delin!uencies,

while '* banks have stepped up their lending activity.

F>. http@@business.mapsofindia.com@finance@top#auto#finance#companies#inindia.

html

F:. Bindisha *arang Article# $here-s nothing fixed about )1s P?utlook (oney

(aga+ineQ 7#:E Tune >>E, 'age :6



::86 ::

'* banks such as *BI, Bank of Baroda, '"B, anara Bank,

*yndicate Bank, Bank of India and nion Bank of India are jointly

lending around 9s :,>>> crore every month in the 9s :,E>> crore auto

loan market, while the private banks accounts for the rest. Tust a year ago

the private banks dominated the auto loan market with a combined market

share of ;7#E>8F.

L414 Bhole and Ditendra 1ahakud mentioned that the investors

prefer short term deposits, despite low returns, while waiting for investment

opportunities with higher returns. Banks on the other hand prefer short

term deposits with low short term interest rates, banks are able to mobili+e

resources at lower cost to well rated business firms to contain defaults on

their loans. In the Indian context, it is observed that foreign and private

sector banks have relatively high share of low cost deposits. Incidentally,

these bank groups also have high profit margin and low "'A levels.

2roup wise, deposits of new private sector banks grew at the highest

rate %FE.E8&, followed by foreign banks %F.D8&, public sector banks

%.68& and old private sector banks %D.>8& in the year >>D#>;.

ontinuing the trend of the last few years, the share of new private sector

banks in total deposits increased further during the year while that of

public sector banks and old private sector banks declinedFF.

F. http@@articles.economictimes.indiatimes.com@>>6#>#::@news@;DC7>;7K:K

psu#banks#auto#loan#loan#market

FF. 3.(. Bhole and Titendra (ahakud, %>>6& P)inancial institutions and marketsQ

fifth edition, $A$A (c2raw 0ill, "ew 1elhi, 'age 7E

::88 ::

$he country-s largest lender, *tate Bank India %*BI&, has captured



:;8 of the domestic housing finance market share, same as 01)-s

share as on (arch >:>.

According to I9A report on R'erformance review of housing

finance companies and Indian mortgage finance market for >>6#:>-,

both *BI and 01) have :;8 market share each while the III

Bank which has slowed down its housing finance exposure has

:F8 share. 3I housing finance and I1BI 2roup have E8 and C8,

respectively.

As of (arch F:, >:>, 01) %along with 01) Bank&, *tate

Bank of India, III Bank %along with III 0ome )inance,& and 3I

0ousing )inance %3I 0)3& clearly dominate the domestic mortgage

market, together accounting for 778 of the total housing credit in India,

said the report.

Apart from these big players, there are some housing finance

companies %0)s& with relatively smaller credit portfolios operating in

their respective geographies or serving niche customers.

While small 0)s, over the past few years, have been growing

their portfolio rapidly, the rating agency expects the currently dominant

players to continue maintain their market share, henceforth.

(eanwhile, banks which together hold around ;>8 of the total

individual home loan market, are expected to maintain a si+able market

share, even as 0)s are likely to grow by offering superior service levels

and by tapping underdeveloped segments. )urther, significant growth plans

::8@ ::

of some of the new 0)s could also increase the overall market share of

0)s, said the report.FC

%4 %a&eeta is of the view that in case of 'ublic sector banks, the



proportion of fixed deposits rose C6.; percent in :6;> to 77.; percent in

:6E7, thereafter it declined and stood at 7:.7 percent in the year :66> and

again rose to 7E.E percent in :66D. $hus fixed deposits constituted the

largest proportion of aggregate deposits of 'ublic sector banks. $he

proportion of fixed deposits was also the highest %as compared to savings

and current deposits& for the Indian 'rivate Banks in the year :66D%after

registering a fluctuating trend during the period :6;> to :66>&

$he proportion of *avings deposits in case of public sector banks

remained more or less stable during the period :6;> to :6E7, increased

to F>.E percent in :66> and declined thereafter to 7.6 percent in :66D.

In case of Indian private banks too this proportion after registering an

increasing trend during :6;>#:6E7, continued declining since :66>.F7

(arch is just a month away and tax investments are probably

taking priority. $he usual suspects are insurance, e!uity#linked saving

schemes %<3**&, '') to seek some tax exemptions. Another instrument,

which is getting popular among tax savers, is the five#year tax#saver

fixed deposits %)1s&.

FC. http@@www.financialexpress.com@news@sbi#e!uals#hdfc#in#housing#finance@

DFCDD6

F7. *. *aveeta, %>>7& Pommercial banks in IndiaQ 1eep and 1eep publications,

"ew 1elhi, 'age 7:

::8 ::

In Budget >>D, the government extended tax benefits to five#year

tax#saver deposits. As per the existing provision, you are eligible for

exemption on five#year deposits on investments up to 9s : lakh. $hese

fixed deposits will be locked for a five#year period from the effective

policy date. *o, you cannot exercise the option of premature withdrawal.



*econdly, you cannot pledge the term deposit as collateral to secure a

loan to meet your li!uidity needs. *imilarly, banks do not offer overdraft

facility on tax#saver deposits.

nlike the plain vanilla fixed#deposit products, these tax#saver )1s

do not have the sweep#in facility. $his implies, you cannot link fixed

deposit to the savings account whereby the surplus funds in the savings

account can be automatically invested in this fixed deposit.

In addition, there is no overdraft facility available on the tax#saver

)1. As this instrument of saving money is special due to its tax#saving

status, banks do not extend relationship benefits on the tax#saver )1.FD

(anka> Anup Toppo said that many factors led *tate bank of India

to the winner-s position. In fact it was a cut above the rest and performed

very well across all parameters. In terms of reach it scored nine out of

ten. While most financial institutes has to deal with a drop in number of

disbursals. *tate bank of India registered a double digit growth in number

of loans disbursal in ) >E further strengthened its position.

0owever the fact that really pulled *tate Bank of India on the top

was its low interest rate. Among all the parameters, interest rate carried

FD. http@@fedrickthomson.hubpages.com@hub@)ixedKdepositsKindia

::8 ::

the maximum weight because it is the first thing that a prospective loan

taker looks at when shopping for home loans.

In terms of convenience also the 'ublic sector bank fared well.

3ow charges further buffeted the banks scores#it does not levy pre payment

penalties and does not have administration and transfer fees. $he bank

does however charge a nominal processing fee. losing an account and

getting your property papers does not take much time either. $o top it all,



the bank also offers debt counseling centers. $he only area where the

bank failed was that it did not offered realty search facilities.F;

$he largest private sector lender in the country, III Bank has

said that it expects its credit growth for the financial year >:>#:: to be

somewhere around :78. $he bank has estimated this figure based on the

fact that demand in key segments is showing a rising trend.

$he economic slowdown had shown its effects on III bank too

as the credit growth of the bank showed a decline in the past year.

$he bank had reported a growth trend in its home and auto

Bank (anaging 1irector and <? handa Nochhar.

(s. Nochhar also !uoted that the bank has shown improvement in

project financing segment also and that she expects the trend to pick up

as the year unfolds.

While the 9eserve Bank of India has forecasted a credit growth of

:D8 in the upcoming fiscal, III-s projection strengthens.

F;. 'ankaj Anup $oppo, P?utlook (oney (aga+ineQ 7 "ov >>EV, 5ol ;, issue

, 'age CC

::8 ::

In contrary to the other contemporary banks like 01) Bank and

I1BI Bank which have hiked their deposit rates following a rise in the

99, III Bank deos not show any plans of increasing deposit rates,

said (s. Nochhar.FE

%hri&ast&a? (andey and Vidyarthi are of the view that as regards

the deposit scenario, already by :66; almost D7 percent of the base in the

banking system was coming from the retail sources. $hese sources have

been saving@term deposits, deposits through personal banking and

agricultural small savings accounts. $he retail segment deposits totaled



* U E7 billion in :66;. $he changing macro scenario in fact has a

stronger growing impact on the loans segment of the retail products. $his

sector is expected to grow at a rate of F> percent in India over the next

decade. %handa Nochar, <1, III bank&. $he housing loan segment

has been the fastest growing retail credit market for the Indian banking

sector. As a result there has been a surge in bank finance to the housing

sector increasing by 77 percent during >>#>F.F6

1eclining interest rate, less paper work, fast processing time, rebate

on income tax, flexibility to repay, attractive schemes have led for the

significant growth of Indian 3oan (arket.

India loan market is estimated to generate 9s 6,FC.F billion in

>:: and is expected to reach 9s :,6E>.D billion by >:D with a A29

FE. http@@www.rupeetimes.com@news@carKloans@iciciKbankKforecastsK:7KcreditK

growthKinK>:>::KF7F.html

F6. (ohan 'rasad *hrivastva, 'radeep Numar 'andey, 5.'. 5idyarthi, %Banking

reforms and globali+ation&, : Tan >>;, A'0 publishing, 1aryaganj, "ew

1elhi, 'age F:7

::89 ::

of :E.;8 from >::#>:D. $he loans which constitutes and plays a crucial

role in Indian loan market includes home loans, education loan, auto

loan, personal loan, consumer durable loan and much hyped gold loans.

According to $ech*ci 9esearch, in >:>, home loan holds the largest

market share of CD.:8 in Indian loan market. 1eclining interest rates,

flexibility to repay, increased dwelling of housing societies have led for

its growth.C>

%unaina Vasude& wrote that most experts believe that banks with

access to low cost deposits will be in a better position to preserve margins.



2iven that market sentiment is bad and li!uidity in the banking sector is

evaporating because of the central banks move to hike reserve

re!uirements, banks with a higher share of current and savings account

%A*A& deposits are better positioned to grow without compromising on

profitability.

Among private banks, 01) bank and Axis bank have a A*A

ratio of 7C percent respectively, III bank has a low A*A share but

the management has shifted strategic focus from balance sheet growth to

A*A and margin improvement now, which augurs well for its core

operating profitability according to (anish Narwa, banking analyst with

(otilal ?swal *ecurities.C:

*tate Bank of India-s disbursements on home loans under its R"ew

happy home loan scheme- have grown at 9s :,7>> crore monthly. $his is

C>. http@@www.researchandmarkets.com@reports@:ED>FCC@indiaKloansKmarketK

opportunitiesKandKforecast

C:. Article by *unaina 5asudev, P?utlook profit (aga+ineQ 7 Tuly >>E, 'age :;

::@; ::

about 9s C>> crore more than the monthly average of 9s :,:>> crore it

did in the first two months since the scheme was announced. P$ill (arch

we had done 9s ,FCE crore. *ubse!uently we are sanctioning 9s :,7>>

crore every month,Q '. "andakumaran, hief 2eneral (anger, 'ersonal

Banking, *BI, told Business 3ine.

In the first week of )ebruary, *BI had announced that it will offer

an interest rate of E per cent for one year the lowest so far in the

industry. In the second year, the rates applicable will be the prevailing

rates then. $he bank-s move was to stimulate demand in the housing

market at a time when many buyers postponed their purchasing decisions



amid economic uncertainty and fear of job losses. $he scheme has now

been extended till *eptember. $he bank also offers other schemes, which

will be valid till the month#end. nder this, it offers a home loan between

9s 7 and > lakh at a fixed interest rate of 6.7 per cent a year for five

years, after which rates will be re#set.

*BI, which claims to have the highest growth in its home loan

portfolio last fiscal, saw its advances swell to 9s 7C,>DF crore. $his is a

:#per cent increase from 9s CC,DD crore in the previous fiscal. 1uring

the same period, the bank-s market share grew to :6.;C per cent from

:;.CE per cent.C

1uring the year ended (arch F:, >:>, the III Bank has

significantly strengthened its deposit franchise. $his is reflected in the

C. http@@www.indiarealtynews.com@home#loans@sbi#increases#disbursement#

ofhome#

loan#to#rs#:7>>#cr#a#month#C.html

::@5 ::

strong growth in savings and current account deposits and increase in the

A*A ratio. $he Bank continues to invest in expansion of its branch

network to enhance its deposit franchise and create an integrated

distribution network for both asset and liability products.

A*A deposits increased FC8 to 9s. EC,:D crore %*U :E.E billion&

at (arch F:, >:> from 9s. D,DDE crore %*U :C.> billion& at (arch F:,

>>6 and the A*A ratio increased from E.;8 at (arch F:, >>6 to

C:.;8 at (arch F:, >:>. $otal deposits of the Bank were 9s. >,>:;

crore %*U C7.> billion& at (arch F:, >:>, compared to 9s. :E,FCE

crore %*U CE.D billion& at (arch F:, >>6.

$he branch network of the Bank has increased to :,;C: branches



at April C, >:> giving the Bank a wide distribution reach in the country.

$he loan book of the Bank decreased to 9s. :E:,>D crore %*U

C>.C billion& at (arch F:, >:> from 9s. :E,F:: crore %*U CE.D billion&

at (arch F:, >>6 mainly due to the repayments from the retail loan

portfolio and the loan portfolio of overseas branches.CF

a>esh Chakra$orti wrote that by >>D, *BI the flag bearer of

Indian banking was under pressure. In the short span of twelve years,

III bank had come from nowhere %that is if you discount III-s

background as one of India-s three largest term lending institutions& to

emerge as the second largest bank in India.CC

CF. http@@www.icicibank.com@aboutus@performance#review.html

CC. 9ajesh hakraborti, P2rit, 2uts and 2umption 1riving change in a state

owned giantQ, 'enguin books India, "ew 1elhi, "ov >:>, 'age :7

::@3 ::

C44 (rahlad wrote that the )inancial information network and

operations %)I"?&, a technology solutions company, provides innovative

technology solutions to enable financial providers to reach millions of

underserved people. ?ne of )I"?-s key solutions is a biometric enabled,

multiapplication smart card and a portable point of sale terminal, which

combines with backend software. $he smart card forms the basis for

III banks micro savings product. III 3ombard is also using financial

information network and operations biometric cards to lower cost of

enrollment and claims processing in the micro health insurance scheme.

In partnership with (anipal group of hospitals, smart cards have been

piloted for some clusters, where enrollment stations have been established

e!uipped with laptops for online enrollment of members into the health

insurance program. $he card will also be used for premium collection in



the near future. C7

$he III Bank continued to invest in expansion of its branch

network to enhance its deposit franchise and create an integrated

distribution network for both asset and liability products. $he branch

network of the Bank has increased to ,>:D branches at Tune F>, >:>,

the largest branch network among private sector banks in the country.

A*A deposits increased F8 to 9s EC,D:E crore %*U :E. billion& at

Tune F>, >:> from 9s DF,6;; crore %*U :F.E billion& at Tune F>, >>6

and the A*A ratio increased to C.:8 at Tune F>, >:> from F>.C8 at

C7. . N. 'rahalad, %>:>& P$he fortune at the bottom of the pyramid <radicating

poverty through profitsQ )$ 'ress, 'age F:;

::@6 ::

Tune F>, >>6. $otal deposits of the Bank were 9s >>,6:F crore %*U

CF.F billion& at Tune F>, >:>, compared to 9s >,>:; crore %*U CF.7

billion& at (arch F:, >:>. $he loan book of the Bank increased to 9s

:EC,F;E crore %*U F6.; billion& at Tune F>, >:> from 9s:E:,>D crore

%*U F6.> billion& at (arch F:, >:>. $he total assets of the Bank at Tune

F>, >:> were 9s FDF,66; crore %*U ;E.C billion&.CD

%wapna (radhan is of the view that the 9etail banking in India

is not new phenomenon. $he typical products offered in the Indian retail

banking segment are housing loans, consumption loans for purchase of

durables, auto loans, credit cards and educational loans. While new

generation private sector have been able to create a niche in this area of

loans and financing the public sector banks have not lagged behind.

3everaging their vast branch network and outreach, public sector banks

have aggressively forayed to garner a larger slice of the retail pie.C;

L



9esearch methodology gives the glimpse through which research

is conducted. $he method, the way and the helping tools in conducting

research are described in research methodology. $he headings which are

given below take us to the tour of research methodology.

0a2 esearch +esi#n A research design is a frame work or

blue print for conducting the research work. A research design lays the

foundation for conducting the research work. A descriptive research design

CD. www.icicibank.com@aboutus@pdf@H:K)::K9esults.pdf

C;. *wapna 'radhan, %>>6& P9etailing (anagementQ third edition, $A$A (c2raw

0ill education, "ew 1elhi, 'age E;

::@8 ::

is used to describe the characteristics of relevant groups, such as consumers,

sales people, organi+ations or market areas. It is also used to estimate the

percentage of units in a specified population exhibiting a certain behavior.

In our research work the comparative analysis mostly depends on the

survey of bank customers. 0ence a descriptive research design is the

most suitable one. In this hypothesis is formulated before conducting the

research work and we have formulated the hypothesis for further research

work.

0$2 +ata Collection (lan )or any research data collection is of

prime importance. 9esearch work depends on it. *ince our topic revolves

around the comparative study of public sector representative *tate Bank

of India and private sector representative III Bank much emphasis is

given on 'rimary data collection but *econdary data is also considered

0i2 %econdary +ata Collection It was collected through

searching from various books containing the relevant material

on banking topics especially covering the financial products



considered for our research work. *econdary data was

collected from various websites and through searching into

maga+ines the published research papers were also considered.

*econdary data was also collected through visits to both the

banks.

0ii2 (ri'ary +ata CollectionE-It was very essential for the

research work. $he data was collected with the help of

::@@ ::

!uestionnaire. $he !uestions were asked from the banks

customers to collect information. $he information gathered

through this was used in comparative analysis of products of

both the banks. *tructured undisguised !uestions which were

closed ended %various options were given& were used in

seeking information from bank customers.

0c2 %a'plin# (lan : It is vital in case of primary data collection.

)or the survey of bank customers a proper sampling design was formulated

which is explained below

0i2 Tar#et (opulation $he target population was bank

customers from *BI and III Bank and the branches of

both the *BI and III banks were located in (eerut.

0ii2 %a'plin# Techni,ue $he probability sampling techni!ue

was considered. As it is more accurate in results in

comparison to non probability sampling.In probability

sampling the simple random sampling was selected. 0ere

the each element has known and e!ual chance of being

selected. $his implies that every element is elected

independently of every other element.



0iii2 %a'ple %iFe : $he sample si+e considered for research work

is of C>> bank customers. >> customers from *BI and >>

customers from III Bank were interviewed. All important

::@ ::

demographic characteristics like age, level of education, level

of income, profession were noted during survey process.:>>

customers from one branch of *BI and :>> customers from

another branch of *BI were interviewed. In the similar manner

:>> customers from one branch of III Bank and :>>

customers from another branch of III Bank were taken.

All the branches are chosen from the prime locations of

(eerut to make study result more effective.

0d2 +ata Analysis )or data collected from customers the

percentage method is used to make an analysis. $he percentages helped

in doing the comparative analysis of products of both the banks. $he data

which is gathered from the banks and from other sources, logical inferences

are drawn in doing the comparative analysis of products of both the

banks.

0ypothesis postulated in this research are as under M

m $hough the basic products of both the *BI and III Bank

may be same but difference exists in the product variants of

these banks.

m $he time taken in providing financial products by 'rivate

sector representative III bank is less, compared to 'ublic

sector representative *BI.

m $hough the formalities to obtain products %)orm filling,

documents re!uired& may be more or less same but the



::@ ::

satisfaction status of customers of *BI and III Bank

towards these formalities have difference.

m $he customers of 'ublic sector representative *BI and 'rivate

sector representative III bank are of the view that the

number of the 'roduct variants should be increased.

m $he overall satisfaction status of customers towards all the

five products, considered for research work has difference if

comparison is done between 'ublic sector representative *BI

and 'rivate sector representative III bank.

L L L

%i& 3imitation of funds was the problem. In this research work

the customers are interviewed at their homes, offices and

shops also. <xpenses were incurred on approaching them.

1ue to several visits to all the four branches, to the libraries

expenses were incurred. Best research work is tried in the

limited budget.

%ii& $he topic is interesting and of importance in nature but due

to the scarcity of time further more research work was not

possible however in this tenure best possible research has

been tried.

%iii& *ome sort of biased ness on the part of customers could not

be ruled out.

%iv& ustomers are human beings and humans have a tendency to

show changes in their attitudes and opinions. $heir views

can not remain constant for a long period of time.



Ter's ! Condition:-

• $he Bank reserves the right to reject any application without assigning

reasons thereof. It shall be the sole right of the Bank to consider the proposal

on case to case basis after taking into consideration, the credentials@credit

worthiness of each of the customers.

• $he applicant will undertake to inform the Bank as and when there is a

change in address or employment.

• Axis Bank may, at its sole discretion, utili+e the services of external service

provider@s or agent@s and on such terms as re!uired or necessary, in relation

to its products.

• $he interest rates and processing fees are subject to change without prior

notice and the offer expiry date mentioned is subject to interest rate

fluctuations and will only be accommodated on a best effort and non#

obligatory basis by the bank.

• Axis Bank or its agent%s& shall not be responsible for the delivery@(odel@

colour@make@performance of the asset applied for under this application. $he

borrower undertakes to hypothecate the vehicle in favour of the Bank

immediately after purchase of the vehicle.

• Bank is not responsible for the contract entered into by the ustomer with

5ehicle 1ealer nor Bank makes any representation as regards the 1ealer or

the 5ehicle supplied by the 1ealer.



• Axis Bank is authori+ed to disclose from time to time any information

relating to the loan to any credit bureau %<xisting or )uture& approved by

2overnment of India and 9eserve Bank of India without any notice to the

borrower. Axis Bank is also authori+ed to make in!uiries with the redit

Information Bureau of India %IBI3& and get the applicants redit

Information 9eport.

• In case of default i.e. if the amount due is not paid by due date, the customer

will be sent reminders from time to time for payment of any outstanding on

his loan account, by post, fax, telephone, email, *(* messaging and@or

through third parties appointed for collection %as per 9BI 2uidelines&

purpose to remind, follow#up and collect dues.

• $he product and services of the bank are subject to applicable law and

regulations and would be modified @ discontinued based on the prevailing

law @ regulation at any point of time and neither party shall be under any

liability or obligation or continue the product and services of the bank tillsuch time the terms are modified by the 'arties as per the prevailing@

amended law at that point of time. In the event, that the product and services

of the bank cannot be continued without total compliance of the prevailing

law at any point of time, the product and services of the bank shall be

deemed to be discontinued forthwith from the date when the amended law

restricting @ prohibiting the product and services of the bank comes into

force.

• Any dispute relating to the ?ffer or the terms and conditions shall be subject

to the jurisdiction of the courts in (umbai only.



• $he terms and conditions mentioned above and elsewhere under the scheme

are subject to modification from time to time solely at Bank4s discretion.

Conclusions:-

:. 'eople using a car for their business purpose can claim part of the interest

and deprecation charges as expenses against taxable income.

. (onthly payments can be directly debited from your bank account.

F. If you-re paying fixed payments, the terms of the agreement allow for more

accurate budgeting and protect you against any interest rate fluctuations.

axis bank-vehicle loan

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