Chapter 1.

Introduction

1. OVERVIEW OF THE INDUSTRY

The Indian banking can be broadly categorized into nationalized (government owned), Private banks and specialized banking institutions. The Reserve Bank of India acts as a centralized body monitoring any discrepancies and shortcoming in the system. Since the nationalization of banks in 1969, the public sector banks or the nationalized banks have acquired a place of prominence and has since then seen tremendous progress. The unleashing of products and services through the net has galvanized players at all levels of the banking institution market grid to look anew at their existing portfolio offerings. Conservative banking practices allowed Indian banks to be insulated partially from the Asian Currency crisis. Indian banks are now quoting at higher valuation when compared to banks in other Asian countries (viz. Hong Kong, Singapore, Philippines etc.) that have major problems linked to huge Non-performing Assets (NPAs) and payment defaults. Co-operative banks are nimble footed in approach and armed with efficient brand networks focus primarily on the high revenue niche retail segments. The Indian banking has finally worked up to the competitive dynamics of the New In dian market and is addressing the relevant issues to take on the multifarious challenges of globalization. Banks that employ IT solutions are perceived to be futuristic and proactive players capable of meeting the multifarious requirements of the large Customer Base. Private Banks have been fast on the uptake and are reorienting their strategies using the internet as the medium. The internet has emerged as the new and challenging frontier of marketing with the convenient physical world tenets being just as applicable like in any other marketing medium. The Indian banking has come from a long way from being a sleepy business institution to a highly proactive and dynamic entity. This transformation has been largely brought about by the large dose of liberalization and economic reforms that allowed banks to explore new business

opportunities rather than generating revenues from conventional streams (i.e. borrowing and lending). The banking in India is highly fragmented with 30 banking units contributing to almost 50% of deposits and 60% advances. Indian nationalized banks (banks owned by the government) continue to be the major lenders in the economy due to their sheer size and penetrative networks which assures them high deposit mobilization. The Indian banking can be broadly categorized into nationalized, private banks and specialized banking institutions. The Reserve Bank of India acts as a centralized body monitoring any discrepancies and shortcoming in the system. The nationalized banks (i.e. government owned banks) continue to dominate the Indian banking areas. Industry estimates indicate that out of 274 commercial banks operating in India, 223 banks are in the public sector and 51 are in private sector. The private sector bank grid also includes 24 foreign banks that have started their operations here. Under the ambit of the nationalized banks come the specialized banking institutions. These co-operatives, rural banks focus on areas of agriculture, rural development etc.

1.1 ECONOMIC FUNCTIONS:

The economic functions of banks include: Issue of money, in the form of banknotes and current accounts subject to cheque or payment at the customer's order. netting and settlement of payments -- banks act both as collection agent and paying agents for the benefit of the customers, and participate in inter-bank clearing and settlement systems to collect. This enables banks to economize on reserves held for settlement of payments, since it is noted that inward and outward payments offset each other. Credit intermediation banks borrow and lend back to bank.

 Credit quality improvement -- banks lend money to ordinary commercial and personal borrowers (ordinary credit quality), but are high quality borrowers.The improvement comes from diversification of banks assets and banks own capital which acts as buffer. However, since banknotes and deposits are generally unsecured in nature, if the bank gets into difficulty and pledges assets as security to try to get the funding it needs to continue to operate, this puts the note holders and depositors in an economically subordinated position. Maturity transformation -- banks on the one hand borrow more on demand debt and short term debt, but on the other provide more long term loans. Bank can do this because they can aggregate issues like accepting deposits and issuing banknotes and redemptions like withdrawals and redemptions of banknotes, maintain reserves of cash, invest in marketable securities that can be readily converted to cash if needed, and raise replacement funding as needed from various sources such as wholesale cash markets and securities markets) because they have a high and more well known credit quality than most other borrowers.

1.2 LAW OF BANKING:

Banking law is based on a contractual analysis of the relationship between the bank and the customer. The law implies rights and obligations into this relationship as follows: The bank account balance is the financial position between the bank and the customer, when the account is in credit, the bank owes the balance to the customer, when the account is overdrawn, and the customer owes the balance to the bank. The bank pays the customer's cheques up to the amount standing to the credit of their customer's account and any agreed overdraft limit.

 The bank may not pay from the customer's account without permission from the customer, such as a cheque drawn by the customer. The bank promptly collects the cheques deposited to the customer's account as the customer's agent, and to credit the proceeds to the customer's account. The bank has a got right to combine the customer's accounts, since each account is just an aspect of the same credit relationship. The bank has a lien on the cheques deposited to the customer's account, to the extent that the customer is indebted to the bank. The bank must not disclose the details of the transactions going through the customer's account unless the customer consents, there is a public duty to disclose, the bank's interests require it, or under compulsion of law. The bank should not close a customer's account without giving reasonable notice to the customer, because cheques are outstanding in the ordinary course of business for several days. These contractual terms may be modified/altered by express agreement between the customer and the bank. The rules and regulations in force in the jurisdiction may also modify the above terms and/or create new rights, obligations or limitations relevant to the bank-customer relationship.

1.3 LIST OF SOME BANKS IN INDIA

Allahabad bank Bank of Baroda Barclays Bank Centurion Bank Citibank

Corporation Bank ICICI Bank Indusland Bank State Bank of India IDBI Bank Punjab National Bank HDFC Bank Canara Bank Union Bank The growth in the Indian Banking Industry has been more qualitative than quantitative and it is expected to remain the same in the coming years. Based on the projections made in the "India Vision 2020" prepared by the Planning Commission and the Draft 12th Plan, the report forecasts that the pace of expansion in the balance-sheets of banks is likely to decelerate. The total assets of all scheduled commercial banks by endMarch 2012 is estimated at Rs 60, 90, 000 crores. This will comprise about 65 per cent of GDP at current market prices as compared to 67 per cent in 2002-03. Bank assets are expected to grow at an annual composite rate of 13.4 per cent during the rest of the decade as against the growth rate of 16.7 per cent that existed between 1994-95 and 2002-03. It is expected that there will be large additions to the capital base and reserves on the liability side. The Indian Banking Industry can be categorized into non-scheduled banks and scheduled banks. Scheduled banks constitute of commercial banks and co-operative banks. There are about 67,000 branches of Scheduled banks spread across India. As far as the present scenario is concerned the Banking Industry in India is going through a transitional phase.

The Public Sector Banks (PSBs), which are the base of the Banking sector in India account for more than 78 per cent of the total banking industry assets. Unfortunately they are burdened with excessive Non Performing assets (NPAs), massive manpower and lack of modern technology. On the other hand the Private Sector Banks are making tremendous progress. They are leaders in Internet banking, mobile banking, phone banking, ATMs. As far as foreign banks are concerned they are likely to succeed in the Indian banking industry. In the Indian Banking Industry some of the Private Sector Banks operating are IDBI, ING Vyasa Bank, SBI Commercial and International Bank Ltd, Bank of Rajasthan Ltd. and banks from the Public Sector include Punjab National bank, Vijaya Bank, UCO Bank, Oriental Bank, Allahabad Bank among others. ANZ Grindlays Bank, ABN-AMRO Bank, American Express Bank Ltd, Citibank are some of the foreign banks operating in the Indian Banking Industry. The India Industry scene has made an impressive move on during the last few decades. The number of industries in India have increased manifold in the past few years. Though the main occupation has been agriculture for the bulk of the Indian population, it was realized that India would become a prosperous and a modern state with a good industrial base. Therefore different programs were formulated and initiated to build up an adequate infrastructure for rapid industrialization and improve the industry scene in India. .

1.4 TYPES OF BANKING:

Personal Banking: including personal finance, banking on an international arena, banking on a priority basis. Transaction Banking: includes management of cash, facilities related to credit availability and services related to trade. Relationship services with the investors.

Depository Services including dematerialized account openings and associated updates. Internet Banking services: comprising of account specifications, transaction details, performance of monetary transactions, bill payment through electronic means, etc Latest All the News and updates related to related the bank to the the market head of (world/national) About Us

information

under

Specifications and online availability of loans, debit and credit cards, insurance and other investment services (including capital market, derivative market, forex market, etc). Small business banking: It can show us a way to improve revenue generation technique from small business segment. It is true that there is a complexity of any business products, because of which sometimes it becomes a bit tough to sell the products to both the customers and branches. In this context, small business banking can make a difference by simplifying the business strategies. The target of small business banking is to add value and make business banking an inherent part of the establishment. One of the prime targets of small business banking is to earn the revenue. This revenue generation technique can be applied through the following ways: The most fundamental way to generate revenue is to increase the value of the small business product to the client. The branches should also be in a active position for the development of the small business segment. The cognitive process to attain the interest of the customer. The other very effective strategy is to inculcate the confidence in the sales and branch staff for selling the product segment. Risk practice is also a useful technique to grow the business.

 Effective utilization of call center management can be a sound strategy to enhance the sales and services of the business. One of the good strategies is to set incentive programs to persuade someone to buy. Last but not least, the simplification of the product should surely help the customers and sales people to enhance the small business. Small business banking can operate in a structured way if an advisory board is formed to regulate the business strategy effectively. Regular meeting among the executive members of the board can help to evolve new business ideas and strategies, which can be a powerful management tool to promote the business all over. In recent times, many reputed banks are targeting the small business market and they are trying to innovate new ideas to serve their needs. Establishment of community partnership can also make credit more accessible to small businesses. Financial establishments are also trying to make small business banking a coherent part of their business strategy. For that they are continuing to pursue small business lending without external partners. To make small business banking a successful one, the banks are taking part with government agencies, like community organization, national intermediaries and other banks to make a common goal for the enhancement of small business.

Chapter2. RESEARCH METHODOLOGY

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2.1 SIGNIFICANCE
The purpose of the research is to discover answers to the questions through the application of scientific procedures. The main aim of research is to find out the truth which is hidden and which has not been discovered as yet. Though each research study has its own specific purpose, we may think of research objectives as falling into a number of following broad categories:To gain familiarity with the phenomenon or to achieve new insights into it (studies with these objects in a view are termed as exploratory or formulative research studies). To portray accurately the characteristics of particular individual, situation or a group (studies with this object in view are termed as descriptive research). Working with the organization I learned how to understand client's need in the defined sector like banking, investments plans etc. There are different demands which are raised by different clients for the products and to meet these demands one have to understand the client's need, their organization structure, their existing operations and activities, scale of operations and objectives.

2.2 MANAGERIAL USEFULNESS OF THE STUDY

The projects undertaken will be adding value to the company in the following manner i. ii. iii. The advisors created will be doing sales of their services which in turn will bring goodwill for the company The advisors created will further make some more advisors among there social groups thereby expanding the network of advisors. The expanding the product knowledge to there immediate social group there by creating the awareness for the company product and its name.

Since the company has huge product portfolio there are high chances of making sales since the products serving different needs of the customers are already available.

2.3 OBJECTIVES
To study the services provided by Union Bank of India. To study the Customer Satisfaction on the services provided by UBI. To compare services provided by UBI with other banks. To study the future prospects of growth in UBI.

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2.4 SCOPE OF THE STUDY

Analyzing the potential of ATM & Bank lobby as a captive market for promotion of Non Branch Delivery products. Accepting Feedback from the customers regarding different products and services & also giving them information of the newly launched products & services.

2.5 METHODOLOGY
Research Methodology is a way to systematically solve the research problem. It may be understood as a science of how research is done scientifically. Under it we study the various steps that are generally adopted by a researcher in studying his research problem along with the logic behind them. It is necessary for the researcher to know not only the research methods/ techniques but also the methodology. In common parlance it refers to search of knowledge. According to the advanced learner Dictionary of Current English lays down the meaning of research as a careful investigation or inquiry especially through search for new facts in any branch of knowledge. Reman and Mory defines Research as a Systematized effort to gain new knowledge. Research is, thus an original contribution to the existing stock of knowledge making for its advancement. It is the pursuit of truth with the help of study. As such the term Research refers to the systematic method consisting of enunciating the problem, formulating a hypothesis, collecting the facts or data, analyzing the facts and reaching certain conclusion either in the form of solution towards the concerned problem or in certain generalization for some theoretical formulation. METHODS OF DATA COLLECTION The Data is collected through two ways: a) Primary Data It is obtained by design to fulfill the data are original in character and are also generated in a large number of surveys conducted mostly by government and also by institution and research bodies. The method of collecting primary data are Observation method, Interview method, and through Questionnaires etc. My mode of collecting primary data is through questionnaires. A Questionnaire is a very effective method of collecting primary data because with the help of questionnaires we can know about the views of customers. b) Secondary Data These are not originally collected rather obtained from Published and Unpublished Sources. The methods of collecting Secondary Data are Magazines, Newspaper, Journal and Internet etc.

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2.6 SAMPLE DESIGN

When secondary data are not available for the problem under study, a decision may be taken to collect primary data by using any of the methods. The required information can be either census method or sample method. Census or Complete Enumeration Survey Method, data are collected for each and every unit (person, household, shop etc.) as the case may be of population or universe which is the complete set of items which are of interest in any particular situation. This method is not popularly used in practice. The effort, money and time required for carrying out complete enumeration will generally very large. Sampling is simply the process of learning about the population on the basis of a sample drawn from it. Thus, in the sampling technique instead of every unit of the universe only a part of the universe is studied and the conclusions are drawn on that basis for the entire universe. A sample is a subset of population units. The process of sampling involves three elements: 1. Selecting the sample, 2. Collecting the information and 3. Making the inference about the population. Various methods of Sampling: A. Non- Probability Sampling Methods: 1) Judgment Sampling In this method of sampling the choice of sample items depends exclusively on the judgment of the investigator. 2) Quota Sampling It is the most common method of sampling. In this quotas are set up according to some specified characteristics such as so many in each of several income groups, so any in each ago, so many with certain political and so on. 3) Convenience Sampling It is obtained by selecting convenient population units. The method of convenience sampling is also known as Chunk method. Convenience samples are prone to bias by their very nature selecting population elements, which are the convenient to choose, almost always make them special or different from the best of the elements in the population in some way. B. Probability Sampling Methods: 1. Simple or Unrestricted Method It refers to that sampling technique in which each and every unit of population has an equal opportunity of being selected in the sample. For example: Lottery Method.

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C. Restricted Sampling Methods 1. Stratified Sampling: It is the one of the random method, which by using the available information concerning the population, attempts to design a more efficient sample than obtained by the simple random procedure. Systematic Sampling: selecting one unit at random and then selecting additional units at evenly spaced intervals until the sample has been formed form it. Multi-Stage or Cluster Sampling: In this method the random selection is made of primary, intermediate and final units from a given population. The sources of collection of secondary data are: Questionnaire Books Websites Magazine Brochure

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3.

2.7 QUESTIONNAIRE DESIGN / FORMULATION:

Questionnaires: - A questionnaire consists of a set of questions presented to respondent for their answers. It can be Closed Ended of Open Ended Open Ended: - Allows respondents to answer in their own words & are difficult to Interpret and Tabulate. Close Ended: - Pre-specify all the possible answers & are easy to Interpret and Tabulate.

Types of question included:

i) Dichotomous Questions :Which has only two answers Yes or No. ii) Multiple choice questions :Where respondent is offered more than two choices. Importance scale:A scale that rates the importance of some attribute. Rating scale:A scale that rates some attribute from highly satisfied to highly unsatisfied and very inefficient to very efficient

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2.8 SAMPLE SIZE

Size of sample means the number of sampling units selected from the population for the investigation. Sample size should neither be too small nor too large. It should be optimum. Optimum Size, according to Pattern, is one that fulfills the requirements of efficiency, reliability, representatives and flexibility. Method of Sampling used in this Project In this project I have used the method of Convenience Sampling. It is obtained by selecting convenient population units. The method of convenience sampling is also known as Chunk Method. Convenience Samples are prone to bias by their very nature selecting population elements, which are the convenient to choose, almost always make them special or different from the best of the elements in the population in some way. I have to submit the project report on Banking Sector and on the basis of convenience I have chosen Union Bank of India because it is near to our house. Sample Size in This Project In this project I have taken the Sample Size as 25 Respondents or customers of the Bank through which I got the primary data of my project.

2.9 LIMITATIONS OF THE RESEARCH

1. In case of Primary data, sometimes it was difficult to contact or meet the clients, because of their work schedules and personal reasons. 2. The opinions of the clients could have been biased against some personal preferences and which would have led to unjustified responses. 3. Personally contacting the clients involved time and cost. 4. It was difficult to find information that exactly fitted the needs of the project at hand in case of secondary data or information is concerned. 5. Secondary data when collected was invaluable but due to passage of time and with many dynamic changes taking place in the markets, the information losses its value in the current scenario. 6. The study is based on limited sample size, which is only 25. 7. Period of study is too short to draw generalizations. 8. The study is organization specific. 9. Large amount of Identity proof pose as a hindrance. 10. Data is reliable to a certain period only after that it becomes non reliable.

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Chapter 3. Profile of the Organization

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3. Profile of the Organisation

The dawn of twentieth century witnesses the birth of a banking enterprise par excellenceUNION BANK OF INDIA- that was flagged off by none other than the Father of the Nation, Mahatma Gandhi. Since that the golden moment, Union Bank of India has this far unflinchingly traveled the arduous road to successful banking........ A journey that spans 88 years. Union Bank of India, reiterate the objective of our inception to the profound thoughts of the great Mahatma... "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 among us, it does not follow that we are not capable of efficiently managing crores and tens of crores of rupees." Union Bank of India is firmly committed to consolidating and maintaining its identity as a leading, innovative commercial Bank, with a proactive approach to the changing needs of the society. This has resulted in a wide gamut of products and services, made available to its valuable clientele in catering to the smallest of their needs. Today, with its efficient, value-added services, sustained growth, consistent profitability and development of new technologies, Union Bank has ensured complete customer delight, living up to its image of, GOOD PEOPLE TO BANK WITH. Anticipative banking- the ability to gauge the customer's needs well ahead of real-time - forms the vital ingredient in value-based services to effectively reduce the gap between expectations and deliverables. The key to the success of any organization lie with its people. No wonder, Union Bank's unique family of about 26,000 qualified / skilled employees is and ever will be dedicated and delighted to serve the discerning customer with professionalism and wholeheartedness.

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Union Bank is a Public Sector Unit with 55.43% Share Capital held by the Government of India. The Bank came out with its Initial Public Offer (IPO) in August 20, 2002 and Follow on Public Offer in February 2006. Presently 44.57 % of Share Capital is presently held by Institutions, Individuals and Others. Over the years, the Bank has earned the reputation of being a techno-savvy and is a front runner among public sector banks in modern-day banking trends. It is one of the pioneer public sector banks, which launched Core Banking Solution in 2002. Under this solution umbrella, All Branches of the Bank have been 1135 networked ATMs, with online telebanking facility made available to all its Core Banking Customers - individual as well as corporate. In addition to this, the versatile Internet Banking provides extensive information pertaining to accounts and facets of banking. Regular banking services apart, the customer can also avail of a variety of other valueadded services like Cash Management Service, Insurance, Mutual Funds and Demat. The Bank will ever strive in its endeavor to provide services to its customer and enhance its businesses thereby fulfilling its vision of becoming THE BANK OF FIRST CHOICE IN OUR CHOSEN AREA BY BUILDING BENEFICIAL AND LASTING RELATIONSHIP WITH CUSTOMERS THROUGH A PROCESS OF CONTINUOUS IMPROVEMENT.

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3.1 Business Description

Union bank of India (BSE: 532174), a public sector bank, is the most modern among public sector banks (the first large Public Sector Bank in the country to have achieved 100% core banking solution (CBS) roll out). It is also the sixth largest among public bank with an asset base of Rs. 1,610 billion as on 31st March 2009 and is based in western India. Union Bank of India (UBI) is one of India's largest state-run banks and is also listed on the Forbes 2000. It has assets of USD 13.45 billion. Because of its acronym UBI, the public sometimes confuses it with United Bank of India. The Union Bank of India has 2261 branches out which 1031 branches are under CBS. Presently 939 ATMs spread out across India both Onsite and Offsite. All the ATMs are inter-connected through the Banks ATM Switch, thus facilitating on-line operations in case of CBS customers.

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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. UBI 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. From 2006 to 2009, the bank managed to open an additional 500 branches, far outpacing the 72 branches opened from 1996 to 2006. In FY 09, the Bank began offering anywhere banking services to all of its branches, also known as core banking solutions (CBS). With 100% CBS branches, the Bank managed to increase its total business (sum of deposits and advances) by 31.84%, to reach Rs. 2,390 billion compared to Rs. 1,797 billion in FY08. The bank had net interest margin of 3.24% which is 39 bps higher than its peers average, aided by lowest cost of funds in the industry at 6.35%. With the continuous competition from private and other PSU Banks, Union Bank of India has been focusing on increasing other income streams like Insurance, Mutual Fund and wealth management services. The Company's principal activity is to provide commercial banking services. It provides merchant banking, direct finance, infrastructure finance, venture capital fund, advisory, trusteeship, forex, treasury and other related financial services. The Company operates through 2361 branches including 136 extension counters in India. During FY09, the Bank enhanced its profitability by focusing on high yielding loan portfolio retail, MSME (Medium, Small and Micro Enterprises) and agriculture credit, and reduced its

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exposure on low yielding advances. As a result, its return on assets stood at 1.27% which was well above its peers average of 1.10% as on 31st March 2009. Similarly, return on equity stood at 24.79% against its peers average of 22.04%.

3.2 CORPORATE MISSION

A logical extension of the Vision Statement is the Mission of the Bank, which is to gain

market recognition in the chosen areas.

To build a sizeable market shares in each of the chosen areas of business through

effective strategies in terms of pricing, product packaging and promoting the product in the market.

To facilitate a process of restructuring of branches to support a greater efficiency in the

retail banking field.

To sustain the mission objective through harnessing technology driven banking and

delivery channels.

To promote confidence and commitment among the staff members, to address the

expectations of the customers efficiently and handle technology banking with ease.

3.3 Union Bank of India Training System

Seldom has there been a time in which it has been necessary for Organizations to attune Attitudes, upgrade Skills and kindle sparks of Knowledge in their human force to the extent and with the rapidity required today. Those who dominate the market in times to come will be those who are prepared to seize opportunities as they come.

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At Union Bank, the training facilities offer an admirable approach to these opportunities. Ask and it shall be Given. TO BE THE BEST COME TO THE BEST Union bank has one of the best training systems in India. The training experience here goes back to over four decades. Presently the training structure consists of the Staff College at Bangalore, and seven centers in various parts of the country. The training is designed, delivered and assessed, based on systems suggested and put in place by our overseas consultants M/s. Vinstar Limited (AGL Group) of New Zealand. These systems have been tested and refined by practical application. The training system of Union Bank has been awarded the prestigious Golden Peacock National Training Award instituted by the Institute of Directors, New Delhi for the best training system in the Country. In our pursuit of achieving higher standards we have further upgraded our systems and sized up to 'international norms'. After a rigorous audit, in February 2001, the College is awarded ISO 9001 certification (for Design and Development of Customized Training Programs) by Det Norske Veritas, of the Netherlands. We are the only Bank to obtain ISO certification for the training system. THE COLLEGE - AMBIENCE FOR LEARNING Union Bank Staff College stretching over 36 acres of sylvan setting, on the out skirts of Bangalore city, has been the cynosure of appreciation as an apt option, for the best ambience for learning. Here physical, mental, spiritual and social up gradation of self for an individual and building of teams of performers of outstanding Organizations take place in the most natural way. We have got excellent, air-conditioned learning centers [we call them "channels" of learning],

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computer-backed presentation packages, interactive learning processes, salubrious living conditions in hostel rooms with provisions for intellectual and physical games, group exercises and teambuilding fun in verdurous mango-groves, where mimicking monkeys and shy sheep are, perhaps, the only onlookers! Yoga, somnolent reverie after a relaxed splash in the swimming pool, or a stroll down the jogging tracks and exercise stations or a stretch of paddling or rowing on the boat around the natural pond are true tonics for invigoration. If the weather does not encourage outdoor relaxation (unusual in the 'Garden City' of Bangalore!) a workout in the luxury of the Gymnasium, a game of snooker, a solitary tryst with computer games or online learning facilities - are other options.

3.4 PRODUCTS AND SERVICES

1. Union Bank of India Credit Cards

Union Bank of India has three International Credit Cards designed to meet your unique lifestyle and shopping needs. Bank has three types of credit cards-Union card- Classic, Silver and Gold. The bank offers various features and benefits on its cards including Cash Advance round the clock at all ATMs, Photo card option, Accident Insurance, Reward Program, Flexi payment, etc. 2. Union Bank of India International Debit Card ATM SERVICES A T M (Automated Teller Machine) facilitates the customer to do Banking transactions such as Cash withdrawal, balance enquiry, obtaining mini-statement, transfer of funds between his/her own accounts etc. Union Bank of India tied up with Visa for issuing International Debit Cards to the customers of all its branches. The Debit Card provides ANY TIME / ANY WHERE Banking to the customers. Presently, Bank has 1276 ATMs (As on 30.06.2008) which are online, conveniently located and spread across the country. The Debit Card can also be used for

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making purchases. The daily withdrawal limit through ATMs is Rs.25000/- and the limit for making purchases is Rs.25, 000/- (combined limit Rs.50, 000/-). 3. Union Bank of India Online Tax-Payment

Online Tax payment is the facility which allows the bank's customer to pay their Taxes online.Union Bank of India has extended the online direct tax payment facility to its Internet Banking users. Union Bank of India has extended the online tax payment facility to its Internet Banking users.Customer can generate duplicate challans from his Internet Banking module. 4. Union Bank of India Railway E-Ticketing

Union bank of India pioneers the booking of E-ticket or ERS (Electronic Reservation Slip) of Indian Railway through UNION BANK KIOSK machine. Now you can book tickets without standing in queues. You only need to have just one Savings Account with any Computerized Branch of Union Bank of India anywhere in India and Internet Banking user-Id and Password. 5. Union Bank of India DEMAT

Union Bank of India now offers you the power of the value-added, service-oriented Demat account-Union Demat. Union Bank is Depository participant of Central Depository Services Ltd. To carter to your individual needs as diverse as your portfolio, Union Demat will empower you with hassle-free, fast and accurate electronic transactions. Plus you get Union Bank's quality service which you are used to, at all times. 6. Union Bank of India E-Remit

Union Bank of India presents fast safe secure way for sending money to India where you Get competitive exchange rates do watch it out.Union e-Remit introduces the Free Money Transfer from anywhere to India PLUS Best Exchange Rate offers.

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In the USA, all Remittances over USD 1000 are FREE. In the UK, all Remittances over GBP 2500 are FREE. 7. Union Bank of India BULLET

Fund Transfer never made so easy. Under REAL TIME GROSS SETTLEMENT (RTGS) we ensure the fastest, efficient and secure mode of fund transfer without making the Demand Draft. You can avail this facility through our Union Bullet. Quick, hassle-free RTGS transfer to any RTGS registered branch. Convenient, Paperless, Multi City and Multi Branch Banking. For further details please contact the nearest branch. 8. Union Bank of India Life Guard

Health is very important and medical expenses are soaring to new heights. It is essential for individuals to make some provision for health care for all members of your family. Union Bank has various initiatives to care for your money and also your life. Now you need not worry about unforeseen medical hospitalization expenses. Our Union Life Guard provides cashless/ hassle free hospitalization. "Union Life Guard" facilitates instant admission in all participating hospitals. You can repay the amount in just 36 installments. 9. Union Bank of India Union DIAL

24 Hour Customer Care Union is at your service 24*7*365. Customers in India can reach the call Centre through an AllIndia Toll Free number 1800 22 22 44 and customers abroad can reach us through +91-2225719600. Presently Bank is starting this service in English and Hindi only. 10. Union Bank of India Loans

The various types of loans provided by the Union Bank of India are: 1. Home loan

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2. Personal loan 3. Educational loan 4. Car loan 11. Union Bank of India Savings Account

Union Bank of India has three types of saving account- multi gains savings account, no frills savings account and union super salary account. Bank has categorized the savings account keeping in mind needs of different people. The multi gain savings account is basically a general savings account in which one has to maintain a minimum balance of Rs 25000/-. 12. Union Bank of India Fixed Deposit

Union Bank of India Union Cumulative Deposit Scheme has been designed for household saving plan for small investors. Account can be opened with a minimum amount of Rs 50/-. Interest is compounded annually. 3.5 FUTURE PLANS OF THE ORGANISATION Mumbai, Oct. 25 Union Bank of Indias net profit surged by 31.16 per cent to Rs 362 crore for the quarter ended September 30, aided by a 49 per cent increase in its net interest income. However, the banks non-interest income declined marginally due a loss in investments to the tune of Rs 38 crore. This was a difficult quarter. Despite the rising cost of resources, the banks net interest margin increased to 3.01 per cent, up 52 basis points, from 2.47 per cent in the year ago period, said Mr M.V. Nair, Chairman and Managing Director, Union Bank of India. While the banks cost of deposits fell to 6.25 per cent (6.41), the yield on advances increased to 11.16 per cent (10.26).

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The banks net NPAs also declined by 51 basis points to 0.14 per cent, indicating a significant improvement in asset quality, he said. Asked of the possibility of an increase in delinquencies in the third quarter, Mr Nair said the bank has been performing stress tests on its assets on a regular basis and most of the accounts are performing well. The delinquencies have come down in the retail, SME and agricultural sectors. A also improved by 60 basis points from 32.5 per cent to 33.1 per cent for the quarter under review. The bank aims to grow its total balance sheet size by 22 per cent to Rs 2,20,000 crore by the end of this fiscal, Mr Nair said while elaborating the banks future plans. For this, the bank is targeting a 23 per cent deposit growth and 22 per cent advances growth. The bank would focus on increasing its non-interest income and containment of the cost of funds. Retail, agri business, SME and corporates will be the four growth engines, he added. On Friday, the shares of the bank fell to Rs 123.25, against the previous close of Rs 139.55.

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ORGANIZATIONAL CHART

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3.6 PROBLEMS OF THE ORGANISATION The most severe problem faced by the branches of Union Bank of India are: 1. Negative environment. 2.Banks are being hit hard on all sides. Competitive challenges are not the only threat, however, structural and technology challenges are radically changing the game too, with the euro and Y2K just being some key examples. 3.For those in retail financial services the next five years are likely to prove the most dynamic the industry has ever seen but they could also be some of the most destructive. 4.Retail commercial banks worldwide face a revolution not only in how financial services can be delivered but also in customer expectations. 5.Deregulation and new technology have allowed aggressive new entrants into the banks' cosy world and unless the banks can dramatically change their traditional attitudes towards .

3.7 S.W.O.T. ANALYSIS STRENGTHS Dedicated relationship manager Relatively low eligibility balance Priority lounge

WEAKNESSES Lack of Promotional Activities Relatively Less Services Hours

OPPORTUNITIES Rapid Expansion of Dwarka Residential Society

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School, College Students Parents Corporate

THREATS Increased Competition

3.8 COMPETITORS INFORMATION

1. Canara Bank Canara Bank has a can-do attitude about banking in India. One of India's largest banks, Canara Bank (also known as CanBank) has a network of more than 2,500 branches throughout India and branches in Hong Kong and London. All of Canara Bank's branches -- including those located in rural areas -- are computerized, in a country where it is not a given that banks can make such a claim. (The bank considers 30% of its branches to be located in rural areas.) The modernization of all branches allows the bank to offer its customers networked ATMs, telebanking, internet banking, and debit card services. Other services include asset management and factoring. The financial institution is 73% owned by India's government.

2. ICICI BANK ICICI Bank is India's #2 bank (after State Bank of India), with some 950 branches and 3,300 ATMs nationwide. It also has locations in nearly 20 other countries. ICICI's retail banking group offers lending and deposit services to small businesses and individuals. Larger businesses are served by the corporate banking group, which offers finance services and treasury products. ICICI's rural and government banking unit offers micro-loans and agricultural banking. Foreign

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operations, as well as services related to international trade finance and expatriate Indians, fall under the international banking group. Other ICICI offerings include online banking, asset management, and insurance.

3. State Bank of India State Bank of India is the nation's largest bank. Tracing its roots back some 200 years to the British East India Company (and initially established as the Bank of Calcutta in 1806), the bank operates more than 14,000 branches within India, where it also owns majority stakes in seven associate banks. State Bank of India has more than 50 offices in nearly 35 other countries, including multiple locations in the US, Canada, and Nigeria. The bank has other units devoted to capital markets, fund management, factoring and commercial services, and brokerage services. The Reserve Bank of India owns about 60% of State Bank of India.

4. Punjab National Bank With over 56 million satisfied customers and 5002 offices including 5 overseas branches, PNB has continued to retain its leadership position amongst the nationalized banks. The bank enjoys strong fundamentals, large franchise value and good brand image. Besides being ranked as one of India's top service brands, PNB has remained fully committed to its guiding principles of sound and prudent banking. Apart from offering banking products, the bank has also entered the credit card, debit card; bullion business; life and non-life insurance; Gold coins & asset management business, etc.

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5. Bank of Baroda Bank of Baroda believes in the strength and integrity of relationships built with its customers like you. With over 102 years of experience in the banking industry and a wide network of over 3237 branches (including 26 extension counters) all over the country, we have always been active in extending financial support and adapting to your changing needs. Our Deposit Products, Retail Loans, Credit Cards and Debit Cards help you with your growing financial needs. With facilities like Lockers we ensure that your valuables are safe with us. Our countrywide branches offer you convenience and ease in operating your account wherever you are. Our 24-hour ATMs enable you to withdraw cash, check your account balance and request for a new chequebook even after banking hours.

6. Indian Bank A premier bank owned by the Government of India Established on 15th August 1907 as part of the Swadeshi movement Serving the nation with a team of over 19000 dedicated staff Total Business crossed Rs.1,67,980 Crores as on 30.09.2010 Operating Profit increased to Rs. 2747.35 Crores as on 31.03.2010 Net Profit increased to Rs.1554.99 Crores as on 31.03.2010 Core Banking Solution(CBS) in all 1801 branches

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International Presence Overseas branches in Singapore and Colombo including a Foreign Currency Banking Unit at Colombo 240 Overseas Correspondent banks in 70 countries

7. IDBI Bank IDBI Bank Ltd. is a Universal Bank with its operations driven by a cutting edge core Banking IT platform. The Bank offers personalized banking and financial solutions to its clients in the retail and corporate banking arena through its large network of Branches and ATMs, spread across length and breadth of India. We have also set up an overseas branch at Dubai and have plans to open representative offices in various other parts of the Globe, for encashing emerging global opportunities. As on March 31, 2010, the Bank had a network of 720 Branches and 1210 ATMs and plans to roll out another 300 branches during FY 2010-11. The Bank's total business, during Fy 2009-10, reached Rs. 3.06 Lakh Crore (up by 41.7 %), Balance sheet reached Rs. 2.34 Lakh Crore (up by 35.5 %) while it earned a net profit of Rs. 1031 Crore (up by 20 %).

3.9MODEL CODE COLLECTION OF DUES

CODE FOR COLLECTION OF DUES AND REPOSSESSION OF SECURITY I. Preamble:

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This Code for Collection of Dues And Repossession of Security (CDRS Code), is a non-statutory code issued on voluntary basis. II. Applicability: This code will apply to Union Bank Of India from 19th January 2004. III. Contents: Introduction Dues Collection Policy Statement Security Repossession Policy Statement General Guidelines Grievance Redressed 1. Introduction: Union Bank Of India is committed to: Following fair practices especially with regard to collection of dues and repossession of

security Fostering customer confidence and long-term relationship.

2. Dues Collection Policy Statement: Dignity and Respect to Customers is Union Bank of India's Debt Collection Policy and

the Bank do not follow policies that are unduly coercive in collection of dues. Union Bank of India's dues collection policy is built on courtesy, fair treatment and

persuasion. 3. Security Repossession Policy Statement: Union Bank of India's Security Repossession Policy aims at recovery of dues in the event

of default and is not aimed at whimsical deprivation of the property.

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The Policy recognizes fairness and transparency in repossession, valuation and

realization of security. 4. Guidelines: All the members of the staff or any other person authorized to represent Union Bank of India in dues collection or/and security repossession would follow the guidelines set out below: General:

Before taking action for collection of dues and repossession of security, Bank would give notice to the Borrower asking him to repay the dues and the Borrower will be generally given minimum 15 days time to repay dues. Guidelines for Collection of dues: Customer would be contacted ordinarily at the place of his choice and in the absence of

any specified place, at the place of his residence in the case of retail customers and in the place of business or residence as the case may be in the case of other customers. Identity and authority to represent would be made known to the customer at the first

instance. Customer privacy would be respected. Interaction with the customer would be inacceptable business language. Customer calling time would be between 0700 and 1900 hours unless the special

circumstances of the borrower's business or occupation demand otherwise. Customer requests to avoid call at a particular time or at a particular place would be

honored as far as possible. Time and number of calls and contents of conversion would be documented.

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Customer would be provided with all the information regarding dues at the time of notice

of recall of loan and as and when demanded by the Customer. All assistance would be given to resolve disputes or differences in a mutually acceptable

and in an ordinary manner, if any as regards dues. During visits to customers' place for dues collection, decency and decorum would be

maintained. Inappropriate occasions such as bereavement in the family or such other calamitous

occasions would be avoided for making calls/visits to collect dues. Demeanor that would suggest criminal intimidation or threat of violence would be

scrupulously avoided. Guidelines for Repossession of Securities: Due process of Law would be followed for repossession of securities Bank would give one week's notice before taking possession of/seizing securities In case Bank engages services of a Recovery/Seizure Agent for repossession of securities

then a notice of such appointment will be given to the Borrower. Code. Any violation of Code by Recovery/Agent will be viewed seriously and the Bank will Identity of Recovery/Seizure Agent so appointed will be disclosed to you Such Recovery/Seizure Agents will have a covenant with the Bank to be bound by this

take prompt action in preventing the violation. Bank would an approved value the securities and ascertain fair market value before

resorting to sale.

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Ordinarily Bank would not sell the securities below the fair market value unless the

circumstances warrant. In the event of sale of securities being done at a price below the fair market value then Borrower would be given one opportunity to arrange for bidders at or above the fair market value. sale. In case the borrower comes forward and reaches a settlement and repays the dues of the Sale of securities will be conducted only after expiry of 30 days from the date of notice of

Bank, then repossessed securities will be returned within 10 days from the date of satisfaction of dues.

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Chapter4. Risk Management

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Risk Management
Risk is inherent part of Banks business. Effective Risk Management is critical to any Bank for achieving financial soundness. In view of this, aligning Risk Management to Banks organizational structure and business strategy has become integral in banking business. Over a period of year, Union Bank of India (UBI) has taken various initiatives for strengthening risk management practices. Bank has an integrated approach for management of risk and in tune with this, formulated policy documents taking into account the business requirements / best international practices or as per the guidelines of the national supervisor. These policies address the different risk classes viz., Credit Risk, Market Risk and Operational Risk. The issues related to Credit Risk are addressed in the Policies stated below; Loan Policy. Credit Monitoring Policy. Real Estate Policy. Credit Risk Management Policy. Collateral Risk Management Policy. Recovery Policy. Treasury Policy.

The Policies and procedures for Market Risks are articulated in the ALM Policy and Treasury Policy. The Operational Risk Management involves framework for management of operational risks faced by the Bank. The issues related to this risk is addressed by; Operational Risk Management Policy. Business Continuity Policy.

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Outsourcing Policy. Disclosure Policy.

Besides, the above Board mandated Policies, Bank has detailed Internal Control Principles communicated to the business lines for ensuring adherence to various norms like Anti-Money Laundering, Information Security, Customer complaints, Reconciliation of accounts, Bookkeeping etc. Credit Risk Credit Risk Management Policy of the Bank dictates the Credit Risk Strategy. These Polices spell out the target markets, risk acceptance / avoidance levels, risk

tolerance limits, preferred levels of diversification and concentration, credit risk measurement, monitoring and controlling mechanisms. Standardized Credit Approval Process with well-established methods of appraisal and

rating is the pivot of the credit management of the bank. Bank has comprehensive credit rating / scoring models being applied in the spheres of

retail and non-retail portfolios of the bank. The Credit rating system of the Bank has eight borrower grades for standard accounts and

three grades for defaulted borrowers. Proactive credit risk management practices in the form of studies of rating-wise

distribution, rating migration, probability of defaults of borrowers, Portfolio Analysis of retail lending assets, periodic industry review, Review of Country, Currency, Counter-party and Group exposures are only some of the prudent measures, the bank is engaged in mitigating risk exposures.

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The current focus is on augmenting the banks abilities to quantify risk in a consistent,

reliable and valid fashion, which will ensure advanced level of sophistication in the Credit Risk Measurement and Management in the years ahead.

Market Risk Bank has well-established framework for Market Risk management with the Asset

Liability Management Policy and the Treasury Policy forming the fulcrum for procedures, processes and structure. It has a major objective of protecting the banks net interest income in the short run and market value of the equity in the long run for enhancing shareholders wealth. The important aspect of the Market Risk includes liquidity management, interest rate risk management and the pricing of assets and liabilities. Further, Bank views the Asset Liability Management exercise as the total balance sheet management with regard to its size, quality and risk.

The ALCO is primarily entrusted with the task of market risk management. The

Committee decides on product pricing, mix of assets and liabilities, stipulates liquidity and interest rate risk limits, monitors them, articulates Banks interest rate view and determines the business strategy of the Bank.

Bank has put in place a structured ALM system with 100% coverage of data on both

assets and liabilities. To measure liquidity and interest rate risk, Bank prepares various reports such as Structural Liquidity, Interest Rate Sensitivity, Fortnightly Dynamic Statement etc. Besides RBI reporting many meaningful analytical reports such as Duration Gap analysis, Contingency Funding Plan, Contractual Maturity report etc. are generated at periodic intervals for ALCO, which meets regularly. Statistical and mathematical models are used to analyze the core and volatile components of assets and liabilities.

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The objective of liquidity management is to ensure adequate liquidity without affecting

the profitability. In tune with this, Bank ensures adequate liquidity at all times through systematic funds planning, maintenance of liquid investments and focusing on more stable funding sources.

The Mid Office group positioned in treasury with independent reporting structure on risk

aspects ensure compliance in terms of exposure analysis, limits fixed and calculation of risk sensitive parameters like VaR, PV01, Duration, Defeasance Period etc. and their analysis.

Operational Risk Operational Risk, which is intrinsic to the bank in all its material products, activities,

processes and systems, is emerging as an important component of the enterprise-wide risk management system. Recognizing the importance of Operational Risk Management, Bank has adopted a Comprehensive Operational Risk Management Policy. This would entail the bank to move towards enhanced level of sophistication in the years ahead and to capture qualitative and quantitative measures of Operational Risk indicators in management of operational risk.

Bank has comprehensive system of internal controls, systems and procedures to monitor

and mitigate risk. Bank has also institutionalized new product approval process to identify the risk inherent in the new product and activities.

The Internal audit function of the Bank and the Risk Based Internal Audit, compliments

the banks ability to control and mitigate risk. 4.1 COMPENSATION POLICY Technological progress in payment and settlement systems and the qualitative changes in operational systems and processes that have been undertaken by various players in the market have enabled market forces of competition to come into play to improve efficiencies in providing

42

better service to the users of the system. It will be the banks endeavor to offer services to its customers with best possible utilization of its technology infrastructure. Withdrawal of the Reserve Bank of India instructions to banks on time frame for collection of outstation cheques, payment of interest on delayed collection of outstation cheques/instruments, with effect from 1st November 2004, had offered bank further opportunities to increase its efficiency for better performance. This Compensation policy of the bank is therefore, designed to cover areas relating to unauthorized debiting of account, payment of interest to customers for delayed collection of cheques/instruments, payment of cheques after acknowledgement of stop payment instructions, remittances within India, foreign exchange services, lending, etc. The policy is based on principles of transparency and fairness in the treatment of customers. The objective of this policy is to establish a system whereby the bank compensates the customer for any financial loss he/she might incur due to deficiency in service on the part of the bank or any act of omission or commission directly attributable to the bank. By ensuring that the customer is compensated without having to ask for it, the bank expects instances when the customer has to approach Banking Ombudsman or any other Forum for redressed to come down significantly. It is reiterated that the policy covers only compensation for financial losses which customers might incur due to deficiency in the services offered by the bank which can be measured directly and as such the commitments under this policy are without prejudice to any right the bank will have in defending its position before any forum duly constituted to adjudicate banker-customer disputes.

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1. Unauthorized / Erroneous Debit Genuine claims arising out of erroneous and unwanted direct debits made to the customers account due to frauds/mistake or fault in the system will be disposed of expeditiously. In case of any fraud, if the branch is convinced that an irregularity/ fraud has been committed by staff towards any constituent, branch will at once acknowledge its liability and pay the just claim. In case where the branch is at fault, branches will compensate the customer without demur. In cases where neither the branch nor the customer is at fault, but the fault lies elsewhere in the system, branches will compensate the customers as per this policy. Once a prima facie forgery is established or an error/fault is detected payment will be made to the account promptly against an indemnity. In such cases bank will give value-dated credit and interest at the prevailing rate applicable for fixed deposit of 1 to 3 years will be paid for the relevant period to compensate for financial loss suffered by the customer incidental to return of a cheque or failure to debit instructions due to insufficiency of balance on account of unauthorized/erroneous debit. No other financial loss will be compensated. In case of OD/CC accounts if the error is on account of Banks mistake compensation will be paid at the rate applicable to respective borrower account in which the error has occurred. Such cases will be settled within a period of one month from the date the complaint is lodged with the Bank. However, in cases where activities like thorough investigation of the case, obtaining an opinion from a signature expert etc. are involved will be settled within a period of four months from the date the complaint is lodged with the Bank. The authority to settle the claim is vested only with senior/Top Executives functioning in Controlling Offices/Central Office and as such no claim will be settled at Branch level.

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2. ECS direct debits/other debits to accounts The bank will undertake to carry out direct debit/ ECS debit instructions of customers in time. In the event the bank fails to meet such commitments interest at the prevailing rate applicable for fixed deposit of 1 to 3 years will be paid for the period of delay to compensate financial loss the customer would incur on account of delay in carrying out the instruction/failure to carry our the instructions. No other financial loss will be compensated. The bank would debit the customers account with any applicable service charge as per the schedule of charges notified by the bank. In the event the bank levies any charge in violation of the arrangement, the bank will reverse the charges when pointed out by the customer subject to scrutiny of agreed terms and conditions. In such cases interest will be paid at the prevailing rate applicable for fixed deposit of 1 to 3 years for the relevant period so as to compensate any consequential financial loss to the customer. No other financial loss will be compensated. Where it is established that the bank had issued and activated a credit card without written consent of the recipient, the bank would not only reverse the charges immediately but also pay a penalty without demur to the recipient amounting to twice the value of charges reversed. 3. Payment of Cheques after Stop Payment Instructions In case a cheque has been paid after stop payment instruction is acknowledged by the bank, the bank shall reverse the transaction. Such debits will be reversed within 2 working days of the customer intimating the transaction to the bank. Any consequential financial loss to the customer will be compensated as provided under Para 1 above.

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4. Foreign Exchange Services The Bank would not compensate the customer for delays in collection of cheques designated in foreign currencies sent to foreign countries, as the bank would not be able to ensure timely credit from overseas banks. It is the banks experience that time for collection of instruments drawn on banks in foreign countries differ from country to country and even within a country, from place to place. The time norms for return of instruments cleared provisionally also vary from country to country. Bank however, would consider upfront credit against such instrument by purchasing the cheque/instrument, provided the conduct of the account has been satisfactory in the past. However, the bank will compensate the customer for undue delays in affording credit once proceeds are credited to the Nostro Account of the bank with its correspondent. Such compensation will be given for delays beyond one week from the date of credit to Nostro Account/ due date after taking into account normal cooling period stipulated. The compensation in such cases will be worked out as follows: a) bank b) Compensation for any possible loss on account of adverse movement in foreign exchange Interest for the delay in crediting proceeds as indicated in the collection policy of the

rate. The compensation will be the difference between the RBI reference rate between the dates the credit should have been passed on to the customer and the date the credit is actually passed on. 5. Remittances in India The compensation on account of delays in collection of instruments would be as indicated in the banks collection policy, which is reproduced below for information:

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Payment

of

Interest

for

delayed

Collection

of

Outstation

Cheques

As part of the compensation policy of the bank, the bank will pay interest to its customer on the amount of collection instruments in case there is delay in giving credit beyond the time period mentioned above. Such interest shall be paid without any demand from customers in all types of accounts. There shall be no distinction between instruments drawn on the banks own branches or on other banks for the purpose of payment of interest on delayed collection. Interest for delayed collection shall be paid at the following rates a) Fixed deposit rate prevailing at the time of payment of interest for the period of delay

beyond 7/10/14 days as the case may be in collection of outstation cheques.e.g. If a cheque payable at Chennai is deposited at Mumbai on 1st January 2007 and credited to the customers account on 11th January 2007, the actual period of delay will be 3 days. Interest will be payable for the period of 3 days at the rate of interest applicable for equivalent period of deposit. Since the actual number of days is less than 7 days, the applicable rate of interest will be the corresponding rate of interest for minimum tenure of term deposit i.e. 7 14 days. b) In case of extraordinary delay, i.e. delays exceeding 30 days (excluding normal period of

collection) interest will be paid at the rate of 2% above the corresponding Term Deposit rate. e.g. If a cheque payable at Chennai is deposited at Mumbai on 1st January 2007 and credited to the customers account on 11th February 2007, the actual period of delay will be 34 days consisting of 30 days normal delay and 4 days abnormal delay. Interest will be payable for the period of 30 days at the rate of interest applicable for equivalent period of deposit and for the period of 4 days at 2% over and above the interest applicable for delay. The applicable rate of interest will be the corresponding rate of interest for the period of 34 days.

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c)

In the event the proceeds of cheque under collection were to be credited to an

overdraft/loan account of the customer, interest will be paid at the rate applicable to the loan account. For extraordinary delays, interest will be paid at the rate of 2% above the rate applicable to the loan account It may be noted that interest payment as given above would be applicable only for instruments sent for collection within India. The banks compensation policy for financial loss suffered by the customers due to loss of instrument after it has been handed over to the bank for collection by the customer would also be as indicated in our collection policy. The same is extracted below for information: Cheques / Instruments lost in transit / in clearing process or at paying banks branch: In the event a cheque or an instrument accepted for collection is lost in transit or in the clearing process or at the paying banks branch, the bank shall immediately on coming to know of the loss, bring the same to the notice of the accountholder so that the accountholder can inform the drawer to record stop payment and also take care that cheques, if any, issued by him / her are not dishonored due to non-credit of the amount of the lost cheques / instruments. The bank would provide all assistance to the customer to obtain a duplicate instrument from the drawer of the cheque. In line with the compensation policy of the bank the bank will compensate the accountholder in respect of instruments lost in transit in the following way: a) Expenses incurred for obtaining duplicate instruments will be paid @2% of the amount of

instruments subject to maximum of Rs.500. b) Interest will be paid for a maximum period of 30 days at the rate applicable for relevant

period of fixed deposit prevailing at the time of payment of interest.

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c)

In case the customer demands, the bank would also compensate the customer any charges

incurred by the drawer for recording stop payment of the lost cheque/instrument upon production of receipt. 6. Violation of the Code by banks agent

In the event of receipt of any complaint from the customer that the banks representative / courier or DSA has engaged in any improper conduct or acted in violation of the Code of Banks Commitment to Customers, which the bank has adopted voluntarily, bank shall take appropriate steps to investigate and to handle the complaint and to compensate the customer for financial losses as being done in case of cheques /instruments lost in transit/ in clearing process or at paying banks branch. 7. Transaction of at par instruments of Co-operative Banks by Commercial Banks

The RBI has expressed concern over the lack of transparency in the arrangement for payment of at par instruments of co-operative banks by commercial banks resulting in dishonor of such instruments when the remitter has already paid for the instruments. In this connection it is clarified that the bank will not honor cheques drawn on current accounts maintained by other banks with it unless arrangements are made for funding cheques issued. Issuing bank should be responsible to compensate the cheque holder for nonpayment/delayed payment of cheques in the absence of adequate funding arrangement. 8. Force Majeure

The bank shall not be liable to compensate customers for delayed credit if some unforeseen event (including but not limited to) civil commotion, sabotage, lockout, strike or other labour disturbances, accident, fires, natural disasters or other Acts of God, war, damage to the banks

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facilities or of its correspondent bank(s), absence of the usual means of communication or all types of transportation, etc. beyond the control of the bank prevents it from performing its obligations within the specified service delivery parameters. 4.2 GRIEVANCE REDRESSAL POLICY In the present scenario of competitive banking, excellence in customer service is the most important tool for sustained business growth. Customer complaints are part of the business life of any corporate entity. This is more so for banks because banks are service organizations. As a service organization, customer service and customer satisfaction are the prime concern of the bank. This policy document aims at minimizing instances of customer complaints and grievances through proper service delivery and review mechanism and prompt redressal of customer complaints and grievances. The banks policy on grievance redressal is governed by the following principles: i. ii. iii. Customers are treated fairly at all times Complaints raised by customers are dealt with courtesy and on time Customers are fully informed of avenues to escalate their complaints/grievances within

the organization and their rights to alternative remedy, if they are not fully satisfied with the response of the bank to their complaints. iv. Bank will treat all complaints efficiently and fairly and will be seen as opportunities for

improvement. v. The bank employees must work in good faith keeping in mind Banks policy and without

prejudice to interest of the customer.

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In order to make banks redressal mechanism more meaningful and effective, a structured system is built up towards such end. The system ensures that the redressal sought is just and fair and is within the given framework of rules and regulations. The policy document will be made available at all branches. The concerned employees will be educated about the complaint handling process. The customer will have the full right to register his complaint if he is not satisfied with the services provided by the bank. He can give his complaint in writing, orally or over telephone. If customers complaint is not resolved within given time or if he is not satisfied with the solution provided by the bank, he will have the right to approach Banking Ombudsman with his complaint or other legal avenues available for grievance redressal.

4.3 Internal Machinery to handle Customer complaints/ grievances 4.3.1 Three tier grievance redressal system
The Bank will have public grievances machinery functioning at three levels i.e. Branch, Regional and Central Office level. All complaints received at every level will be immediately acknowledged, redressed and final reply will be given to the complainants.

4.3.2 Nodal Officer and other designated officials to handle complaints and grievances
Bank will appoint a Nodal Officer of the rank of General Manager who will be responsible for the implementation of customer service and complaint handling for the entire bank. At field level Regional Heads will be designated to handle complaints/grievances in respect of branches falling under their control...

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4.4 Mandatory display requirements

As per mandatory requirements the Bank will provide; i. ii. iii. iv. Appropriate arrangement for receiving complaints and suggestions. The name, address and contact number of Nodal Officer(s) Contact details of Banking Ombudsman of the area Code of banks commitments to customers/Fair Practice code

4.5 Resolution of Grievances

Branch Manager will be responsible for the resolution of complaints/ grievances in respect of customers serviced by the branch. He will be responsible for ensuring closure of all complaints received at the branches. It will be his foremost duty to see that the complaint stands resolved completely to the customers satisfaction and if the customer is not satisfied, then he will be provided with alternate avenues to escalate the issue. If the Branch Manager feels that it is not possible at his level to solve the problem he has to refer the case to Regional or Zonal Office or Central Office for guidance and seek intervention. Similarly, if Regional/Zonal Offices find that they are not able to solve the problem such cases have to be referred to the Nodal Officer at Central Office. Time frame Complaint will be seen in the right perspective because they indirectly reveal a weak spot in the working of the bank. Complaint received will be analyzed from all possible angles. Specific time schedule will be set up for handling complaints and disposing them at all levels including branches, Regional and Central Office. Branch Manager will try to resolve the complaint within specified time frame, decided by the bank.

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If the complaint is received in writing, bank will send an acknowledgement/ a response within a week. If the complaint is relayed over phone at our designated telephone helpdesk or customer service number bank will provide the customer a complaint reference number and keep him/her informed of the progress within a reasonable period of time. After examining the matter, bank will send to the customer final response or explain why we need more time to respond within a period of six weeks of receipt of the complaint and will tell the customer how to take the complaint further if he/she is still not satisfied. Branch and Regional Office will send action taken report on complaints received to the Regional Office and Central Office respectively at the end of every month.

4.6 Committees on Customer Service in Bank

Customer Service Committee of the Board While board is the Competent Authority for formulation of a Comprehensive Deposit Policy and Loan Policy, recommendations of this sub-committee of the Board will be taken into account for fine- tuning the policies and processes. This Committee will review the functioning of Standing Committee on Customer Service including compliance with the recommendations of the Committee on Procedures and Performance Audit of Public Services (CPPAPS). The Committee will also suggest innovative measures of enhancing the quality of customer service and improving the level of customer satisfaction for all categories of customers at all times. Standing Committee on Customer Service The Standing Committee on Customer Service will be chaired by the Managing Director/ Executive Director of the bank. Besides two to three senior executives of the bank, the

53

committee will also have two to three eminent non-executives drawn from the public as members. The Committees functions are as under: i. The Committee will evaluate feedback on quality of customer service received from

various quarters. ii. The committee will also review comments/ feedback on customer service and

implementation of commitments in the Code of Banks Commitments to Customers received from BCSBI. iii. The Committee will be responsible to ensure timely and effective implementation of all

regulatory instructions regarding customer service. It will also receive necessary feedback to determine that the action taken by various departments is in tune with the spirit and intent of such instructions. iv. The Committee will look into the simplification of procedures and practices prevailing in

the Bank, with a view to safeguarding the interests of common persons, be they current or savings accountholders, depositors or borrowers from any unfair procedural practices by banks. v. The Committee will review the systems in place for providing service to the customers in

respect of (i) (ii) (iii) meeting their demands for fresh/good notes and coins of all denominations, exchanging soiled notes, adjudicating mutilated notes and (iv) accepting coins and notes either for transactions or

in exchange. vi. The Committee will review the regulations and procedures prescribed by Reserve Bank

of India that impinge on customer service of banks and make suitable recommendations for

54

elimination/rationalization of the same, especially keeping in view the need to drastically reduce the cost and improve the ease of conducting transactions both for banks and customers. vii. The Committee will review the practice and procedures prevalent in the Bank and take

necessary corrective action, on an on-going basis. viii. The Committee will also study the pending Consumer Forum and Banking Ombudsman

cases and offer their advice/opinion. ix. The Committee will also consider unresolved complaints/ grievances referred to it and

offer their advice. x. The Committee will submit report on its performance to the Customer Service Committee

of the Board at quarterly intervals.

4.7 Interaction with customers

The bank recognizes that customers expectation/ requirement/ grievances can be better appreciated through personal interaction with customers by banks staff. Customer Day will be observed by all our branches on 15th of every month where customers can lodge their complaints personally and have their redressal on the spot. Fortnightly, customer service committee meetings will be held in the branches wherein customers can also voice their grievances/ suggestions for improvement in customer service and on the spot redressal will be ensured by the branches. Many of the complaints arise on account of lack of awareness among customers about bank services and such interactions will help the customers appreciate banking services better. For the bank the feedback from customers will be valuable input for revising its product and services to meet customer requirements.

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4.8 Sensitizing operating staff on handling complaints

Staff will be properly trained for handling complaints. We are dealing with people and hence difference of opinion and areas of friction can arise. With an open mind and a smile on the face we should be able to win the customers confidence. It will be the responsibility of the Nodal Officer to ensure that internal machinery for handling complaints/grievances operates smoothly and efficiently at all levels. He should give feed back on training needs of staff at various levels to the HR Dept. Tech-Savvy

With the age of global banking, Union Bank of India also changed its style, boasting of urbanized and computerized core banking systems. A front runner among public sector banks in modern-day banking, it has all the facilities that a modern bank should have - internet banking and centrally computerized branches. UBI was one of the pioneer public sector banks, which launched Core Banking Solution in 2002. As of September 2005, more than 670 branches/extension counters of Bank are networked under Core Banking Solution. The Bank has launched multiple Electronic Delivery Channels and has installed nearly 423 networked ATMs.

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Chapter5. Products & Services

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5.1 Union Bank of India Credit Cards

Union Bank of India has three International Credit Cards designed to meet your unique lifestyle and shopping needs. Bank has three types of credit cards-Union card- Classic, Silver and Gold. The bank offers various features and benefits on its cards including Cash Advance round the clock at all ATMs, Photo card option, Accident Insurance, Reward Program, Flexi payment, etc. 1. Classic Card : Cards are issued with photograph and signature of the cardholder printed for enhanced

safety. SPENDING LIMIT: 25% of annual income with a minimum of Rs.15000 and a maximum of Rs.5.00 lacs. Option to pay a minimum of 10% of the outstanding amount and option to carry over the

balance. Lowest interest rate of 20.40% per annum only on the outstanding balance on daily

product basis. 25% of Annual gross income reported with a minimum limit of 15000/.

2. Silver Card: Cards are issued with photograph and signature of the cardholder printed for enhanced

safety. SPENDING LIMIT: 25% of Annual Gross Income reported with a minimum of Rs.25000 Option to pay a minimum of 10% of the outstanding amount and option to carry over the

balance.

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Lowest interest rate of 20.40% per annum only on the outstanding balance on daily

product basis. 25% of Annual gross income reported with a minimum limit of 15000/. 3. Gold Card: Cards are issued with photograph and signature of the cardholder printed for enhanced

safety. SPENDING LIMIT: 25% of Annual gross income or Rs.1 lac whichever is higher. Option to pay a minimum of 10% of the outstanding amount and option to carry over the

balance. Lowest interest rate of 20.40% per annum only on the outstanding balance on daily

product basis. 25% of Annual gross income reported with a minimum limit of 15000/. Union Bank of India International Debit Card

5.2 ATM SERVICES

A T M (Automated Teller Machine) facilitates the customer to do Banking transactions such as Cash withdrawal, balance enquiry, obtaining mini-statement, transfer of funds between his/her own accounts etc. Union Bank of India tied up with Visa for issuing International Debit Cards to the customers of all its branches. The Debit Card provides ANY TIME / ANY WHERE Banking to the customers. Presently, Bank has 1276 ATMs (As on 30.06.2008) which are online, conveniently located and spread across the country. The Debit Card can also be used for

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making purchases. The daily withdrawal limit through ATMs is Rs.25000/- and the limit for making purchases is Rs.25, 000/- (combined limit Rs.50, 000/-). Issue of ATM cum Debit Card to customer is made very simple and most convenient. A Ready kit containing both Debit Card and Pin are handed over to the customer immediately on opening of the account and in case of existing customers, the same is provided immediately on demand. The Debit Card is activated on the next working day. There is absolutely no waiting period for obtaining the Debit Card from the Bank. Experience for yourself by opening an account with any of our CBS branches and getting the Ready kit instantly. . The Debit card gets activated only when it is used along with PIN at ATM for cash withdrawal. Only after the first transaction at ATM, the customer will be able to use the Debit Card for making purchases. For providing better facility and wider acceptance of the Debit Card, the Bank has entered into ATM sharing arrangements with Cash Tree Group, SBI group, NFS group and VISA. Under these arrangements Union Bank cardholder can access over 32000 ATMs of 42 banks across the country Union Bank has completely freed the transaction charges for using its cards in any other Banks ATM all over India. International Transactions 2% Currency Conversion charges extra

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5.3 Union Bank of India Online Tax-Payment

Online Tax payment is the facility which allows the bank's customer to pay their Taxes online. DIRECT TAX PAYMENT

Union Bank of India has extended the online direct tax payment facility to its Internet Banking users. CENTRAL EXCISE & SERVICE TAX PAYMENT

Union Bank of India has extended the online tax payment facility to its Internet Banking users. Customer can generate duplicate challans from his Internet Banking module. ICEGATE - INDIAN CUSTOMS AND EXCISE GATEWAY

Users registered at ICEGATE can use the facility of online payment in addition to the existing facility. The registered users will be able to make the duty payment for all the documents filed through the ICEGATE. Note* - This facility is available for Custom's Duty at Delhi Air Cargo and ICDs only. DGFT - DIRECTORATE GENERAL OF FOREIGN TRADE

DGFT is a central Govt. Department which issues import export licenses, for the purpose of which, and during the discharge of its functions collects Fees/Dues as prescribed or entitled. MCGM MUNICIPAL CORPORATION OF GREATER MUMBAI

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Union Bank of India has extended the online payment facility to its Internet Banking users for Octroi, Water Bill, Property Tax, Issue of Birth Certificates, etc. under E-Governance Project of MCGM. Union Bank of India Railway E-Ticketing

Union bank of India pioneers the booking of E-ticket or ERS (Electronic Reservation Slip) of Indian Railway through UNION BANK KIOSK machine. Now you can book tickets without standing in queues. You only need to have just one Savings Account with any Computerized Branch of Union Bank of India anywhere in India and Internet Banking user-Id and Password Advantages of Booking E-ticket through KIOSK are as: 1. time. 2. Printed ticket will come instantly from KIOSK as booked and customers can carry ECustomers can book ticket at any time through KIOSK as per IRCTC website booking

ticket immediately with them. 3. Ticket can also be cancelled through KIOSK machine.

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5.4 Union Bank of India DEMAT

Union Bank of India now offers you the power of the value-added, service-oriented Demat account-Union Demat. Union Bank is Depository participant of Central Depository Services Ltd. To carter to your individual needs as diverse as your portfolio, Union Demat will empower you with hassle-free, fast and accurate electronic transactions. Plus you get Union Bank's quality service which you are used to, at all times. UNION DEMAT- Conduct hassle-free transactions on your shares. Manage your securities at your fingertips. WHY YOU NEED UNION DEMAT Today, physical securities are converted to electronic book entries by a Depository. Union Bank of India as a Depository Participant will deliver and/or receive securities on your behalf using your union Demat account. According to the Depository Act 1996, the investor has the option to hold shares either in physical or electronic mode. SEBI has notified a list of securities where transactions will take list of securities where transactions will take place only in the electronic mode. Thus, you need Union Demat to transact such securities. However, you could rematerialize the electronic securities and hold them in physical form.

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WHO CAN OPEN A UNION DEMAT ACCOUNT? An individual, Non-Resident Indian, Foreign Institutional Investor, Foreign National, Corporate, Trusts, Clearing Houses, Financial Institution, Clearing Member, Mutual Funds, Banks and Other Depository Account. THE PROCEDURE FOR OPENING A UNION DEMAT ACCOUNT You just have to fill up an Account Opening Form, submit a photograph of the applicant along with a photocopy of driving license / Election ID Card / passport and your Demat account number will be intimated to you immediately on the completion of processing of your application. Besides, you also get additional benefits designed for your convenience. You will receive Transaction Statements and all other additional statements from time to time. A Nomination facility, Freezing / De freezing facility is also available. Demat Activities include:

Opening and maintaining of Demat Accounts Dematerialization Rematerialisation Purchases Sales Pledging and unpledging

HOW THE SCHEME WORKS

Submit the application form in a prescribed format to the branch. Mention beneficiary bank and branch name with Indian Financial System Code (IFSC),

which should be registered with the Reserve Bank of India under its RTGS system.

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Message will be sent in electronic form in a highly secured manner through Reserve

Bank of India to beneficiary banks branch.

Credit to beneficiarys account will be made within 2 hours from the receipt of message

by the beneficiary's banker. UNION DEMAT is one more value-added service offered by Union Bank of India for you, our valued customer. We have always focused on customer service and satisfaction. We are committed to meeting all your needs, and would only be too glad to tell you more about Union Demat. So come, let us enter a new phase in securities management and dematerialize financial assets "the Union Demat way". All our Demat account holders can avail net-based facility easy & easiest provided by CDSL. Union Bank of India E-Remit

Union Bank of India presents fast safe secure way for sending money to India where you Get competitive exchange rates do watch it out. Union e-Remit introduces the Free Money Transfer from anywhere to India PLUS Best Exchange Rate offers. In the USA, all Remittances over USD 1000 are FREE. In the UK, all Remittances over GBP 2500 are FREE.

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5.5 Union Bank of India BULLET

Fund Transfer never made so easy. Under REAL TIME GROSS SETTLEMENT (RTGS) we ensure the fastest, efficient and secure mode of fund transfer without making the Demand Draft. You can avail this facility through our Union Bullet. Quick, hassle-free RTGS transfer to any RTGS registered branch. Convenient, Paperless, Multi City and Multi Branch Banking. For further details please contact the nearest branch.

5.6 Union Bank of India Union DIAL

24 Hour Customer Care Union is at your service 24*7*365. Customers in India can reach the call Centre through an AllIndia Toll Free number 1800 22 22 44 and customers abroad can reach us through +91-2225719600. Presently Bank is starting this service in English and Hindi only.

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Union Dial "Union Dial", the On-line call centre facility of Union Bank of India comes absolutely free for the customers. Contact your branch manager for availing the facility, get your PIN and enjoy banking from your home, office or anywhere in the world. Services Union Bank of India offers you a wide range of services through IVR such as : 1. 2. 3. Account Information Change Pin Transaction Posting

5.7 Union Bank of India Home Loan

Union Bank of India offers you a home loan with life insurance cover from SBI Life Insurance Co. Ltd., under Union Home Plus scheme. The insurance cover will be equivalent to the amount of the outstanding home loan. SBI Life takes the complete responsibility from your shoulders by becoming alone bearer of the insurance liability. Interest Rate Loan Amount 20% For For repairs, 20% purchase of total or cost construction. of repair. 0%

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For purchase of plot, 20% of the value of the plot. Min. Tenure Max. - 20 Yrs. 5 Yrs.

Interest Rates Interest Tenure Type 15 - 20 Yrs. Floating 10 - 15 Yrs. Floating 5 - 10 Yrs. 1 - 5 Yrs. 1 - 5 Yrs. Floating Floating Fixed Rate 10.5 % 10.25 % 10 % 9.75 % 10.75 % Interest Offer

5.8 Union Bank of India Personal Loan

Union Bank of India offers personal loan for to meet all your expenses or to purchase of consumer durables under Union Comfort scheme. Bank has simple eligibility criteria and

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documentation. Bank gives you option of repayment in 36 EMIs and starts from the next month of disbursement of loans. Salaried Loan Type Loan Amount Term Loan Min. Rs Self Employed Term Loan 50000 Min. Rs 50000

Max. - Rs 1500000 Tenure Interest Rate Min. - 12 Yrs. Min. 15

Max. - Rs 1500000 Min. - 12 Yrs. % Min. 15 %

Max. - 15 % Time to Process Loan 7 days

Max. - 15 % 7 days

5.9 Union Bank of India Educational Loan

Union Bank of India provides education loan for studies whether in India or abroad for graduation, post graduation, for job oriented courses and technical courses. Bank provides loan to needy and poor students so that they can undertake higher professional/ technical education.

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Study Abroad Course Loan Type Loan Amount Graduation Term Loan Min. Rs

Study India Graduation Term Loan 50000 Min. Rs 50000

Max. - Rs 400000 Interest Rate 12.5 %

Max. - Rs 400000 12.5 %

5.10 Union Bank of India Car Loan

Union Bank of India offers loan for purchase of vehicles for personal use under Union Miles Scheme. Loan can be taken by both individuals and firms. Bank charges a processing fee of Rs 250 for two wheelers loans and Rs 500 for four wheelers loans up to Rs 2 lakh. Four wheeler loans of over Rs 2 lakh are charged a fee of Rs 1000.

New Car Loan Type Ex-Showroom/On Road Loan Amount Term Loan On Road Min. Rs

Used Car Term Loan On Road 50000 Min. Rs 50000

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Max. - Rs 85 Tenure Interest Rate Time to Process Loan Preferred Manufacturers Min. - 12 Yrs. 12.25 % 7 days Chevrolet, GENERAL INDIA, MOTORS, Hyundai, Maruti, FIAT,

Max. - Rs 85 Min. - 12 Yrs. 13.25 % 7 days Ford, Chevrolet, FIAT, Ford,

MOTORS GENERAL HINDUSTAN INDIA, Honda, MOTORS, Mahindra, Hyundai,

MOTORS HINDUSTAN Honda, Mahindra,

Mercedes-Benz, Maruti,

Mercedes-Benz,

Mitsubishi, Nissan, Reva, Mitsubishi, Nissan, Reva, SAN Engineering, Skoda, SAN Engineering, Skoda, Tata Motors, Toyota Tata Motors, Toyota

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5.11 Union Bank of India Saving Accounts

Union Bank of India has three types of saving account- multi gains savings account, no frills savings account and union super salary account. Bank has categorized the savings account keeping in mind needs of different people. The multi gain savings account is basically a general savings account in which one has to maintain a minimum balance of Rs 25000/-. The interest is paid quarterly. Bank of offers free services along with saving accounts such as an international debit card is issued free to the account holder, local / outstation cheques of up to Rs.15000/- will be collected free of charge, the account holder is provided with 10 cheque books free of cost during a financial year, etc.

5.12 Union Bank of India Fixed Deposits

Union Bank of India Union Cumulative Deposit Scheme has been designed for household saving plan for small investors. Account can be opened with a minimum amount of Rs 50/-. Interest is

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compounded annually. The installment amount selected during the opening of the account will be payable every month. 7-14 days Effective From: May 18, 2009 Tenure Amount Interest Rate 7 - 14 Days 1 - 10000000 Rs 2.50 / annually

7-14 days Effective From: May 18, 2009 Tenure Amount Interest Rate 15-30 days Effective From: May 18, 2009 Tenure Amount Interest Rate

Senior Citizen 7 - 14 Days 1 - 10000000 Rs 3.00 / annually

15 - 30 Days 1 - 10000000 Rs 2.50 / annually

15-30 days Effective From: May 18, 2009 Tenure Amount Interest Rate 31-45 days Effective From: May 18, 2009 Tenure 31 - 45 Days Senior Citizen 15 - 30 Days 1 - 10000000 Rs 3.00 / annually

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Amount Interest Rate 31-45 days Effective From: May 18, 2009 Tenure Amount Interest Rate 46 to 90 days Effective From: May 18, 2009 Tenure Amount Interest Rate

1 - 10000000 Rs 3.00 / annually

Senior Citizen 31 - 45 Days 1 - 10000000 Rs 3.50 / annually

46 - 90 Days 1 - 10000000 Rs 3.00 / annually

46 to 90 days Effective From: May 18, 2009 Tenure Amount Interest Rate 91-179 days Effective From: May 18, 2009 Tenure Amount Interest Rate 91 - 179 Days 1 - 10000000 Rs 3.50 / annually Senior Citizen 46 - 90 Days 1 - 10000000 Rs 3.50 / annually

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91-179 days Effective From: May 18, 2009 Tenure Amount Interest Rate 180 days to < 9 months Effective From: May 18, 2009 Tenure Amount Interest Rate 180 days to < 9 months Effective From: May 18, 2009 Tenure Amount Interest Rate 180 - 270 Days 1 - 10000000 Rs 4.50 / annually Senior Citizen 180 - 270 Days 1 - 10000000 Rs 5.00 / annually Senior Citizen 91 - 179 Days 1 - 10000000 Rs 4.00 / annually

9 months to < 1 year Effective From: May 18, 2009 Tenure Amount Interest Rate 9 months to < 1 year Effective From: May 18, 2009 Tenure Amount Interest Rate 270 - 365 Days 1 - 10000000 Rs 5.50 / annually Senior Citizen 270 - 365 Days 1 - 10000000 Rs 6.00 / annually

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1 yr -999 days Effective From: May 18, 2009 Tenure Amount Interest Rate 1 yr -999 days Effective From: May 18, 2009 Tenure Amount Interest Rate 1000 Days Effective From: May 18, 2009 Tenure Amount Interest Rate 1000 Days Effective From: May 18, 2009 Tenure Amount Interest Rate 1001 Days & above Effective From: May 18, 2009 Tenure Amount Interest Rate 1001 - 1001 Days 1 - 10000000 Rs 5.50 / annually Senior Citizen 1000 - 1000 Days 1 - 10000000 Rs 6.00 / annually 1000 - 1000 Days 1 - 10000000 Rs 5.50 / annually Senior Citizen 365 - 999 Days 1 - 10000000 Rs 6.00 / annually 365 - 999 Days 1 - 10000000 Rs 5.50 / annually

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1001 Days & above Effective From: May 18, 2009 Tenure Amount Interest Rate Senior Citizen 1001 - 1001 Days 1 - 10000000 Rs 6.00 / annually

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Chapter6. DATA ANALYSIS

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Q.1 . Which type of accounts do the customers have in the Union bank?

Types of accounts Saving account Current account Fixed deposit account Demat account

No. of Accounts 22 12 8 6

According to this figure customer opted more for saving account (46%), followed by Current Account (13%), fixed deposit account (17%), and Demat account (25%).

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Q2.

What prompted the customers to choose Union Bank?

Reasons Salary account Convenient location Recommended by friends Range of products and Services Convenient Working Hours

No. of customers 20 6 4 14 6

This figure shows that customers choose this bank because of Salary Account (40%), and other due to range of Products and Services(28%), followed by convenient location and timings(12%), other due to recommended by friends(8%),and convenient working hours(12%).

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Q3.

How did the customers find the working staff?

Working Staff Co-operative Un- Cooperative

No. of customers 42 8

84% customers find working staff of their bank as co-operative, whereas 16%find working staff of their bank as Un-cooperative.

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Q4.

In any case while making transactions in the bank did the customers face any

problem or difficulty?

Customers reply Fully aware Partial aware Dont Know

No. of customers 30 16 4

(60%) of customers know products and services that are provided by their bank, (32%) of customers partially know about the products and services by their bank & (8%) of customers dont know about products and services that are provided by their bank.

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Q5.

Does the Union bank provide Demat facility?

Opinion Yes No

No. of Customers 34 16

According to this figure many customers says that their bank provide Demat account facility (68%), on other hand (32%) customers says that their bank doesnt provide demat account facility.

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Q6.

Does the Union bank provide Internet/Online banking facilities?

Customer opinion Yes No

No. of customers 44 6

(88%) of customer says that their bank provide Internet/Online banking facility, whereas (12%) of customer says that their bank doesnt provide Internet/Online banking facility.

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Q7.

Do the customers rate the product and services of the Union bank wise?

Customer opinion Yes No

No. of customers 12 38

Only (24%) customers faced problems in their bank while making transactions, Whereas (76%) customers did not faced any problems in their bank while making any transactions.

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Q8.

Does the Union bank provide electronic fund transfer facility?

Customer Opinion YES NO Cant Say

No. of customers 32 12 6

(64%) Customers says that their banks provide Electronic Fund Transfer Facility, Whereas (24%) customer says that their bank doesnt provide this facility and (12%) customers dont know anything about it.

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Q9.

Did the Union bank provide Card based banking?

Customer opinion Yes No

No. of customers 44 6

(88%) customers say that their bank provides card based banking, on the other hand only (12%) says that their bank doesnt provide this facility.

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Q10. bank?

Are the customers satisfied with Products and facilities provided by the Union

Customer Opinion YES NO

No. Of Customer 42 8

42 says that they are satisfied with the product and services provided by their banks , on the other hand 8 customers says that they are not satisfied with the services of their bank.

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Q11. Did the customers had another account in any other bank(s)

Customer Opinion YES NO

No. of Customers 18 32

(64%) Customer says that they didnt have account in any other bank, whereas (36%) customers say that they have another account in another bank.

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Q12.

Who provided the customers information about the Union bank?

Sources of information Friends and relatives Advertisements Visit to bank Agents Others

No. of respondents 18 8 12 8 4

The main source of information for the customer is friends and relatives who are 18 respondents. The reason is that human tendency is that they tend to listen to there own near and dear ones.

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CHAPTER 7. FINDINGS

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FINDINGS As per my observations and findings Union Bank of India is better in comparison of other

banks like (ICICI Bank, State Bank Of India, HDFC Bank, Corporation Bank, Canara Bank except card banking popularity). Customers ratio of Businessman and Serviceman in Union Bank of India is slightly less.

Professional and other ratio is also less, but in other banks Businessman ratio is high in comparison of serviceman, professionals and others. In analysis Union Bank of India shows good performance in regard of service promptness

and range of products in comparison of other banks. In case of printed information, convenient location and schemes by Union Bank of India

shows unsatisfactory performance. Percentage of satisfied customers is low in other banks in comparison of satisfied

customers of Union Bank of India. Customers choose Union Bank of India for their banking needs because of its range of

products and services, convenient location and timings, salary account but customers choose another banks because they are approached by marketing executives and banks goodwill.

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Chapter 8. LIMITATIONS

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LIMITATIONS 1. Incase of Primary data, sometimes it was difficult to contact or meet the clients, because

of their work schedules and personal reasons. 2. The opinions of the clients could have been biased against some personal preferences and

which would have led to unjustified responses. 3. 4. Personally contacting the clients involved time and cost. It was difficult to find information that exactly fitted the needs of the project at hand in

case of secondary data or information is concerned. 5. Secondary data when collected was invaluable but due to passage of time and with many

dynamic changes taking place in the markets, the information losses its value in the current scenario. 6. 7. 8. 9. The study is based on limited sample size, which is restricted only to 50. Period of study is too short to draw generalizations. The study is organization specific. Large amount of Identity proof pose as a hindrance.

Data is reliable to a certain period only after that it becomes non reliable.

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Chapter 9. RECOMMENDATIONS

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RECOMMENDATIONS The bank needs to make a lot of marketing efforts. Level of recognition that may be desired by any bank has not been achieved by Union Bank of India. So they have to make efforts in there building Image. Promotional Strategies

1. Press Publicity: Paper Insert Leaflets Interest Card distribution Advertisements in News paper Personal Invitations

2. Outdoor Publicity: 3. Media: Local channel advertisements(Cable TV) Advertisements in news channel Banners in commercial areas Bus stand shelters Offsite ATMs for developing business

4. Face to Face: Personal Interactions Road shows Event sponsoring in Social gathering and Local clubs

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Some Other Recommendations Make a branch Self-Informative:

The branch should be decorative in a manner, which would provide maximum information to the customers without any difficulty. All the schemes and products, all the service charges, day and time of transaction should be printed in a beautiful manner and hanged on the walls of the branch where customers can see with ease. Solid network required to develop the business further:

For Union Bank of India to enjoy a good customer base they should make efforts towards developing more and more ATM in the city and extension counters to facilitate better and fast service. Bank should also try to increase the number of branches in and out of the cities and at convenient places of the customers. Union Bank of India was the first Private Bank to provide Home banking service. Need a change in Market focus:

The marketing team of the branch has until now focused on the selling of there most competitive product. The survey conducted proves that the fastest selling product is Saving Account among the consumers. So there is need to enhance the network of the bank (like ATMs, Branches and Services). Company need to emphasis on the advertisements and publicity. They need to invest only in fruitful ventures. Union Bank of India should increase the number of its branches. The numbers of

branches are very less in some areas especially in rural areas. Bank staff should provide information to the customers at the right time. The staff needs

to become more3 courteous to attract more customers.Union Bank of India must increase the number of ATM machine. There are some areas which do not have ATM machines.

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QUESTIONNAIRE
PART 1
Name: Age: Education:

PART 2
1. Your Occupation (a) Service (b) Businessman (c) Professional (d) Others 2. Your monthly Income (a) Above 5000 (b) 5000-10000 (c) 15000-20000 (d) More than 25000 3. You have which type of account in your bank (a) Saving account (b) Current account (c) Fixed deposit account (d) Demat account 4. What prompts you to choose this bank? (a) Salary account (b) Convenient location (c) Recommended by Friends and relatives (d) Range of product and services (e) Convenient working hours 5. Did you have another account in any other bank(s) (a) Yes (b) No If yes please mention the names of the bank (a) _____________________________________ (b) _____________________________________ (c) _____________________________________ 6. You have opened the account(s) in the above mentioned bank(s) because: (a) Convenient Working Hours/day (b) Better service and facilities (c) Approached by marketing executives (d) Advertisement (e) Goodwill 7. How did you find the working staff (a) Co-operative (b) Un-cooperative 8. In any case while making transactions in your bank did you face any problem or difficulty. (a) Yes (b) No If yes then please mention the problem _____________________________________ _____________________________________ _____________________________________

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9. Are you aware of product and services provided by your bank? (a) Fully aware (b) Partial aware (c) Dont know 10. Did your bank provide Demat facility? (a) Yes (b) No 11. Did your bank provide Internet/Online banking facilities? (a) Yes (b) No 12. How did you rate the product and services of your bank? (a) Good (b) Average (c) Worse 13. Did your bank provide Card based banking? (a) Yes (b) No 14. The card(s) provided by your bank have every where acceptability (a) Yes (b) No (c) Cant say 15. Did your bank provide electronic fund transfer facility? (a) Yes (b) No (c) Cant say 16. Are you satisfied with t Products and facilities provided by your bank (a) Yes (b) No 17. What are dissatisfying factors in your bank? (a) Staff courtesy (b) Location (c) Working hours (d) Service promptness 18. Who provided you information about this bank? (a) Friends and relatives (b) Advertisements (c) Visit to bank (d) Self (e) Agents (f) Others

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BIBLIOGRAPHY
BOOKS Sundharam and Varshney Banking Theory Law And Practices , Sultan Chand And Sons, New Delhi Indian Financial System and Commercial Banking, JAIIB Examination, Sri.K.M.Bhattacharya. BROCHURES Union Bank of India

WEBSITES www.unionbankofindia.com http://www.moneycontrol.com/news_html_files/news_attachment/2008/Union%20Bank%20 Company%20Report1.pdf

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