Insurance Services
Your insurance portfolio should protect what you've earned and preserve your wealth for future
generations. If you need insurance for estate or financial planning or for business or personal
protection, the specialists at UnionBanc Insurance Services can help.

Life Insurance
Life insurance is an essential foundation for building your financial and estate plans. Insurance
professionals at UnionBanc Insurance Services can help you select a policy to protect your
family's current lifestyle, plan for future needs like college tuition and retirement, or protect a
family-owned business.

Long-term Care Insurance
When planning insurance strategies, don't overlook the possibility that you or a loved one may
need long-term care or custodial services because of a chronic illness, disability, or cognitive
impairment. As life expectancy increases, the odds of you or a loved one needing long-term care
are growing, and so are the costs, so protect yourself from this potential financial impact.

Policy Reviews
And because insurance costs have decreased in the past several years, there has never been a
better time to analyze your existing policies to ensure that you have the right insurance at the
right price. Ask a UnionBanc Insurance Services specialist about a policy review to learn more.

Union bank of India
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, ³GOOD 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 Bank’s 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 Bank’s 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

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.


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


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

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
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.

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

Details for Remittance Savings & Deposits . Union Prompt E-Tax -Customs and Direct taxes. union miles. monthly income scheme. Cards -Classic /Silver / Gold. foreign currency loans. EMI calculator. union smile. union health. trade finance for importers. union flexi-deposit. immovable  property. union healthcare Demit ± demit accounts. and     union top up. Central Excise and Service Tax Trade Finance ± trade finance for exporters.Union Unfixed . no  frills saving account. online share trade Payment NRI Banking   Remittance -Union E-Remit. Union Centralized Debits/Credits. union classic current account Retail Loans ± union cash.Foreign Currency Deposit Loan &Services ± house loans. foreign currency loans. Add-On Cards Insurance & Investment ± mutual fund.FCNR(B). loans against deposit. deposit reinvestment certificate.BANKING  Accounts & Deposits ± cumulative deposit scheme. multi gain savings account. DGFT. R FC.NRO Non Resident Ordinary A/c Scheme. union super salary account. and shares or debenture Payments -Union Bill Pay Corporate Banking    CMS-Union Speed. correspondent banking . union education. Corporate Credit Cards. NRE Non Resident  External Rupee. senior citizens scheme. union home.

Non life Insurance ± Corporate Agency.    Insurance . 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 .

3. and high Sum Assured benefits. apart from death benefits to the loved ones in case of the insured’s unfortunate demise. 2. The plans on offer under this scheme are: Premier Protection Plan:This is a pure term plan with low premiums over fixed o tenures. 1. Jeevan Safar Plus:A traditional life insurance plan that guarantees 125% sum o assured apart from additional bonuses accumulated during first 5 years of policy term. Star Union Dai-ichi Wealth Plans These are plans that make sure that your life is insured against the unlikely event of your demise and at the same time provide you with an avenue to increase your wealth. The plans offered are: . The plans offered under this scheme are: Jeevan Ashray: A simple savings plan that provides interests on the premium o investments. All these products have been designed to meet the insurance needs of both individuals and groups of individuals. Some of the products offered by them are mentioned below. Star Union Dai-ichi Saving Plans These are plans that not only give you the advantage of having life insurance cover but also the advantage of having a plan that provides for long term savings. Star Union Dai-ichi Life Insurance Protection Plans These are plans that are meant to provide protection to the financial future of your family in the unfortunate event that something terrible were to happen to you. as well as death and maturity benefits.UNION BANK INSURANCE SERVICE Star Union Dai-ichi Life Insurance Plans In India The company offers its customers a wealth of products to choose from. Maturity and death benefits are also applicable. Guaranteed Money Back Plan: A savings plan that provides guaranteed payouts o after every 5 years to the insured.

Bright Child: A comprehensive plan that provides death and maturity benefits. and guaranteed monthly income benefits applicable. Star Union Dai-ichi Credit Life Plans These are insurance plans that you can take to make sure that if you have taken a loan and something happens to you while that loan is still being repaid. Coverage for joint borrowers is also available. Elite Assure Plan:This is a wealth creation plan wherein customers can choose o between 5-5-5 or 7-7-7 option (5/7 years premium collection. o Two choices of funding are available . To address just this concern the company offers the following insurance plans.Wedding Endowment and Career Endowment. Maturity and death benefits are applicable. with the option to choose o among 4 funds. . o Immediate Annuity Plan: A retirement savings plan that will help you build a retirement corpus that pays out guaranteed annuity after retirement in flexible frequencies. Dhan Suraksha Plus: A ULIP that allows you the flexibility to choose between 4 o different types of funds as specified at the time of policy purchase. without affecting the actual funds meant for the child’s future. Top-up options.Wealth Builder: A single premium investment plan. Death. 4. then your family does not have to bear the burden of paying it back. death and maturity benefits are available. 6. In case of death of insured within policy term. Star Union Dai-ichi Life Insurance Child Plans The future of your child could be uncertain if you were not there to take care of it. the remaining premium will be waived off and death benefit will be paid out. and final 5/7 years repayment respectively). maturity. Star Union Dai-ichi Retirement Plans If you have ever sat and wondered what you will do for an income once you retire then you need to look into the retirement plans offered by Star Union Dai-ichi Life Insurance. 5. next 5/7 years incubation. The plans offered under this scheme are: o Loan Suraksha: This is a decreasing term insurance plan that offers protection to dependents against any past or future loans taken by the insured.

customers can voluntarily opt for these schemes after paying the applicable premium. The annual premium for the life cover amounts to Rs 330.700 accountholders . o Group Term Insurance Scheme in lieu of EDLI: This is a group term plan that offers life insurance cover to employees working at a firm and covered by Employees Provident Fund. Star Union Dai-ichi Group Term Plans These are plans that can be taken by companies to make sure that the future of the families of their employees is taken care of. Both products offer sum assured of Rs 2 lakh each to accountholders in the age-group of 18-50 years.3 lakh accounts opened since August 2014 under the PMJDY had now become eligible for using overdraft facilities. such as company employees. The premium amount will be directly debited from customers' savings accounts once they opt for it. where the cover is an in-built feature. Out of these. The plans offered under this scheme are: o Group Term Insurance Scheme: This is a one-year group term insurance plan (renewable) meant to provide cover to groups of people working/operating under a single umbrella. welfare associations and so on. 7. The bank also said that over 2. Death benefits are applicable. close to 6. Union Bank of India joins hands with insurers to roll out life and accident insurance policies Unlike the accidental death cover offered through the Rupay card linked to Pradhan Mantri Jan Dhan Yojana(PMJDY) bank accounts. Death benefits and higher life cover compared to EDLI plans are applicable.o Shiksha Suraksha 2: Another decreasing term insurance plan. this plan will provide protection to the families of educational loan takers against the risk of the insured’s death during the loan repayment tenure. while the accidental death cover will cost Rs 12 per year. and profit from investments is shared among the insured.

etc. services to its customers through core banking solution. apart from DEMAT services. United Arab Emirates. The Bank is a member of Cash Tree consortium and alohas bilateral arrangement with State Bank of India. COMPANY PROFILE Union Bank of India (UBI) is one of India's largest state-owned banks (the government owns 55. . He Union Bank of India has 2261 branches out which1031 branches are under CBS. The usage of the overdraft limit amounted to Rs 27 lakh. and Shanghai. 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.individual as well as corporate. All the ATMs are inter-connected through the Bank’s ATM Switch. sustained growth. consistent profitability and development of new technologies bank has ensured complete customer delight. It has representative offices in Abu Dhabi.43% of its share capital). etc. Peoples Republic of China. facilitating speedier transmission of MIS data (Network Map). Cash Management services. thus facilitating on-line operations in case of CBS customers.45 billion and all the bank's branches have been networked with its 1135 ATMs.had availed of the facility. messaging system. International debit card. The Bank is using VSAT network for connecting branches and ATMs wherever leased line connectivity is not feasible.The network also facilitates the implementation of Core Banking Solution. fund transfers. airway eticketing kiosk. living up to its image of. The bank with its efficient value-added services. according to Union Bank's chairman and managing director Arun Tiwari. connecting 194 branches/extension counters and 316 ATMs. is listed on the Forbes 2000. UNION BANK OF INDIA Net connects 65 Offices and 984 branches located in 323centers. enabling the Bank’s ATM cardholder access to over 20000 ATMs across the country.. union demit. Mahatma Gandhi. Its online Telebanking facility is available to all it score Banking Customers . Bank is offering credit adds. Kinas ATM. It has assets of USD 13. online tax payment facility. home loan. ³GOOD PEOPLETO BA NK WITH´. We have 590 VSATs operational.

mutual funds. rural artisans. The Bank operates in all the areas including retail lending. Bank’s lending also caters to the rural and semi urban centers. Along with 13 other banks. Business Operations Union Bank has huge and varied customer base approximating to 24 millions. The transformation process focuses on four key initiatives a) Retail Asset (marketing & processing) b) SME marketing & processing) . commodities. father of the Nation in the year 1921. Bank has opened 198 “Village Knowledge Centers” to provide information to the local community on better agriculture practices.Profile of Union Bank of India For Dun & Bradstreet Union Bank of India was established on Nov 11. on-line trading. wealth management services through tie. marketing facilities and financial education. international banking and investments & treasury. Union Bank has the distinction of making profits consistently for the last 89 years since inception. micro & medium enterprises in these areas. people and organizational structure. Bank places customer at the centre of all its operations and has transformed the process. corporate banking. Bank is targeting customers from all demographic and economic profiles and introducing products and services to meet their needs. 1919 and is head quartered in Mumbai.up with other FIs. personal banking. Bank also offers third party products like life and general insurance. The registered Office of the Bank was inaugurated by Mahatma Gandhi. 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 bank’s business model. financing Agriculture and allied activities. Union Bank of India was nationalized in the year 1969 in the first phase.

Union Loan points for Retail Products etc. Bank plans to open 500 new branches in the next six months for which it has received licenses from RBI. phone banking and Mobile Banking. on line application for products and services and online redressed of grievances.Union Bank is the first large bank to achieve 100% CBS roll out. Bank has announced opening 100 specialized Business Banking branches across the . internet banking. Diversification Union Bank in partnership with Bank of India and Dai-Ichi of Japan has formed a subsidiary for distribution of Life insurance products. A fully fledged overseas branch was opened in Hong Kong. Network and distribution The business is grouped under various Verticals and well defined “Business Strategic Units” were formed. commodities kept at NCMSL warehouses. online NEFT free of cost. Bank has taken lead to establish alternate delivery channels in the form of ATMs. which will drive the growth. which has started selling the products. Bank has entered into Mou with NCMSL for financing against warehouse receipts for agri. 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 introduced many technology based services like RTGS. Bank has signed an agreement with Belgian KBC group for setting up a joint venture AMC in India. Australia. Bank has plans to deploy more number of Marketing Officials at many other places. Bank has representative offices in Abu Dhabi and Shanghai and is in the process of opening its office in Sydney. corporate credit. 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. Bank has placed number of Marketing Officials at various centers in UAE and Shanghai.c) Branch sales and services (improving the customer experience in the branch) d) Centralization of key processes Bank has brought all its branches under Core banking solutions . To serve the varied banking needs of the NRIs. Bank has a network of more than 2500 service outlets which includes specialized branches for MSME (SME SARALS).

99227 crore as on Dec’07 .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. The brand and the promises Bank has adopted a simple new logo for universal appeal and to aid top of mind recall.1.32% & BASEL II at 13.country to focus exclusively on MSME sector with turnaround time of 2 weeks for sanction of proposals. The asset quality recorded a significant improvement with steep reduction in Net NPAs from 0.978 crore as on 31st Dec’08.Return on average assets improved from 1.registering a growth of 25.41 % as on Dec’08.647 crore from Rs.33 % over Dec’07. Growth & Performance Total business of the Bank at the end of Dec’08 stood at Rs.625 crore registering a growth of 28.The bank’s total deposits as on 31st Dec’08 reached a level of Rs.an increase of 30. 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 .The Capital Adequacy Ratio of the Bank (BASEL I) is at 12.2.35% in Dec’07 to 0.The net interest margin of the Bank increased to 2.10% to 1.29. The new logo symbolizes the qualities and values we stand for.14% in Dec’08 and the Gross NPAs from 2.22% over Dec’07.31% in Dec’07 to 1.97% for the nine months period ended Dec’08. Bank has launched mobile banking facility “U mobile” which facilitates limited transactions and other services through mobile phones.22.68%. .Blue standing for the commitment and the Red for the passion the Bank brings to the work.66%.92.92% in Dec’08 indicating more efficient use of Funds. Gross advances of the Bank reached a level of Rs.


49 13.302.52 10.31 3.45 (-) Acc.78 8.Union Bank of India .49 228.937.36 705.984.702.01 9.20 1.411.220.58 9.647.93 10.483.396.12 Reserves & Surplus 12.995.098.83 103.00 0.00 0.858.08 122.512.84 Assets Gross Block 3.598.909.292.799.86 4.315.403.00 0.00 0.94 155.00 Sundry Debtors 0.215.90 4.08 175.35 7.95 202.328.43 Provisions 0.363.80 Misc.676.319.56 58.437.01 9.97 9.647.95 7.84 Loans And Advances 181.53 42.43 8.658.39 3.633.49 Unsecured Loans 222.00 0.35 741.35 8.952.26 5.461.712.00 (A+B+C+D+E) ASSETS 0.36 679.00 0.776.53 138.868.822.96 33.541.44 15.40 Total Current Assets 197.24 Current Liabilities 6.347. Depreciation 1.740.969.00 0.74 138.68 10.996.00 0.884.98 3.46 77.00 0.675.Last 5 years balance sheet of union bank of India Balance sheet .18 99.62 Net Block 798.08 115.483.78 189.00 0.555.21 1. 62.95 7.78 189.88 115.328.050.64 TOTAL LIABILITIES 255.14 167.00 0.836.541.643.39 88.799.06 12.039.12 505.00 Total Current Liabilities 6.720.50 893.12 505.69 15.Union Bank of India Particulars Mar'12 Mar'11 Mar'10 Mar'09 Mar'08 Liabilities 12 Months 12 Months 12 Months 12 Months 12 Months Share Capital 661.70 Secured Loans 17.097.67 5.118.55 635.549.84 Last 5 years profit & loss a/c of union bank of India Profit & Loss .19 Net Worth 14.849.442. Expenses TOTAL 0.83 151.00 0.943.678.41 3.86 105.966.423. 3.61 13.49 228.106.83 151.00 Cash And Bank 15.399.194.08 115.63 Inventories 0.67 5.43 NET CURRENT ASSETS 190.764.51 641.57 Investments.00 0.69 6.678.96 7.86 132.442.452.388.966.14 54.29 170.96 79.33 505.00 0.00 0.43 8.00 255.65 2.760.106.44 Capital Work in Progress.101.411.32 471.14 20.

327.074.24 -0.69 10.89 17.600.00 Personal Expenses 2.00 0.98 132.479.57 2.00 0.117.383.62 873.152.00 487.30 14.00 0.00 0.00 0.00 0.6 -0.684.00 NET SALES 22.00 0.00 0.70 10.00 Provisions Made 975.88 1.58 Excise Duty 0.31 1.00 0.075.94 TOTAL EXPENDITURE 6.56 2.777.71 2.726.835.874.14 136.35 2.02 1.422.465.833.00 0.00 0.326.14 2.21 Expenses Capitalized 0.717.075.25 244.32 Operating Profit 2.Mar'12 Mar'11 Mar'10 Mar'09 Mar'08 12 Months 12 Months 12 Months 12 Months 12 Months INCOME: Sales Turnover 22.00 0.00 Material Consumed 0.652.339.45 758.78 0.00 0.428.00 TOTAL INCOME 23.31 1.42 2.30 14.667.51 10.40 94.641.235.11 15.787.08 38.03 5.92 1.99 1.787.686.58 Other Income 0.70 10.2 Other Non Cash Adjustments 0.68 Selling Expenses 67.95 EBT 2.00 REPORTED PAT 1.00 0.65 1.00 0.36 845.66 160.360.63 34.091.27 8.68 8.00 0.6 9.83 2.510.00 3.3 -0.98 2.387.667.841.31 2.89 17.28 18.58 101.00 0.00 0.40 13.00 0.97 90.347.955.246.56 Manufacturing Expenses 0.901.56 1.123.95 2.03 EXPENDITURE: KEY ITEMS .196.24 EBITDA 3.00 0.387.10 8.25 1.42 0.354.201.123.43 2.45 155.00 EBIT 3.082.36 Interest 14.00 0.7 0.39 10.00 0.00 0.110.00 0.00 630.465.796.24 12.37 10.24 12.70 1.078.10 3.688.86 2.401.00 0.76 2.00 0.28 3.167.80 2.81 6.18 Depreciation 146.00 0.713.00 0.66 3.504.287.81 217.24 135.395.65 3.291.684.00 0.15 Profit and Loss for the Year 1.238.47 Taxes 925.49 Administrative Expenses 2.901.32 Non Recurring Items -0.383.82 Other Write-offs 0.00 Other Adjustments -0.804.55 1.

051.08.00 Shares in Issue (Lakh) 5.47 277. Proposed Dividend up from 50% to55%.Preference Dividend 10. Total Advances of Rs.81 252. 896 crore. both on assets and liabilities side.040 crore.08 34. 2010 as against         regulatory minimum of 9.051. 70. 2.37 lakh crore as on March31.075 crore.4%.16 0. 2010 as against Rs. Return on average assets1.Representative office in London opened on April 1. 1727 .18 27. Core Fee Income of Rs.505.99 40.8% Net Profits of Rs. Total Deposits of Rs. 2010 ± an increase of 22.13372 crore and Rs. compared to Rs.Annualized (Rs) 32.74% over the previous year.56 202. an increase of 22.99 55.4%.Network of 2. Pan India reach.00 0.249 crore. 2. 41.54 5. Capital Adequacy Ratio (Basel IICAR) stood at12.CASA deposits grew at 29.44 419. 2. 2.73%.277 crore and Rs.9% over  previous year.38.25% Return on equity recorded at23.18 of previous year.49 5.71 41. an increase of 23. 1. an increase of 20. Total Business of the bank stood at Rs.075crore respectively for the financial year ended March31.9%.6% over the previous year. 91. 173.18 5.00 79.46 39. Book Value per share of Rs. 1.32 5. an increase of 22.2% over the previous year.91 lakh crore as against Rs. an increase of 32.91%.051. The Bank posted a total income and net profit of Rs.243.Tier I ratio at 7.18 5. an increase of 25. Earnings per share increased to Rs.289 crore as on March31. 2009.66%. 2010.805 branchesand2327 ATMs as on March 31. 2. Retail advances grew at 33.00 0. reduced by 115 basis points over the previous year. 2. Cost to Income ratio of 40.46 FINANCIAL PERFORMANCE HIGHLIGHT of 20010-2010  Total Business size of Rs. As on March31.51%as on March31. 1. 2010. 2010.The business growth was broad-based with contribution from retail and corporate customers.0%. its     share increased by 166 basis points to 31.18 EPS . 15.00 Equity Dividend 440.00 49. 34.6%.05 Equity Dividend (%) 80. Global Expansion: Opened representative offices in Sydney (Australia) and Beijing (China).69%. 21.

18 in the previous year.81% in the previous year.crore respectively in the previous year. while cost to income ratio declined to 40. 1. 34.08 as against Rs.66% as against 41. . The Earning per share (EPS) ratio showed improvement to Rs.




51%.91% . and stood at12. calculated in line with Basel II framework. well above the regulatory bench mark of 9%. Total Capital Adequacy ratio (CAR). Bank s Tier-ICAR was 7.

 The operating expenses stood at Rs. Buoyancy in the core business operations supported by healthy growth in Non-Interest Income helped Bank achieves a 20.98% growth in previous year. 1727 crore achieved ruing last year. 2214 crore. 2508 crore compared to Rs. Bank s operating profit and net profit . Profit after tax net profit increased to Rs.15% growth in net profit. 2075 crore compared to Rs. relatively a  lower growth of 13.28% compared to 38.3082 crore in the previous year.72% to Rs. 3659 crore from  Rs. The operating profit of the Bank registered a growth of 18.

y Net-worth improved by 25. .   The return on equity stood at 23. 137. well above the regulatory benchmark of 9%. The earnings per share grew at CAGR of 34. FINDINGS  Total Capital Adequacy ratio (CAR).81% reported during last year. stood at 12.  The operating expenses registered a lower growth of 13.87.66% as compared to41.98% growth in previous year.28% compared to38.  The return on average assets is maintained at a healthy rate of 1. CAGR during the financial year 2006.18 reported during last year. 1727crore achieved during last year.08 from Rs.69% and earnings per share increased to Rs. The operating profit of the Bank registered growth of 18.18.69% and earnings per share increased to Rs.3% and 34. 2075 crore compared to Rs.76%. 41. 2010 . 173.  Profit after tax net profit increased to Rs. 8758 crore from Rs.72%.08 from Rs. 6964 crore as reported during last year.41.The return on equity stood at 23. 34.51%. 34.9% respectively Net-worth improved by 25.9% duringFY07 toFY10. The book value per share increased to Rs.76% to Rs.07 to2009-10 is at 22.Cost to Income ratio has decreased by 115bps to 40.25% as onMarch31.38 from Rs.

000 mn for FY10 and engaged in manufacturing activities were selected for the study. This was complemented by a literature review of the prominent industries in the cluster. Companies fulfilling the criteria of having annual turnover below ` 1. which were randomly selected. which include engineering and textiles. information available in public domain. .All information was scrutinized and analyzed to explore the dynamics of the cluster. .The survey was conducted on companies from each sector. Survey.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.All data and information gathered through surveys. Questionnaire Development. etc. Desk Research. The survey was done by a market research agency. . Collection of Information. was collated for the study. . 5.In-depth desk research was conducted to construct a detailed questionnaire for survey focusing on the respective sectors. operating in the cluster.A detailed review of relevant literature for the Coimbatore cluster was conducted at this stage. 4. data gathered from firms. 2. . . 3. A survey of MSMEs through the means of a structured interview was conducted for fulfilling the objective. Analysis of data and information. Methodology 1.

The functioning of some of the key divisions is Key Business Areas of the Bank UNION BANK OF INDIA Retail Banking International Banking Corporate Treasury Banking a) Retail Banking Retail banking segment is growing rapidly in the Indian banking industry. Report Writing. Survey. results and key findings were written in the form of the current report. The retail banking business provides financial products and services to its retail customers. Development of efficient ways of reaching to the customers and processing transactions is a key element of the bank’s goal to expand its profitability and to . Every bank wants to grow in this particular segment because of the higher margins. automobile. UNION BANK OF INDIA is also showing a strong growth in this business segment. consumer. . The bank provide housing. such as demand. operating in the cluster. 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.The outcome of the project including the analysis. The bank also distributes third-party products. . International Banking. In addition.6.The survey was conducted on companies from each sector. savings and fixed deposits. 7. which were randomly selected. for our customers. retail trade. The survey was done by a market research agency. Agri-Banking and Treasury operations. education and other personal loans and deposit services. 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. including mutual fund products and general and life insurance policies.

which was Rs361. In addition. c) Corporate Banking The Corporate Banking Segment of the bank offers various loan and fee-based products and services to large corporate.94bn during the year.capitalize on opportunities for organic growth. b) International Banking The bank had a robust growth in International Banking Business. The foreign exchange turnover. more than 80% of its business was through computerized network. ATMs and other delivery channels. Small and Medium Enterprises (SMEs) and to the agriculture sector. 2006. The bank has sought to strengthen the information technology through development of its core banking services and other initiatives.02bn in 2004-05. The bank has entered into Rupee Drawing Arrangements (RDA) with 23 international banks and 13 exchange houses in the Middle East.27%. and U. The bank also experimented with new delivery models for credit. reached the level of Rs408. The bank also focused on micro-finance business as a convenient distribution channel for its rural as well as low income customers.S. registering a growth of 13. UNION BANK OF INDIA has made progress towards networking. As at September 30. including setting up low cost rural ATMs.The bank is having a correspondent relationship with 345 leading international banks at all major international centers.A as well as for exchange houses in the Middle East.K. In order to give a boost to the SME segment and to agriculture lending. 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. the bank has introduced Internet banking for customers at its computerized branches. The bank has also introduced Internet-based ‘On-line Remittance Product’ for Non-Resident Indians (NRIs) in U. computerizing and interconnecting its branches. d) Treasury . the bank set up SME cells and adopted cluster-centric approach for agriculture lending in areas with rich potential for such activity.

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.Besides the traditional role of liquidity management and maintenance of statutory requirements like Statutory Liquidity Ratio (SLR) and Cash Reserve Ratio (CRR). The bank has a well laid down treasury policy and risk management systems for undertaking such transactions . treasury operations focused on judicious investments.

. 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. 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. 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. 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. This occurs when they feel that the products and services that they buy have been specially produced for them or for people like them.Chapter 5 CUSTOMERS SATISFACTION Customer satisfaction refers to the extent to which customers are happy with the products and services provided by a business. Products and services which is customer focused and hence provide high levels of value for money.

Implied:Customer Expectations are not written or spoken but are the ones the customer would’ expect’ the supplier to meet nevertheless.Supplier’s performance against these requirements is most of the items directly measurable. when he/she wants it. advent of new technology. . need to keep informed about the latest customer satisfaction techniques for running a valuable customer service function. improved quality of service provided by competitors are just a few examples. product specifications and delivery requirements . the importance of developing a valued relationship with customers using CRM is essential to support customer and long-term business growth. We need to know what our customers expect from the products and services we provide. Process improvements. Supplier’s job is to provide the customer what he/she wants. For example. changes in customer’s priorities. 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. The customer is always right.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. it is important to develop a clear understanding of what exactly the customer wants. From small customer service departments to large call centers. a customer would expect the service representative who calls on him to be knowledgeable and competent to solve a problem on the spot. What Do Customers Want? Before we begin to create tools to measure the level of satisfaction. Customer satisfaction is customer’s perception that a supplier has met or exceeded their expectations. There are many reasons why customer expectations are likely to change overtime.

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. We must develop a method or combination of methods that helps to continually improve service. . 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 customer’s perceptions. The purpose of the exercise is to identify priorities for improvements.  Overall communication.WHAT CONSTITUTES SATISFACTION? We cannot create customer satisfaction just by meeting customer’s requirements fully because these have to be met in any case.

This works like a reference point for the customer.  Priorities for improvement Survey forms should be easy to fill out with minimum amount of time and efforts on customer’s part. Where is the scope for improvement. 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. They should be designed to actively encourage the customer to complete the questions.CUSTOMER SATISFACTION SURVEYS Formal survey has emerged as by far the best method of periodically the customer satisfaction. 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. This can be achieved by incorporating objective type questions where customer has to “rate” on scale of say 1 to 10. The surveys are not marketing tools but an information gaining tool. Space should always be provided for the customers own opinions this enables them to . Yet they must provide accurate data should also be sufficiently reliable for management decision making. For repeated surveys. How we can serve the customer better? A customer satisfaction measurement survey should at least identify the following objectives:  Importance to customers (Customers priorities)  Customer’s perception of supplier’s performance  Your performance relative to customer’s priorities. where do we stand vis-à-vis other suppliers. you could provide the rating that was previously accorded by the customer. The basic purpose is to find out what we are doing right or wrong.

habits.  Pre purchase alternative evaluation. 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). receiving inspector. ` CONSUMER RESEARCH IN DIFFERENT DISCIPLINES A considerable body of literature exists on consumption. again on a rating scale of say.  Consumption (utilization of the procured option)  Post purchase alternative re-evaluation. for each requirement. CONSUMER SATISFACTION PROCESS The paramount goal of marketing is to understand the customer and to influence buying behavior. Most of the consumer research focused on adopter categories. The process can be depicted as follows: Need recognition. finance and purchase person etc. attitudes and intentions rather than on actually measuring the satisfaction level with the service.realization of the difference between the desired and the current situation that serves as a trigger for entire process.  Search for information. Normally. surveying a number of respondents for each customer gives a complete perspective of customer satisfaction.state any additional requirements or report any shortcomings that are not covered by the objective questions. user. consumer behavior and consumer decision making process.  Divestment (disposal of the unconsumed product and it’s remnants) . we deal various personnel at various levels in the customer’s organization the buyer. 1 to 10. 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. It may be necessary to device a different questionnaire for each of them.

Customer Meets. However. We maintain constant consultations with our clientele through various Seminars. We have a strong belief that a satisfied customer is the foremost factor in developing our business. This is not a legal document creating rights and obligations. 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. Citizens 'Charter concept was considered as a base instrument to fill this need and accordingly this document was prepared. 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. etc. 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. 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. These documents were made in consultation with the users and high light sour Bank's commitments towards the customer satisfaction. Government of India and Ministry of Administrative Reforms and Public Grievances for encouraging us to bring out this Code. . thus ensuring accountability and responsibility amongst its officials and staff. to evaluate improve and widen the range of service to customer. We intend to bring it out in many Regional Languages in subsequent years.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.

e.COMMON PRACTICES FOLLOWED BY UNION BANK OF INDIA BRANCHES  Display business hours.  Pay interest for delayed credit of out station cheques.  Accord immediate credit in respect of outstation and local cheques up to a specified limit  Subject to certain conditions. account opened in individual capacity) and all safe deposit locker hirers (i.e. Offer nomination facility to all deposit accounts (i. etc  .  Render courteous services.  Provide complaint/suggestion box in the branch premises. . as advised by RBI from time to time. Pay Orders. Provide separate 'Enquiry' or 'May I help you' counter at large branches.  Notify change in interest rates on advances. as advised by Reserve Bank of India (RBI) from time to time.Display Time-Norms for various banking transactions.  Attend to all customers present in the banking hall at the close of business hours.  Issue Demand Drafts. individual hirers).Display interest rates for various deposit schemes from time to time.  Provide details of various deposit schemes/services of the Bank.

CHAPTER 6 SURVEY REPORT DATA ANALYSIS & INTERPRETATION To know customer view about union bank of India. When survey respondent were asked. 95% of the people are having bank account where as 5% of the people don’t have an bank account . do you have an account in this bank? BANK ACCOUNT 100 90 80 70 60 50 40 30 5 20 10 0 95 YES NO INTERPRETATION This bar diagram shows how many people are having bank account. I have done survey of 20 peoples and ask them certain set of question: 1.

11% INTERPRETATION This pie diagram show which all bank account people are having. . 5% people are having recurring account. When survey respondent were asked.2. 25% people are having fixed account. 10% people are having current account. 26% recurring A/c. 58% current A/c. which type of account do you have? TYPES OF BANK ACCOUNT fixed A/c. 5% saving A/c. 55% people are having saving account.

3. When survey respondent were asked. what is the purpose of opening an account in this bank? 45 40 35 30 25 45 20 35 15 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 .

how did you come to know about the facilities provided by this bank? PUBLIC AWARENESS 45 40 35 30 25 20 15 10 5 0 10 NEWS PAPER 30 ADVERTISEMENT 45 AGENT 10 FRIEND NTERPRETATION: This bar diagram shows how many people know about bank account. 10% people are aware about news paper. When survey respondent were asked. 10% peoples are aware about friend. . 30% peoples are aware about advertisement.4. 45% peoples are aware about agent.

When survey respondent were asked. 55% peoples like new schemes. . which types of features you like? FEATURES 60 50 40 30 20 10 0 20 E-BANKING 55 NEW SCHEMES 25 ATM INTERPRETATION: This bar diagram shows how many people like the features of this bank.5. 25% peoples like ATM. 20% peoples like e-banking.

When survey respondent were asked. 80% people say that private sector is better. 7. 20% people say that public sector is better.6. When survey respondent were asked. which sector do you have prefer? . do you think that the private sector is better than public sector? WHICH IS BETTER 80 70 60 80 50 40 30 20 20 10 0 YES NO INTERPRETATION: This bar diagram shows how many people says which is better.

. 30 % of people are using private sector bank.INTERPRETATION This bar diagram shows the people are prefer sector. 70 % of people are using public sector bank.

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.

When survey respondent were asked. 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 DISSATISFIED . you’re level of satisfaction with union bank? SATISFACTION 50 45 40 35 30 25 20 15 10 5 0 50 30 20 VERY SATISFIED NORMAL SATISFIED INTERPRETATION.9.

If you have an option against union bank you will go for-- 35 30 25 20 15 10 5 0 20 SBI 25 AXIS 20 ICICI 35 OTHERS INTERPRETATION This bar diagram shows the how many people are go for other bank.10. 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 . When survey respondent were asked.

e. They need to have more borrowers both for small and big loans. In such cases there should be a strict protocol followed . It was found that a number of retail loans ended up in NPAs.  Usually the managers would only fulfill their required target and then would forget about  more borrowers. the client may lack either the projected and estimated balance sheet or the proper documents. 8 weeks was not sufficient enough to study and understand the retail loans approval process of the Union bank of India. 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. Many times they pass a loan without the proper appraisal.  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  UNION BANK OF INDIA has this time ranked 5 th among all the Nationalized banks.FINDINGS  The time given for the summer internship i. i.e. The reason for its ranking was the number of NPAs it had.

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. at least last three years balance sheet and Profit and loss accounts should be obtained. 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. In order to potential NPAs it is significant to have a fair understanding of the borrower’s financial health.CONCLUSION:As discussed in the project above. if we before sanctioning the amount check the profile of the customer. as there is always the chance of default or some other risk. Even the default risk can be to a certain limit mitigated. Industry Report. Credit ratings up to CR5 are investment grade. credit report is not submitted and the submission of the proposal and its sanctioning is done without it. 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 borrower’s credit worthiness. 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 company’s balance sheet one can very well save the institute the risk other than the default risk. 2 laces. bank’s own experiences and the ability of the borrower to run his enterprise professionally are certain things one can check. in addition to projections of next 2 years. A lot of times for some reasons. such areas should be stressed and it should be checked whether the borrower has the ability to go as per the projected Balance Sheet. The rating grades range from CR1 to CR8. It is equally important and dangerous. CR6 toCR8 are non-investment grade as per the loan policy of the bank. Credit Appraisal appears to be the back bone of the banking institution. Now. most of the time customers to prove their credit worthiness make the estimated balance sheets unrealistic. while keeping in mind other necessary factors. Thus. .

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