A novel pt/pd sodalite caged catalyst combination with sulfided base metal catalyst for improved catalytic hydroprocessing of renewable feedstock. Particularly, the invention relates to a process for preparation of the said catalyst. More particularly, the invention relates to a process for the preparation of hydrocarbon fuel from the feed stock using a said catalyst. Further, the invention discloses a novel catalyst and a process for the preparation of the Pt/Pd encapsulated in sodalite cage with silica-alumina ZSM-5 synthesized around it supported with nickel, molybdenum, cobalt, tungsten or one or more thereof. The invention also provides process to convert vegetable oils, free fatty acids, and microbial lipids, bio-crude and conventional non-renewable crude based feed stocks such as diesel, naphtha, kerosene, gas oil, residue, etc., into gasoline, aviation, diesel, fuel and other hydrocarbons fuel with reduced coke formation and hydrogen generation due to formation of napthenes and aromatics using the novel catalyst.