Main Home Loans

A PROJECT REPORT
ON
"HOME LOANS"
AT
UNION BANK OF INDIA
PROJECT SUBMITTED IN PARTIAL FULFILLMENT FOR THE AWARD OF THE DEGREE OF
BACHELOR OF COMMERCE (GENERAL)
Submitted by
MOHD ABBAS MOHIUDDIN
1062-20-401-231
SYED ALEEM UDDIN
1062-20-401-332
MOHD AMEER
1062-20-401-727
HABEEB OMER
1062-20-401-819
Under the Guidance of

Ms. RUQIA FATIMA
(ASSISTANT PROFESSOR)
DEPARTMENT OF BUSINESS ADMINISTRATION

ANWAR-UL- ULOOM DEGREE COLLEGE (AUTONOMOUS)
(AFFILIATED TO OSMANIA UNIVERSITY)
NEW MALLEPALLY, HYDERABAD
(2020-2023)
ANWARUL ULOOM DEGREECOLLEGE
An Autonomous Muslim Minority Institution
(Affiliated to Osmania University)
# 11-3-918, New Mallepally, Hyderabad – 500 001., A.P., INDIA
Tel : 23340134, 30582660, 30582678, 30582666, 23342285 Fax: 23342750
Ref No………………………………. Date:……………………………..
CERTIFICATE
This is to certify that MOHD ABBAS MOHIUDDIN bearing Roll No: 1062-20-
401-231 , SYED ALEEM UDDIN bearing Roll No: 1062-20-401-332 , MOHD
AMEER bearing Roll No: 1062-20-401-727 & HABEEB OMER bearing Roll
No: 1062-20-401-819 has successfully completed they project work entitled “HOME
LOANS., and submitted in partial fulfillment of the requirement for the award of the
Degree of Bachelor of Commerce (General) Administration by Osmania University,
Hyderabad.
This is a bonafide work completed under my guidance and supervision.
Signature of Internal Guide Signature of H.O.D
Signature of Principal
DECLARATION
We, MOHD ABBAS MOHIUDDIN bearing Roll No: 1062-20-401-231 ,

SYED ALEEM UDDIN bearing Roll No: 1062-20-401-332 , MOHD
AMEER bearing Roll No: 1062-20-401-727 & HABEEB OMER
bearing Roll No: 1062-20-401-819 the undersigned, hereby declare
that the project report entitled "HOME LOANS " carried out at UNION
BANK OF INDIA is our original work written and submitted by us in
partial fulfillment of the award of the degree of Bachelor of
Commerce (General) from Anwar-Ul-Uloom Degree College,
(Autonomous). We are also declare that this project has not been
submitted earlier in any other university or institution.
Date:

1062-20-401-231
SYED ALEEM UDDIN

1062-20-401-332
MOHD AMEER
1062-20-401-727
HABEEB OMER
1062-20-401-819
ACKNOWLEDGEMENT
We would like to acknowledge, our sincere thanks to Mr. Mohammed Abdul
Razzak, Principal of "Anwar-UI-Uloom Degree College (Autonomous)" for the
extended helping hand for the development of our career.
We wish to express our sincere thanks to Dr. Mohammed Ahmed Mohiuddin
H.O.D and our express and sincere thanks to our Project Guide
Ms. Ruqia Fatima for sharing her valuable dine in providing her valuable
Knowledge, guidance and excellent support for the successful completion of my
project.
We express our sincere thanks to Mr. Vanga Santosh Kumar of Union Bank Of
India for sharing his valuable time in providing his valuable suggestions, information
and excellent co-operation for the successful completion of my Project.
We would like to acknowledge, our sincere thanks to all faculty members of "Anwar-
UI-Uloom Degree College (Autonomous)" who have extended helping hand in
giving the information being part of the study. We would like to express our gratitude
for all the people, who extended unending support at all stages of the project.

1062-20-401-231
SYED ALEEM UDDIN

1062-20-401-332
MOHD AMEER
1062-20-401-727
HABEEB OMER
1062-20-401-819
ABSTRACT
Modern organizations are highly complex ad dynamics systems. They operate
under very turbulent social economic and political environment. They are required
to reconcile several incompatible goals. Conflicting roles and divergent interest
they are also fraught with the use risk and uncertainties, hence tactful
management of such organization to plan to execute guide, coordination and
control the performance of people to achieve predetermined goals. Management
has to keep the organization vibrant moving and in equilibrium. It has to achieve
goal which themselves are changing it is therefore a problem highly complex and
ticklish. This information will be asset to marketing manager in making effective
decisions. The research is used to acquire and analyze information and to make
suggestions to management as to how marketing problems should be solved. The
marketing research is the process which links to manufacturer, dealers and
individuals through information in important part of curriculum of M.B.A.
program is project taken by the students to institute under which he or she is
studying, after completion of third - semester of the program. The objective of this
project is to enable the students to understand the application of the academics in
the real business life. I am fully confident that this project report will be extremely
useful to the management. This was a step wise process including collection of
data, Company Profile, Product Features, Analysis of data, and finally concluding
the data while putting some suggestions. The whole study was done with a view
that it would help SBI maintain its expansion path and improvise their schemes to
perform better than other financial institutions. It was the best platform being
provided as it has increased my horizons and has given me the opportunity to
apply my theoretical knowledge and managerial concepts practically in the real
business.
TABLE OF CONTENTS
CHAPTER NO DESCRIPTION PAGE NO
CHAPTER - I INTRODUCTION 1
CHAPTER - II REVIEW OF LITERATURE 9
CHAPTER - III RESEARCH METHODOLOGY 15
CHAPTER - IV THEORETICAL FRAME WORK 21
CHAPTER – V COMPANY PROFILE 25
CHAPTER - VI DATA ANALYSIS AND 31

INTERPRETATION
CHAPTER - VII RESEARCH FINDINGS & 63

SUGGESTIONS
CHAPTER -VIII SUGGESTIONS & RECOMMENDATIONS 66
BIBLIOGRAPHY 68
CHAPTER I
INTRODUCTION
1
INTRODUCTION
A home loan is a type of loan in which the borrower uses the equity of his or
her home as collateral. Home equity loans are often used to finance major expenses such as
home repairs, medical bills, or college education. A home equity loan creates a lien against the
borrower's house and reduces actual home equity.
Most home equity loans require good to excellent credit history, reasonable loan-to-value
and combined loan-to-value ratios. Home equity loans come in two types: closed
end(traditionally just called a home-equity loan) and open end (aka a home-equity line of credit).
Both are usually referred to as second mortgages, because they are secured against the value of
the property, just like a traditional mortgage. Home equity loans and lines of credit are usually,
but not always, for a shorter term than first mortgages. Home equity loan can be used as a
person's main mortgage in place of a traditional mortgage. However, one cannot purchase a
home using a home equity loan, one can only use a home equity loan to refinance. In the United
States, in most cases it is possible to deduct home equity loan interest on one's personal income
taxes.
There is a specific difference between a home equity loan and a home equity line of
credit (HELOC). A HELOC is a line of revolving credit with an adjustable interest rate whereas
a home equity loan is a onetime lump-sum loan, often with a fixed interest rate. This is a
revolving credit loan, also referred to as a home equity line of credit, where the borrower can
choose when and how often to borrow against the equity in the property, with the lender setting
an initial limit to the credit line based on criteria similar to those used for closed-end loans. Like
the closed-end loan, it may be possible to borrow up to an amount equal to the value of the
home, minus any liens. These lines of credit are available up to 30 years, usually at a variable
interest rate. The minimum monthly payment can be as low as only the interest that is due.
Typically, the interest rate is based on the prime rate plus a margin.
CREDIT APPRAISAL
Credit appraisal is one of the most important and significant step in the Home Loan process. In
case of home loans we either create new accounts or maintain preexisting ones. Credit appraisal
is however a part of sanctioning new loans or enhancing the existing one.
2
Credit Appraisal starts from the moment, the documents for Loan from the customers has taken,
which is then sent to back office for processing which is called HUB.
CATEGORIES
In case of Credit appraisal there are three main categories:
1. SALARIED PERSON
Here the Credit Appraisal is done for a salaried person.UNION BANK OF INDIA try to
compute the credit worthiness of a salaried person .It means that the person should be
employed as an employee in a recognized organization. The organization may be public or
private. The person must have proof to prove his employment like credit documents etc.
2. SELF-EMPLOYED PERSON
The nature of Credit Appraisal done for a self-employed applicant is slightly more complex.
This is due to the presence of enormous bank statements as well as transactions involved in
business. As conducting Business in modern times is a capital intensive process the bank
statements of self-employed persons are large and much more complex. The statement runs
into a large number of pages due to the multiple numbers of transactions. Apart from that their
income statements are also quite complex due to presence of many components.
Hence in the case of a self-employed person demanding a loan the credit appraisal has to be
done very carefully .For this very purpose UNION BANK OF INDIA Ltd has appointed
Specialized Credit Appraisers and a specialized Self-employed Committee. These consist
mainly of Chartered Accountants. They handle the important job of appraising the credit
worthiness of the self-employed applicants.
3. SELF-EMPLOYED PROFESSIONAL
The self-employed professionals include people like Doctors, Chartered accountants,
Engineers etc. Only UNION BANK OF INDIA recognizes these professionals as a separate
category and has hence developed a comparatively smoother procedure for their Credit
Appraisal and sanctioning of loan.
3
PRECAUTIONS
The credit appraisal is an important step for both the borrower and UNION BANK OF INDIA
.Hence it necessary to take all precautions.
o All calculations must be done with correct figures. The data entry in the system
must match the actual data. Also care should be taken in places like the decimals
and rounding off. The data entries should not be going outside the space provided
to them.
o The source of the data should be mentioned so that another person may easily
verify the facts and figures
o Sometimes it may happen that the Applicant has intentionally or by mistake not
mentioned the full status of his obligations. The common situation in this case are:
A. He has not revealed of any loan that he may be paying off from an
undisclosed bank account in any other bank
B. He is not disclosing information related to any defaults, Revolving accounts
such as Debit card, Credit card etc.
In these conditions it is difficult to correctly compute the credit worthiness of the person. As a
result an unscrupulous element might get a loan .This will lead to loss to both UNION BANK
OF INDIA and its honest customers.
The precaution taken by UNION BANK OF INDIA in this case is that it contacts CIBIL (Credit
Bureau of India Ltd) which is the mega Repository of financial data in India .UNION BANK OF
INDIA electronically requests CIBIL to reveal information it possesses pertaining to the persons
financial obligations. CIBIL passes on the information by means of a fax containing all revolving
accounts, loans and liabilities.
TERMS AND CONDITIONS OF UNION BANK OF INDIA HOME LOANS
UNION BANK OF INDIA has always been market oriented and dynamic with respect resource
mobilisation as well as lending programme. It provides loans to meet all requirements of the
customers to make their house a home. However following are the conditions which are to be
met by the customer before applying for a loan.
LOAN AMOUNT CONDITIONS
4
 UNION BANK OF INDIA finances upto 85% maximum of cost of property (agreement
value + stamp duty + registration charges)
 Repayment capacity takrs into consideration factors such as income, assets,
qualifications, number of dependents, spouse income, liabilities, stability and continuity
of occupation and saving history.
 The loan amount of the individual is also subject to Instalment to Income Ratio (IIR)
which is 40% and Fixed Obligation Income Ratio (FOIR) which is 45%.
 Maximum loan amount to an individual connot exceed Rs 1crore.
SUPPORTING DOCUMENTS
First of all when a customer came all documents are checked by the workstation which are
directly in contact with the customers. Necessary documents required are as follows.
FOR ALL APLICANTS
1. Allotment letter of the co-operative society /association of apartment owners.

2. Copy of the approved drawings of proposed construction /purchase /extention.
3. Agreement of sale /sales deed /detailed cost estimate cost from architect.
4. If an applicant have been present employment /business or profession for less than a year,
mention on a separate sheet details of occupation for previous five years , giving position
held, reasons for change and period of the same.
5. Applicable proceesing fees.
6. Residence proof and Identity Proof.
5
RESIDENCE PROOF IDENTITY PROOF
Ration Card Driving License
Passport Passport
Bank Account Statement Pan Card
Voters Identity Card Voters Identity Card
Letter from recognized public authority Identity Card issued by Employer(if employed
in state/central Govt.)
7. Certificate of loan outstanding issued by the lender ( for refinance cases only)
8. Any other information regarding your repayment capacity that is necessary and will assist
UNION BANK OF INDIA in appraising the loan proposal.
EMPLOYED CASE
1. Verification of Employment Form with only Part I filled in.

2. Latest original salary slip/salary certificate showing all deductions.
3. If a job is transferable, permanent address where correspondence relating to the applicant
can be mailed.
4. A letter from employer agreeing to deduct the EMI towards repayment of the loan from
applicant salary. This will expedite the processing of loan application.
5. Updated original Bank Passbook/ or Bank Statement for the last six months.
6. Photocopy of Form 16 (issued by the employer) for the last assesment year.
SELF EMPLOYED
1. Balance Sheet , Profit & loss and ITR for the last three years.
2. Business Profile.
3. Copies of individual Tax Challans for the last three years.
4. Copy of advance Tax Challan (if any).
5. Updated original Bank Passbook/ or Bank Statement for the last twelve months.
6
CREDIT APPRAISAL
After the documents are checked by the workstation, documents are rechecked by the Senior
Officer as well as File Credit Investigation Department (FCI) prepares income sheet and check
all documents of the file. After credit appraisal loan is approved an disbursed to the conditions or
requirement.
RATE OF INTEREST TILL 30 JUNE,2010 (DUAL RATE)
Till 30 June, 2010 all applications received will be locked by Dual rate.
SLAB RATE OF INTEREST

Till March 2018 8.25%
Till March 2019 9%
Next Floating rate PLR – 4.75%
RATE OF INTEREST
SLAB HOUSING PLOT EQUITY LOAN FIXED

LOAN LOAN RATE OF
INTEREST
Upto 30 lakhs 8.75% 9.25% Loan against property -11.25% Fixed rate -14%
30-50 lakhs 9% 9.5%
Above 50 lakhs 9.25% 9.75%
PROCESSING FEES AND OTHER CHARGES
A processing fees of 1% of the loan amount is charged from the applicant which includes all the
fees and the charges at the time of sanctioning of the loan application. Service tax is also
applicable and will be charged on the fees collected.
7
REPAYMENT
Loan is repaid in EMI comprising principal and interest. EMI commences from the first of the
month following the month in which the disbursement of the loan has been completed. Due date
of payment of first EMI is the 5th day of the month following such month.
Interest is paid on the portion of the loan disbursed which is called Pre-EMI. Pre-EMI interest is
payable every month from the date of each disbursement upto the date of the commencement of
EMI. Customer may opt to pay the EMI‟s by direct deduction from their monthly salary. They
can also issue postdatedcheques and can also issue standing instruction to their bankers or can
pay the installment at any of the UNION BANK OF INDIA collection centers.
FLEXIBILITY IN REPAYMENT
Following are the repayment option features being offered by UNION BANK OF INDIA to their
customers:
 Step up Repayment Facility (SURF): This scheme help young executive to take a bigger
loan today based on an increase in their future income, this will help executives to buy a
bigger home today. In this EMI‟s of the customer increases in future.
 Flexible Loan Installment Plan (FLIP): Often customers, parents and their children wish
to purchase property together. The parents are near to retirement and their children just
started their work. This option help customers to combine their income and take a long
term home loan wherein the installment reduces after the retirement.
 Tranching: To help the customers save their interest, UNION BANK OF INDIA
introduced a special facility known as Tranching. In this customer has the option to start
their EMI‟s even before the full disbursement of the loan. By this facility customer can
repays their loan faster.
8
CHAPTER II
REVIEW OF LITERATURE
9
REVIEW OF LITERTURE
In the recent years the demand of home loans has increased dramatically. Part of the
reason for this increase is because of accessibility of loans has gotten bigger. Today home loans
are available in the market at very low and good rates that meet the demands of many home
buyers.
A home represents the largest asset that typically people have and this is why home loans
have such a huge impact in the loan market today. When a person purchases a home he or she
will be investing a huge amount of cash. Many people can‟t come up with the whole money to
pay out to the house, while some others can‟t even afford to invest money for the house they will
like to purchase in part this is how home loans have turned out to be a benefit for people who
want to buy the home of their choice but cannot afford it at the time.
Now day‟s home buyers don‟t have to worry much about the source of money for their
homes. Home loans have made the life of many house buyers much easier. But house buyers
should be very careful when choosing a home loan. Before doing anything else. Borrows should
make a thorough research of the current interest rates in the market and then opt or go for any
home loan. Buyers could even go for home loans by mortgage. This way the borrowers can get a
loan after pledging or securing any asset or securities of their own against amount of money
barrowed by them.
When getting a home loan the individuals should consider taking care of different aspects
related to the home loan. An individual should be very careful when deciding the principal
amount of the home loan being borrowed or else the person may end up with a very high
principal amount and then he or she will have to pay more interest for the money being borrowed
unreasonable.
The most popular method of financing a home purchase is with a mortgage. This is a loan
that is secured over the home.
10
STAGES OF HOME LOAN:
Application
Data Entry
Login Scanning
Recommendation
Over (ROVR)
Double Checking
Sanctioning
Disbursement of Over (DCOVR)
the loan
After Sales
Services
The representation shown above is not a perfect copy of the actual process. This is because these
stages are taking place simultaneously and one application is being taken care for by the
experienced employees of both UNION BANK OF INDIA Ltd service centre. Also the applicant
may be asked to send information or may be asked questions regarding his requirement and/or
his documents for his own convenience
Hence the loan application may or may not shuttle through different stages
 APPLICATION STAGE
This is the stage where the Application Form first reaches the concerned Service Centre/
workstation. Here all the documents in the application are reviewed by the experienced staff
11
present at the workstation. The UNION BANK OF INDIA Ltd employee who reviews the file
checks to see whether all documents are present and in their proper place, if the documents are
duly filled, not fake, attested by authority and present in order. In case any document is missing
the applicant is contacted electronically or by mail or by telephone and requested for the
document to be submitted. This exercise is called FOLLOW UP. The credit appraisal of the
loan application starts at this stage. The workstation employees compute the gross salary, IIR,
FOIR, Loan Eligibility ratio etc. The credit worthiness of the applicant is calculated here.
It is also at this stage that the QUICK DATA ENTRY of the loan application is done to create a
serial no. of the application. After that another page appears and more data is entered .It is now
that a special and unique LOAN A/C NO. is created under which all the loan processes will be
carried out. The number that has been generated is communicated to the applicant by means of a
letter and/or electronic communication. The system of electronically recording the data helps to
create ready reference, a proof, helps in quick and easy processing of the data. It also helps to
very easily and quickly share data with other employees of UNION BANK OF INDIA.
 The next and important processing performed at the workstation is that of filling up a
document known as the INTERVIEW SHEET for processing individual loans. It contains
various simple entries like
1. Name of borrower
2. Name of co-borrower
3. Income details
4. Family background and permanent address etc
5. Gross Salary
6. Rental
7. Other incomes
8. Obligations
9. Remarks: This column contains the various findings that the employee has found
out after thorough review of the applicants documents such as bank statement,
salary slip etc.
Hence the interview sheet contains the important findings which the employee has collected after
careful review of the various documents .The interview sheet helpsto cut corners and helps save
12
time by not having other employees to go through the documents again and again.It hence acts as
a source of quick reference.
After all this has been performed well enough the loan application will be arranged in a file and
all it will be given its loan a/c no which also acts as its file no..
The file is now ready to be sent to the HUB (Senior Officers) where further processing will take
place. Next step is scanning of the documents.
 SCANNING
In this stage the various important documents of the applicant are scanned. This helps to create
their electronic copy which acts as a ready reference, a proof, and can also be shared and utilized
by other employees of UNION BANK OF INDIA Ltd.
 DATA ENTRY
The file has been sent to the bank head office or the HUB .At HUB there are many experts with
their own specializations. These officials review the various parts of the file again and perform
many specialized tasks.
Data entry is also one of these tasks .This entry is much more different and complex as compared
to the earlier performed Quick Data Entry. An exhaustive amount and type of information has to
be entered into the ILPS system ranging from Personal Details, Employment Details to Property
Rate History and Customer Interactions.
 RECOMMENDATION OVER (ROVR)

The Recommendation over is also referred to as the First Appraisal. At this stage certain
specially appointed persons have been given the responsibility of recommending a loan
These people have to take special care of reviewing every document, and all the small details
that need to be considered before considering the loan application to be valid.
After this the file is sent to another specially appointed person as explained below. At this stage
if any correction or mistake is present it can be sent back to the workstation.
 DOUBLE CHECKING OVER

As the name suggests at this stage a specially appointed person will double check all the past
proceedings. They will examine the Loan file for any discrepancies, any missing and /or
misplaced documents, the Credit Appraisal results, etc.
13
This is a very important stage and must be handled with exceptional care. This is because a
mistake at this stage can cause a great loss to the company. The Double checker is responsible
for the ultimate sanctioning of the loan .If any mistake is done at this stage there is no going back
and hence no protection. UNION BANK OF INDIA takes great care while appointing double
checkers .They should have completed a select number of years with the company and should
have shown exemplary performance and must possess experience.
 SANCTIONING
An authorized sanctioning authority within UNION BANK OF INDIA itself will review the
remarks of Double Checker. If it considers the loan suitable to be sanctioned it gives it approval.
After it has given its approval stamp the ILPS system will automatically send a letter to the
Applicant that his loan has been sanctioned. After this approval the Applicant can go to
whichever Service Centre to get his loan disbursed.
 SPECIAL CASE
A special case can arise if the applicant has not mentioned the property for which he wants to
take a loan. In that case the applicant can let the case be remain pending. This means that the
Applicants loan request will be considered to be complete even though he has not decided the
property. However the Applicant is expected to finalize the property in a short time
A Property Address is necessary to:
1. Get the loan disbursed

2. Process the Legal and Technical Appraisal of the property and its Papers.
 DISBURSEMENT
The last and final stage in the Home Loan process is that of disbursement. After the sanctioning
has taken place the applicant becomes a registered customer of UNION BANK OF INDIA
Ltd.He/She can now take the disbursement of the loan from any of the various service center of
UNION BANK OF INDIA .The loan shall be disbursed in one Lump sum or in suitable
installments to be decided by UNION BANK OF INDIA with reference to the need and/or
progress of construction. The borrower hereby acknowledges the receipt of the loan disbursed as
indicated in the receipt.
14
CHAPTER - III
RESEARCH METHODOLOGY
15
OBJECTIVES OF THE STUDY
 To know about the UNION BANK OF INDIA home loan and its products.
 To have the first hand information on loan procedure, sanctioning and disbursement in UNION
BANK OF INDIA.
 To compare the performance of UNION BANK OF INDIA with other market players.
 To study about the financial position of the housing loans for the financial year 2019 – 2020 in
comparison with position in financial year 2020 - 2021.
 The main objective of the study is to find out the tariff changes charges by other banks in
comparison to UNION BANK OF INDIA bank.
 The aim of the study is to help UNION BANK OF INDIA to know where it lacks in loans and
how for the performance of other banks is better so that UNION BANK OF INDIA figure out
the common problems being faced by the customers while dealing in the loan department so that
further UNION BANK OF INDIA can improve its services and schemes offered by them to their
customers.
NEED FOR THE STUDY
Shelter is a basic human need and productive investment. Easy accesses to institutional finance
at affordable rates are an essential pre-requisite for accelerating the tempo of housing activity.
This is more so in the eastern and north-eastern region where the general level of income is
relatively low. It is, therefore, imperative that a specialized housing finance system – albeit as an
integral part of the national finance system – be created for this region for the development of
new housing stock as well as for the renovation, upgradation and expansion of the existing
housing stock in the rural, semi – urban and urban areas1 . Out of the total outlay of Rs.97,500
crores for housing in the 8th Five Year Plan, organized sector is expected to contribute about
Rs.25,000/- crores. The emergence of a number of HFCs in organized and unorganized sectors
has brightened the economic scenario. The potential for the HFCs is vast. The success of HFCs
depends on how effectively they can tap resources. Fortunately, during the last couple of years,
lot of emphasis has been placed on creating an integrated national housing finance system. With
the creation of National Housing Bank, an apex housing finance institution, housing finance has
received added impetus. In addition to the NHB are many housing financial institutions that are
established in India2 . These include UNION BANK OF INDIA, HUDCO, LICHFL,
16
Commercial banks and other housing finance companies. Banks can venture into informal
housing by providing loans for upgradation of the housing stock in a gradual manner over a
period of years. The schemes for financing informal housing can be combined with the schemes
meant for employment and income generation, which can result in the overall improvement in
the living conditions of the poor. The informal housing market also gives a chance for the banks
to capitalize the absence of big existing housing fiancé institutions.
Housing finance being a specialized activity, it is desirable to concentrate the activities by

selected banks rather than the indiscriminate involvement by all banks. As residential housing
loans do not create direct additional income, recovery of loan may prove to be difficult even
though loan may be adequately secured. There are many legal and other hurdles to be tackled
before substantial involvement of banks. At the same time, banks cannot stand apart from
housing finance particularly when many avenues of traditional lending being taken away form
commercial banks in the wake of financial innovations.
In addition to the problem of financing the biggest problem faced by prospective house owners
and buyers is the deficiency in getting services from the house finance companies in India. Even
today the housing finance companies while sanctioning loans to the housing sector are treating
the loans as an extension of their portfolio of loans without studying problems of construction of
houses and borrowers.
It is in this context an attempt is made here to study the problems of housing in the City of
Greater Hyderabad of Andhra Pradesh State in India. It is also aimed at studying and evaluating
the progress of Life Insurance Corporation Housing Finance Limited (LICHFL) and Housing
Development Finance Corporation (UNION BANK OF INDIA) in financing of housing
activities in Hyderabad. In addition to study the service quality rendered to house owners and
customers.
17
SCOPE OF THE STUDY:
The study focuses on prevailing rate of interest, percentage of funding, tenure of home loan, fee
etc being charged by other banks in comparison to UNION BANK OF INDIA.
From this study, UNION BANK OF INDIA can identify the difference between the schemes and
charges charged in comparison to with its competitors. Hence UNION BANK OF INDIA can
change their schemes to perform better than other banks and can attract more customers. The
present study focuses on analyzing the balance sheet and profit and loss statement of UNION
BANK OF INDIA for the last two years.
RESEARCH METHODOLOGY
RESEARCH METHODOLOGY USED IN PROJECT
Ho. There is no difference between observed and expected frequencies.
H1: there is difference between observation and expectation

METHODS OF COLLECTION OF DATA
For the project number one i.e. The Comparative Study of housing Loans provided by UNION
BANK OF INDIA with other financial institutions various banks like ICICI, Punjab National
Bank, AXIS Bank etc. were surveyed. The whole procedure of the disbursement of loan, various
schemes, interests rates etc. Factors were obtained from various banks. The whole data was the
organized in excel files and later on considering all the factors the whole data was analyzed.
PRIMARY DATA
Primary data is collected from different banks of Chandigarh (shown above as Major Players)
regarding the comparative analysis of housing loan schemes offered by different financial
institutions.
SECONDARY DATA
Secondary data refers to the one which has already been collected by someone else .The
secondary data was collected from the office account records and annual report of the company.
Secondary data sources for this study are:
 Websites of UNION BANK OF INDIA and other financial institutions
18
 Pamphlets/Brochures/Magazines
 Annual report
 Newspaper/ Articles
 Mangers of different banks deal in housing loans.
Proposed statistical Tools for the study
Descriptive statistics- mode , percentages, frequencies, bar graphs and pie charts
Mann-Whitney Test
Correlation Analysis
Chi-square
Ratio Analysis
TOOLS USED IN THE ANALYSIS

 Statistical tools
 Financial tools
Research gap
Period of study
4 years data Time gap 2017 completed study from 2017_2021
LIMITATIONS OF THE STUDY
Every study conducted may have certain shortcomings and unfortunately mine is also a similar
case. A few errors have crept in despite mine best efforts to avoid them but it is expected that
still mine study and findings are very much relevant.
 An error may have been due to the samples taken not conforming to the actual
population; this is because the sample was a convenience sample.
 Certain questions which are not properly responded by the Respondents.
19
 Personal bias or personal error of the interviewer might also have crept in, some cases,
while interpreting the respondents.
 There are several customers who don‟t show proper interest in filling the questioner as
they feel that they won‟t get any benefit after filling the questioners and it‟s just a waste
of time for them.
 COMMON PROBLEMS FACED BY UNION BANK OF INDIA HOME LOAN

CUSTOMERS:
 Rejection at the first stage due to incompatibility between the borrower‟s qualifications
and lenders requirements. It could be the age criteria, income criteria, improper
documents, the institution not being able to verify the customer‟s details properly etc.
 With every application form for home loans, UNION BANK OF INDIA require about
0.25% to 1% of the loan amount to be submitted as the processing fees. The processing
fees are generally non-refundable. In simple words this means that for whatever reasons,
if the institution finds that customer doesn‟t deserve the home loan this fee won‟t be
returned.
 Another limitation is that desired loan is usually not sanctioned. The loan amount
sanctioned is mostly based on repayment capacity of the borrower. The monthly income,
financial history or other unpaid loans with the borrower, past payment record, credit
card usage history, if any bounced cheque, average balance with the banks, total years in
employment etc. . These factors all clubbed together help in the institution to decide
whether it will be able to recover its money satisfactorily or not.
 The interest rate dilemma
 Another major limitation is Difference in property valuation. The company has its own
experts for legal, technical and financial appraisal of the property in question. It evaluates
the property on its established parameters and assigns a value to it .This value can be
significantly lower than the price the customer quoted for the property. This can cause a
significant gap between what is needed and what the company is willing to lend.
 Another is the Title deeds and NOC Documentation Problem. The Title deeds and NOC
Documents have to be furnished in the bank‟s format. Borrower‟s who don‟t provide
them in proper format, will ruin the entire exercise and won‟t get any loan.
20
CHAPTER – IV
THEORETICAL FRAME WORK
21
Home is an integral part of a human being, who since his childhood, dreams to have
living space
of his own. Once in a lifetime investment requires loan to do it and that is how the home loan
comes into scheme of things. Buying a home is dream for everyone. Due to the rising price of
properties, it has almost become impossible for an average earning person to buy a home through
lump sum payment. Therefore, the concept of home loan has come into existence. There are
plethora of housing finance institutions and banks both in public and private sector which offer
home loans. Choosing one institution and one offer for home loan amidst the thousands available
options have become a very complex task in our country. Apart from this, there are intricate
business jargons and technicalities that make this job more tough and difficult. Through this
study, I propose to identify the critical factors impacting the growth and distinguishing the
growth pattern in home loan portfolio particularly in public sector banks in India.
Housing in India
The housing is one of the basic needs of the people as it ranks next to food and clothing.
A certain minimum standard of housing is essential for a healthy and civilized living. Thus, the
priority has to be given for the development of housing in a country. The human settlements
have a lot of impact on environment. It is a tool for modern economic development. The census
records of India exhibits that there was no deficit-housing problem in India till the first half of
the century. In 1901, there were 55.8 million houses for 54 million households showing a surplus
of 1.8 million houses. This surplus situation continued till 1941. It was only after 1951, the
deficit trend has started and is continuing with an escalating magnitude. In 1971, total number of
households was 100.4 million and the number of houses was 90.7 million, showing a deficit of
9.7 million. The housing shortage in 1991 was about 31 million units. The housing shortage
during 2001 was 41 million. The estimated housing stock requirement in the country by 2021 is
about 77 million in urban areas and 63 million in rural areas.
The increasing number of houses and a rising trend in the size of the households has contributed
to the shortage of housing stock in the urban areas. Only 20% of the Indian population lived in
22
urban areas in 1970 (UNDP 1998). The urbanization is expected to increase still. This resulted in
an estimation of 36% of the population to live in urban areas by 2016.
In India, there is a very widening gap between the supply and demand for housing. There is an
urgent need to modify the policy on one hand and look for an innovative approach for
construction of houses on the other to reduce the deficit. The Government of India(GoI) had
introduced schemes and projects for housing problem in every five year plans. The National
housing Policy formulated by government of India takes into account the developments on
national and international scene on shelter sector. The adoption of National Housing Policy by
the Parliament in 1994 was a landmark step in promoting housing development in the country
The policy in its endeavor has reduced deficit of housing to some extent. It envisages a major
shift in the Government‟s role towards being a facilitator rather than provider.
The working group on urban housing for the ninth plan gave a thrust to housing development an
targeted construction of 8.87 million housing units. The National Housing and Habitat Policy
1998 emphasized housing for all by the end of 2007 (Peter D F Cardozo). This would have been
achieved with the help of public and private firms and corporate sectors. The rapid urbanization
and a changing socio-economic scenario led to a greater demand for housing. This led to an
exponential growth in housing finance market
Home Loan is the funds buyer has to borrow usually from a bank or other financial institutions to
purchase a property, generally secured, by a registered mortgage to the bank over the property
being purchased. A mortgage loan is a debt owed on a home, the mortgage rate is the interest rate
charged to the home owner for the use of the loan. Home loan is a broad topic, the concept of
which may vary across lands, regions and countries, particularly in terms of the areas it covers.
For example, what is understood by the term “home loan” in a developed country may be very
different from what is understood by the term in a developing country.
The International Union for Housing Finance, as a multinational networking organization, has no
official position on what the best definition of housing finance is. However, the selection of
quotes below is offered as a snapshot of what housing finance as a topic covers:
23
“Housing finance brings together complex and multi-sector issues that are driven by constantly
changing local features, such as a country‟s legal environment or culture, economic makeup,
regulatory environment, or political system.”
24
CHAPTER V
COMPANY PROFILE
25
COMPANY PROFILE
About Union Bank of India
Union Bank of India is one of the leading public sector banks of the country. The Bank is a listed
entity and the Government of India holds 89.07 percent in Bank‟s total share capital. The Bank,
having its headquarters at Mumbai (India), was registered on November 11, 1919 as a limited
company. Today, it has a network of 9500+ domestic branches, 13300+ ATMs, 11700+ BC
Points, serving over 120 million customers with 75000+ employees. The Bank also has 3
branches overseas at Hong Kong, Dubai International Financial Centre (UAE) & Sydney
(Australia); 1 representative office in Abu Dhabi (UAE); 1 banking subsidiary at London (UK),
1 banking joint venture in Malaysia; 3 para-banking subsidiaries and 3 joint ventures (including
2 in life insurance business). Union Bank of India is the first large public sector bank in the
country to have implemented 100% core banking solution. Recently, Andhra Bank and
Corporation Bank were amalgamated into Union Bank of India with effect from 01.04.2021.
with this, the Bank‟s total business as of 1st April 2021 stood at Rs.15,34,749 crore, comprising
Rs. 868632 crore of deposits and Rs. 666117 crore of advances.The Bank has received several
awards and recognition for its prowess in technology, digital banking, financial inclusion,
MSME and development of human resources.
The registered as well as corporate headquarters of Union Bank of India is in the prestigious
Nariman Point area of Mumbai, the commercial capital of India.
Union Bank Bhavan, 239, Vidhan Bhavan Marg, Nariman Point,
Address in detail Mumbai –
400 021, Maharashtra, India
Phone number [Board] +91 22-22892000
Bank Website www.unionbankofindia.co.in
Internet Banking site www.unionbankonline.co.in
All-India Toll Free numbers : 1800 22 22 44 / 1800 208 2244 /
18004251515
Call Centre 24x7
Charged Numbers : 080-25300175
Dedicated number for NRI : +918025302510
History :
Union Bank of India was established on 11th November 1919 with its headquarters in Mumbai.
It was promoted by Seth Sitaram Poddar.
The Head Office building of the Bank in Mumbai was inaugurated by Mahatma Gandhi, the
Father of the nation in the year 1921, and he said on the occasion:
"We should have the ability to carry on a big bank, to manage efficiently crores of rupees in the
course of our national activities. Though we have not many banks amongst us, it does not follow
26
that we are not capable of efficiently managing crores and tens of crores of rupees." His prescient
words anticipated the growth of the bank that has taken place in the decades that followed.
Union Bank of India – Oldest Logo
Union-Bank-of-India Old Logo
Union Bank of India Logo
Union Bank of India Logo – Post Amalgamation
Logo:
The logo features two interlocking U‟s in red and blue, stands for the consumer and the bank.
The two U‟s stand for union and the integrity, security and strength, which Union Bank of India
stands for. The colour blue represents commitment, while red is symbolic of the passion that
exists at Union Bank of India
Did you know :
27
The First safe deposit vault was formally opened on 22 April 1939.
At the time of Independence in 1947 .Union Bank of India had 4 Branches.
In 1964, Bank‟s 100th Branch opened at Irinjalakuda in Kerala. 3 Pvt sector Banks Perunbavoor
Bank Ltd, Catholic Union Bank Ltd, Nadar Mercantile Bank Ltd were taken over.
In 1969 when Bank was nationalized Mr F.K.F Nariman became its first custodian.
In 1974 Bank was assigned 8 Lead districts – 4 in UP, 2 each in Kerala and MP for assisting
rural development.
In 1975 Belgaum Bank Limited, a private sector Bank was taken over by Union Bank of India
adding as many as 40 Branches.
In 1978 Bank became the first Nationalised Bank to publish Annual Report in Hindi.
In 1982 Bank received Government‟s National Award from President of India for outstanding
export performance during 1979-80.
In the post reforms era Bank doubled itself in business from 1993 to 1996.
In 1999 Sikkim Bank Ltd with 8 Branches merged with the Bank.
In 2002 Public Issue of 18 Crore shares oversubscribed by 5.22 times. Shares listed on BSE and
NSE.
In 2003 Bank was among the 1st Public Sector Banks to initiate Anytime and Anywhere
Banking along with Telebanking.
In 2004 the Bank was among the 7 new entrants to Forbes - 2000 list of world‟s biggest and most
powerful companies.
In 2007 Bank opened record number of 56 new branches across the country in a single Day.
Bank opened its first Bio-metric ATM. Bank opened India‟s highest altitude ATM at 14300 ft in
Serethang, Nathulla, Sikkim.
In 2008 Bank became the 1st Large nationalized Bank to achieve 100 % CBS networking. Bank
unveils new logo and launches re-branding initiative. U-Mobile Launched –Becomes 1st Public
sector Bank to launch Mobile Banking Facility in 2008.
In 2009 Bank sponsored Rewa Siddhi Gramin Bank becomes the first RRB in the country to
achieve 100 % CBS connectivity.
In 2012 Bank inaugurates First Talking ATM specially made for the benefit of visually
challenged.
In 2013 Bank opened record 111 branches on its foundation day 11.11.2013.
In 2014 Bank opened 96 branches on its foundation day i.e 11.11.2014.
28
In 2016 Bank launched its UK subsidiary in London.
Amalgamation :
In August 2020 Union Bank of India has been selected by Government of India as Anchor Bank
for the amalgamation of Andhra Bank, Corporation Bank into Union Bank of India. The
amalgamation took place on 1st April 2021. Our proven history of reliability stems from
excellence in customer service and trust built over combined legacy of 300+ years. The
amalgamation will help us to offer best-in-class products through wider network of branches
spanning each and every state of India.
Awards & Accolades:
Union Bank of India has been the proud recipient of many awards and commendations. It is an
honor to be appreciated for the work we do in serving the customer and society.
Awarded By Awards Awarded For

CEO with HR Orientation
World HRD Congress Global Citation & Award
Sustainable HR Leadership
Knowledge
Use of Best Training Methods for Best Training Methods for
Management
Knowledge Management Knowledge Management
Leadership Awards
Excellence in Training &
Development Award: An Overall
Award for Best Result Based
ET Now “Stars of the Training Excellence in Training &
Industry Awards” Development
Best Training Initiative for Banking
Sector
Training Provider of the Year
Creating Workplace of
People Labs IAC2021 Corporate Awards
Tomorrow
Honey Net - GOLD, as Semi-

Banking
finalist for SKOCH
Cyber Security Awareness
GOLD, as Semi-finalist
Solution
SKOCH Awards
GOLD, as Semi-finalist Data Security
SILVER, as Semi-finalist Vulnerability Management
29
IDG Security CSO 100 AWARDS CSO 100 AWARDS
Finnovity Award Innovation in cyber security
Finnovity Award 2021
2021 for “Cyber Defence Centre
Best Security Practices in
DSCI (Data Security
Special Jury award organization – December
Council of India)
2020
IT Risk Management &
IBA (Indian Bank‟s
Banking Technology Award 2021 Cyber Security Initiative. –
Association)
20th Feb 2021
Infosys Client Application Programming
Runner up in „Modern Technologies
Innovation Awards Interface Management
led innovation‟
2021 (APIM) technology.
SKOCH Group GOLD (Under MSME Category) Leadership in MSME
Winner in “Best MSME Bank Best MSME Bank
ASSOCHAM
(Public Sector Bank)” (Public Sector Bank)
30
CHAPTER VI
DATA ANALYSIS AND

INTERPRETATION
31
DATA ANALYSIS AND INTERPRETATIONS
A) Comparison of home loans
The comparative study of UNION BANK OF INDIA home loan products and process was
conducted with similar services offered by other financial institutions. The study was done on the
leading market players like STANDARD CHARTERED, IDBI, AXIS, UNION BANK OF
INDIA Bank etc. The study illustrates prevailing rate of interests, percentage of funding, tenure
of home loan and fees, documentation and repayment options features etc being launched in
other banks.
From this study, UNION BANK OF INDIA can identify the difference between their schemes
and charges charged by other banks. Therefore this can help UNION BANK OF INDIA to
change their schemes accordingly so as to perform better than other financial institutions.
B) Financial Analysis
The study of Balance Sheet and Profit and loss A/c of UNION BANK OF INDIA Ltd. for two
years i.e. 2020 - 2021 and 2019 - 2020.The financial statements for these two years help me out
in preparation of Ratio Analysis and Cash Flow Statement of UNION BANK OF INDIA Bank.
From this study of Ratio Analysis and Cash Flow Statements to interpret the results that the
future of UNION BANK OF INDIA Bank is bright.
32
BUSINESS PROFILE(for self-employed people)
UNION
STANDARD
BANKS IDBI BANK AXIS BANK BANK OF
CHARTERED
INDIABANK
1. SALES DEED
2. MUTATION
3. LEGAL
SEARCH REPORT
(BANK
ADVOCATE)
4. DESIGN &
ESTIMATE
(ARCHITECT) 5.
VALUATION
REPORT
6. ITR (LAST 3
YEARS)
ITR & BALANCE
7.BALANCE
DOCUMENT SHEET &P/L (LAST
SHEET & P/L ALL SAME ALL SAME
S 2 YEARS) &
(LAST 3 YEARS)
OTHERS SAME
8. BANK
STATEMENT
(CURRENT &
SAVINGS, 6
MONTHS)
9. BUSINESS
PROFILE
10. ID PROOF
11. RESIDENCE
PROOF
12. PHOTOS
13. PROPERTY
PAPERS
UPTO 30
LACS
1st YEAR –
8.25%
2nd YEAR –
UPTO 5 YEARS – 9%
UPTO 30 LAC – 9% 3rd YEAR –
UPTO 30 LAC –
8.75% 5 – 10 YEARS – 9%
8.75%
RATE OF 30- 50 LACS – 9.25%
INTEREST 9% 30- 50 LACS – 9% 10-15 YEARS – MORE
> 50 LACS –
> 50 LACS – 9.5% THAN 30
9.25%
9.25% 15- 25 YEARS – LACS
9.5% 1st YEAR –
8.25%
2nd YEAR–
9.25%
3rd YEAR –
9.25
33
0.5% OF
LOAN
0.5% OF LOAN
1% OF LOAN TAKEN TAKEN (IF
TAKEN + 1500
PROCESSIN 0.5% OF LOAN (.5% NEGOTIABLE LOAN
LAWYERS FEES
G FEES TAKEN FOR GOVT ALREADY
(NOT
EMPLOYEES) EXIST THEN
NEGOTIABLE)
NEGOTIABLE
.25%)
A. MAX 60% OF
NET INCOME FOR FLAT/PLOT
BELOW 55 YEARS -
B.BELOW 55 MAX YEARS - 20 MAX 20
MAX 20 YEARS
REPAYMEN YEARS -MAX 20 YEARS YEARS OR 60
REPAYMENT
T TERMS YEARS CONSTRUCTION YEARS OF
PERIOD OR 65
REPAYMENT MAX YEARS - 10 AGE
YEARS OF AGE
PERIOD OR 65 YEARS
YEARS
GROSS INCOME -
4 TIMES MAX
85% of the cost of 85% of the cost of 85% of the cost
NET INCOME - 5
ELIGIBILIT property OR 4 times property ( below 30 of property OR
TIMES &
Y OF LOAN the amount of lakhs) OR 80% of the 100% of the
MAX AMOUNT -
AMOUNT income (Avg of 3 cost of property (above amount of
50 LACS & FOR
years' income) 30 lakhs) registry.
( 7 METROS)- 100
LACS
90%
PREPAYMEN
T ANYTIME
OWN NIL ( AFTER 6 STARTING
NIL
SOURCE MONTHS) FROM THE
NEXT
MONTH OF
THE LOAN.
12 EMI TO
REFINANCE 2% 2% RUN AFTER
THAT.
INSURANCE
YES
OF THE YES (OPTIONAL) YES (OPTIONAL) NO
(OPTIONAL)
PROPERTY
Any area inside
Any area inside or or outside
Any area inside or
outside tricity the tricity the
outside tricity the
condition being it condition being
AREAS OF condition being it NOT OUTSIDE
should not have it should not
FUNDING should not have been THE TRICITY
been given on GPA have been
given on GPA or
or through Share given on GPA
through Share transfer
transfer or through
Share transfer
Guarantor is
required(one who is
GUARANTO an Income Tax DEPENDS UPON NOT
NOT REQUIRED
R Assessee and he/she CASE REQUIRED
has to have an
account in State
34
bank of india)
ADDITIONA DEPENDS UPON DEPENDS UPON

N/A N/A
L SECURITY CASE CASE
BUSINESS PROFILE(for self-employed people)
UNION BANK OF
BANKS AXIS BANK BANK OF INDIA
INDIA Ltd.
1. PHOTOGRAPHS
2.IDENYITY PROOF
1. BALANCE SHEET, P
3.LOCAL ADDRESS PROOF
& L AND ITR (LAST
4.BANK STATEMENT
THREE YEARS)
(LAST 6 MONTHS)
2. BUSINESS PROFILE
5. ITR (LAST 3 YEARS)
3. COPIES OF
6. BALANCE SHEET & P/L
INDIVIDUAL TAX
(LAST 3 YEARS)
DOCUMENTS ALL SAME CHALLANS FOR THE
7.PROOF OF WORTH
LAST THREE YEARS.
8. SALE AGRREMENT
4. COPY OF
9. COPY OF APPROVED
ADVANCE TAX
MAP.
CHALLAN (IF ANY)
10ESTIMATION OF
5.BANK STATEMENT
CONSTRUCTION.
( LAST 12 MONTHS)
11. COPY OF TITLE DEED
& PREVIOUS TITLE DEED
RATE OF UPTO 30 LACS

INTEREST - 8.75%
ABOVE 30
LACS – 9.25%
PROCESSING 0.5% OF LOAN .55% OF THE LOAN 1% OF LOAN
FEES TAKEN AMOUNT AMOUNT
MONTHLY
EMI
FOR 25
REPAYMENT 15 YEARS - 1029 PER LACS
YEARS - 822 MAX TO 20 YEARS
TERMS 10 YEARS - 1267 PER LACS
FOR 20
YEARS - 884
FOR 15
35
YEARS - 999
FOR 10
YEARS – 1253
A. IIR (INCOME
INSTALMENT RATIO)
= EMI/GROSS
85% OF THE
75% OF THE COST OF INCOME
COST OF
ELIGIBILITY PROPERTY OR 4 TIMES MAX 40%, IN CASE
PROPERTY
OF LOAN LAST THREE YEARS MORE EMI REDUCE
OR 55% OF
AMOUNT AVERAGE ANNUAL B. FOIR
THE NET
INCOME = ALL
INCOME
OBLIGATION/GROSS
INCOME ,
MAX TO 35%
OWN
SOURCE
REFINANCE NIL NIL
INSURANCE
OF THE NIL 0.65% YES (OPTIONAL)
PROPERTY
APPROVED
PROJECTS ONLY &
FLATS
TRANSFERABLE ON
REQUIRED
AREAS OF YES GPA & ALSO
FORBUILDINGNOTFORLA
FUNDING (OPTIONAL) FUNDED WITH
ND
ADDITIONAL
SECURITY i.e 1.5
TIMES THE GPA
PROPERTY
Any area inside
or outside tricity
the condition Any area inside or outside
being it should tricity the condition being it DEPENDS UPON
GUARANTOR
not have been should not have been given on CASE
given on GPA GPA
or through
Share transfer
LOCAL GURRANTOR IN
CAES OF OUTSIDE
ADDITIONAL NOT DEPENDS UPON
TRICITY, MIGHT REQUIRE
SECURITY REQUIRED CASE
KEEPING THE PROPERTY
INTO CONSIDERATION
36
COMPARATIVE ANALYSIS OF VARIOUS BANKS FOR HOME LOANS (for employed
people)
STANDARD UNION BANK OF INDIA
BANK OF INDIA.
CHARTERED LIMITED
75% of the cost of
Maximum loan 75% of the cost of Property or four
85% of the cost of property
amount the property times the avg income
of last three years
Rate of interest:
(FLOATING)
Till 30th June all
applications received can be
locked in under dual rate.
March 2016 - 8.25%, Till
March 2017 - 9% 3rd year
onwards Floating rate(
9.25%(for 10 years PLR-4.75%)
below 30 lakhs 8.5% floating
n above) housing loan: upto 30 lakhs-
8.75%, 30 - 50 lakhs -9%,
above 50 lakhs - 9.25%
Plot loan: Upto 30 lakhs -
9.25%, 30 - 50 lakhs -
9.5%, above 50 lakhs -
9.75%
9% ( for below 10 following loans are given
30 lakhs - 50 lakhs
years)
when the person has home
more than 50 lakhs loanEquity loan ( loan
against property) 11.25%
top up loan - 10.25%
education loan - upto 30
lakhs - 9.75%, 30 - 50 lakhs
-10%, above 50 lakhs -
10.25%
Processing charges 0.55% 1% of the loan amount
fixed: 2% if the amount
Pre-payment being repaid is more than
51,229.20
charges: 25% of the opening balance
own source Nil adjustable: 2% if the
Refinance 0.65% amount being repaid is
more than 25% 0f the
Broken Interest opening balance and is paid
Charges within 3 years of the date of
first disbursement.
Additional security in case of GPA not required in case of GPA
Insurance of the required for building
required for building optional
property not for land
37
any area but the project has
to be approved by the MC.
GPA property is also
anywhere except
Area of funding financed but with an
GPA
additional security of 1.5
times the cost of the GPA
property.
local guarantor in
case of outside
depends on case to tricity. Might require
Guarantor depends on case to case
case a guarantor in tricity
keeping property
into consideration.
Resale of the
property
sale agreement, copy
of the title deed and
previous title deeds,
copy of the approved
map duly signed,
Additional estimation of the
area to be approved by MC
documents construction/
renovation cost, any
other statutory
permission as
required by the local
authority.
DOCUMENTS
REQUIRED:
(1)Income tax return
with computation 3 3 3
(years)
(2)Balance sheet and
Income statement 3 3 3
(years)
(3) Six months bank
√ √ √
statement
(4) Residence proof √ √ √
(5) Pan card √ √ √
(6)Landline bill
√ √ √
original
(7) Business Profile not required not required √
(8) Property paper √ √ √
(9) Passport size √(applicant +
√ √
photograph guarantor)
(10) R C
not required not required not required
Photocopies
38
COMPARATIVE ANALYSIS OF VARIOUS BANKS FOR HOME LOANS (for employed
people)
STANDARD AXIS UNION BANK OF
IDBI BANK
CHARTERED BANK INDIA BANK
85% of the cost 85% of the cost
of property OR 4 of property (
85% of the 85% of the cost of
Maximum loan times the amount below 30 lakhs)
cost of property OR 100% of the
amount of income (Avg OR 80% of the
property amount of registry.
of 3 years' cost of property
income) (above 30 lakhs)
Rate of interest:
( FLOATING )
8.25% for first year; 9%
below 30 lakhs 8.75% 8.75% 8.75% for second year; 9.25%
onwards
30 lakhs - 50
9% 9% 9% for second year; 9.25%
lakhs
onwards
more than 50
9.25% 9.25% 9.25% for second year; 9.25%
lakhs
onwards
1%
Processing 0.5% ; 0.25%(if loan
0.50% 0.50% (negotiable)(.50%
charges already existing)
for govt
90% prepayment
Pre-payment anytime starting from the
charges: next month of the loan.
12 EMIs to run after that.
nil (after 6
own source Nil nil
months)
Refinance 2% nil 2%
Broken Interest
√
Charges
Additional depends upon the

not required not required not required
security case
Insurance of the
Yes yes optional not required
property
39
Any area inside
or outside tricity
the condition
being it should
Area of funding
not have been
given on GPA or
through Share
transfer
Guarantor is
required(one who
is an Income Tax
yes in case of
Assessee and Not
Guarantor business,no in not required
he/she has to have required
case of salaried
an account in
State bank of
india)
Resale of the allowed with
Allowed allowed allowed
property security
Registered Sale
deed, Mutation
Additional Not depends upon the Map and Area to be
copy, map and
documents required case approved by the MC
estimate approved
by the authority
DOCUMENTS
REQUIRED:
(1)Income tax
return with
3 3 2 3
computation
(years)
(2)Balance sheet
and Income 3 3 2 3
statement (years)
(3) Six months
√ √ √ √
bank statement
(4) Residence
√ √ √ √
proof
(5) Pan card √ √ √ √
(6)Local
not required not required not required √
Address Proof
(7) Business
√ not required √ √
Profile
(8) Property
√ √ √ √
paper
(9) Passport size
√ √ √ √
photograph
40
UNION BANK OF INDIA RATIO ANALYSIS
for year ending March 31, 2020
1. CURRENT RATIO: CURRENT ASSETS/CURRENT LIABILITIES
For the Year 2019 - 2020
Rs.53,59,17,46,262 = 2.018:1
Rs.26,56,16,40,847
For the year 2020 - 2021
Rs.18,76,16,65,268 = 0.651:1
Rs.28,83,36,87,487
Note: 1.Current Assets Are Taken Except Loans And Advances
2. Current Liabilities Are Taken Except Provisions
2. ABSOLUTE LIQUID RATIO: ABSOLUTE LIQUID ASSESTS/CURRENT
LIABILITIES
Rs.5,22,41,47,60,065- Rs.5,85,606
Rs.26,56,16,40,847
= Rs.52,24,08,90,459 = 1.97:1
Rs.26,56,16,40,847
Rs.17,18,48,32,905 = 0.338:1
Rs.28,83,36,87,487
41
Note: 1.Absolute Liquid Assets =Cash And Bank Balance Except Cash With RBI
2. Current Liabilities Are Taken Except Provisions
3. RATIOS OF LONG TERM DEBT TO SHAREHOLDERS’ FUND: LONGTERM

DEBT/SHAREHOLDERS’ FUND
Rs.8,77,71,97,08,058 = 5.78:1
Rs.1,51,97,65,86,590

Rs.7,59,54,90,10,918 = 5.78:1
Rs.1,31,37,38,78,513
Note: 1.Long Term Debt Are Taken Except Following:
A) Short Term Foreign Currency Borrowings From Banks

B) Unsecured Foreign Currency Convertible Bonds
C) Loans From Scheduled Banks (Unsecured)-Short Term
D) Commercial Paper(Unsecured)
E) Interest Accrued And Due
2. Shareholders’ Fund=Share Capital + Reserves And Surplus
4. PROPRIETORY RATIO: SHAREHOLDERS’ FUND/TOTAL ASSETS
Rs.1, 51,97,65,86,590.
Rs.11, 17, 62, 96, 74,904+ Rs.48,78,46,89,701
= Rs.1, 51,97,65,86,590 = 0.130:1
Rs.11, 66,41,43,64,605
42
Rs.1,31,37,38,78,513.
Rs.9,69,93,46,86,387+ Rs.46,63,44,72,308
= Rs.1,31,37,38,78,513 = 0.129:1
Rs.10,16,56,91,58,695
Note: 1.Shareholders’ Fund=Share Capital As Per Schedule 1 + Reserves And
Surplus As Per Schedule 2
2. Total Assets= Loans And Advances As Per Schedule4 + Investment As Per
Schedule 5 + Current Assets, Loans And Advances Schedule 6 +

Fixed Assets As Per Schedule 8
5. FUNDED DEBT TO TOTAL CAPITALIZATION: FUNDED DEBT / TOTAL

CAPITALIZATION * 100
Rs.9,65,65,30,88,314 = 0.864:1
Rs.11,17,62,96,74,904
Rs.8,38,56,08,07,874 = 0.865:1
Rs.9,69,93,46,86,387
Note: 1.Funded Debt= Loans As Per Schedule 3
2. Total Capitalization =Share Capital As Per Schedule 1+ Reserve And Surplus As Per
Schedule 2+ Loans As Per Schedule 3
43
6. DEBT/EQUITY RATIO: OUTSIDERS’ FUND/SHAREHOLDERS’ FUND
OR
EXTERNAL EQUITIES/INTERNAL EQUITIES

Rs.9,65,65,30,88,314 = 6.35:1
Rs.1,51,97,65,86,590

Rs.8,38,56,08,07,874 = 6.39:1
Rs.1,31,37,38,78,513
Note: 1. Outsiders’ Fund= Loans As Per Schedule 3
2. Shareholders’ Fund=Share Capital As Per Schedule 1 + Reserves And

7. SOLVENCY RATIO: TOTAL LIABILITIES TO OUTSIDERS/TOTAL ASSETS
Rs.9,92,21,47,29,161 = 0.851:1
Rs.11,66,41,43,64,605
Rs.8,67,39,44,95,361 = 0.853:1
Rs.10,16,56,91,58,695
Note: 1.Total Liabilities to Outsiders= Loan Funds As Per Schedule 3 +Current Liabilities And
Provisions As Per Schedule 7 (Except Provisions Under Schedule 7)
2. Total Assets= Loans and Advances As Per Schedule 4 + Investment As Per
44
Schedule 5 + Current Assets, Loans And Advances Schedule 6 +
Fixed Assets As Per Schedule 8
8. FIXED ASSETS TO NET WORTH RATIO: FIXED ASSTS (AFTER

DEP.)/SHAREHOLDERS’ FUND
Rs.2,22,11,41,613 = 0.0146:1
Rs.1,51,97,65,86,590
Rs 2,03,40,51,342 = 0.0155:1
Rs 1,31,37,38,78,513
Note:1.Fixed Assets= Net Block As Per Schedule 8

9. FIXED ASSET RATIO: ORFIXED ASSET TO LONG TERM FUNDS: FIXED ASSTS
(AFTER DEP.)/TOTAL LONG TERM FUNDS

Rs.2,22,14,11,613 = 0.0022:1
Rs.10,29,69,62,94,648
Rs.2,03,40,51,342 = 0.0023:1
Rs.8,90,92,28,89,431
45
Note: 1.Fixed Assets= Net Block As Per Schedule 8
2.Total Long Term Funds= Share Capital As Per Schedule 1+ Reserves And Surplus As Per
Schedule 2+ Loan Funds As Per Schedule 3
But Loan Funds Are Taken Except Following:
A) Short Term Foreign Currency Borrowings From Banks
B)Unsecured Foreign Currency Convertible Bonds
C)Loans From Scheduled Banks (Unsecured)-Short Term
D)Commercial Paper(Unsecured)
E)Interest Accrued And Due
10. RATIO OF CUURENT ASSETS TO PROPRIETORS’ FUND: CURRENT

ASSETS/SHAREHOLDERS’ FUNDS
Rs.53,59,17,46,262 = 3.354:1
Rs.1,51,97,65,86,590
Rs.18,76,16,65,268 = 0.143:1
Rs.1,31,37,38,78,513
Note: .1.Current Assets Are Taken Except Loans And Advances

46
11. RETURN ON SHAREHOLDERS’ INVESTMENT OR NET WORTH: NET
PROFIT AFTER INTEREST AND TAX/SHAREHOLDERS’ FUND*100
Rs.28,26,48,98,200*100 =18.60%
Rs.1,51,97,65,86,590
Rs.22,82,54,27,543*100 =17.37%
Rs.1,31,37,38,78,51
Note:1.Net Profit = Net Profit After Interest And Tax Taken As Per Profit And Loss Account.

12. EARNING PER SHARE (EPS): EARNING AVAILABLE TO EQUITY

SHAREHOLDER/NUMBER OF EQUITY SHARES
Rs.28,26,48,98,200 =Rs.98.45 Per Share
28,71,10,222 Shares
Rs.22,82,54,27,543 =Rs.80.24 Per Share
28,44,53,910 Shares
Note:1.Earning Available To Equity Shareholders’= Net Profit After Interest And Tax Taken As
Per Profit And Loss Account.
2.Number Of Equity Shares= No. Of. Equity Shares Are Given In Share Capital As Per Schedule 1
47
13. DIVIDEND PER SHARE: PROPOSED DIVIDEND/NUMBER OF EQUITY
SHARES
Rs.10,33,59,67,992 = Rs.36 per Share
28,71,10,222 Shares
Rs.8,53,36,17,300 = Rs.30 per Share
28,44,53,910 Shares
Note:1.Proposed Dividend Is Taken As Per Profit And Loss Account.
2.Number Of Equity Shares= No. Of. Equity Shares Are Given In Share Capital As Per Schedule 1
14. DIVIDEND YIELD RATIO: DIVIDEND PER SHARE/MARKET PER SHARE
Rs.36*100 = 1.25%
Rs. 2876
Rs.30*100 = 1.12%
Rs. 2686
Note: 1. Dividend Per Share Is Taken As Per Above Calculations.
2.Market Price Per Share Is Taken As Per Balance Sheet.
48
15. DIVIDEND PAYOUT RATIO: DIVIDEND PER SHARE/EARNING PER SHARE
Rs.36*100 = 36.57%
Rs.98.45
Rs.30*100 = 37.39%
Rs.80.24
Note: 1. Dividend Per Share Is Taken As Per Above Calculations.
2.Earning Per Share Is Taken As Per Above Calculations.
16. PRICE EARNING RATIO: MARKET PRICE PER SHARE/EARNING PER

SHARE
Rs.2876 = 29.21:1
Rs.98.45
Rs.2686 = 33.47:1
Rs.80.24
Note: 1.Market Price Per Share Is Taken As Per Balance Sheet.
2.Earning Per Share Is Taken As Per Above Calculations.
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17. RATIO OF FIXED ASSET TO FUNDED DEBT: FIXED ASSETS (AFTER
DEP.)/FUNDED DEBT
Rs.2,22,11,41,613 = 0.0025:1
Rs.8,77,71,97,08,058
Rs.2,03,40,51,342 = 0.0027:1
Rs.7,59,54,90,10,918
Note: 1.Fixed Assets= Net Block As Per Schedule 8
2.Funded Debt= Loans As Per Schedule 3
18. RATIO OF FIXED ASSET TO FUNDED DEBT: FIXED ASSETS (BEFORE

DEP.)/FUNDED DEBT
Rs.5,24,45,57,998 = 0.0060:1
Rs.8,77,71,97,08,058

Rs.4,93,85,23,820 = 0.0065:1
Rs.7,59,54,90,10,918
Note: 1.Fixed Assets= Gross Block As Per Schedule 8
2.Funded Debt= Loans As Per Schedule 3
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19. RATIO OF RESERVE TO EQUITY CAPITAL: RESERVES AND
SURPLUS/EQUITY CAPITAL
Rs.1,49,10,55,23,520*100 = 98.11%
Rs.1,51,97,65,86,590
Rs.1,28,52,93,78,563*100 = 97.80%
Rs.1,31,37,38,78,513
Note:1.Reserve And Surplus Are Taken Per Schedule 2 Of The Balance Sheet.
2. Equity Capital=Share Capital As Per Schedule 1 + Reserves AndSurplus As Per

Schedule 2
20. RATIO OF CURRENT LIABILITIES TO PROPRIETORS’ FUND: CURRENT

LIABILITIES/ PROPRIETORS’ FUND
Rs.26,56,16,40,847 = 0.175:1
Rs.1,51,97,65,86,590
Rs.28,83,36,87,487 = 0.219:1
Rs.1,31,37,38,78,513
Note: 1. Current Liabilities Are Taken Except Provisions
2. Proprietors’ Fund=Share Capital As Per Schedule 1 + Reserves And

51
21. TOTAL INVESTMENT TO LONG TERM LIABILITIES: SHAREHOLDERS’
FUND + LONG TERM LIABILITIES/LONG TERM LIABILITIES’
Rs.1,51,97,65,86,590+ Rs.8,77,71,97,08,058
Rs.8,77,71,97,08,058
= 1.173:1
Rs.1,31,37,38,78,513+ Rs.7,59,54,90,10,918
Rs.7,59,54,90,10,918
= 1.1729:1
Note: 1. Shareholders’ Fund=Share Capital As Per Schedule 1 + Reserves And

2. Long Term Liabilities Are Taken Except Following:
A)Short Term Foreign Currency Borrowings From Banks
B)Unsecured Foreign Currency Convertible Bonds
C)Loans From Scheduled Banks (Unsecured)-Short Term
D)Commercial Paper(Unsecured)
E)Interest Accrued And Due
22. FREE RESERVES PER SHARE: ALL FREE RESERVES/ NO. OF EQUITY
SHARES
Rs.44,15,89,06,746+ Rs.9,52,45,78,000
28,71,10,222
52
= Rs.53,68,34,84,746 = Rs.186.97 per share
28,71,10,222
Rs.37,20,87,54,723+ Rs.5,20,45,78,000
28,44,53,910
= Rs.42,41,33,32,723 = Rs.149.10 per share
28,44,53,910
Note:1.Free Reserves= General Reserve As Per Schedule 2+ Balance Of Profit And Loss Account
As Per Schedule 2
2.Number Of Equity Shares= No. Of. Equity Shares Are Given In Share Capital As Per
Schedule 1
23. RETURN ON GROSS CAPITAL EMPLOYED:NET PROFIT AFTER TAX and

PREFERENCE DIVIDEND/GROSS CAPITAL EMPLOYED*100
Rs. 28,26,48,98,200*100 = 18.60%
Rs. 1,51,97,65,86,590
Rs. 22,82,52,27,543*100 = 17.37%
Rs. 1,31,37,38,78,513
Note: 1.Net Profit = Net Profit After Tax And Preference Dividend Taken As Per Profit And
Loss Account.
2. Preference Dividend Is Nil Because There Are No Preference Shares
3. Gross Capital Employed= Share Capital As Per Schedule 1 + Reserves And

53
24. RETURN ON NET CAPITAL EMPLOYED:NET PROFIT AFTER TAX and
PREFERENCE DIVIDEND/NET CAPITAL EMPLOYED*100
Rs. 28,26,48,98,200*100 = 22.54%
Rs. 1,25,41,49,45,743
Rs. 22,82,52,27,543*100 = 22.26%
Rs. 1,02,54,01,91,026
Note: 1.Net Profit = Net Profit After Interest And Tax Taken As Per Profit And Loss Account.
2. Preference Dividend Is Nil Because There Are No Preference Shares
3. Net Capital Employed= Share Capital As Per Schedule 1 + Reserves And

Surplus As Per Schedule 2 – Current Liabilities As Per Schedule 7 Except Provisions.
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Year Year
Ratios Of UNION BANK OF INDIA for The Financial Year 2019 - 2020 2020 - 2021
1.Current Ratio 2.018:1 0.651:1
2. Absolute Liquid Ratio 0.338:1 0.338:1
3.Ratios Of Long Term Debt To Shareholders‟ Fund 5.78:1 5.78:1
4. Proprietary Ratio 0.130:1 0.129:1
5. Funded Debt To Total Capitalization 0.864:1 0.865:1
6. Debt/Equity Ratio 6.35:1 6.39:1
7. Solvency Ratio 0.851:1 0.853:1
8. Fixed Assets To Net Worth Ratio 0.0146:1 0.0155:1
9. Fixed Asset Ratio 0.0022:1 0.0023:1
10. Ratio Of Current Assets To Proprietors‟ Fund 3.354:1 0.143:1
11. Return On Shareholders‟ Investment Or Net Worth (In %Age) 18.6 17.37
12. Earning Per Share (EPS) (In Rs.) 98.45 80.24
13. Dividend Per Share (In Rs.) 36 30
14. Dividend Yield Ratio (In %Age) 1.25 1.12
15. Dividend Payout Ratio 36.57 37.39
16. Price Earning Ratio 29.21 33.47
17. Ratio Of Fixed Asset To Funded Debt 0.0025:1 0.0027:1
18. Ratio Of Fixed Asset To Funded Debt 0.0060:1 0.0065:1
19. Ratio Of Reserve To Equity Capital (In %Age) 98.11 97.8
20. Ratio Of Current Liabilities To Proprietors‟ Fund 0.175:1 0.219:1
21. Total Investment To Long Term Liabilities 1.173:1 1.1729:1
22. Free Reserves Per Share Rs. 186.97 Rs. 149.10
23.Return On Gross Capital Employed 18.60% 17.37%
24. Return On Net Capital Employed 22.54% 22.26%
55
UNION BANK OF INDIA RATIO ANALYSIS
for year ending March 31, 2021
Investment Valuation Ratios:
1. Dividend per Share
Dividend is the return to shareholders for their investment in the

company. Higher the dividend, higher the satisfaction & thus higher the confidence. In the given
case of UNION BANK OF INDIA, in year 2019&2018, The Company has provided dividend of
Rs. 36 &Rs. 30 per share against face value of Rs. 10 per share. This proves that the company
has paid dividend at rate of 360% & 300% in year 2019&2018 resp. this shows company is
making huge profits & investors are also satisfied.
2. Free Reserves per Share
It shows the amount of free reserves available per share. In the given
case, in year 2019&2018, the free reserves per share are Rs. 186.97 &Rs. 149.10 resp. which
shows company has surplus money to use in case of any contingent & other liabilities.
3. Ratio of Reserves to Equity Capital
This ratio shows how much reserves are available against equity capital.
Higher the percentage, higher the satisfaction of shareholders & thus higher the stability. In the
case of UNION BANK OF INDIA, in Year 2019&2018, the percentage was 98.11% & 97.80%.
This shows that the company‟s ratio has increased & the stability has also been increased
because of higher reserves available with the company.
Profitability Ratios:
1. Fixed Assets Ratio & Fixed Assets to Net Worth Ratio
These ratios show the relationship of fixed assets with Long Term Funds & Share Holders
Funds. In Year 2019&2018 the fixed assets ratio was 0.0022:1 & 0.0023:1 resp while fixed
assets to net worth ratio was 0.0146:1& 0.0155:1. This shows in 2019 both ratios have been
decreased as compared to Year 2018. This is a bad situation for the company.
56
2. Ratio of Current Assets to Proprietors Funds
This ratio shows that how much current assets are there to cover the
proprietors‟ funds. Higher the ratio higher the solvency. In the case of UNION BANK OF
INDIA, this ratio in Year 2019&2018 was 3.354:1 & 0.143:1resp. As we can see that ratio has
increased from Year 2018 to 2019 which shows company‟s future is bright.
3. Ratio of Current Liabilities to Proprietors’ Fund
This ratio shows the number of times current liabilities are to the proprietors‟ funds. Lower the
ratio is beneficial for the company. In Year 2019&2018, it was 0.175:1 & 0.219:1. This shows
that ratio has decreased from 2018 to 2019 which is good for the company.
4. Total Investment to Long Term Liability Ratio
This ratio shows that how much Long Term Liabilities are covered with
our Investments. Higher the ratio means higher the capacity of company to pay back the Long
Term Liabilities. In the given case of UNION BANK OF INDIA, the ratio in Year 2019&2018
was 1.173:1 & 1.1729:1. In both years the ratio is almost same, we can say that the company is
in good condition because it is able to cover its long term liabilities with its investments.
5. Return on Gross Capital Employed & Return On Net Capital Employed
These ratios establish the relationship between Profits & Capital Employed. It is the primary
ratio to measure the overall profitability of the company. Higher the ratio means higher the
efficiency of the company. In the given case, in year 2019&2018, Return on Gross Capital
Employed was 18.60% & 17.37% resp while Return on Net Capital Employed was 22.54% &
22.26% resp which show higher efficiency of the company, the company is highly efficient.
6. Return on Net Worth
This ratio establishes the relationship between Profits after interest & taxes & Net Worth. It is
the primary ratio to measure the overall profitability of the company. Higher the ratio means
higher the efficiency of the company. In the given case, in year 2019&2018, the ratio is 18.60%
& 17.37% which shows high efficiency of the company.
57
Liquidity & Solvency Ratios:
1. Current Ratio
As per rule of thumb, the best current ratio is 2:1, this means current assets should be twice of
current liabilities but in case of UNION BANK OF INDIA, the current ratios in year 2019&2018
are 2.018:1 & 0.651:1 resp. this shows that company has excess current assets over current
liabilities, which shows high working capital.
2. Absolute Liquid Ratio
As per rule of thumb, the best quick ratio is 1:1, this means absolute liquid assets should be equal
to current liabilities but in case of UNION BANK OF INDIA, the liquid ratios in year
2019&2018 are 0.338:1 & 0.338:1 resp. this shows that company has less liquid assets over
current liabilities. This proves that company has enough assets which can be easily converted
into cash.
Debt Coverage Ratios:
1. Ratios of Long Term Debt to Shareholders’ Fund
This ratio shows the claims of outsiders to the funds. In case of UNION BANK OF INDIA,
Ratios of Long Term Debt to Shareholders‟ Fund in year 2019&2018 are 5.78:1 & 5.78:1 resp.
which shows that the claims are more than the funds; this is a bad situation for the company.
Long Term Solvency Ratios
1. Ratio of Fixed Asset (after dep.) To Funded Debt & Ratio Of Fixed Asset (before dep.)
To Funded Debt
These ratios show the relationship of Fixed Assets with the Funded Debt. Higher the ratio higher
the chances of stability because in case of failure fixed assets will cover the funded debt. In the
given case, in year 2019&2018 the Ratio Of Fixed Asset (after dep.) To Funded Debt is 0.0025:1
& 0.0027:1 resp. while Ratio of Fixed Asset (before dep.) To Funded Debt is 0.0060:1 &
0.0065:1 resp. which shows that company assets are much less than the funded debt.
58
2. Proprietary Ratio:
This ratio shows the relationship of shareholder funds with hat of total
assets. In the case of UNION BANK OF INDIA, in year 2019&2018 it was 0.130:1 & 0.129:1
resp. which shows no more difference between both two years.
3 Debt Equity Ratios
This ratio shows the claims of outsiders to the claims of owners i.e.
shareholders. In case of UNION BANK OF INDIA, the debt equity ratio in 2019&2018 are 6.35
& 6.39 resp. which shows that the claims are more than the equity; this is a bad situation for the
company.
4. Funded Debt to Total Capitalization:
This ratio shows the claims of outsiders to the claims of total capital. In case of
UNION BANK OF INDIA, the funded debt to total capitalization ratio in 2019&2018 are
0.864:1 & 0.865:1 resp. which shows that the claims are less than the total capital; this is a good
situation for the company. & company‟s future is bright.
5. Solvency Ratio
This ratio shows the solvency of the company by comparing total liability to
outsiders with total assets. In UNION BANK OF INDIA case, this ratio in 2019&2018 was
0.851:1 & 0.853:1. As we have seen the ratio has increased from year 2018 t6o 2019, this shows
company‟s status is nice.
Cash Flow Indicator Ratios:
1. Dividend Payout Ratio Net Profit
This ratio shows the ratio of dividend paid out of profits. Higher the ratio higher the investors
satisfaction & interest. This is very beneficial for the company because company can‟t loose
confidence of investors. In the given case, in year 2019&2018, the ratios are 36.57 & 37.39 resp.,
which are very high. This shows company is capable to give higher returns to its investors.
59
2. Dividend Yield Ratio
This ratio shows the ratio of Dividend Paid Per Share & Market Price Per
Share. Higher the ratio higher the investors satisfaction. In the case of UNION BANK OF
INDIA, in year 2019&2018, the ratio was 1.25% & 1.12%. As the ratio this year has increased
this shows company‟s higher profitability.
3. Price Earning Ratio
This ratio shows how many times the Market Price of Share is of the
Earnings per Share. In UNION BANK OF INDIA case in Year 2019&2018 the ratio was 29.21
& 33.47 resp. which shows that this this year there are more earnings as compared to last year.
4. Earnings per Share
It represents the earnings of shareholders from the company in the year. Higher the earnings per
share, higher the confidence of shareholders & higher the company‟s reputation. In the given
case, in year 2019&2018, the earnings per share are 98.45 & 80.24 resp., which shows high
returns to shareholders. Hence, company is highly stable.
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Cash Flow Statement of UNION BANK OF INDIA for the year ended March
31,2020
Current Year Previous year
(2019 - 2020) (2020 - 2021)
Rupees Rupees
A] CASH FLOW FROM OPERTAING ACTIVITIES
Profit Before Tax 39159898200 32190427543
Adjustment For:
Depreciation And Amortization 182023071 174563928
Provision For Contingencies 580000000 500000000

(Gains)/Loss On Translation Of Foreign Currency Monetary Assets
-295703919 2611652309
And Liabilities And Mark To Market Derivatives
Employee Stock Option Expense(Net Of Options Exercised) -43790 -48969
Provisions For Employees Benefits 80382284 110954902
Profit On Sale Of Investments -2248303068 -252300208

Surplus From Deployment In Cash Management Schemes Of Mutual
-1898442216 -1579731748
Funds
Profit In Sale Of Fixed Assets (Net) -4587887 -5874605
Operating Profit Before Working Capital Changes 35555222675 33749643152
Adjustments For:
Current Assets -840719487 -2821781029
Current Liabilities 552821112 6652700403
Cash Generated From Operations 35267324300 37580562526
Advance Tax Paid -11010619403 -9781572839
Net Cash From Operations 24256704897 27798989687
Loans Disbursed(Net) -128772620312 -117632036043
Corporate Deposits 7189413000 2336673400
Net Cash Used In Operating Activities -97326502415 -87496372956
B] CASH FLOW FROM INVESTING ACTIVITIES
Purchase Of Fixed Assets -348309049 -123665189
Sale Of Fixed Assets 10708086 32160579
61
-337600963 -91504610
Investment In Subsidiaries -2863800000 -4155000000
Investment In Cash Management Schemes Of Mutual Funds -1349455987700 870590000000
Other Investments -89046447459 -10706949930
Sale Proceeds Of Investments:
In Cash Management Schemes Of Mutual Funds 1388598000886 848904287525
In Other Companies And Properties 54228732324 2493273220
Net Cash From/(Used)In Investing Activities 1122897088 -34145893795
C] CASH FLOW FROM FINANCING ACTIVITIES
Share Capital- Equity 26563120 4159250
QIP Warrants 3012269150 -
Securities Premium 3242077645 510876154
Securities Issue Expenses -64147933 -
Borrowings 135154524943 13853013535653
Dividend Paid- Equity Shares -85368106520 -7105985821
Tax Paid On Dividend -1255798590 -1066273179
Shelter Assistance Reserve- Utilization -84845183 -52159522
Net Cash From Financing Activities 131493832532 130820752535
Net Increase In Cash And Cash Equivalents 35290227205 9178485784
Cash And Cash Equivalents As At The Beginning Of The Year[As Per

16956082911 7777597127
Note 8(i)]
Cash And Cash Equivalents As At The End Of The Year[As Per Note 52246310116 16956082911
8(i)] ========== ==========
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CHAPTER - VII
RESEARCH FINDINGS &
SUGGESTIONS
63
FINDINGS
 In year 2020 & 2021, The Company has provided dividend of Rs. 36 & Rs. 30 per share
against face value of Rs. 10 per share. This proves that the company has paid dividend at
rate of 360% & 300% in year 2020&2021 resp. this shows company is making huge
profits & investors are also satisfied.
 In year 2020&2021, the free reserves per share are Rs. 186.97 & Rs. 149.10 resp. which
shows company has surplus money to use in case of any contingent & other liabilities.
 In Year 2020&2021, the percentage of Ratio of Reserves to Equity Capital was 98.11%
& 97.80%. This shows that the company‟s ratio has increased & the stability has also
been increased because of higher reserves available with the company.
 In Year 2020&2021 the fixed assets ratio was 0.0022:1 & 0.0023:1 resp while fixed
assets to net worth ratio was 0.0146:1& 0.0155:1. This shows in 2021 both ratios have
been decreased as compared to Year 2020. This is a bad situation for the company.
 In Year 2020&2021 the Ratio of Current Assets to Proprietors Funds was 3.354:1 &
0.143:1resp. As we can see that ratio has increased from Year 2020 to 2021 which shows
company‟s future is bright.
 In Year 2020&2021, Ratio of Current Liabilities to Proprietors‟ Fund it was 0.175:1 &
0.219:1. This shows that ratio has decreased from 2020 to 2021 which is good for the
company.
 In Year 2020&2021 Total Investment to Long Term Liability Ratiowas 1.173:1 &
1.1729:1. In both years the ratio is almost same, we can say that the company is in good
condition because it is able to cover its long term liabilities with its investments.
 in year 2020&2021, Return on Gross Capital Employed was 18.60% & 17.37% resp
while Return on Net Capital Employed was 22.54% & 22.26% resp which show higher
efficiency of the company, the company is highly efficient
 In year 2020&2021, the net worth ratio is 18.60% & 17.37% which shows high
efficiency of the company.
64
SUGGESTIONS AND RECOMMENDATIONS
All one need is the courage to innovate, the skill to understand clientele and the desire to give
them the best .Likewise following are some of the suggestions which would help UNION BANK
OF INDIA in improvising their working styles and performance.
 Most of the customers face problems regarding the rate of interest. UNION BANK OF
INDIA must inform its customers about the change in ROI, It automatically changes but
there is decrease in rate of interest, it doesn‟t change automatically.
 Any change in the policies must be intimated to all the customers .UNION BANK OF
INDIA should provide proper information to its customers.
 There is lot of formalities in the loan disbursement process .Too much documentation is
done. Customer is no aware of all the formalities. Therefore paperwork should be more
friendly and clear.
 Customers should be given proper information about EMI. They are generally not told how
their EMI are calculated they should know EMI is calculated and of what amount.
 After sale service is an issue of concern. Customers facing problems are not attended on
time. Employees are generally cooperative only when the loan is sanctioned and disbursed.
Therefore after sale service should be improved up to the satisfaction level of the customer.
 Website of UNION BANK OF INDIA should give more options and features to customers
so that they get maximum information sitting at home
 Employees of UNION BANK OF INDIA should be more prompt towards customer‟s
grievances and problems
 UNION BANK OF INDIA should provide personalized services to customers.
 Comparative pricing in terms of lower interest rates and front end changes should be
adopted.
 Company should enter into tie ups with reputed builders and development authorities.
 UNION BANK OF INDIA should increase their reach by penetrating into rural and semi
urban areas .They should also capitalize on present customer base by generating referrals
 Aggressive marketing and great publicity through newspapers, hoarding, websites and other
medias should be done.
65
CHAPTER -VIII
SUGGESTIONS &
RECOMMENDATIONS
66
SUGGESTIONS & RECOMMENDATIONS
I have studied the attached Balance Sheet of UNION BANK OF INDIA as at March 31, 2021,
The Profit and Loss Account and the Cash Flow Statement of the Corporation for the year ended
on that date, both annexed thereto & have made an interpretation of the company via ratio
analysis.
I have come to the conclusion that the company is on the high level of success. It is growing day
by day. Its long term as well as short term stability is solid. It is capable of generating more &
more returns in coming future. After analyzing, I have no doubt that if in coming future any
contingent liability raises before company, it is able to face the challenge. Moreover the investors
& creditors (short & Long Term) both are satisfied by the company because it is declaring high
profits & returns & repaying creditors in time.
So, the company’s future is Bright.
67
BIBLIOGRAPHY
68
BIBLIOGRAPHY
Title of the Books Author Publication Year of Publication
Gustavsonhoyt South-western,
Risk management Division Of 2013
Thomson Learning
Capital Market Investment

P.M.Dileep Kumar Sonali Publications 2017
In India
Tata Mcgraw-hill
Indian financial system M.Y. Khan 2019
Education Private Ltd
JOURNALS AND MAGAZINES
Economic Times The Business Area
Times of India Monthly company publishing
Economic standard Business Standard
WEBLIOGRAPHY
 www.wikipedia.org
 www.google.com
 www.Union Bank Of India.com
 www.ansalapi.com
 www.moneycontrol.com
 www.Union Bank Of Indiabank.com
 www.Union Bank Of Indiainsurance.com
 www.Union Bank Of Indiafund.com
 www.Union Bank Of Indiaergo.com
 www.Union Bank Of Indiarealty.com
 www.credila.com
69

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A PROJECT REPORT

BACHELOR OF COMMERCE (GENERAL)

Under the Guidance of

DEPARTMENT OF BUSINESS ADMINISTRATION

Ref No………………………………. Date:……………………………..

This is a bonafide work completed under my guidance and supervision.

Signature of Internal Guide Signature of H.O.D

We, MOHD ABBAS MOHIUDDIN bearing Roll No: 1062-20-401-231 ,

MOHD ABBAS MOHIUDDIN

SYED ALEEM UDDIN

MOHD ABBAS MOHIUDDIN

SYED ALEEM UDDIN

CHAPTER NO DESCRIPTION PAGE NO

CHAPTER - II REVIEW OF LITERATURE 9

CHAPTER - III RESEARCH METHODOLOGY 15

CHAPTER - IV THEORETICAL FRAME WORK 21

CHAPTER – V COMPANY PROFILE 25

CHAPTER - VI DATA ANALYSIS AND 31

CHAPTER - VII RESEARCH FINDINGS & 63

CHAPTER -VIII SUGGESTIONS & RECOMMENDATIONS 66

In case of Credit appraisal there are three main categories:

TERMS AND CONDITIONS OF UNION BANK OF INDIA HOME LOANS

LOAN AMOUNT CONDITIONS

FOR ALL APLICANTS

1. Allotment letter of the co-operative society /association of apartment owners.

1. Verification of Employment Form with only Part I filled in.

RATE OF INTEREST TILL 30 JUNE,2010 (DUAL RATE)

SLAB RATE OF INTEREST

SLAB HOUSING PLOT EQUITY LOAN FIXED

30-50 lakhs 9% 9.5%

Above 50 lakhs 9.25% 9.75%

PROCESSING FEES AND OTHER CHARGES

 RECOMMENDATION OVER (ROVR)

 DOUBLE CHECKING OVER

A Property Address is necessary to:

1. Get the loan disbursed

NEED FOR THE STUDY

Housing finance being a specialized activity, it is desirable to concentrate the activities by

RESEARCH METHODOLOGY USED IN PROJECT

Ho. There is no difference between observed and expected frequencies.

H1: there is difference between observation and expectation

 Websites of UNION BANK OF INDIA and other financial institutions

Proposed statistical Tools for the study

TOOLS USED IN THE ANALYSIS

LIMITATIONS OF THE STUDY

 COMMON PROBLEMS FACED BY UNION BANK OF INDIA HOME LOAN

about 77 million in urban areas and 63 million in rural areas.

an estimation of 36% of the population to live in urban areas by 2016.

exponential growth in housing finance market

different from what is understood by the term in a developing country.

quotes below is offered as a snapshot of what housing finance as a topic covers:

regulatory environment, or political system.”

Union Bank of India – Oldest Logo

Union-Bank-of-India Old Logo

Union Bank of India Logo

Union Bank of India Logo – Post Amalgamation

Did you know :

At the time of Independence in 1947 .Union Bank of India had 4 Branches.

In 2014 Bank opened 96 branches on its foundation day i.e 11.11.2014.

Awards & Accolades:

Awarded By Awards Awarded For

Honey Net - GOLD, as Semi-

SILVER, as Semi-finalist Vulnerability Management