Union Bank of India

CHAPTER 1
INDUSTRY INTRODUCTION
What is banking?
The Banking Regulation Act 1949 defines banking as Accepting, for the purpose of lending or
investment, of deposits of money from the public repayable on demand or otherwise and
withdrawal by cheque draft, order or otherwise. In addition, banks also offer financial services,
which include:
Issuing demand draft & travelers cheque.
Credit cards
Collection of cheques, bill of exchange.
Safe deposit lockers
Custodian services.
Investment and Insurance Services.

The business of banking is highly regulated since banks deal with money offered totem by the
public and ensuring the safety of this public money is one of the prime responsibilities of any bank.
Every bank has a compliance department, which is responsible to ensure that all the services
offered by the bank, and the processes followed are in compliance with the local regulations and
the Banks corporate police The major regulations and act governing the banking business are:-
Banking Regulation Act, 1949
Foreign Exchange Management Act, 1999
Indian Contract Act
Negotiable Instruments Act, 1881

Bank lends money either for productive purposes to individual, firms, Corporate etc. of for buying
house property, cars and other consumer durables and r investment purposes to individuals and
the others. However, banks do mot finance any speculative activity. Lending is risk taking The
Depositor of banks is also assured of safety of their money by deploying some percentage of
deposit in statutory reserves like Statutory Liquidity & Ratio credit Rating Ratio.

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 Union Bank of India

BANKING INDUSTRY

Banking System
Banking system is an integral sub-system of the financial system. It represent an important
channel of collecting small saving from the households and ending it to the corporate sector.
The Indian Banking system has the Reserve Bank of India (RBI) as the apex body for all matters
relating to the banking system. It is the of Banks of In demand bankers to all others banks as
well.

Classification of Banks.
1. Non-Schedule Banks
These are banks, which are not included in the second schedule of the Banking Regulations Act,
1965. It means they do not satisfy the conditions laid down by that schedule.
They are further classified as back:
Central co-operative banks and primary credit societies
Commercial Banks

2. Schedule Banks
Must have paid-up capital and reserve of mot less than Rs. 50, 00,000.The must satisfy the RBI
than its affairs are mot conducted in a manner detrimental to the interests of its depositors. These
are further classified as follow:

State co-operative Banks

Commercial Bank
Private sector
Public sector

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 Union Bank of India

CHAPTER 2
BANKING INTRODUCTION
Meaning of Bank
It is generally said that the word BANK has been originated in Italy. In the middle of 12th
century there was a great financial crisis in Italy due to war. To meet the war expenses, the
government of that period imposed a forced subscribed loan on citizens of the country at the
interest of 5% per annum. Such loans were known as Compare, Minute etc. The most common
name was Monte. In Germany the word Monte was named as Bank or Bank. According to some
writers, the word Bank has been derived from the word Bank.

It is also said that the word Bank has been derived from the word Bunco which means a bench.
The Jews money lenders in Italy used to transact their business sitting on benches at different
market places. it is rightly argued that the word Bank has been originated from the World Bank.
Today the word bank is used as a comprehensive term for a number institutions carrying on
certain kinds of financial business. In practice, the work Bank means which borrows money from
one class of people and again lends money to another class of people for interest or profit.

Definition of Bank
Bank is defined in many ways by various authors in the books on economics and commerce. It is
very difficult to define a bank, because a bank performs multifarious functions. Different kinds
of bank having different functions may be defined in different ways according to their functions.
The evolution of different type of banks, each specialization in a particular field, gives emphasis
on each and every kind of bank. A general and comprehensive definition to cover all types of
banking institutions would be unscientific and probably impossible. Each type of bank should
have its own definition explaining its specialized functions. Legislators have understood this
difficulty and that is why the Bill of Exchange Act 1882 (England) defines thus A bank includes
a body of persons, whether incorporated or not, who carry on the business of banking.

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Importance of Banking
Bank plays a significant role in the economic development. The overall economic of a country is
absolutely dependent on the efficient banking system. Industrial, agricultural and commercial
progress of a country is not possible without a good banking system. The importance of banking
may be stated as follows:

1. Capital Formation
Economic development depends upon the division of economic resources from consumption to
capital formation. Capital grows out of savings. Thus banks render a valuable service towards the
development of a country by encouraging the growth of capital.

2. Development of Trade and Industry

Bank utilizes their collected funds by advancing loans to commercial and industrial
undertakings. In respect of foreign trade also, banks render a valuable service by issuing letter of
credit etc.

3. Reservoirs of Funds
Banks acts as the reservoirs of money in the country. In times of economic, crisis the bankers
come forward to help the Government by purchasing the Government securities or by advancing
loans.

4. Transfer of Funds
Banks facilitate the transfer of funds from one place to another safely and at a very cheap cost
through bank drafts, mail transfers, telegraphic transfer, travelers cherub etc.

5. Dealing in Foreign Exchange

Banks deal in foreign exchange by purchasing and selling foreign currencies and by issuing
letters of credit. Foreign remittances of funds are possible only through banks.

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 Union Bank of India

6. Money Market Operations

The structure and ups and downs of money market in the country are largely dependent on
the bankers activities. Under the guidance of the central bank all the banks in the country do
their best for the sound management of money market.

7. Service to Customer
Banks performs various agency services on behalf of their customers. They collect or make
payments of bills of exchange, dividend, insurance premium etc, on behalf of their customers.

Functions of Modern Bank

The following is the list of functions or services rendered by a modern bank:
1. Bank provides inexpensive media of exchange through its cheques etc.

2. Bank keeps deposits of public.

3. Bank finances trade and industry.

4. Bank keeps in capital formation by economic savings.

5. Bank acts as Reservoir of funds.

6. Bank deals in foreign exchange and finances foreign trade.

7. Central Bank issues notes and controls money supply.

8. Central Bank controls credits, exchange and the money market.

9. All the banks participate in the development of money market.

10. Bank facilitates the transfer of funds from one place to another.

11. Specialized banks help in the development of agriculture and industry.

12. Banks acts as the custodian of customers valuables.

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 Union Bank of India

13. Bank acts as underwriters for raising capital or loan by Government, Public Bodies and
Companies.

14. Bank acts as trustees and Executor of will and documents on behalf of their customers.

15. The Bank collects and makes payments of Bills of Exchange on behalf of its customers.

16. Bank advances loans and extend financial advices to its customers.

17. Bank Discounts Bills.

18. Bank purchases and sells stock exchange securities.

Qualities of Banking System

Every bank is a dealer in money and credit. It generally deals in with others money and not with
its own money. It takes deposits from the public and again lends to its customers for the sake of
interest or profit.

Thus, the operation of banking business is very risky one. A bank must have some qualities in
operating its functions efficiently and successfully. The qualities of good banking may be
summarized as below

1. Adequate Capital
A banker must have adequate amount of capital. A large scale operation and execution of various
functions of a modern bank require large amount of capital at the initial stage. Thus, without
sufficient capital no large scale banking can flourish.

2. Good Reputation
Reputation is the most important factor in the progress of a bank. To be successful, a bank must
have ample reputation in the money market. Reputation of a bank depends upon the
qualifications of the directors and on the efficiency of management and workers.

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 Union Bank of India

3. Liquidity.
Money which is dealt in by a bank is not its own, so a banker must always keep him ready to
meet the claims of his depositors. He should keep sufficient amount of cash reserve and should
keep some assets in such a way that these can be enchased at any moment. He should not block
his fund by advancing loans for long periods rather he should always prefer short term credits.

4. Security and Safety

In respect of advancing loans safety should be the main guiding principle for a bank. The loans
advanced by the banker must be secured. The persons, to whom the advance is to be made, must
be studied carefully before the lending of money. According to R.S. Sayers, The good banker is
one who can distinguish the sound from the unsound borrower.

5. Economy
Economy in expenditure should be maintained for the proper operation of banking business. A
good banker will always try to maximize his profit at a minimum cost.

6. Effective Publicity
A bank should adopt various scientific methods of advertisement for the proper publicity of
business.

7. Localization
Good locality of a bank is another quality. The bank should be located in the business centre so
that it can flourish its business successfully.

8. Specialty
To be successful, a bank should be specialized in any one or more fields of banking. An
agricultural bank always aims at financing the formers for agricultural purposes. Industrial bank
provides long terms credits to the industries. The individual commercial banks are also
specialized in different fields of banking.

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 Union Bank of India

9. Good Show within the Office

The bank office should be well equipped with modern amenities proper sitting arrangement
should be made within the bank office for its customers.

10. Good Personnel and Efficiency

The officers and the employees of the bank must be efficient in their work. They should be well
trained in different fields of banking. Furthermore they should be well behaved and polite in the
manner and must possess pleasing personality.

Classification of Banks

The banks can be classified on the following three bases:

1. Structural Classification of banking.
2. Operational Classification of banks.
3. Functional Classification of banks.

1. Structural Classification
Banks can be classified on the basis of their structure or constitution. According to structural
classification, banking may be classified as (a) Branch Banking (b) Unit Banking.

a) Branch banking
Under branch banking system, banking business is carried on through a network of branches in
the same town or country under the guidance and control of one single head office. These
branches may also be located in outside of the country. This system of banking was originated in
the United Kingdom. Now-a-days this system if followed by many countries of the world
including Pakistan.

b) Unit banking
Under unit banking system the banking operations is carried through a single office without any
branch. Remittances and foreign exchange etc are dealt through correspondence between banks
of two places. The U.S.A is the home of unit banking.

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 Union Bank of India

.
2. Operational Classification of Banks
On the basis of nature of operation, banks can be classified into the following two categories.
A) Correspondent Banks
The unit banks, having no branch are linked together by correspondent bank system. Under this
system, a unit bank of a village or small town deposits a portion of its cash reserve with another
bank in the nearest city. And this superior bank of city also deposits with another greater bank of
big city. These unit banks are linked through correspondence. Remittances of funds of home and
foreign trade transactions are made through these correspondent banks. The unit banks are
completely independent of each other no doubt, but these are connected with one another
through correspondent system.

B) Specialized Banks
The bank which performs one or more special functions is known as specialized bank. As for
example an agricultural bank takes up the special responsibility of financing agricultural
activities. Industrial banks specially finance the industrial undertakings. Japan is the home of
specialized banks where different types of specialized banks are working with their special
functions. The specialized banks have a great role in the economic development of a country,
especially of a developing country like Pakistan. In our country, Agricultural Development Bank
of Pakistan is helping financially in the development of agricultural sector of our economy. The
Industrial Development Bank of Pakistan is another specialized bank who is financing large
scale industries in Pakistan.

3. Functional Classification of Banks

Banks may be classified according to their functions. Different kinds of banks, with
different functions may be summarized as follows:

a) Central Bank
A central bank is the most important institution in the banking system of a country established
with the objective of regulating the banking and monetary system of the country. It issues notes
and currencies within the country and is entrusted with responsibility of maintaining the price

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 Union Bank of India

level in the country stable. It acts as banker to the Government and it directly or indirectly
controls the activities of all other banks. State Bank of Pakistan is Central Bank of our country.

b) Commercial Bank
Such type of bank is cheerfully engaged in financing internal trade. It deals in short term credit.
It takes deposit from public through different type of deposit accounts and invests that collected
fund in advances and loan of short period to the trading and commercial undertaking. This type
of bank is familiar in most of the world. In our country, for example, National Bank of Pakistan,
Habit Bank Limited, United Bank Limited, Muslim Commercial Bank Limited and Allied Bank
Limited are the commercial banks.

c) Industrial Bank
Such institution specializes in financing industry. It provides long term credit to people who
carry on industrial enterprises. Industrial Development Bank of Pakistan (IDBP) and Pakistan
Industrial Credit and Investment Corporation (PICIC) are the examples of industrial banks.

d) Agricultural Bank
Such bank provides long and short term finance to agriculturists for their agricultural purposes.
Long term capital is required for acquisition and improvement of land and purchase of heavy
machinery and equipments. Short period capital is required by the farmers for current
expenditure on seed, manures, wages etc. Agricultural Development Bank of Pakistan (ADBP) is
the best example of agricultural bank in our country that provides long term, medium term and
short term loans to the agriculturists.

e) Exchange Bank
Exchange bank deals mainly in the finance of the foreign trade of the country. It deals in foreign
exchange. On other wards, the main function of such bank is to buy and sell foreign currencies,
rather titles to foreign currencies in the form of bills of exchange, drafts, telegraphic transfers etc.
It purchases the bill of exchange which arises in connection with the import and export trade of
the country and they deal in exchange.

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 Union Bank of India

f) Cooperative Bank
This type of bank is organized mutually by the persons of similar occupations within the
objectives of providing banking and credit facilities to the members. Generally in every country.
Government patronizes co-operative banks in order to encourage the cultivators, fisherman,
workers in the factories etc.

g) Mortgage Bank
Mortgage bank advances long term credits against securities of immovable properties like,
agricultural lands, buildings and machineries etc. Generally, credit is give to the agriculturist,
small industries or house builders. This type of bank is essential in an under developed country
where capital supply is very limited. In our country, House Building Finance Corporation is
functioning as mortgage bank providing long term loans to house builders against securities of
building and land property.

h) Savings Bank
Such banks provide facilities to people to save money. This type of bank is established with the
objective of promoting the thrift or saving habits among the people of small incomes. It takes
deposits from the public and lands the collected funds to traders Depositors are allowed to
withdraw money from their deposits twice in a week. Post offices in Pakistan carry on functions
of saving bank.

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 Union Bank of India

Chapter 3
Union bank of India
Introduction
Union Bank of India (UNION BANK OF INDIA) is one of India's largest state-owned banks
(the government owns 55.43% of its share capital), is listed on the Forbes 2000. It has assets of
USD 13.45 billion and all the bank's branches have been networked with its 1135 ATMs. Its
online Telebanking facility is available to all its Core Banking Customers - individual as well as
corporate. It has representative offices in Abu Dhabi, United Arab Emirates, and Shanghai,
Peoples Republic of China, and a branch in Hong Kong The Union Bank of India was built up in
twentieth century and declared open by the Father of the Nation, Mahatma Gandhi. The bank
with its efficient value-added services, sustained growth, consistent profitability and
development of new technologies bank has ensured complete customer delight, living up to its
image of, GOOD PEOPLE TO BANK WITH. Bank is offering credit cards, home loan, union
demit, Kisan ATM, International debit card, online tax payment facility, Railway e-ticketing
kiosk, etc., services to its customers through core banking solution. The Union Bank of India has
2261 branches out which 1031 branches are under CBS. All the ATMs are inter-connected
through the Banks ATM Switch, thus facilitating on-line operations in case of CBS customers.
The Bank is a member of Cash Tree consortium and also has bilateral arrangement with State
Bank of India, enabling the Banks ATM cardholder access to over 20000 ATMs across the
country. UNION BANK OF INDIA Net connects 65 Offices and 984 branches located in 323
centers, facilitating speedier transmission of MIS data (Network Map). The network also
facilitates the implementation of Core Banking Solution, apart from DEMAT services, Cash
Management services, fund transfers, messaging system, etc. The Bank is using VSAT
network for connecting branches and ATMs wherever leased line connectivity is not feasible.
We have 590 VSATs operational, connecting 194 branches/extension counters and 316 ATMs

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 Union Bank of India

HISTORY

Union Bank of India (UBI) was registered on 11 November 1919 as a limited company
in Mumbai and was inaugurated by Mahatma Gandhi. At the time of India's Independence in
1947, UNION BANK OF INDIA still only had four branches - three in Mumbai and one
in Saurashtra , all concentrated in key trade centers. After Independence UNION BANK OF
INDIA accelerated its growth and by the time the government nationalized it in 1969, it had
grown to 240 branches in 28 states. Shortly after nationalization, UNION BANK OF INDIA
merged in Belgaum Bank, a private sector bank established in 1930 that had it merged in a bank
in 1964, the Sheri Judea Shankar ling Bank. Then in 1985 UNION BANK OF INDIA merged
in Mira State Bank, which had been established in 1929. In 1999 the Reserve Bank of
India requested that UNION BANK OF INDIA acquire Sikkim Bank in a rescue after extensive
irregularities had been discovered at the non-scheduled bank. Sikkim Bank had eight branches
located in the North-east, which was attractive to UNION BANK OF INDIA.

UNION BANK OF INDIA began its international expansion in 2007 with the opening of
representative offices in Abu Dhabi, United Arab Emirates, and Shanghai, Peoples Republic of
China. The next year, UNION BANK OF INDIA established a branch in Hong Kong, its first
branch outside India. In 2009, UNION BANK OF INDIA opened a representative office in
Sydney, Australia.

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 Union Bank of India

VISION & MISSION

VISION

To be the premier financial institution in the emerging markets

Technologically Strong
Financially Sound
All India presence
Personalized Services
Value Maximization
Employee Satisfaction
Skill Maximization

MISSION

To Be Premiere Bank,
Responsive To The Needs Of Our Target Market Customers,
Recognized For Consistently Superior Service Quality Innovative Products,
Thereby Delivering Superior Value To Our Shareholders

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 Union Bank of India

Objective of the study

The objective of the study was to know the financial performance (i.e. the profitability and financial
position) of Union Bank of India for the financial year 2009-2010.
Some other objectives were as follows:

To study the evaluation and performance of the bank

To study the financial statement
To study the source of financial of the bank

Scope of the study

Each and every project study along with its certain objectives also has scope for future. And this
scope in future gives to new researches a new need to research anew project with a new scope.
Scope of the study not only consist one or two future business plan but sometime it also gives idea
about a new business which becomes much more profitable for the researches then the older
one.
Scope of the study could give the projected scenario for a new successful strategy wit
Ha proper implementation plan. Whatever scope I observed in my project are not exactly having all the
features of the scope which I described above but also not lacking all the features:
Research study could give an idea of network expansion for capturing more market and customer with
better services and lower cost, without compromising with quality.
In future customer requirements could be added with the product and services for getting an
edge over competitors
Different parameter could also be used for the purpose of launching a new product with extra
benefits which are required by customers.
Factors which are responsible for the performance for bank can also be used for the
modification of the strategy and product for being more profitable.
These all could also be interchanged with each other for each other in banks strategies for making a
final business plan to affect the market with a positive way without disturbing a lot to market, customers
and competitors with disturbance in market shares.

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 Union Bank of India

PRODUCTS AND SERVICES

UNION BANK OF INDIA provides various types of product and services .The wide range of
product and services consists of

BANKING
Accounts & Deposits cumulative deposit scheme, deposit reinvestment certificate, monthly
income scheme, union flexi-deposit, senior citizens scheme, multi gain savings account, no
frills saving account, union super salary account, union classic current account
Retail Loans union cash, union home, union health, union miles, union education, and
union top up, EMI calculator, union smile.
Cards -Classic /Silver / Gold, Corporate Credit Cards, Add-On Cards
Insurance & Investment mutual fund, union healthcare
Demit demit accounts, online share trade
Payment

NRI Banking
Remittance -Union E-Remit, Details for Remittance
Savings & Deposits - NRO Non Resident Ordinary A/c Scheme, NRE Non Resident
External Rupee, R FC,FCNR(B),Union Unfixed ,Foreign Currency Deposit
Loan &Services house loans, foreign currency loans, loans against deposit, immovable
property, and shares or debenture
Payments -Union Bill Pay

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 Union Bank of India

Corporate Banking

CMS-Union Speed, Union Centralized Debits/Credits, Union Prompt

E-Tax -Customs and Direct taxes, DGFT, Central Excise and Service Tax
Trade Finance trade finance for exporters, trade finance for importers, foreign currency
loans, correspondent banking
Insurance - Non life Insurance Corporate Agency, Insurance-Corporate Agency
Syndication of Loans
MSME Banking
Loans & Policies
Internet Banking

Account Information
Transfer of Funds
Bills
Requests
Mails
Trade
Limits
Currency
U pleads
Customization
Financial enquiries
Non Financial enquiries

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 Union Bank of India

COMPANY PROFILE
Union Bank of India (UBI) is one of India's largest state-owned banks (the government owns 55.43% of
its share capital), is listed on the Forbes 2000. It has assets of USD 13.45 billion and all the bank's
branches have been networked with its 1135 ATMs. Its online Telebanking facility is available
to all it score Banking Customers - individual as well as corporate. It has representative offices in
Abu Dhabi, United Arab Emirates, and Shanghai, Peoples Republic of China, and a branch in
Hong Kong

The Union Bank of India was built up in twentieth century and declared open by the Father of the Nation,
Mahatma Gandhi. The bank with its efficient value-added services, sustained growth, consistent
profitability and development of new technologies bank has ensured complete customer delight,
living up to its image of, GOOD PEOPLETO BA NK WITH. Bank is offering credit adds, home
loan, union demit, Kinas ATM, International debit card, online tax payment facility, airway e-
ticketing kiosk, etc., services to its customers through core banking solution.

He Union Bank of India has 2261 branches out which1031 branches are under CBS. All the ATMs are
inter-connected through the Banks ATM Switch, thus facilitating on-line operations in case
of CBS customers. The Bank is a member of Cash Tree consortium and alohas bilateral arrangement
with State Bank of India, enabling the Banks ATM cardholder access to over 20000 ATMs across the
country. UNION BANK OF INDIA Net connects 65 Offices and 984 branches located in
323centers, facilitating speedier transmission of MIS data (Network Map).The network also
facilitates the implementation of Core Banking Solution, apart from DEMAT services, Cash
Management services, fund transfers, messaging system, etc. The Bank is using VSAT network for
connecting branches and ATMs wherever leased line connectivity is not feasible. We have 590
VSATs operational, connecting 194 branches/extension counters and 316 ATMs.

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 Union Bank of India

Profile of Union Bank of India

For Dun & Bradstreet
Union Bank of India was established on Nov 11, 1919 and is head quartered in Mumbai. The
registered Office of the Bank was inaugurated by Mahatma Gandhi, father of the Nation in the
year 1921. Along with 13 other banks, Union Bank of India was nationalized in the year 1969 in
the first phase. Union Bank has the distinction of making profits consistently for the last 89 years
since inception.

Business Operations
Union Bank has huge and varied customer base approximating to 24 millions. Bank is targeting
customers from all demographic and economic profiles and introducing products and services to
meet their needs. The Bank operates in all the areas including retail lending, personal banking,
corporate banking, international banking and investments & treasury. Banks lending also caters
to the rural and semi urban centers, financing Agriculture and allied activities, rural artisans,
micro & medium enterprises in these areas. Bank has opened 198 Village Knowledge Centers
to provide information to the local community on better agriculture practices, commodities,
marketing facilities and financial education. Bank also offers third party products like life and
general insurance, mutual funds, on-line trading, wealth management services through tie- up
with other FIs. Bank places customer at the centre of all its operations and has transformed the
process, people and organizational structure. Bank has initiated a large scale transformation
process named Nav Nirman to address two critical aspects of growth-instilling the drive of
sales & marketing across bank staff and reconfiguration of banks business model. The
transformation process focuses on four key initiatives
a) Retail Asset (marketing & processing)
b) SME marketing & processing)
c) Branch sales and services (improving the customer experience in the branch)
d) Centralization of key processes

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 Union Bank of India

Bank has brought all its branches under Core banking solutions .Union Bank is the first large
bank to achieve 100% CBS roll out. Bank has taken lead to establish alternate delivery channels
in the form of ATMs, internet banking, phone banking and Mobile Banking. Bank has
introduced many technology based services like RTGS, online NEFT free of cost, on line
application for products and services and online redressed of grievances.

Network and distribution

The business is grouped under various Verticals and well defined Business Strategic Units
were formed, which will drive the growth. Bank has a network of more than 2500 service outlets
which includes specialized branches for MSME (SME SARALS), corporate credit, Union Loan
points for Retail Products etc. Bank has representative offices in Abu Dhabi and Shanghai and is
in the process of opening its office in Sydney, Australia. A fully fledged overseas branch was
opened in Hong Kong. To serve the varied banking needs of the NRIs, Bank has placed number
of Marketing Officials at various centers in UAE and Shanghai. Bank has plans to deploy more
number of Marketing Officials at many other places. Bank plans to open 500 new branches in the
next six months for which it has received licenses from RBI. The bank will accelerate its
presence in the global market space at key locations in the next two years as part of the Vision
strategy.

Diversification
Union Bank in partnership with Bank of India and Dai-Ichi of Japan has formed a subsidiary for
distribution of Life insurance products, which has started selling the products. Bank has signed
an agreement with Belgian KBC group for setting up a joint venture AMC in India. Union Bank
has signed Mau with NSIC for training and setting up Incubation cum Training centers to
promote first generation entrepreneurs in MSME segment. Bank has entered into Mou with
NCMSL for financing against warehouse receipts for agri. commodities kept at NCMSL
warehouses. Bank has announced opening 100 specialized Business Banking branches across the
country to focus exclusively on MSME sector with turnaround time of 2 weeks for sanction of
proposals. Bank has launched mobile banking facility U mobile which facilitates limited
transactions and other services through mobile phones.

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 Union Bank of India

Growth & Performance

Total business of the Bank at the end of Dec08 stood at Rs.2,22,625 crore registering a growth
of 28.33 % over Dec07.The banks total deposits as on 31st Dec08 reached a level of
Rs.1,29,647 crore from Rs.99227 crore as on Dec07 ,an increase of 30.66%. Gross advances of
the Bank reached a level of Rs.92,978 crore as on 31st Dec08,registering a growth of 25.22%
over Dec07.The Capital Adequacy Ratio of the Bank (BASEL I) is at 12.32% & BASEL II at
13.41 % as on Dec08.The net interest margin of the Bank increased to 2.97% for the nine
months period ended Dec08.Return on average assets improved from 1.31% in Dec07 to 1.92%
in Dec08 indicating more efficient use of Funds. The asset quality recorded a significant
improvement with steep reduction in Net NPAs from 0.35% in Dec07 to 0.14% in Dec08 and
the Gross NPAs from 2.10% to 1.68%.

The brand and the promises

Bank has adopted a simple new logo for universal appeal and to aid top of mind recall. The new
logo symbolizes the qualities and values we stand for- Blue standing for the commitment and the
Red for the passion the Bank brings to the work. Union bank has promised 4 key deliverables to
customers based on the strength built in
1) Value for money
2) Committed turnaround time for delivery of products and services
3) Choice of banking channels for customers and
4) Transparency in product offerings and prices

Bank promises that YOUR DREAMS ARE NOT YOUR ALONE ,there is a bank that is ready
to fulfill the dreams of every one and thus ensuring that we remain GOOD PEOPLE TO BANK
WITH for all times to come.

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 Union Bank of India

Last 5 years balance sheet of union bank of India

Balance sheet - Union Bank of India

Particulars Mar'12 Mar'11 Mar'10 Mar'09 Mar'08

12 12 12 12 12
Liabilities
Months Months Months Months Months
Share Capital 661.55 635.33 505.12 505.12 505.12
Reserves & Surplus 12,437.68 10,555.35 8,302.69 6,549.26 5,118.19
Net Worth 14,633.06 12,764.52 10,423.78 8,740.35 7,347.70
Secured Loans 17,909.49 13,315.97 9,215.31 3,884.90 4,760.49
Unsecured Loans 222,868.95 202,461.29 170,039.74 138,702.83 103,858.64
TOTAL LIABILITIES 255,411.49 228,541.78 189,678.83 151,328.08 115,966.84
Assets
Gross Block 3,720.39 3,598.41 3,396.98 3,220.65 2,937.45
(-) Acc. Depreciation 1,388.20 1,319.21 1,101.50 893.35 741.62
Net Block 798.36 705.36 679.51 641.32 471.44
Capital Work in Progress. 3.61 13.58 9.96 7.86 4.57
Investments. 62,363.56 58,399.14 54,403.53 42,996.96 33,822.63
Inventories 0.00 0.00 0.00 0.00 0.00
Sundry Debtors 0.00 0.00 0.00 0.00 0.00
Cash And Bank 15,675.14 20,098.44 15,776.69 15,984.93 10,097.84
Loans And Advances 181,836.94 155,194.08 122,676.18 99,658.46 77,952.40
Total Current Assets 197,512.08 175,292.53 138,452.88 115,643.39 88,050.24
Current Liabilities 6,799.95 7,442.67 5,483.01 9,647.43 8,106.43
Provisions 0.00 0.00 0.00 0.00 0.00
Total Current Liabilities 6,799.95 7,442.67 5,483.01 9,647.43 8,106.43
NET CURRENT ASSETS 190,712.14 167,849.86 132,969.86 105,995.96 79,943.80
Misc. Expenses 0.00 0.00 0.00 0.00 0.00
TOTAL ASSETS
255,411.49 228,541.78 189,678.83 151,328.08 115,966.84
(A+B+C+D+E)

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 Union Bank of India

Last 5 years profit & loss a/c of union bank of India

Profit & Loss - Union Bank of India

Mar'12 Mar'11 Mar'10 Mar'09 Mar'08

12 Months 12 Months 12 Months 12 Months 12 Months
INCOME:
Sales Turnover 22,383.89 17,684.30 14,667.24 12,901.70 10,123.58
Excise Duty 0.00 0.00 0.00 0.00 0.00
NET SALES 22,383.89 17,684.30 14,667.24 12,901.70 10,123.58
Other Income 0.00 0.00 0.00 0.00 0.00
TOTAL INCOME 23,422.28 18,465.11 15,395.40 13,401.69 10,504.56
EXPENDITURE:
Manufacturing Expenses 0.00 0.00 0.00 0.00 0.00
Material Consumed 0.00 0.00 0.00 0.00 0.00
Personal Expenses 2,479.83 2,600.25 1,354.99 1,152.36 845.68
Selling Expenses 67.40 94.08 38.98 132.63 34.49
Administrative Expenses 2,804.57 2,287.70 1,652.65 1,339.02 1,196.21
Expenses Capitalized 0.00 0.00 0.00 0.00 0.00
Provisions Made 975.24 135.25 244.81 217.97 90.94
TOTAL EXPENDITURE 6,327.03 5,117.28 3,291.43 2,841.98 2,167.32
Operating Profit 2,796.71 2,465.86 2,510.35 2,201.88 1,686.24
EBITDA 3,835.10 3,246.66 3,238.51 10,777.68 8,428.18
Depreciation 146.45 155.66 160.14 136.58 101.82
Other Write-offs 0.00 0.00 0.00 0.00 0.00
EBIT 3,688.65 3,091.00 3,078.37 10,641.10 8,326.36
Interest 14,235.39 10,236.42 9,110.27 8,075.81 6,360.95
EBT 2,713.42 2,955.76 2,833.56 2,347.31 1,874.47
Taxes 925.62 873.45 758.00 630.00 487.15
Profit and Loss for the Year 1,787.80 2,082.31 2,075.56 1,717.31 1,387.32
Non Recurring Items -0.6 -0.3 -0.6 9.24 -0.2

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 Union Bank of India

Other Non Cash Adjustments 0.78 0.00 0.00 0.00 0.00

Other Adjustments -0.7 0.00 0.00 0.00 0.00
REPORTED PAT 1,787.14 2,081.95 2,074.92 1,726.55 1,387.03
KEY ITEMS
Preference Dividend 10.54 5.16 0.00 0.00 0.00
Equity Dividend 440.44 419.47 277.81 252.56 202.05
Equity Dividend (%) 80.00 79.99 55.00 49.99 40.00
Shares in Issue (Lakh) 5,505.49 5,243.32 5,051.18 5,051.18 5,051.18
EPS - Annualized (Rs) 32.46 39.71 41.08 34.18 27.46

FINANCIAL PERFORMANCE HIGHLIGHT of 20010-2010

Total Business size of Rs. 2, 91,289 crore as on March31, 2010 an increase of 22.9% over
previous year.
Total Deposits of Rs. 1, 70,040 crore, an increase of 22.6%.CASA deposits grew at 29.4%, its
share increased by 166 basis points to 31.73%.
Total Advances of Rs. 1, 21,249 crore, an increase of 23.4%. Retail advances grew at 33.8%
Net Profits of Rs. 2,075 crore, an increase of 20.2% over the previous year.
Core Fee Income of Rs. 896 crore, an increase of 32.74% over the previous year.
Capital Adequacy Ratio (Basel IICAR) stood at12.51%as on March31, 2010 as against
regulatory minimum of 9.0%.Tier I ratio at 7.91%.
Return on average assets1.25%
Return on equity recorded at23.69%.
Book Value per share of Rs. 173.38, an increase of 25.6% over the previous year.
Earnings per share increased to Rs. 41.08, compared to Rs. 34.18 of previous year.
Cost to Income ratio of 40.66%, reduced by 115 basis points over the previous year.
Proposed Dividend up from 50% to55%.
Pan India reach- Network of 2,805 branchesand2327 ATMs as on March 31, 2010.
Global Expansion: Opened representative offices in Sydney (Australia) and Beijing
(China).Representative office in London opened on April 1, 2010.

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 Union Bank of India

1. As on March31, 2010, Total Business of the bank stood at Rs. 2.91 lakh crore as against Rs. 2.37
lakh crore as on March31, 2009, an increase of 22.9%.The business growth was broad-based
with contribution from retail and corporate customers, both on assets and liabilities side.

2. The Bank posted a total income and net profit of Rs. 15,277 crore and Rs. 2,075crore
respectively for the financial year ended March31, 2010 as against Rs.13372 crore and Rs. 1727
crore respectively in the previous year. The Earning per share (EPS) ratio showed improvement
to Rs. 1.08 as against Rs. 34.18 in the previous year, while cost to income ratio declined to 40.66% as
against 41.81% in the previous year.

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Union Bank of India

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Union Bank of India

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Union Bank of India

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 Union Bank of India

Total Capital Adequacy ratio (CAR), calculated in line with Basel II framework, and
stood at12.51%, well above the regulatory bench mark of 9%. Bank s Tier-ICAR was
7.91%

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 Union Bank of India

The operating expenses stood at Rs. 2508 crore compared to Rs. 2214 crore, relatively a
lower growth of 13.28% compared to 38.98% growth in previous year.
The operating profit of the Bank registered a growth of 18.72% to Rs. 3659 crore from
Rs.3082 crore in the previous year.
Profit after tax net profit increased to Rs. 2075 crore compared to Rs. 1727 crore achieved
ruing last year. Buoyancy in the core business operations supported by healthy growth
in Non-Interest Income helped Bank achieves a 20.15% growth in net profit. Bank s
operating profit and net profit

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 Union Bank of India

CAGR during the financial year 2006- 07 to2009-10 is at 22.3% and 34.9% respectively
Net-worth improved by 25.76% to Rs. 8758 crore from Rs. 6964 crore as reported during
last year. The book value per share increased to Rs. 173.38 from Rs. 137.87.The return on
equity stood at 23.69% and earnings per share increased to Rs. 41.08 from Rs. 34.18
reported during last year. The earnings per share grew at CAGR of 34.9% duringFY07
toFY10.

FINDINGS

Total Capital Adequacy ratio (CAR), stood at 12.51%, well above the regulatory benchmark of
9%.

Profit after tax net profit increased to Rs. 2075 crore compared to Rs. 1727crore achieved
during last year.

The operating expenses registered a lower growth of 13.28% compared to38.98% growth in
previous year. The operating profit of the Bank registered growth of 18.72%.y Net-worth
improved by 25.76%.

The return on equity stood at 23.69% and earnings per share increased to Rs.41.08 from Rs. 34.18.
.Cost to Income ratio has decreased by 115bps to 40.66% as compared to41.81% reported
during last year.

The return on average assets is maintained at a healthy rate of 1.25% as onMarch31, 2010

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 Union Bank of India

Chapter 4

Objective of the Study

The objective of the current project is to conduct a diagnostic study of the Coimbatore cluster
with a view to develop a one-point reference document which will provide a platform to
highlight the operational aspects of prominent industries present in the cluster, which include
engineering and textiles.

Methodology

1. Desk Research; - A detailed review of relevant literature for the Coimbatore cluster was
conducted at this stage. This was complemented by a literature review of the prominent
industries in the cluster.

2. Questionnaire Development; - In-depth desk research was conducted to construct a detailed

questionnaire for survey focusing on the respective sectors. A survey of MSMEs through the
means of a structured interview was conducted for fulfilling the objective.

3. Survey; - The survey was conducted on companies from each sector, operating in the cluster;
which were randomly selected. The survey was done by a market research agency.
Companies fulfilling the criteria of having annual turnover below ` 1,000 mn for FY10 and
engaged in manufacturing activities were selected for the study.

4. Collection of Information; - All data and information gathered through surveys, information
available in public domain, data gathered from firms, etc. was collated for the study.

5. Analysis of data and information; - All information was scrutinized and analyzed to explore
the dynamics of the cluster.

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 Union Bank of India

6. Report Writing; - The outcome of the project including the analysis, results and key findings
were written in the form of the current report.

7. Survey; - The survey was conducted on companies from each sector, operating in the cluster;
which were randomly selected. The survey was done by a market research agency.

Key Areas of Operations

The business operations of UNION BANK OF INDIA can be broadly classified into the key
income generating areas such as Retail Banking, International Banking, Agri-Banking and
Treasury operations. The functioning of some of the key divisions is Key Business Areas of the
Bank

UNION BANK OF INDIA

Retail Banking International Corporate Treasury

Banking Banking

a) Retail Banking

Retail banking segment is growing rapidly in the Indian banking industry. Every bank wants to
grow in this particular segment because of the higher margins. UNION BANK OF INDIA is also
showing a strong growth in this business segment. The retail banking business provides financial
products and services to its retail customers. The bank provide housing, retail trade, automobile,
consumer, education and other personal loans and deposit services, such as demand, savings and
fixed deposits, for our customers. In addition, UNION BANK OF INDIA distribute products
such as global debit cards and global credit cards. The bank also provides utility services such as
bill payment. The bank also distributes third-party products, including mutual fund products and

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 Union Bank of India

general and life insurance policies. Development of efficient ways of reaching to the customers
and processing transactions is a key element of the banks goal to expand its profitability and to
capitalize on opportunities for organic growth. The bank has sought to strengthen the information
technology through development of its core banking services and other initiatives. UNION
BANK OF INDIA has made progress towards networking, computerizing and interconnecting its
branches, ATMs and other delivery channels. As at September 30, 2006, more than 80% of its
business was through computerized network. In addition, the bank has introduced Internet
banking for customers at its computerized branches.

b) International Banking

The bank had a robust growth in International Banking Business. The foreign exchange turnover,
which was Rs361.02bn in 2004-05, reached the level of Rs408.94bn during the year, registering
a growth of 13.27%.The bank is having a correspondent relationship with 345 leading
international banks at all major international centers. The bank has entered into Rupee Drawing
Arrangements (RDA) with 23 international banks and 13 exchange houses in the Middle East.
The bank has also introduced Internet-based On-line Remittance Product for Non-Resident
Indians (NRIs) in U.K. and U.S.A as well as for exchange houses in the Middle East. The bank is
one of the leading players in the bullion market and offers various financial products related to
bullion at 10 centers in the country.

c) Corporate Banking

The Corporate Banking Segment of the bank offers various loan and fee-based products and
services to large corporate, Small and Medium Enterprises (SMEs) and to the agriculture sector.
In order to give a boost to the SME segment and to agriculture lending, the bank set up SME
cells and adopted cluster-centric approach for agriculture lending in areas with rich potential for
such activity. The bank also experimented with new delivery models for credit, including setting
up low cost rural ATMs. The bank also focused on micro-finance business as a convenient
distribution channel for its rural as well as low income customers.

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 Union Bank of India

d) Treasury

Besides the traditional role of liquidity management and maintenance of statutory requirements
like Statutory Liquidity Ratio (SLR) and Cash Reserve Ratio (CRR), treasury operations focused
on judicious investments, derivative transactions for hedging customers financial exposures as
well as its own balance sheet exposures. Bullion trading also played an important role in treasury
operations and products like metal loans and gold forwards were popularized. The bank has a
well laid down treasury policy and risk management systems for undertaking such transactions

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 Union Bank of India

Chapter 5
CUSTOMERS SATISFACTION

Customer satisfaction refers to the extent to which customers are happy with the products and
services provided by a business. Customer satisfaction levels can be measured using survey
techniques and questionnaires

DEFINITIONS:
1) Customer satisfaction is equivalent to making sure that product and service performance
meets customer expectations.

2) Customer satisfaction is the perception of the customer that the outcome of a business
transaction is equal to or greater than his/her expectation.

3) Customer satisfaction occurs when acquisition of products and/or services provides a

minimum negative departure from expectations when compared with other acquisitions Gaining
high levels of customer satisfaction is very important to a business because satisfaction customers
are most likely to be loyal and to make report orders and to use a wide range of Services offered
by a business

There are many factors which lead in high levels of customer satisfaction including.
Products and services which is customer focused and hence provide high levels of value
for money. What is clear about customer satisfaction is that customers are most likely to
appreciate the goods and services that they buy if they are made to feel special. This occurs when
they feel that the products and services that they buy have been specially produced for them or
for people like them.

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 Union Bank of India

BENEFITS OF CUSTOMER SATISFACTION

The importance of customer satisfaction and support is increasingly becoming a vital business
issue as organization realize the benefits of Customer Relationship Management for providing
effective customer service. Professionals working within customer-focused business or those
running call centers or help desks, need to keep informed about the latest customer satisfaction
techniques for running a valuable customer service function. From small customer service
departments to large call centers, the importance of developing a valued relationship with
customers using CRM is essential to support customer and long-term business growth.

What Do Customers Want?

Before we begin to create tools to measure the level of satisfaction, it is important to develop a
clear understanding of what exactly the customer wants. We need to know what our customers
expect from the products and services we provide. Customer expectations have two types
1) Expressed
2) Implied

Expressed:-
Customer Expectations are those requirements that are written down n the contract and agreed
upon by both parties for example, product specifications and delivery requirements .Suppliers
performance against these requirements is most of the items directly measurable.

Implied:-
Customer Expectations are not written or spoken but are the ones the customer would expect
the supplier to meet nevertheless. For example, a customer would expect the service
representative who calls on him to be knowledgeable and competent to solve a problem on the
spot. There are many reasons why customer expectations are likely to change overtime. Process
improvements, advent of new technology, changes in customers priorities, improved quality
of service provided by competitors are just a few examples. The customer is always right.
Suppliers job is to provide the customer what he/she wants, when he/she wants it. Customer
satisfaction is customers perception that a supplier has met or exceeded their expectations.

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 Union Bank of India

WHAT CONSTITUTES SATISFACTION?

We cannot create customer satisfaction just by meeting customers requirements fully because
these have to be met in any case. However failing short is certain to create dissatisfaction Major
Attributes of customer satisfaction in banking industry can be summarized as:
Product quality
Premium Outflow
Return on Investment
Services
Responsiveness and ability to resolve complaints and reject reports.
Overall communication, accessibility and attitude.

WHAT ARE THE TOOLS?

Customer expectations can be identified using various methods such as:
Periodic contract reviews
Market research
Telephonic interviews
Personal visits
Warranty records
Informal discussions
Satisfaction surveys
Depending upon the customer base and available resources, we can choose a method that is most
effective in measuring the customers perceptions. The purpose of the exercise is to identify
priorities for improvements. We must develop a method or combination of methods that helps to
continually improve service.

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 Union Bank of India

CUSTOMER SATISFACTION SURVEYS

Formal survey has emerged as by far the best method of periodically the customer satisfaction.
The surveys are not marketing tools but an information gaining tool. Enough homework needs to
be before embarking on the actual survey.
This includes:
Defining Objectives of the Survey
Design Survey approach
Develop questionnaires and forms
Administer Survey (Email, Telephone or Post)
Method of compiling data and analyzing the findings
Format of the report to present the findings

There is no point in asking irrelevant questions on a customer satisfaction questionnaire.

The basic purpose is to find out what we are doing right or wrong. Where is the scope
for improvement, where do we stand vis--vis other suppliers. How we can serve the customer
better?
A customer satisfaction measurement survey should at least identify the following objectives:
Importance to customers (Customers priorities)
Customers perception of suppliers performance
Your performance relative to customers priorities.
Priorities for improvement
Survey forms should be easy to fill out with minimum amount of time and efforts on
customers part. They should be designed to actively encourage the customer to complete the
questions. Yet they must provide accurate data should also be sufficiently reliable for
management decision making. This can be achieved by incorporating objective type questions
where customer has to rate on scale of say 1 to 10. For repeated surveys, you could provide the
rating that was previously accorded by the customer. This works like a reference point for the
customer. Space should always be provided for the customers own opinions this enables them to
state any additional requirements or report any shortcomings that are not covered by the
objective questions.
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 Union Bank of India

Normally, we deal various personnel at various levels in the customers organization the buyer,
user, receiving inspector, finance and purchase person etc. surveying a number of respondents
for each customer gives a complete perspective of customer satisfaction. It may be necessary to
device a different questionnaire for each of them.
Respondents must be provided a way to express the importance they attach to various
survey parameters. Respondents should be asked to give a weighting factor, again on a rating
scale of say, 1 to 10, for each requirement. This gives a better indication of relative importance
of each parameter towards overall customer satisfaction and makes it easier for suppliers to
prioritize their action plans by comparing the performance rating (scores) with importance rating
(weighing). `

CONSUMER RESEARCH IN DIFFERENT DISCIPLINES

A considerable body of literature exists on consumption, consumer behavior and
consumer decision making process. Most of the consumer research focused on adopter
categories, habits, attitudes and intentions rather than on actually measuring the satisfaction level
with the service.

CONSUMER SATISFACTION PROCESS

The paramount goal of marketing is to understand the customer and to influence buying
behavior. The process can be depicted as follows:-
Need recognition- realization of the difference between the desired and the current situation
that serves as a trigger for entire process.
Search for information.
Pre purchase alternative evaluation.
Consumption (utilization of the procured option)
Post purchase alternative re-evaluation.
Divestment (disposal of the unconsumed product and its remnants)

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 Union Bank of India

WAYS FOR MAINTAINING RELATIONS WITH THE CUSTOMERS

ADOPTED BY UNION BANK OF INDIA

The ability of the banking industry to achieve the socio-economic objectives and in the
process bringing more and more customers into its fold will ultimately depend on the satisfaction
of the customers. We have a strong belief that a satisfied customer is the foremost factor in
developing our business.
A need was felt by us at Union bank of India that in order to become more customers friendly the
Bank should come out with Charter of its services for the customers. Citizens 'Charter concept
was considered as a base instrument to fill this need and accordingly this document was
prepared. These documents were made in consultation with the users and high light sour Bank's
commitments towards the customer satisfaction, thus ensuring accountability and responsibility
amongst its officials and staff. This Code for customers not only explains our commitment and
responsibilities along with the redressed methods but also specifies the obligation on the part of
customers for healthy practices in Customer-Banker relationships.
This is not a legal document creating rights and obligations. The Code has been prepared
to promote fair banking practices and to give information in respect of various activities relating
to customer service we wish to acknowledge the initiative taken by the Ministry of Finance,
Government of India and Ministry of Administrative Reforms and Public Grievances for
encouraging us to bring out this Code.
We maintain constant consultations with our clientele through various Seminars,
Customer Meets, etc. to evaluate improve and widen the range of service to customer. However,
all our customers are requested to keep us informed of their experiences about the various
services rendered by the Bank and feel free to comment on this Code. We intend to bring it out in
many Regional Languages in subsequent years.

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 Union Bank of India

COMMON PRACTICES FOLLOWED BY UNION BANK OF INDIA

BRANCHES
Display business hours.
Render courteous services.
Attend to all customers present in the banking hall at the close of business hours. Provide
separate 'Enquiry' or 'May I help you' counter at large branches. Offer nomination facility
to all deposit accounts (i.e. account opened in individual capacity) and all safe deposit
locker hirers (i.e. individual hirers).Display interest rates for various deposit schemes from
time to time.
Notify change in interest rates on advances.
Provide details of various deposit schemes/services of the Bank.
Issue Demand Drafts, Pay Orders, etc
.Display Time-Norms for various banking transactions.
Pay interest for delayed credit of out station cheques, as advised by Reserve Bank of India

(RBI) from time to time.

Accord immediate credit in respect of outstation and local cheques up to a specified limit
Subject to certain conditions, as advised by RBI from time to time.
Provide complaint/suggestion box in the branch premises.

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 Union Bank of India

CHAPTER 6
SURVEY REPORT
DATA ANALYSIS & INTERPRETATION
To know customer view about union bank of India, I have done survey of 20 peoples and ask
them certain set of question:

1. When survey respondent were asked, do you have an account in this bank?

BANK ACCOUNT

100
90
80
70
60 95%
50
40
30
20
5%
10
0
YES NO

INTERPRETATION
This bar diagram shows how many people are having bank account.
95% of the people are having bank account where as 5% of the people dont have an bank
account

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 Union Bank of India

2. When survey respondent were asked, which type of account do you have?

TYPES OF BANK ACCOUNT

fixed A/c
26%

recurring A/c
5% saving A/c
58%

current A/c
11%

INTERPRETATION

This pie diagram show which all bank account people are having.

55% people are having saving account.

10% people are having current account.

5% people are having recurring account.

25% people are having fixed account.

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 Union Bank of India

3. When survey respondent were asked, what is the purpose of opening an account in this
bank?

45

40

35

30
security
25
interest
20 good relation
45%
15
35%
10
15%
5

0
security interest good relation

INTERPRETATION:

This bar diagram show how people are known about bank account

45% people open an account for security

35% people open an account for interest

15% people open an account for good relation

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 Union Bank of India

4. When survey respondent were asked, how did you come to know about the facilities
provided by this bank?

PUBLIC AWARENESS

45
40
35
30
25 NEWS PAPER
20 ADVERTISEMENT
15 AGENT
45% FRIEND
10
30%
5 10% 10%

NTERPRETATION:

This bar diagram shows how many people know about bank account.

10% people are aware about news paper.

30% peoples are aware about advertisement.

45% peoples are aware about agent.

10% peoples are aware about friend.

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 Union Bank of India

5. When survey respondent were asked, which types of features you like?

FEATURES

60

50

40
E-BANKING
NEW SCHEMES
30
55% ATM

20

25%
10 20%

0
E-BANKING NEW SCHEMES ATM

INTERPRETATION:

This bar diagram shows how many people like the features of this bank.

20% peoples like e-banking.

55% peoples like new schemes.

25% peoples like ATM.

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 Union Bank of India

6. When survey respondent were asked, do you think that the private sector is better than
public sector?

WHICH IS BETTER

80

70

60

50 YES
80% NO
40

30

20
20%
10

0
YES NO

INTERPRETATION:

This bar diagram shows how many people says which is better.

80% people say that private sector is better.

20% people say that public sector is better.

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 Union Bank of India

7. When survey respondent were asked, which sector do you have prefer?

INTERPRETATION

This bar diagram shows the people are prefer sector.

70 % of people are using public sector bank.

30 % of people are using private sector bank.

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 Union Bank of India

8. When survey respondent were asked, do you think the union bank is safe for your
money?

SAFE FOR MANY

15%

YES
NO

85%

INTERPRETATION

This bar diagram shows how many people say that for safe of money

85% people are says that to safe the money.

15% people are says that not for safe of money.

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 Union Bank of India

9. When survey respondent were asked, youre level of satisfaction with union bank?

SATISFACTION

50
45
40
35
VERY SATISFIED
30
50% NORMAL SATISFIED
25
20 DISSATISFIED
15 30%
10 20%
5
0
VERY SATISFIED NORMAL SATISFIED DISSATISFIED

INTERPRETATION;

This bar diagram shows the people are preferring sector:

30 % of people are very satisfied

50 % of people are normal satisfied

20 % of people are dissatisfied

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 Union Bank of India

10. When survey respondent were asked, If you have an option against union bank you will
go for--

35

30

25
SBI
20
AXIS
35%
ICICI
15
25% OTHERS
20%
20%
10

0
SBI AXIS ICICI OTHERS

INTERPRETATION

This bar diagram shows the how many people are go for other bank.

20 % of people go for state bank of India (SBI)

25 % of people go for AXIS bank

20 % of people go for ICICI bank

35% of people go for other bank

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 Union Bank of India

Chapter 7
LIMITATIONS:-

The time given for the summer internship i.e. 8 weeks was not sufficient enough to study
and understand the retail loans approval process of the Union bank of India.

The banks have their own confidential information and it was very difficult to make the
project and analyze it on the basis of hypothetical information

SUGGESTIONS:-

UNION BANK OF INDIA has this time ranked 5th among all the Nationalized banks. The
reason for its ranking was the number of NPAs it had. It was found that a number of retail
loans ended up in NPAs. UNION BANK OF INDIA needs to develop a competitive edge
and the managers and the assistants need to keep a tab on the loans given.

Usually the managers would only fulfill their required target and then would forget about
more borrowers. They need to have more borrowers both for small and big loans.
Many times they pass a loan without the proper appraisal, i.e. the client may lack either the
projected and estimated balance sheet or the proper documents. In such cases there should
be a strict protocol followed

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Chapter 8
CONCLUSION:-

As discussed in the project above, Credit Appraisal appears to be the back bone of the banking
institution. It is equally important and dangerous, as there is always the chance of default
or some other risk. After dealing with almost every aspect of loans and advances one can
summarize that with a little bit of strict measures and a keen eye and understanding of a
companys balance sheet one can very well save the institute the risk other than the default risk.
Even the default risk can be to a certain limit mitigated, if we before sanctioning the amount
check the profile of the customer. Industry Report, banks own experiences and the ability of the
borrower to run his enterprise professionally are certain things one can check. A very crucial
aspect of credit appraisal is the

Credit rating
Union bank has introduced their own Internal Rating system of all borrowers enjoying/seeking
credit limits above Rs. 2 laces. The rating grades range from CR1 to CR8. Credit ratings up to
CR5 are investment grade. CR6 toCR8 are non-investment grade as per the loan policy of the
bank. Migration in credit rating

Especially downward migration should be discussed in detail and road map to improve the credit
rating has to be drawn up/implemented. A lot of times for some reasons, credit report is not
submitted and the submission of the proposal and its sanctioning is done without it, while
keeping in mind other necessary factors. It is to be seen and made mandatory that the credit
report must accompany the proposal as it gives a very clean and clear picture of the borrowers
credit worthiness. In order to potential NPAs it is significant to have a fair understanding of the
borrowers financial health. Thus, at least last three years balance sheet and Profit and loss
accounts should be obtained, in addition to projections of next 2 years. Now, most of the time
customers to prove their credit worthiness make the estimated balance sheets unrealistic,
such areas should be stressed and it should be checked whether the borrower has the ability to go
as per the projected Balance Sheet.

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The important factors which should be given special consideration are trend insoles, both
quantity and quality, it should be positive with the industry trend. Disparities in the sales pattern
should be analyzed properly. Profitability should be critically analyzed; it should be checked
with the existing norms of the balance sheet. The distribution of profits and its impact at the
reserve and surplus along with the tangible net worth should be seen. Increase/decrease in the
term liabilities and its effect on capital employed should be scrutinized too. Increase or
decrease in the investments of the borrower also needs to be looked at, it should be seen that the
investments that the borrower is making should yield some income. The non current assets is
another important aspect, it should be seen and commented upon. The debt equity ratio should be
seen, if the debts are increasing and equity decreasing then such case should be discussed.
Working Capital and its assessment should be done before taking a decision about the borrower.
Credit rating is a very important step in deciding whether to sanction or decline a proposal. All
the stages should be vetted and the necessary action should be taken while making any decision

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 Union Bank of India

Chapter 9
ANNEXURE

FORMATE OF CUTOMER SURVEY REPORT

SURVEY ON PROJECT OF CUSTOMER SATISFACTION ON UNION BANK

NAME:-

CONTACT NO.:-

1. Do you have an account in this bank?

a. Yes.
b. No.
2. Which type of account do you have?
a. Saving Account.
b. Current Account.
c. Recurring account.
d. Fixed Account
3. What is the purpose of opening an account in this bank?
a. For Securities
b. For Interest
c. Good Relation
4. How did you come to know about the facilities provided by this bank?
a. News Paper
b. Advertisement
c. Agent
d. Friend
5. Which type of feature that you like?
a. E-banking
b. New Schemes
c. ATM

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6. Do you think that the Private Sector is better than the Public Sector Bank?
a. Yes.
b. No.

7. Which sector do you have to prefer?

a. Public Sector
b. Private Sector

8. Do you think the UNION BANK is a safe for your money?

a. Yes.
b. No.

9. Your level of satisfaction with UNION BANK?

a. Very Satisfied
b. Normal Satisfied
c. Dissatisfied

10. If you will have an option against UNION BANK you will go for-
a. SBI
b. AXIS
c. ICICI
d. OTHER

COMMENT:-_________________________________________________________PROJECT

GUIDE: Mrs. Byshi Panikar SURVEY

CONDECTED BY:

T.Y.B.COM (B & I)

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 Union Bank of India

BIBLIOGRAPHY

BOOKS

1. Financial Marketing, Author Name:- D.K. Bandgar, Edition:- Fifth,

Semester:- Four (SYBBI)
2. International Banking And Finance, Author Name :- Deepak Abhyankar,
Edition Sixth, Semester :- Fifth (TYBBI)

WEB SIDE

www.wikipedia.org/wiki/unionbank
www.indianinfoline.com
www.allbanksolution.com
www.financialexpress.com/unionbank
www.moneycontrol.com/unionbank/financialstatement
www.timesofIndia/unionbank
www.indiaeducation.net
www.rbi.org.co.in
www.unionbank.com

NEWS PAPER

Times of India

Time of Economic

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