A

PROJECT ON
PRODUCT & SERVICES OF RETAIL BANKING PROVIDED BY
UNION BANK
SUBMITTED TO
THE UNIVERSITY OF MUMBAI
IN PARTIAL FULFILLMENT FOR THE AWARD OF
THE DEGREE OF BACHELOR OF COMMERCE
(BANKING AND INSURANCE)
SEMESTER V
(SEAT NO: 12015)

BY
KAVITA N CHAUHAN
THE S.I.A COLLEGE OF HIGHER EDUCATION
1

2014-2015

DECLARATION BY THE RESERCH STUDENT

I hereby declare that this project titled PRODUCT & SERVICES OF
RETAIL BANKING PROVIDED BY UNION BANK. Submitted by me is based
on actual work carried out by me under the guidance and supervision of MS.BABITA
NAGDEV.
Any reference to work done by any other person or institution or any material
obtained from other sources have been duly citied and reference.
It is in future to state that this work is not submitted anywhere else for any
examination.

S.I.A COLLEGE OF HIGHER EDUCATION

SIGNATURE OF STUDENT

(KAVITA N CHAUHAN)
2

ACKOWLEDGEMENT
I am thankful to Professor MS. BABITA NAGDEV for her valuable
guidance in successful completion of this project.
My overriding debt due to our Principal Dr. PADMAJA ARVIND and
librarian MRS.BHARATI RAO.
Last but not the least I cannot forget my friends and my parents whose
constant encouragement and support made this task a happy job.

SIGNATURE

KAVITA N.CHAUHAN
(THIRD YEAR BACHELOR OF COMMERCE)
(BANKING AND INSURANCE)

The SIA College Of Higher Education.

P88, MIDC Residential Area Dombivli Gymkhana Road,
Near BalajiMandir, Dombivli (East).421 203.
Email: sia.college@yahoo.com

CERTIFICATE
This is to certify that,
Ms. KAVITA N CHAUHAN
Student of BCOM (Banking and Insurance V) 2014-2015
Seat No.12015has successfully completed her Project
Work

PRODUCT & SERVICES OF RETAIL BANKING PROVIDED BY

UNION BANK

under the guidance of PROF. BABITA NAGDEVas

per Mumbai University syllabus.

COURSE CO-ORDINATOR

PROJECT GUIDE

EXTERNAL EXAMINER

PRINCIPAL

CHAPTER 1
INTRODUCTION

1.1 BACKGROUND OF THE STUDY

The present study is titled as PRODUCT & SERVICES OF RETAIL BANKING
PROVIDED BY UNION BANK The study is made with services reference to
PRODUCTS AND SERVICES OF RETAIL BANKING OFFERED BY THE UNION
BANK.

1.2STATEMENT OF THE PROBLEM

Which are the retail banking product & services of union bank.

1.3 OBJECTIVE OF THE STUDY

1. To study the retail banking product & services.
2 .To study the issues and challenges in retail banking .
3 .To estimate the future growth of Indian retail banking.
4. To understand the level of awarness of products and services of union bank
among the public.

CHAPTER 2
REVIEW OF LITERATURE

RETAIL BANKING
INTRODUCTION:Retail banking is, however, quite broad in nature - it refers to the dealing of
commercial banks with individual customers, both on liabilities and assets sides of
the balance sheet.
Fixed, current / savings accounts on the liabilities side; and mortgages, loans
(e.g., personal, housing, auto, and educational) on the assets side, are the more
important of the products offered by banks. Related ancillary services include
credit cards, or depository services. Retail banking refers to provision of banking
services to individuals and small business where the financial institutions are
dealing with large number of low value transactions.
This is in contrast to wholesale banking where the customers are large, often
multinational companies, governments and government enterprise, and the
financial institution deal in small numbers of high value transactions.
The concept is not new to banks but is now viewed as an important and
attractive market segment that offers opportunities for growth and profits. Retail
banking and retail lending are often used as synonyms but in fact, the later is just
the part of retail banking. In retail banking all the needs of individual customers
are taken care of in a well-integrated manner.

Todays retail banking sector is characterized by three basic

characteristics
Multiple products (deposits, credit cards, insurance, investments and
securities)
Multiple channels of distribution (call centre, branch, internet)

Multiple customer group (customer, small business and co-operative)

TEN ESSENTIAL STRATEGIES

Facilitate Integrated and Consistent Interactions Across All Channels.

Offer an Inviting Customer Front Door
Integrate Self-Service with Agent Assistance
Handle Calls More Intelligently
Initiate Proactive Contact

 Make More Effective Use of Customer Data and Segmentation

Use Inbound Marketing to Reach Customers Outside the Branch
Leverage Demographic Profiling to Establish Customer Intimacy
Create a Winning Team Effort with Contact Center Virtualization
Boost the Productivity of Your Agents through Interaction Blending

Facilitate Integrated and Consistent Interactions Across All

Channels
While customer reluctance to interact with banks on a broader basis makes
it challenging to pursue organic growth by increasing wallet share with existing
customers, theres still ample opportunity to achieve this goal by developing
deeper relationships with customers who engage with the contact center.

Offer an Inviting Customer Front Door

When customers use the call center channel, the Interactive Voice Response
(IVR) system provides the customers first impression of the bank. It also serves
as a guide to the banks services, and determines how well the bank can decrease
the volume of calls that agents must handle or reduce handling times.

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 Integrate Self-Service with Agent Assistance

Integrating self-service with agent assistance allows the customer to interact
with the bank in a convenient way while still receiving the same personalized
advisory service available in branches. As customers engage in online research and
transactions, they can be offered agent assistance to make their interaction go
more smoothly.

Handle Calls More Intelligently

Call center automation not only identifies customers, it indicates why they
are calling based on IVR input. With this knowledge, intelligent routing can be put
in place to determine whether the call should go to a self-service menu or to the
agent most qualified to handle the call. Intelligent handling includes routing based
on skills, making sure that each caller is matched to the representative with the
right skill set one who can speak the same language, answer questions about a
particular product or handle a specific type of inquiry concerning service, sales or
billing.

Initiate Proactive Contact

To achieve outstanding customer service, banks should consider proactive
approaches to their service delivery. For instance, banks can proactively notify
their customers based on predetermined preferences (such as email, phone, SMS
and so on). These notifications would augment banking service by helping
customers respond to certain conditions before they happen, so that the customer
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has the option to maximize an opportunity or minimize a negative impact to their

financial well being.

Make More Effective Use of Customer Data and Segmentation

Given that many banking products are commodities vulnerable to significant
price competition, some banks are abandoning their product-centric approaches
to selling. Instead, they are exploring cross-sell and up-sell strategies based on the
customer relationship. In this new paradigm, contact centers reach out to the
customer with product configurations, product bundles and prices designed
specifically to attract and meet the needs of individual customers.

Use Inbound Marketing to Reach Customers Outside the

Branch
As customers increasingly conduct business outside the branch, contextual
inbound marketing techniques based on a 360-degree view of the customer can be
used to make personalized retention and cross-sell offers when customers visit a
Web site, make a call or access an ATM.

Leverage Demographic Profiling to Establish Customer

Intimacy
Retail banks are armed with a wealth of demographic details that they can
leverage for cross-sell and up-sell opportunities, and theyve long used their
knowledge about customers to implement targeted marketing campaigns.
However, banks can do even more with their customer.
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 Create

Winning

Team

Effort

with

Contact

Center

Virtualization
Many banks are moving towards a virtual contact center to allow
geographically dispersed agents to operate as a single, winning team. Regardless
of location, agents can be called upon, as available, to ensure appropriate response
levels and to provide access to needed expertise.

Boost the Productivity of Your Agents through Interaction

Blending
Banks benefit from optimizing their agents time as much as possible. Call
blending allows agents to handle both inbound service calls and outbound sales
calls as call volume and skills permit, while task blending allows agents to offer
their assistance at different interaction channel.

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Advantages & Disadvantages Of Retail Banking

Advantages:Retail banking has inherent advantages outweighing certain disadvantages.
Advantages are analyzed from the resource angle and asset angle.

Resource Side:

Retail deposits are stable and constitute core deposits.

They are interest insensitive and less bargaining for additional interest.

They constitute low cost funds for the banks.

Effective customer relationship management with the retail customers built a

strong customer base.

Retail banking increases the subsidiary business of the banks.

ASSETS SIDE:

Retail banking results in better yield and improved bottom line for a bank.

Retail segment is a good avenue for funds deployment.

Consumer loans are presumed to be of lower risk and NPA perception.

Helps economic revival of the nation through increased production activity.

Improves lifestyle and fulfils aspirations of the people through affordable credit.

Innovative product development credit.

Retail banking involves minimum marketing efforts in a demand driven economy.

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DISADVANTAGES:

Designing own and new financial products is very costly and time consuming for
the bank.

Customers now-a-days prefer net banking to branch banking. The banks that are
slow in introducing technology-based products, are finding it difficult to retain the
customers who wish to opt for net banking.

Customers are attracted towards other financial products like mutual funds etc.

Though banks are investing heavily in technology, they are not able to exploit the
same to the full extent.

A major disadvantage is monitoring and follow up of huge volume of loan accounts

inducing banks to spend heavily in human resource department.

Long term loans like housing loan due to its long repayment term in the absence of
proper follow-up, can become NPAs.

The volume of amount borrowed by a single customer is very low as compared to

wholesale banking. This does not allow banks to to exploit the advantage of
earning huge profits from single customer as in case of wholesale banking.

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CHALLENGES TO RETAIL BANKING IN INDIA

The issue of money laundering is very important in retail banking. This compels
all the banks to consider seriously all the documents which they accept while
approving the loans.

The issue of outsourcing has become very important in recent past because
various core activities such as hardware and software maintenance, entire ATM
set up and operation (including cash, refilling) etc., are being outsourced by
Indian banks.

Banks are expected to take utmost care to retain the ongoing trust of the public.

Customer service should be at the end all in retail banking. Someone has rightly
said, It takes months to find a good customer but only seconds to lose one.

Thus, strategy of Knowing Your Customer (KYC) is important. So the banks are
required to adopt innovative strategies to meet customers needs and
requirements in terms of services/products etc.

The dependency on technology has brought IT departments additional

responsibilities and challenges in managing, maintaining and optimizing the
performance of retail banking networks. It is equally important that banks
should maintain security to the advance level to keep the faith of the customer.

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Union bank
HISTORY
United Bank of India was constituted under the Banking Companies
(Acquisition and Transfer of Undertakings) Act, 1970 on July 19, 1969. The Head
Office of the Bank was set up at 4 Clive Ghat Street (presently known as N. C. Dutta
Sarani, Kolkata 700 001 which was shifted to its present location at 11 Hemanta
Basu Sarani, Kolkata 700001 in 1972 for operational efficiency.
United Bank of India is one of the 14 banks which were nationalised on
July 19, 1969. On October 12, 1950, the name of Bengal Central Bank Limited
(established in 1918 as Bengal Central Loan Company Limited) was changed to
United Bank of India Limited for the purpose of amalgamation and on December 18,
1950, Comilla Banking Corporation Limited (established in 1914), the Camilla Union
Bank Limited (established in 1922), the Hooghly Bank (established 1932) stood
amalgamated with the Bank. Subsequently, other banks namely, Cuttack Bank
Limited, Tezpur Industrial Bank Limited, Hindusthan Mercantile Limited and
Narang Bank of India Limited were merged with the Bank.

17

A Glorious Past - A Brighter Future

Union Bank of India was established on 11th November 1919 with its
headquarters in the city of Bombay now known as Mumbai.
The Head Office building of the Bank in Mumbai was inaugurated by Mahatma
Gandhi, the Father of the nation in the year 1921, and he said on the occasion:
"We should have the ability to carry on a big bank, to manage efficiently crore
of rupees in the course of our national activities. Though we have not many banks
amongst us, it does not follow that we are not capable of efficiently managing crore
and tens of crore of rupees."
His prescient words anticipated the growth of the bank that has taken place in
the decades that followed. The Bank now operates through over 3500 branches
across the country. The Bank's core values of prudent management without
ignoring opportunities is reflected in the fact that the Bank has shown
uninterrupted profit during all 93 years of its operations.
Union Bank has been playing a very proactive role in the economic growth of
India and it extends credit for the requirements of different sectors of economy.
Industries, exports, trading, agriculture, infrastructure and the individual
segments are sectors in which the bank has deployed credit to spur economic
growth and to earn from a well diversified portfolio of assets.
Resources are mobilized through Current, Savings and Term Deposits and
through refinance and borrowings from abroad. The Bank has a large clientele
base of over 49 million.
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On the technology front the Bank has taken early initiatives and 100% of its
branches are computerized. The Bank has also introduced Core Banking Solution
with connectivity between branches. 100% of the business of the Bank is under
Core Banking Solution making it a leader among its peers in infusion of technology.
Many innovative products are developed using the technology platform to offer an
array of choices to customers, adding speed and convenienceto transactions.
Technology will also enable the Bank to derive substantial cost reduction while
creating the requisite capacity to handle the ever increasing volume of business in
a competitive environment that offers immense opportunities.
At the end of March 2013 the Bank achieved total business level of Rs.
4,75,673 crore (Rupees four lakh seventy five thousand six hundred seventy three
crore).
Behind all these achievements is a dedicated team of staff, which is
trulycosmopolitan in its composition. Many generations of members of staff have
contributed in building up the strong edifice of the Bank. The present team of over
31,000 members of staff distinguishes itself with its customer centricity,
willingness to learn and adherence to values enabling us to be recognized as a
caring organization where people enjoy their work and relationship with
customers.

19

Vision:
To become the bank of first choice in our chosen areas by building
beneficial and lasting relationships with customers through a process of
continuous improvement.

Mission:

To be a customer centric organization known for its differentiated customer

service

To offer a comprehensive range of products to meet all financial needs of

customers

To be a top creator of shareholder wealth through focus on profitable

growth

To be a young organization leveraging on technology & an experienced

workforce

To be the most trusted brand, admired by all stakeholders

To be a leader in the area of Financial Inclusion

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RETAIL BANKING PRODUCT

21

Personal Banking:Union Bank is in the forefront of providing innovative products and services
for the customer, with a wide range of Deposit Schemes, Retail Loans, Credit and
Debit/ATM cards, Insurance, Mutual Funds, Gold Coins, DMAT & ASBA, Tax
payments and Pension.
We also offer Alternate ways for you to bank with us [ATM /Internet Banking
/Mobile Banking etc], and the convenience of Online Payments for funds transfer /
bill payments / tax payments / donations.

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Saving account:-

ELIGIBILITY:
Any Resident Individual - Single Accounts, Two or more individuals in
Joint

Accounts, Illiterate-Persons, Visually Impaired

persons,

Purdanasheen

Ladies, Minors, Associations, Clubs, Societies, etc. Trusts, Institutions/Agencies

specifically permitted by the RBI.

SALIENT FEATURES :

Simplest deposit option available to the depositor.

An ideal option to cultivate the habit of banking and saving amongst the
younger generation.

Easy to operate. Terms and conditions kept lucid to facilitate a layman's

understanding

No hidden costs
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Zero balance facility. A Student can open Regular Saving Account with zero
balance Interest rate.

Interest rate:

4%

Current account:

Eligibility:
Any Resident Individual - Single Accounts, Two or more individuals - Joint
Accounts, Sole Proprietary Concerns, Partnership Firms, Illiterate Persons,
Visually impaired Persons, Minors(account to be operated by Guardian), Limited
Companies, Associations, Clubs, Societies, etc.
Trusts, Joint Hindu families (accounts of non-trading nature only),
Municipalities, Government and Quasi-Government Bodies, Panchayats

Religious Institutions
24

Educational Institutions (including Universities)

Charitable Institutions

Other Benefits:

Overdraft facility

Transfer of accounts between our wide network of branches without

any charge

Nomination Facility - Available.

Low minimum balance requirements

Internet Banking facility is available.

Fixed deposits:-

ELIGIBILITY:Any Resident Individual - Single Accounts, Two or more individuals

25

in Joint Accounts, Illiterate Persons, Blind persons, Purdanasheen Ladies,

Minors, Associations, Clubs, Societies, etc. Trusts, Institutions/Agencies
specifically permitted by the RBI eligible to open a ""Fixed Deposit
Receipt" Account" in single/joint name/s.

Minimum amount:Rs.10,000/- for FDR in Metro and Urban Branches and Rs.5,000/- in Rural
and Semi urban branches, and for senior citizens the minimum amount
will be Rs. 5000/Minimum Amount criteria will not be applicable to Subsidy kept under
GOVT Sponsored Schemes, Margin Money, earnest money and court
attached/ordered deposits

Rate of Interest :Rate of interest differs from depending upon tenure of the
deposits and as and when the Bank changes the Rate.
Senior citizens are offered additional interest of 0.50 % for
deposits placed for 1 year and above period.

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Recurring deposit account (Cumulative Deposit Scheme):-

Cumulative Deposit Scheme:Union Cumulative Deposit Scheme is mainly aimed at lower / lower
middle / middle / upper middle and salaried sector. It mainly encourages
small investors to save in easy monthly installments over a fixed period
of time.

ELIGIBILITY:Any Resident Individual - Single Accounts, Two or more individuals in

Joint Accounts, Illiterate Persons, visually impaired persons, Purdanasheen
Ladies,

Minors,

Associations,

Clubs,

Societies,

etc.

Trusts,

Institutions/Agencies specifically permitted by the RBI eligible to open a

27

"Cumulative Account" in single/joint name/s.

SALIENT FEATURES :

Monthly installments can be for any amount starting from as low as

Rs.50/- onwards

An account can be opened for any period ranging from 6 months to 120
months, in intervals of 3 months

The installment amount selected at the start of the scheme will be

payable every month

Interest at the permissible rate is compounded every quarter

The maturity amount will be paid one month after the deposit of the last
installment (latest table giving maturity values available with the
branch)

A pass book will be provided to the depositor

Cumulative Deposit accounts are exempted from TDS

Interest rate:- 9%

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Retail Loans:
Union Bank of India is in the forefront of providing assistance to customers in
fulfilling their dreams. The Bank provides funds to our customers through Retail
Loans for their personal needs such as home purchases, home repair, automobile
purchases, pursuing education, medical care, and other consumer uses.
The process is designed to make it as convenient as possible for the customer
to obtain a loan of his choice through a wide network of branches across the
country. The repayment terms are user friendly and the interest rates are very
competitive.

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Home loan:-

PURPOSE:

Purchase/ construction of house/ flat

Purchase of plot and construction of house thereon**

Repairs/ improvements/ extension of the existing residential property.

ELIGIBILITY:

Indian citizen above 21 years

Individual, either singly or jointly with other family members viz. father,
mother, son and/or spouse, who have regular sources of income as coapplicants.

NRIs are also eligible for the home loan. Contact our nearest branch for
further details.

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UNION HOME / UNION AWAS / UNION PARADISE

FLOATING RATE (For upto 30 years) :Loan Amount Rate of Interest:Up to ` 500 Lakh Base Rate % = 10.25%
Above ` 500 Lakh (Base Rate + 0.75) % = 11.00%

FIXED RATE (For maximum 5 years):Loan Amount Rate of Interest:Up to ` 30 Lakh = 12.00%
> ` 30 Lakh to ` 50 Lakh = 13.00%
> ` 50 Lakh to ` 200 Lakh = 13.25%

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Vehical loan:

UNION MILES :PURPOSE:Now you can fulfill your dreams of owing a vehicle by availing Union
Miles. You can avail this special scheme to purchase of new or old (up to 3
years) four-wheeler, and you can also avail this loan to purchase a
new two-wheeler.

ELIGIBILITY:A person has to meet the following criteria to avail the loan:

Indian citizen aged 18 years and above holding valid license

Individual, either singly or jointly with spouse.

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QUANTUM OF LOAN:-

Maximum quantum of
loan
New 4-wheeler
Old

4-wheelers

Rs. 75 Lakh
(not

Rs. 10 Lakh

older than 3 years)

New 2-wheeler

Rs. 10 Lakh

Rate of Interest:New 4-wheeler= 10.70% (fixed)

New 2-wheeler = 15.00% (fixed)
Old 4-wheeler (not older than 3 years) = 15.50% (fixed)

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Education loan:-

PURPOSE:

Basic education

To pursue graduation / higher education

To pursue technical / professional / management

courses.

ELIGIBILITY:

Indian citizen

Secured admission to the concerned institute in India or abroad through

appropriate selection process and cleared the qualifying examination, if any

Courses covered in India

o

Graduation / post-graduation / diploma courses from recongnized

universities

Technical / professional / management courses

Courses covered outside India

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Graduation / post-graduation degrees offered by recongnized

universities

Certified degree courses conducted by CIMA, London, CPA, USA and

other such institutes

Diploma courses are not covered under Union Education.

QUANTUM OF LOAN:

For studies in India - maximum upto Rs. 10 Lakhs. The quantum of

loan is higher for the institutes covered under Special Education
Loan schemes. Please check the Special Offers Tab above for
further details.

For studies outside India- maximum Up to Rs. 20 Lakhs.

Rate of interest:-

For male student :

For girl student

Up to ` 7.50 Lakh = 12.50%

12.00% (fixed)

(fixed)
Above ` 7.50 Lakh = 12.25%

11.75% (fixed)

(fixed)

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Personal loan:

PURPOSE:There are many among us who might be facing difficulty in

purchasing goods by paying a lumpsum amount. But we would be
comfortable

paying

small

installments on

monthly

basis.

The Union Personal loan plays an important role here. It helps you avail
loans to meet personal expenses such as purchaseof consumer durable,
etc.

ELIGIBILITY:To avail "Union Personal" you need to meet the following criteria:
1. Should be from the salaried class, having regular source of income and
having salary account with our bank.

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2. The applicant has reasonable residual service to ensure that the entire loan
is repaid one year prior to retirement.

QUANTUM OF LOAN:

Up to Rs. 5 Lakh

Rate of Interest :- 15.00% (fixed)

RETAIL BANKING SERVICES

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Online payment:-

At Union Bank of India, we value your time and we make every effort to
ensure that you say goodbye to paper work and long queues. Apart from making
normal remittances and fund transfers, now you can also make your utility bill
payments and tax payments, as well as book tickets and pay for a variety of other
online services.

Tax payment online:Union eTax payment platform is the simplest way to make your tax payments.
It enables you to make direct and indirect tax payments at your doorstep.

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1. Features & Benefits:

Instant online tax payments,

Available 24x7

Tax payment demos for users.

2. Eligibility;This facility is available to all Internet banking users with transaction facility.

3. How to apply:This facility is available by default for available to all transaction enabled e
banking users.

4.Service Charges:This facility is available absolutely free of charge.

ATM:

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As a Union Bank ATM card holder, you can perform banking

transactions round the clock. Additionally, Union Bank ATMs accept all VISA
and MasterCard and RuPay Debit Cards.

Union Bank ATMs allowsUnion Bank Debit Card holders to perform

the following:-

Cash Withdrawal

Balance Enquiry

Mini Statement

Change of PIN

Transfer of funds to other Union Bank accounts linked to the card

Registration for mobile banking

Payment of utility bills

Request Cheque books

Pay Taxes, and many more.

Other bank card holders can also withdraw cash up to Rs. 10,000 per day and
check their account balance at Union Bank ATMs.

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Internet banking:-

Union Bank of India offers its customers the facility of Internet Banking
service.
With our Internet Banking service you can carry out banking activities
from the comfort of your home /office with only your mouse. Using your
Internet Banking ID and password, you can view your Union Bank accounts
/do transactionson line 24x7 without any hassle. You can transfer funds
online to accounts maintained with any bank in India. You can also access all
your Union Bank accounts from all around the world 24x7.

Features & Benefits:

Account/s transaction details

Viewing/Printing of account statement

Transfer of funds in own/third party accounts with our Bank

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Transfer of funds to other bank accounts in India through

NEFT/RTGS/IMPS

Direct/ Indirect tax payments

Utility bill payments like electricity bills, telephone bills, insurance

premium payments, mutual fund payments, credit card payments etc.

Service Charges:

Absolutely free of charge for users creating passwords through the Self User
Creation & Reset Password modules.

Mobile banking:-

UMOBILE- a milestone in banking field- Provides the customers a

secure andconvenient means of banking and commerce from anywhere

42

anytime. Customers can check their account balances, take a mini- statement,
transfer money to Union Bank accounts, other banks, , make bill payments, do
airline /movie ticketing, make temple donation, fee payments, stop cheques,
know cheque status, know branch/ATM locations and even request bank for
cheque books, a/c statements or new accounts, all this on press of button on
mobile. The services are available both on SMS and GPRS. UMobile is a
secured payment channel since the customer does not compromise with
information like the debit card number or pin. So what are you waiting for!
Explore UMobile and also refer it to your friends.

FEATURES & BENEFITS:UMobile you a host of services on a secured application as shown under :
UMobile service currently has the following features:

Balance Enquiry

Mini Statement (last nine transactions)

Fund Transfer

Within the bank

o

Mobile

to

Mobile

between

two

registered

customers)
o

Mobile to Account ( to any account in Union Bank)

To Other banks (using NEFT platform)

To Other banks (using IMPS platform)

Bill Payments
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Airline Ticketing

Movie Ticketing

Credit card:

Introduction to Union Bank VISA International Credit Card

Union Bank VISA International Credit Card offers you a hassle free and
secured shoppingexperience at an assortment of outlets and websites around
the globe. The card can also be used for cash withdrawals at ATM centres.

FEATURES of Union Bank VISA International Credit Card:1. Photo Signature VISA Card is issued in three variants i.e Gold, Silver and
Classic and Platinum is issued without Photo.
2. There is no joining fee and annual/renewal charges.
3. Attractive spending limit is 20% of the annual gross salary).
44

4. Lowest interest rates and free credit period up to 50 days.

5. Flexi payment option.
6. Online Bill payment facility through internet banking account.
7. Attractive reward points and redemption program.
8. Full refund of fuel surcharge*.
9. SMS based OTP for all domestic online transactions.
10. Secured transactions - SMS alerts on all transactions and VbV registration
for online transactions.

Debit card:

Introduction to Union Bank International Debit Card:Union Bank International Debit Card is unique in the sense that
it allows its users to withdraw cash from around 1.20 lakhs ATMs in the
45

country and over 1 million ATMs across the globe. Debit Cards can also be used
to make purchases at all merchant locations and online websites
that accept VISA/ Master/ RuPay.

Features of Union Bank International Debit Card:

Multiple Account Access- Customer can access up to three accounts

linked to a single card

Add-on-Cards are issued in case of Joint Accounts

Secured online transactions are available through VbV registration

Cash withdrawals are possible at specified merchant locations

Free Insurance is available against accidental death, i.e., Rs. 2 lakh for
principal card holders and Rs. 1 lakh for Add-on cardholder

Facilities such as 24 hour hot-listing facility are available

Lost card liability is restricted to Rs.1,000 from the time of reporting loss

Gift card:

46

INTRODUCTION TO THE UNION BANK GIFT CARDS

Next time you come across the dilemma of what to gift your dear ones,
then don't forget to get hold of the Union Bank Gift Card. Union Bank Gift cards
give the recipients the flexibility to make purchases of their choice at
their favorite store.

FEATURES AND BENEFITS OF UNION BANK GIFT CARDS:

FLEXIBILITY: Recipients can use the Union Bank Gift Card at a wide
variety of locations accepting Visa Cards, including restaurants and
entertainment venues.

CONVENIENCE: Recipients can choose where they want to use the card.
Person who is giving gift doesn't have to go from store to store looking for
the right gift.

SECURITY: A Gift Card eliminates worries of losing a paper gift

certificate, check or cash.

CHARGES AND FEES:

Gift Card can be obtained for any amount between Rs.500 and Rs. 50, 000, and
can be used in India before the expiry date embossed on the card.

It cannot be used to withdraw cash at ATMs.

Each Gift Card is issued at a price of Rs. 50/- each.

Redemption or renewal after Expiry Period - Rs. 100/.

47

Other services- multi city cheque book:

Multi City Cheque Book:Bank issues Personalised Cheque book to all its customers which
are payable at par at all branches of the Bank in India, called as Multi City Cheque.
With the Multi City Cheque Book, you can withdraw funds by yourself as well
as makepayment to people in cities other than at city/town where you maintain an
account.

Benefits:

Withdraw cash from any of our branches across India upto Rs. 1.00 lac per
day.

No need to purchase demand draft thereby savings in time and cost.

Your business associates across India can receive immediate payment

through local clearing, thereby saving collection charges. If they maintain an
account with us, they will receive instant credit.

Payment of your utility bills i.e. for electricity, telephone, maintenance etc.
for an office / home at an outstation centre can be made through Multi City
Cheque.

48

Demat account:-

Union Bank of India now offers you the power of the value-added, service-oriented
Demat account - Union Demat. Union Bank is a 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.
DEMAT ACTIVITY INCLUDES:
1 .Opening and maintaining of Demat Accounts Dematerialization
2. Rematerialisation
3 . Purchases
4. Sales
5 .Pledging and unpledging
6 .Safe custody.

49

Call centre;

Union Bank of India has, through the Call Centre, introduced still another
uninterrupted 24x7x365 banking service to its customers. The Bank is now just a
call away from the public in general and its customers in particular, for their
banking needs.
The Call Centre ,being one of the delivery channels, will offer banking facilities
through Interactive Voice Response (IVR) as well as through a human interface.
Calls can be taken by the IVR in 7 Regional laungages (Malayalam, Marathi,
Gujarathi, Bengali, Kannada, Tamil, Telugu) besides Hindi and English. The IVR will
provide certain banking services e.g. Account Information, Current Balance, last
five transactions etc to those customers who have registered with a PIN, without
requiring them to speak to an agent. Please note that the erstwhile Telebanking
facility named Union Dial has now been merged into the IVR system.
50

At any point of time the caller can switch to an agent for information on retail
deposit and retail asset products described in general terms below.

Retail Deposits:

Demand Drafts

Statement of account

Cheque book

Stop Payment requests and revoking Stop Payment requests.

Retail Lending:

Application for retail loan products

Loan statement of account

Interest Certificates

Mutual Fund Overview:-

Advantages of Investing into a Mutual Fund:Mutual funds are popular because they offer the ability to easily invest in

51

increasingly more complicated financial markets. A large part of the success of

mutual funds is also the advantages they offer in terms of diversification,
professional management and liquidity.

Flexibility - Mutual Fund investments offer lot of flexibility with features

such as systematic investment plans, systematic withdrawal plans, and
dividend reinvestment.

Affordability - They are available in units which make it very affordable.

Because of the large corpus, even a small investor can benefit from its
investment strategy.

Liquidity - In open-ended schemes, you have the option of withdrawing

or redeeming your money at any point of time at the current NAV.

Diversification - Risk is lowered with Mutual Funds as they invest across

different industries & stocks.

Professional Management - Expert Fund Managers of the Mutual Fund

analyse all options based on experience & research.

Potential of return -The fund managers who take care of your Mutual
Fund have access to information and statistics from leading economists
and analysts around the world. Because of this, they are in a better
position than individual investors to identify opportunities for your
investments to flourish.

Low Costs - The benefits of scale in brokerage, custodial and other fees
translate into lower costs for investors.

Regulated for investor protection - The Mutual Funds sector is regulated to

safeguard the investor's interests

52

Articles :Over Rs 3,350-cr worth NPAs with Union Bank of India

PTI Jul 28, 2014,
NEW DELHI: Union Bank of India has Non- Performing Assets (NPAs) worth
about Rs 3,350 crore from 20 defaulters. Replying to an RTI query, the bank,
however, declined to share the names of the defaulters citing "commercial
confidence"."List of the borrowers cannot be provided as they are of commercial
confidence and exempted from disclosure under Section 8(1)(d) of the RTI Act.
The Section bars making public of information related to commercial
confidence, trade secrets or intellectual property, the disclosure of which would
harm the competitive position of a third party. Exercising his Right to Information,
Venkatesh Nayak had sought details of the top 20 borrowers responsible for NPA
from five banks, including Union Bank of India.

Union Bank certain on IPO

Jun 15, 2002
NEW DELHI: Union Bank of India has decided to come out with an IPO for Rs
300 crore within three months. The pricing is likely to be in the range of Rs 5 to Rs
10 per share.
The success of Punjab National Bank's IPO has prompted the bank to go for a
share offering.

53

Union Bank declares dividend

Feb 4, 2005,
MUMBAI: Union Bank of India has declared a 20 per cent interim dividend for
the current fiscal ending March, 2005.
The board on Friday approved the proposal for interim dividend of Rs 2 per
share of Rs 10 each for the current fiscal, the state-owned bank informed the
Bombay Stock Exchange.

Arun Tiwari is new chairman of Union Bank of India

Dec 28, 2013,
MUMBAI: Public sector lender Union Bank of India today said Arun
Tiwari assumed charge as its new chairman & managing director.
Tiwari, who has over 30 years of experience, started his banking career
with Bank of Baroda and was an executive director at Allahabad Bank prior to his
new job.

Like Union Bank: Devang Visaria

Oct 22, 2010,
Devang Visaria, Chief Strategist, devangvisaria.com, in a chat with ET Now talks
about Union Bank.
What is your view on Union Bank?
We like Union Bank at this level. In fact Union Bank has today just made a
fresh 52-week high. So a lot of upside is still left in this one. Possibly with a 2.5%
stop loss closer to 395 or so, you could have a good long position on Union Bank.
We are looking for targets of 445-450 on the upside.

54

Fraud at Union Bank: 3 sentenced to 3 yrs R-I

Pune | July 21, 2014
City businessmen LR Bhojwani and Sanjay Bhojwani of Bhojwani Hotels Private
Limited have been sentenced to three years rigorous imprisonment by a special
judge in Bangalore in a 13-year-old case of financial embezzlement.
Former chief manager of a Bangalore branch of Union Bank of India has also
been sentenced to three years of RI in the same case.
Bhojwani group owned two landmark city hotels Holiday Inn and Hotel Amir
which were later auctioned by Debt Recovery Tribunal (DRT) in 2003 after the
group failed to repay a loan and interest amounting to Rs 42 crore to Indusbank.

55

CHAPTER 3
RESEARCH METHODOLOGY

56

INTRODUTION
The purpose of the methodology is to describe the research procedure. This
includes overall research design, the sampling procedure, the data collection
method , and the analysis procedure and method.
In this study of product and services of retail banking . descriptive type of
research has been done for collecting the primary data. It includes surveys and fact
finding enquiries of different kind. The major purpose of descriptive research is
description of the state of affair as it exists at present. Moreover the researcher has
no control over the veriables under study ; he can only report what is happening
or what has happened.

METHODOLOGY
Study design:
Primary data , which has been collected by interview and questionnaire
method. The primary data was collected through the personal interview of the
manager of UNION BANK (Dombivli Branch). The sample size of 20 respondents
has been selected. Random sampling method is followed.
For secondary data collection method the help of various reference book
have been taken which are mentioned in bibliography and also by way of surfing
through the company website. The secondary data was collected through websites,
brochures and handbook of the company.
57

CHAPTER4
DATA ANALYSIS AND INTERPRETATION

58

Union Bank of India was established on 11th November 1919 with its
headquarters in the city of Bombay now known as Mumbai.
His prescient words anticipated the growth of the bank that has taken place in the
decades that followed. The Bank now operates through over 3500 branches across
the country.

Interview of the manager of Union Bank

Name of the Manager:AMAR BACHRANI
Branch:Dombivli (West)

1. Can one access all accounts across different branches under one
login?
Ans -: Yes. One can access all the 22 accounts maintained in CBS Branches under
one login provided all the accounts are linked to the same customer number. All
your accounts will be seen on a single page.

2.- What are the different channels through which one can access
Savings Account?
Ans- one can access your Savings Account through:

Branch Banking

ATM Banking

Net Banking

Phone Banking

59

3. How to approach Union Bank of India for a home loan?

Ans- You can approach us in any of the following ways

You can visit any of our special retail lending branches called Union Loan
Points (ULPs). To locate a ULP, You can visit any of our braches. To locate a
branch.

Request for a contact online

You can also contact our 24 x 7 Call Centre

4.- What are the tax benefits available on education loan?

Ans- Tax benefits can be claimed on the interest component of the education loan
as per the Income Tax Act, 1961. An amount equal to the interest amount paid can
be claimed for deduction under section 80E.

5. Specify the features of Union eBanking ?

Ans- With Union eBanking, you can do the following :
1. View details of all your accounts with the Bank ( deposit , loan , demat )
2. Transaction
a. Transfer funds between your own Union Bank of India accounts, with
any other Union Bank of India account or any other Bank in India
participating in the NEFT & RTGS and IMPS network.
b. Place a stop payment on your cheque(s)
c. Order a demand draft
d. Pay utility Bills
e. Pay your taxes

60

SURVEY FROM GENERAL PUBLIC

1 . Which bank you prefer for retail banking?

NAME OF THE BANK

PERCENTAGE OF
RESPONDENTS

HDFC

25%

ICICI

30%

UNION BANK

25%

SBI

20%

RETAIL BANKING
20

25
HDFC
ICICI
UNION BANK
SBI

25
30

INTERPERTATION:By a survey of 20 people it is seem that 25% of respondents prefer HDFC,

30% of respondents prefer ICICI, 25% of respondents prefer UNION BANK and
remaining 20% prefer SBI.
61

2 . Which retail loan you preferred most?

RETAIL LOAN

PERCENTAGE OF
RESPONDENTS

HOME LOAN

40%

EDUCATION LOAN

25%

VEHICLE LOAN

15%

PERSONAL LOAN

20%

RETAIL LOANS
45
40
35
30

HOME LOAN

25
20

EDUCATION LOAN

15

VEHICLE LOAN

10

PERSONAL LOAN

5
0
HOME LOAN

EDUCATION VEHICLE LOAN

LOAN

PERSONAL
LOAN

INTREPRETATION:
As per the survey we come to know that 40% respondents apply for
home loan, 25% respondents apply for education loan, 15% respondents apply
for vehicle loan and remaining 20% apply for personal loan .

62

3 . Are you satisfied with the services provided by union bank?

PERCENTAGE OF
RESPONDENTS
YES

85%

NO

15%

NO. OF SATISIED PEOPLE

90
80
70

YES
NO

60
50
40
30
20
10
0
YES

NO

INTREPRETATION
From the above diagram we can conclude that 85% respondent are satisfied
with the services provided by UNION BANK and 15% respondents are not satisfied
with the service provided by UNION BANK.

63

4. Which services you preferred most?

SERVICES

PERCENTAGE OF
RESPONDENTS

ATM

50%

ON-LINE BANKING

15%

INTERNET BANKING

25%

MOBLIE BANKING

10%

SERVICES
10
25

ATM

50

ON-LINE BANKING
INTERNET BANKING
15

MOBLE BANKING

INTREPRETATION:
From the analysis it is to be concluded that 50% of respondents prefer ATM, 15%
respondents prefer ON-LINE BANKING, 25% respondents prefer INTERNET
BANKING, and the remaining 10% respondents prefer MOBILE BANKING.

64

5 . How the employees of bank treat their customer?

TREATED MANNER

PERCENTAGE OF
RESPONDENTS

GOOD

35%

BETTER

40%

BEST

25%

TREATED MANNER

25
GOOD

35

BETTER
BEST

40

INTREPRETATION:
We can observe that 35% respondents feel that they are treated good, whereas
40% respondents feel that they are treated better and remaining 25%
respondents feel that they are treated best.

65

6 Are you using all retail banking product and services of union
bank?
FREQUENCY
Yes

25

No

75

NO. OF CUSTOMER USING ALL BANKING

PRODUCT & SERVICES
80
70
60

YES
NO

50
40
30
20
10
0
YES

NO

INTREPRETATION:
Majority of the people are not using all the retail banking products and services i.e.
75% are saying no whereas 25% saying yes

66

7 The e-banking of union bank are save and secured to you?

FREQUENCY
Yes

80

No

20

E-BANKING SAVE AND SECURED

20

YES
NO
80

INTREPRETATION:
The public believe that union bank are safe and secured in relation to e-banking
i.e.80% people feel safe and secured and remaining 20% feel they are not secured.

67

8 Do you think that the union bank can merged with another bank?
FREQUENCY
Yes

65

No

35

MERGED WITH ANOTHER BANK

70
60
50

YES

40

NO

30
20
10
0
YES

NO

INTREPRETATION:
From the above mentioned graph we can observe that 65% people think that the
union bank can merged with another bank, whereas 35% people think that no
merge can be taken place.

68

Now a days the NPA of many banks should be increases so you

are sacred about your deposits?

FREQUENCY
Yes

55

No

45

NPA SECURED LEVEL

60
50
YES
NO

40
30
20
10
0
YES

NO

INTREPRETATION:
55% people are scared about their deposits because they are not sure about NPA
safety whereas 45% people are sure about their NPA safety.

69

10 Can you suggest union bank for retail banking to your friend
and family member?
FREQUENCY
Yes

90

No

10

SUGGEST

10

YES
NO

90

INTREPRETATION:
From the analysis it is to be concluded that 90% people can suggest to their
friends and family members for retail banking and the remaining 10% do not
suggest to anybody.

70

CHAPTER 5
CONCLUSION

71

Retail banking has a great scope in India due to increase in consumerism,

purchasing power of customers. E-banking, phone, ATM, have become necessity,
and are no more factor of differentiation in urban and semi urban cities. Union
bank can adopt strategies to woo the customer and survive in competition.
However, through the power of todays advanced text analytics solutions, retail
banking leaders can now conduct deep analytics and use those insights to drive
key business decisions, deliver proactive service, and formulate competitive
business strategies. The key to unlocking this wealth of information lies in a deep
understanding of languagethe ability to accurately pull out sentiment, key
issues, and relationshipsand in the ability to express those insights in easy-touse business oriented applications. This report is just a small glimpse into the kind
of analytics and engagement capabilities that banks can achieve.

72

BIBLIOGRAPHY & WEBLIOGRAPHY

Bibliography

News Paper: TIMES OF INDIA

ECONOMIC TIMES

Websites:www.finacialexpress.com
www.economywatch.com
www.unionbank.com

73

ANNEXURE

Questionnaire For Bank Visit

Name of the Bank:-UNION BANK

Branch:-DOMBIVLI(WEST)

Address:-

Name of the Manager:-AMAR BACHRANI

1. Can I access all my accounts across different branches under one

login?

74

2.- What are the different channels through which I can access my
Savings Account?

3. How do I approach Union Bank of India for a home loan?

4.- What are the tax benefits I get from my education loan?

5. What can I do with Union E-Banking ?

75

Questionnaire from General Public

1 Which bank you prefer for retail banking?

Which retail loan you preferred most?

3 Are you satisfied with the services provided by union bank?

4 Which services you preferred most?

76

5 The staff member of union bank treated in which manner with

you?

6 Are you using all retail banking product and services of union
bank?

7 The e-banking of union bank are save and secured to you?

8 Do you think that the union bank can merged with another bank?

77

Now a days the NPA of many banks should be increases so you

are sacred about your deposits?

10 Can you suggest union bank for retail banking to your friend
and family member?

Signature

78