ADVANCES PROCESS MANAGEMENTAT CITI FINANCIAL
A PROJECT REPORT
ON
ADVANCES PROCESS
MANAGEMENTAT CITI FINANCIAL
BABASAB PATIL MBA PROJECT REPORT Page 1
ADVANCES PROCESS MANAGEMENTAT CITI FINANCIAL
TABLE OF CONTENT
SL.NO PARTICULARS PAGE NO.
Part-I. Industry Pro!"# 1
1.1 Introduction to loan industry. 2
1.2 NBFC’s at a Glance. 3
1.3 Consumer Finance Industry: Trends & Outlooks. 1
1.! Bankin" O#er#ie$ 1!
1.% . &ersonal loans in India. 1'
Part-II. Or$an!%at!on Pro!"# 21
2.1 Introduction o( t)e Or"ani*ation. 22
2.2 +,OT -nalysis 2.
2.3 /e0artmental +tudy 2'
2.! Or"ani*ation +tructure 32
2.% 1ision2 +tren"t)s & Com0etiti#e -d#anta"e 33
2... &roducts o( Citi(inancial 3%
Part-III. Introdu&t!on to R#s#ar&' !2
3.1 Title o( t)e &ro3ect !3
3.2 T)eoretical 4ack"round o( t)e study !3
3.3 +tatement o( &ro4lem !5
3.! O43ecti#es & Need o( t)e study !5
3.% 670ectations (rom t)e study %
Part-IV. R#s#ar&' M#t'odo"o$y %1
!.1 /ata collection met)od %2
!.2 +am0lin" %2
!.3 /ata -nalysis %3
!.! 8imitations o( t)e study %3
Part-V. Ana"ys!s ( F!nd!n$s %!
%.1 Gra0)ical &resentation o( t)e -nalysis %%
%.2 Findin"s 9.
Part-VI. Su$$#st!ons 9'
..1 +u""estions 95
Part-VII. Con&"us!on '1
9.1 Conclusion '2
Part-VIII. B!)"!o$ra*'y '3
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ADVANCES PROCESS MANAGEMENTAT CITI FINANCIAL
'.1 Bi4lio"ra0)y & :e(erences '!
Part-I+. Ann#,ur# '%
5.1 ;uestionnaire '.
E+ECUTIVE SUMMAR-
-ccordin" to -l4ert 6instein “Everything should be as simpler as possible
but not the simplest”. T)e Citi(inancial (unctions $it) t)is 0recisely ma7im. Citi(inancial
is already )as t)e 4roadest distri4ution in India2 t)eir main aim is to 4ecome t)e lar"est
NBFC in t)e $orld.
Citi(inancial consumer (inance India ltd is one o( t)e (e$ sur#i#in" 0ri#ate
(inancial institutions since 15122 )a#e t)e e7istence in more t)an 1 countries $it)
3 em0loyees $orld$ide. It o((ers #aries ty0es o( loans to t)e customers namely2
0ersonal loans2 #e)icle loans2 Consumer dura4le loans and )ome loans etc. uired (or t)e 0rocess o( sanctionin" loans.
o To e#aluate t)e 0rocess. I( t)ere is any de#iation in t)e 0rocess2 t)en
(indin" out t)e reasons.
Stat!st!&a" Ana"ys!s/ T)e researc) in#ol#es statistical analysis2 some o( analysis and
com0utations under t)e study are:
o C)iBs>uare test
o Factor -nalysis
o Fre>uencies
o +tandard /e#iation & mean
F!nd!n$s: Based on researc) o43ecti#e cited a4o#e2 and a(ter analy*in" data relatin" to
(unds2 (ollo$in" are t)e main (indin"s in t)e 0ro3ect:
• -s 0er t)e sur#ey it )as 4een (ound t)at t)e de#iation in t)e 0rocess due to
Internal & 67ternal reasons.
• It is seen t)at t)e e7ecuti#es )a#e to 4rin" one lo"in 0er day. I( t)ere are
more t)an one lo"in on a 0articular day2 t)en t)e second lo"in is 4ein"
0roduced on t)e ne7t day. T)is results in a delay in t)e 0rocess o(
sanctionin" loan (or t)e second lo"in.
• Interest rates and &rocessin" c)ar"es are >uite )i") com0arin" to ot)er
com0anies. Customers need lo$ and com0etiti#e interest rates2 &ro0er
customer care2 Better=;uick ser#ice (acility (orm Citi(inancial.
• 67ecuti#es are lackin" in "i#in" detail2 trans0arent and detail in(ormation
to t)e customers in t)e 4e"innin".
• Trans0arency a4out 6ues (or clearance.
o Trainin" )as to 4e "i#en to t)e 67ecuti#es.
• Customers need
o 8o$ and com0etiti#e interest rates2
o &ro0er customer care2
o Better=>uick ser#ice (acility2
o 8o$ C)e>ue 4ounce c)ar"es.
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ADVANCES PROCESS MANAGEMENTAT CITI FINANCIAL
Con&"us!on/ -(ter t)e com0letion o( t)e study I $ould like to conclude t)e (ollo$in"
0oints2 $)ic) $ere re#ealed t)rou") (indin"s o( t)e study:
• &rocessin" time2 +anctionin" 0rocedure and ser#ice are t)e key (actors $)ic)
are in(luencin" customers to 0re(er Citi(inancial.
• 67ecuti#es are t)e (rontline em0loyees o( t)e or"ani*ation so t)ey )a#e to 4e
trained & t)ey s)ould 4e a4le to 0ro#ide e#ery in(ormation to t)e customers.
• ue 4ounce c)ar"es2
o &ro0er customer care2
o Better=>uick ser#ice (acility2
o Clear and trans0arent in(ormation a4out t)e loan2
o In(ormation 4e(ore 0resentin" C)e>ue (or clearance2
O#erall customers are satis(ied $it) t)e 0rocessin" time o( t)e or"ani*ation and
a4o#e im0ro#ements are essential to attract more customers and to maintain 4est 4ankin"
relations.
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ADVANCES PROCESS MANAGEMENTAT CITI FINANCIAL
&-:TBI
IN/C+T
&:OFI86
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ADVANCES PROCESS MANAGEMENTAT CITI FINANCIAL
2.23 LOAN INDUSTR- PROFILE
- loan is an
arran"ement 4et$een a lender
and a 4orro$er. T)e lender
"i#es money2 0ro0erty2 or
eit)er asset to t)e 4orro$er and 4orro$er a"rees to re0ay t)e money $it) interest at some
(uture 0oint o( time. T)ere is usually a 0redetermined time (or re0ayin" t)e loan and
"enerally t)e lender 4ears t)e risk t)at t)e 4orro$er mi")t not re0ay t)e loan. T)ere are
many di((erent ty0es and classes o( loans eac) $it) t)eir o$n set o( rules and terms.
Gi#en t)e current interest rates and t)e likeli)ood t)at tae rate
$ill "o u0 o#er t)e ne7t year as t)e economy starts 0ickin" u02 it is a "ood time to "o in
(or a "ood rate (or a loan. T)e interest rates $ill "o u0 as t)e economy im0ro#es and one
needs to 4e locked into a lon"Bterm lo$ interest rate. I( one )as a 0ersonal de4t2 like (rom
credit cards or any ot)er 0lace2 t)ey s)ould 0ro4a4ly consider consolidatin" t)e de4t. One
$ill de(initely "et a 4etter rate t)an a credit card $ill o((er. I( one )as many loans and
de4t2 0uttin" t)em to"et)er into a lar"er amount allo$s one to ne"otiate a 4etter rate.
- loan is 4ased on a sim0le ideaB someone "i#es you money and you
0romise to 0ay it 4ack2 usually $it) interest. +ince one must 0ay 4ack t)e lender $)et)er
t)e 4usiness is a (a4ulous success or a misera4le (ailure2 t)e entire risk o( t)e ne$
enter0rise is 0laced s>uarely on ones s)oulders. But i( you are con(ident a4out t)e
0ros0ects o( a 4usiness and one )as t)e o00ortunity 4orro$ money2 a loan may 4e a more
attracti#e source o( money t)an "ettin" it (rom e>uity in#estor $)o $ill o$n a 0iece o( a
4usiness and recei#e a s)are o( t)e 0ro(its. I( t)e 4usiness succeeds as one )o0es a4d t)e
0erson 0ays 4ack t)e lender as 0romised2 one $ill rea0 all (uture 0ro(its t)ere is no need
to s)are t)em $it) in#estors.
2.43 NBFC5s AT A GLANCE
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ADVANCES PROCESS MANAGEMENTAT CITI FINANCIAL
T)e (inancial system com0rises (inancial institutions2 (inancial
instruments and (inancial markets2 $)ic) 0ro#ide an e((ecti#e 0ayment and credit system2
t)ere4y (acilitate t)e c)annelisin" o( (unds (rom t)e sa#ers to t)e in#estors in t)e
economy. T)e institutional structure o( t)e or"ani*ed Indian (inancial system is
e70andin" or"ani*ations o( #arious si*es2 (unctions2 s)a0es and structures. T)ey are
4roadly classi(ied as (ollo$s:
Commercial 4anks in t)e 0u4lic and 0ri#ate sector2 includin" Indian 4ranc)es o(
(orei"n 4anks.
T)e t)reeBtiered structure o( coBo0erati#e 4anks caterin" to t)e needs o( rural
credit and a"ricultural sector.
Cr4an coBo0erati#e 4anks (unctionin" in ur4an=metro0olitan areas and 0ro#idin"
credit (or nonBa"ricultural sectors.
:e"ional rural 4anks s0onsored 4y t)e commercial 4anks in 0u4lic sector in
0artici0ation $it) central=state "o#ernments (or meetin" t)e rural credit need an
intensi#e manner as su00lement to credit t)rou") coBo0erati#e a"encies and
commercial 4anks.
/e#elo0mental Financial Institutions @/FIsA 0ro#idin" term lendin" (acilities at
all India le#els suc) as : I:BI2 I/BI2 ICICI2 NEB2 6FI< Bank2 +I/BI2 IFCI and
N-B-:/ and 1' +tate 8e#el (inancial cor0orations and ot)er s0eciali*ed
cor0orations set u0 4y #arious +tate Go#ernments2 (or 0romotion and
de#elo0ment o( small scale industrial sector.
T)e commercial 4ankin" sector occu0ies a 0lace o( 0ride in t)e (inancial system
o( t)e country and it )as under"one a sea c)an"e in its "eo"ra0)ical co#era"e and nature
o( acti#ities. -t 0resent it com0rises t)e +BI alon" $it) its se#en su4sidiaries2 t)e 2
nationali*ed 4anks2 23 0ri#ate 4anks 4esides 2! (orei"n 4anks )a#in" t)eir )ead o((ices
a4road. T)e 0u4lic sector 4anks com0risin" +BI "rou0 to"et)er $it) t)e nationali*ed
4anks accounts 5G o( t)e total 4ankin" 4usiness. T)e ot)er (inancial institutions )a#e
also made muc) 0ro"ress in recent years in e7tendin" its "eo"ra0)ical s0read and
(unctional reac). uite testin" (or NBFC’s. Im0osition o( uestion as $ell as to $)o $ill sur#i#e t)e comin" times. It is e70ected
t)at only t)e to0 $ill 4e a4le to $it)stand t)e rest o( times. T)e sur#i#ors o( in t)e NBFC
"ame $ould 4e t)ose $)o $ill )a#e si*ea4le resources $it) a distinct (ocus in e#ery
4usiness se"ment. T)ose NBFC’s 4acked 4y t)e "rou0 $it) manu(acturin" credentials
$ill 4e at a 4i" ad#anta"e.
I( t)e 0arent com0any is in a ca0italBintensi#e 4usiness2 so muc) t)e 4etter.
+i*e $ill 4e o( critical im0ortance and $ill lead to a lot o( mer"ers and ac>uisitions $it)
local as $ell as international 0layers.
S&#nar!o o NBFC/
NonB4ankin" (inance com0anies @NBFCsA )a#e 0layed an im0ortant role in t)e
Indian (inancial system. Traditionally t)ey )a#e 4een t)e #e)icle (or (inancin" indi#iduals
and cor0orates $)o )ad some di((iculty in o4tainin" 4ank (undin". 6arlier2 commercial
4anks tended to stay a$ay (rom retail and smallBtoBmedium si*ed cor0orates and t)e
NBFCs sa$ o00ortunity in t)is #oid and 4uilt dominant 0ositions in automo4ile
(inancin"2 commercial #e)icle (inancin"2 I&O (undin" and cor0orate leasin".
Conse>uently2 many NBFCs set u0 lar"e country$ide distri4ution net$orks B o(ten as
lar"e as t)ose o( consumer com0anies.
T'# d#*os!t-)as# o NBFCs $r#7 ra*!d"y !n t'# #ar"y-1!d n!n#t!#s8
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ADVANCES PROCESS MANAGEMENTAT CITI FINANCIAL
T)e industry )as "one t)rou") su4stantial u0)ea#al in t)e last decade. 6asy
access o( (unds (rom @iA ca0ital market I&Os and @iiA de0osits (rom t)e 0u4lic resulted in
t)e mus)roomin" o( many NBFCs in t)e late ei")ties2 earlyBtoBmid nineties. In 15'12
t)ere $ere 92.3 NBFCs. T)is num4er s)ot u0 to 2!25 in 155 and 4y 155%2 t)ere $ere
as many as %%255% suc) com0anies.
In#estors $ere o(ten attracted 4y t)e )i") de0osit rates o((ered 4y NBFCs $)o
de0loyed t)ese (unds (or cor0orate lendin"2 consumer lendin" and ca0ital market
+im0li(ied sanction 0rocedures2 orientation to$ards customers2 (le7i4ility timeliness in
meetin" t)e credit needs o( s0eci(ied sectors @like e>ui0ment and )ire 0urc)aseA $ere
some o( t)e (actors en)ancin" t)e attracti#eness sector. From -0rB1551 to uacy and asset concentration are
more strin"ent t)an t)ose 0ertainin" to 4anks. T)e minimum ca0ital ade>uacy ratio
(or NBFCs is 12G $)ile it is 1G (or 4anks.
NBFCs "enerally cannot acce0t de0osits unless t)ey )a#e a minimum credit ratin"
$)ic) is not mandatory in res0ect o( 4anks.
+tatutory 8i>uidity :atio @+8:A (or NBFCs is 12.%G com0ared to t)e 2%G a00lica4le
to 4anks.
Interest on 4ank de0osits u0to a certain limit is e7em0t (rom indi#idual income ta7.
No suc) 4ene(it is allo$ed (or NBFC de0osits.
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ADVANCES PROCESS MANAGEMENTAT CITI FINANCIAL
Only 4anks and (inancial institutions )a#e access to /e4t :eco#ery Tri4unals @/:TsA
$)ic) )a#e 4een constituted under a se0arate la$ to e70edite settlement o( delin>uent
loans o( 4anks and (inancial institutions.
-n insurance co#er t)at aids de0ositors reco#er de0osits $)en a 4ank "oes 4ankru0t
is una#aila4le to in#estors in NBFCs.
R#$u"atory Fra1#7or6
T)e Bankin" 8a$s @ue and Internal Trans(er o( (unds.
In #ie$ o( se#eral de#elo0ments in t)e 155s2 t)e entire 4ankin" 0roducts
structure )as under"one a ma3or c)an"e. -s 0art o( t)e economic re(orms2 4ankin"
industry )as 4een dere"ulated and made com0etiti#e. Ne$ 0layers )a#e added to t)e
com0etition. IT re#olution )as made it 0ossi4le to 0ro#ide ease and (le7i4ility in
o0erations to customers. :a0id strides in in(ormation tec)nolo"y )a#e2 in (act2 rede(ined
t)e role and structure o( 4ankin" in India. Furt)er2 due to e70osure to "lo4al trends a(ter
In(ormation e70losion led 4y Internet2 customers B 4ot) Indi#iduals and Cor0orates B are
no$ demandin" 4etter ser#ices $it) more 0roducts (rom t)eir 4anks. Financial market
)as turned into a 4uyerNs market. Banks are also c)an"in" $it) time and are tryin" to
4ecome oneBsto0 (inancial su0ermarkets. uity.
T)e com0any’s com(orta4le resource 0ro(ile2 im0ro#in" market 0osition in t)e
0ersonal loan and )ome e>uity se"ments2 consistently "ood asset >uality and ade>uate
ca0ital ade>uacy @12.3G as at uity
and loans a"ainst &ersonal o( 0ro0erty @31GA.
T)e remainin" 1G $as loans (or commercial e>ui0ment2 a se"ment in $)ic)
Citi(inancial $ill not 4e $ritin" any (res) 4usiness. For t)e year ended ue o0tions to s0eci(ic customer se"ments o((erin" risk ad3usted
0ricin".
8oan credit s)ield o0tion2
Team s0irit and ent)usiasm in t)e sel( contained &8 teams.
=#a6n#ss/
Ei") interest rates and conse>uently )i")er risk customer 0ro(ile2
8o$Bticket si*e2
8o$ #isi4ility o( 4rand.
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O**ortun!t!#s/
670ected "ro$t) o( t)e middle class market2
Geo"ra0)ical e70ansion 4y o0enin" &ersonal loan 4ranc)es2
:e"ular "ro$t) in t)e -T& data4ase continuin" to o((er cross sell o00ortunities2
T)e com0any no$ 4ein" a 0art o( t)e Citi"rou02 $)ic) s)ould contri4ute to 4etter
4rand #isi4ility in t)e comin" days.
T'r#ats/
&ossi4ility o( com0etition in t)e 0resent tar"et se"ment o( Citi(inancial2
&ossi4ility o( 0oor >uality cases comin" into t)e system directly or indirectly
t)rou") (reelancers=a"ents re(errin" Citi(inancial to suc) customers $it)out our
kno$led"e.
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ADVANCES PROCESS MANAGEMENTAT CITI FINANCIAL
4.:3 DEPARTMENTAL STUD-/
2. CREDIT AND RIS< DEPARTMENT
T)is de0artment includes t$o ty0es o( 3o4 0ro(iles namely Credit and Collections. T)e
de0artment is lia4le to (or endBtoBend credit and collection (unctions.
Cr#d!t Und#r7r!t!n$/
T)is de0artment is res0onsi4le (or c)eck t)e credita4ility o( t)e customer and to
decide a4out a00ro#al or re3ection o( t)e loan a00lication2 t)e de0artment #ets t)e
a00lications (or$arded 4y t)e sales de0artments and does t)e same.
Fun&t!ons/
To #eri(y t)e re0ayment ca0acity o( t)e customer.
To a00ro#e t)e ri")t kinds customer loan a00lications.
Inter de0artmental interaction es0ecially $it) t)e sales and collections
de0artments.
Co""#&t!ons/
T)is de0artment is res0onsi4le to recollect t)e un0aid money (rom t)e customers
t)rou") collection a"encies. T)e em0loyees in t)is de0artment $ill 4e on (ield to 0er(orm
t)eir task.
Fun&t!ons/
+ystem 4ased collections and "eneratin" re0orts.
:elations)i0 uity loans o((er you t)e o00ortunity to "et a loan a"ainst
your 0ro0erty (or 0ractically any 0ur0ose. Our (riendly2 (le7i4le and (ast ser#ice o((ers
you t)e 4est o0tion to (ree t)e $ealt) locked u0 in your 0ro0erty
F#atur#s
'roperty loan up to #s. ( "rore: Get loans (rom :s. 2 8ak) to :s. 2 Crore and u0
to .G o( t)e market #alue o( your 0ro0erty.
)le*ible procedures: Fle7i4le income criteria and loans a"ainst rented2 #acant and
sel(Boccu0ied residential 0ro0erties. 8oans can also 4e a#ailed on 0ro0erty
4elon"in" to your (amily mem4ers.
Easy repayment: 8oan re0ayment term is a#aila4le u0 to a 0eriod o( 1% years and
easy re0ayment on 6>uated BBBB
B Customer in(ormed and /ocuments= &/C
c)ecked.
B /e4t Burden ca00ed at 9G.
B 8atest Income &roo( re>uired.
Cas#s 7!t' F!nan&# A1ount J Rs >BBBB
Customer in(ormed and /ocuments= &/C
c)ecked.
:e3ect
/ata4ase callin"
8ead Generated
Con(irmation o( -ddress
and &)one Nos.
:e(erence num4er "eneration
4ased on u0dated T1:
/edu0e
CPV In!t!at#d or &as#s 7'#r#/
B-ddress c)an"e
B&re#ious loan (astrack
B&re#ious loan closed more t)an .
mont)s 4ack
F0# -0#
F0# -0#
:e3ect -cce0t
&re0are C)e>ue2 +i"n and /is4urse
-cce0t
TRANSACTION PROCESSHE+ISTING BORRO=ER
ADVANCES PROCESS MANAGEMENTAT CITI FINANCIAL
E,*"anat!on/
2. LOGIN/
=a"6 Ins./ It is #ery im0ortant t)at a $alkBin customer is made to (eel at ease and
com(orta4le $)en )e=s)e $alks in to t)e 4ranc).
T#"#*'on!& #nGu!r!#s/ - 0ros0ecti#e customer calls to kno$ a4out t)e 0roducts’
detail a(ter "oin" t)rou") t)e di((erent modes o( ad#ertisements and $ord o(
mout).
E,#&ut!0#s/ - distri4ution net$ork set (or 0ersonal loan (or t)e con#enience o(
t)e customers.
4. APPLICATION FORM/
Eere t)e a00licant )as to (ill out an a00lication (orm $)ic) is "i#en to )im. T)e
a00lication (orm consists o( t)e a00licants name2 address2 0)one num4er2 occu0ation
details & date o( 4irt)2 Bank account details and :e(erence name & /etails.
T)e loan a00licant also )as to su4mit t)e rele#ant documents like income 0roo(2
0)oto"ra0)s2 address 0roo( & last .mont)s 4ank statement.
:. INITIAL SCREENING/
Eere customers are called & eit)er e7ecuti#es or O((icers screen t)e customers.
;. REFERENCE NUMBER/
:e(erence num4er means it is as "ood as an account num4er. It contains t)e
in(ormation a4out customer’s credit $ort)iness
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>. a3 Conta&t Po!nt V#r!!&at!on E CPV3/
-(ter t)e a00lication (orm is scrutini*ed a contact 0oint #eri(ication re0ort )as to 4e
0re0ared. T)e C&1 $ork is carried out 4y an e7ternal a"ency. T)e main 3o4 o( t)e
a"ency is to c)eck t)e address o( t)e 0otential a00licant @4ot) O((ice & :esidenceA &
also t)e standard o( li#in" conditions. T)e C&1 re0ort also 0uts (or$ard its comments
a4out t)e a00licant like $)et)er t)e source o( income is secure or $)et)er t)e
standard o( li#in" is (air=0oor.
)3 T#"#*'on# V#r!!&at!on R#*ort ETVR3/
T)e ne7t ste0 is t)e T1: sta"e. Eere t)e #eri(ication is done o#er t)e 0)one to t)e
a00licant’s o((ice & residence 0)ones.
1arious >uestions are asked like ty0es o( dura4les 0resent in t)e )ouse2 num4er o(
#e)icles o$ned2 (amily mem4ers2 de0endents2 etc2 in t)e residence 0)one #eri(ication.
In t)e o((ice 0)one #eri(ication >uestions suc) as num4er o( $orkers in t)e o((ice2
ty0e o( industry2 salary earned2 etc2 are asked.
Based on t)e (eed4ack recei#ed t)e T1: can 4e termed 0ositi#e @R#eA or ne"ati#e @B
#eA.
D. CALL FOR INTERVIE= ECFI3/
T)e ne7t ste0 is t)e CFI $)ere t)e a00licant )as to come to t)e o((ice (or t)e
inter#ie$ $it) all )is ori"inal documents. Eere t)e a00licant is asked some rele#ant
>uestions a4out t)e loan amount )e=s)e $ants2 0ur0ose o( t)e loan & com(orta4le
mont)ly installment. -ll t)is is $ritten on a CFI s)eet.
Based on C1&2 T1: & CFI a loan sc)eme is e70lained to t)e customer. I(
t)e customer is not )a00y $it) t)e sc)eme2 #arious o0tions are 0ut (or$ard to )im.
T)ere are a #ariety o( sc)emes a#aila4le to suit t)e customer.
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ADVANCES PROCESS MANAGEMENTAT CITI FINANCIAL
K. BUDGET ANAL-SIS/
- 4ud"et analysis is carried out to (ind out $)et)er t)e 6uated ue is
(inally 0rinted & )anded to t)e customer.
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ADVANCES PROCESS MANAGEMENTAT CITI FINANCIAL
:.:3 STATEMENT OF PROBLEM
Citi(inancial is kno$n (or its con#enient a00lication and (ast a00ro#al
0rocess @>uick 0rocessin" timeA. But in some cases t)e 0rocessin" is "ettin" delayed and
customers are not )a00y $it) t)is. Citi(inancial2 Bel"aum 4ranc) $anted to kno$ $)at
are t)e reasons (or t)e delay in 0rocess o( loan sanctionin".
:.;3 NEED ( OBJECTIVE OF T?E STUD-
N##d or t'# Study/
• To learn a4out t)e #arious 0rocedures =0rocesses o( "i#in" loans.
• To determine t)e time re>uired (or eac) 0rocess.
• I( t)ere is any de#iation in t)e 0rocess2 t)en (indin" out t)e reasons (or t)e
de#iation?
• To determine t)e $ays to im0ro#e T-T @Turn -round TimeA
O).#&t!0#s/
'rimary ob+ectives,
o To study t)e or"ani*ation structure.
o To learn a4out t)e e7istin" 0rocess o( "i#in" loans.
o To (ormulate strate"ies to minimi*e t)e time.
Secondary ob+ectives,
o To study t)e time re>uired (or t)e 0rocess o( "i#in" loans.
o To e#aluate t)e 0rocess. I( t)ere is any de#iation in t)e 0rocess2 t)en
(indin" out t)e reasons.
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ADVANCES PROCESS MANAGEMENTAT CITI FINANCIAL
:.>3 E+PECTATIONS FROM T?E STUD-
? To determine t)e time re>uired (or eac) 0rocess o( loan sanctionin".
? To (ind out t)e reasons (or t)e de#iations in t)e 0rocess o( loan sanctionin".
? To (ormulate t)e strate"ies to minimi*e t)e time re>uired (or eac) 0rocess o( loan
sanctionin".
? To (ind out t)e e70ectations o( customers re"ardin" t)e 0rocess o( loan
sanctionin" o( Citi(inancial.
? To create a c)art o( loan 0rocessin" to ne$ customers and as $ell as (or e7istin"
customers.
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ADVANCES PROCESS MANAGEMENTAT CITI FINANCIAL
&-:TBI1
:6+6-:CE
uired data is collected t)rou") 4ot) t)e sources.
&rimary /ata
o ;uestionnaire met)od
o &ersonal inter#ie$ met)od @In(ormal discussion $it)
res0ondents & e7ecuti#esA
o O4ser#ation met)od
+econdary data
o Te7t 4ooks
o ualitati#e (actors.
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ADVANCES PROCESS MANAGEMENTAT CITI FINANCIAL
&-:TB1
-N-8D+I+ & FIN/ING+
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ADVANCES PROCESS MANAGEMENTAT CITI FINANCIAL
ANAL-SIS/
2. ?-POT?ESIS
?O/ Time 0romised 4y Citi(inancial & Time taken 4y t)e Citi(inancial to dis4urse t)e
loan are inde0endent o( eac) ot)er.
?2/ Time 0romised 4y Citi(inancial & Time taken 4y t)e Citi(inancial to dis4urse t)e
loan are de0endent o( eac) ot)er.
Time taken by Citifinancial * Time Promised by Citifinancial Crosstabulation
Count
5 5
1 19 4 24
1 4 9 1 15
1 3 13 39 56
8 26 26 40 100
12-24 hours
24-36 hours
36-48 hours
More than 48 hours
i!e ta"en #$
Citi%inancial
otal
12-24 hours 24-36 hours 36-48 hours
More than
48 hours
i!e &ro!ise' #$ Citi%inancial
otal
Chi-!uare Tests
129(660
a
9 (000
101(841 9 (000
60(442 1 (000
100
&earson Chi-S)uare
*i"elihoo' Ratio
*inear-#$-*inear
+ssociation
, o% -ali' Cases
-alue '%
+s$!.( Sig(
/2-si'e'0
9 cells /56(310 ha2e e3.ecte' count less than 5( he
!ini!u! e3.ecte' count is (40(
a(
Int#r*r#tat!on/
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ADVANCES PROCESS MANAGEMENTAT CITI FINANCIAL
+ince t)e &earson C)iB+>uare #alue is . $)ic) is less t)an .%@le#el o(
si"ni(icanceA2 E is re3ected and E1 is acce0ted2 i.e.2 Time 0romised 4y Citi(inancial &
Time taken 4y t)e Cititinancial to dis4urse t)e loan are de0endent o( eac) ot)er
4. FACTOR ANAL-SIS/ Eat >C s!$n!!&an&# "#0#"3
"MO and Bartlett#s Test
(623
205(956
36
(000
4aiser-Me$er-Ol"in Measure o% Sa!.ling
+'e)uac$(
+..ro3( Chi-S)uare
'%
Sig(
Bartlett5s est o%
S.hericit$
As t'# ues.
? Citi(inancial must issue t)e letter o( clearance immediately on t)e 0ayment o(
last 6uirements t)ey are e70ectin"
o 8o$ and com0etiti#e interest rates2
o 8o$ C)e>ue 4ounce c)ar"es2
o &ro0er customer care2
o Better=>uick ser#ice (acility2
o Clear and trans0arent in(ormation a4out t)e loan2
o In(ormation 4e(ore 0resentin" c)e>ue (or clearance2
O#erall customers are satis(ied $it) t)e 0rocessin" time o( t)e or"ani*ation and
a4o#e im0ro#ements are essential to attract more customers and to maintain 4est 4ankin"
relations.
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ADVANCES PROCESS MANAGEMENTAT CITI FINANCIAL
&-:TB1III
BIB8IOG:-&ED
BABASAB PATIL MBA PROJECT REPORT Page 51
ADVANCES PROCESS MANAGEMENTAT CITI FINANCIAL
B!)"!o$ra*'y
Books
1. Indian Financial +ystem
B 1asant /esai
,e4sites
1. $$$.citi(inancial.com
2. $$$.Citi"rou0.com
3. $$$."oo"le.co.in @Goo"le searc) en"ineA.
!. $$$.$iki0edia.com
Tournals
1. T)e 3ournal o( Bankin" studies.
BABASAB PATIL MBA PROJECT REPORT Page 52
ADVANCES PROCESS MANAGEMENTAT CITI FINANCIAL
&-:TBIF
-NN6FC:6
BABASAB PATIL MBA PROJECT REPORT Page 53
ADVANCES PROCESS MANAGEMENTAT CITI FINANCIAL
QUESTIONNAIRE
Dear Sir/Madam,
1. &ersonal data
Name :
-"e :
Gender :
-ddress :
Contact no : @:A @
A PROJECT REPORT
ON
ADVANCES PROCESS
MANAGEMENTAT CITI FINANCIAL
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ADVANCES PROCESS MANAGEMENTAT CITI FINANCIAL
TABLE OF CONTENT
SL.NO PARTICULARS PAGE NO.
Part-I. Industry Pro!"# 1
1.1 Introduction to loan industry. 2
1.2 NBFC’s at a Glance. 3
1.3 Consumer Finance Industry: Trends & Outlooks. 1
1.! Bankin" O#er#ie$ 1!
1.% . &ersonal loans in India. 1'
Part-II. Or$an!%at!on Pro!"# 21
2.1 Introduction o( t)e Or"ani*ation. 22
2.2 +,OT -nalysis 2.
2.3 /e0artmental +tudy 2'
2.! Or"ani*ation +tructure 32
2.% 1ision2 +tren"t)s & Com0etiti#e -d#anta"e 33
2... &roducts o( Citi(inancial 3%
Part-III. Introdu&t!on to R#s#ar&' !2
3.1 Title o( t)e &ro3ect !3
3.2 T)eoretical 4ack"round o( t)e study !3
3.3 +tatement o( &ro4lem !5
3.! O43ecti#es & Need o( t)e study !5
3.% 670ectations (rom t)e study %
Part-IV. R#s#ar&' M#t'odo"o$y %1
!.1 /ata collection met)od %2
!.2 +am0lin" %2
!.3 /ata -nalysis %3
!.! 8imitations o( t)e study %3
Part-V. Ana"ys!s ( F!nd!n$s %!
%.1 Gra0)ical &resentation o( t)e -nalysis %%
%.2 Findin"s 9.
Part-VI. Su$$#st!ons 9'
..1 +u""estions 95
Part-VII. Con&"us!on '1
9.1 Conclusion '2
Part-VIII. B!)"!o$ra*'y '3
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'.1 Bi4lio"ra0)y & :e(erences '!
Part-I+. Ann#,ur# '%
5.1 ;uestionnaire '.
E+ECUTIVE SUMMAR-
-ccordin" to -l4ert 6instein “Everything should be as simpler as possible
but not the simplest”. T)e Citi(inancial (unctions $it) t)is 0recisely ma7im. Citi(inancial
is already )as t)e 4roadest distri4ution in India2 t)eir main aim is to 4ecome t)e lar"est
NBFC in t)e $orld.
Citi(inancial consumer (inance India ltd is one o( t)e (e$ sur#i#in" 0ri#ate
(inancial institutions since 15122 )a#e t)e e7istence in more t)an 1 countries $it)
3 em0loyees $orld$ide. It o((ers #aries ty0es o( loans to t)e customers namely2
0ersonal loans2 #e)icle loans2 Consumer dura4le loans and )ome loans etc. uired (or t)e 0rocess o( sanctionin" loans.
o To e#aluate t)e 0rocess. I( t)ere is any de#iation in t)e 0rocess2 t)en
(indin" out t)e reasons.
Stat!st!&a" Ana"ys!s/ T)e researc) in#ol#es statistical analysis2 some o( analysis and
com0utations under t)e study are:
o C)iBs>uare test
o Factor -nalysis
o Fre>uencies
o +tandard /e#iation & mean
F!nd!n$s: Based on researc) o43ecti#e cited a4o#e2 and a(ter analy*in" data relatin" to
(unds2 (ollo$in" are t)e main (indin"s in t)e 0ro3ect:
• -s 0er t)e sur#ey it )as 4een (ound t)at t)e de#iation in t)e 0rocess due to
Internal & 67ternal reasons.
• It is seen t)at t)e e7ecuti#es )a#e to 4rin" one lo"in 0er day. I( t)ere are
more t)an one lo"in on a 0articular day2 t)en t)e second lo"in is 4ein"
0roduced on t)e ne7t day. T)is results in a delay in t)e 0rocess o(
sanctionin" loan (or t)e second lo"in.
• Interest rates and &rocessin" c)ar"es are >uite )i") com0arin" to ot)er
com0anies. Customers need lo$ and com0etiti#e interest rates2 &ro0er
customer care2 Better=;uick ser#ice (acility (orm Citi(inancial.
• 67ecuti#es are lackin" in "i#in" detail2 trans0arent and detail in(ormation
to t)e customers in t)e 4e"innin".
• Trans0arency a4out 6ues (or clearance.
o Trainin" )as to 4e "i#en to t)e 67ecuti#es.
• Customers need
o 8o$ and com0etiti#e interest rates2
o &ro0er customer care2
o Better=>uick ser#ice (acility2
o 8o$ C)e>ue 4ounce c)ar"es.
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Con&"us!on/ -(ter t)e com0letion o( t)e study I $ould like to conclude t)e (ollo$in"
0oints2 $)ic) $ere re#ealed t)rou") (indin"s o( t)e study:
• &rocessin" time2 +anctionin" 0rocedure and ser#ice are t)e key (actors $)ic)
are in(luencin" customers to 0re(er Citi(inancial.
• 67ecuti#es are t)e (rontline em0loyees o( t)e or"ani*ation so t)ey )a#e to 4e
trained & t)ey s)ould 4e a4le to 0ro#ide e#ery in(ormation to t)e customers.
• ue 4ounce c)ar"es2
o &ro0er customer care2
o Better=>uick ser#ice (acility2
o Clear and trans0arent in(ormation a4out t)e loan2
o In(ormation 4e(ore 0resentin" C)e>ue (or clearance2
O#erall customers are satis(ied $it) t)e 0rocessin" time o( t)e or"ani*ation and
a4o#e im0ro#ements are essential to attract more customers and to maintain 4est 4ankin"
relations.
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&-:TBI
IN/C+T
&:OFI86BABASAB PATIL MBA PROJECT REPORT Page 9
ADVANCES PROCESS MANAGEMENTAT CITI FINANCIAL
2.23 LOAN INDUSTR- PROFILE
- loan is an
arran"ement 4et$een a lender
and a 4orro$er. T)e lender
"i#es money2 0ro0erty2 or
eit)er asset to t)e 4orro$er and 4orro$er a"rees to re0ay t)e money $it) interest at some
(uture 0oint o( time. T)ere is usually a 0redetermined time (or re0ayin" t)e loan and
"enerally t)e lender 4ears t)e risk t)at t)e 4orro$er mi")t not re0ay t)e loan. T)ere are
many di((erent ty0es and classes o( loans eac) $it) t)eir o$n set o( rules and terms.
Gi#en t)e current interest rates and t)e likeli)ood t)at tae rate
$ill "o u0 o#er t)e ne7t year as t)e economy starts 0ickin" u02 it is a "ood time to "o in
(or a "ood rate (or a loan. T)e interest rates $ill "o u0 as t)e economy im0ro#es and one
needs to 4e locked into a lon"Bterm lo$ interest rate. I( one )as a 0ersonal de4t2 like (rom
credit cards or any ot)er 0lace2 t)ey s)ould 0ro4a4ly consider consolidatin" t)e de4t. One
$ill de(initely "et a 4etter rate t)an a credit card $ill o((er. I( one )as many loans and
de4t2 0uttin" t)em to"et)er into a lar"er amount allo$s one to ne"otiate a 4etter rate.
- loan is 4ased on a sim0le ideaB someone "i#es you money and you
0romise to 0ay it 4ack2 usually $it) interest. +ince one must 0ay 4ack t)e lender $)et)er
t)e 4usiness is a (a4ulous success or a misera4le (ailure2 t)e entire risk o( t)e ne$
enter0rise is 0laced s>uarely on ones s)oulders. But i( you are con(ident a4out t)e
0ros0ects o( a 4usiness and one )as t)e o00ortunity 4orro$ money2 a loan may 4e a more
attracti#e source o( money t)an "ettin" it (rom e>uity in#estor $)o $ill o$n a 0iece o( a
4usiness and recei#e a s)are o( t)e 0ro(its. I( t)e 4usiness succeeds as one )o0es a4d t)e
0erson 0ays 4ack t)e lender as 0romised2 one $ill rea0 all (uture 0ro(its t)ere is no need
to s)are t)em $it) in#estors.
2.43 NBFC5s AT A GLANCE
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T)e (inancial system com0rises (inancial institutions2 (inancial
instruments and (inancial markets2 $)ic) 0ro#ide an e((ecti#e 0ayment and credit system2
t)ere4y (acilitate t)e c)annelisin" o( (unds (rom t)e sa#ers to t)e in#estors in t)e
economy. T)e institutional structure o( t)e or"ani*ed Indian (inancial system is
e70andin" or"ani*ations o( #arious si*es2 (unctions2 s)a0es and structures. T)ey are
4roadly classi(ied as (ollo$s:
Commercial 4anks in t)e 0u4lic and 0ri#ate sector2 includin" Indian 4ranc)es o(
(orei"n 4anks.
T)e t)reeBtiered structure o( coBo0erati#e 4anks caterin" to t)e needs o( rural
credit and a"ricultural sector.
Cr4an coBo0erati#e 4anks (unctionin" in ur4an=metro0olitan areas and 0ro#idin"
credit (or nonBa"ricultural sectors.
:e"ional rural 4anks s0onsored 4y t)e commercial 4anks in 0u4lic sector in
0artici0ation $it) central=state "o#ernments (or meetin" t)e rural credit need an
intensi#e manner as su00lement to credit t)rou") coBo0erati#e a"encies and
commercial 4anks.
/e#elo0mental Financial Institutions @/FIsA 0ro#idin" term lendin" (acilities at
all India le#els suc) as : I:BI2 I/BI2 ICICI2 NEB2 6FI< Bank2 +I/BI2 IFCI and
N-B-:/ and 1' +tate 8e#el (inancial cor0orations and ot)er s0eciali*ed
cor0orations set u0 4y #arious +tate Go#ernments2 (or 0romotion and
de#elo0ment o( small scale industrial sector.
T)e commercial 4ankin" sector occu0ies a 0lace o( 0ride in t)e (inancial system
o( t)e country and it )as under"one a sea c)an"e in its "eo"ra0)ical co#era"e and nature
o( acti#ities. -t 0resent it com0rises t)e +BI alon" $it) its se#en su4sidiaries2 t)e 2
nationali*ed 4anks2 23 0ri#ate 4anks 4esides 2! (orei"n 4anks )a#in" t)eir )ead o((ices
a4road. T)e 0u4lic sector 4anks com0risin" +BI "rou0 to"et)er $it) t)e nationali*ed
4anks accounts 5G o( t)e total 4ankin" 4usiness. T)e ot)er (inancial institutions )a#e
also made muc) 0ro"ress in recent years in e7tendin" its "eo"ra0)ical s0read and
(unctional reac). uite testin" (or NBFC’s. Im0osition o( uestion as $ell as to $)o $ill sur#i#e t)e comin" times. It is e70ected
t)at only t)e to0 $ill 4e a4le to $it)stand t)e rest o( times. T)e sur#i#ors o( in t)e NBFC
"ame $ould 4e t)ose $)o $ill )a#e si*ea4le resources $it) a distinct (ocus in e#ery
4usiness se"ment. T)ose NBFC’s 4acked 4y t)e "rou0 $it) manu(acturin" credentials
$ill 4e at a 4i" ad#anta"e.
I( t)e 0arent com0any is in a ca0italBintensi#e 4usiness2 so muc) t)e 4etter.
+i*e $ill 4e o( critical im0ortance and $ill lead to a lot o( mer"ers and ac>uisitions $it)
local as $ell as international 0layers.
S&#nar!o o NBFC/
NonB4ankin" (inance com0anies @NBFCsA )a#e 0layed an im0ortant role in t)e
Indian (inancial system. Traditionally t)ey )a#e 4een t)e #e)icle (or (inancin" indi#iduals
and cor0orates $)o )ad some di((iculty in o4tainin" 4ank (undin". 6arlier2 commercial
4anks tended to stay a$ay (rom retail and smallBtoBmedium si*ed cor0orates and t)e
NBFCs sa$ o00ortunity in t)is #oid and 4uilt dominant 0ositions in automo4ile
(inancin"2 commercial #e)icle (inancin"2 I&O (undin" and cor0orate leasin".
Conse>uently2 many NBFCs set u0 lar"e country$ide distri4ution net$orks B o(ten as
lar"e as t)ose o( consumer com0anies.
T'# d#*os!t-)as# o NBFCs $r#7 ra*!d"y !n t'# #ar"y-1!d n!n#t!#s8
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ADVANCES PROCESS MANAGEMENTAT CITI FINANCIAL
T)e industry )as "one t)rou") su4stantial u0)ea#al in t)e last decade. 6asy
access o( (unds (rom @iA ca0ital market I&Os and @iiA de0osits (rom t)e 0u4lic resulted in
t)e mus)roomin" o( many NBFCs in t)e late ei")ties2 earlyBtoBmid nineties. In 15'12
t)ere $ere 92.3 NBFCs. T)is num4er s)ot u0 to 2!25 in 155 and 4y 155%2 t)ere $ere
as many as %%255% suc) com0anies.
In#estors $ere o(ten attracted 4y t)e )i") de0osit rates o((ered 4y NBFCs $)o
de0loyed t)ese (unds (or cor0orate lendin"2 consumer lendin" and ca0ital market
+im0li(ied sanction 0rocedures2 orientation to$ards customers2 (le7i4ility timeliness in
meetin" t)e credit needs o( s0eci(ied sectors @like e>ui0ment and )ire 0urc)aseA $ere
some o( t)e (actors en)ancin" t)e attracti#eness sector. From -0rB1551 to uacy and asset concentration are
more strin"ent t)an t)ose 0ertainin" to 4anks. T)e minimum ca0ital ade>uacy ratio
(or NBFCs is 12G $)ile it is 1G (or 4anks.
NBFCs "enerally cannot acce0t de0osits unless t)ey )a#e a minimum credit ratin"
$)ic) is not mandatory in res0ect o( 4anks.
+tatutory 8i>uidity :atio @+8:A (or NBFCs is 12.%G com0ared to t)e 2%G a00lica4le
to 4anks.
Interest on 4ank de0osits u0to a certain limit is e7em0t (rom indi#idual income ta7.
No suc) 4ene(it is allo$ed (or NBFC de0osits.
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ADVANCES PROCESS MANAGEMENTAT CITI FINANCIAL
Only 4anks and (inancial institutions )a#e access to /e4t :eco#ery Tri4unals @/:TsA
$)ic) )a#e 4een constituted under a se0arate la$ to e70edite settlement o( delin>uent
loans o( 4anks and (inancial institutions.
-n insurance co#er t)at aids de0ositors reco#er de0osits $)en a 4ank "oes 4ankru0t
is una#aila4le to in#estors in NBFCs.
R#$u"atory Fra1#7or6
T)e Bankin" 8a$s @ue and Internal Trans(er o( (unds.
In #ie$ o( se#eral de#elo0ments in t)e 155s2 t)e entire 4ankin" 0roducts
structure )as under"one a ma3or c)an"e. -s 0art o( t)e economic re(orms2 4ankin"
industry )as 4een dere"ulated and made com0etiti#e. Ne$ 0layers )a#e added to t)e
com0etition. IT re#olution )as made it 0ossi4le to 0ro#ide ease and (le7i4ility in
o0erations to customers. :a0id strides in in(ormation tec)nolo"y )a#e2 in (act2 rede(ined
t)e role and structure o( 4ankin" in India. Furt)er2 due to e70osure to "lo4al trends a(ter
In(ormation e70losion led 4y Internet2 customers B 4ot) Indi#iduals and Cor0orates B are
no$ demandin" 4etter ser#ices $it) more 0roducts (rom t)eir 4anks. Financial market
)as turned into a 4uyerNs market. Banks are also c)an"in" $it) time and are tryin" to
4ecome oneBsto0 (inancial su0ermarkets. uity.
T)e com0any’s com(orta4le resource 0ro(ile2 im0ro#in" market 0osition in t)e
0ersonal loan and )ome e>uity se"ments2 consistently "ood asset >uality and ade>uate
ca0ital ade>uacy @12.3G as at uity
and loans a"ainst &ersonal o( 0ro0erty @31GA.
T)e remainin" 1G $as loans (or commercial e>ui0ment2 a se"ment in $)ic)
Citi(inancial $ill not 4e $ritin" any (res) 4usiness. For t)e year ended ue o0tions to s0eci(ic customer se"ments o((erin" risk ad3usted
0ricin".
8oan credit s)ield o0tion2
Team s0irit and ent)usiasm in t)e sel( contained &8 teams.
=#a6n#ss/
Ei") interest rates and conse>uently )i")er risk customer 0ro(ile2
8o$Bticket si*e2
8o$ #isi4ility o( 4rand.
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ADVANCES PROCESS MANAGEMENTAT CITI FINANCIAL
O**ortun!t!#s/
670ected "ro$t) o( t)e middle class market2
Geo"ra0)ical e70ansion 4y o0enin" &ersonal loan 4ranc)es2
:e"ular "ro$t) in t)e -T& data4ase continuin" to o((er cross sell o00ortunities2
T)e com0any no$ 4ein" a 0art o( t)e Citi"rou02 $)ic) s)ould contri4ute to 4etter
4rand #isi4ility in t)e comin" days.
T'r#ats/
&ossi4ility o( com0etition in t)e 0resent tar"et se"ment o( Citi(inancial2
&ossi4ility o( 0oor >uality cases comin" into t)e system directly or indirectly
t)rou") (reelancers=a"ents re(errin" Citi(inancial to suc) customers $it)out our
kno$led"e.
BABASAB PATIL MBA PROJECT REPORT Page 32
ADVANCES PROCESS MANAGEMENTAT CITI FINANCIAL
4.:3 DEPARTMENTAL STUD-/
2. CREDIT AND RIS< DEPARTMENT
T)is de0artment includes t$o ty0es o( 3o4 0ro(iles namely Credit and Collections. T)e
de0artment is lia4le to (or endBtoBend credit and collection (unctions.
Cr#d!t Und#r7r!t!n$/
T)is de0artment is res0onsi4le (or c)eck t)e credita4ility o( t)e customer and to
decide a4out a00ro#al or re3ection o( t)e loan a00lication2 t)e de0artment #ets t)e
a00lications (or$arded 4y t)e sales de0artments and does t)e same.
Fun&t!ons/
To #eri(y t)e re0ayment ca0acity o( t)e customer.
To a00ro#e t)e ri")t kinds customer loan a00lications.
Inter de0artmental interaction es0ecially $it) t)e sales and collections
de0artments.
Co""#&t!ons/
T)is de0artment is res0onsi4le to recollect t)e un0aid money (rom t)e customers
t)rou") collection a"encies. T)e em0loyees in t)is de0artment $ill 4e on (ield to 0er(orm
t)eir task.
Fun&t!ons/
+ystem 4ased collections and "eneratin" re0orts.
:elations)i0 uity loans o((er you t)e o00ortunity to "et a loan a"ainst
your 0ro0erty (or 0ractically any 0ur0ose. Our (riendly2 (le7i4le and (ast ser#ice o((ers
you t)e 4est o0tion to (ree t)e $ealt) locked u0 in your 0ro0erty
F#atur#s
'roperty loan up to #s. ( "rore: Get loans (rom :s. 2 8ak) to :s. 2 Crore and u0
to .G o( t)e market #alue o( your 0ro0erty.
)le*ible procedures: Fle7i4le income criteria and loans a"ainst rented2 #acant and
sel(Boccu0ied residential 0ro0erties. 8oans can also 4e a#ailed on 0ro0erty
4elon"in" to your (amily mem4ers.
Easy repayment: 8oan re0ayment term is a#aila4le u0 to a 0eriod o( 1% years and
easy re0ayment on 6>uated BBBB
B Customer in(ormed and /ocuments= &/C
c)ecked.
B /e4t Burden ca00ed at 9G.
B 8atest Income &roo( re>uired.
Cas#s 7!t' F!nan&# A1ount J Rs >BBBB
Customer in(ormed and /ocuments= &/C
c)ecked.
:e3ect
/ata4ase callin"
8ead Generated
Con(irmation o( -ddress
and &)one Nos.
:e(erence num4er "eneration
4ased on u0dated T1:
/edu0e
CPV In!t!at#d or &as#s 7'#r#/
B-ddress c)an"e
B&re#ious loan (astrack
B&re#ious loan closed more t)an .
mont)s 4ack
F0# -0#
F0# -0#
:e3ect -cce0t
&re0are C)e>ue2 +i"n and /is4urse
-cce0t
TRANSACTION PROCESSHE+ISTING BORRO=ER
ADVANCES PROCESS MANAGEMENTAT CITI FINANCIAL
E,*"anat!on/
2. LOGIN/
=a"6 Ins./ It is #ery im0ortant t)at a $alkBin customer is made to (eel at ease and
com(orta4le $)en )e=s)e $alks in to t)e 4ranc).
T#"#*'on!& #nGu!r!#s/ - 0ros0ecti#e customer calls to kno$ a4out t)e 0roducts’
detail a(ter "oin" t)rou") t)e di((erent modes o( ad#ertisements and $ord o(
mout).
E,#&ut!0#s/ - distri4ution net$ork set (or 0ersonal loan (or t)e con#enience o(
t)e customers.
4. APPLICATION FORM/
Eere t)e a00licant )as to (ill out an a00lication (orm $)ic) is "i#en to )im. T)e
a00lication (orm consists o( t)e a00licants name2 address2 0)one num4er2 occu0ation
details & date o( 4irt)2 Bank account details and :e(erence name & /etails.
T)e loan a00licant also )as to su4mit t)e rele#ant documents like income 0roo(2
0)oto"ra0)s2 address 0roo( & last .mont)s 4ank statement.
:. INITIAL SCREENING/
Eere customers are called & eit)er e7ecuti#es or O((icers screen t)e customers.
;. REFERENCE NUMBER/
:e(erence num4er means it is as "ood as an account num4er. It contains t)e
in(ormation a4out customer’s credit $ort)iness
BABASAB PATIL MBA PROJECT REPORT Page %2
ADVANCES PROCESS MANAGEMENTAT CITI FINANCIAL
>. a3 Conta&t Po!nt V#r!!&at!on E CPV3/
-(ter t)e a00lication (orm is scrutini*ed a contact 0oint #eri(ication re0ort )as to 4e
0re0ared. T)e C&1 $ork is carried out 4y an e7ternal a"ency. T)e main 3o4 o( t)e
a"ency is to c)eck t)e address o( t)e 0otential a00licant @4ot) O((ice & :esidenceA &
also t)e standard o( li#in" conditions. T)e C&1 re0ort also 0uts (or$ard its comments
a4out t)e a00licant like $)et)er t)e source o( income is secure or $)et)er t)e
standard o( li#in" is (air=0oor.
)3 T#"#*'on# V#r!!&at!on R#*ort ETVR3/
T)e ne7t ste0 is t)e T1: sta"e. Eere t)e #eri(ication is done o#er t)e 0)one to t)e
a00licant’s o((ice & residence 0)ones.
1arious >uestions are asked like ty0es o( dura4les 0resent in t)e )ouse2 num4er o(
#e)icles o$ned2 (amily mem4ers2 de0endents2 etc2 in t)e residence 0)one #eri(ication.
In t)e o((ice 0)one #eri(ication >uestions suc) as num4er o( $orkers in t)e o((ice2
ty0e o( industry2 salary earned2 etc2 are asked.
Based on t)e (eed4ack recei#ed t)e T1: can 4e termed 0ositi#e @R#eA or ne"ati#e @B
#eA.
D. CALL FOR INTERVIE= ECFI3/
T)e ne7t ste0 is t)e CFI $)ere t)e a00licant )as to come to t)e o((ice (or t)e
inter#ie$ $it) all )is ori"inal documents. Eere t)e a00licant is asked some rele#ant
>uestions a4out t)e loan amount )e=s)e $ants2 0ur0ose o( t)e loan & com(orta4le
mont)ly installment. -ll t)is is $ritten on a CFI s)eet.
Based on C1&2 T1: & CFI a loan sc)eme is e70lained to t)e customer. I(
t)e customer is not )a00y $it) t)e sc)eme2 #arious o0tions are 0ut (or$ard to )im.
T)ere are a #ariety o( sc)emes a#aila4le to suit t)e customer.
BABASAB PATIL MBA PROJECT REPORT Page %3
ADVANCES PROCESS MANAGEMENTAT CITI FINANCIAL
K. BUDGET ANAL-SIS/
- 4ud"et analysis is carried out to (ind out $)et)er t)e 6uated ue is
(inally 0rinted & )anded to t)e customer.
BABASAB PATIL MBA PROJECT REPORT Page %!
ADVANCES PROCESS MANAGEMENTAT CITI FINANCIAL
:.:3 STATEMENT OF PROBLEM
Citi(inancial is kno$n (or its con#enient a00lication and (ast a00ro#al
0rocess @>uick 0rocessin" timeA. But in some cases t)e 0rocessin" is "ettin" delayed and
customers are not )a00y $it) t)is. Citi(inancial2 Bel"aum 4ranc) $anted to kno$ $)at
are t)e reasons (or t)e delay in 0rocess o( loan sanctionin".
:.;3 NEED ( OBJECTIVE OF T?E STUD-
N##d or t'# Study/
• To learn a4out t)e #arious 0rocedures =0rocesses o( "i#in" loans.
• To determine t)e time re>uired (or eac) 0rocess.
• I( t)ere is any de#iation in t)e 0rocess2 t)en (indin" out t)e reasons (or t)e
de#iation?
• To determine t)e $ays to im0ro#e T-T @Turn -round TimeA
O).#&t!0#s/
'rimary ob+ectives,
o To study t)e or"ani*ation structure.
o To learn a4out t)e e7istin" 0rocess o( "i#in" loans.
o To (ormulate strate"ies to minimi*e t)e time.
Secondary ob+ectives,
o To study t)e time re>uired (or t)e 0rocess o( "i#in" loans.
o To e#aluate t)e 0rocess. I( t)ere is any de#iation in t)e 0rocess2 t)en
(indin" out t)e reasons.
BABASAB PATIL MBA PROJECT REPORT Page %%
ADVANCES PROCESS MANAGEMENTAT CITI FINANCIAL
:.>3 E+PECTATIONS FROM T?E STUD-
? To determine t)e time re>uired (or eac) 0rocess o( loan sanctionin".
? To (ind out t)e reasons (or t)e de#iations in t)e 0rocess o( loan sanctionin".
? To (ormulate t)e strate"ies to minimi*e t)e time re>uired (or eac) 0rocess o( loan
sanctionin".
? To (ind out t)e e70ectations o( customers re"ardin" t)e 0rocess o( loan
sanctionin" o( Citi(inancial.
? To create a c)art o( loan 0rocessin" to ne$ customers and as $ell as (or e7istin"
customers.
BABASAB PATIL MBA PROJECT REPORT Page %.
ADVANCES PROCESS MANAGEMENTAT CITI FINANCIAL
&-:TBI1
:6+6-:CE
uired data is collected t)rou") 4ot) t)e sources.
&rimary /ata
o ;uestionnaire met)od
o &ersonal inter#ie$ met)od @In(ormal discussion $it)
res0ondents & e7ecuti#esA
o O4ser#ation met)od
+econdary data
o Te7t 4ooks
o ualitati#e (actors.
BABASAB PATIL MBA PROJECT REPORT Page %5
ADVANCES PROCESS MANAGEMENTAT CITI FINANCIAL
&-:TB1
-N-8D+I+ & FIN/ING+
BABASAB PATIL MBA PROJECT REPORT Page .
ADVANCES PROCESS MANAGEMENTAT CITI FINANCIAL
ANAL-SIS/
2. ?-POT?ESIS
?O/ Time 0romised 4y Citi(inancial & Time taken 4y t)e Citi(inancial to dis4urse t)e
loan are inde0endent o( eac) ot)er.
?2/ Time 0romised 4y Citi(inancial & Time taken 4y t)e Citi(inancial to dis4urse t)e
loan are de0endent o( eac) ot)er.
Time taken by Citifinancial * Time Promised by Citifinancial Crosstabulation
Count
5 5
1 19 4 24
1 4 9 1 15
1 3 13 39 56
8 26 26 40 100
12-24 hours
24-36 hours
36-48 hours
More than 48 hours
i!e ta"en #$
Citi%inancial
otal
12-24 hours 24-36 hours 36-48 hours
More than
48 hours
i!e &ro!ise' #$ Citi%inancial
otal
Chi-!uare Tests
129(660
a
9 (000
101(841 9 (000
60(442 1 (000
100
&earson Chi-S)uare
*i"elihoo' Ratio
*inear-#$-*inear
+ssociation
, o% -ali' Cases
-alue '%
+s$!.( Sig(
/2-si'e'0
9 cells /56(310 ha2e e3.ecte' count less than 5( he
!ini!u! e3.ecte' count is (40(
a(
Int#r*r#tat!on/
BABASAB PATIL MBA PROJECT REPORT Page .1
ADVANCES PROCESS MANAGEMENTAT CITI FINANCIAL
+ince t)e &earson C)iB+>uare #alue is . $)ic) is less t)an .%@le#el o(
si"ni(icanceA2 E is re3ected and E1 is acce0ted2 i.e.2 Time 0romised 4y Citi(inancial &
Time taken 4y t)e Cititinancial to dis4urse t)e loan are de0endent o( eac) ot)er
4. FACTOR ANAL-SIS/ Eat >C s!$n!!&an&# "#0#"3
"MO and Bartlett#s Test
(623
205(956
36
(000
4aiser-Me$er-Ol"in Measure o% Sa!.ling
+'e)uac$(
+..ro3( Chi-S)uare
'%
Sig(
Bartlett5s est o%
S.hericit$
As t'# ues.
? Citi(inancial must issue t)e letter o( clearance immediately on t)e 0ayment o(
last 6uirements t)ey are e70ectin"
o 8o$ and com0etiti#e interest rates2
o 8o$ C)e>ue 4ounce c)ar"es2
o &ro0er customer care2
o Better=>uick ser#ice (acility2
o Clear and trans0arent in(ormation a4out t)e loan2
o In(ormation 4e(ore 0resentin" c)e>ue (or clearance2
O#erall customers are satis(ied $it) t)e 0rocessin" time o( t)e or"ani*ation and
a4o#e im0ro#ements are essential to attract more customers and to maintain 4est 4ankin"
relations.
BABASAB PATIL MBA PROJECT REPORT Page 5
ADVANCES PROCESS MANAGEMENTAT CITI FINANCIAL
&-:TB1III
BIB8IOG:-&ED
BABASAB PATIL MBA PROJECT REPORT Page 51
ADVANCES PROCESS MANAGEMENTAT CITI FINANCIAL
B!)"!o$ra*'y
Books
1. Indian Financial +ystem
B 1asant /esai
,e4sites
1. $$$.citi(inancial.com
2. $$$.Citi"rou0.com
3. $$$."oo"le.co.in @Goo"le searc) en"ineA.
!. $$$.$iki0edia.com
Tournals
1. T)e 3ournal o( Bankin" studies.
BABASAB PATIL MBA PROJECT REPORT Page 52
ADVANCES PROCESS MANAGEMENTAT CITI FINANCIAL
&-:TBIF
-NN6FC:6
BABASAB PATIL MBA PROJECT REPORT Page 53
ADVANCES PROCESS MANAGEMENTAT CITI FINANCIAL
QUESTIONNAIRE
Dear Sir/Madam,
1. &ersonal data
Name :
-"e :
Gender :
-ddress :
Contact no : @:A @