INTRODUCTION TO THE PROJECT

TRAINING OBJECTIVE:
The overall objective of the internship training is to create an opportunity
for gaining insight into the current corporate scenario and to understand the day-to-day
issues faced by the organizations. The nature of this training is to observe and understand
the working of the organization.

TRAINING NEED:
As a management student, it is mandatory that one has to understand the
internal workings of any organization. The training includes the observation of the trainee
regarding the organizational functions, issues and the interpersonal relationship between
the various departments, its members and the key persons involved in the problem
solving process.

TRAINING PERIOD AND ORGANIZATION:

The training was provided by UTI BANK LTD. SATHYAMANGALAM
BRANCH, and the training period was a month as it is estimated to be adequate to keenly
observe the activities of the organization.

1
 INTRODUCTION TO THE BANKING INDUSTRY

The Indian Banking industry, which is governed by the Banking Regulation Act
of India, 1949 can be broadly classified into two major categories, non-scheduled banks
and scheduled banks. Scheduled banks comprise commercial banks and the cooperative
banks. In terms of ownership, commercial banks can be further grouped into nationalized
banks, the State Bank of India and its group banks, regional rural banks and private sector
banks (the old/ new domestic and foreign). These banks have over 67,000
branches spread across the country.

The first phase of financial reforms resulted in the nationalization of 14 major

banks in 1969 and resulted in a shift from Class banking to Mass banking. This in turn
resulted in a significant growth in the geographical coverage of banks. Every bank had to
earmark a minimum percentage of their loan portfolio to sectors identified as "priority
sectors". The manufacturing sector also grew during the 1970s in protected environments
and the banking sector was a critical source. The next wave of reforms saw the
nationalization of 6 more commercial banks in 1980. Since then the number of scheduled
commercial banks increased four-fold and the number of bank branches increased eight-
fold.

After the second phase of financial sector reforms and liberalization of the sector
in the early nineties, the Public Sector Banks (PSB) found it extremely difficult to
compete with the new private sector banks and the foreign banks. The new private sector
banks first made their appearance after the guidelines permitting them were issued in
January 1993. Eight new private sector banks are presently in operation. These banks due
to their late start have access to state-of-the-art technology, which in turn helps them to
save on manpower costs and provide better services.

During the year 2000, the State Bank Of India (SBI) and its 7 associates
accounted for a 25 percent share in deposits and 28.1 share in credit. The 20 nationalized
bank accounted for 53.2 percent of the deposits and 47.5 percent of credit during the

2
same period. The share of foreign banks (numbering 42), regional rural banks and other
scheduled commercial banks accounted for 5.7 percent, 3.9 percent and 12.2 percent
respectively in deposits and 8.41 percent, 3.14 percent and 12.85 percent respectively in
credit during the year 2000.

3
 CURENT SCENARIO

The industry is currently in a transition phase. On the one hand, the PSBs, which
are the mainstay of the Indian Banking system, are in the process of shedding their flab in
terms of excessive manpower, excessive Non Performing Assets (NPAs) and excessive
governmental equity, while on the other hand the private sector banks are consolidating
themselves through mergers and acquisitions.

PSBs, which currently account for more than 78 percent of total banking industry
assets are saddled with NPAs, falling revenues from traditional sources, lack of modern
technology and a massive workforce while the new private sector banks are forging
ahead and rewriting the traditional banking business model by way of their sheer
innovation and service. The PSBs are of course currently working out challenging
strategies even as 20 percent of their massive employee strength has dwindled in the
wake of the successful Voluntary Retirement, Schemes (VRS) schemes.

Private sector Banks have pioneered internet banking, phone banking, anywhere
banking, mobile banking, debit cards, Automatic Teller Machines (ATMs) and combined
various other services and integrated them into the mainstream banking , while the PSBs
are still grappling with disgruntled employees in the aftermath of successful VRS
schemes. Also, following India's commitment to the WTO agreement in respect of the
services sector, foreign banks, including both new and the existing ones, have been
permitted to open up to 12 branches a year with effect from 1998-
99 as against the earlier stipulation of 8 branches.

Banks in India have also been allowed to provide fee-based insurance services
without risk participation, invest in an insurance company for providing infrastructure
and services support and set up a separate joint venture insurance company with risk
participation

4
 INTRODUCTION TO THE ORGANIZATION

THE UTI BANK LTD:

After the Government of India allowed new private banks to be established, UTI
was the first of the new private banks to have begun its operations in 1994.The bank was
jointly promoted by the administrator of the specified undertaking- Unit Trust of India
(UTI-I), Life Insurance corporation of India and General Insurance Corporation Ltd and
its four subsidiary companies namely, National Insurance Company Ltd, New India
assurance company, The Oriental Insurance Corporation and The United Insurance
Company Ltd.

CAPITAL:
The largest and the best financial Institution of the country, UTI, have
promoted UTI BANK LTD. The bank was set up with a capital of Rs.115 crore, with UTI
contributing Rs.100 crores, LIC – Rs 7.5 crores and GIC and its four subsidiaries
contributing Rs1.5 crore each.

SHARE HOLDING PATTERN:

S.NO NAME OF SHARE HOLDERS %OF SHARES HELD
1 UTI 27.42
2 LIC 10.37
3 GEC& other four subsidiaries 5.30
4 IFI’s 0.12
5 Mutual fund 8.35
6 Others 8.60
7 Foreign shareholding 39.84
Total 100

The bank today is capitalized to the extent of Rs.281.63 crore with the public
holding at 56.89%.

5
REGISTERED OFFICE:
The bank's registered office is at Ahmadabad and its central office is located at
Mumbai.

BRANCHES:
Presently, the bank has a wide network of more than 561 branch offices. The bank
also has a network of over 2341 ATM's providing 24 hours a day banking convenience to
its customers. This is one of the largest ATM networks in the country.

BANK’S MISSION AND VALUES

MISSION:
Customer service and product innovation tuned to diverse needs of individual
and corporate clientele.

CORE VALUES:
Customer satisfaction through

• Providing quality service effectively and efficiently.

• “smile, it enhances your face values” is a service quality stressed

on

• periodic customer service audits

• Success through teamwork, integrity and people.

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SATHYAMANGALAM BRANCH:
UTI BANK LTD established its branch office at Sathyamangalam on
20.5.2006. Mr.K.Swaminathan is the Branch head and Mr.R.karunadass is the
Branch manager.

OFFICE STRUCTURE:
Based on the functional operations, all the branch offices are structured as follows.
• The entire branch offices are headed by the Branch Heads. They may be
the vice presidents or assistant vice presidents of the zonal office.
• There is a separate branch manager who takes care of the entire operations
of the branch.
• Below the branch manager comes the deputy manager for various aspects
like sales, operations, loans, etc, where in they have their own executive
team under them.
• Other than this, the branch hires required office boys and appraisers.

7
 ORGANIZATION CHART OF UTI BANK LTD

CHAIR MAN & MANAGING

DIRECTOR

ZONAL OFFICE

PRESIDENT

VICE PRESIDENT

ASSISTANT VICE PRESIDENT

(Branch head)

OPERATIONS HEAD
(BRANCH MANAGER)

DEPUTY MANAGER-
DEPUTY OPERATOINS DEPUTY MANAGER-
MANAGER-SALE AGRI LOAN

JEWEL LOAN
EXECUTIVE
EXECUTIVES EXECUTIVES CASHIER EXECUTIVES

Contracted people:
• OFFICE BOYS
• APPRAISER

8
VALUE ADDED PRODUCTS AND SERVICES:
For the benefit of the customers, the bank has been engaged in the task
evolving new and value added products and services and currently has a comprehensive
portfolio of such products and services which can be broadly classified under
Personal
Corporate
NRI
Priority banking

ACCOUNTS:
The bank offers a variety of savings bank (SB A/C) products and Current account
products which is uniquely designed to benefit several types of customers.

1. EASY ACCESS ACCOUNT:

Easy Access gives instant access to customer's money anywhere, anytime.
Possessing a range of unmatched features, it has been devised to better suit the
convenience of the bank's electric client base.

FEATURES:
o At par cheque facility
o ATM network
o Anywhere banking
o I Connect
o Mobile banking
o Quarterly account statement

The minimum average balance in metro or urban centers is Rs.5000, and Rs.2,
500 in semi urban centers.

9
2. SALARY ACCOUNT (SALARY POWER)
Salary Savings Account comes with a host of facilities that give the
employees of the customer company access to the complete gamut of banking services
(including overdrafts, loans and zero-balance requirements) on a preferential basis.

3. WOMEN’S SAVINGS ACCOUNT (SMART PRIVILEGE):

Smart Privilege Account is specifically designed for today's women.
This account will help women in managing their finances the least of concerns.

FEATURES
 Zero balance minor account
 Smart advantage
 Discount on retail purchases
 Specially deigned international debit card
 Dedicated Relationship Manager: A dedicated Relationship Manager
who will contact at branch for all banking transactions thus ensuring
that the customer would neither have to move from one counter to the
other nor stand in queues to await for turns.
Financial advisory services: The Banks Financial Advisor will assist the customer in
financial planning and help to earn maximum returns on their savings.
 Monthly Statement Of Account
 Concessional loan rate for personal and consumer loans

 At par cheque facility

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4. SENIOR PRIVILEGE ACCOUNT: This account has been designed keeping in mind
the fact that a senior citizen's banking requirements are wholly different and requires
special consideration.

FEATURES:

 Relationship manager

 Free at par cheque book

 Free debit cards for the primary and joint holder

 Free monthly statement of account

 Free issuance of pay orders or demand drafts drawn on UTI branches

 Complimentary financial planning

 Health plan in association with Bajaj Allianz

 Faster credits to foreign cheques

 Cheques pick ups and cash delivery services

 Anywhere banking

 Tele banking

 iconnect facility(net banking)

 Mobile banking

5. DEFENCE SALARY ACCOUNT (POWER SALUTE):

Defense Salary Account is a product designed to suit the Defense Forces. No

minimum balance is required in this account. The customer can also access the entire UTI
Bank network, wherever they are posted.

11
 Features:
 At par cheque facility
 Additional debit card
 Financial advice

6. TRUST /NGO SAVINGS ACCOUNT:

This is a complete banking solution for Trusts, Associations, Societies,
Government Bodies, and NGOs.

Features:

 A multi-city at-par cheque facility with no limit on clearing payments

 Free Anywhere Banking across all the Branches and Extension Counters

 Free Demand Drafts or Pay Orders as and when required

 Free collection of cheque at outstation locations.

 Monthly Statement of Account delivered at the customer’s doorstep.

 Financial advisory.

7. AZAADI- NO FRILS ACCOUNT:

This is savings account that doesn't require a minimum balance.
Eligibility: The sum total of all credits of the customer’s account should not exceed
Rs. 1 lakh during a financial year.

AT PAR CHEQUE FACILITY:

UTI Bank is the first bank in India to offer the AT PAR Cheque facility, without
any charges, to all its Savings Bank customers in all the places across the country where
it has presence.

12
CURRENT ACCOUNT:
Current accounts are designed to suit the business people. Several schemes in
current accounts are:

1. Normal Current Account (Monthly Average Balance Rs.10, 000)

2. Business Advantage Account (Monthly Average Balance Rs.25, 000)
3. Business classic account (Monthly Average Balance Rs.1, 00,000)
4. Business privilege account (Monthly Average Balance Rs.5, 00,000)
5. Channel one (Monthly Average Balance Rs.10, 00,000)
6. Current account for government organizations (No Minimum Balance)

DEPOSITS:

The bank offers fixed and term deposits.

1. FIXED DEPOSITS:
Fixed deposits are those in which deposit amount remains for certain period.
The minimum deposit is Rs, 10, 000 and the minimum tenure period is 6months.

FIXED DEPOSIT SCHEMES:

REINVESTMENT DEPOSIT: In a reinvestment deposit, the interest accrued to the

deposit at the end of each quarter is invested along with the principal. The tenure of

deposit must be a minimum of 6 months. At the end of the quarter, the interest and the

principal are both rolled over, and the interest is calculated on the total sum. Income tax

is deducted at source.

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AUTOMATIC ROLLOVER: The maturity amount is automatically rolled over as per the

option given in the Account Opening Form (AOF). Only the maturity amount or maturity

amount along with interest is rolled over as per the customer option.

On or before the maturity date, customers can make the following changes in the
rollover instructions of the deposit:

Change in tenure

Change in maturity instruction

Change in payment instruction

Change in principal (only reduced amount)

Change rollover of principal to rollover of principal + Interest, or vice versa

2. RECURING DEPOSITS:
Recurring Deposit scheme allows the customer to save through regular
monthly deposits of fixed sum over a fixed period of time.

3. ENCASH 24
The ENCASH 24 (Flexi Deposits) gives the liquidity of a Savings Account
coupled with high earnings of a Fixed Deposit.

4. TAX SAVER FIXED DEPOSIT:

This product has been designed according to the Government’s announcement
for tax benefit to banks term deposits u/s 80C of IT Act, 1961 vide Notification number
203/2006 and so 1220 (E) dated 28/07/2006.

14
LOANS:
The bank has several loan products, which benefits customers in several fields.

1. HOME LOAN (POWER HOME):

Power Home puts an end to Real Estate troubles.

FEATURES:
 Attractive interest rates

 Balance Transfer facility

 Doorstep service

 Option to choose from floating rate or fixed rate

 Free Property and Personal accident insurance

2. PERSONAL LOAN (PERSONAL POWER):

A personal loan provides quick cash for meeting personal requirements.

FEATURES:
 Loans for salaried and self employed individuals
 Special loans for doctors, chartered accountants, engineers, architects, CS and
ICWA
 Loans are available from Rs 50,000 to Rs 20 lakhs
 Repayment tenures from 12 to 60 months
 Attractive interest rates
 Free personal accident insurance cover with personal loan

15
  Loans can be used for any purpose with no questions asked regarding the end use
of the loan
 A balance transfer facility available for those who want to retire any higher
cost debt
 Loans available against repayment track record of any existing auto,
personal or home loan. Loans available against proof of life insurance policy or
premium receipts
 Zero balance SB account facility for personal loan customers
 Simple procedure, minimal documentation and quick approval.

3. LOAN AGAINST PROPERTY:

Loan is rendered against property for both commercial and non-commercial

requirements.

 Loan against property for residential purpose

 Loan against property for commercial purpose
 Loan for purchase of commercial property

4. LOAN AGAINST SECURITY

Loan is given against securities like shares, mutual funds, NSC, KVP and LW
policies.
5. CAR LOAN (POWER DRIVE)
6. TWO-WEELER LOAN

7. STUDY LOAN
Study Power aims to provide financial support to deserving students for
pursuing higher professional or technical education in India and abroad. The Money
would be provided to students who have obtained admission to career-oriented courses
e.g., medicine, engineering, management etc., either at the graduate or post-graduate
level.

16
8. CONSUMER LOAN:
This scheme will help the customer in acquiring consumer durables like
T.V, Washing machine etc.

CARDS:
UTI bank provides debit cards, credit cards, travel, meal and gift cards as per the
customer demands. The bank has over 2341 ATM counters across the country to serve its
customers.

CREDIT CARDS:

1. GOLD PLUS CREDIT CARDS:

UTI Bank's Gold plus Credit Card goes beyond meeting customer expectations.
There is always more to enjoy and more to gain with a Gold plus Credit Card.

Exclusive Benefits:

• Complimentary return flight vouchers.

• 50% guaranteed discount on hotels

• Petrol surcharge waiver

2. GOLD CREDIT CARD:

An exclusive credit card for exclusive people, which includes benefits as

follows,
Benefits:
• Comprehensive insurance cover
• Mobile alerts
• Global acceptance
• Global emergency assistance
• Interest free period

17
 • Revolve facility
• Balance transfer
• Cash advance facility
• Auto debit facility
3. SILVER PLUS CREDIT CARD:
Silver plus credit card has exclusive benefits, which the customers can
avail by acquiring it.
Benefits:
 Complimentary flight voucher
 Discounts on hotel

4. SILVER CREDIT CARD

DEBIT CARDS:

l. PRIORITY DEBIT CARD:

The Priority Banking Debit Card is an International VISA Debit card meant
exclusively for Priority Banking customers. It comes with a host of enhanced benefits,
which include:
FEATURES:
 Free usage of all visa ATM's.
 Instant identification
 Higher transaction limits
 No issuance charges
 Free ADD ON card
 Enhanced insurance coverage
 Exclusive offers
 Rewards program
 24 hours help line

18
2. ORDINARY DEBIT CARD:

The UTI Bank Debit Card is a VISA Electron Card and is accepted at
VISA and VISA Plus ATMs worldwide and at all merchant establishments using
electronic terminals and displaying the VISA Electron sign.

3. GOLD BEBIT CARD:

Gold Debit Card is more than just a debit card. It comes with a host of
enhanced benefits and exclusive reward programmes,

FEATURES:

 Flexibility of usage

 Worldwide reach

 Reward program

 Zero petrol surcharge

 Special discounts on card usage

 Additional safety and enhanced insurance

 24 hour customer services

4. BUSINESS GOLD DEBIT CARD:

The Business Cold Debit Card offers best deals possible through a debit card.
Available only to most privileged current account holders, the Business Gold Debit Card
mirrors great business success and achievement with a host of enhanced benefits and
exclusive value deals.
FEATURES:
 Instant identification

 Flexibility of usage

 Worldwide reach

19
 Zero petrol surcharge

 Special offers and discounts on card usage

 Exclusive access to airport lounges

 Additional safety and enhanced insurance

 Enhanced limits for cash withdrawal

 24-hour customer service

MEAL CARD:
The UTI Bank Meal Card is a prepaid card designed to replace the inefficient
paper voucher system in the market. It is a far more operationally efficient way to provide
the employees of Customer Company with a meal allowance and eliminates the logistical
hassles associated with the procurement, stock keeping and distribution of paper-based
Meal Vouchers.

GIFT CARD:
The UTI Bank Gift Card is a VISA Electron signature based card, which
signifies the widest acceptance. It is accepted at over 130,000 VISA enabled merchant
outlets across the country.

20
INVESTMENTS:
UTI Bank also does financial advices to the customers for getting the maximum
benefit out of their investment. Customers can invest in the following areas,

1. ONLINE TRADING:
UTI Bank in alliance with Geojit Financial Services offers an Online Trading
Account. This service provides an integrated Savings Bank Account, Demat account and
an Online Trading Account to give a convenient and paper free trading experience.

2. MUTUAL FUNDS:
A Mutual Fund is a trust that pools the savings of a number of investors who
share a common financial goal. The money thus collected is then invested in capital
market instruments such as shares, debentures and other securities. The income earned
through these investments and the capital appreciation realized is shared by its unit
holders in proportion to the number of units owned by them.

Thus a Mutual Fund is the most suitable investment for the common man as it
offers an opportunity to invest in a diversified, professionally managed basket of
securities at a relatively low cost.

UTI Bank offers a unique 'One Page Portfolio Snapshot' report across investment
products to the customers investing in Mutual Funds by appointing financial advisor for
its customers.

21
3. FIXED INCOME
.5% Relief Bonds, 1999 Issued by Reserve Bank of India (RBI) are available
for sale at UTI Bank counters in which customers can invest.

4. DEPOSITARY SERVICES:

UTI Bank is a registered member (Depository Participant) of NSDL. In this

system, physical security holdings are converted into electronic (or in other words,
dematerialized) holdings. UTI Bank has been enrolled as a Depository Participant by the
NSDL - India's first depository. Customers can avail the depository-related services by
just opening an account with NSDL through UTI Bank.
 Receipt of corporate benefits

 Dematerialization of shares

 Rematerialisation

 Transfer of shares and settlements

22
BANCASSURANCE:

UTI has tie up with leading insurance providers of the Country- "BAJAJ
ALLIANZ" and “METLIFE" which are growing insurance companies and offers the
following products.

1. HEALTH INSURANCE:
Family Health insurance Programme provides,

 HOSPITAL REIMBURSEMENT: Reimbursement of hospital expenses in case of

sudden illness, accidents or emergency surgeries
 HOSPITAL CASH PAYOUT: Additional cash benefit for each
and every completed day of hospitalization.

2. PERSONAL ACCIDENT: Two schemes are available under personal accident:

SAFE GUARD: A unique policy that offers Insurance coverage at premiums that is
extremely competitive and exclusively meant for UTI Bank customers. Safe Guard offers
insurance coverage in case of:
Accidental death,
Accidental permanent total disability,
Accidental permanent partial disability,

23
 Children's education bonus

PERSONAL GUARD: This policy covers all the risks and uncertainties attached to an
individual based on his occupation. Risk Level 1 covers the professionals; level 2 covers
manual labors and level three covers labors in mines, and electric installations where the
risk is high.

3. CRITICAL ILLNESS: In critical illness plan, one can insure himself against the risk
of serious illness in much the same way as one can insure his car and house. It will give
the same security of knowing that a guaranteed cash sum will be paid if the unexpected
happens with a critical illness.

KEY FEATURES:
• Very highly competitive premium rates.
• Insured can opt for Sum Assured from Rs 1,00,000 to Rs 50,00,000
• Premium paid is exempt under the Income Tax Act section 80 D

The following critical illnesses are covered

 Coronary Artery Bypass surgery

 First Heart Attack

 Kidney Failure

 Major organ Transplant

 Multiple Sclerosis

 Stroke

 Aorta Graft surgery

 Paralysis

24
 Primary Pulmonary Arterial Hypertension

4. HOME INSURANCE: House Holder's Insurance policy is designed to cover various

risks and contingencies faced by householders under single policy. It provides protection
for property and interests of the Insured and his family members who permanently reside
with the Insured. A householder's insurance, protects not just the flat but also domestic
and electronic appliances.

COVERAGE:
 Fire
 Burglary
 Jewelry or Precious Stones
 Domestic appliances
 Electronic Equipments
 Pedal Cycles
 Baggage Insurance

 Personal Accident

5. MOTOR INSURANCE:
Motor vehicle is an invention which has made daily commuting easy. It is
convenient, fast and saves our time. Though it is easy to own a vehicle it is expensive
maintaining a motor vehicle especially in case of damage caused to vehicle due to some
unavoidable circumstances or accidents. Baja] Allianz's Motor Vehicle Policy helps in
maintaining the vehicle in such situation by providing coverage in two sections.

SECTION I:

Undertaken to reimburse the expenses incurred for repair or replacement of

25
parts of the vehicle and to pay the market value of the vehicle in case of a total loss,
provided that the originating cause of such damage is an accident, including theft.

SECTION 2

It covers the legal liability to third party for personal injury and property
damage arising out of an accident involving the insured vehicle.

6. TRAVEL COMPANION:
Travel Companion is specially designed to help the customers deal
with such situations while overseas travel as follows,

 Personal Accident
 Medical Expenses
 Loss of checked baggage
 Delay in checked baggage
 Loss of Passport
 Personal Liability
 Cash Less Service
 Hospitalization Allowance
 Emergency Cash Advance

7. SHOPKEEPER’S PACKAGE

26
 Shopkeeper Policy is specifically designed to all the risks and contingencies
faced by a shopkeeper. It provides protection for the property and the interests of the
insured and his partners in the business venture.

COVERAGE:
 Fire and Allied Perils

 Burglary and Robbery

 Breakdown of Business Apparatus and Equipment

 Neon sign and glow sign

 Electronic Equipment

 Fidelity Guarantee

 Personal Accident

 Public Liability or Workmen Compensation

 Business Interruption

PAYMENT TRANSFERS: Customers can pay their bills and tax through the bank.
The customers can make secured payments through ATMs and Internet banking facility
provided by UTI.

OTHER SERVICES:

1. LOCKERS: The Bank provides lockers in various sizes on a rental basis.

ADVANTAGES:
• Lockers available in various sizes.
• No deposits are required to avail a locker. The customers should just open an
account and get the locker facility.

27
 • Direct debits for locker rentals from the account rid the customer from the hassles
in writing out cheques.
• Extended banking hours to operate lockers.
• Competitive rentals.

2. ONLINE SHOPPING: The Bank offers the convenience of shopping at many major
Online stores from the comfort of home or office. Customers can shop as much as they
like and conveniently make instant payments by debiting their account through the
secured payment channel, iConnect – UTI's Internet banking platform.

To avail of the Online Shopping facility, customers have to be registered iconnect

customers of UTI Bank.

STRENGTHS OPPORTUNITIES

Excellent customer services Bancassurance

Competitive interest rates Less competition in Sathyamangalam
Motivated employees Provision of customized products
Good customer satisfaction
SWOT ANALYSIS
Priority banking services

WEAKNESS THREATS
Delays in processing commercial loans Mind set of customers
Limited volume of transactions Limited scope of growth

28
SWOT:

STRENGTHS:

• The bank focuses on the customers primarily and serves them best by
responding to them quickly by which the customers are attracted. The employees
of the bank move with customers personally. By this, the bankers create a good
impression in the minds of the customers.
• When compared to other banks, UTI Bank provides a higher interest rates
on deposits and low rates for loans.
• All the employees of the bank are young and they complete the tasks
quickly and do not drag customers for a long time like other banks.

29
 • Customers of the bank are highly satisfied since the bank provides
services like mutual funds and online trading apart from the usual banking
services.
• Through the availability of priority banking services customers feel
banking very easy and comfortable.

OPPORTUNITIES:

• Since there are very few banks at Sathyamangalam, the bank can take it as an
opportunity to serve well and capture customers effectively.
• Tie up with growing insurance companies namely Bajaj Allianz insurance and
Met Life Insurance helps them to increase their revenue.

WEAKNESS
• Time consumption for sanctioning commercial loans as the bank has
no powers to grant commercial loans and has to wait till the a project is being
accepted for sanction from the zonal office.
• The volume of the business carried on is very less because of the area selection

THREATS:

• Sathymangalam is a rural area so the scope of

growth is limited
• Most of the people in the area are illiterate so that they hesitate to acquaint with
modern banking; customers are resist to switch over from their traditional ones.

30
MANAGEMENT FUNCTIONS:
Employees in the bank are grouped in teams for smooth flow of
transactions at the bank. Several teams/sections available at the bank are as follows,

• Sales team
• Operations team
• Loan team
• Cash section

SALES TEAM: The sales team consists of sales manager and two other executives.
The sales team exclusively takes care of mobilizing funds from the customers. The

31
branch head influences and motivates the sales team to a great extent in deposit
mobilization with strong efforts and marketing of all financial products of the bank. The
sales executives visit fields for canvassing customers. The executives are given with
targets, which they should attain it within the specified time. They get incentives for each
account they open apart from the salary. The executives are assigned with a code for the
eligibility of incentives, which should be entered in the account opening form of every
account they open. Inside the office premises they carry out front office duties like filling
account opening forms, collecting necessary documents required for opening account like
Identification and Address proofs and they handle customer queries. The sales manager
tracks the account opening forms in case of any discrepancies found in the form and also
takes care of the HR responsibilities for the sales executives.
Apart from this, there is Priority Banking Relations Manager who acquires priority
customers and takes care of those customers. Priority customers are those who have
balance of RS.1, 00,000 in savings account. The branch manager and the operations
executive act as PBRM.

OPERATIONS TEAM: The operations manager heads Operations team and there is
a deputy manager and two executives including a cashier. Operations team is the active
and the most important team, which helps the bank to carry out its day-to-day
transactions in harmony. The task of sales department get over when an account is
opened for a customer where as, it is the operations team which takes care of each and
every transaction carried on by the customer by making entries in the customer’s account.

The important functions carried out by the operations team is,

TRANSFER: When a customer issues a cheque in favor of other parties / concerns of

other banks then necessary transfer entries should be made. Like wise if the customers

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give any cheque for collection, then the cheque should be sent for clearing and customers
account should be credited.

ENTRIES (CASH VOUCHERS): If customers want to make payment or deposit in

their account, they should fill in the cash vouchers (challans). The cashier will make an
entry in the system and pass the voucher to the operations executive who has to verify the
entry and lodge the entry in customer’s account.

CLEARING OF CHEQUES: Clearing is a process in which bankers exchange the

cheques received from their clients and settle their customer/s account. This exchange of
cheques and settlement of accounts takes place at clearing house. Only local cheques take
place in clearing process.
At the clearing house, the cheques are distributed to all the respective banks after
sorting. The net amount of cheque received/delivered is adjusted in the current account of
the respective banks maintained in the clearing house (mirror account). After this, the
branch representatives (operations executive) returns to the respective banks with
cheques drawn on them. Generally a clearing cycle takes three working days.

ISSUING DEMAND DRAFTS: Deputy manager-operations is responsible for

issuing DD to customers. The customers have to fill in the DD challans and an entry will
be made in the customer’s account and then DD will be issued. For the DD amount up to
RS.1, 00,000 the deputy manager-Operations can issue DD solely, where as up to Rs.5,
00,000 deputy manager-Operations and Operations Head can issue jointly. Only the
branch head has the power to issue DD amount exceeding this limit.
Operations team also handles outstation cheques. If the paying bank and the
collecting bank are in different zones, the collecting bank will treat such a cheque as an
outstation cheque.
Apart from these functions, other activities carried out are,
• Maintenance of various registers like Welcome Kit Register, Personal Index
Number (PIN) mailer register, Form 14 register etc.
• Taking care of loading cash in ATM

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 The Executive-Operations is responsible and one of the custodian for
loading the ATM every day. There are two custodians for loading cash in ATM,
one is the operations executive and the other is operations head.
The volume of cash loaded in the ATM is on the basis of balance shown
by the software inside the ATM at the end of every day. The ATM machine has
five cassettes where currencies can be loaded; the branch uses two cassettes where
in hundred rupees currency and five hundred rupees currency are loaded. There is
a separate code at the back of the cassette to help the machine to identify either it
is a hundred/five hundred rupees currency. The operator is provided with a
keyboard inside the machine to perform this task. Each and every transaction is
printed in the journal printer, which is inside the ATM machine for clarification to
the banker. There is a separate printer, which gives receipt to the customers.
• Front office functions and handling customer’s mails and dealing with issues
like hot carding (hot carding is the process of blocking customers ATM card
if they loose it), debit card capture, etc.
All the transactions have to be authorized by the operations head.

CASH SECTION: The most active section in the bank is the cash counter and it
functions from 9.00 am to 3.30 pm. The cashier makes the receipts and payments of cash,
and all the transactions have to be entered in the respective accounts of the customer. The
voucher has to be passed to the operations executive who has to check the entry and
lodge the transaction in customer’s account. The cashier has to maintain the remittance
level and see to that the cash level does not exceed the remittance level.
The balance amount in the cash counter has to be kept in the safe vault. The cashier
also has to maintain the registers like cash register, vault register, cash remittance
register, petty cash register, etc.

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LOAN SECTION: Since Sathymangalam is rural area; the bank mainly concentrates
on agricultural loans. The Deputy Manager-Agriculture loan receives application from
the customer and checks the details in the proposal form thoroughly with a legal valuer
and auditor. The Deputy Manager-Agriculture loan along with the branch head (if
required) visits the field of the customer before sanctioning the loan. All the documents
should be thoroughly checked and he should also see whether the encumbrance certificate
is clear. Once if every thing is as per the requirements, then the proposal is forwarded to
the cluster head with recommendation of the Deputy Manager-Agriculture loan and the
branch head if required. The documents so collected should be kept in safe vault if the
loan is sanctioned and the follow up activities like recovery of charges, fees and
monitoring interest amount and collections has to be made.

JEWEL LOAN: Gold loans are lended to support agriculture and allied agricultural
activities. An appraiser assists Deputy Manager- jewel loan. The appraiser values the
jewel and the Deputy Manager- jewel loan advances the loan on the basis of value of the
ornament pledged. The function carried in this section can be described as in a process as
shown below:

PROCESS OF SANCTIONING JEWEL LOAN

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 Application from the
borrower

Appraiser’s certificate

Documentation, record
keeping

Release of security

Monitoring the
Issue margin call
value of security

Auction on default

FUNCTIONS 0F VARIOUS EXECUTIVES:

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BRANCH HEAD: The branch head is responsible for the overall administration of
the branch and he carries out duties and responsibilities assigned by the Zonal Office
from time to time. The branch head has to mobilize deposits with strong efforts and has
to market all financial products of the bank. He has to see to it that the target set to the
branch is achieved and should motive the sales team handled by the Branch Sales officer.
In the absence of any one of the Joint custodian for the Safe room, branch head shall hold
the key. He is authorized to pass all General cheque payments within the discretionary
powers of the AssistentVice President/Branch Head. He acts as the Power of Attorney
holder of the Bank and acts on it as per the direction of Central office/Southern Zonal
Office. The Branch Head uses discretionary powers for lending Schematic products and
to obtain control return. He takes cares of the staff files and correspondence and handles
complaints of the customers.

OPERATIONS MANAGER/BRANCH MANAGER: Operations manager is in

charge for all the operations related works in the due course of day-to-day transactions.
All the branch documents have to be take care by him. He is one of the key custodians of
the vault room. Modifications in the customer's accounts like transfers and collections
have to be authorized by the operations head. Inter bank dealings like remittances have to
be taken care of. The operations manager is one of the priority banking relations
manager. He is in charge for fixed asset management in Finacle
software. He handles the customer services and grievances. Branch manager is in charge
for all audit related works. He responds to Correspondence from operations head mail id
across branches for several issues. He carries out surprise inspections of security
arrangements at the branch premises and the ATM counter. He also carries out all the HR
related works and maintains office accounts. The Overall control vests in the hands of the
branch manager.

DEPUTY MANAGER-SALES: The Deputy manager-sales perform duties and

responsibilities of the branch sales officer and leads the sales team. He directs the team of

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sales executives for the growth the product portfolio. He is one of the joint custodians for
safe keeping of loan document; security papers and other instruments like DD pay orders,
cheques etc. The sales manager tracks the Account Opening Forms and corresponds with
the central office in this regard.

DEPUTY MANAGER-OPRATIONS: The Deputy manager – operations carries

out Front desk operations including ATPAR warrants, clearing, cash and transfer voucher
verifications, DD and Pay order printing. He is the sole custodian of the master keys of
safe deposit locker. He prepares general ledger, daily and monthly balancing of accounts
and he is in charge for welcome kit maintenance

EXECUTIVE- OPERATIONS: He is Responsible for front desk operations like

clearing, collection and cash monetary services. He is in charge for ATM office and
ATM maintenance including loading of cash and reconciliation along with operations
manager. The balances with other banks have to be balanced by the executive-operations
on daily basis. He also maintains PIN mailer-recording and balancing. He acts as one of
the Priority Banking Relations Manager and goes for cash pick ups and takes care when a
priority customer comes to bank. He also tracks account opening form and debit cards.

CASHIER: The cashier makes all the payments and receipts. He balances cash register
and vault Register on daily basis. The cashier has to maintain the petty cash system
including vouchers and registers. He is responsible to see to that required challans and
Account Opening Forms are available. Apart from these the cashier has to enter the AOF
and send it to Central Processing Unit-Mumbai. Cashier is responsible for the cleanliness
of the premises.

DEPUTY MANAGER-AGRI LOAN: The deputy manager for agri loan is the
sole in charge for marketing of Agri products. The manager receives the application from
the customers and carries out pre and post Sanction inspection, appraisal and put up notes

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for recommending loan for sanction. If the customer's net worth is satisfactory then he
forwards the proposal to the cluster Head along with recommendation. The Agri Loan
DM has to maintain the related documents and obtain encumbrance certificate and end
use certificates. All charges and applicable fees have to be collected/charged to the
customer. Timely renewal of limits and operation part of it should be taken care by him.
He is also responsible to maintain the documents in the safe vault.

JEWEL LOAN EXECUTIVE: Jewel loan executive’s duty begins right from
receiving the application from the customer and recovery of the same when the tenure
expires. He Carries out appraisal and recommends for gold loan to branch head: he
should recover the applicable charges and fees from the customer. He monitors all loans,
collections and follow up for recovery. The jewel received from customers has to be kept
in safe vault room by him.

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 CONCLUSION
UTI BANK LTD is one of the leading private banks and provides commercial
banking services. The bank has recently changed its name as AXIS BANK and promises
to serve its customers best in future.
The Implant training for a period of one month at UTI BANK LTD-
Sathyamangalam Branch has proved to be very informative, useful and effective. The
main objective of this training programme was to observe and understand the working of
an Organization from a Management point of view and to mutually benefit from the
training. The training programme honed the necessary management skills required. This
training programme was successfully completed with the support and guidance of the
UTI Bank’s Branch head, Branch manager and other staff members.

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 BIBLIOGRAPHY

Websites referred:
1.www.utibank.com
2.www.fdic.gov
3.www.India.financemart.com
4.www.wikipedia.org

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