PROJECT

ON

“A study of Reverse Mortgage Scheme in India (Case study of ICICI

Bank)”

BY:

ENROLLMENT NO:

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 IN PARTIAL FULFILMENT OF THE REQUIREMENT OF MBA

PROGRAMME OF NMIMS UNIVERSITY DIRCTORATE OF DISTANCE &

ONLINE EDUCATION

ACKNOWLEDGEMENT

In pursuing and completion of my Course Name and other commitments, I undertook the

task of completing my project on “A study of Reverse Mortgage Scheme in India (Case

study of ICICI Bank” To this, I would like to thank and convey my gratitude to the Top

Management who allowed me to conduct my project and gave me their whole hearted

support

I heart warning thanks to all the employees of this company, who helped me in my

project and gave their genuine opinion. Last but not least, I would like to thank my most

affectionate and Beloved Parents and friends without whose blessings and encouragement

this project work would not have been completed.

Name of Student

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 DECLERATION

I hereby declare that this Project Report entitled “A Study of Reverse Mortgage Scheme

in India (Case study of ICICI Bank)” submitted in the partial fulfillment of the

requirement of COURSE NAME of NMIMS University is based on primary &

secondary data found be me in books, magazines and websites & Collected be me in

under guidance of my project guide.

STUDENT NAME

Registration no – No.

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 Contents

S.No. Chapter Description

1 Chapter 1 Introduction

2 Chapter 2 Literature Review

3 Chapter 3 Objective & Scope

4 Chapter 4 Methodology

5 Chapter 5 Data Analysis and Interpretation

6 Chapter 6 Findings

7 Chapter 7 Recommendations

8 Chapter 8 Conclusion

9 Chapter 9 Appendices

10 Chapter 10 Bibliography

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 Chapter:1

Introduction

HISTORY OF BANKING IN INDIA

The principal bank in India, however moderate, was set up in 1786. From 1786 to till

today, the voyage of Indian Banking System can be isolated into three unmistakable

stages. They are as said beneath under:

• Early stage from 1786 to 1969 of Indian Banks.

• Banking division Reforms.

• New period of Indian Banking System with the appearance of Indian.

• Nationalization of Indian Banks and up to 1991 preceding Indian.

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• Financial Company and Banking Sector Reforms after 1991.

The accompanying are the means taken by the Government of India to Regulate Banking

Institutions in the Country:

1. 1949: Enactment of Banking Regulation Act.

2. 1955: Nationalization of State Bank of India.

3. 1959: Nationalization of BOB backups.

4. 1961: Insurance cover reached out to stores.

5. 1969: Nationalization of 14 noteworthy banks.

6. 1971: Creation of credit ensure organization.

7. 1975: Creation of provincial country banks.

8. 1980: Nationalization of seven keeps money with stores more than 200 crores.

After the nationalization of banks, the branches of people in general division bank India

brought to around 800% up in stores and advances took a substantial hop by 11000%.

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Managing an account in the daylight of Government possession gave people in general

verifiable confidence and huge certainty about the maintainability of these foundations.

ICICI BANK

ICICI Bank is India's biggest private area keep money with add up to united resources of

Rs. 9,860.43 billion (US$ 152.0 billion) at March 31, 2017 and benefit after expense of

Rs. 98.01 billion (US$ 1.5 billion) for the year finished March 31, 2017. ICICI Bank as

of now has a system of 4,850 Branches and 14,164 ATM's crosswise over India.

HISTORY

ICICI Bank was initially advanced in 1994 by ICICI Limited, an Indian money related

establishment, and was its entirely claimed auxiliary. ICICI's shareholding in ICICI Bank

was decreased to 46% through an open offering of offers in India in monetary 1998, a

value offering as ADRs recorded on the NYSE in financial 2000, ICICI Bank's obtaining

of Bank of Madura Limited in an all-stock amalgamation in monetary 2001, and auxiliary

market deals by ICICI to institutional speculators in financial 2001 and monetary 2002.

ICICI was shaped in 1955 at the activity of the World Bank, the Government of India and

agents of Indian industry. The main goal was to make an improvement budgetary

establishment for giving medium-term and long haul venture financing to Indian

organizations.

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In the 1990s, ICICI changed its business from an advancement money related foundation

offering just venture back to an expanded budgetary administrations assemble offering a

wide assortment of items and administrations, both straightforwardly and through various

auxiliaries and associates like ICICI Bank. In 1999, ICICI turn into the primary Indian

organization and the main bank or budgetary foundation from non-Japan Asia to be

recorded on the NYSE.

After thought of different corporate organizing options with regards to the developing

aggressive situation in the Indian saving money industry, and the move towards all

inclusive saving money, the administrations of ICICI and ICICI Bank shaped the view

that the merger of ICICI with ICICI Bank would be the ideal vital option for the two

elements, and would make the ideal lawful structure for the ICICI gathering's all

inclusive managing an account system. The merger would upgrade an incentive for ICICI

investors through the combined element's entrance to minimal effort stores, more

prominent open doors for procuring expense based pay and the capacity to take part in

the installments framework and give exchange saving money administrations. The

merger would improve an incentive for ICICI Bank investors through an extensive capital

base and size of tasks, consistent access to ICICI's solid corporate connections developed

more than five decades, section into new business fragments, higher piece of the overall

industry in different business portions, especially charge based administrations, and

access to the tremendous ability pool of ICICI and its auxiliaries.

In October 2001, the Boards of Directors of ICICI and ICICI Bank approved the merger

of ICICI and two of its wholly-owned retail finance subsidiaries, ICICI Personal
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 Financial Services Limited and ICICI Capital Services Limited, with ICICI Bank. The

merger was approved by shareholders of ICICI and ICICI Bank in January 2002, by the

High Court of Gujarat at Ahmedabad in March 2002, and by the High Court of Judicature

at Mumbai and the Reserve Bank of India in April 2002. Consequent to the merger, the

ICICI group's financing and banking operations, both wholesale and retail, have been

integrated in a single entity. ICICI Bank has formulated a Code of Business Conduct and

Ethics for its directors and employees.

AWARDS

 ICICI Bank was selected as the winner in the ‘Service’ category of the MQH Best

Practices Competition organised by IMC Chamber of Commerce & Industry.

 ICICI Bank was declared winner in the ‘Most Innovative ATM Project’ category

in India at The Asset Digital Awards 2017. The awards were organised by The Asset, a

publication headquartered in Hong Kong.

 ICICI Bank was declared the Best Bank in the ‘Fintech Engagement’ category at

the Business Today – KPMG Best Bank Awards 2018. The awards were organised by the

Business Today magazine.

 ICICI Bank won the 'Best Company to Work For' Award in the Banking,

Financial Services and Insurance sector for the second year in a row. The award was

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 organised by the Business Today magazine. The Bank’s overall ranking was four across

sectors. It is also the first time a Bank has entered the Top 5 list in the past 5 years.

 ICICI Bank won the maximum awards at IBA Banking Technology Awards

2018; it was the winner in four categories and the first runner-up in two categories. The

awards were organised by the Indian Banks’ Association. The Bank was declared winner

in following categories: ‘Best Use of Digital and Channels Technology’, ‘Best Payments

Initiative’, Best IT and Cyber Security Risk Initiatives’ and ‘Most Innovative Project

using IT’. ICICI Bank was declared runner-up in following categories: ‘Best Technology

Bank of the Year’ and ‘Best Use of Analytics for Business Outcome’.

 ICICI Bank won three certificates of merit at the National Energy Conservation

Awards 2017 for demonstrating commitment to energy conservation and efficiency at its

offices. The Bank won the certificate of merit in the 'Office Buildings' category for

following buildings: ICICI Bank - Chandivli Tower in Mumbai; ICICI Bank - Empire

Tower in Lower Parel, Mumbai and ICICI Bank - Heritage Tower in Ahmedabad.

 ICICI Bank was declared the winner in India across three categories in the 2018

Euromoney Private Banking and Wealth Management Survey. The Bank was declared

winner in ‘Commercial Banking Capabilities’, ‘Net-worth-specific Services’ and

‘Innovative Technology - Client Experience’ categories. The award was organised by

Euromoney, a global publication headquartered in London.

 ICICI Bank was ranked first among the private sector banks in ET 500, The

Economic Times’ list featuring top 500 Indian companies. The list is prepared based on

aggregate revenue and profits of the companies.

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 ICICI Bank won an award in the ‘Environment Leadership’ category, in the

service sector at the third edition of Frost & Sullivan Project Evaluation and Recognition

Program (PERP) 2017. The bank won the award for its work done to implement various

initiatives to promote energy conservation, water conservation and use of renewable

energy across its offices in India.

 ICICI Bank won two awards at the third edition of the Datacenter Summit

Awards 2017. The bank won the awards in the categories of ‘Design Management’ for

developing its data center infrastructure and ‘Cooling Management’ for implementation

of energy conservation initiatives.

 ICICI Bank won an award in the ‘Smart Data Center’ category at the Data Center

Dynamics (DCD) Global Awards 2017.

 ICICI Bank won ‘The Gold Standard Award for Corporate Communication’

across Asia at the Gold Standard Awards 2017, for the Bank’s communication campaign

during demonetization.

 ICICI Bank won three awards at the Finacle Client Innovation Awards. The bank

won awards in the categories: ‘Emerging Technologies Led Innovation’, ‘API Based

Innovation’ and ‘Channels Innovation’. The bank was also highly commended for the

projects submitted in the category of ‘Product Innovation’.

 ICICI Bank won an award in the ‘Excellence in Innovation’ category at the

Institute of Internal Auditors (IIA) Annual Excellence Awards 2017-2018.

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 ICICI Bank won three certificates of merit in the 'Office Buildings' category at the

National Energy Conservation Awards 2017, for demonstrating commitment to energy

conservation and efficiency at its offices in Mumbai and Ahmedabad.

 ICICI Bank won an award in the ‘Re-Inventing Indian Manufacturing’ category at

CII Manufacturing Summit 2017. The bank won the award for the project titled

‘RAINS’- Robotic Arm In Note Sorting. The application is the first-of-its-kind initiative

using an industrial robot in note sorting.

 ICICI Bank was conferred with the Certificate of Excellence in ‘Corporate

Energy Management’ category at the AEE (Association of Energy Engineers) Western

India Chapter Awards.

 ICICI Bank was awarded a 4 star rating in the ‘Services Sector’ category at

Confederation of Indian Industry (CII) Southern Region - Environment, Health and

Safety (EHS) Excellence Awards 2017.

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 Chapter: 2

Literature Review

Reverse Mortgage in India: The concept of reverse mortgage, although new in India, is

very popular in countries like the United States. Recently, National Housing Bank

(NHB), a subsidiary of the Reserve Bank of India (RBI), released draft norms of reverse

mortgage (the final guidelines are awaited). Following are some of the key features of the

scheme from the draft norms. Reverse Mortgage Loans (RMLs) are to be extended by

Primary Lending Institutions (PLIs) viz. Scheduled Banks and Housing Finance

Companies (HFCs) registered with NHB. The PLIs reserve their discretion to offer

Reverse Mortgage Loans. Prospective borrowers are advised to consult PLIs regarding

the detailed terms of RML as may be applicable to them. 2. Eligible Borrowers:

• Should be Senior Citizen of India above 60 years of age.

• Married couples will be eligible as joint borrowers for financial assistance.

In such a case, the age criteria for the couple would be at the discretion of the PLI,

subject to at least one of them being above 60 years of age. PLIs may put in place

suitable safeguards keeping into view the inherent longevity risk.

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• Should be the owner of a self- acquired, self-occupied residential property (house or

flat) located in India, with clear title indicating the prospective borrower's ownership of

the property. • The residential property should be free from any encumbrances. Baluja

Labs 8 Baluja Labs

• The residual life of the property should be at least 20 years.

• The prospective borrowers should use that residential property as permanent primary

residence. For the purpose of determining that the residential property is the permanent

primary residence of the borrower, the PLIs may rely on documentary evidence, other

sources supplemented by physical inspections. 3. Determination of Eligible Amount of

Loan:

• The amount of loan will depend on market value of residential property, as assessed by

the PLI, age of borrower(s), and prevalent interest rate.

• The table given hereunder may serve as an indicative guide for determining loan

eligibility : Age Loan as proportion of Assessed Value of Property 60 – 65 40% 66 – 70

50% 71 – 75 55% Above 75 60% • The above table is indicative and the PLIs will have

the discretion to determine the eligible quantum of loan reckoning the ‘no negative equity

guarantee' being provided by the PLI. The methodology adopted for determining the

quantum of loan including the detailed tables of calculations, the rate of interest and

assumptions (if any), shall be clearly disclosed to the borrower.

• The PLI may consider ensuring that the equity of the borrower in the residential

property (Equity to Value Ratio - EVR) does not at any time during the tenor of the loan

fall below 10%. Baluja Labs 9 Baluja Labs

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• The PLIs will need to re-value the property mortgaged to them at intervals that may be

fixed by the PLI depending upon the location of the property, its physical state etc. Such

revaluation may be done at least once every five years; the quantum of loan may undergo

revisions based on such re-valuation of property at the discretion of the lender.

Nature of Payment: Any or a combination of the following:

• Periodic payments (monthly, quarterly, half-yearly, annual) to be decided mutually

between the PLI and the borrower upfront

• Lump-sum payments in one or more trenches

• Committed Line of Credit, with an availability period agreed upon mutually, to be

drawn down by the borrower Lump-sum payments may be made conditional and limited

to special requirements such as medical exigencies, home improvement, maintenance,

up-gradation, renovation, extension of residential property etc. The PLIs may be selective

in considering lump-sum payments option and may frame their internal policy guidelines,

particularly the eligibility and end-use criteria. However, these conditions shall be fully

disclosed to potential borrowers upfront. It is important that nature of payments be

decided in advance as part of the RML covenants. PLI at their discretion may consider

providing for options to the borrower to change. 5. Eligible End use of funds The loan

amount can be used for the following purposes:

• Up gradation, renovation and extension of residential property. Baluja Labs 10 Baluja

Labs

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• For uses associated with home improvement, maintenance/insurance of residential

property

• Medical, emergency expenditure for maintenance of family

• For supplementing pension/other income

• Repayment of an existing loan taken for the residential property to be mortgaged

• Meeting any other genuine need Use of RML for speculative, trading and business

purposes shall not be permitted 6. Period of Loan: Maximum 15 years. Interest Rate: The

interest rate (including the periodic rest) to be charged on the RML to be extended to the

borrower(s) may be fixed by PLI in the usual manner based on risk perception, the loan

pricing policy etc. and specified to the prospective borrowers. Fixed and floating rate of

interest may be offered by the PLIs subject to disclosure of the terms and conditions in a

transparent manner, upfront to the borrower. 8. Security:

• The RML shall be secured by way of mortgage of residential property, in a suitable

form, in favour of PLI.

• Commercial property will not be eligible for RML. 9. Valuation of Residential

Property: • The residential property should comply with the local residential land-use and

building bye laws stipulated by local authorities, with duly approved lay-out and building

plans. • The PLI shall determine the Market Value of the residential property through

their external approved valuer(s). In-house professional values may also be used subject

to adequate disclosure of the methodology. Baluja Labs 11 Baluja Labs • The valuation

of the residential property is required to be done at such frequency and intervals as

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decided by the PLI, which in any case shall be at least once every five years. The

methodology of the revaluation process and the frequency/schedule of such revaluations

shall be clearly specified to the borrowers upfront. • PLIs are advised not to reckon

expected future increase in property value in determining the amount of RML. Should the

PLIs do so in their best commercial judgment, they may do so under a well-defined

Policy approved by their Board and based on professional advice regarding property

prices.

Provision for Right to Rescission: As a customer-friendly gesture and in keeping with

international best practices, after the documents have been executed and loan transaction

finalized, Senior Citizen borrowers may be given up to three business days to cancel the

transaction, the “right of rescission,”. If the loan amount has been disbursed, the entire

loan amount will need to be repaid by the Senior Citizen borrower within this three-day

period. However, interest for the period may be waived at the discretion of the PLI.

Loan Disbursement by Lender to Borrower:

• The PLI will pay all loan proceeds directly to the borrower, except in cases pertaining to

retirement of existing debt, payments to contractor(s) for the repairs of borrower's

property, or payment of property taxes or hazard insurance premiums from the borrower's

account set aside for the purpose.

• In case the residential property is already mortgaged to any other institution, the PLI

may, at its discretion, consider permitting use of part proceeds of RML to prepay/repay

the existing housing loan. The loan amount will be paid directly to Baluja Labs 12 Baluja

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Labs that institution to the extent of the loan outstanding with that institution with a view

to release the mortgage.

• Periodicity: The loan will be extended as regular monthly, quarterly, half-yearly or

annual periodic cash advances or as a line of credit to be drawn down in time of need or

in lump sum.

• The PLI will have the discretion to decide the mode of payment of the loan including

fixation of loan tenor, depending on the state and market value of the property, age of the

borrower and other factors. The rationale behind the decision of mode of payment and

fixation of the loan tenor shall be clearly disclosed to the borrowers.

Closing: The PLIs will provide in writing, a fair and complete package of reverse

mortgage loan material and specimen documents, covering inter-alia, the benefits and

obligations of the product. They may also consider making available a tool kit to

illustrate the potential effect of future house values, interest rates and the capitalization of

interest on the loan. The closing costs may include the customary and reasonable fees and

charges that may be collected by the PLIs from the borrower. The cost for any item

charged to the borrower shall not normally exceed the cost paid by the lender or charged

to the lender by the provider of such service(s). Such items may include:

• Origination, Appraisal and Inspection Fees. The borrower may be charged prorata

origination, appraisal and inspection fees by the PLI /appraiser.

• Verification Charges of external firms

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• Title Examination Fees • Legal Charges/ Fees Baluja Labs 13 Baluja Labs • Stamp Duty

and Registration Charges

• Property Survey and Valuation charges A detailed schedule of all such costs will clearly

be specified and provided to the prospective borrowers upfront by the PLIs.

Settlement of Loan • The loan shall become due and payable only when the last surviving

borrower dies or would like to sell the home, or permanently moves out of the home for

aged care to an institution or to relatives. Typically, a "permanent move" may generally

mean that neither the borrower nor any other co-borrower has lived in the house

continuously for one year or do not intend to live continuously. PLIs may obtain such

documentary evidence as may be deemed appropriate for the purpose.

• Settlement of loan along with accumulated interest is to be met by the proceeds received

out of Sale of Residential Property.

• The borrower(s) or his/her/their estate shall be provided with the first right to settle the

loan along with accumulated interest, without sale of property.

• A reasonable amount of time, say up to 2 months may be provided when RML

repayment is triggered, for house to be sold.

• The balance surplus (if any) remaining after settlement of the loan with accrued interest,

shall be passed on to the estate of the borrower. 14. Prepayment of Loan by Borrower(s)

• The borrower(s) will have option to prepay the loan at any time during the loan tenor.

• There will not be any prepayment levy/penalty/charge for such prepayments. Baluja

Labs 14 Baluja Labs 15. Loan Covenants:

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• The borrower(s) will continue to use the residential property as his/her/their primary

residence till he/she/they is/are alive, or permanently move out of the property, or cease

to use the property as permanent primary residence.

• Non-Recourse Guarantee: The PLIs shall ensure that all reverse mortgage loan products

carry a clear and transparent ‘no negative equity' or ‘non-recourse' guarantee. That is, the

Borrower(s) will never owe more than the net realizable value of their property, provided

the terms and conditions of the loan have been met.

• Loan Agreement: The PLIs shall enter into a detailed loan agreement setting out therein

the salient features of the loan mortgage security and other terms and conditions,

including disbursement and repayment of the loan, in addition to the usual provisions,

which are ordinarily incorporated in a mortgage loan document.

• The loan agreement may also include a provision that the borrower shall not make any

testamentary disposition of the property to be mortgaged and even if it does so, it would

be subject to the mortgage created in favour of the lending institution. In such a case, the

borrower shall make a testamentary disposition of the mortgaged property in favour of

any of his/her relatives, subject to the discharge of the mortgage debt by such legatee and

a statement that the heirs shall not be entitled to challenge the validity of the mortgage as

also the right of the mortgagee to enforce the mortgage in the event of death of the

borrower unless the legal representative is willing to undertake the responsibility for

discharging in full the amount of loan and accrued interest thereof.

• In addition, the PLI may also consider obtaining a Registered Will from the borrower

stating, inter-alia, that he/she has availed of RML from the PLI on Baluja Labs 15 Baluja

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Labs security by way of mortgage of the residential property in favour of the PLI,

meaning thereby that in the event of death of the borrower (and co-borrower, if any), the

mortgagee is entitled to enforce the mortgage and recover the loan from the sale proceeds

on enforcement of security of the mortgage. The surplus, if any, has to be returned to the

heirs of the deceased borrower(s).

• The PLIs may consider taking an undertaking from the prospective borrower that the

“Registered Will” given to the PLI is the last “Will”, prepared by him/her at the time of

availment of RML facility as per which the property will vest in his/her spouse name

after his/her demise. The borrower will also undertake not to make any other ‘Will'

during the currency of the loan which shall have any adverse impact on the rights created

by the borrower in the PLI's favour by way of creation of mortgage on the immoveable

property mentioned under the loan documentation for covering loan to be allowed to

his/her spouse and interest thereon, even after the borrower's death.

• The PLI will ensure that the borrower(s) has insured the property against fire,

earthquake, and other calamities.

• The PLI will ensure that borrower(s) pay all taxes, electricity charges, water charges

and statutory payments.

• The PLIs will ensure that borrower(s) are maintaining the residential property in good

and saleable condition.

• The PLI may reserve the option to pay for insurance premium, taxes or repairs by

reducing the homeowner loan advances and using the difference to meet the

obligations/expenditures. • The PLI reserves the right to inspect the residential

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property/premises or arrange to have the residential property/premises inspected by its

representatives any time Baluja Labs 16 Baluja Labs before the loan is repaid and

borrower(s) shall render his/her/their cooperation in respect of such inspections. 16. Title

Indemnity/Insurance

• The PLI shall obtain legal opinion for ensuring clarity on the title of the residential

property.

• The PLI shall also endeavor to obtain indemnity on title related risks, as and when such

indemnity products are available in India.

Chapter – 3

Objective and Scope Of The Study

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OBJECTIVES OF STUDY

Objective:

The objective decides where we want to go, what we want to achieve and what is our

goal or destination. The objective of “A STUDY OF REVERSE MORTGAGE IN

INDIA” is to –

• Analyze the future prospects of this lending scheme in India.

• Find out the Risks associated with it in current scenario (Recovery after global

economic meltdown).

• To find out the welfare gain to senior citizens from Reverse Mortgage Scheme.

• To study of other available banks Reverse Mortgage Scheme.

• To study the sources of Indian data relevant to Reverse Mortgage

Scope:

My Study will be confined to

a) Present employee’s of ICICI

b) Some past employee’s ICICI

c) Customers/Buyers of ICICI

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 Chapter-4

Research Methodology

RESEARCH

Research methodology in a way is a written game plan for conducting research. Research

methodology has many dimensions. It includes not only the research methods but also

considers the logic behind the methods used in the context of the study and complains

why only a particular method of technique has been used. The basic task of research is to

generate accurate information for use in decision making. Research can be defined as the

systematic and objective process of gathering, recording and analyzing data for aid in

making business decisions.

As the project involves analyzing of financial structure, the research is exploratory in

nature, covering financial parameters and come of the important ratios to carry out

research.

DATA COLLECTION METHOD:

The data will be collected using both by primary data collection methods as well as

secondary sources.

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(i) PRIMARY DATA– Most of the information will be gathered through

primary sources. The methods that will be used to collect primary data are books,

research, newspapers, websites etc.

Books: –

• Reverse Mortgage Essentials by Steve Lowsons

• Reverse Mortgage and Linked Securities by Vishal Bhuyan

• Modern Banking Theory & Practice by D. Muralidharan

News Papers: –

• Business Standard, Lucknow and Meerut Edition

• Economic Times, Meerut Edition

Magazines: –

• India Insurance Report Series

• Industrial Economics Volume 40

Web Sites: –

• www.allahabadbank.com

• www.statebankofindia.com

• www.pnb.co.in

• www.lic.co.in

• www.icicibank.com

(ii) SECONDARY DATA – Interviews, questioners, fill ups, different

nationalized banks, borrowers, financial consultants etc. Secondary data of this project on

Reverse Mortgage will be collected from –

• Interviews from different categories of target group.

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 • Questionnaires will be arranged to get the data.

• Fill ups

• Different nationalized banks

• Borrowers

• Financial consultants

TIME FRAME OF THE DATA COLLECTION:

2 Months

METHOD OF SAMPLING:

The technique used for conducting the study was Convenience Sampling Technique as

sample of respondents was chosen according to convenience.

STASTICAL TOOLS:

The tools used in this study were MS-EXCEL, MS-WORD. MS-EXCEL was used to

prepare pie- charts and graphs. MS-WORD was used to prepare or write the whole

project report.

METHOD YOU WILL USE TO CLASSIFY DATA:

Data Analysis & Interpretation – Classification & tabulation transforms the raw data

collected through questionnaire in to useful information by organizing and compiling the

bits of data contained in each questionnaire i.e., observation and responses are converted

in to understandable and orderly statistics are used to organize and analyze the data.

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¨ Simple tabulation of data using tally marks.

¨ Calculating the percentage of the responses.

¨ Formula used = (name of responses / total responses) * 100

NUMBER OF RESPONDENTS

Total samples of 50-75 respondents were contacted who responded to the questionnaires.

Chapter-5

Data Analysis and Interpretation

DATA COLLECTION & DATA ANALYSIS

The following information contains the data interpretation of the questionnaire. The

respondent‘s responses for the questions have been interpreted and a finding has been

made based on the respondents responses.

Questionnaire for the customer of the bank

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1. Demographics details of the customer-

(a) Below 25 years (b) 25-50 years (c) Above 50 years

Interpretation: From the above data, it is observed that 66% of the customers are

belonging to the age category of 25-50 yrs. So it is observed that the majority of the

customers who avail retail products and services fall under this category.

2. Gender Details of the customer-

(a) Male (b) Female

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Interpretation: From the data it is observed that 68% of the customers are males. So it is

observed that the majority of the customers who avail retail products and services are

males.

3. Educational Qualification details-

(a) 12th (b) Graduate (c) Post Graduate (d) Other

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Interpretation: From the above data, it is observed that 53% of the customers are

graduated whereas 12% have 12th passed only; the remaining 27% being post graduated.

4. Occupational details of the customer-

(a) Business (b) Service (c) Student (d) Retired (e) Any other

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Interpretation: From the above data, it is observed that 40% of the customers are in

service while only 22% are businessman. So it is observed that the majority of the

customers who avail retail products and services fall under the service category.

5. Number of years you have been associated with your bank?

(a) Less than 1 year (b) 1-5 years (c) 5-10 years (d) More than 10 years

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Interpretation: The above data shows that maximum numbers 61% of the customers are

associated with their respective banks from last 1-5 years.

6. What type of Account you have?

(a) Savings (b) Current (c) Fixed Deposit (d) Any other

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Interpretation: The above data makes it very clear that most of the customers have

savings account with the bank.

7. For which of the following transactions you visit to the bank?

(a) Withdrawal/ Deposit (b) Balance Enquiry/ Statement

(c) Investment (RD / FD) (d) Money Transfer

(e)All of these

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Interpretation: It shows that most of the customer come bank for withdrawal and deposits,

as it is the primary function of bank.

8. What are the medium of awareness about Reverse Mortgage ?

(a) Television commercials (b) Newspaper & Magazines (c) Radio

(d)Word of mouth (e) Billboards/Hoardings

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Interpretation: The above data shows that the advertising medium which contributed the

most in generating awareness about the Reverse Mortgage are Television commercials.

9. For which of the following transactions you use e-banking services?

(a) Withdrawal/ Deposit (b) Balance Enquiry/ Statement

(c) Investment (RD / FD) (d) Bill Payment

(e) Money Transfer

(f) None of these

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Interpretation: This graph revealed that there are many customers in the bank who do not

know about e-banking services much. And those who use e-banking services, they

normally use it for balance enquiry and statement.

10. Which of the following e-banking services are used by you?

(a) ATM (b) Online Banking

(c) Internet Banking (d) Mobile Banking

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 (e)None of these

Interpretation: This figure shows that almost every customer uses the service of ATM

card. Those who uses the other e-banking services, they also uses the service of ATM

card.

11.What is quality of the bank‘s Credit and Debit Card services?

(a) Excellent (b) Very good (c) Good (d) Average (e) Poor

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Interpretation: The above data shows that 53% of the customers have rated the quality of

the bank’s Credit & Debit card service to be good. So it is interpreted that the customers

are satisfied with the quality of the Credit & Debit card service.

12. Are mobile banking services more useful?

(a) ICICI (b) No

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Interpretation: the above data shows that 95% of the customers think that mobile banking

services are more useful.

13. What rating will you give for the Working Hours of the banks?

(a) Excellent (b) Very good (c) Good (d) Average

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Interpretation: From the above data it can be interpreted that 51% of the customers

considered good and satisfied with the working hours of the banks.

14. Which of the following investments would you feel most comfortable with taking into

consideration the risk return trade-off?

(a) Equity (b) Mutual Funds

(c) Government bonds (d) Deposits- (RD/FD)

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Interpretation: In banks, customers usually go for investments in deposits like RD/FD and

mutual funds as they feel comfortable in these investments as compared to others.

15. Computerization has helped in to reduce the waiting time for any transaction in the

Bank.

(a)Strongly Agree (b) Agree

(c) No Opinion (d) Disagree

(e)Strongly Disagree

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Interpretation: Almost all the customers in the bank agreed that computerization has

helped in reducing the waiting time for any transaction.

16. When do you think of your bank what comes first in your mind

(a) Personalized service (b)Wide branch network

(c)Customer service (d)Computerized banking

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Interpretation: Most of the customer in the bank is very much concerned with the kind of

customer service the bank is providing. If they are satisfied with the customer service,

then they will go for other things.

17. Do you use the service of alternative bank?

(a) ICICI (b) No

If ICICI, which bank________________________________________________

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Interpretation: Many customers in the bank have more than one account in different

banks due to various reasons. And according to my data collection, most of the customer

uses the service of SBI.

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18. Service efficiency is increased due to bank computerization.

(a)Strongly Agree (b) Agree

(c) No Opinion (d) Disagree

(e)Strongly Disagree

Interpretation: Due to bank computerization, service efficiency is increased in the banks

and almost every customer is agreed to this statement.

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19. What is your opinion about Bank computerization?

(1) Service efficiency is increased due to computerization

(2) It provides 24x7, anywhere, anytime services

(3) Reduces waiting time

(4) Any other_____________________________________________

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Interpretation: Computerization has helped in the bank to reduce the waiting time of the

customers because chances of mistakes and errors are very less due to bank

computerization.

20. What do you feel about overall service quality of your bank.

(a) Excellent (b) Very good (c) Good (d) Average (e) Poor

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Interpretation: Every customer feels that the overall quality of their bank is good and

some of the customers rated it excellent and very good. So the role of the banking

products and their developing services has increased the overall quality of the banks.

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 Chapter-6

Facts and Findings

Findings:

1. 66% of the customers fall under the age category of 25-50 years.

2. 68% of the customers are males.

3. 53% of the customers are graduates.

4. 40% of the customers are doing service as their occupation i.e., majority of

customers are doing service.

5. 61% of the customers are associated with their respective banks from the past 1-5

years.

6. 63% of the customers have savings account i.e., majority of customers.

7. 40% of the customers visit banks mostly for deposits and withdrawals.

8. The advertising medium which contributed the most in generating awareness

about the Reverse Mortgage are Television Commercials.

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9. Most of the customers do not know about e-banking services and those who know

they normally use it for balance enquiry and statements.

10. 58% of the customers use ATM as e-banking services.

11. 53% of the customers have rated the quality of the bank‘s Credit & Debit card

service to be good.

12. 95% of customers think that mobile banking services are more useful.

13. 51% of the customers have rated the bank‘s working hours as very good.

14. Majority of customers prefer to invest in Deposits (FD/RD) as taking into

consideration the risk-return trade-off.

15. Almost all the customers feel that computerization has helped in to reduce the

waiting time for any transaction in the Bank.

16. Customers are very much concerned about the customer service provided by the

banks.

17. Most of the customers have another account with other banks because of several

reasons and the most competitive bank is State Bank of India (SBI).

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 18. All the customers feel that service efficiency has increased due to bank

computerization.

19. Bank computerization has helped the customers in terms of reducing waiting time,

increasing service efficiency and majority of customer feels that it provides 24*7

anywhere, anytime services.

30% of customers have rated the overall service quality of their bank as good while 30%

rated very good and 30% rated excellent.

Chapter-7

Recommendations

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Recommendations:

ICICI bank huge offers a range of financial products and services to its clients throughout

the country. It also has special strength in retail and corporate banking. ICICI bank has

not only given a new form of banking of private banks but also has maintained its growth

speed after increase in competition due to more private banks coming in banking sector.

Some of the important conclusions and recommendations are listed below:

1. more Branches should be increased covering a wider area in various states.

2. A wide publicity to be given about the organization and its products through various

means of communications to keep growth moments.

3. More number of training and educational programmes should be included in Banks

schedule.

4. Developing a learning culture through continuous learning process.

5. Educate the customers about the benefits of Reverse Mortgage .

6. Customers may get irritated with continuous marketing calls from the banks. In such a

case bank should have to design a systematic marketing plan to pitch the customers rather

than calling continuously.

7. To retain the existing customers and to build up customer loyalty, Customer

Relationship Management should be given more importance.

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 Chapter:8

Conclusion

Conclusion:

 ICICI bank is one of India's largest private sector banks. They have more than

1095 branches in India and also have 4846 ATMs in all major towns and cities of

India. This makes them one of the top 3 private banks in the country in terms of

sheer branch and ATM numbers.

 Customers always look for more user- friendly products and better interest rates

when compared to other banks they have account with so, through product

innovation and appropriate pricing strategy the bank can also foster business

relationship with its customers.

 From above all information it is seen that, Reverse Mortgage is directed at

salaried and self employed persons. That is on those people who can meet EMI

commitments.

 From the study it can be concluded that, through the majority of the customers are

aware about the Products & Services of Reverse Mortgage , still there is a need to

generate mass awareness to reach all section of the society, and this can be

accomplished through effective marketing strategies.

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 From the study it can be concluded that the overall perception, on service delivery

of the banks, in the minds of the customers is good and satisfactory, but in order

to retain the loyalty of the customers, banks needs to work upon delivery of it

products and services effectively & efficiently.

 It is been studied that various products and services provided by the Bank as their

retail offerings are:

 Loans: Home loans, Auto loans, Personal loans, Educational loans

 Plastic money: ATM card, debit card, cheques, smart card

 Payment services

 Deposits

 ATM

 Tele-banking

 Mobile banking

 Internet banking

 And through this research the overall customer perception towards these

particular services can be concluded as ‘Good’ as well as satisfactory.

 There is a need of constant innovation in Reverse Mortgage and thereby constant

up gradation of the banks’ internal systems and processes.

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 The Bank has more strengths in both retail and corporate banking and is

committed to adopting the best industry practices internationally in order to

achieve excellence.

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 Chapter-9

Annexure

Questionnaire for the customer of the bank

1. Demographics details of the customer-

(a) Below 25 years (b) 25-50 years (c) Above 50 years

2. Gender Details of the customer-

(a) Male (b) Female

3. Educational Qualification details-

(a) 12th (b) Graduate (c) Post Graduate (d) Other

4. Occupational details of the customer-

(a) Business (b) Service (c) Student (d) Retired (e) Any other

5. Number of years you have been associated with your bank?

(a) Less than 1 year (b) 1-5 years (c) 5-10 years (d) More than 10 years

6. What type of Account you have?

(a) Savings (b) Current (c) Fixed Deposit (d) Any other

Page 57 of 62
7. For which of the following transactions you visit to the bank?

(a) Withdrawal/ Deposit (b) Balance Enquiry/ Statement

(c) Investment (RD / FD) (d) Money Transfer

(e)All of these

8. What are the medium of awareness about Reverse Mortgage ?

(a) Television commercials (b) Newspaper & Magazines (c) Radio

(d)Word of mouth (e) Billboards/Hoardings

9. For which of the following transactions you use e-banking services?

(a) Withdrawal/ Deposit (b) Balance Enquiry/ Statement

(c) Investment (RD / FD) (d) Bill Payment

(e) Money Transfer (f) None of these

10. Which of the following e-banking services are used by you?

(a) ATM (b) Online Banking

(c) Internet Banking (d) Mobile Banking

(e)None of these

11.What is quality of the bank‘s Credit and Debit Card services?

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(a) Excellent (b) Very good (c) Good (d) Average (e) Poor

12. Are mobile banking services more useful?

(a) ICICI (b) No

13. What rating will you give for the Working Hours of the banks?

(a) Excellent (b) Very good (c) Good (d) Average

14. Which of the following investments would you feel most comfortable with taking into

consideration the risk return trade-off?

(a) Equity (b) Mutual Funds

(c) Government bonds (d) Deposits- (RD/FD)

15. Computerization has helped in to reduce the waiting time for any transaction in the

Bank.

(a)Strongly Agree (b) Agree

(c) No Opinion (d) Disagree

(e)Strongly Disagree

16. When do you think of your bank what comes first in your mind

(a) Personalized service (b)Wide branch network

(c)Customer service (d)Computerized banking

17. Do you use the service of alternative bank?

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(a) ICICI (b) No

If ICICI, which bank________________________________________________

18. Service efficiency is increased due to bank computerization.

(a)Strongly Agree (b) Agree

(c) No Opinion (d) Disagree

(e)Strongly Disagree

19. What is your opinion about Bank computerization?

(1) Service efficiency is increased due to computerization

(2) It provides 24x7, anywhere, anytime services

(3) Reduces waiting time

(4) Any other_____________________________________________

20. What do you feel about overall service quality of your bank.

(a) Excellent (b) Very good (c) Good (d) Average (e) Poor

Page 60 of 62
 Chapter-10

Bibliography

Books:

 Stephen Bush (2008) “Seizing new treasures with aggressive cash management” cash

flow magazine.

 Bebehuk L. and L. stole (2009) “Organize Turn tax dollars into working capital”

Rush, George.

 Gamble, Richard H. (2005) “Working capital managers: muscling into a larger role”

Cash flow Magazine.

 Financial management: Pandey IM, Vikas publishing house.

Websites:

 https://www.ICICIbank.in

 https://en.wikipedia.org/wiki/ICICI_Bank

 https://www.facebook.com/ICICIBANK

 www.investopedia.com/terms/r/retailbanking.asp

 https://en.wikipedia.org/wiki/Retail_banking

Others:

 Annual Report and induction manual of ICICI bank.

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 Past in house study of ICICI bank.

 Newspapers & magazines

 India Today

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