Study of Customer Satisfaction for the Loan Product Avaqilable at IIFL
-
Upload
danya-jain -
Category
Documents
-
view
234 -
download
0
Transcript of Study of Customer Satisfaction for the Loan Product Avaqilable at IIFL
-
8/11/2019 Study of Customer Satisfaction for the Loan Product Avaqilable at IIFL
1/70
ER INTERNSHIP PROJECT [SIP] - 201
A PROJECT REPORT
ON
"A study of customer satisfaction for the loan product avaqilable at IIFL"
FOR
"India infoline finance limited"
Submitted to
Marwadi Education Foundation Group of Institutions
In partial fulfilment of requirement of the award for the degree of
Master of Business Administration
Under
Gujarat Technological University
Faculty Guide
Prof.Pradip Mitra
Asst. Professor
Under the Guidance of
Submitted by
Vimmy M. Gangdev
Enrollment No. : 127340592034
MBA Semester III
1
Company Guide
Mr.Naresh rajdev
Branch maneger
-
8/11/2019 Study of Customer Satisfaction for the Loan Product Avaqilable at IIFL
2/70
COLLEGE CERTIFICATE
This is to certify that the Summer Internship Project Work
entitled
"study of customer satisfaction of the loan products available at
IIFL"
submitted to me is carried out by Mr. /Ms. Vimmy m gangdev,
student of MBA Semester III, Enrolment Number 127340592034,
for the fulfilment of MBA degree, under my guidance and
supervision.
This is to best of my knowledge
Dr. S. Chinnam Reddy Prof. Pradip Mitra
Dean Assistant Professor
Faculty of Management Faculty of Management
Date: ______________ Place: Rajkot
2
-
8/11/2019 Study of Customer Satisfaction for the Loan Product Avaqilable at IIFL
3/70
3
-
8/11/2019 Study of Customer Satisfaction for the Loan Product Avaqilable at IIFL
4/70
SUMMER INTERNSHIP PROJECT [SIP] - 2013
Student Declaration
I Vimmy M. Gangdev hereby declare that the report for 'Summer Training Project'
entitled "A study of customer satisfaction of the loan products available at IIFL"
Is a result of my own work and my indebtedness to other work publications, references, if
any, have been duly acknowledged.
Vimmy M
Place: Rajkot Gangdev
Date:
4
-
8/11/2019 Study of Customer Satisfaction for the Loan Product Avaqilable at IIFL
5/70
INDEX
Page
Sr. No. Particulars No.
Part I General Information
1 Industry Overview
1.1 History11
1.2 Growth and Development131
1.3 Performance and other statistical data [latest]
1.4 Market players in the industry
2 Company Overview2.1 History
2.2 Growth and Development
2.3 Performance and other key performing data
2.4 Products/ Service overview
2.5 Departmental overview
2.6 SWOT and/or PESTEL Analysis
Part II Research Work3 Introduction of the study
3.1 Background of the study
3.2 Review of literature
3.3 Statement of problem
3.4 Objectives of the study
3.5 Contribution and learning from the project
4
Research Methodology4.1 Hypothesis [If applicable]
4.2 Research design
5
-
8/11/2019 Study of Customer Satisfaction for the Loan Product Avaqilable at IIFL
6/70
4.3 Sampling Method
4.4 Sampling Size
4.5 Sources of data
4.6 Data collection method
4.7 Data collection instrument
4.8 Model specification/ Data processing
5 Analysis and interpretation of data
6 Results and findings
7 Suggestions and conclusion
8 Limitations of the study55
9 Scope for further research
10 Bibliography [APA Format compulsory]
Annexures
SUMMER INTERNSHIP PROJECT [SIP] - 2013
6
-
8/11/2019 Study of Customer Satisfaction for the Loan Product Avaqilable at IIFL
7/70
List of tables
Table No. Table title Page No.
List of graphs
Graph No. Graph title Page No.
7
-
8/11/2019 Study of Customer Satisfaction for the Loan Product Avaqilable at IIFL
8/70
8
-
8/11/2019 Study of Customer Satisfaction for the Loan Product Avaqilable at IIFL
9/70
Part I General Information
1. INDUSTRY OVERVIEW :
1.1History
In particular, the rapid growth of Non-banking financial company (NBFCs)
especially in the nineties, has led to agradual blurring of dividing lines between
banks and NBFCs, with the exception of the exclusive privilege that commercial
banks exercise in the issuance of cheques. Simplified sanction procedures,
orientation towards customers, attractive rates of return on deposits and flexibility and
timeliness in meeting the credit needs of specified sectors (like equipment leasing
and hire purchase), are some of the factors enhancing the attractiveness of this
sector.
The total regulated deposits1 of NBFCs aggregated Rs.17,390
corer, as at end of March 1994, equivalent to 4.0 % of bank deposits. The quantum
of regulated deposits grew more than three-fold and as at end-March 1997, at
Rs.53,116 corer constituted 7% of bank deposits.
In the year 1998, a new concept of public deposits meaning
deposits received from public including shareholders in the case of public limited
companies and unsecured debentures/ bonds other than those issued to
companies, banks and financial institutions, was introduced for the
Purpose of focused supervision of NBFCs accepting such deposits. The amount of
such public deposits held by NBFCs, which as at end of March 1998 was Rs.23,820
corer, declined to Rs.19,341 corer as at end of March 2000.
9
-
8/11/2019 Study of Customer Satisfaction for the Loan Product Avaqilable at IIFL
10/70
-
8/11/2019 Study of Customer Satisfaction for the Loan Product Avaqilable at IIFL
11/70
1.2 Growth and Development
NBFCs1 in India continue to grow profitably by meeting the credit needs primarily of
self employed borrowers while maintaining reasonable asset quality and prudent level of
leveraging. Understanding borrowers profile and dynamics of borrower segments of such
NBFCs is a prerequisite for the performance evaluation of NBFCs. Although NBFCs cater
to a wide range of segments, there are common characteristics of borrowers across these
segments. A typical borrower (of such NBFCs) needs to be approached to originate a credit
deal (is unlikely to walk into a branch to seek credit, except for Gold loan borrowers), is
more complex to credit assess (as compared to a salaried person) and could require
intensive monitoring and servicing efforts. Given these characteristics, banks particularly
Public Sector Banks find it unattractive to operate in such segments, as they struggle to
maintain good risk adjusted returns from such segments. As over three fourth of the Indian
credit market is served by PSBs, low credit penetration (at around 10%2 as on March 31,
2011) vis. a vis. Deposits (68%) may be a reflection of PSBs inability to cater to such
borrowers. It is critical to be nimble footed, service oriented and extremely cost efficient to
be profitable in the segment. In light of this private sector banks and NBFCs mostly
compete with each other in such segments.
NBFCs-Infrastructure debt funds (IDF) and NBFCs-Micro finance institutions (MFI)were created in FY12 and brought under a separate regulatory framework. NBFCs- Factors
were introduced in Sep 2012.
As on March 31, 2012 the total number of NBFCs registered with RBI stood at 12,385
compared with 12,409 in 2011. The number of deposit taking NBFCs (NBFC-D), including
residuary NBFCs (RNBC), also reduced from 297 at end-March 2011 to 271 as on end-
March 2012.
11
-
8/11/2019 Study of Customer Satisfaction for the Loan Product Avaqilable at IIFL
12/70
The size of total assets of NBFCs grew from Rs 1,169 bn to Rs 1,244 bn as at end-
March 2012. Net owned funds of NBFCs too grew 25% from Rs 180 bn in 2011 to Rs 225
bn at end-March 2012.
Borrowings from banks and FIs accounted for 50% and debentures accounted for 29%
of the total borrowings of NBFCs-D in FY12.Debentures form an important source of funds
for NBFCs-ND-SI.
The financial performance of NBFC-D demonstrated an upsurge, with 19.1% TI
growth and 11.6% operating profit growth, majorly due to 19.2% growth in fund-based
income. Net profit of NBFCs-D also increased marginally by 13.8% to Rs 33 bn in FY12
Total income of NBFCs-ND-SI registered 26% increase to Rs 948 bn, but net profitdeclined 13% to Rs 139 bn in FY12. RoA for the same period also declined to 1.5% from
2.1% in FY11.
As of end-March 2012, 187 of 190 reporting NDFCs-D had CRAR of more than 15%,
whereas 329 out of the 365 NBFCs-ND-SI had CRAR of more than 15%, indicating
availability of capital for further expansion. Only 10% of reporting NBFCs-ND-SI reported
CRAR of less than 15%.
During FY12, gross NPA to total advances of NBFC-D increased from 0.7% in FY11 to
2.1%. At the same time, net NPAs registered an increase of 0.5% of total advances. In case
of NBFC-ND-SI both gross and net NPA ratio increased from 1.72% and 0.69% in FY11 to
2.08% and 1.25% in FY12.
In Dec 2012, the RBI has issued proposed draft guidelines for NBFCs based on the
recommendations of the Usha Thorat Committee. The guidelines proposed that, w.e.f. Apr
1, 2014, captive NBFCs, NBFCs focusing on sensitive sectors and gold loan companies
shall maintain Tier I of 12%. Other NBFCs shall maintain 10% Tier I capital and NBFCs
shall classify an account as NPA, if payment is overdue for 120 days and follow the 90 daynorm after a year later.
12
-
8/11/2019 Study of Customer Satisfaction for the Loan Product Avaqilable at IIFL
13/70
1.3 Performance and other statistical data [latest]:
The region-wise analysis is based on the number of deposit-holding/accepting NBFCs
that reported data to the Reserve Bank for the years ending March 1999 and March 2000
The NBFCs based in the southern region continued to account for a significant share of the
reporting NBFCs in both years although their share fell sharply from 23.7 per cent of total
public deposits at end-March 1999, to 16.4 per cent at end-March 2000. Of the NBFCs
located in the southern region, the major quantum of public deposits was held by the NBFCs
located in Chennai. The deposits of NBFCs located in the western region declined from
14.0 percent at end-March 1999 to 12.6 per cent at end-March 2000. The share of deposits
of the NBFCs based in the northern region to the total
deposits of all NBFCs, recorded an increase from 2.4 %
at March 1999 to 2.7 per cent at March 2000, mainly due to an increase in the share of
public deposits held in New Delhi. The share of deposits in the eastern region increased from
37.7 per cent of total deposits to 49.5 per cent mainly on account of mobilisation of
nonconvertible debentures (NCDs) to the tune of Rs. 1,668 crore by one Government-
owned NBFC based in West Bengal. The public deposits reported by NBFCs in four
metropolitan centres of Mumbai, New Delhi, Kolkata and Chennai accounted for
Rs.14,403 crore (70.5 per cent) and Rs.14,920 crore (77.1% respectively, of the totaldeposits for the years ending March 1999 and March 2000) .
13
-
8/11/2019 Study of Customer Satisfaction for the Loan Product Avaqilable at IIFL
14/70
Table V.3 : Activity-wise Profile of Public Deposits of NBFCs 2.Company Overview:
14
-
8/11/2019 Study of Customer Satisfaction for the Loan Product Avaqilable at IIFL
15/70
Company Name
HDFC
Power Finance Corp.
Reliance Capital
IDFC
Rural Electricity Corp.
Shree Global
1.4 Market players in the industry
MarketCap.(Rs.Billion)*
445.3
150.1
105.2
77.1
67.4
61.5
Shriram Transport Finance 39.7
Bajaj Finserv
Indiabulls
Religare Enterprises
Bajaj Holdings
M&M Financial
LIC Housing Finance
Edelweiss Capital
KGN Industries
15
27.1
25.7
24.5
23.5
22.6
20.1
17.9
17.1
-
8/11/2019 Study of Customer Satisfaction for the Loan Product Avaqilable at IIFL
16/70
Shriram City
IFCI
JM Financial
India Infoline
Centrum Finance
15.8
15.8
15.8
13.1
11.1
16
-
8/11/2019 Study of Customer Satisfaction for the Loan Product Avaqilable at IIFL
17/70
17
-
8/11/2019 Study of Customer Satisfaction for the Loan Product Avaqilable at IIFL
18/70
COMPANY OVERVIEW
2.1. History
Mr. Nirmal Jain (Non-Executive Director)
Mr. Nirmal Jain, aged 45 years, is a non-executive Director of our Company and is one of
the original Directors of our Company. He holds a Bachelors Degree in Commerce from
University of Mumbai. He is a fellow member of the Institute of Chartered Accountants of
India (held the 2nd rank) and also a cost accountant. He holds a Post Graduate Diploma in
Management from Indian Institute of Management, Ahmedabad. He started his career in
1989 with Hindustan Lever Limited, the Indian arm of Unilever, where he handled a variety
of responsibilities, including export and trading in agro- commodities. In 1995 he foundedProbity Research and Services Private Limited (later re-christened India Infoline) Mr. Jain
subsequently launched www.indiainfoline.com in 1999. He is currently the Chairman of India
Infoline Limited, our Promoter.
The IIFL (India Infoline) group, comprising the holding company, India Infoline Ltd (NSE:
INDIAINFO, BSE: 532636) and its subsidiaries, is one of India's premier providers of
financial services.
: IIFL offers advice and execution platform for the entire range of financial services
covering products ranging from Equities and derivatives, Commodities, Wealth
management, Asset management, Insurance, Fixed deposits, Loans, Investment
18
-
8/11/2019 Study of Customer Satisfaction for the Loan Product Avaqilable at IIFL
19/70
Banking, Gold bonds and other small savings instruments.
one of India's leading financial services companies, promoted by 1 st generation
professionals.
Mr. R. Venkataraman (Non-Executive Director)
Mr. R. Venkataraman, aged 45 years, is a non-executive Director of our Company and is
one of the original Directors of our Company. He is a B.Tech in electronics and electrical
communications engineering from Indian Institute of Technology, Kharagpur and holds a
Post Graduate Diploma in Management from Indian Institute of Management, Bangalore.
He has more than 20 years in the financial services sector. He is the Co-Promoter and anExecutive Director of our Promoter. India Infoline Limited. Prior to joining the India Infoline
Board in July 1999, he held senior managerial positions in ICICI Limited, ICICI Securities
Limited, BZW and Taib Capital Corporation Limited. He was also the Assistant Vice
President with G E Capital Services India Limited in
their private equity division.5
IIFL (India Infoline) group, comprising the holding company, India Infoline Ltd (NSE:
INDIAINFO, BSE: 532636) and its subsidiaries, is one of India's premier providers of
financial services.
: IIFL offers advice and execution platform for the entire range of financial services
covering products ranging from Equities and derivatives, Commodities, Wealth
management, Asset management, Insurance, Fixed deposits, Loans, Investment
Banking, Gold bonds and other small savings instruments.
: one of India's leading financial services companies, promoted by 1 st generationprofessionals.
19
-
8/11/2019 Study of Customer Satisfaction for the Loan Product Avaqilable at IIFL
20/70
: services more than a million retail clients.
: operates from over 4000 business location across 900 cities & town in india
: consolidated net worth of about 1750 corers & balance sheet size of 9000 corers.
: support the employment directly & indirectly of over 20000 families.
: Licensed in 8 th countries besides India for asset advisory, equity, etc.
: IIFL has received membership of the Colombo Stock Exchange becoming the first
foreign broker to enter Sri Lanka. IIFL owns and manages the
website,www.indiainfoline.com, which is one of India's leading online destinations forpersonal finance, stock markets, economy and business. IIFL has been awarded the 'Best
Broker, India' by FinanceAsia and the 'Most improved brokerage, India' in the AsiaMoney
polls. India Infoline was also adjudged as 'Fastest Growing Equity Broking House -
Large firms' by Dun & Bradstreet . A forerunner in the field of equity research, IIFL's research
is acknowledged by none other than Forbes as 'Best of the
Web' and ' a must read for investors in Asia' .
: Our research is available not just over the Internet but also on international wireservices like Bloomberg, Thomson First Call and Internet Securities besides others
where it is amongst one of the most read Indian brokers.
IIFL is a listed company with a consolidated group networth of about Rs 1,800 crores.
The income and net profit during FY2010-11 were Rs. 14.7 bn and Rs. 2.1 bn respectively.
The Group has a consistent and uninterrupted track record of profits and dividends
since its listing in 2005.
20
-
8/11/2019 Study of Customer Satisfaction for the Loan Product Avaqilable at IIFL
21/70
: IIFL's Crisil and ICRA Rating for short term is top rated as CRISIL A1+ and ICRA
(A1+) respectively. For long term, IIFL has been rated ICRA(AA-) by ICRA and CRISIL AA-
/Stable by CRISIL indicating high degree of safety for timely servicing of financial obligations.
: IIFL is near you physically - we are present in every nook and cranny of the country,
with over 4,000 business locations across 900 cities in India. You can reach us in a variety
of ways, online, over the phone and through our branches. All our offices are connected with
the corporate office in Mumbai with cutting edge networking technology.
1995 Commenced operations as an Equity Research firm
1997 Launched research products of leading Indian companies, key sectors and the
economy Client
included leading FIIs, banks and companies.
1999 Launched www.indiainfoline.com
2000 Launched online trading through www.5paisa.com Started distribution of life
insurance
2003 Launched proprietary trading platform Trader Terminal for retail customers
2004 Acquired commodities broking license
Launched Portfolio Management Service
2005 Maiden IPO and listed on NSE, BSE
21
-
8/11/2019 Study of Customer Satisfaction for the Loan Product Avaqilable at IIFL
22/70
2006 Acquired membership of DGCX
Commenced the lending business
2007 Commenced institutional equities business under IIFLFormed Singapore subsidiary, IIFL (Asia) Pte Ltd
2008 Launched IIFL Wealth
Transitioned to insurance broking model
2009 Acquired registration for Housing Finance
SEBI in-principle approval for Mutual Fund
Obtained Venture Capital license
2010 Received in-principle approval for membership of the Singapore Stock Exchange
Received membership of the Colombo Stock Exchange
2011 Launched IIFL Mutual Fund.
22
-
8/11/2019 Study of Customer Satisfaction for the Loan Product Avaqilable at IIFL
23/70
2.2 Development and growth:
DCB's loan book grew by 10.4% sequentially, almost in-line with our expectationof 9%. The robust growth was largely driven by Agri & Inclusive Banking segment (35%qoq; a seasonal impact to meet the year-end Priority sector target) followed by Retail(11.9% qoq) and Corporate (9.6% qoq) segments. Bank plans to add 20-30 branchesin FY14 primarily to meet its PSL target (for direct lending) and support CASAmobilization. Strong yoy credit growth momentum (24.6%) was supported by Retail(46%) and Corporate (30.1%) segments. Growth in SME+MSME segment wasdeliberately slowed (6.2% yoy) owing to asset quality issues confronted by thissegment. Within Retail, mortgages continued to be the main growth driver posting12.6% qoq/54.6% yoy growth. Management has guided 23% credit growth for FY14.Deposits grew faster than advances by 10.7% qoq/32% yoy, resulting in declinein Credit/Deposit ratio from 83.4% in FY12 to 78.7% in FY13. Sluggish growth inCASA deposits (4.1% qoq/11.6% yoy) led to decline in CASA ratio by 1.7% qoq and5% yoy. We expect this ratio to improve going forward given the branch expansionplans of the bank. Share of Wholesale TDs increased from 10.6% of total deposits inQ3 FY13 to 11.3% in Q4 FY13. Traction in NRI depositscontinued to remain robust reporting a growth of 14.9% qoq and 69.3% yoy.NIM rose by 14bps qoq to 3.52% largely driven by strong growth in investments
(24.1% qoq/33.4% yoy). Bank is structurally improving upon its priority sector yield
by focusing on direct lending rather than portfolio buyout (relatively lower-
yielding). Both YoA and CoD rose ~10bps sequentially offsetting the resulting
impact on margin. Robust traction in retail lending, structural improvement in priority
sector portfolio and improvement in deposit profile is likely to keep the margin insteady state. Management has guided a NIM of 3-3.25% for FY14.
Asset quality showed remarkable improvement with GNPA ratio declining from 3.8% in
Q3 FY13 to 3.2% in Q4 FY13. This happened mainly on account of significant recovery
and up-gradation Delinquency ratio rose marginally from 1.4% in Q3 FY13 to 1.5% in Q4
FY13. A large part of the delinquencies in FY13 are attributed to SME+MSME segment.
Thereby, bank has become very selective and cautious in SME lending. We expect
asset quality to improve further given the bank's cautious approach in lending and
effective monitoring. PCR stands strong at 85.7%, one of the best in the industry.Non-interest income reported a healthy growth of 14.4% sequentially driven bystrong CEB fee (11.7% qoq) and sale of investments (92.6% qoq). Cost/Income
23
-
8/11/2019 Study of Customer Satisfaction for the Loan Product Avaqilable at IIFL
24/70
ratio improved by 6ppt from 74.6% in FY12 to 68.6% in FY13. Additional opexarising out of new branches will be offset by the improving productivity of the existingbranches and healthy growth in non-interest income. We expect a further improvementin Cost/Income ratio in the coming quarters.
DCB is strongly capitalized with CAR & tier I ratio of 13.6% and 12.6%
respectively, more-than-commensurate to meet its balance sheet expansion plan andBasel III norms. RoA is expected to remain above 1% supported by healthy marginand improvement in operating efficiency. With unabsorbed losses to the tune ofRs2.2bn currently, DCB will not be required to make any tax payments for next 5-6quarters.DCB has consistently exhibited strong performance even in challenging times.Given the healthy margin, improvement in asset quality and operating efficiency,robust PCR, strong capitalization and resulting upward trending RoA, we continueto remain upbeat on our outlook for the bank. Maintain BUY with target price of Rs55.
(Rs mn) Q4 FY13 Q3 FY13 % qoqQ4 FY12 % yoyTotal Interest Income 2,532 2,294 10.4 1,933 31.0
Interest expended (1,717) (1,574) 9.1 (1,363) 26.0
Net Interest Income 815 720 13.2 571 42.9
Other income 331 289 14.4 299 10.6
Total Income 1,146 1,009 13.6 870 31.8
Operating expenses (716) (692) 3.5 (630) 13.5
Provisions (89) (49) 82.8 (66) 34.4
PBT 341 269 27.0 173 97.2
Tax - - - - -
Reported PAT 341 269 27.0 173 97.2
EPS 5.5 4.3 26.9 2.9 89.8
24
-
8/11/2019 Study of Customer Satisfaction for the Loan Product Avaqilable at IIFL
25/70
Key Ratios
Q4 Q3 chg Q4 chgFY13 FY13 qoq FY12 yoy
NIM (%) 3.5 3.4 0.1 3.1 0.4
Yield on Advances (%) 12.8 12.7 0.1 12.9 (0.1)
Cost of Funds (%) 7.8 7.7 0.1 7.6 0.3
CASA (%) 27.2 28.9 (1.7) 32.1 (5.0)
C/D (x) 78.7 78.9 (0.2) 83.4 (4.7)
Non-interest income (%) 40.6 40.2 0.4 52.4 (11.9)
Non-interest in/Int exp (%) 19.3 18.4 0.9 22.0 (2.7)
Cost to Income (%) 62.5 68.5 (6.1) 72.5 (10.0)
Provisions/Avg Advances (%) 0.6 0.3 0.2 0.6 0.0
RoA (%) 1.3 1.1 0.2 0.6 0.7
CAR (%) 13.6 13.7 (0.1) 15.4 (1.8)
Gross NPA (%) 3.2 3.8 (0.6) 4.4 (1.2)
Net NPA (%) 0.8 0.7 0.0 0.6 0.2
Source:Company,IndiaInfolineResearch
25
-
8/11/2019 Study of Customer Satisfaction for the Loan Product Avaqilable at IIFL
26/70
Financial Summary
Y/e 31 Mar (Rs m) FY12 FY13E FY14E FY15E
Total operating income 3,304 4,014 4,788 5,869
yoy growth (%) 9.7 21.5 19.3 22.6
Operating profit (pre-provisions) 838 1,261 1,595 2,133
Net profit 551 1,021 1,228 1,469
yoy growth (%) 157.1 85.3 20.3 19.7
EPS (Rs) 2.3 4.1 4.9 5.9
Adj. BVPS (Rs) 32.3 35.9 40.2 45.6
P/E (x) 19.2 10.8 9.0 7.5
P/BV (x) 1.4 1.2 1.1 1.0
ROE (%) 8.0 11.6 12.2 12.8
ROA (%) 0.7 1.0 1.0 1.0
CAR (%) 15.4 13.6 12.3 11.8
Source: Company, India Infoline Research
26
-
8/11/2019 Study of Customer Satisfaction for the Loan Product Avaqilable at IIFL
27/70
2.4 Products overview
Loans
Lifeinsurance
Other
facilities
27
-
8/11/2019 Study of Customer Satisfaction for the Loan Product Avaqilable at IIFL
28/70
Gold loan
IIFL offers a wide array of secured loan products. Currently, secured loans (mortgage loans,
margin funding, loans against shares) comprise 94% of the loan book. The Company hasdiscontinued its unsecured products. It has robust credit processes and collections mechanism
resulting in overall NPAs of less than 1%. The Company has deployed proprietary loan-processing
software to enable stringent credit checks while ensuring fast application processing. Recently the
company has also launched Loans against Gold. no processing fees
in gold loan, simple documents & loan rates 1%,1.5%,and 2%
Insurance
IIFL entered the insurance distribution business in 2000 as ICICI Prudential Life Insurance
Co. Ltd's corporate agent. Later, it became an Insurance broker in October 2008 in line with its
strategy to have an 'open architecture' model. The Company now distributes products of major
insurance companies through its subsidiary India Infoline Insurance Brokers Ltd. Customers can
choose from a wide bouquet of products from several insurance companies including Max New
York Life Insurance, MetLife, Reliance Life Insurance, Bajaj Allianz Life, Birla Sunlife, Life
Insurance Corporation, Kotak Life Insurance and others.
Home loan
IIFL group has set up India infoline Housing Finance Ltd to offer highly customized facilities of
availing Home loans . Every customer has a specific and unique concern and our home loan
product is customized to provide you solution for your unique concern.
28
-
8/11/2019 Study of Customer Satisfaction for the Loan Product Avaqilable at IIFL
29/70
Home loan Features:
Home loan amount suited to your needs
Home loan tenure upto 20 years
Simplified documentation
Home loan sale deed 130% on documents
Home loan interest rate 13%
You can take minimum of 5 lack & maximum of 10 corer subject to your income eligibility as well
Mortgage loan
IIFL group has set up India infoline Mortgage Finance Ltd to offer highly customized facilities of
availing Mortgage loan.
Features
Residential Mortgage 65% (Valuation) Tenure Maximum 15 years. (14% interest rate)
Commercial Mortgage 55% (Valuation) Tenure Maximum 10 years (15% interest rate)
29
-
8/11/2019 Study of Customer Satisfaction for the Loan Product Avaqilable at IIFL
30/70
2.6 SWOT and/or PESTEL Analysis:
Strength :
1. Wide range of financial products
2. Successful implementation of "Insurance broking" model
3. Online portal's successful branding as "5paisa.com"
4. Have over 2500 offices in India in over 500 cities
5. First Indian brokerage house to get membership of Singapore Exchange
6. IIFL has been awarded the 'Best Broker, India' , 'Most improved brokerage, India' , 'FastestGrowing Equity Broking House'
Weakness:
1. High risk exposure as seen by conservative population
2. Less emphasis on advertising causes lack of brand visibility
Opportuniies:
1. High income Urban families
2. More penetration into the growing cit
Threat:
1. Stringent Economic measures by Government and RBI
2. Entry of foreign finance firms in Indian Market
30
-
8/11/2019 Study of Customer Satisfaction for the Loan Product Avaqilable at IIFL
31/70
31
-
8/11/2019 Study of Customer Satisfaction for the Loan Product Avaqilable at IIFL
32/70
32
-
8/11/2019 Study of Customer Satisfaction for the Loan Product Avaqilable at IIFL
33/70
3.Indroduction of the study:
Research methodology is a way to systematically solve the research problem. It may
be understood as a science of studying how research is done scientifically. In it we study the
various step that are generally adopted by a researcher in studying his research problem
along with the logic behind them. It is necessary for the researcher to know not only the
research methods/techniques but also the methodology.
Researchers not only need to know how to develop certain indices or tests, how to
calculate the mean, the mode, the median or the standard deviation or chi-square, how to
apply particular research techniques, but they also need to know which of these methods or
techniques, are relevant and which are not, and what would they mean and indicate and why.
Researchers also need to understand the assumptions underlying various techniques
and they need to know the criteria by which they can decide that certain techniques and
procedures will be applicable to certain problems and others will not. All this means that it is
necessary for the researcher to design his methodology for his problem as the same may
differ from problem to problem.
3.1 Background of the study:
I have done one research that is s atisfaction level of IIFL's customers. The main
objective of the study is to know the satisfaction level of the customers from bank's
Services.
33
-
8/11/2019 Study of Customer Satisfaction for the Loan Product Avaqilable at IIFL
34/70
For accomplishing the objective of the study researcher needs primary information
From the respondents and for that exploratory research design is suitable.
TITLE:
The title of research project is "consumer satisfaction for loan products available at IIFL"
DEFINITION:
Research is " a careful investigation or inquiry especially through search for new facts in
any branch of knowledge."
"Systematize effort to gain new knowledge.
MEANING:
Research in common parlance refers to a search for knowledge; one can also define research
as a scientific and systematic search for pertinent information on a specific topic. In fact, research
is an art of scientific investigation.
34
-
8/11/2019 Study of Customer Satisfaction for the Loan Product Avaqilable at IIFL
35/70
-
8/11/2019 Study of Customer Satisfaction for the Loan Product Avaqilable at IIFL
36/70
Hazra, Sandip Ghosh, Srivastava, Kailash B L, (2009),
Studied the Impact of Service Quality on Customer Loyalty, Commitment and Trust in
the Indian Financial Sector. This study examined the strength of the association between the
independent variable service quality perception and the dependent variables, namely,
customer loyalty, commitment and trust.
2. Dr. Naveen Kumar & Dr. V.K.Gangal (2011),
Held a study on customer satisfaction in new generation Financial companies and found
that the majority of India's Financial companies are not very diversified in terms of the
products and services they offer. One strategic focus that companies can implement to
remain competitive would be to retain as many customers as possible. International Refereed
Research Journal, Vol. - II, Issue -4, Oct. 2011, pp. 177 - 186.M.
3. Jyoti Agarwal (2012),
Customer satisfaction in Indian banking services (a study in aligarhdistrict)
International Journal of Computing and Business Research (IJCBR) ISSN (Online) : 2229-
6166Volume 3 Issue 1 January 2012, pp. 1-14. Banks must pay attention to potential failure
points and service recovery procedures, which become integral to employees training. In
other words, it amounts to empowering employees to exercise responsibility, judgment and
creativity in responding to customer's problems
36
-
8/11/2019 Study of Customer Satisfaction for the Loan Product Avaqilable at IIFL
37/70
4.Vimi Jham & Kaleem Mohd Khan, (2008),
Conducted a study on Customer Satisfaction in the Indian Banking Sector, among five
Indian banks, aimed at identifying customer satisfaction variables which lead to relationshipbuilding, and developing a conceptual framework of relationship marketing practices in Indian
banks by capturing the perspectives of customers with respect to their satisfaction with
various services. A Study of Nationalized and Private Banks '. Prajnan. 35(4). 390-398
3.3 Objective of study
The first and foremost step of a researcher is to identify the research objective, so that it can
become easy for the researcher to achieve the goal and might solve the research problem
based on the objective.
The purpose of research is to discover answers to questions through the application of
scientific procedures. The main aim of research is to find out the truth which is hidden and
which has not been discovered as yet. Though each research study has its own specific
purpose, we may think of research objectives as falling into a number of following broad
groupings:
1) To do analysis of information about customer satisfaction.
2) To know the stability and potentiality of customer towards bank. 3) To
know the customer attraction towards services.
37
-
8/11/2019 Study of Customer Satisfaction for the Loan Product Avaqilable at IIFL
38/70
38
-
8/11/2019 Study of Customer Satisfaction for the Loan Product Avaqilable at IIFL
39/70
4.1 hypothesis
Type of research
Sampling method
Sample universe
Sample unit
Sample size
Method of data collection
Time period
Sample instruments
Research Methodology
Descriptive research
Simple random sampling
Rajkot
IIFLs (customers)
100 customers and 8 questions
Primary research and secondary research
During training time in between june - july
2013
Annual reports of IIFL and research
questionnaire
39
-
8/11/2019 Study of Customer Satisfaction for the Loan Product Avaqilable at IIFL
40/70
Limitations of study
The market survey was limited to area of Rajkot
Sample size is only 100, which may not represent the overall population.
Lacks of advance scientific techniques for analysis and interpretation.
In such cases respondents were not able to give all information in such cases as much
as possible information was taken.
I can't meet each and every user because of human limitations and other problems
so I have selected some sample.
Time constraint.
: Research Methodology is way to systematic slove problem.it may be understood has a
science of studying how to research done scientifically.
This methodology is that it help in identify the problem, collecting data, analyzing the require
information data and provide alternative solution to the problem. it also help in collecting vital
information that is require by the top management to the assist them for the better decision
making both day to day decision and critical ones. Report is based on primary as well as
secondary data, however primary data collection was given more importance since it is
overhearing.
40
-
8/11/2019 Study of Customer Satisfaction for the Loan Product Avaqilable at IIFL
41/70
Meaning of Research
Research is defined as "a scientific & systematic search for pertinent information on a specific
topic". Research is an art of scientific investigation; Research is systemized effort to gain new
knowledge. the research for knowledge through objective and systematic method of solution to a
problem is a research.
Research Design
Research design is the conceptual structure within. Which research is conducted, it constitutes
The blueprint for the collection, measurement and analysis of data.
As research the design includes an outline what the researcher will do from writing hypothesis
its operational implication to the final analysis of data.
The Research objectives, questionnaire was design.
Data collection
Two types of data collection primary and secondary
Primary Data
Primary data refer to the first and fresh data collection from the field it was collected trough the
questionnaire method. Questionnaire will include MCQ, ranking, and rating type of equation.
41
-
8/11/2019 Study of Customer Satisfaction for the Loan Product Avaqilable at IIFL
42/70
Secondary Data
Secondary data refer to already published information. Secondary data collected from various
sources magazines, newspapers, internet, government and industry.
Research has been done by primary data collection and primary data has been collected by
with various people in Rajkot city. The secondary data has been collected from various
Journals and websites.
Out of total 100 questionnaire distributed only 100 receive back. The questionnaire focus on
investment like insurance, share-market, post-office, real estate, fixed-deposit etc and loan
products like gold loan, home loan, mortgage loan, loans against property.
Data sampling
The target audient for this research includes city people. It was also collected through personal
visits to persons, by formal and informal talks and through filling up the questionnaire prepared. The
data has been analyzed by using mathematical/statistical tools.
Sample units: a decision has to take concerning sampling units before select sample. herehave my sample unit includes the people of city.
Sample size : The sample size of my project is limited to people only.100% people believeFinancial investments but in different categories like 10% people interested in
Real-estate,20% people interested in share-market,35% people interested in
Post Office,25% people interested in insurance and 5% people interested in
42
-
8/11/2019 Study of Customer Satisfaction for the Loan Product Avaqilable at IIFL
43/70
others like Bonds, mutual funds (SIP) etc.
In loans most of the people believe in loans like gold loan, home loan ,mortgage
Loan, loans against property etc. but approx 53% peoples are interested in gold
because gold loan process is very easy, simply documents are required. otherpeople also interested in home loan and mortgage loan .approx 33% people
erected in home loan and approx 14% peoples are interested in mortgage loan
Sampling technique: The selection of respondents was done on the basis of convenienceSampling. In convincing sampling the samples are being elected on
the basis of ease or convenience. The respondents who are easily
Meaning of ResearchResearch is defined as "a scientific & systematic search for pertinent information on a
specific topic" .research is an art of scientific investigation, Research is system effort to
gain new knowledge .the research for knowledge through objective and systematic
method of solution to a problem is a research.
Research DesignResearch design is the conceptual structure within. Which research is cocducted,it
constitutes the blueprint for the collection, measurement and analysis of data.
As research the design includes an outline what the researcher will do from writing
hypothesis its operational implication to the final analysis of data.
The Research objectives, questionnaire was design
43
-
8/11/2019 Study of Customer Satisfaction for the Loan Product Avaqilable at IIFL
44/70
44
-
8/11/2019 Study of Customer Satisfaction for the Loan Product Avaqilable at IIFL
45/70
Data interpretation and Analysis
I have collect data of 100 customers of India Infoline Finance Ltd. for knowing collect
satisfaction level of customers from its services.
1)Are you aware about the Loan products of the IIFL?
Option
Yes
No
Total
about products
Table.1 awareness about loan products
No. of Customers
93
7
100
7
YesNo
93
`
Graph.1 awareness about loan products
Interpretation
From the above graph we can easily understand that most of the people are awareabove graph graph easily understand people
about the loan products of IIFL. In the graph we can show that 93% people knows theproducts products we peoplepeople
productproduct an only 7% out of 100 people are not aware about the loan productt of IIFL.product only people productproduc
45
-
8/11/2019 Study of Customer Satisfaction for the Loan Product Avaqilable at IIFL
46/70
2)Have you taken any loan from IIFL?
Option
Yes
No
Total
Table.2 loan products of IIFL
No.of Customers(in%)
45
55
100
5545 Yes
No
Graph.2 loan products of IIFL
Interpretation
In this graph, how many people have taken any loan from IIFL is been shown.
55 % of the people out of 100 have not taken any kind of loan from IIFL and 45%
of the people have taken loan from IIFl.
46
-
8/11/2019 Study of Customer Satisfaction for the Loan Product Avaqilable at IIFL
47/70
3)If yes then which loan you taken from the IIFL.? IIFL.?
ParticularGold loan
Home loan
Mortgage loan
Table.3 loan taken by the customer loan
In (%)57 32
11
32
11
57
Gold loanHome loanMortgage loan
Graph.3 loan taken by the customer
Interpretation
In this graph which types of loan are provided by the IIFL is been shown.57types loan provided by the been
person have taken gold loan, 32 person have taken home loan and 11 person have
personhave have
taken mortgage loan is been shown in the graphshown graph
47
-
8/11/2019 Study of Customer Satisfaction for the Loan Product Avaqilable at IIFL
48/70
4) Are you satisfied with the interest rate of the loan of the IIFL?satisfied
Option
Yes
No
Total
Table.4 satisfaction level for interest rate
satisfaction
No. Of Customers
27
73
100
27
Yes
No
73
Graph.4 satisfaction level for interest rate
Interpretation
In this graph customers satisfaction level is been shown that how many customersatisfaction level shown that how many
are satisfied with the interest rate of the loan provided by IIFL. Out of 100 people 73%interest rate provided by 100 people
people are not satisfied with the interest rate only 27% are satisfied with the interest ofsatisfied only only interes
the loan given by IIFL.
48
-
8/11/2019 Study of Customer Satisfaction for the Loan Product Avaqilable at IIFL
49/70
5) Are you satisfied with the service or facility of the IIFL?
Table.5 satisfaction level with the service or facility
Option
Yes
No
Total
No.of Customers(in%)
28
72
100
No.of Customers(in%)
28%
Yes
No
72%
Graph.5 satisfaction level with the service or facility
Interpretation
In this graph satisfaction level for the facility or services has been shown that how
many out of 100 people 72% are not satisfied with IIFL's facility and only 28% people
are satisfied
49
-
8/11/2019 Study of Customer Satisfaction for the Loan Product Avaqilable at IIFL
50/70
-
8/11/2019 Study of Customer Satisfaction for the Loan Product Avaqilable at IIFL
51/70
In these graphs who are satisfied they have to give rank according to the given
data
7) If no then why?Table.7 reason for dissatisfaction
Option No. Of Customers
(in%)
Interest rate is high 33
Less amount is provided 30
Duration is not convenient 17
Service is not proper 20
Total 100
2033
Interest rate is high
Less amount isprovided
17
30
Duration is notconvenient
Service is notproper
Graph.7 reason for dissatisfaction
Interpretation51
-
8/11/2019 Study of Customer Satisfaction for the Loan Product Avaqilable at IIFL
52/70
In this graph who so aver is not satisfied they have to give reason why they are
not satisfied with the products of IIFL
8) Are you satisfied with the documentation process for the loan products of IIFL?
Table.8 satisfaction level for documentation process
Option amt (in %)
Yes 28
No 72
Total 100
amt (in %)
28%
Yes
No
72%
Graph.8 satisfaction level for documentation process
Interpretation
In this graph who many people are not satisfied with the documantation process hasbeen shown out of 100 people 72% are not satisfide and 28% are satisfied with it
52
-
8/11/2019 Study of Customer Satisfaction for the Loan Product Avaqilable at IIFL
53/70
-
8/11/2019 Study of Customer Satisfaction for the Loan Product Avaqilable at IIFL
54/70
10) Are you getting the loan statement regularly?
Table.10 loan statement
Option amt
(in %)
Yes 45
NO 55
Total 100
amt (in %)
55%
45%
Yes
N
O
Graph.10 loan statement
Intrepretation
In this graph how many people are getting loan statement ragularly that has beenshown that 55% of the people are not getting and 45% are getting.
54
-
8/11/2019 Study of Customer Satisfaction for the Loan Product Avaqilable at IIFL
55/70
11) Are you getting proper answer/response from the employees of IIFL?
Table.11 getting proper answer/response
Option amt
(in %)
Yes 40
NO 60
Total 100
amt (in %)
40%
Yes
60% NO
Graph.11 getting proper answer/response
Interpretation
In this graph how many people are getting proper answer/response
that has been shown that 60% of the people are not getting and 40% are getting.
55
-
8/11/2019 Study of Customer Satisfaction for the Loan Product Avaqilable at IIFL
56/70
12)Will you refer any loan from IIFL to your relatives?
Table.12 refer any loan from IIFL
Option amt
(in %)
Yes 25
NO 75
Total 100
amt (in %)
25%
Yes
N
O
75%
Graph.12 refer any loan from IIFL
Interpretation
In this graph how many people are refer any loan from IIFL that has been shown that
75% of the people are notrefer and 25% are refer.
56
-
8/11/2019 Study of Customer Satisfaction for the Loan Product Avaqilable at IIFL
57/70
6. Result and findings
This chapter some of the findings from my study of selected IIFL (India infoline)
The strong point of IIFL is its financial strength, amount of gold loan and good
services.
In some of the area like loan, firm is very rigid so, flexibility is needed.
One of the important point is that new client comes through the recommendation
of existing investors and reputation of the company.
The new client must be member of IIFL
In the area of loans & advances, IIFL having a high rate of interest among
nationalize as well as co-operative sector.
The tendency to donate generously to institutions by the board of directors of IIFL
is commendable. Some of institutions to whom huge contributions are given to
V.V.P. engineering college, Satya Sai Seart Hospital, Ashok Gandhi Memorial
Hospital, etc .
Practice of easy availability of office bearers of the Rajkot Nagarik Sahakari Bank
Ltd. For the members, a investor or loans is well adopted. This also serves as the
intelligent agency to keep a watch on the ways and means how the bank advances
are utilized.
57
-
8/11/2019 Study of Customer Satisfaction for the Loan Product Avaqilable at IIFL
58/70
Suggestion
The company should be increases advertisements regarding loans products and
investments products in television.
The company should be provide top to bottom information about IIFL products to
existing customers.
The company should be provide motivational training to all the IIFL employees.
The company should be arranging workshop and seminars. So that they can provide
information to the people and give answers to queries.
The company should be arranging quarterly get to gather for employees.
58
-
8/11/2019 Study of Customer Satisfaction for the Loan Product Avaqilable at IIFL
59/70
Conclusion
Most of the companies are offering loans products and investment products in India still
at growth stage. And there are enough of opportunities for all the financial
Companies which are offering loan products and investment products .According to my
Survey majority peoples are believe in government sector for investment. Like LIC (life
Insurance company), post office .Few peoples believe in private sector for investments
Like ICICI prudential, Birla life insurance, Bajaj insurance etc.coz any time plane may be
Closed in private sector. And half people believe in nationalize banks for take home
Loan mortgage loan etc.coz in banks interest rate is low but documents process is very
Long and Half people believe in finance companies for take loan coz in finance
Company interest rate is very high but document process is short according to my
Survey.
59
-
8/11/2019 Study of Customer Satisfaction for the Loan Product Avaqilable at IIFL
60/70
-
8/11/2019 Study of Customer Satisfaction for the Loan Product Avaqilable at IIFL
61/70
-
8/11/2019 Study of Customer Satisfaction for the Loan Product Avaqilable at IIFL
62/70
Name : ____________________ Date of Birth:______________________
Marital Status: Married Single Occupation : Business Sararied
Contact : ________________________ Email ID :
_______________________
Residence
Location:________________________________________________________
No of Dependent: ___________________ No. Of Earning Member: _____________
Your Income p.a.: ______________ Family Income: ________________
Q.1 How many times in a year you have emergency requirement of money?
0 1 2 3 4 5 6
Q.2 Are you aware about loan products of IIFL?
yes no
Q.3 Have you taken any loan from IIFL?
yes no
62
-
8/11/2019 Study of Customer Satisfaction for the Loan Product Avaqilable at IIFL
63/70
Q.4 If yes then which loan you taken from the IIFL.?
Gold loan
Home loan
Mortgage loan
Q.5 Are you satisfied with the interest rate of the loan of the IIFL?
yes no
Q.6 Are you satisfied with the service or facility of the IIFL?
yes no
Q.7 If yes, Then give rank as per your satisfaction?
Strongly satisfy
Satisfy
Neutral
Dissatisfy
Strongly dissatisfy
63
-
8/11/2019 Study of Customer Satisfaction for the Loan Product Avaqilable at IIFL
64/70
Q.8 If no then why?
Interest rate is high
Less amount is provided
Duration is not convenient
Service is not proper
9) Are you satisfied with the documentation process for the loan products ofIIFL?
yes no
10) Are you getting the loan statement regularly?
yes no
11) Are you getting proper answer/response from the employees of
IIFL?
yes no
12) Will you refer any loan from IIFL to your relatives?
yes no
64
-
8/11/2019 Study of Customer Satisfaction for the Loan Product Avaqilable at IIFL
65/70
65
-
8/11/2019 Study of Customer Satisfaction for the Loan Product Avaqilable at IIFL
66/70
-
8/11/2019 Study of Customer Satisfaction for the Loan Product Avaqilable at IIFL
67/70
67
-
8/11/2019 Study of Customer Satisfaction for the Loan Product Avaqilable at IIFL
68/70
68
-
8/11/2019 Study of Customer Satisfaction for the Loan Product Avaqilable at IIFL
69/70
69
-
8/11/2019 Study of Customer Satisfaction for the Loan Product Avaqilable at IIFL
70/70