A STUDY ON INSURANCE SERVICE PROVIDE BY UNION BANK

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

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

Long-term Care Insurance

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

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

Union bank of India

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

HISTORY
Union Bank of India (UBI) was registered on 11 November 1919 as a limited company
in Mumbai and was inaugurated by Mahatma Gandhi. At the time of India's Independence in
1947, UNION BANK OF INDIA still only had four branches - three in Mumbai and one
in Saurashtra , all concentrated in key trade centers. After Independence UNION BANK OF
INDIA accelerated its growth and by the time the government nationalized it in 1969, it had
grown to 240 branches in 28 states. Shortly after nationalization, UNION BANK OF INDIA
merged in Belgaum Bank, a private sector bank established in 1930 that had it merged in a bank
in 1964, the Sheri Judea Shankar ling Bank. Then in 1985 UNION BANK OF INDIA merged
in Mira State Bank, which had been established in 1929. In 1999 the Reserve Bank of
India requested that UNION BANK OF INDIA acquire Sikkim Bank in a rescue after extensive
irregularities had been discovered at the non-scheduled bank. Sikkim Bank had eight branches
located in the North-east, which was attractive to UNION BANK OF INDIA.
UNION BANK OF INDIA began its international expansion in 2007 with the opening of
representative offices in Abu Dhabi, United Arab Emirates, and Shanghai, Peoples Republic of
China. The next year, UNION BANK OF INDIA established a branch in Hong Kong, its first
branch outside India. In 2009, UNION BANK OF INDIA opened a representative office in
Sydney, Australia.

VISION & MISSION

VISION

To be the premier financial institution in the emerging markets

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

MISSION

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

Objective of the study

The objective of the study was to know the financial performance (i.e. the profitability and financial
position) of Union Bank of India for the financial year 2009-2010.

Some other objectives were as follows:

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

PRODUCTS AND SERVICES

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

BANKING

Accounts & Deposits cumulative deposit scheme, deposit reinvestment certificate, monthly
income scheme, union flexi-deposit, senior citizens scheme, multi gain savings account, no

frills saving account, union super salary account, union classic current account
Retail Loans union cash, union home, union health, union miles, union education, and

union top up, EMI calculator, union smile.

Cards -Classic /Silver / Gold, Corporate Credit Cards, Add-On Cards
Insurance & Investment mutual fund, union healthcare
Demit demit accounts, online share trade
Payment

NRI Banking

Remittance -Union E-Remit, Details for Remittance

Savings & Deposits - NRO Non Resident Ordinary A/c Scheme, NRE Non Resident

External Rupee, R FC,FCNR(B),Union Unfixed ,Foreign Currency Deposit

Loan &Services house loans, foreign currency loans, loans against deposit, immovable

property, and shares or debenture

Payments -Union Bill Pay

Corporate Banking

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

E-Tax -Customs and Direct taxes, DGFT, Central Excise and Service Tax
Trade Finance trade finance for exporters, trade finance for importers, foreign currency
loans, correspondent banking

Insurance - Non life Insurance Corporate Agency, Insurance-Corporate Agency

Syndication of Loans
MSME Banking
Loans & Policies

Internet Banking

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

UNION BANK INSURANCE SERVICE

Star Union Dai-ichi Life Insurance Plans In India
The company offers its customers a wealth of products to choose from. All these products have
been designed to meet the insurance needs of both individuals and groups of individuals. Some
of the products offered by them are mentioned below.
1.

Star Union Dai-ichi Life Insurance Protection Plans

These are plans that are meant to provide protection to the financial future of your family in
the unfortunate event that something terrible were to happen to you. The plans on offer under
this scheme are:
Premier Protection Plan:This is a pure term plan with low premiums over fixed

tenures, and high Sum Assured benefits.

2.

Star Union Dai-ichi Saving Plans

These are plans that not only give you the advantage of having life insurance cover but also
the advantage of having a plan that provides for long term savings. The plans offered under
this scheme are:
Jeevan Ashray: A simple savings plan that provides interests on the premium

investments, apart from death benefits to the loved ones in case of the insureds
unfortunate demise.
Guaranteed Money Back Plan: A savings plan that provides guaranteed payouts

after every 5 years to the insured. Maturity and death benefits are also applicable.
Jeevan Safar Plus:A traditional life insurance plan that guarantees 125% sum

assured apart from additional bonuses accumulated during first 5 years of policy term, as
well as death and maturity benefits.
3.

Star Union Dai-ichi Wealth Plans

These are plans that make sure that your life is insured against the unlikely event of your
demise and at the same time provide you with an avenue to increase your wealth. The plans
offered are:

Wealth Builder: A single premium investment plan, with the option to choose

among 4 funds. Top-up options, death and maturity benefits are available.
Elite Assure Plan:This is a wealth creation plan wherein customers can choose

between 5-5-5 or 7-7-7 option (5/7 years premium collection, next 5/7 years incubation,
and final 5/7 years repayment respectively). Death, maturity, and guaranteed monthly
income benefits applicable.
Dhan Suraksha Plus: A ULIP that allows you the flexibility to choose between 4

different types of funds as specified at the time of policy purchase. Maturity and death
benefits are applicable.
4.

Star Union Dai-ichi Life Insurance Child Plans

The future of your child could be uncertain if you were not there to take care of it. To address
just this concern the company offers the following insurance plans.
Bright Child: A comprehensive plan that provides death and maturity benefits.

Two choices of funding are available - Wedding Endowment and Career Endowment. In
case of death of insured within policy term, the remaining premium will be waived off and
death benefit will be paid out, without affecting the actual funds meant for the childs
future.
5.

Star Union Dai-ichi Retirement Plans

If you have ever sat and wondered what you will do for an income once you retire then you
need to look into the retirement plans offered by Star Union Dai-ichi Life Insurance.
o

Immediate Annuity Plan: A retirement savings plan that will help you build a
retirement corpus that pays out guaranteed annuity after retirement in flexible frequencies.

6.

Star Union Dai-ichi Credit Life Plans

These are insurance plans that you can take to make sure that if you have taken a loan and
something happens to you while that loan is still being repaid, then your family does not have
to bear the burden of paying it back. The plans offered under this scheme are:
o

Loan Suraksha: This is a decreasing term insurance plan that offers protection to
dependents against any past or future loans taken by the insured. Coverage for joint
borrowers is also available.

Shiksha Suraksha 2: Another decreasing term insurance plan, this plan will
provide protection to the families of educational loan takers against the risk of the
insureds death during the loan repayment tenure.

7.

Star Union Dai-ichi Group Term Plans

These are plans that can be taken by companies to make sure that the future of the families of
their employees is taken care of. The plans offered under this scheme are:
o

Group Term Insurance Scheme: This is a one-year group term insurance plan
(renewable) meant to provide cover to groups of people working/operating under a single
umbrella, such as company employees, welfare associations and so on. Death benefits are
applicable, and profit from investments is shared among the insured.

Group Term Insurance Scheme in lieu of EDLI: This is a group term plan that
offers life insurance cover to employees working at a firm and covered by Employees
Provident Fund. Death benefits and higher life cover compared to EDLI plans are
applicable.

Union Bank of India joins hands with insurers to roll out life and accident
insurance policies
Unlike the accidental death cover offered through the Rupay card linked to Pradhan Mantri Jan
Dhan Yojana(PMJDY) bank accounts, where the cover is an in-built feature, customers can
voluntarily opt for these schemes after paying the applicable premium.
Both products offer sum assured of Rs 2 lakh each to accountholders in the age-group of 18-50
years. The annual premium for the life cover amounts to Rs 330, while the accidental death cover
will cost Rs 12 per year. The premium amount will be directly debited from
customers' savings accounts once they opt for it.
The bank also said that over 2.3 lakh accounts opened since August 2014 under the PMJDY had
now become eligible for using overdraft facilities. Out of these, close to 6,700 accountholders

had availed of the facility, according to Union Bank's chairman and managing director Arun
Tiwari. The usage of the overdraft limit amounted to Rs 27 lakh.

COMPANY PROFILE
Union Bank of India (UBI) is one of India's largest state-owned banks (the government owns 55.43% of
its share capital), is listed on the Forbes 2000. It has assets of USD 13.45 billion and all the bank's
branches have been networked with its 1135 ATMs. Its online Telebanking facility is available to
all it score Banking Customers - individual as well as corporate. It has representative offices in
Abu Dhabi, United Arab Emirates, and Shanghai, Peoples Republic of China, and a branch in
Hong Kong
The Union Bank of India was built up in twentieth century and declared open by the Father of the Nation,
Mahatma Gandhi. The bank with its efficient value-added services, sustained growth, consistent
profitability and development of new technologies bank has ensured complete customer delight,
living up to its image of, GOOD PEOPLETO BA NK WITH. Bank is offering credit adds, home
loan, union demit, Kinas ATM, International debit card, online tax payment facility, airway eticketing kiosk, etc., services to its customers through core banking solution.

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

Profile of Union Bank of India

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

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

Network and distribution

The business is grouped under various Verticals and well defined Business Strategic Units
were formed, which will drive the growth. Bank has a network of more than 2500 service outlets
which includes specialized branches for MSME (SME SARALS), corporate credit, Union Loan
points for Retail Products etc. Bank has representative offices in Abu Dhabi and Shanghai and is
in the process of opening its office in Sydney, Australia. A fully fledged overseas branch was
opened in Hong Kong. To serve the varied banking needs of the NRIs, Bank has placed number
of Marketing Officials at various centers in UAE and Shanghai. Bank has plans to deploy more
number of Marketing Officials at many other places. Bank plans to open 500 new branches in the
next six months for which it has received licenses from RBI. The bank will accelerate its
presence in the global market space at key locations in the next two years as part of the Vision
strategy.
Diversification
Union Bank in partnership with Bank of India and Dai-Ichi of Japan has formed a subsidiary for
distribution of Life insurance products, which has started selling the products. Bank has signed
an agreement with Belgian KBC group for setting up a joint venture AMC in India. Union Bank
has signed Mau with NSIC for training and setting up Incubation cum Training centers to
promote first generation entrepreneurs in MSME segment. Bank has entered into Mou with
NCMSL for financing against warehouse receipts for agri. commodities kept at NCMSL
warehouses. Bank has announced opening 100 specialized Business Banking branches across the

country to focus exclusively on MSME sector with turnaround time of 2 weeks for sanction of
proposals. Bank has launched mobile banking facility U mobile which facilitates limited
transactions and other services through mobile phones.

Growth & Performance

Total business of the Bank at the end of Dec08 stood at Rs.2,22,625 crore registering a growth
of 28.33 % over Dec07.The banks total deposits as on 31st Dec08 reached a level of
Rs.1,29,647 crore from Rs.99227 crore as on Dec07 ,an increase of 30.66%. Gross advances of
the Bank reached a level of Rs.92,978 crore as on 31st Dec08,registering a growth of 25.22%
over Dec07.The Capital Adequacy Ratio of the Bank (BASEL I) is at 12.32% & BASEL II at
13.41 % as on Dec08.The net interest margin of the Bank increased to 2.97% for the nine
months period ended Dec08.Return on average assets improved from 1.31% in Dec07 to 1.92%
in Dec08 indicating more efficient use of Funds. The asset quality recorded a significant
improvement with steep reduction in Net NPAs from 0.35% in Dec07 to 0.14% in Dec08 and
the Gross NPAs from 2.10% to 1.68%.
The brand and the promises
Bank has adopted a simple new logo for universal appeal and to aid top of mind recall. The new
logo symbolizes the qualities and values we stand for- Blue standing for the commitment and the
Red for the passion the Bank brings to the work. Union bank has promised 4 key deliverables to
customers based on the strength built in
1) Value for money
2) Committed turnaround time for delivery of products and services
3) Choice of banking channels for customers and
4) Transparency in product offerings and prices
Bank promises that YOUR DREAMS ARE NOT YOUR ALONE ,there is a bank that is ready
to fulfill the dreams of every one and thus ensuring that we remain GOOD PEOPLE TO BANK
WITH for all times to come.

Last 5 years balance sheet of union bank of India

Balance sheet - Union Bank of India
Particulars

Mar'12

Mar'11

Mar'10

Mar'09

Mar'08

Liabilities

12 Months 12 Months 12 Months 12 Months 12 Months

Share Capital

661.55

635.33

505.12

505.12

505.12

Reserves & Surplus

12,437.68

10,555.35

8,302.69

6,549.26

5,118.19

Net Worth

14,633.06

12,764.52

10,423.78

8,740.35

7,347.70

Secured Loans

17,909.49

13,315.97

9,215.31

3,884.90

4,760.49

Unsecured Loans

222,868.95 202,461.29 170,039.74 138,702.83 103,858.64

TOTAL LIABILITIES

255,411.49 228,541.78 189,678.83 151,328.08 115,966.84

Assets
Gross Block

3,720.39

3,598.41

3,396.98

3,220.65

2,937.45

(-) Acc. Depreciation

1,388.20

1,319.21

1,101.50

893.35

741.62

Net Block

798.36

705.36

679.51

641.32

471.44

Capital Work in Progress.

3.61

13.58

9.96

7.86

4.57

Investments.

62,363.56

58,399.14

54,403.53

42,996.96

33,822.63

Inventories

0.00

0.00

0.00

0.00

0.00

Sundry Debtors

0.00

0.00

0.00

0.00

0.00

Cash And Bank

15,675.14

20,098.44

15,776.69

15,984.93

10,097.84

Loans And Advances

181,836.94 155,194.08 122,676.18 99,658.46

77,952.40

Total Current Assets

197,512.08 175,292.53 138,452.88 115,643.39 88,050.24

Current Liabilities

6,799.95

7,442.67

5,483.01

9,647.43

8,106.43

Provisions

0.00

0.00

0.00

0.00

0.00

Total Current Liabilities

6,799.95

7,442.67

5,483.01

9,647.43

8,106.43

NET CURRENT ASSETS

190,712.14 167,849.86 132,969.86 105,995.96 79,943.80

Misc. Expenses
TOTAL

0.00

(A+B+C+D+E)

ASSETS

0.00

0.00

0.00

0.00

255,411.49 228,541.78 189,678.83 151,328.08 115,966.84

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

Profit & Loss - Union Bank of India

Mar'12

Mar'11

Mar'10

Mar'09

Mar'08

12 Months 12 Months 12 Months 12 Months 12 Months

INCOME:
Sales Turnover

22,383.89

17,684.30

14,667.24

12,901.70

10,123.58

Excise Duty

0.00

0.00

0.00

0.00

0.00

NET SALES

22,383.89

17,684.30

14,667.24

12,901.70

10,123.58

Other Income

0.00

0.00

0.00

0.00

0.00

TOTAL INCOME

23,422.28

18,465.11

15,395.40

13,401.69

10,504.56

Manufacturing Expenses

0.00

0.00

0.00

0.00

0.00

Material Consumed

0.00

0.00

0.00

0.00

0.00

Personal Expenses

2,479.83

2,600.25

1,354.99

1,152.36

845.68

Selling Expenses

67.40

94.08

38.98

132.63

34.49

Administrative Expenses

2,804.57

2,287.70

1,652.65

1,339.02

1,196.21

Expenses Capitalized

0.00

0.00

0.00

0.00

0.00

Provisions Made

975.24

135.25

244.81

217.97

90.94

TOTAL EXPENDITURE

6,327.03

5,117.28

3,291.43

2,841.98

2,167.32

Operating Profit

2,796.71

2,465.86

2,510.35

2,201.88

1,686.24

EBITDA

3,835.10

3,246.66

3,238.51

10,777.68

8,428.18

Depreciation

146.45

155.66

160.14

136.58

101.82

Other Write-offs

0.00

0.00

0.00

0.00

0.00

EBIT

3,688.65

3,091.00

3,078.37

10,641.10

8,326.36

Interest

14,235.39

10,236.42

9,110.27

8,075.81

6,360.95

EBT

2,713.42

2,955.76

2,833.56

2,347.31

1,874.47

Taxes

925.62

873.45

758.00

630.00

487.15

Profit and Loss for the Year

1,787.80

2,082.31

2,075.56

1,717.31

1,387.32

Non Recurring Items

-0.6

-0.3

-0.6

9.24

-0.2

Other Non Cash Adjustments

0.78

0.00

0.00

0.00

0.00

Other Adjustments

-0.7

0.00

0.00

0.00

0.00

REPORTED PAT

1,787.14

2,081.95

2,074.92

1,726.55

1,387.03

EXPENDITURE:

KEY ITEMS

Preference Dividend

10.54

5.16

0.00

0.00

0.00

Equity Dividend

440.44

419.47

277.81

252.56

202.05

Equity Dividend (%)

80.00

79.99

55.00

49.99

40.00

Shares in Issue (Lakh)

5,505.49

5,243.32

5,051.18

5,051.18

5,051.18

EPS - Annualized (Rs)

32.46

39.71

41.08

34.18

27.46

FINANCIAL PERFORMANCE HIGHLIGHT of 20010-2010

Total Business size of Rs. 2, 91,289 crore as on March31, 2010 an increase of 22.9% over

previous year.
Total Deposits of Rs. 1, 70,040 crore, an increase of 22.6%.CASA deposits grew at 29.4%, its

share increased by 166 basis points to 31.73%.

Total Advances of Rs. 1, 21,249 crore, an increase of 23.4%. Retail advances grew at 33.8%
Net Profits of Rs. 2,075 crore, an increase of 20.2% over the previous year.
Core Fee Income of Rs. 896 crore, an increase of 32.74% over the previous year.
Capital Adequacy Ratio (Basel IICAR) stood at12.51%as on March31, 2010 as against

regulatory minimum of 9.0%.Tier I ratio at 7.91%.

Return on average assets1.25%
Return on equity recorded at23.69%.
Book Value per share of Rs. 173.38, an increase of 25.6% over the previous year.
Earnings per share increased to Rs. 41.08, compared to Rs. 34.18 of previous year.
Cost to Income ratio of 40.66%, reduced by 115 basis points over the previous year.
Proposed Dividend up from 50% to55%.
Pan India reach- Network of 2,805 branchesand2327 ATMs as on March 31, 2010.
Global Expansion: Opened representative offices in Sydney (Australia) and Beijing
(China).Representative office in London opened on April 1, 2010.

1. As on March31, 2010, Total Business of the bank stood at Rs. 2.91 lakh crore as against Rs. 2.37
lakh crore as on March31, 2009, an increase of 22.9%.The business growth was broad-based
with contribution from retail and corporate customers, both on assets and liabilities side.
2. The Bank posted a total income and net profit of Rs. 15,277 crore and Rs. 2,075crore
respectively for the financial year ended March31, 2010 as against Rs.13372 crore and Rs. 1727

crore respectively in the previous year. The Earning per share (EPS) ratio showed improvement
to Rs. 1.08 as against Rs. 34.18 in the previous year, while cost to income ratio declined to 40.66% as
against 41.81% in the previous year.

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

The operating expenses stood at Rs. 2508 crore compared to Rs. 2214 crore, relatively a

lower growth of 13.28% compared to 38.98% growth in previous year.

The operating profit of the Bank registered a growth of 18.72% to Rs. 3659 crore from

Rs.3082 crore in the previous year.

Profit after tax net profit increased to Rs. 2075 crore compared to Rs. 1727 crore achieved
ruing last year. Buoyancy in the core business operations supported by healthy growth
in Non-Interest Income helped Bank achieves a 20.15% growth in net profit. Bank s
operating profit and net profit

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

FINDINGS

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

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

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

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

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

Chapter 4

Objective of the Study

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

6. Report Writing; - The outcome of the project including the analysis, results and key findings
were written in the form of the current report.
7. Survey; - The survey was conducted on companies from each sector, operating in the cluster;
which were randomly selected. The survey was done by a market research agency.

Key Areas of Operations

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

Retail Banking International

Banking

Corporate

Treasury

Banking

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

capitalize on opportunities for organic growth. The bank has sought to strengthen the information
technology through development of its core banking services and other initiatives. UNION
BANK OF INDIA has made progress towards networking, computerizing and interconnecting its
branches, ATMs and other delivery channels. As at September 30, 2006, more than 80% of its
business was through computerized network. In addition, the bank has introduced Internet
banking for customers at its computerized branches.
b) International Banking
The bank had a robust growth in International Banking Business. The foreign exchange turnover,
which was Rs361.02bn in 2004-05, reached the level of Rs408.94bn during the year, registering
a growth of 13.27%.The bank is having a correspondent relationship with 345 leading
international banks at all major international centers. The bank has entered into Rupee Drawing
Arrangements (RDA) with 23 international banks and 13 exchange houses in the Middle East.
The bank has also introduced Internet-based On-line Remittance Product for Non-Resident
Indians (NRIs) in U.K. and U.S.A as well as for exchange houses in the Middle East. The bank is
one of the leading players in the bullion market and offers various financial products related to
bullion at 10 centers in the country.
c) Corporate Banking
The Corporate Banking Segment of the bank offers various loan and fee-based products and
services to large corporate, Small and Medium Enterprises (SMEs) and to the agriculture sector.
In order to give a boost to the SME segment and to agriculture lending, the bank set up SME
cells and adopted cluster-centric approach for agriculture lending in areas with rich potential for
such activity. The bank also experimented with new delivery models for credit, including setting
up low cost rural ATMs. The bank also focused on micro-finance business as a convenient
distribution channel for its rural as well as low income customers.

d) Treasury

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

Chapter 5
CUSTOMERS SATISFACTION
Customer satisfaction refers to the extent to which customers are happy with the products and
services provided by a business. Customer satisfaction levels can be measured using survey
techniques and questionnaires
DEFINITIONS:
1) Customer satisfaction is equivalent to making sure that product and service performance
meets customer expectations.
2) Customer satisfaction is the perception of the customer that the outcome of a business
transaction is equal to or greater than his/her expectation.
3) Customer satisfaction occurs when acquisition of products and/or services provides a
minimum negative departure from expectations when compared with other acquisitions Gaining
high levels of customer satisfaction is very important to a business because satisfaction
customers are most likely to be loyal and to make report orders and to use a wide range of
Services offered by a business
There are many factors which lead in high levels of customer satisfaction including.
Products and services which is customer focused and hence provide high levels of value
for money. What is clear about customer satisfaction is that customers are most likely to
appreciate the goods and services that they buy if they are made to feel special. This occurs when
they feel that the products and services that they buy have been specially produced for them or
for people like them.

BENEFITS OF CUSTOMER SATISFACTION

The importance of customer satisfaction and support is increasingly becoming a vital business
issue as organization realize the benefits of Customer Relationship Management for providing
effective customer service. Professionals working within customer-focused business or those
running call centers or help desks, need to keep informed about the latest customer satisfaction
techniques for running a valuable customer service function. From small customer service
departments to large call centers, the importance of developing a valued relationship with
customers using CRM is essential to support customer and long-term business growth.
What Do Customers Want?
Before we begin to create tools to measure the level of satisfaction, it is important to develop a
clear understanding of what exactly the customer wants. We need to know what our customers
expect from the products and services we provide. Customer expectations have two types
1) Expressed
2) Implied
Expressed:Customer Expectations are those requirements that are written down n the contract and agreed
upon by both parties for example, product specifications and delivery requirements .Suppliers
performance against these requirements is most of the items directly measurable.
Implied:Customer Expectations are not written or spoken but are the ones the customer would expect
the supplier to meet nevertheless. For example, a customer would expect the service
representative who calls on him to be knowledgeable and competent to solve a problem on the
spot. There are many reasons why customer expectations are likely to change overtime. Process
improvements, advent of new technology, changes in customers priorities, improved quality
of service provided by competitors are just a few examples. The customer is always right.
Suppliers job is to provide the customer what he/she wants, when he/she wants it. Customer
satisfaction is customers perception that a supplier has met or exceeded their expectations.

WHAT CONSTITUTES SATISFACTION?

We cannot create customer satisfaction just by meeting customers requirements fully because
these have to be met in any case. However failing short is certain to create dissatisfaction Major
Attributes of customer satisfaction in banking industry can be summarized as:

Product quality

Premium Outflow

Return on Investment

Services

Responsiveness and ability to resolve complaints and reject reports.

Overall communication, accessibility and attitude.

WHAT ARE THE TOOLS?

Customer expectations can be identified using various methods such as:

Periodic contract reviews

Market research

Telephonic interviews

Personal visits

Warranty records

Informal discussions

Satisfaction surveys

Depending upon the customer base and available resources, we can choose a method that is most
effective in measuring the customers perceptions. The purpose of the exercise is to identify
priorities for improvements. We must develop a method or combination of methods that helps to
continually improve service.

CUSTOMER SATISFACTION SURVEYS

Formal survey has emerged as by far the best method of periodically the customer satisfaction.
The surveys are not marketing tools but an information gaining tool. Enough homework needs to
be before embarking on the actual survey.
This includes:

Defining Objectives of the Survey

Design Survey approach

Develop questionnaires and forms

Administer Survey (Email, Telephone or Post)

Method of compiling data and analyzing the findings

Format of the report to present the findings

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

The basic purpose is to find out what we are doing right or wrong. Where is the scope
for improvement, where do we stand vis--vis other suppliers. How we can serve the customer
better?
A customer satisfaction measurement survey should at least identify the following objectives:

Importance to customers (Customers priorities)

Customers perception of suppliers performance

Your performance relative to customers priorities.

Priorities for improvement

Survey forms should be easy to fill out with minimum amount of time and efforts on
customers part. They should be designed to actively encourage the customer to complete the
questions. Yet they must provide accurate data should also be sufficiently reliable for
management decision making. This can be achieved by incorporating objective type questions
where customer has to rate on scale of say 1 to 10. For repeated surveys, you could provide the
rating that was previously accorded by the customer. This works like a reference point for the
customer. Space should always be provided for the customers own opinions this enables them to

state any additional requirements or report any shortcomings that are not covered by the
objective questions.
Normally, we deal various personnel at various levels in the customers organization the buyer,
user, receiving inspector, finance and purchase person etc. surveying a number of respondents for
each customer gives a complete perspective of customer satisfaction. It may be necessary to
device a different questionnaire for each of them.
Respondents must be provided a way to express the importance they attach to various
survey parameters. Respondents should be asked to give a weighting factor, again on a rating
scale of say, 1 to 10, for each requirement. This gives a better indication of relative importance of
each parameter towards overall customer satisfaction and makes it easier for suppliers to
prioritize their action plans by comparing the performance rating (scores) with importance rating
(weighing). `
CONSUMER RESEARCH IN DIFFERENT DISCIPLINES
A considerable body of literature exists on consumption, consumer behavior and
consumer decision making process. Most of the consumer research focused on adopter
categories, habits, attitudes and intentions rather than on actually measuring the satisfaction level
with the service.

CONSUMER SATISFACTION PROCESS

The paramount goal of marketing is to understand the customer and to influence buying
behavior. The process can be depicted as follows:

Need recognition- realization of the difference between the desired and the current situation
that serves as a trigger for entire process.

Search for information.

Pre purchase alternative evaluation.

Consumption (utilization of the procured option)

Post purchase alternative re-evaluation.

Divestment (disposal of the unconsumed product and its remnants)

WAYS FOR MAINTAINING RELATIONS WITH THE CUSTOMERS ADOPTED BY

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

constant

consultations

with

our clientele

through

various

Seminars,

Customer Meets, etc. to evaluate improve and widen the range of service to customer. However,
all our customers are requested to keep us informed of their experiences about the various
services rendered by the Bank and feel free to comment on this Code. We intend to bring it out in
many Regional Languages in subsequent years.

COMMON PRACTICES FOLLOWED BY UNION BANK OF INDIA BRANCHES

Display business hours.

Render courteous services.

Attend to all customers present in the banking hall at the close of business hours. Provide
separate 'Enquiry' or 'May I help you' counter at large branches. Offer nomination facility
to all deposit accounts (i.e. account opened in individual capacity) and all safe deposit
locker hirers (i.e. individual hirers).Display interest rates for various deposit schemes from
time to time.

Notify change in interest rates on advances.

Provide details of various deposit schemes/services of the Bank.

Issue Demand Drafts, Pay Orders, etc

.Display Time-Norms for various banking transactions.

Pay interest for delayed credit of out station cheques, as advised by Reserve Bank of India
(RBI) from time to time.

Accord immediate credit in respect of outstation and local cheques up to a specified limit

Subject to certain conditions, as advised by RBI from time to time.

Provide complaint/suggestion box in the branch premises.

CHAPTER 6
SURVEY REPORT
DATA ANALYSIS & INTERPRETATION
To know customer view about union bank of India, I have done survey of 20 peoples and ask
them certain set of question:
1. When survey respondent were asked, do you have an account in this bank?

BANK ACCOUNT

100
90
80
70
60
50
40
30
5

20
10
0

95
YES

NO

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

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

TYPES OF BANK ACCOUNT

fixed A/c; 26%

recurring A/c; 5%

saving A/c; 58%

current A/c; 11%

INTERPRETATION
This pie diagram show which all bank account people are having.
55% people are having saving account.
10% people are having current account.
5% people are having recurring account.
25% people are having fixed account.

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

45
40
35
30
25

45

20

35

15
10

15

5
0

security

interest

good relation

INTERPRETATION:
This bar diagram show how people are known about bank account
45% people open an account for security
35% people open an account for interest
15% people open an account for good relation

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

PUBLIC AWARENESS
45
40
35
30
25
20
15
10
5
0

10
NEWS PAPER

30
ADVERTISEMENT

45
AGENT

10
FRIEND

NTERPRETATION:
This bar diagram shows how many people know about bank account.
10% people are aware about news paper.
30% peoples are aware about advertisement.
45% peoples are aware about agent.
10% peoples are aware about friend.

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

FEATURES
60
50
40
30
20
10
0

20
E-BANKING

55
NEW SCHEMES

25
ATM

INTERPRETATION:
This bar diagram shows how many people like the features of this bank.
20% peoples like e-banking.
55% peoples like new schemes.
25% peoples like ATM.

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

WHICH IS BETTER

80
70
60
80

50
40
30

20

20
10
0

YES

NO

INTERPRETATION:
This bar diagram shows how many people says which is better.
80% people say that private sector is better.
20% people say that public sector is better.

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

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

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

SAFE FOR MANY

15%
YES
NO

85%

INTERPRETATION
This bar diagram shows how many people say that for safe of money
85% people are says that to safe the money.
15% people are says that not for safe of money.

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

SATISFACTION
50
45
40
35
30
25
20
15
10
5
0

50
30
20

VERY SATISFIED

NORMAL SATISFIED

INTERPRETATION;
This bar diagram shows the people are preferring sector:
30 % of people are very satisfied
50 % of people are normal satisfied
20 % of people are dissatisfied

DISSATISFIED

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

35
30
25
20
15
10
5
0

20
SBI

25
AXIS

20
ICICI

35
OTHERS

INTERPRETATION
This bar diagram shows the how many people are go for other bank.
20 % of people go for state bank of India (SBI)
25 % of people go for AXIS bank
20 % of people go for ICICI bank
35% of people go for other bank

FINDINGS

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

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

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

Usually the managers would only fulfill their required target and then would forget about

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

CONCLUSION:As discussed in the project above, Credit Appraisal appears to be the back bone of the banking
institution. It is equally important and dangerous, as there is always the chance of default
or some other risk. After dealing with almost every aspect of loans and advances one can
summarize that with a little bit of strict measures and a keen eye and understanding of a
companys balance sheet one can very well save the institute the risk other than the default risk.
Even the default risk can be to a certain limit mitigated, if we before sanctioning the amount
check the profile of the customer. Industry Report, banks own experiences and the ability of the
borrower to run his enterprise professionally are certain things one can check. A very crucial
aspect of credit appraisal is the
Credit rating
Union bank has introduced their own Internal Rating system of all borrowers enjoying/seeking
credit limits above Rs. 2 laces. The rating grades range from CR1 to CR8. Credit ratings up to
CR5 are investment grade. CR6 toCR8 are non-investment grade as per the loan policy of the
bank. Migration in credit rating
Especially downward migration should be discussed in detail and road map to improve the credit
rating has to be drawn up/implemented. A lot of times for some reasons, credit report is not
submitted and the submission of the proposal and its sanctioning is done without it, while
keeping in mind other necessary factors. It is to be seen and made mandatory that the credit
report must accompany the proposal as it gives a very clean and clear picture of the borrowers
credit worthiness. In order to potential NPAs it is significant to have a fair understanding of the
borrowers financial health. Thus, at least last three years balance sheet and Profit and loss
accounts should be obtained, in addition to projections of next 2 years. Now, most of the time
customers to prove their credit worthiness make the estimated balance sheets unrealistic,
such areas should be stressed and it should be checked whether the borrower has the ability to go
as per the projected Balance Sheet.

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