INTRODUCTION

Housing finance is a broad topic, the concept of which can vary across continents, regions
and countries, particularly in terms of the areas it covers. For example, what is understood by
the term “housing finance” in a developed country may be very different to what is
understood by the term in a developing country.

The International Union for Housing Finance, as a multinational networking organisation, has
no official position on what the best definition of housing finance is. However, the selection
of quotes below is offered as a snapshot of what housing finance as a topic cover:

“Housing finance brings together complex and multi-sector issues that are driven by
constantly changing local features, such as a country’s legal environment or culture,
economic makeup, regulatory environment, or political system”
In addition, the concept of housing finance and housing finance systems has been evolving
over time. Looking at definitions from the mid-1980s, we see that housing finance was
defined primarily in terms of residential mortgage finance:

“The purpose of a housing finance system is to provide the funds which home-buyers need to
purchase their homes. This is a simple objective, and the number of ways in which it can be
achieved is limited. Notwithstanding this basic simplicity, in a number of countries, largely as
a result of government action, very complicated housing finance systems have been
developed. However, the essential feature of any system, that is, the ability to channel the
funds of investors to those purchasing their homes, must remain.”
However, in more recent years, a number of other much wider definitions have appeared:

“Put simply, housing finance is what allows for the production and consumption of
housing. It refers to the money we use to build and maintain the nation’s housing stock. But it
also refers to the money we need to pay for it, in the form of rents, mortgage loans and
repayments.”
“There is recognition of other relevant forms of housing finance [apart from
residential mortgage finance] such as developer finance, rental finance, or microfinance
applied to housing. Developer finance is often in the form of unregulated advance payments
by buyers, and developers sometimes provide long-term finance to buyers through
instalments sales when mortgages markets are not accessible. Microfinance for housing is
typically used for home improvement or progressive housing purposes. Loans are typically
granted without pledging properties. Although the overall impact of microfinance in housing
remains limited, this activity can represent an important source of funding for those in the
informal sector.”

Banks are among the main participants of the financial system in India. Banking
offers several facilities and opportunities. Banks in India were started on the British pattern in
the beginning of the 19th century. The first half of the 19th century, The East India Company
established 3 banks The Bank of Bengal, The Bank of Bombay and The Bank of Madras.
These three banks were known as Presidency Banks. In 1920 these three banks were
amalgamated and The Imperial Bank of India was formed. In those days, all the banks were
joint stock banks and a large number of them were small and weak. At the time of the 2nd
world war about 1500 joint stock banks were operating in India out of which 1400 were non-
scheduled banks. Bad and dishonest management managed quiet a quiet a few of them and
there were a number of bank failures. Hence the government had to step in and the Banking
Company’s Act (subsequently named as the Banking Regulation Act) was enacted which led
to the elimination of the weak banks that were not in a position to fulfil the various
requirements of the Act. In order to strengthen their weak units and review public confidence
in the banking system, a new section 45 was enacted in the Banking Regulation Act in the
year 1960, empowering the Government of India to compulsory amalgamate weak units with
the stronger ones on the recommendation of the RBI.
 COMPANY PROFILE

Bank of Maharashtra बैंक

ऑफ महाराष्ट्र

Ek Parivaar, Ek Bank
Type Public

Traded as BSE: 532525

NSE: MAHABANK

Industry Banking, Financial services

Founded 1935; 85 years ago

Headquarters 1501, Lokmangal,

Shivajinagar,
Pune India

Key people A. S. Rajeev

(MD & CEO)[1]

Products consumer banking, corporate

banking, finance and
insurance, investment
banking, mortgage
loans, private banking, private
equity, savings, Securities, asset
 management, wealth
management, Credit cards,

Revenue ₹13,052.98
crore (US$1.8 billion)

Operating ₹2,345.18
income crore (US$330 million) (2016)

Net income ₹100.69 crore (US$14 million)

(2016)

Total assets ₹160,957.32

crore (US$23 billion) (2016)

Owner Government of India

Number of  12,932 (2018)

employees  13,765 (2016)

Capital ratio 11.20% (2016)

Website www.bankofmaharashtra.in

Bank of Maharashtra is a major public sector bank in India. The Government of India holds
87.74% of the shares. The bank had 15 million customers across the country with 1,897
branches as of 5 April 2016. It had the largest network of branches of any public sector bank
in the state of Maharashtra.

The bank was founded by V. G. Kale and D. K. Sathe in Pune, India.

The bank was registered on 16 September 1935 with an authorized capital of US$1 million
and became operational on 8 February 1936. It provided financial assistance to small business
and gave birth to many industrial houses. After nationalization in 1969, the bank expanded
rapidly.

Narendra Singh, who assumed the office of Chairman and Managing Director from 1
February 2012, retired on 30 September 2013 and was succeeded by Sushil Muhnot and
Ravindra Prabhakar Marathe respectively. A.S. Rajiv became Managing Director and CEO
on 1 December 2018.
 RESEARCH METHODOLOGY

4. RESERCH METHODOLOGY

Research methodology is a way to systematically solve the problem. It may be understood as

a science of studying how research is done scientifically. In it we study the various steps 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
method/techniques but also the methodology.

DATA COLLECTION
1. Primary Data
2. Secondary Data

PRIMARY DATA

The primary data are those which are collected afresh and for the first time, and thus happen
to be original in character. Primary data do not exist in record and publication. The
researcher has to gather primary data which is fresh for the specific study, under taken by
him. The researcher would have to decide which sort of data he would be using for his study
and accordingly he will have to one or the other method of data collection. The method of
collecting primary and secondary data differ since primary data are to be originally collected,
data the nature of data work is merely that of compilation. The various methods to collect
primary data are as follows:

1. Observation Method
2. Experimental Research

Sample Size
A random sample of 100 were administered with the questionnaire and responses
collected.

Research Area
The research was carried out in wardhamannagar, nagpur.
SECONDARY DATA
The data referred to those which had gathered for some other purpose and already available
in the firm’s initial record and commercial, trade or sources of secondary data.
1. Internet.
2. Published of secondary data.
3. Specialized libraries.

In my project I have used Exploratory, Descriptive and Casual Research. A vast amount of
Primary data was collected through Interviews and secondary data was collected through
various books, journals and Internet sites appreciated in Bibliography and Webliography.
OBJECTIVE OF THE STUDY

 A Study of Housing finance bank of Maharashtra.

 Studying the importance of housing, demand for housing and house finance in India.

 Evaluation of the role of Bank of Maharashtra in financing of houses.

 To identify the popular schemes of Bank of Maharashtra.

 To analyze the trends in housing finance by Bank of Maharashtra.

 Measuring the service quality being provided by Bank of Maharashtra to its

customers.
 SCOPE OF STUDY

The project has a wide scope, especially in India, where a vast area is rural and is yet to be
covered by banks and various other reasons. My project can be very easily related to India as
the bank I have chosen to work in is a picture of developing banking scenario in rural and
semi urban areas.

1. A vast area is still untapped

2. Farmers require funds for various needs

3. Middle class is growing, and they have different financial needs All round increase
in economic activity

4. Increase in the purchasing power. The rural areas have the large purchasing power at
their disposal and this is an opportunity to market Retail Banking.

5. India has 200 million households and 400 million middleclass population more than
90% of the savings come from the house hold sector. Falling interest rates have
resulted in a shift. “Now People Want To Save Less And Spend More.”

6. Nuclear family concept is gaining much importance which may lead to large savings,
large number of banking services to be provided are day-by-day increasing.

7. Tax benefits are available for example in case of housing loans the borrower can
avail tax benefits for the loan repayment and the interest charged for the loan.

LIMITATION

 Study is limited to Nagpur city only.

 Responses generated from the respondents are based on their personal views.
 RESEARCH PROBLEM

In the earlier chapter, the analysis of supply and demand dimension has clearly shown
the widening supply and demand gap for housing stock in India. The recent higher economic
growth and rapid urbanization coupled with the government's enabling policy initiatives have
also led to the emergence of booming housing market in India. Since housing is capital
intensive construction activity, it requires huge investment. Moreover, housing being a basic
necessity for the family life, there is a strong household sentiment in favor of homeownership.
Homeownership is, in general, viewed as the key investment of typical Indian households. A
critical constraint for the development of ownership housing stock is, therefore, mainly
centered around on lack of adequate finance at supply and demand end. In view of the critical
importance of housing finance, this chapter focuses on an analysis of type of financing
required for housing sector, institutional framework developed for housing finance, role of
various financing institutions and emerging issues in housing finance.
 HYPOTHESIS

H0: The hypothesis taken under consideration for the study is “That 20% of customer require

housing loan of the total loan provided by bank of Maharashtra.”

 DATA COLLECTION

DATA COLLECTION

1. Primary Data

2. Secondary Data

PRIMARY DATA

The primary data are those which are collected afresh and for the first time, and thus happen to be
original in character. Primary data do not exist in record and publication. The researcher has to gather
primary data which is fresh for the specific study, under taken by him. The researcher would have to
decide which sort of data he would be using for his study and accordingly he will have to one or the
other method of data collection. The method of collecting primary and secondary data differ since
primary data are to be originally collected, data the nature of data work is merely that of compilation.
The various methods to collect primary data are as follows:

1. Observation Method

2. Experimental Research

SECONDARY DATA

The data referred to those which had gathered for some other purpose and already available in the
firm’s initial record and commercial, trade or sources of secondary data.

1. Internet.

2. Published of secondary data.

3. Specialized libraries.

In my project I have used Exploratory, Descriptive and Casual Research. A vast amount of Primary
data was collected through Interviews and secondary data was collected through various books,
journals and Internet sites appreciated in Bibliography and Webliography.
 ANALYSIS OF DATA AND HYPOTHESIS TESTING

The proposed chapter will deal with various type of data collected and
analysis and interpretation of the results are carried out thereof.
 CONCLUSION AND SUGGESTIONS

The proposed chapter will deal with the result arrived after the detail study of “A
STUDY OF HOUSING FINANCE BY BANK OF MAHARASHTRA IN NAGPUR”

And the conclusion arrived there of suitable suggestions or recommendation will

also be included in this chapter if necessary.
 BIBLIOGRAPHY

Text Book :

Financial Management-Prasanna Chandra

The Institute of Company Secretary-Indian Economy

Website :

www.bankofmaharashtra.com
www.google.com
www. bankofmaharashtra.in
 A
SYNOPSIS
ON

“A STUDY OF HOUSING FINANCE BY BANK OF

MAHARASHTRA IN NAGPUR”

SUBMITTED TO

RASHTRASANT TUKDOJI MAHARAJ NAGPUR UNIVERSITY, NAGPUR

IN PARTIAL FULFILLMENT OF DEGREE OF

BACHELOR OF BUSINESS ADMINISTRATION

SUBMITTED BY

AKASH S. KAMDE

GUIDED BY

MR. RAHUL KHARWADE

PRERNA COLLEGE OF COMMERCE

RESHIMBAGH SQ. NAGPUR – 440009.

2019 – 2020
 INDEX

PAGE
SR. NO. PARTICULARS
NO.

INTRODUCTION AND RESEARCH METHODOLOGY

 INTRODUCTION
 COMPANY PROFILE
 RESEARCH METHODOLOGY
1
 AIM AND OBJECTIVES
 SCOPE AND LIMITATIONS
 RESEARCH PROBLEM
 HYPOTHESIS

DATA COLLECTION
2  PRIMARY DATA
 SECONDARY DATA

3 ANALYSIS OF DATA AND HYPOTHESIS TESTING

4 CONCLUSION AND SUGGESTION

5 BIBLIOGRAPHY