1
TO FIND OUT THE FACTORS INFLUENCING
CUSTOMER SATISFACTION TOWARDS THE
SERVICES PROVIDED BY IBHFL
Research Report submitted to Entrepreneurship Development Institute
of India in partial fulfillment of the requirements for the award of
Post Graduate Diploma in Business Management
Submitted by
Suraj Apagonda Patil
Register No.: 12E!"11#$
under the guidance of
Prof. Meghnathrao V. Belathur
!rofessor
ain %ollege
&angalore
Entrepreneurship Development Institute of India
Ahmedabad
!"#
Annexur
2
DE$%A&A'I()
I hereby declare that the research entitled “TO FIND OUT THE
FACTORS INFLUENCING CUSTOMER SATISFACTION
TOARDS THE SER!ICES "RO!IDED #$ I#HFL% s&b'itted
t( Entre)rene&rshi) De*el()'ent Instit&te (+ India in )artial
+&l+ill'ent (+ the re,&ire'ents +(r the a-ard (+ "GD#M. is a
rec(rd (+ inde)endent research -(r/ carried (&t by 'e &nder
the s&)er*isi(n and 0&idance (+ "r(+1 Me0hnathra( !1 #elath&r.
"r(+ess(r. 2ain C(lle0e. #an0al(re1 This -(r/ has n(t +(r'ed
the basis +(r the a-ard (+ any De0ree and has n(t been
s&b'itted )re*i(&sly t( any (ther C(lle0e3Uni*ersity1
Bangalore
NOVEMBER, 2013 Suraj Apagonda Patil
INRO!"#ION
3
Pro$% Meg&nat&rao V% Belat&ur
"r(+ess(r
2ain C(lle0e
#an0al(re
#ERI'I#AE
I certi+y that this research entitled “TO FIND OUT THE FACTORS
INFLUENCING CUSTOMER SATISFACTION TOARDS THE
SER!ICES "RO!IDED #$ I#HFL% s&b'itted t( Entre)rene&rshi)
De*el()'ent Instit&te (+ India in )artial +&l+ill'ent (+ the
re,&ire'ents +(r the a-ard (+ "GD#M. is a rec(rd (+ inde)endent
research -(r/ carried (&t by Mr1 S&ra4 A)a0(nda "atil &nder 'y
s&)er*isi(n and 0&idance1 This -(r/ has n(t +(r'ed the basis +(r
the a-ard (+ any De0ree and has n(t been s&b'itted )re*i(&sly t(
any (ther C(lle0e3Uni*ersity1
Bangalore Pro$% Meg&nat&rao V% Belat&ur
NOVEMBER, 2013 Re(ear)& Mentor
#ontent(
Page
No%
*i(t o$ a+le( I
*i(t o$ grap&( II
#&apter I Introdu)tion 5 6 57
515 Ind&stry "r(+ile
518 H('e l(an
519 Ind&stry str&ct&re
51: R(le in +inancial syste'
51; F&t&re res)ecti*e t(-ards N#FC sect(r
51< C&st('er satis+acti(n
517 C&st('er satis+acti(n Research
51= Fact(rs in+l&encin0 )erce)ti(n
#&apter II #o,pan- Pro$ile 5= > 9:
815 Ori0in (+ Or0ani?ati(n
818 Gr(-th and de*el()'ent (+ c(')any
819 "resent stat&s (+ c(')any
81: O-nershi)s )attern
81; #&siness
81< "r(d&ct and ser*ices
817 Financial in+(r'ati(n
81= Stren0th (+ I#HFL
81=15 H('e l(an stren0th
81=18 C(r)(rate stren0th
#&apter III Re(ear)& Met&odolog- 9; > :8
915 State'ent (+ the )r(ble'
918 Sc()e (+ the st&dy
919 Ob4ecti*e (+ the st&dy
91: Research 'eth(d(l(0y
91; Data c(llecti(n
91< Li'itati(n (+ the st&dy
4
#&apter
IV
!ata Anal-(i( :5 6 ;=
:15 C&st('er )re+erred +(r +inancial center
:18 "r(+ile (+ (&tline
:19 Gender shared (&t a'(n0 a 0r(&)
:1: C&st('er a-areness re0ardin0 I#HFL
:1; C&st('er )re+erence (n h(&sin0 l(an
:1< C&st('er )erce)ti(n (n I#HFL
:17 S(&rce (+ in+l&ence +(r the selecti(n (+ I#HFL
:1= Re0&lar c&st('er t( I#HFL
:1@ De0ree (+ c&st('er sa+e/ee)in0
:15A C(')any )r(*ides better ser*ices
:155 C&st('er ()ini(n (n -(rd (+ '(&th c(nnecti(n
:158 C&st('er )erce)ti(n (+ interest rate (+ I#HFL
:159 C&st('er eB)ectati(n
:15: $ears (+ c&st('er ass(ciati(n in I#HFL
:15; C&st('er )erce)ti(n (+ the 'ar/et share (+ I#HFL
:15< Ty)e (+ H(&sin0 L(an the c&st('ers ha*e ta/en
#&apter V 'inding( ;= 6 ;@
;15 Findin0s
#&apter
VI
#on)lu(ion . Re)o,,endation(
DG
FiiG N#FCs n(t acce)tin03h(ldin0 )&blic de)(sits FN#FC>NDG
FiiiG C(re in*est'ent c(')anies
11
NON3BAN4IN/ 'INAN#IA* INSI"ION
A n(nban/ +inancial instit&ti(n FN#FIG is interacts -ith ban/s and 0(*ern'ents. a
+inancial instit&ti(n that d(es n(t ha*e a +&ll ban/in0 license and cann(t acce)t
de)(sits +r(' the )&blic1 H(-e*er. N#FIs d( +acilitate alternati*e +inancial
ser*ices. s&ch as in*est'ent ris/ )((lin0. +inancial c(ns<in0. br(/erin0. '(ney
trans'issi(n. and chec/ cashin01 N#FIs are a s(&rce (+ c(ns&'er credit Fal(n0
-ith licensed ban/sG1 EBa')les (+ n(nban/ +inancial instit&ti(ns incl&de
ins&rance +ir's. *ent&re ca)italists. c&rrency eBchan0es. s('e 'icr(l(an
(r0ani?ati(ns. and )a-n sh()s1 These n(n>ban/ +inancial instit&ti(ns )r(*ide
ser*ices that are n(t necessarily s&ited t( ban/s. ser*e as c(')etiti(n t( ban/s.
and s)eciali?e in sect(rs (r 0r(&)s1
Ri(7 pooling in(titution(
Ins&rance c(')anies &nder-rite ec(n('ic ris/s ass(ciated -ith death. illness.
da'a0e t( (r l(ss (+ )r()erty. and (ther ris/ (+ l(ss1 Under this
syste'. ins&rance c(')anies c('e t(0ether t( +(r' a )((l. -hich can )r(*ide
)r(tecti(n t( ins&rance c(')anies a0ainst catastr()hic ris/s s&ch as +l((ds.
earth,&a/es etc1 They )r(*ide a c(ntin0ent )r('ise (+ ec(n('ic )r(tecti(n in
the case (+ l(ss1 There are t-( 'ain ty)es (+ ins&rance c(')aniesD li+e
ins&rance and 0eneral ins&rance1 General ins&rance tends t( be sh(rt>ter'.
-hile li+e ins&rance is a l(n0er c(ntract. endin0 at the death (+ the ins&red1 #(th
12
ty)es (+ ins&rance. li+e and )r()erty. are a*ailable t( all sect(rs (+ the c(''&nity1
#eca&se (+ the nat&re (+ the ins&rance ind&stry Fc(')anies '&st access a
)leth(ra (+ in+(r'ati(n t( assess the ris/ in each indi*id&al caseG. ins&rance
c(')anies en4(y a hi0h le*el (+ in+(r'ati(n e++iciency1
Li+e ins&rance c(')anies ins&re a0ainst ec(n('ic l(ss (+ the ins&redEs
)re'at&re death1 The ins&red -ill )ay a +iBed s&' as an ins&rance )re'i&'
e*ery ter'1 #eca&se the )r(bability (+ death increases -ith a0e -hile )re'i&'s
re'ain c(nstant. the ins&red (*er)ays in the earlier sta0es and &nder)ays in the
later years1 The (*er)ay'ent in the early years (+ the a0ree'ent is the cash
*al&e (+ the ins&rance )(licy1
General ins&rance is +&rther di*ided int( t-( cate0(riesD 'ar/et and s(cial
ins&rance1 S(cial ins&rance is a0ainst the ris/ (+ l(ss (+ inc('e d&e t( s&dden
&ne')l(y'ent. disability. illness. and nat&ral disasters1 #eca&se (+ the
&n)redictability (+ these ris/s. the ease at -hich the ins&red can hide )ertinent
in+(r'ati(n +r(' the ins&rer. and the )resence (+ '(ral ha?ard. )ri*ate ins&rance
c(')anies +re,&ently d( n(t )r(*ide s(cial ins&rance. a 0a) in the ins&rance
ind&stry -hich 0(*ern'ent &s&ally +ills1 S(cial ins&rance is '(re )re*alent in
ind&striali?ed estern s(cieties -here +a'ily net-(r/s and (ther (r0anic s(cial
s&))(rt 0r(&)s are n(t as )re*alent1
Mar/et ins&rance is )ri*ati?ed ins&rance +(r da'a0e (r l(ss (+ )r()erty1 General
ins&rance c(')anies ta/e a sin0le )re'i&' )ay'ent1 In ret&rn. the c(')anies
-ill 'a/e a s)eci+ied )ay'ent c(ntin0ent (n the e*ent that it is bein0 ins&red
a0ainst1 EBa')les incl&de the+t. +ire. da'a0e. nat&ral disaster. etc1
13
#ontra)tual (a8ing( in(titution(
C(ntract&al sa*in0s instit&ti(ns )r(*ide the ())(rt&nity +(r indi*id&als t( in*est in
c(llecti*e in*est'ent *ehicles in a +id&ciary rather than a )rinci)le r(le1
C(ntract&al sa*in0s instit&ti(ns incl&de nati(nal )r(*ident +&nds. li+e ins&rance
c(')anies. )ri*ate )ensi(n +&nds. and +&nded s(cial )ensi(n ins&rance syste's1
They ha*e l(n0>ter' liabilities and stable cash +l(-s and are there+(re ideal
)r(*iders (+ ter' +inance. n(t (nly t( 0(*ern'ent and ind&stry. b&t als( t(
'&nici)al a&th(rities and the h(&sin0 sect(r1 The t-( '(st )()&lar eBa')les (+
c(ntract&al sa*in0s instit&ti(ns are '&t&al +&nds and )ri*ate )ensi(n )lans1
The t-( 'ain ty)es (+ '&t&al +&nds are ()en>end and cl(sed>end +&nds1 O)en>
end +&nds 0enerate ne- in*est'ents by all(-in0 the )&blic b&y ne- shares at
any ti'e1 Shareh(lders can li,&idate their shares by sellin0 the' bac/ t( the
()en>end +&nd at the net asset *al&e1 Cl(sed>end +&nds iss&e a +iBed n&'ber (+
shares in an I"O1 The shareh(lders ca)itali?e (n the *al&e (+ their assets by
sellin0 their shares in a st(c/ eBchan0e1
"ensi(n +&nds are '&t&al +&nds that li'it the in*est(rEs ability t( access their
in*est'ent &ntil a+ter a certain date1 In ret&rn. )ensi(n +&nds are 0ranted lar0e
taB brea/s in (rder t( incenti*i?e the -(r/in0 )&blic t( set aside a )ercenta0e (+
their c&rrent inc('e +(r a later date -hen they are n( l(n0er a'(n0st lab(&r1
/RAP0 1%1
14
L(-er '(rt0a0e )enetrati(n c(')ared t( ad*anced and e'er0in0 ec(n('ies
i')lies h&0e ())(rt&nity +(r 0r(-th1
HM(rt0a0e t( GD" Rati( eB)ected t( i')r(*e t( 58I by F$5;. s&))(rted by
HIncreasin0 Urbani?ati(n
HI')r(*ed A++(rdability
15
1%1%2 NB'# "N!ER /OVERNMEN RE/"*AION
The -(r/in0 and ()erati(ns (+ N#FCs are re0&lated by the Reser*e #an/ (+
India FR#IG -ithin the +ra'e-(r/ (+ the Reser*e #an/ (+ India Act. 5@9: FCha)ter
III #G and the directi(ns iss&ed by it &nder the Act1 As )er the R#I Act. a Jn(n>
ban/in0 +inancial c(')anyJ is de+ined asD>
51 A +inancial instit&ti(n -hich is a c(')any1
81 A n(n>ban/in0 instit&ti(n -hich is a c(')any and -hich has as its )rinci)al
b&siness the recei*in0 (+ de)(sits. &nder any sche'e (r arran0e'ent (r in
any (ther 'anner. (r lendin0 in any 'anner1
91 S&ch (ther n(n>ban/in0 instit&ti(n (r class (+ s&ch instit&ti(ns. as the ban/
'ay. -ith the )re*i(&s a))r(*al (+ the Central G(*ern'ent and by
n(ti+icati(n in the O++icial Ga?ette. s)eci+y1
Under the Act. it is 'andat(ry +(r a N#FC t( 0et itsel+ re0istered -ith the R#I as
a de)(sit ta/in0 c(')any1 This re0istrati(n a&th(ri?es it t( c(nd&ct its b&siness
as an N#FC1 F(r the re0istrati(n -ith the R#I. a c(')any inc(r)(rated &nder
the C(')anies Act. 5@;< and desir(&s (+ c(''encin0 b&siness (+ n(n>ban/in0
+inancial instit&ti(n. sh(&ld ha*e a 'ini'&' net (-ned +&nd FNOFG (+ Rs 8; la/h
Fraised t( Rs 8AA la/h -1e1+ A)ril 85. 5@@@G1 The ter' JNOFJ 'eans. (-ned +&nds
F)aid>&) ca)ital and +ree reser*es. 'in&s acc&'&lated l(sses. de+erred re*en&e
eB)endit&re and (ther intan0ible assetsG less. FiG in*est'ents in shares (+
s&bsidiaries3c(')anies in the sa'e 0r(&)3 all (ther N#FCsK and FiiG the b((/
*al&e (+ debent&res3b(nds3 (&tstandin0 l(ans and ad*ances. incl&din0 hire>
)&rchase and lease +inance 'ade t(. and de)(sits -ith. s&bsidiaries3 c(')anies
in the sa'e 0r(&). in eBcess (+ 5AI (+ the (-ned +&nds1
16
The re0istrati(n )r(cess in*(l*es s&b'issi(n (+ an a))licati(n by the c(')any in
the )rescribed +(r'at al(n0 -ith the necessary d(c&'ents +(r R#IJs
c(nsiderati(n1 I+ the ban/ is satis+ied that the c(nditi(ns en&'erated in the R#I
Act. 5@9: are +&l+illed. it iss&es a JCerti+icate (+ Re0istrati(nJ t( the c(')any1 Only
th(se N#FCs h(ldin0 a *alid Certi+icate (+ Re0istrati(n can acce)t3h(ld )&blic
de)(sits1 The N#FCs acce)tin0 )&blic de)(sits sh(&ld c(')ly -ith the N(n>
#an/in0 Financial C(')anies Acce)tance (+ "&blic De)(sits FReser*e #an/G
Directi(ns. 5@@=. as iss&ed by the ban/1 S('e (+ the i')(rtant re0&lati(ns
relatin0 t( acce)tance (+ de)(sits by the N#FCs areD>
• They are all(-ed t( acce)t3rene- )&blic de)(sits +(r a 'ini'&' )eri(d (+
58 '(nths and 'aBi'&' )eri(d (+ is any +inancial instit&ti(n -h(se )rinci)al
b&siness is that (+ leasin0 e,&i)'entEs (r +inancin0 (+ s&ch an acti*ity1
#1 Hire>)&rchase C(')anyD > is any +inancial inter'ediary -h(se )rinci)al
b&siness relates t( hire )&rchase transacti(ns (r +inancin0 (+ s&ch
transacti(ns1
C1 L(an c(')anyD> 'eans any +inancial instit&ti(n -h(se )rinci)al b&siness
is that (+ )r(*idin0 +inance. -hether by 'a/in0 l(ans (r ad*ances (r
(ther-ise +(r any acti*ity (ther than its (-n1
D1 In*est'ent C(')anyD > is any +inancial inter'ediary -h(se )rinci)al
b&siness is that (+ b&yin0 and sellin0 (+ sec&rities1
N(-. these N#FCs ha*e been reclassi+ied int( three cate0(riesD
• Asset Finance C(')any FAFCG
• In*est'ent C(')any FICG
• L(an C(')any FLCG
Under this classi+icati(n. JAFCJ is de+ined as a +inancial instit&ti(n -h(se )rinci)al
b&siness is that (+ +inancin0 the )hysical assets -hich s&))(rt *ari(&s
)r(d&cti*e3ec(n('ic acti*ities in the c(&ntry1
18
1%2 0OME *OAN
A h('e '(rt0a0e is (ne (+ the '(st c(''(n +(r's (+ debt. and it is als( (ne (+
the '(st ad*ised1 M(rt0a0e l(ans c('e -ith l(-er interest rates than al'(st any
(ther /ind (+ debt an indi*id&al c(ns&'er can +ind1 Real estate is c&rrently (ne (+
the +astest 0r(-in0 sect(rs in India1 #an/in0 sect(r is als( re0isterin0 )r(+itable
b&siness since the last +e- decades. -ith the 0r(-th (+ real estate1 Ma4(rity (+
the ban/s are als( (++erin0 easy h('e l(ans at attracti*e rates t( their
c&st('ers1 N(- that 0ettin0 a h('e l(an is s( easy. it see's e*ery(ne can +&l+ill
his 3 her l(n0 cherished drea's (+ )&rchasin0 lands. b&ildin0 their h(&ses and
eB)andin0 their h('es1 Di++erent ty)es (+ h('e l(ans are tail(red t( s&it the
heter(0ene(&s re,&ire'ents (+ the c&st('ers1 The descri)ti(n (+ s('e (+ the
'(st c(''(n ty)es (+ h('e l(ans is 0i*en bel(-1
Ty)es O+ H('e L(ans
• H('e "&rchase L(ans%
• H('e I')r(*e'ent L(ans
• H('e C(nstr&cti(n L(an
• H('e EBtensi(n L(an(%
• H('e C(n*ersi(n L(an
• Land "&rchase L(ans
• #rid0e L(ans
• #alance Trans+er L(ans
19
1%3 IN!"SR2 SR"#"RE
The Reser*e #an/ (+ India is entr&sted -ith the res)(nsibility (+ re0&latin0 and
s&)er*isin0 the N(n>#an/in0 Financial C(')anies by *irt&e (+ )(-ers *ested in
Cha)ter III # (+ the Reser*e #an/ (+ India Act. 5@9:1 The re0&lat(ry and
s&)er*is(ry (b4ecti*e is t(D
51 Ens&re healthy 0r(-th (+ the +inancial c(')aniesK
81 Ens&re that these c(')anies +&ncti(n as a )art (+ the +inancial syste' -ithin
the )(licy +ra'e-(r/. in s&ch a 'anner that their eBistence and +&ncti(nin0 d(
n(t lead t( syste'ic aberrati(nsK and that
91 The ,&ality (+ s&r*eillance and s&)er*isi(n eBercised by the #an/ (*er the
N#FCs is s&stained by /ee)in0 )ace -ith the de*el()'ents that ta/e )lace in
this sect(r (+ the +inancial syste'1
20
1%: RO*E IN 'INAN#IA* S2SEM
The Reser*e #an/ (+ India has rec(0ni?ed the need t( intr(d&ce N#FIs
s&))le'ent ban/s in )r(*idin0 +inancial ser*ices t( indi*id&als and +ir's1 They
can )r(*ide c(')etiti(n +(r ban/s in the )r(*isi(n (+ these ser*ices1 hile ban/s
'ay (++er a set (+ +inancial ser*ices as a )ac/a0e deal. N#FIs &nb&ndle these
ser*ices. tail(rin0 their ser*ices t( )artic&lar 0r(&)s1 Additi(nally. indi*id&al
N#FIs 'ay s)eciali?e in a )artic&lar sect(r. 0ainin0 an in+(r'ati(nal ad*anta0e1
#y this &nb&ndlin0. tar0etin0. and s)eciali?in0. N#FIs )r('(te c(')etiti(n -ithin
the +inancial ser*ices ind&stry1
There are di++erent cate0(ries (+ c(')anies
51 L(an c(')anies
81 In*est'ent c(')anies
21
91 Hire )&rchase +inance c(')anies
:1 E,&i)'ent Leasin0 c(')anies
;1 M&t&al #ene+it Financial C(')anies
ban/ +inancial instit&ti(ns can eBacerbate the +ra0ility (+ the +inancial syste'1
hile n(t all N#FIs are li0htly re0&lated. the N#FIs that c(')rise the shad(-
ban/in0 syste' are1 In the r&n &) t( the recent 0l(bal +inancial crisis. instit&ti(ns
s&ch as hed0e +&nds and str&ct&red in*est'ent *ehicles -ere lar0ely (*erl((/ed
by re0&lat(rs. -h( +(c&sed N#FI s&)er*isi(n (n )ensi(n +&nds and ins&rance
c(')anies1 I+ a lar0e share (+ the +inancial syste' is in N#FIs that ()erate
lar0ely &ns&)er*ised by 0(*ern'ent re0&lat(rs and anyb(dy else. it can )&t the
stability (+ the entire syste' at ris/1 ea/nesses in N#FI re0&lati(n can +&el a
credit b&bble and asset (*er)ricin0. +(ll(-ed by asset )rice c(lla)se and l(an
de+a<s1
The 'icr(>+inancin0 sect(r is 4&st be0innin0 t( )ic/ &) )ace and has a s&itable
r(le +(r N#FCs1 R(le in de)(sit '(bili?ati(n and credit eBtensi(n can hardly be
(*er>e')hasi?ed1 Gi*en IndiaJs lar0e &n(r0ani?ed 'ar/ets. there is a h&0e
de'and +(r &nsec&red credit in areas -here ban/s d( n(t ha*e ade,&ate reach1
N#FCs +ill this 0a)1 S)eciali?in0 in +&ndin0 sect(rs -here there is a credit 0a)1
In the )ast decade. N#FCs ha*e )layed an i')(rtant r(le in the eB)ansi(n (+ the
c(ns&'er d&rables. h(&sin0 and trans)(rt sect(rs1
The ind&stry is n(- -itnessin0 a )aradi0' shi+t. as c(')etiti(n is eatin0 int( the
retail +inance s)ace. -hich has been traditi(nally d('inated by N#FCs1 As the
traditi(nal b(&ndaries bet-een di++erent +inancial inter'ediaries bl&r. 'ar/et
)artici)ants are 'er0in0 t( increase their si?e and reach. -hile distrib&tin0 ris/
(*er the lar0e base in an atte')t t( s&r*i*e1
22
1%; '""RE PROSPE#S O' NB'# SE#OR
N#FCs ha*e been )layin0 a *ery i')(rtant r(le b(th +r(' the 'acr( ec(n('ic
"ers)ecti*e and the str&ct&re (+ the Indian +inancial syste'1 N#FCs are the
)er+ect (r e*en better alternati*es t( the c(n*enti(nal #an/s +(r 'eetin0 *ari(&s
+inancial re,&ire'ents (+ a b&siness enter)rise1 They (++er ,&ic/ and e++icient
ser*ices -ith(&t 'a/in0 (ne t( 0( thr(&0h the c(')leB ri0'ar(le (+ c(n*enti(nal
ban/in0 +(r'alities1 H(-e*er t( s&r*i*e and t( c(nstantly 0r(-. N#FCs ha*e t(
+(c&s (n their c(re stren0ths1 -hile i')r(*in0 (n -ea/nesses1 They -ill ha*e t(
be *ery dyna'ic and c(nstantly1 Endea*(r t( search +(r ne- )r(d&cts and
ser*ices in (rder t( s&r*i*e in this e*er c(')etiti*e +inancial 'ar/et1
Since N#FCs ha*e been /e)t (&tside the )&r*ie- (+ SARFAESI Act. a re+(r' in
this area is ,&ite &r0ently needed1 A s&itable le0islati*e a'end'ent eBtendin0
the ()erati(n (+ the said Act t( N#FCs t(( -(&ld 0( a l(n0 -ay in +(rti+yin0 the
23
+aith (+ the in*est(rs and -hich in t&rn -(&ld 0reatly c(ntrib&te t( the 0r(-th (+
this Sect(r1 The c('in0 years -ill be *ery cr&cial +(r N#FCs and (nly th(se -h(
-ill be able t( +ace the challen0e and )r(*e the'sel*es by standin0 the test (+
ti'e -ill s&r*i*e in the l(n0 r&n1
NON3BAN4 INE/RAION AN! S"PERVISOR2 INE/RAION
The ban/in0. sec&rities. and ins&rance 'ar/ets ha*e bec('e increasin0ly
inte0rated. -ith lin/a0es acr(ss the 'ar/ets ra)idly increasin01 In res)(nse. (ne
(+ the '(st n(table de*el()'ents in +inancial sect(r re0&lati(n in the )ast 8A
years has been a shi+t +r(' the traditi(nal sect(r>by>sect(r a))r(ach t(
s&)er*isi(n F-ith se)arate s&)er*is(rs +(r ban/s. sec&rities 'ar/ets. and
ins&rance c(')aniesG t(-ard a 0reater cr(ss>sect(r inte0rati(n (+ +inancial
s&)er*isi(n1 This had an i')(rtant i')act (n the )ractice (+ s&)er*isi(n and
re0&lati(n ar(&nd the 0l(be1
Three br(ad '(dels are bein0 &sed ar(&nd the -(rldD a three>)illar (r “sect(ral%
24
'(del Fban/in0. ins&rance. and sec&ritiesGK a t-(>)illar (r “t-in )ea/% '(del
F)r&dential and b&siness c(nd&ctGK and an inte0rated '(del Fall ty)es (+
s&)er*isi(n &nder (ne r((+G1 One (+ the ar0&ably '(st re'ar/able de*el()'ents
(+ the )ast 5A years. c(n+ir'ed by the (rld #an/Es #an/ Re0&lati(n and
S&)er*isi(n S&r*ey. has been a trend +r(' the three>)illar '(del t(-ard either
the t-(>)illar '(del (r the inte0rated '(del1 In a recent st&dy. Melec/y and
"(d)iera F8A58G eBa'ined the dri*ers (+ s&)er*is(ry str&ct&res +(r )r&dential and
b&siness c(nd&ct s&)er*isi(n (*er the )ast decade in @= c(&ntries. +indin0
a'(n0 (ther thin0s that c(&ntries ad*ancin0 t( a hi0her sta0e (+ ec(n('ic
de*el()'ent tend t( inte0rate their s&)er*is(ry str&ct&res. s'all ()en
ec(n('ies tend t( ()t +(r '(re inte0rated s&)er*is(ry str&ct&res. +inancial
dee)enin0 'a/es c(&ntries inte0rate s&)er*isi(n )r(0ressi*ely '(re. and the
l(bbyin0 )(-er (+ the c(ncentrated and hi0hly )r(+itable ban/in0 sect(r acts as a
ne0ati*e +(rce a0ainst b&siness c(nd&ct inte0rati(n
1%< #"SOMER SAIS'A#ION=
C&st('er satis+acti(n can hel) b&siness t( achie*e a s&stainable c(')etiti*e
ad*anta0e1 It ab(&t &nderstands the -ay a c&st('er +eels a+ter )&rchasin0 a
)r(d&ct (r ser*ice and. in )artic&lar. -hether (r n(t that )r(d&ct (r ser*ice 'et
the c&st('erEs eB)ectati(ns1
C&st('ers )ri'arily +(r' their eB)ectati(ns thr(&0h )ast )&rchasin0
eB)eriences. -(rd>(+>'(&th +r(' +a'ily. +riends and c(llea0&es and in+(r'ati(n
deli*ered thr(&0h 'ar/etin0 acti*ities. s&ch as ad*ertisin0 (r )&blic relati(ns1 I+
25
the c&st('erEs eB)ectati(n isnEt 'et. they -ill be dissatis+ied and itEs *ery li/ely
they -ill tell (thers ab(&t their eB)erience1
902 #"SOMER SAIS'A#ION IS IMPORAN
D(nEt &nderesti'ate the *al&e (+ c&st('er satis+acti(n1 ItEs bec('in0 an
i')(rtant area (+ c(')etiti(n1
A hi0h le*el (+ satis+acti(n can deli*er 'any bene+its. incl&din0D
• *o-alt-= a hi0hly satis+ied c&st('er is a l(yal c&st('er1
• Repeat pur)&a(e= a hi0hly satis+ied c&st('er b&ys '(re )r(d&cts1
• Re$erral(= a hi0hly satis+ied c&st('er tells their +a'ily and +riends ab(&t
the )r(d&ct (r ser*ice1
• Retention= a hi0hly satis+ied c&st('er is less li/ely t( s-itch brands1
• Redu)ed )o(t(= a hi0hly satis+ied c&st('er c(sts less t( ser*e than a
ne- c&st('er1
• Pre,iu, pri)e(= a hi0hly satis+ied c&st('er is -illin0 t( )ay '(re +(r the
)r(d&ct (r ser*ice1
1%> #"SOMER SAIS'A#ION RESEAR#0
Satis+acti(n s&r*eys are an i')(rtant 'eth(d +(r c(llectin0 in+(r'ati(n ab(&t
h(- y(&r c&st('ers thin/ and +eel ab(&t y(&r brand. )r(d&ct (r ser*ice1
A satis+acti(n s&r*ey can hel) y(& t( &nderstand the eB)ectati(ns (+ y(&r
c&st('ers. deter'ine -hether y(&r c&st('ers belie*e y(& are 'eetin0 th(se
26
eB)ectati(ns. identi+y ne- c&st('er re,&ire'ents (r trends in the 'ar/et and
deter'ine -hat areas (+ y(&r b&siness need in*est'ent1
A 0((d c&st('er satis+acti(n s&r*ey -ill als( hel) y(& t( &nderstand the ca&ses
(+ dissatis+acti(n a'(n0 y(&r c&st('ers1 Many b&sinesses syste'atically
'eas&re c&st('er satis+acti(n thr(&0h inde)endent s&r*eys. +eedbac/ +(r's.
'ystery sh())in0 and +(c&s 0r(&)s1 S('e third )arty s&r*eys als( c(')are the
c&st('er satis+acti(n (+ 'a4(r c(')etit(rs. -hich all(-s c(')anies t(
bench'ar/ the'sel*es in their rele*ant sect(r1
Meas&rin0 c&st('er satis+acti(n d(esnEt ha*e t( be eB)ensi*e1 It can be as
si')le as )re)arin0 a sh(rt +eedbac/ +(r' (r c(nd&ctin0 a brie+ tele)h(ne
inter*ie- that as/s the c&st('er t( rate the )r(d&ct (r ser*ice (n a n&'ber (+
criteria1
IN!I#AORS O' #"SOMER SAIS'A#ION
An i')(rtant indicat(r (+ c&st('er satis+acti(n is the c&st('er retenti(n rate1 T(
calc&late (&r c&st('er retenti(n rate. -e ha*e needed t( ca)t&re data ab(&t the
t(tal n&'ber (+ c&st('ers and the n&'ber (+ c&st('ers s-itchin0 brands1 I+ -e
can trac/ this in+(r'ati(n (*er ti'e. -ill be able t( see -hether y(& are
i')r(*in0 y(&r c&st('er retenti(n and satis+acti(n1
1%? 'A#ORS IN'*"EN#IN/ PER#EPION
"erce)ti(n is the )r(cess by -hich an indi*id&al selects. (r0ani?es. and
inter)rets in+(r'ati(n in)&ts t( create a 'eanin0+&l )ict&re the -(rld1 "erce)ti(n
de)ends n(t (nly (n the )hysical sti'&li. b&t als( (n the sti'&liEs relati(n t( the
s&rr(&ndin0 +ield and (n c(nditi(ns -ithin the indi*id&al1 The /ey )(int is that
)erce)ti(n can *ary -idely a'(n0 indi*id&als eB)(sed t( the sa'e reality1 One
27
)ers(n 'i0ht )ercei*e a +ast>tal/in0 sales)ers(n an a00ressi*e and insincere
an(ther. as intelli0ent and hel)+&l1
'a)tor( t&at in$luen)e per)eption=
'a)tor( in t&e per)ei8er
• Attit&des
• M(ti*es
• Interests
• EB)erience
• EB)ectati(ns
'a)tor( in t&e (ituation
• Ti'e
• (r/ settin0
• S(cial settin0
'a)tor( in t&e target
• M(ti(n
28
• Si?e
• #ac/0r(&nd
• "r(Bi'ity
• Si'ilarity
#0APER 2
#OMPAN2 PRO'I*E
29
#OMPAN2 PRO'I*E
Indiab&lls is an Indian c(')any head,&artered in G&r0a(n. -ith its )resence in
the Real Estate. In+rastr&ct&re. Financial Ser*ices. Sec&rities. Retail. M<i)leB
and "(-er sect(rs1 Started +&ncti(nin0 in the st(c/ 'ar/et in 8AAA1 O*er the
years. the c(')any has 0r(-n +r(' stren0th t( stren0th t( bec('e a 'a4(r
)layer in IndiaEs +inancial ser*ices sect(r1
T(day Indiab&lls sec&rities li'ited is leadin0 the ind&stry as they listed NSE.
#SE. and L&Be'b(&r0 st(c/ eBchan0e1 They l(cated (++ices in 'a4(r cities and
)laced hi0hly eB)ert 'an the'1
2%1 ORI/IN O' OR/ANI@AION
In 'iddle (+ 5@@@. Mr1 Sa'eer Gehla&t and his cl(se IIT Delhi +riend Mr1 Ra4i*
Rattan b(&0ht a de+&nct sec&rities c(')any -ith a NSE 'e'bershi) and started
(++erin0 br(/era0e ser*ices later 4(ined by their +riend Mr1Sa&rabh Mittal1 In
Dece'ber 5@@@. the c(')any b&ilt (ne (+ the +irst (nline )lat+(r's in India +(r
(++erin0 internet br(/era0e ser*ices1 Indiab&lls Financial Ser*ices recei*ed
*ent&re ca)ital +&ndin0 +r(' Mr1 La/sh'i Mittal C Mr1 Harish Fabian1
Indiab&lls Gr(&) is (ne (+ the c(&ntryJs leadin0 b&siness h(&ses -ith b&siness
interests in "(-er. Financial Ser*ices. Real Estate and In+rastr&ct&re1
30
2%2 /RO90 AN! !EVE*OPMEN O' 0E #OMPAN2
2%2%1 IME*INE
2EAR 2000301
One (+ indiaEs +irst tradin0 )lat+(r's -as set &) by Indiab&lls +inancial ser*ices
Ltd1 ith the de*el()'ent (+ an in h(&se tea'1
2EAR 2001302
The ser*ice (++ered by Indiab&lls -as increased t( incl&de E,&ity. -h(lesale
debt. M&t&al +&nd. I"O Financin0 and E,&ity Research1
2EAR 200232003
In this )artic&lar year Indiab&lls *ent&red int( Distrib&ti(n and c(''(dities
tradin0 b&siness1
2EAR 200:30;
• Indiab&lls ca'e -ith its initial I"O in Se)te'ber 8AA:1
• Indiab&lls started its c(ns&'er +inance b&siness1
• Indiab&lls entered the indian real estate 'ar/et and bec('e the +irst
c(')any t( brin0 FDI in indian Real Estate1
31
2EAR 200;30<
• M<i>)r(d&ct lendin01
• #ec('e 'ar/et leader in sec&rities br(/era0e ind&stry. -ith ar(&nd 95I
share (nline tradin01
• The -(rldEs lar0est hed0e +&nd. Farall(n ca)ital and its a++iliates
c(''itted 8AAA 'illi(n +(r Indiab&lls1
2EAR 200
The steel Tyc((n Mr1 L N Mittal )r('(ted LNM India inti'ate !ent&re Ltd
ac,&ired =18I sta/e in Indiab&lls credit ser*ice Ltd1
2EAR 200>30?
• Credit ratin0 (+ AA>
• L(an b((/ cr(sses Rs15A.AAA cr1
• EBit +r(' &nsec&red )ers(nal and b&siness l(ans
2EAR 200?30A
• M(rt0a0e +inance +(c&sed 0r(-th )lan1
• H('e l(ans t( )ri'e salaried se0'ents
• In h(&se sales tea' ra') &) t( (*er 5AAA e')l(yees
2EAR 2010311
• Credit ratin0 &)0raded t( AA1
• Retail '(rt0a0e c(nstit&tes 7AI (+ l(an b((/1
32
• #alance sheet cr(sses Rs1 8A.AAA cr1
• R(ED 5718IIndiab&lls
• H(&sin0 Finance is best(-ed -ith )resti0i(&s a-ards “"e()leEs Ch(ice
A-ard +(r M(st "re+erred #rand in H(&sin0 Finance% C “The best
C&st('er ser*ice% at MCHI "RO"ERT$ 8A55
2EAR 2011312
• Credit ratin0 &)0raded t( AAL1
• "AT cr(sses Rs15AAA cr 1
• #alance sheet cr(sses Rs1 9A.AAA cr
• R(ED 851@I1
•
2EAR 2012313
• C(n*ersi(n t( HFC
• IndiaEs 9rd lar0est HFC by l(an assets
• "AT Rs158 !ice Chair'an
Mr Sa&rabh Mittal > !ice Chair'an
Mr Ash(/ Nac/er > Gr(&) "resident
Mr Ash(/ Shar'a > Gr(&) CFO
35
Mr A4it Mittal > Gr(&) Direct(r
Mr G&rbans Sin0h > Gr(&) Direct(r
Mr Te4inder)al Sin0h Mi0lani > Gr(&) CIO
IN!IAB"**S 0O"SIN/ 'INAN#E *IMIE!
Mr Ga0an #an0a >CEO
Mr Ash-ini N&'ar H((da > DMD
IN!IAB"**S REA* ESAE *IMIE!
Mr Narendra Gehla&t > MD
IN!IAB"**S PO9ER *IMIE!
Mr Ra4endra N&'ar S&0andhi > CEO
Mr Meh&l 2(hns(n > "resident
IN!IAB"**S SE#"RIIES *IMIE!
Mr Di*yesh Shah > CEO
Mr !i4ay #abbar > DMD
36
INDIABUL
LS GROUP
Indiabul
ls Power
Indiabul
ls Real
Estate
Indiabull
s
Housing
Finance
Ltd
Indiabul
ls
Securiti
es
2%; B"SINESSES=
IN!IAB"**S /RO"P
Indiab&lls H(&sin0 Finance Ltd1 FI#HFLG. -h(lly (-ned s&bsidiary (+ Indiab&lls
Financial Ser*ices Ltd1 FI#FSLG. is a re0istered HFC by Nati(nal H(&sin0 #an/
FNH#G1 Inc(r)(rated in May 8AA;. I#HFL is a y(&n0 and an enter)risin0 ne-
37
0enerati(n H(&sin0 Finance C(')any -hich has in these sh(rt s)an (+ years
already s)read its )resence thr(&0h 7= branches in ;7 cities acr(ss the c(&ntry1
T(day. Indiab&lls Gr(&) has a net -(rth (+ Rs [email protected] Cr(re C has a str(n0
)resence in i')(rtant sect(rs li/e +inancial ser*ices. )(-er C real estate thr(&0h
inde)endently listed c(')anies and Indiab&lls Gr(&) c(ntin&es its 4(&rney (+
b&ildin0 b&sinesses -ith str(n0 cash +l(-s1
2%;%1 IN!IAB"**S PO9RE=
Indiab&lls "(-er c&rrently de*el()in0 Ther'al "(-er "r(4ects -ith an a00re0ate
ca)acity (+ ;:AA M1 The +irst &nit is eB)ected t( 0( (n strea' in Dec 8A581 The
net -(rth (+ Indiab&lls "(-er is Rs ;.;A7 Cr(re1 The c(')any has a t(tal ca)ital
eB)endit&re (+ Rs 87.;AA Cr(re1 The c(')any has been assi0ned J###J ratin01
2%;%2 IN!IAB"**S 0O"SIN/ 'INAN#E *!% 5IB0'*6D
Indiab&lls H(&sin0 Finance Ltd1 FI#HFLG is IndiaEs 9rd lar0est H(&sin0 Finance
C(')any FHFCG1 The c(')any is re0istered as a H(&sin0 Finance C(')any
FHFCG and is re0&lated by the Nati(nal H(&sin0 #an/ FNH#G1 I#HFL is a leadin0
)r(*ider (+ h('e l(ans. l(an a0ainst )r()erties and c(''ercial *ehicle l(ans1
The c(')any has a l(an asset b((/ (+ (*er Rs1 9:.:AA Cr and has. since
ince)ti(n. disb&rsed (*er Rs1 75.AAA Cr t( (*er ;1; la/h c&st('ers1 ith a net
-(rth (+ (*er Rs1 ;.9AA Cr. IHFL is (ne (+ the best ca)itali?ed c(')anies
a'(n0st its )eer -ith a CRAR (+ 5=1:7I as at March 95st. 8A591 F&rther. the
c(')any is (ne (+ the least le*ered a'(n0st its )eer set -ith a net debt>t(>e,&ity
rati( (+ (nly :1in branches s)read
acr(ss the c(&ntry1 C(')anyEs nati(nal and Internati(nal reach is +&rther
enhanced +r(' tie>&)s -ith $es #an/ and D(ha #an/1
2%;%3 IN!IAB"**S REA* ESAE=
Indiab&lls Real Estate is a'(n0 IndiaJs t() Real Estate c(')anies -ith
de*el()'ent )r(4ects s)read acr(ss residential c(')leBes. inte0rated t(-nshi)s.
c(''ercial (++ice c(')leBes. h(tels. 'alls. S)ecial Ec(n('ic O(nes FSEOsG and
in+rastr&ct&re de*el()'ent1 Indiab&lls Real Estate )artnered -ith Farall(n Ca)ital
Mana0e'ent LLC (+ USA t( brin0 the +irst FDI int( real estate in the c(&ntry1 The
c(')any has a net -(rth (+ Rs 7.:A9 Cr(re and has )&rchased )ri'e land.
'(stly in the 'etr(s and (ther Tier 5 cities -(rth Rs :.AAA Cr(re in 0(*ern'ent
a&cti(ns al(ne1 Indiab&lls Real Estate is c&rrently de*el()in0 781=< 'illi(n s,+t
int( )re'i&' ,&ality. hi0h>end c(''ercial. residential and retail s)aces1 The
c(')any has been assi0ned JALJ ratin01
2%;%: IN!IAB"**S SE#"RIIES=
Indiab&lls Sec&rities is (ne (+ IndiaJs leadin0 ca)ital 'ar/ets c(')anies
)r(*idin0 sec&rities br(/in0 and ad*is(ry ser*ices1 Indiab&lls Sec&rities als(
)r(*ides de)(sit(ry ser*ices. e,&ity research ser*ices and I"O distrib&ti(n t( its
clients and (++ers c(''(dities tradin0 thr(&0h a se)arate c(')any1 These
ser*ices are )r(*ided b(th thr(&0h (n>line and (++>line distrib&ti(n channels1
Indiab&lls Sec&rities is a )i(neer (+ (n>line sec&rities tradin0 in India1 Indiab&lls
39
Sec&ritiesE in>h(&se tradin0 )lat+(r' is (ne (+ the +astest and '(st e++icient
tradin0 )lat+(r's in the c(&ntry1 Indiab&lls Sec&rities has been assi0ned the
hi0hest ratin0 #P>5 by CRISIL1
2%< PRO!"# . SERVI#ES=
2%ter' )lannin0. lar0e in*est'ent and
res)(nsibility1
Indiab&lls hel)s y(& achie*e y(&r drea' by )r(*idin0 the best>in>class +inancial
hel) and ser*ices1 hile y(& ta/e this '('ent(&s decisi(n. -e 0&ide t(-ards
e*erythin0 that is best +(r y(&1
As -e &nderstand y(&r drea's and 0(als. -e ens&re that y(& recei*e a sa+e and
sec&re h('e l(an sche'e1 O&r tea's are attenti*e. care+&l and al-ays rece)ti*e
t( y(&r needs and +eedbac/1 Al(n0 -ith the best rates and sche'es +r(' &s.
'<i)le incenti*es (+ ac,&irin0 a h('e l(an 'a/e y(&r drea' h('e a ha))y
reality1
2%si?ed
b&sinesses. "artnershi) +ir's and "ri*ate Ltd (r cl(sely held c(')anies1
2%re0&lated
(r0ani?ati(n res)(nsible +(r re*ie-in0 and acce)tin0 re0istrati(n
42
2% 'INAN#IA* IN'ORAMAION
2%>%1 BA*AN#E S0EE ASSES
T(tal Assets
As at March 95. 8A59 Rs1 [email protected]=Cr1 FUSM 718; bnG
As at March 95. 8A58 Rs1 98.88; Cr1 FUSM ;1@7 bnG
44
!"
#$"
%"
GRAPH 2.1 BALANCE SHEET ASSETS
Loan Boo&
'as( and li)ued
In*est+ents
Ot(er Assets
R Cash. Cash E,&i*alents and In*est'ents in Li,&id Debt Instr&'entsUS M
a'(&nts are c(n*erted based (n the eBchan0e rate (+ US M5 S Rs1 ;:7@I
2%>%2 *OAN BOO4 /RO90
/RAP0 2%2
45
,-.-% ,-!.! ,#%%,
-
/---
#----
#/---
0----
0/---
%----
%/---
,----
1otal Loan Assets 2Rs3 'r4 Loan sold 2In 5receding #0 +ont(s4
• The 0r(-th in the l(an b((/ incl&si*e (+ l(ans s(ld in the )re*i(&s 58
'(nths is 8;I
46
• L(ans a'(&ntin0 t( Rs18.9@71: -ere s(ld d&rin0 they earended Mar95.
8A58
• L(anss(ld F(&tstandin0GD Rs1 9.
TO FIND OUT THE FACTORS INFLUENCING
CUSTOMER SATISFACTION TOWARDS THE
SERVICES PROVIDED BY IBHFL
Research Report submitted to Entrepreneurship Development Institute
of India in partial fulfillment of the requirements for the award of
Post Graduate Diploma in Business Management
Submitted by
Suraj Apagonda Patil
Register No.: 12E!"11#$
under the guidance of
Prof. Meghnathrao V. Belathur
!rofessor
ain %ollege
&angalore
Entrepreneurship Development Institute of India
Ahmedabad
!"#
Annexur
2
DE$%A&A'I()
I hereby declare that the research entitled “TO FIND OUT THE
FACTORS INFLUENCING CUSTOMER SATISFACTION
TOARDS THE SER!ICES "RO!IDED #$ I#HFL% s&b'itted
t( Entre)rene&rshi) De*el()'ent Instit&te (+ India in )artial
+&l+ill'ent (+ the re,&ire'ents +(r the a-ard (+ "GD#M. is a
rec(rd (+ inde)endent research -(r/ carried (&t by 'e &nder
the s&)er*isi(n and 0&idance (+ "r(+1 Me0hnathra( !1 #elath&r.
"r(+ess(r. 2ain C(lle0e. #an0al(re1 This -(r/ has n(t +(r'ed
the basis +(r the a-ard (+ any De0ree and has n(t been
s&b'itted )re*i(&sly t( any (ther C(lle0e3Uni*ersity1
Bangalore
NOVEMBER, 2013 Suraj Apagonda Patil
INRO!"#ION
3
Pro$% Meg&nat&rao V% Belat&ur
"r(+ess(r
2ain C(lle0e
#an0al(re
#ERI'I#AE
I certi+y that this research entitled “TO FIND OUT THE FACTORS
INFLUENCING CUSTOMER SATISFACTION TOARDS THE
SER!ICES "RO!IDED #$ I#HFL% s&b'itted t( Entre)rene&rshi)
De*el()'ent Instit&te (+ India in )artial +&l+ill'ent (+ the
re,&ire'ents +(r the a-ard (+ "GD#M. is a rec(rd (+ inde)endent
research -(r/ carried (&t by Mr1 S&ra4 A)a0(nda "atil &nder 'y
s&)er*isi(n and 0&idance1 This -(r/ has n(t +(r'ed the basis +(r
the a-ard (+ any De0ree and has n(t been s&b'itted )re*i(&sly t(
any (ther C(lle0e3Uni*ersity1
Bangalore Pro$% Meg&nat&rao V% Belat&ur
NOVEMBER, 2013 Re(ear)& Mentor
#ontent(
Page
No%
*i(t o$ a+le( I
*i(t o$ grap&( II
#&apter I Introdu)tion 5 6 57
515 Ind&stry "r(+ile
518 H('e l(an
519 Ind&stry str&ct&re
51: R(le in +inancial syste'
51; F&t&re res)ecti*e t(-ards N#FC sect(r
51< C&st('er satis+acti(n
517 C&st('er satis+acti(n Research
51= Fact(rs in+l&encin0 )erce)ti(n
#&apter II #o,pan- Pro$ile 5= > 9:
815 Ori0in (+ Or0ani?ati(n
818 Gr(-th and de*el()'ent (+ c(')any
819 "resent stat&s (+ c(')any
81: O-nershi)s )attern
81; #&siness
81< "r(d&ct and ser*ices
817 Financial in+(r'ati(n
81= Stren0th (+ I#HFL
81=15 H('e l(an stren0th
81=18 C(r)(rate stren0th
#&apter III Re(ear)& Met&odolog- 9; > :8
915 State'ent (+ the )r(ble'
918 Sc()e (+ the st&dy
919 Ob4ecti*e (+ the st&dy
91: Research 'eth(d(l(0y
91; Data c(llecti(n
91< Li'itati(n (+ the st&dy
4
#&apter
IV
!ata Anal-(i( :5 6 ;=
:15 C&st('er )re+erred +(r +inancial center
:18 "r(+ile (+ (&tline
:19 Gender shared (&t a'(n0 a 0r(&)
:1: C&st('er a-areness re0ardin0 I#HFL
:1; C&st('er )re+erence (n h(&sin0 l(an
:1< C&st('er )erce)ti(n (n I#HFL
:17 S(&rce (+ in+l&ence +(r the selecti(n (+ I#HFL
:1= Re0&lar c&st('er t( I#HFL
:1@ De0ree (+ c&st('er sa+e/ee)in0
:15A C(')any )r(*ides better ser*ices
:155 C&st('er ()ini(n (n -(rd (+ '(&th c(nnecti(n
:158 C&st('er )erce)ti(n (+ interest rate (+ I#HFL
:159 C&st('er eB)ectati(n
:15: $ears (+ c&st('er ass(ciati(n in I#HFL
:15; C&st('er )erce)ti(n (+ the 'ar/et share (+ I#HFL
:15< Ty)e (+ H(&sin0 L(an the c&st('ers ha*e ta/en
#&apter V 'inding( ;= 6 ;@
;15 Findin0s
#&apter
VI
#on)lu(ion . Re)o,,endation(
DG
FiiG N#FCs n(t acce)tin03h(ldin0 )&blic de)(sits FN#FC>NDG
FiiiG C(re in*est'ent c(')anies
11
NON3BAN4IN/ 'INAN#IA* INSI"ION
A n(nban/ +inancial instit&ti(n FN#FIG is interacts -ith ban/s and 0(*ern'ents. a
+inancial instit&ti(n that d(es n(t ha*e a +&ll ban/in0 license and cann(t acce)t
de)(sits +r(' the )&blic1 H(-e*er. N#FIs d( +acilitate alternati*e +inancial
ser*ices. s&ch as in*est'ent ris/ )((lin0. +inancial c(ns<in0. br(/erin0. '(ney
trans'issi(n. and chec/ cashin01 N#FIs are a s(&rce (+ c(ns&'er credit Fal(n0
-ith licensed ban/sG1 EBa')les (+ n(nban/ +inancial instit&ti(ns incl&de
ins&rance +ir's. *ent&re ca)italists. c&rrency eBchan0es. s('e 'icr(l(an
(r0ani?ati(ns. and )a-n sh()s1 These n(n>ban/ +inancial instit&ti(ns )r(*ide
ser*ices that are n(t necessarily s&ited t( ban/s. ser*e as c(')etiti(n t( ban/s.
and s)eciali?e in sect(rs (r 0r(&)s1
Ri(7 pooling in(titution(
Ins&rance c(')anies &nder-rite ec(n('ic ris/s ass(ciated -ith death. illness.
da'a0e t( (r l(ss (+ )r()erty. and (ther ris/ (+ l(ss1 Under this
syste'. ins&rance c(')anies c('e t(0ether t( +(r' a )((l. -hich can )r(*ide
)r(tecti(n t( ins&rance c(')anies a0ainst catastr()hic ris/s s&ch as +l((ds.
earth,&a/es etc1 They )r(*ide a c(ntin0ent )r('ise (+ ec(n('ic )r(tecti(n in
the case (+ l(ss1 There are t-( 'ain ty)es (+ ins&rance c(')aniesD li+e
ins&rance and 0eneral ins&rance1 General ins&rance tends t( be sh(rt>ter'.
-hile li+e ins&rance is a l(n0er c(ntract. endin0 at the death (+ the ins&red1 #(th
12
ty)es (+ ins&rance. li+e and )r()erty. are a*ailable t( all sect(rs (+ the c(''&nity1
#eca&se (+ the nat&re (+ the ins&rance ind&stry Fc(')anies '&st access a
)leth(ra (+ in+(r'ati(n t( assess the ris/ in each indi*id&al caseG. ins&rance
c(')anies en4(y a hi0h le*el (+ in+(r'ati(n e++iciency1
Li+e ins&rance c(')anies ins&re a0ainst ec(n('ic l(ss (+ the ins&redEs
)re'at&re death1 The ins&red -ill )ay a +iBed s&' as an ins&rance )re'i&'
e*ery ter'1 #eca&se the )r(bability (+ death increases -ith a0e -hile )re'i&'s
re'ain c(nstant. the ins&red (*er)ays in the earlier sta0es and &nder)ays in the
later years1 The (*er)ay'ent in the early years (+ the a0ree'ent is the cash
*al&e (+ the ins&rance )(licy1
General ins&rance is +&rther di*ided int( t-( cate0(riesD 'ar/et and s(cial
ins&rance1 S(cial ins&rance is a0ainst the ris/ (+ l(ss (+ inc('e d&e t( s&dden
&ne')l(y'ent. disability. illness. and nat&ral disasters1 #eca&se (+ the
&n)redictability (+ these ris/s. the ease at -hich the ins&red can hide )ertinent
in+(r'ati(n +r(' the ins&rer. and the )resence (+ '(ral ha?ard. )ri*ate ins&rance
c(')anies +re,&ently d( n(t )r(*ide s(cial ins&rance. a 0a) in the ins&rance
ind&stry -hich 0(*ern'ent &s&ally +ills1 S(cial ins&rance is '(re )re*alent in
ind&striali?ed estern s(cieties -here +a'ily net-(r/s and (ther (r0anic s(cial
s&))(rt 0r(&)s are n(t as )re*alent1
Mar/et ins&rance is )ri*ati?ed ins&rance +(r da'a0e (r l(ss (+ )r()erty1 General
ins&rance c(')anies ta/e a sin0le )re'i&' )ay'ent1 In ret&rn. the c(')anies
-ill 'a/e a s)eci+ied )ay'ent c(ntin0ent (n the e*ent that it is bein0 ins&red
a0ainst1 EBa')les incl&de the+t. +ire. da'a0e. nat&ral disaster. etc1
13
#ontra)tual (a8ing( in(titution(
C(ntract&al sa*in0s instit&ti(ns )r(*ide the ())(rt&nity +(r indi*id&als t( in*est in
c(llecti*e in*est'ent *ehicles in a +id&ciary rather than a )rinci)le r(le1
C(ntract&al sa*in0s instit&ti(ns incl&de nati(nal )r(*ident +&nds. li+e ins&rance
c(')anies. )ri*ate )ensi(n +&nds. and +&nded s(cial )ensi(n ins&rance syste's1
They ha*e l(n0>ter' liabilities and stable cash +l(-s and are there+(re ideal
)r(*iders (+ ter' +inance. n(t (nly t( 0(*ern'ent and ind&stry. b&t als( t(
'&nici)al a&th(rities and the h(&sin0 sect(r1 The t-( '(st )()&lar eBa')les (+
c(ntract&al sa*in0s instit&ti(ns are '&t&al +&nds and )ri*ate )ensi(n )lans1
The t-( 'ain ty)es (+ '&t&al +&nds are ()en>end and cl(sed>end +&nds1 O)en>
end +&nds 0enerate ne- in*est'ents by all(-in0 the )&blic b&y ne- shares at
any ti'e1 Shareh(lders can li,&idate their shares by sellin0 the' bac/ t( the
()en>end +&nd at the net asset *al&e1 Cl(sed>end +&nds iss&e a +iBed n&'ber (+
shares in an I"O1 The shareh(lders ca)itali?e (n the *al&e (+ their assets by
sellin0 their shares in a st(c/ eBchan0e1
"ensi(n +&nds are '&t&al +&nds that li'it the in*est(rEs ability t( access their
in*est'ent &ntil a+ter a certain date1 In ret&rn. )ensi(n +&nds are 0ranted lar0e
taB brea/s in (rder t( incenti*i?e the -(r/in0 )&blic t( set aside a )ercenta0e (+
their c&rrent inc('e +(r a later date -hen they are n( l(n0er a'(n0st lab(&r1
/RAP0 1%1
14
L(-er '(rt0a0e )enetrati(n c(')ared t( ad*anced and e'er0in0 ec(n('ies
i')lies h&0e ())(rt&nity +(r 0r(-th1
HM(rt0a0e t( GD" Rati( eB)ected t( i')r(*e t( 58I by F$5;. s&))(rted by
HIncreasin0 Urbani?ati(n
HI')r(*ed A++(rdability
15
1%1%2 NB'# "N!ER /OVERNMEN RE/"*AION
The -(r/in0 and ()erati(ns (+ N#FCs are re0&lated by the Reser*e #an/ (+
India FR#IG -ithin the +ra'e-(r/ (+ the Reser*e #an/ (+ India Act. 5@9: FCha)ter
III #G and the directi(ns iss&ed by it &nder the Act1 As )er the R#I Act. a Jn(n>
ban/in0 +inancial c(')anyJ is de+ined asD>
51 A +inancial instit&ti(n -hich is a c(')any1
81 A n(n>ban/in0 instit&ti(n -hich is a c(')any and -hich has as its )rinci)al
b&siness the recei*in0 (+ de)(sits. &nder any sche'e (r arran0e'ent (r in
any (ther 'anner. (r lendin0 in any 'anner1
91 S&ch (ther n(n>ban/in0 instit&ti(n (r class (+ s&ch instit&ti(ns. as the ban/
'ay. -ith the )re*i(&s a))r(*al (+ the Central G(*ern'ent and by
n(ti+icati(n in the O++icial Ga?ette. s)eci+y1
Under the Act. it is 'andat(ry +(r a N#FC t( 0et itsel+ re0istered -ith the R#I as
a de)(sit ta/in0 c(')any1 This re0istrati(n a&th(ri?es it t( c(nd&ct its b&siness
as an N#FC1 F(r the re0istrati(n -ith the R#I. a c(')any inc(r)(rated &nder
the C(')anies Act. 5@;< and desir(&s (+ c(''encin0 b&siness (+ n(n>ban/in0
+inancial instit&ti(n. sh(&ld ha*e a 'ini'&' net (-ned +&nd FNOFG (+ Rs 8; la/h
Fraised t( Rs 8AA la/h -1e1+ A)ril 85. 5@@@G1 The ter' JNOFJ 'eans. (-ned +&nds
F)aid>&) ca)ital and +ree reser*es. 'in&s acc&'&lated l(sses. de+erred re*en&e
eB)endit&re and (ther intan0ible assetsG less. FiG in*est'ents in shares (+
s&bsidiaries3c(')anies in the sa'e 0r(&)3 all (ther N#FCsK and FiiG the b((/
*al&e (+ debent&res3b(nds3 (&tstandin0 l(ans and ad*ances. incl&din0 hire>
)&rchase and lease +inance 'ade t(. and de)(sits -ith. s&bsidiaries3 c(')anies
in the sa'e 0r(&). in eBcess (+ 5AI (+ the (-ned +&nds1
16
The re0istrati(n )r(cess in*(l*es s&b'issi(n (+ an a))licati(n by the c(')any in
the )rescribed +(r'at al(n0 -ith the necessary d(c&'ents +(r R#IJs
c(nsiderati(n1 I+ the ban/ is satis+ied that the c(nditi(ns en&'erated in the R#I
Act. 5@9: are +&l+illed. it iss&es a JCerti+icate (+ Re0istrati(nJ t( the c(')any1 Only
th(se N#FCs h(ldin0 a *alid Certi+icate (+ Re0istrati(n can acce)t3h(ld )&blic
de)(sits1 The N#FCs acce)tin0 )&blic de)(sits sh(&ld c(')ly -ith the N(n>
#an/in0 Financial C(')anies Acce)tance (+ "&blic De)(sits FReser*e #an/G
Directi(ns. 5@@=. as iss&ed by the ban/1 S('e (+ the i')(rtant re0&lati(ns
relatin0 t( acce)tance (+ de)(sits by the N#FCs areD>
• They are all(-ed t( acce)t3rene- )&blic de)(sits +(r a 'ini'&' )eri(d (+
58 '(nths and 'aBi'&' )eri(d (+ is any +inancial instit&ti(n -h(se )rinci)al
b&siness is that (+ leasin0 e,&i)'entEs (r +inancin0 (+ s&ch an acti*ity1
#1 Hire>)&rchase C(')anyD > is any +inancial inter'ediary -h(se )rinci)al
b&siness relates t( hire )&rchase transacti(ns (r +inancin0 (+ s&ch
transacti(ns1
C1 L(an c(')anyD> 'eans any +inancial instit&ti(n -h(se )rinci)al b&siness
is that (+ )r(*idin0 +inance. -hether by 'a/in0 l(ans (r ad*ances (r
(ther-ise +(r any acti*ity (ther than its (-n1
D1 In*est'ent C(')anyD > is any +inancial inter'ediary -h(se )rinci)al
b&siness is that (+ b&yin0 and sellin0 (+ sec&rities1
N(-. these N#FCs ha*e been reclassi+ied int( three cate0(riesD
• Asset Finance C(')any FAFCG
• In*est'ent C(')any FICG
• L(an C(')any FLCG
Under this classi+icati(n. JAFCJ is de+ined as a +inancial instit&ti(n -h(se )rinci)al
b&siness is that (+ +inancin0 the )hysical assets -hich s&))(rt *ari(&s
)r(d&cti*e3ec(n('ic acti*ities in the c(&ntry1
18
1%2 0OME *OAN
A h('e '(rt0a0e is (ne (+ the '(st c(''(n +(r's (+ debt. and it is als( (ne (+
the '(st ad*ised1 M(rt0a0e l(ans c('e -ith l(-er interest rates than al'(st any
(ther /ind (+ debt an indi*id&al c(ns&'er can +ind1 Real estate is c&rrently (ne (+
the +astest 0r(-in0 sect(rs in India1 #an/in0 sect(r is als( re0isterin0 )r(+itable
b&siness since the last +e- decades. -ith the 0r(-th (+ real estate1 Ma4(rity (+
the ban/s are als( (++erin0 easy h('e l(ans at attracti*e rates t( their
c&st('ers1 N(- that 0ettin0 a h('e l(an is s( easy. it see's e*ery(ne can +&l+ill
his 3 her l(n0 cherished drea's (+ )&rchasin0 lands. b&ildin0 their h(&ses and
eB)andin0 their h('es1 Di++erent ty)es (+ h('e l(ans are tail(red t( s&it the
heter(0ene(&s re,&ire'ents (+ the c&st('ers1 The descri)ti(n (+ s('e (+ the
'(st c(''(n ty)es (+ h('e l(ans is 0i*en bel(-1
Ty)es O+ H('e L(ans
• H('e "&rchase L(ans%
• H('e I')r(*e'ent L(ans
• H('e C(nstr&cti(n L(an
• H('e EBtensi(n L(an(%
• H('e C(n*ersi(n L(an
• Land "&rchase L(ans
• #rid0e L(ans
• #alance Trans+er L(ans
19
1%3 IN!"SR2 SR"#"RE
The Reser*e #an/ (+ India is entr&sted -ith the res)(nsibility (+ re0&latin0 and
s&)er*isin0 the N(n>#an/in0 Financial C(')anies by *irt&e (+ )(-ers *ested in
Cha)ter III # (+ the Reser*e #an/ (+ India Act. 5@9:1 The re0&lat(ry and
s&)er*is(ry (b4ecti*e is t(D
51 Ens&re healthy 0r(-th (+ the +inancial c(')aniesK
81 Ens&re that these c(')anies +&ncti(n as a )art (+ the +inancial syste' -ithin
the )(licy +ra'e-(r/. in s&ch a 'anner that their eBistence and +&ncti(nin0 d(
n(t lead t( syste'ic aberrati(nsK and that
91 The ,&ality (+ s&r*eillance and s&)er*isi(n eBercised by the #an/ (*er the
N#FCs is s&stained by /ee)in0 )ace -ith the de*el()'ents that ta/e )lace in
this sect(r (+ the +inancial syste'1
20
1%: RO*E IN 'INAN#IA* S2SEM
The Reser*e #an/ (+ India has rec(0ni?ed the need t( intr(d&ce N#FIs
s&))le'ent ban/s in )r(*idin0 +inancial ser*ices t( indi*id&als and +ir's1 They
can )r(*ide c(')etiti(n +(r ban/s in the )r(*isi(n (+ these ser*ices1 hile ban/s
'ay (++er a set (+ +inancial ser*ices as a )ac/a0e deal. N#FIs &nb&ndle these
ser*ices. tail(rin0 their ser*ices t( )artic&lar 0r(&)s1 Additi(nally. indi*id&al
N#FIs 'ay s)eciali?e in a )artic&lar sect(r. 0ainin0 an in+(r'ati(nal ad*anta0e1
#y this &nb&ndlin0. tar0etin0. and s)eciali?in0. N#FIs )r('(te c(')etiti(n -ithin
the +inancial ser*ices ind&stry1
There are di++erent cate0(ries (+ c(')anies
51 L(an c(')anies
81 In*est'ent c(')anies
21
91 Hire )&rchase +inance c(')anies
:1 E,&i)'ent Leasin0 c(')anies
;1 M&t&al #ene+it Financial C(')anies
ban/ +inancial instit&ti(ns can eBacerbate the +ra0ility (+ the +inancial syste'1
hile n(t all N#FIs are li0htly re0&lated. the N#FIs that c(')rise the shad(-
ban/in0 syste' are1 In the r&n &) t( the recent 0l(bal +inancial crisis. instit&ti(ns
s&ch as hed0e +&nds and str&ct&red in*est'ent *ehicles -ere lar0ely (*erl((/ed
by re0&lat(rs. -h( +(c&sed N#FI s&)er*isi(n (n )ensi(n +&nds and ins&rance
c(')anies1 I+ a lar0e share (+ the +inancial syste' is in N#FIs that ()erate
lar0ely &ns&)er*ised by 0(*ern'ent re0&lat(rs and anyb(dy else. it can )&t the
stability (+ the entire syste' at ris/1 ea/nesses in N#FI re0&lati(n can +&el a
credit b&bble and asset (*er)ricin0. +(ll(-ed by asset )rice c(lla)se and l(an
de+a<s1
The 'icr(>+inancin0 sect(r is 4&st be0innin0 t( )ic/ &) )ace and has a s&itable
r(le +(r N#FCs1 R(le in de)(sit '(bili?ati(n and credit eBtensi(n can hardly be
(*er>e')hasi?ed1 Gi*en IndiaJs lar0e &n(r0ani?ed 'ar/ets. there is a h&0e
de'and +(r &nsec&red credit in areas -here ban/s d( n(t ha*e ade,&ate reach1
N#FCs +ill this 0a)1 S)eciali?in0 in +&ndin0 sect(rs -here there is a credit 0a)1
In the )ast decade. N#FCs ha*e )layed an i')(rtant r(le in the eB)ansi(n (+ the
c(ns&'er d&rables. h(&sin0 and trans)(rt sect(rs1
The ind&stry is n(- -itnessin0 a )aradi0' shi+t. as c(')etiti(n is eatin0 int( the
retail +inance s)ace. -hich has been traditi(nally d('inated by N#FCs1 As the
traditi(nal b(&ndaries bet-een di++erent +inancial inter'ediaries bl&r. 'ar/et
)artici)ants are 'er0in0 t( increase their si?e and reach. -hile distrib&tin0 ris/
(*er the lar0e base in an atte')t t( s&r*i*e1
22
1%; '""RE PROSPE#S O' NB'# SE#OR
N#FCs ha*e been )layin0 a *ery i')(rtant r(le b(th +r(' the 'acr( ec(n('ic
"ers)ecti*e and the str&ct&re (+ the Indian +inancial syste'1 N#FCs are the
)er+ect (r e*en better alternati*es t( the c(n*enti(nal #an/s +(r 'eetin0 *ari(&s
+inancial re,&ire'ents (+ a b&siness enter)rise1 They (++er ,&ic/ and e++icient
ser*ices -ith(&t 'a/in0 (ne t( 0( thr(&0h the c(')leB ri0'ar(le (+ c(n*enti(nal
ban/in0 +(r'alities1 H(-e*er t( s&r*i*e and t( c(nstantly 0r(-. N#FCs ha*e t(
+(c&s (n their c(re stren0ths1 -hile i')r(*in0 (n -ea/nesses1 They -ill ha*e t(
be *ery dyna'ic and c(nstantly1 Endea*(r t( search +(r ne- )r(d&cts and
ser*ices in (rder t( s&r*i*e in this e*er c(')etiti*e +inancial 'ar/et1
Since N#FCs ha*e been /e)t (&tside the )&r*ie- (+ SARFAESI Act. a re+(r' in
this area is ,&ite &r0ently needed1 A s&itable le0islati*e a'end'ent eBtendin0
the ()erati(n (+ the said Act t( N#FCs t(( -(&ld 0( a l(n0 -ay in +(rti+yin0 the
23
+aith (+ the in*est(rs and -hich in t&rn -(&ld 0reatly c(ntrib&te t( the 0r(-th (+
this Sect(r1 The c('in0 years -ill be *ery cr&cial +(r N#FCs and (nly th(se -h(
-ill be able t( +ace the challen0e and )r(*e the'sel*es by standin0 the test (+
ti'e -ill s&r*i*e in the l(n0 r&n1
NON3BAN4 INE/RAION AN! S"PERVISOR2 INE/RAION
The ban/in0. sec&rities. and ins&rance 'ar/ets ha*e bec('e increasin0ly
inte0rated. -ith lin/a0es acr(ss the 'ar/ets ra)idly increasin01 In res)(nse. (ne
(+ the '(st n(table de*el()'ents in +inancial sect(r re0&lati(n in the )ast 8A
years has been a shi+t +r(' the traditi(nal sect(r>by>sect(r a))r(ach t(
s&)er*isi(n F-ith se)arate s&)er*is(rs +(r ban/s. sec&rities 'ar/ets. and
ins&rance c(')aniesG t(-ard a 0reater cr(ss>sect(r inte0rati(n (+ +inancial
s&)er*isi(n1 This had an i')(rtant i')act (n the )ractice (+ s&)er*isi(n and
re0&lati(n ar(&nd the 0l(be1
Three br(ad '(dels are bein0 &sed ar(&nd the -(rldD a three>)illar (r “sect(ral%
24
'(del Fban/in0. ins&rance. and sec&ritiesGK a t-(>)illar (r “t-in )ea/% '(del
F)r&dential and b&siness c(nd&ctGK and an inte0rated '(del Fall ty)es (+
s&)er*isi(n &nder (ne r((+G1 One (+ the ar0&ably '(st re'ar/able de*el()'ents
(+ the )ast 5A years. c(n+ir'ed by the (rld #an/Es #an/ Re0&lati(n and
S&)er*isi(n S&r*ey. has been a trend +r(' the three>)illar '(del t(-ard either
the t-(>)illar '(del (r the inte0rated '(del1 In a recent st&dy. Melec/y and
"(d)iera F8A58G eBa'ined the dri*ers (+ s&)er*is(ry str&ct&res +(r )r&dential and
b&siness c(nd&ct s&)er*isi(n (*er the )ast decade in @= c(&ntries. +indin0
a'(n0 (ther thin0s that c(&ntries ad*ancin0 t( a hi0her sta0e (+ ec(n('ic
de*el()'ent tend t( inte0rate their s&)er*is(ry str&ct&res. s'all ()en
ec(n('ies tend t( ()t +(r '(re inte0rated s&)er*is(ry str&ct&res. +inancial
dee)enin0 'a/es c(&ntries inte0rate s&)er*isi(n )r(0ressi*ely '(re. and the
l(bbyin0 )(-er (+ the c(ncentrated and hi0hly )r(+itable ban/in0 sect(r acts as a
ne0ati*e +(rce a0ainst b&siness c(nd&ct inte0rati(n
1%< #"SOMER SAIS'A#ION=
C&st('er satis+acti(n can hel) b&siness t( achie*e a s&stainable c(')etiti*e
ad*anta0e1 It ab(&t &nderstands the -ay a c&st('er +eels a+ter )&rchasin0 a
)r(d&ct (r ser*ice and. in )artic&lar. -hether (r n(t that )r(d&ct (r ser*ice 'et
the c&st('erEs eB)ectati(ns1
C&st('ers )ri'arily +(r' their eB)ectati(ns thr(&0h )ast )&rchasin0
eB)eriences. -(rd>(+>'(&th +r(' +a'ily. +riends and c(llea0&es and in+(r'ati(n
deli*ered thr(&0h 'ar/etin0 acti*ities. s&ch as ad*ertisin0 (r )&blic relati(ns1 I+
25
the c&st('erEs eB)ectati(n isnEt 'et. they -ill be dissatis+ied and itEs *ery li/ely
they -ill tell (thers ab(&t their eB)erience1
902 #"SOMER SAIS'A#ION IS IMPORAN
D(nEt &nderesti'ate the *al&e (+ c&st('er satis+acti(n1 ItEs bec('in0 an
i')(rtant area (+ c(')etiti(n1
A hi0h le*el (+ satis+acti(n can deli*er 'any bene+its. incl&din0D
• *o-alt-= a hi0hly satis+ied c&st('er is a l(yal c&st('er1
• Repeat pur)&a(e= a hi0hly satis+ied c&st('er b&ys '(re )r(d&cts1
• Re$erral(= a hi0hly satis+ied c&st('er tells their +a'ily and +riends ab(&t
the )r(d&ct (r ser*ice1
• Retention= a hi0hly satis+ied c&st('er is less li/ely t( s-itch brands1
• Redu)ed )o(t(= a hi0hly satis+ied c&st('er c(sts less t( ser*e than a
ne- c&st('er1
• Pre,iu, pri)e(= a hi0hly satis+ied c&st('er is -illin0 t( )ay '(re +(r the
)r(d&ct (r ser*ice1
1%> #"SOMER SAIS'A#ION RESEAR#0
Satis+acti(n s&r*eys are an i')(rtant 'eth(d +(r c(llectin0 in+(r'ati(n ab(&t
h(- y(&r c&st('ers thin/ and +eel ab(&t y(&r brand. )r(d&ct (r ser*ice1
A satis+acti(n s&r*ey can hel) y(& t( &nderstand the eB)ectati(ns (+ y(&r
c&st('ers. deter'ine -hether y(&r c&st('ers belie*e y(& are 'eetin0 th(se
26
eB)ectati(ns. identi+y ne- c&st('er re,&ire'ents (r trends in the 'ar/et and
deter'ine -hat areas (+ y(&r b&siness need in*est'ent1
A 0((d c&st('er satis+acti(n s&r*ey -ill als( hel) y(& t( &nderstand the ca&ses
(+ dissatis+acti(n a'(n0 y(&r c&st('ers1 Many b&sinesses syste'atically
'eas&re c&st('er satis+acti(n thr(&0h inde)endent s&r*eys. +eedbac/ +(r's.
'ystery sh())in0 and +(c&s 0r(&)s1 S('e third )arty s&r*eys als( c(')are the
c&st('er satis+acti(n (+ 'a4(r c(')etit(rs. -hich all(-s c(')anies t(
bench'ar/ the'sel*es in their rele*ant sect(r1
Meas&rin0 c&st('er satis+acti(n d(esnEt ha*e t( be eB)ensi*e1 It can be as
si')le as )re)arin0 a sh(rt +eedbac/ +(r' (r c(nd&ctin0 a brie+ tele)h(ne
inter*ie- that as/s the c&st('er t( rate the )r(d&ct (r ser*ice (n a n&'ber (+
criteria1
IN!I#AORS O' #"SOMER SAIS'A#ION
An i')(rtant indicat(r (+ c&st('er satis+acti(n is the c&st('er retenti(n rate1 T(
calc&late (&r c&st('er retenti(n rate. -e ha*e needed t( ca)t&re data ab(&t the
t(tal n&'ber (+ c&st('ers and the n&'ber (+ c&st('ers s-itchin0 brands1 I+ -e
can trac/ this in+(r'ati(n (*er ti'e. -ill be able t( see -hether y(& are
i')r(*in0 y(&r c&st('er retenti(n and satis+acti(n1
1%? 'A#ORS IN'*"EN#IN/ PER#EPION
"erce)ti(n is the )r(cess by -hich an indi*id&al selects. (r0ani?es. and
inter)rets in+(r'ati(n in)&ts t( create a 'eanin0+&l )ict&re the -(rld1 "erce)ti(n
de)ends n(t (nly (n the )hysical sti'&li. b&t als( (n the sti'&liEs relati(n t( the
s&rr(&ndin0 +ield and (n c(nditi(ns -ithin the indi*id&al1 The /ey )(int is that
)erce)ti(n can *ary -idely a'(n0 indi*id&als eB)(sed t( the sa'e reality1 One
27
)ers(n 'i0ht )ercei*e a +ast>tal/in0 sales)ers(n an a00ressi*e and insincere
an(ther. as intelli0ent and hel)+&l1
'a)tor( t&at in$luen)e per)eption=
'a)tor( in t&e per)ei8er
• Attit&des
• M(ti*es
• Interests
• EB)erience
• EB)ectati(ns
'a)tor( in t&e (ituation
• Ti'e
• (r/ settin0
• S(cial settin0
'a)tor( in t&e target
• M(ti(n
28
• Si?e
• #ac/0r(&nd
• "r(Bi'ity
• Si'ilarity
#0APER 2
#OMPAN2 PRO'I*E
29
#OMPAN2 PRO'I*E
Indiab&lls is an Indian c(')any head,&artered in G&r0a(n. -ith its )resence in
the Real Estate. In+rastr&ct&re. Financial Ser*ices. Sec&rities. Retail. M<i)leB
and "(-er sect(rs1 Started +&ncti(nin0 in the st(c/ 'ar/et in 8AAA1 O*er the
years. the c(')any has 0r(-n +r(' stren0th t( stren0th t( bec('e a 'a4(r
)layer in IndiaEs +inancial ser*ices sect(r1
T(day Indiab&lls sec&rities li'ited is leadin0 the ind&stry as they listed NSE.
#SE. and L&Be'b(&r0 st(c/ eBchan0e1 They l(cated (++ices in 'a4(r cities and
)laced hi0hly eB)ert 'an the'1
2%1 ORI/IN O' OR/ANI@AION
In 'iddle (+ 5@@@. Mr1 Sa'eer Gehla&t and his cl(se IIT Delhi +riend Mr1 Ra4i*
Rattan b(&0ht a de+&nct sec&rities c(')any -ith a NSE 'e'bershi) and started
(++erin0 br(/era0e ser*ices later 4(ined by their +riend Mr1Sa&rabh Mittal1 In
Dece'ber 5@@@. the c(')any b&ilt (ne (+ the +irst (nline )lat+(r's in India +(r
(++erin0 internet br(/era0e ser*ices1 Indiab&lls Financial Ser*ices recei*ed
*ent&re ca)ital +&ndin0 +r(' Mr1 La/sh'i Mittal C Mr1 Harish Fabian1
Indiab&lls Gr(&) is (ne (+ the c(&ntryJs leadin0 b&siness h(&ses -ith b&siness
interests in "(-er. Financial Ser*ices. Real Estate and In+rastr&ct&re1
30
2%2 /RO90 AN! !EVE*OPMEN O' 0E #OMPAN2
2%2%1 IME*INE
2EAR 2000301
One (+ indiaEs +irst tradin0 )lat+(r's -as set &) by Indiab&lls +inancial ser*ices
Ltd1 ith the de*el()'ent (+ an in h(&se tea'1
2EAR 2001302
The ser*ice (++ered by Indiab&lls -as increased t( incl&de E,&ity. -h(lesale
debt. M&t&al +&nd. I"O Financin0 and E,&ity Research1
2EAR 200232003
In this )artic&lar year Indiab&lls *ent&red int( Distrib&ti(n and c(''(dities
tradin0 b&siness1
2EAR 200:30;
• Indiab&lls ca'e -ith its initial I"O in Se)te'ber 8AA:1
• Indiab&lls started its c(ns&'er +inance b&siness1
• Indiab&lls entered the indian real estate 'ar/et and bec('e the +irst
c(')any t( brin0 FDI in indian Real Estate1
31
2EAR 200;30<
• M<i>)r(d&ct lendin01
• #ec('e 'ar/et leader in sec&rities br(/era0e ind&stry. -ith ar(&nd 95I
share (nline tradin01
• The -(rldEs lar0est hed0e +&nd. Farall(n ca)ital and its a++iliates
c(''itted 8AAA 'illi(n +(r Indiab&lls1
2EAR 200
The steel Tyc((n Mr1 L N Mittal )r('(ted LNM India inti'ate !ent&re Ltd
ac,&ired =18I sta/e in Indiab&lls credit ser*ice Ltd1
2EAR 200>30?
• Credit ratin0 (+ AA>
• L(an b((/ cr(sses Rs15A.AAA cr1
• EBit +r(' &nsec&red )ers(nal and b&siness l(ans
2EAR 200?30A
• M(rt0a0e +inance +(c&sed 0r(-th )lan1
• H('e l(ans t( )ri'e salaried se0'ents
• In h(&se sales tea' ra') &) t( (*er 5AAA e')l(yees
2EAR 2010311
• Credit ratin0 &)0raded t( AA1
• Retail '(rt0a0e c(nstit&tes 7AI (+ l(an b((/1
32
• #alance sheet cr(sses Rs1 8A.AAA cr1
• R(ED 5718IIndiab&lls
• H(&sin0 Finance is best(-ed -ith )resti0i(&s a-ards “"e()leEs Ch(ice
A-ard +(r M(st "re+erred #rand in H(&sin0 Finance% C “The best
C&st('er ser*ice% at MCHI "RO"ERT$ 8A55
2EAR 2011312
• Credit ratin0 &)0raded t( AAL1
• "AT cr(sses Rs15AAA cr 1
• #alance sheet cr(sses Rs1 9A.AAA cr
• R(ED 851@I1
•
2EAR 2012313
• C(n*ersi(n t( HFC
• IndiaEs 9rd lar0est HFC by l(an assets
• "AT Rs158 !ice Chair'an
Mr Sa&rabh Mittal > !ice Chair'an
Mr Ash(/ Nac/er > Gr(&) "resident
Mr Ash(/ Shar'a > Gr(&) CFO
35
Mr A4it Mittal > Gr(&) Direct(r
Mr G&rbans Sin0h > Gr(&) Direct(r
Mr Te4inder)al Sin0h Mi0lani > Gr(&) CIO
IN!IAB"**S 0O"SIN/ 'INAN#E *IMIE!
Mr Ga0an #an0a >CEO
Mr Ash-ini N&'ar H((da > DMD
IN!IAB"**S REA* ESAE *IMIE!
Mr Narendra Gehla&t > MD
IN!IAB"**S PO9ER *IMIE!
Mr Ra4endra N&'ar S&0andhi > CEO
Mr Meh&l 2(hns(n > "resident
IN!IAB"**S SE#"RIIES *IMIE!
Mr Di*yesh Shah > CEO
Mr !i4ay #abbar > DMD
36
INDIABUL
LS GROUP
Indiabul
ls Power
Indiabul
ls Real
Estate
Indiabull
s
Housing
Finance
Ltd
Indiabul
ls
Securiti
es
2%; B"SINESSES=
IN!IAB"**S /RO"P
Indiab&lls H(&sin0 Finance Ltd1 FI#HFLG. -h(lly (-ned s&bsidiary (+ Indiab&lls
Financial Ser*ices Ltd1 FI#FSLG. is a re0istered HFC by Nati(nal H(&sin0 #an/
FNH#G1 Inc(r)(rated in May 8AA;. I#HFL is a y(&n0 and an enter)risin0 ne-
37
0enerati(n H(&sin0 Finance C(')any -hich has in these sh(rt s)an (+ years
already s)read its )resence thr(&0h 7= branches in ;7 cities acr(ss the c(&ntry1
T(day. Indiab&lls Gr(&) has a net -(rth (+ Rs [email protected] Cr(re C has a str(n0
)resence in i')(rtant sect(rs li/e +inancial ser*ices. )(-er C real estate thr(&0h
inde)endently listed c(')anies and Indiab&lls Gr(&) c(ntin&es its 4(&rney (+
b&ildin0 b&sinesses -ith str(n0 cash +l(-s1
2%;%1 IN!IAB"**S PO9RE=
Indiab&lls "(-er c&rrently de*el()in0 Ther'al "(-er "r(4ects -ith an a00re0ate
ca)acity (+ ;:AA M1 The +irst &nit is eB)ected t( 0( (n strea' in Dec 8A581 The
net -(rth (+ Indiab&lls "(-er is Rs ;.;A7 Cr(re1 The c(')any has a t(tal ca)ital
eB)endit&re (+ Rs 87.;AA Cr(re1 The c(')any has been assi0ned J###J ratin01
2%;%2 IN!IAB"**S 0O"SIN/ 'INAN#E *!% 5IB0'*6D
Indiab&lls H(&sin0 Finance Ltd1 FI#HFLG is IndiaEs 9rd lar0est H(&sin0 Finance
C(')any FHFCG1 The c(')any is re0istered as a H(&sin0 Finance C(')any
FHFCG and is re0&lated by the Nati(nal H(&sin0 #an/ FNH#G1 I#HFL is a leadin0
)r(*ider (+ h('e l(ans. l(an a0ainst )r()erties and c(''ercial *ehicle l(ans1
The c(')any has a l(an asset b((/ (+ (*er Rs1 9:.:AA Cr and has. since
ince)ti(n. disb&rsed (*er Rs1 75.AAA Cr t( (*er ;1; la/h c&st('ers1 ith a net
-(rth (+ (*er Rs1 ;.9AA Cr. IHFL is (ne (+ the best ca)itali?ed c(')anies
a'(n0st its )eer -ith a CRAR (+ 5=1:7I as at March 95st. 8A591 F&rther. the
c(')any is (ne (+ the least le*ered a'(n0st its )eer set -ith a net debt>t(>e,&ity
rati( (+ (nly :1in branches s)read
acr(ss the c(&ntry1 C(')anyEs nati(nal and Internati(nal reach is +&rther
enhanced +r(' tie>&)s -ith $es #an/ and D(ha #an/1
2%;%3 IN!IAB"**S REA* ESAE=
Indiab&lls Real Estate is a'(n0 IndiaJs t() Real Estate c(')anies -ith
de*el()'ent )r(4ects s)read acr(ss residential c(')leBes. inte0rated t(-nshi)s.
c(''ercial (++ice c(')leBes. h(tels. 'alls. S)ecial Ec(n('ic O(nes FSEOsG and
in+rastr&ct&re de*el()'ent1 Indiab&lls Real Estate )artnered -ith Farall(n Ca)ital
Mana0e'ent LLC (+ USA t( brin0 the +irst FDI int( real estate in the c(&ntry1 The
c(')any has a net -(rth (+ Rs 7.:A9 Cr(re and has )&rchased )ri'e land.
'(stly in the 'etr(s and (ther Tier 5 cities -(rth Rs :.AAA Cr(re in 0(*ern'ent
a&cti(ns al(ne1 Indiab&lls Real Estate is c&rrently de*el()in0 781=< 'illi(n s,+t
int( )re'i&' ,&ality. hi0h>end c(''ercial. residential and retail s)aces1 The
c(')any has been assi0ned JALJ ratin01
2%;%: IN!IAB"**S SE#"RIIES=
Indiab&lls Sec&rities is (ne (+ IndiaJs leadin0 ca)ital 'ar/ets c(')anies
)r(*idin0 sec&rities br(/in0 and ad*is(ry ser*ices1 Indiab&lls Sec&rities als(
)r(*ides de)(sit(ry ser*ices. e,&ity research ser*ices and I"O distrib&ti(n t( its
clients and (++ers c(''(dities tradin0 thr(&0h a se)arate c(')any1 These
ser*ices are )r(*ided b(th thr(&0h (n>line and (++>line distrib&ti(n channels1
Indiab&lls Sec&rities is a )i(neer (+ (n>line sec&rities tradin0 in India1 Indiab&lls
39
Sec&ritiesE in>h(&se tradin0 )lat+(r' is (ne (+ the +astest and '(st e++icient
tradin0 )lat+(r's in the c(&ntry1 Indiab&lls Sec&rities has been assi0ned the
hi0hest ratin0 #P>5 by CRISIL1
2%< PRO!"# . SERVI#ES=
2%ter' )lannin0. lar0e in*est'ent and
res)(nsibility1
Indiab&lls hel)s y(& achie*e y(&r drea' by )r(*idin0 the best>in>class +inancial
hel) and ser*ices1 hile y(& ta/e this '('ent(&s decisi(n. -e 0&ide t(-ards
e*erythin0 that is best +(r y(&1
As -e &nderstand y(&r drea's and 0(als. -e ens&re that y(& recei*e a sa+e and
sec&re h('e l(an sche'e1 O&r tea's are attenti*e. care+&l and al-ays rece)ti*e
t( y(&r needs and +eedbac/1 Al(n0 -ith the best rates and sche'es +r(' &s.
'<i)le incenti*es (+ ac,&irin0 a h('e l(an 'a/e y(&r drea' h('e a ha))y
reality1
2%si?ed
b&sinesses. "artnershi) +ir's and "ri*ate Ltd (r cl(sely held c(')anies1
2%re0&lated
(r0ani?ati(n res)(nsible +(r re*ie-in0 and acce)tin0 re0istrati(n
42
2% 'INAN#IA* IN'ORAMAION
2%>%1 BA*AN#E S0EE ASSES
T(tal Assets
As at March 95. 8A59 Rs1 [email protected]=Cr1 FUSM 718; bnG
As at March 95. 8A58 Rs1 98.88; Cr1 FUSM ;1@7 bnG
44
!"
#$"
%"
GRAPH 2.1 BALANCE SHEET ASSETS
Loan Boo&
'as( and li)ued
In*est+ents
Ot(er Assets
R Cash. Cash E,&i*alents and In*est'ents in Li,&id Debt Instr&'entsUS M
a'(&nts are c(n*erted based (n the eBchan0e rate (+ US M5 S Rs1 ;:7@I
2%>%2 *OAN BOO4 /RO90
/RAP0 2%2
45
,-.-% ,-!.! ,#%%,
-
/---
#----
#/---
0----
0/---
%----
%/---
,----
1otal Loan Assets 2Rs3 'r4 Loan sold 2In 5receding #0 +ont(s4
• The 0r(-th in the l(an b((/ incl&si*e (+ l(ans s(ld in the )re*i(&s 58
'(nths is 8;I
46
• L(ans a'(&ntin0 t( Rs18.9@71: -ere s(ld d&rin0 they earended Mar95.
8A58
• L(anss(ld F(&tstandin0GD Rs1 9.