A PROJECT REPORT ON

UNION BANK OF INDIA

To the partial fulfillment for the degree of
MASTER OF BUSINESS ADMINISTRATION
Under the guidance of

MR. AAKASH CHOUDHARY

SUBMITTED BY

RUKHSAR MAKRANI
Semester: - MBA IST Semester

2016-2017
 PREFACE

Preparing a project of this nature is an arduous task and I was

fortunate enough to get support from a large number o persons. I
wish to express my deep sense of gratitude to all those who
generously helped in successful completion of this report by sharing
their invaluable time and knowledge.

It is my proud and previledge to express my deep regards to

Respected HOD DR.. ASHFAQ SIDDIQUI, Head of Department
Department of Business Management , Infinity Management and
Engineering Collage Sagar for allowing me to undertake this
project.

I feel extremely exhilarated to have completed this project

under the able and inspiring guidance of MR. AAKASH CHOUDHARY

he rendered me all possible help me guidance while reviewing the

manuscript in finalising the report.

I also extend my deep regards to my teachers , family

members , friends and all those whose encouragement has infused
courage in me to complete to work successfully.

RUKHSAR MAKRANI
MBA IST SEM.

2
 ACKNOWLEDGEMENT
Preparing a project of this nature is an arduous task and I was fortunate
enough to get support from a large number o persons. I wish to express my deep
sense of gratitude to all those who generously helped in successful completion of
this report by sharing their invaluable time and knowledge.

It is my proud and previledge to express my deep regards to Respected ,

Head of Department DR.. ASHFAQ SIDDIQUI , Department of Business

Management , Infinity Management and Engineering Collage Sagar

for allowing me to undertake this project.

I feel extremely exhilarated to have completed this project under the able

and inspiring guidance of MR. AAKASH CHOUDHARY He rendered me all

possible help me guidance while reviewing the manuscript in finalising the report.

I also extend my deep regards to my teachers , family members , friends

and all those whose encouragement has infused courage in me to complete to
work successfully.

RUKHSAR MAKRANI
MBA IST SEM.

3
 DELCLARATION BY THE CANDIDATE
Date :

I declare that the project report titled " THE PROJECT REPORT ON CENTRAL

BANK OF INDIA " is nay own work conducted under the supervision of

MR. AAKASH CHOUDHARY Department of Business Management , Infinity

Management and Engineering Collage Sagar To the best of my knowledge

the report does not contain any work , which has been submitted for the award of any

degree , anywhere.

RUKHSAR MAKRANI
MBA IST SEM.

4
 CERTIFICATE

The project report titled " THE PROJECT REPORT CENTRAL

BANK OF INDIA " been prepared by RUKHSAR MAKRANI MBA IST

SEM., under the guidance and supervision of MR. AAKASH

CHOUDHARY , for the partial fulfillment of the Degree of MBA.

Signature of the Signature of the Signature of the

Supervisor Head of the Department Examiner

TABLE OF CONTENTS
TOPIC NAME PAGE NO.

 Preface

 Acknowledgement

5
  Certificate

 Declaration by the Candidate

CHAPTER – 1 INTRODUCTION

(A) COMPANY PROFILE

(B) HISTORY

(C) KEY PERONS

CHAPTER – 2 OBJECTIVE

CHAPTER – 3 RESEARCH METHODOLOGY

(A) TYPE OF RESEARCH

(B) SOURCE OF RESEARCH

CHAPTER – 4 PRODUCT & SERVICE DETAILS

CHAPTER – 5 MARKETING MIX 4 PS

CHAPTER – 6 DATA ANALYSIS AND INTERPRETATION

CHAPTER – 7 SWOT ANALYSIS

CHAPTER – 8 LIMITATION

CHAPTER – 9 SUGGESTION AND CONCLUSION

CHAPTER – 10 BIBLIOGRAPHY

6
UNION BANK OF INDIA

7
 TABLE OF CONTENTS
 Preface
 Acknowledgement
 Certificate
 Declaration by the Candidate
TOPIC NAME PAGE NO.
CHAPTER – 1 INTRODUCTION

(A) COMPANY PROFILE

(B) HISTORY

(C) KEY PERONS

CHAPTER – 2 OBJECTIVE

CHAPTER – 3 RESEARCH METHODOLOGY

(A) TYPE OF RESEARCH

(B) SOURCE OF RESEARCH

CHAPTER – 4 PRODUCT & SERVICE DETAILS

CHAPTER – 5 WORKING CAPITAL MANAGEMENT

CHAPTER – 6 DATA ANALYSIS AND INTERPRETATION

CHAPTER – 7 SWOT ANALYSIS

CHAPTER – 8 LIMITATION

CHAPTER – 9 SUGGESTION AND CONCLUSION

CHAPTER – 10 BIBLIOGRAPHY

CHAPTER – 11 QUESTIONNAIRE

8
 INTRODUCTION

The dawn of twentieth century witnesses the birth of a banking enterprise par excellence-
UNION 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. The Union
Bank of India, reiterates the objective of their 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 amongst 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 lives 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.

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
9
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
value-added services like Cash Management Service, Insurance, Mutual Funds and Demat.

The Bank will ever strive in its Endeavour to provide services to its customer and enhance its
businesses thereby fulfilling its vision of becoming

The Vision Statement

To become the bank of first choice in our chosen area by building beneficial and lasting
relationship with the customers through a process of continuous process.

The Mission Statement

 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 share 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

10
 COMPANY PROFILE
The dawn of twentieth century witnesses the birth of a banking enterprise par excellence-
UNION 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. The Union
Bank of India, reiterates the objective of their 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 amongst 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 lives 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.

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
11
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
value-added services like Cash Management Service, Insurance, Mutual Funds and Demat.

The Bank will ever strive in its Endeavour 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”.

BOARD OF DIRECTORS

SHRI M.V.NAIR
Chairman & Managing Director 

12
SHRI T.Y. PRABHU
Executive Director

SHRI S.Raman
Executive Director Government of India Nominee

SHRI K.V. EAPEN

Government of India nominee on the recommendation of RBI.

SHRI K. SIVARAMAN

Chartered Accountant Director

K.S. SREENIVASAN

Director representing Workmen Employees

SHRI N. SHANKAR

Director representing Officer Employees

DEBASIS GHOSH

Government Nominee Director under General Category

Genesis of banking in India

13
Banking in India organized in the first decade of 18th century with The General bank of India
coming into existence in 1786. This was followed by Bank of Hindustan. Both these banks are
now defunct. The oldest bank in existence in India is the State Bank of India being established
as “The Bank of Calcutta” in Calcutta in June 1806. Couple of decades later, foreign banks like
HSBC and Credit Lyonnais started their Calcutta operations in 1850s. At that point of time,
Calcutta was the most active trading port, mainly due to the trade of the British Empire, and due
to which banking activity took roots and prospered. The first fully Indian owned bank was the
Allahabad Bank set up in 1865.

By the 1990s, the market expanded with the establishment of banks like Punjab National Bank,
in 1895 in Lahore; Bank of India in 1906, in Mumbai- both of which were founded under private
ownership. Indian banking sector was formally regulated by Reserve Bank of India from 1935.
After India’s independence in 1947, the Reserve bank of India was nationalized and given
broader powers.

Structure of the organized banking sector in India. Number of banks is in brackets.

Nationalization

The next significant milestone in Indian banking happened in the late 1960s when the then
Indira Gandhi Government nationalized, on 19th July, 1964. 14 major commercial Indian banks,
followed by nationalization of 6 more commercial Indian banks in 1980. The stated reason for
the nationalization was more control of credit delivery. After this, until the 1990s, the
nationalized banks grew at a leisurely pace of around 4% also called as the Hindu growth of the
Indian economy. Currently there are 19 nationalized banks.

Liberalization

In the early 1990s the then Narsimha Rao government embarked on a policy of liberalization
and gave license to a small number of private banks, which came to be known as New
Generation

RESEARCH METHODOLOGY
According to Green and Tall “A research design is the specification of the methods and
procedures for acquiring the information needed. It is the overall operational pattern or

14
framework of the project that stipulates which information is to be collected, from where it is to
be collected and by what procedures”

This research process based on primary data analysis and secondary data analysis will be clearly
defined to meet the objectives of the study.

 I collected some data from the secondary sources like published Company documents,
internet etc.
Research Design
“A research design is the arrangement of conditions for collections and analysis of data in a
manner that aims to combine relevance to the research purpose with economy in procedures”. It
is a descriptive cross sectional design .It is the conceptual structure with in which research is
conducted; it constitutes the blueprint for the collection, measurement and analysis of data.

It is needed because it facilitates the smooth sailing of the various research operations, thereby
making research as efficient as possible yielding maximal information with minimal expenditure
of effort, time and money.

In the preliminary stage, my research stage constituted of exploratory study by which it is clear
that the existence of the problem is obvious .So, I can directly head for the conclusive research.

Sampling Plan

“Sampling plan” is a distinct phase of research process. In this stage I have to determine who is
to be sampled, how large should be the needed sample and how sampling unit is to be selected.

Population

In my research, I have defined my population as a complete set of customers of Sagar City

Sample Survey

As compared to census study, a sample study has been conducted by us because of:

 Wide range of population, it was impossible to cover the whole population

 Time and money constraints.
Sample Unit

In this survey I took the list of customers from the dealers of in Sagar City.

15
Sampling Technique

Sampling technique implies the method of choosing the sample items, the two methods of
selecting sample are:

 Probability method.
 Non-probability method.

“Probability method” is those in which every item of the universe has an equal chance of the
inclusion in the sample. “Non-probability methods” are those that do not provide every item in
the universe with known cause of being included in the sample. The selection process is partially
subjective.

Data analysis and interpretations

Large volumes of raw data were collected through questionnaires in my research study. This raw
data has been further converted into significant statistical information before further
interpretation so that I can answer my research objective well.

The collected raw data was then edited and coded by the researchers to eliminate errors
and to assign data to pertinent categories. The data was then tabulated and presented with the
help of bar diagrams and pie charts.

16
 OBJECTIVES OF THE STUDY

 To Know about the Union Bank .

 To Know about the Service and Details.

 To Know about the Working Capital Management.

 To Know about the Swot Analysis.

17
 RESEARCH METHODOLOGY
According to Green and Tall “A research design is the specification of the methods and
procedures for acquiring the information needed. It is the overall operational pattern or
framework of the project that stipulates which information is to be collected, from where it is to
be collected and by what procedures”

This research process based on primary data analysis and secondary data analysis will be clearly
defined to meet the objectives of the study.

 I collected some data from the secondary sources like published Company documents,
internet etc.
Research Design
“A research design is the arrangement of conditions for collections and analysis of data in a
manner that aims to combine relevance to the research purpose with economy in procedures”. It
is a descriptive cross sectional design .It is the conceptual structure with in which research is
conducted; it constitutes the blueprint for the collection, measurement and analysis of data.

It is needed because it facilitates the smooth sailing of the various research operations, thereby
making research as efficient as possible yielding maximal information with minimal expenditure
of effort, time and money.

In the preliminary stage, my research stage constituted of exploratory study by which it is clear
that the existence of the problem is obvious .So, I can directly head for the conclusive research.

Sampling Plan

“Sampling plan” is a distinct phase of research process. In this stage I have to determine who is
to be sampled, how large should be the needed sample and how sampling unit is to be selected.

Population

In my research, I have defined my population as a complete set of customers of Sagar City

Sample Survey

As compared to census study, a sample study has been conducted by us because of:

 Wide range of population, it was impossible to cover the whole population

 Time and money constraints.
Sample Unit

18
In this survey I took the list of customers from the dealers of in Sagar City.

Sampling Technique

Sampling technique implies the method of choosing the sample items, the two methods of
selecting sample are:

 Probability method.
 Non-probability method.

“Probability method” is those in which every item of the universe has an equal chance of the
inclusion in the sample. “Non-probability methods” are those that do not provide every item in
the universe with known cause of being included in the sample. The selection process is partially
subjective.

Data analysis and interpretations

Large volumes of raw data were collected through questionnaires in my research study. This raw
data has been further converted into significant statistical information before further
interpretation so that I can answer my research objective well.

The collected raw data was then edited and coded by the researchers to eliminate errors
and to assign data to pertinent categories. The data was then tabulated and presented with the
help of bar diagrams and pie charts.

19
 Retail loans Offered by the Union Bank of India

Union Home:

Eligibility  

 Indian Citizen - 21 years and above.

 Either single account or joint account with other family members viz., father, mother,
wife, son or daughter with regular source of income.

 Individuals who may be employed/self-employed in business having regular income.

 A minimum of 40% marks as per investment grade scoring chart.

Purpose

 Purchase of independent house/flat.

 Construction of independent house/flat.

 Repair/Improvement/Extension.

 Repayment of loan availed from another agency/Bank/NBFC.

 For purchase/ construction of 2nd property (independent house/flat)

 Plot sold by a Government-recognized agency viz., HUDA, HOUSEFED and such

others.

Quantum   

 Max. Rs. 100 lacs for major 'A' class cities; for other cities Rs.50 lacs
 Max. Rs. 10 lacs for repair.

20
Margin  

 For purchase/construction, 20% of the value of independent house/flat.

 For repairs, 20% of total cost of repair.

 For purchase of plot, 20% of the value of the plot.

Repayment   

 Moratorium up to 18 months wherever loan is taken for under construction flat or

building.
 By EMI.

 The maximum repayment period should not exceed 20 years for construction / purchase
of house/ flat and 10 years for repair.

 Option of Flip/Step-up/Balloon methods of repayments for the convenience of the

borrowers.

Special Package (w.e.f. 16.12.2008)

Free Life Insurance Coverage for outstanding loan

No processing Charges

No Prepayment Charges   

Loan up to 5 Lac  :  8.50%   (reset After 5 year)

Margin   : 10% by borrower

Loan from 5 Lac to  20 Lac  : 9.25%  (reset After 5 year)

Margin : 15 % by borrower

Special  Combo Offer for Home Loan effective from 15.05.2009 to 30.09.2009               

Special Combo Offer is applicable for loan upto 50 lacs

Loan upto Rs. 30 Lacs 

21
 Tenor Upto 5 year >5 Year to 10 >10 Year to 20 Year
Year

Ist Year 8.00% 8.00% 8.00%

2nd Year till final BPLR    -   BPLR   - 2.50 % BPLR -   2.25 %
repayment 2.75%
I .e. 9.50 % i.e   9.75 %
i.e . 9.25 %

 Loan over Rs 30 Lacs upto 50 Lacs 

Tenor Upto 5 year >5 Year to 10 >10 Year to 20 Year

Year

Ist Year 8.00% 8.00% 8.00%

2nd Year till final BPLR    -   BPLR   - 2.25 % BPLR -   2.00 %
repayment 2.50%
I .e. 9.75 % i.e   10.00 %
i.e . 9.50 %

Features

Applicable for the borrowers who availed loan up to Rs. 50 lacs only.                           

Free life insurance policy will not be availed to the borrower.                                                           

No takeover account from other bank/ institution to be permitted.                                                   

All other terms and conditions of Union Home Loan scheme will remain unchanged

 Rate of Interest (w.e.f. 01.04.2009 )

Up to Rs 30 Lacs Above Rs 30 lacs upto Rs 50 Lacs Above Rs 50 lacs

As on 01.04.2009 As on 01.04.2009 As on 01.04.2009

Floating Floating Floating

Upto 5 Yrs. Upto 5 Yrs. Upto 5 Yrs.

22
 BPLR-2.75% = 9.25% BPLR-2.50% =9.50% BPLR-2.25% =9.75%

>5 Yrs to 10 Yrs >5 Yrs to 10 Yrs >5 Yrs to 10 Yrs

BPLR-2.50% = 9.50% BPLR-2.25% =9.75% BPLR-1.75% =10.25%

>10 Yrs to 15 Yrs >10 Yrs to 15 Yrs >10 Yrs to 15 Yrs

BPLR-2.25% = 9.75% BPLR-2.00% =10.00% BPLR-1.50% =10.50%

>15 Yrs to 20 Yrs >15 Yrs to 20 Yrs >15 Yrs to 20 Yrs

BPLR-2.25% = 9.75% BPLR-2.00% = 10.00% BPLR-1.50% = 10.50%

Fixed rates - upto Rs 30 lacs - 9.75% (upto 5 years) 

                      Above Rs 30 lacs - 10.75% (upto 5 years)
BPLR = 12.00% with effect from 01.04.09

 Processing Charges inclusive of applicable service tax

 0.50% of loan amount subject to a maximum of Rs.15000/- plus service tax as applicable
 0.25% of the loan amount at the time of application plus service tax as applicable

 0.25% of loan amount on acceptance of sanction plus service tax as applicable

Insurance

 Free Building Insurance.

 Natural Death (other than accidental death) may be covered under Union Home Plus,
which is optional and additional loan can be sanctioned.

 Free Personal accident coverage (in case of death).

Value Added Services   

 Credit Card will be issued (free of admission fees and annual fees during first year)
 Triple Insurance benefit

 No hidden or built-in costs

 Quick processing and disposal of loan applications

 Flexible repayment options

23
Guarantee Third party guarantee is not mandatory.   HOME LOAN FOR PURCHASE OF 2nd
PROPERTY (HOUSE/FLAT/BETTER ACCOMMODATION) Co-Applicant  

 Prospective borrower can include spouse or any other co-owner as a co-applicant.

 To enhance the loan amount, co-applicant's income can be taken into account while
calculating repayment capacity.

Eligibility   

 Loan can be availed for the second property even while the existing house/flat is under
mortgage to Banks/Financial Institutions (subject to conditions).

Quantum   

 Depends on the repayment capacity as well as the cost of the property.

 80% of the cost (cost will include cost of house, stamp duty, registration fees, transfer
fees, if any, and all such charges.) subject to maximum of Rs.50,00,000 or 4 times the
gross annual income, whichever is less.

Repayment   

 Maximum repayment period is 20 years (including moratorium) OR permissible up to

the retirement age of the borrower OR 65 years (in case of professionals/businessmen)
whichever is earlier.
 The existing house to be disposed off in 12 months time (optional) and sale proceeds to
be deposited in the loan account.

 The EMI would be fixed on balance amount outstanding in the account.

Margin   

 If money from the sale proceeds of the existing house is deposited in the account, the
same would be treated as margin.

Security   

 Similar to Home Loan.

24
Processing Charges ( Processing charges excluding applicable service tax ) 0.50% of loan
amount subject to a maximum of Rs.15000/- and payable -

 0.25% of the loan amount at the time of application plus service tax as applicable
 0.25% of loan amount on acceptance of sanction plus applicable as applicable

Other Attractive Features

 No prepayment penalty
 Free Insurance facility against Fire, allied perils including Earthquake, Personal Accident
(Death)

 Flexible repayment schedule

 Easy and convenient EMIs

 Loan sanctioned within 72 hours of receipt of application in full as per requirement.

 Option to pay interest on a daily reducing balance basis.

25
 WORKING CAPITAL MANAGEMENT

The Bank strives for the continual enhancement of shareholder value. Its capital management
framework helps to optimise the use of capital by ensuring the right composition of capital in
relation to business growth and the efficient use of capital through an optimal mix of products
and services.During the year, the Bank continued to attract investor interest from domestic and
foreign institutional investors, with a sizeable increase in trading volume and price. During
2006-07, the Bank has raised capital aggregating Rs. 1,762.81 crores through Innovative
Perpetual Debt Instrument (IPDI), eligible as Tier I capital and Tier II capital in the form of
Upper Tier II and subordinated bonds (unsecured redeemable nonconvertible debentures). Of
this, the Bank has raised US Dollars 196 million (equivalent to Rs. 852.01 crores) by way of
Hybrid Tier I capital and Upper Tier II capital from Singapore under the MTN Programme. This
additional capital enabled the Bank to reinforce its growth strategy and shore up its capital
adequacy ratio. Consequently, as on 31 March 2007, the Bank's capital adequacy ratio rose to
11.57% from 11.08% last year.

bilateral and multilateral ATM sharing arrangements. Beginning 2001, the Bank had
identified the ATM channel as a strong tool for customer acquisition and convenience. At 4.70
ATMs per branch, the Bank has the highest ATM to branch ratio in the country. The high ATM
to branch ratio has been part of the growth strategy and has been a major factor in the high
growth of savings bank deposits accounts and balances. Continuing with its efforts in providing
the utmost in convenience and safety to its customers, the Bank has promoted its mobile banking
services to enable customers to access their accounts on their mobile phones. The service also
sends out specific transaction alerts on the mobile phones of registered customers, informing the
customer of the activity in the account, thereby giving an added level of safety to the customer.
The mobile channel has found increasing acceptance among the Bank's customers. During the
financial year, 40% of the incremental customers signed on for mobile banking services. With
1.10 million customers registered for mobile banking, the Bank has among the highest mobile
26
registration penetration levels among bank customers. The Bank is uniquely poised to take
advantage of the growth of mobile commerce in the country. On the Internet Banking front, the
registered user base of the Bank rose from 1.89 million accounts as on 31 March 2006 to 3.35
million accounts as on 31 March 2007. To give the customers more reliable service, the Internet
Banking platform was revamped in the current year. To counter phasing attacks on our
customers, the Bank has; Introduced an added security measure whereby the customer has to
enter certain additional details from his debit card number in addition to his Login Identification
and password for conducting a financial transaction.The Bank has set up a Call Centre, available
24/7, providing assistance in 11 languages. The Call Centre as of March 2007 handled over
20,000 calls per day. With 508 branches, 53 extension counters, 2,341 ATMs, 3.35 million
internet banking customers and 1.10 million mobile registered customers, the Bank provides one
of the best networks in the country with real time on-line access to it customers.

RETAIL BANKING

On the retail assets front, for the larger part of the year, retail and consumer lending continued
its growth, in spite of the rising interest costs. However, the last quarter saw signs of a slow-
down, owing to rising Property prices and interest rates. For the Bank, the year-on-year growth,
in business terms, was 38%, growing from Rs. 6,490 crores on 31 March 2006 to Rs. 8,928
corers as on 31 March 2007. This constituted 24.21% of the Bank's total loan portfolio as on 31
March 2007. The Retail Asset Centre (RAC) network of the Bank also grew from 43 to 67 in
2006-07.

During the year under review, the Bank successfully launched its auto loans product and it
expects to carve out a significant share in the passenger car financing market in 2007-08. The
rise in interest rates in the economy may provoke a certain amount of stress on the portfolio and
the Bank is gearing up its machinery to pre-empt any slippage from our present standards,
insofar as loan losses are concerned. The Bank further consolidated its position in the Cards
business in the country during the year. The Bank today offers a wide array of payment solutions
to its customers by way of Debit Cards, Credit Cards, Pre-paid Cards, Cards Acceptance Service
and the Internet Payment Gateway. As on 31 March 2007, the total debit card base of the Bank
stood at 6 million. The Bank has the third largest debit card portfolio in the country. From the
initial one-size-fits-all debit card product, the Bank now offers as many as 7 variants,
customized for specific liability customer segments: the Gold Debit Card for the high spenders
and the Business Debit Card for current account and SME segment customers launched this
year, has found very good acceptance. The Bank also offers travel currency cards in 5 currencies

27
as a convenient alternative to the travelers' cheques. The Bank Also offers Rewards Card,
targeted at corporate requirements where recurring payments are required to be made to
employees, agents and distributors towards their commissions and incentives. During the year,
the Bank launched the Annuity Card, the Meal Card and the Gift Card.

CORPORATE BANKING

Corporate Banking business of the Bank provides quality products to large and mid-sized
clients. The products include credit, trade finance for domestic as well as international
transactions, structured finance, and project finance and syndication services.

The Bank continues to pursue a two-pronged strategy of widening the customer base as well as
deepening existing client relationships. Careful choice of new customers based on appropriate
risk-return guidelines forms the basis for the strategy of widening the customer base. The
deepening of existing client relationships is achieved by a careful account strategy focusing on
increasing the cross-sell of various corporate banking products, as also products from other
divisions of the Bank including investment banking and retail products.

During the year, large corporate advances grew by 76% to Rs. 16,346 crores from Rs. 9,286
crores in the previous year. The Bank took steps to focus on fee income mainly from trade
finance facilities and document handling. This method of fee generation is stable and sustaining.
Given the Increasing

28
TREASURY

The integrated Treasury manages the global funding of the balance sheet, domestic and foreign
currency resources of the Bank, compliance with statutory reserve requirements, as well as
optimizes on opportunities in the markets through managing proprietary positions in foreign
exchange and interest rate markets. With the expansion of the Bank overseas, the Treasury will
look to leverage on the network to widen product scope as well as increase revenue generation
from opportunities in the global markets. The continued thrust on maximizing returns from
customer relationships in the Treasury has resulted in growth of 51% in customer exchange
turnover and 60% in revenues.

The Treasury offered structured solutions to customers using foreign exchange and derivatives
offerings, which has resulted in significant value addition to customer relationships. In its
continued effort to offer top of the line payment solutions to customers, the Bank has offered
Real Time Gross Settlement (RTGS) and National Electronic Funds Transfer (NEFT) through
470 branches and extension counters across the country. Throughput in RTGS grew by 251%
over the previous year. Despite a challenging interest rate environment, the Bank's holding in
government securities has been substantially protected from market risk as it is held as per
specified guidelines of RBI. The portfolio gave a return of 7.64%. The Bank established a
Medium Term Note (MTN) Programme for Euro One billion as a part of the funding plan for its
overseas operations.

During the year, the Bank raised USD 150 million as Upper Tier-II (the first hybrid capital
issuance out of India) and USD 46 million as Hybrid Tier-I capital in terms of recent guidelines
issued by RBI. The Bank also raised senior debt through the issuance of USD 250 million of
three-year floating rate notes (FRN) under the MTN programme. The Asset Magazine published
in Hong Kong voted the Bank's Upper Tier-II issue as “Best Deal, India”. While the Upper Tier-
II issue was oversubscribed six times, the Floating Rate Note (FRN) issue was priced at the
lowest coupon for Indian bank debt insurance.

29
BUSINESS BANKING

Business Banking has consistently focused on procuring low cost funds by offering a range of
current account products and cash management solutions across all business segments covering
corporate, institutions, Central and State Government Ministries and Undertakings as well as
small business customers. Cross selling of transactional banking products to develop account
relationships, aided by product innovation and a customer-centric approach have borne fruit in
the form of growing current account deposit balances and increasing realisation of transaction
banking fees. Sourcing of current account deposits is a focus area for growth. As of 31 March
2007, current account deposits grew by 41.83% to Rs. 11,304.31 crores from Rs. 7,970.08 crores
in the previous year. On a daily average basis, current account deposits grew from a level of Rs.
4,428 crores for the yearend account deposit balances.

30
CASH MANAGEMENT

Cash Management Services (CMS) initiatives leveraged the Bank's growing branch net work
and robust technology to provide a wide range of customised solutions to suit the dynamic
requirements of its clients. The Bank offers CMS solutions for collections and payments with an
ideal blend of structured MIS and funds movement so that clients are able to enhance their fund
management capabilities. Also the Bank's Web CMS initiative allows them to view their daily
transactions on a real time basis. The strong correspondent bank alliance with partner banks
offers corporate clients a wide geographical coverage. CMS foray is not only emerging as an
important source of fee income but is also contributing significantly towards garnering zero cost
funds, forging large relationships.

The Bank has established a strong presence by offering collecting bank services in the IPO/FPO
segment and Dividend/Refund Warrant segments.

During the year, the CMS throughput grew by 80% to Rs. 3, 79,067 crores compared to Rs.
2,10,977 crores last year. During the same period, the number of CMS clients has grown to
2,164 clients from 1,432 clients. The Bank has acted as an Agency Bank for transacting
Government Business for the last 6 years, offering banking services to various Central
Government Ministries and Departments and other State Governments and Union Territories.
Currently, the Bank accepts Income Tax and Other Direct Taxes through its 214 Authorized
Branches at 137 locations, and Central Excise and Service Taxes through its 56 Authorised

31
Branches at 13 locations. The Bank also handles disbursement of Civil Pension through 218
Authorised Branches and Defence Pension through 151 Authorised Branches. Additionally, the
Bank is providing collection and payment services to four Central Government Ministries and
Departments and seven State Governments and Union Territories. The Bank has further
strengthened its association with the e-Governance initiatives of various State Governments in
India aimed at providing better citizen services by setting up integrated citizen facilitation
centers. During the year, the Bank associated with the 'Choices' Project of the Government of
Chhattisgarh and the 'e-Suvidha' initiative of Government of Uttar Pradesh. During 2006-07, the
Bank has also extended the business of Stamp Duty Collection through franking in Rajasthan, in
addition to Maharashtra and Gujarat. The Bank also launched an e-Tax Payment Facility for
payment of Direct Taxes on behalf of the Central Board of Direct Taxes (CBDT) through the
internet for its customers. Additionally, the Bank also launched an e-Payment facility for
payment of Commercial Taxes on behalf of the Department of Commercial Taxes, Government
of Chhattisgarh. During 2006-07, the total Government business throughput registered a growth
of 36% to Rs. 37,932 crores against Rs. 27,888 crores in the previous year.

CAPITAL MARKETS

The Bank's Capital Markets business encompasses activities both in the equity capital markets
and debt capital markets. The equity capital market activities involve providing advisory
services pertaining to raising of equity and quasi-equity funds through various instruments by its
corporate clients. The Bank is a SEBI registered Category I Merchant Banker with experience in
management of public and rights issues. The Bank provides debt capital market services by
acting as Advisors for raising Rupee and foreign currencies term loans, foreign currency
convertible bonds and

Rupee denominated bonds.

The Bank is an active player in the domestic debt market and has syndicated an aggregate
amount of Rs. 30,600 crores by way of bonds and debentures, as also term loans during

2006-07. Prime Database has ranked the Bank as the number 2 arranger for private placement of
bonds and debentures for financial year 2006-07, Bloomberg has also ranked the Bank number 3
in the India Domestic Bonds League table for the calendar year 2006.

The Bank's Capital Markets business also involves providing corporate restructuring advisory
services, mergers & acquisitions advisory services, arranging services for acquisition funding,
infrastructure and project advisory services (including preparation of business plans), techno-

32
economic feasibility reports and bid process management. The Bank also provides trusteeship
services, acting as both debenture and security trustees, monitoring agency for equity issue
proceeds and trustees for securitisation issues. The Bank also conducts a depository participant
business.

The Bank also maintains an investment and proprietary trading portfolio in corporate bonds and
equities. As on 31 March 2007, the Bank's investment in corporate bonds, equities and others
was Rs. 9,600.60 crores, as against Rs. 8,901.27 crores in the previous year. Of this, as on

31 March 2007, the Bank has made investments of US Dollars 129 million (equivalent to Rs.
561.87 crores) at overseas branches.

INTERNATIONAL BANKING

With increasing integration of the Indian economy globally and consequent two way flows of
funds and services, the Bank had identified international banking as a key opportunity to
leverage the skills and strengths built in its domestic operations in serving the requirements of its
clients in the areas of trade and corporate banking, as also investment banking by establishing
presences at strategic international financial hubs in Asia. In this direction, the first overseas
branch of the Bank was opened in Singapore in April 2006 and, subsequently, a branch in Hong
Kong and a representative office in Shanghai in China commenced operation during the year
2006-07. In addition, the Bank has also set up a branch in the Dubai International Financial
Centre, UAE in early April 2007. The Bank's presence at these locations, through which the bulk
of the trade in

Asia gets routed, would enable the Bank to provide services at every cycle of the trade finance
products, besides providing an opportunity to foray in the international investment banking
markets.

CREDIT RISK MANAGEMENT

The changing operating environment for banks entails managing complex and variable risks in a
disciplined fashion. The key challenges for effective management of variegated risks emanate
from creation of skill sets within the Bank with appropriate domain knowledge and developing a
functional framework to monitor risks with triggers in cases of breaches in the pre-accepted
levels of identified risks. The Bank, since the inception of the Risk Department, has developed
in-house skills to manage key areas of risk viz., credit risk, market risk and operational risk. In
respect of credit risk, emphasis is currently placed on evaluation and containment of risk at
individual exposures for non-schematic loans and analysis of portfolio behaviour in case of
33
schematic loans. There is increasing use of sophisticated modelling techniques to contain credit
risk, while in the case of market risk the measurement of market risk on identified portfolios and
their effective monitoring is becoming increasing. Quantative in its use of statistical techniques.
In the area of operational risk, the Bank has created a framework to monitor resultant risk and to
capture loss data.

The Bank has also formulated a global risk policy for overseas operations and a country specific
risk policy for the Singapore and Hong Kong branches during the year. The policies were drawn
based on the risk dimensions of dynamic economies and the Bank's risk appetite. The Bank's
risk management processes are guided by well-defined policies appropriate for the various risk
categories, independent risk oversight and periodic monitoring through the sub-committees of
the Board of Directors. The Board sets the overall risk appetite and philosophy for the Bank.
The Committee of Directors, the Risk Management Committee and the Audit Committee of the
Board, which are sub-committees of the Board, 27 review various aspects of risk arising from
the businesses of the Bank. Various senior management committees operate within the broad
policy framework.

Credit Committees and Investment Committees operate within the delegated power to convey
approvals for acquisition of assets and manage such portfolios. The Asset and Liability
Management Committee (ALCO) is responsible for reviewing the balance sheet, funding,
liquidity, capital adequacy, capital raising, risk limits and interest rate risk in the trading and
banking book. In addition, ALCO also monitors and reviews external and economic changes
affecting such risks. The Operational Risk Management Committee assesses operational risk in
various activities undertaken by the Bank, suggests suitable mitigants in case of identification of
a gap in the process flow, and reviews product approvals.

CORPORATE SOCIAL RESPONSIBILITY

Being an integral part of society, the Bank is aware of its corporate social responsibilities and
has engaged in community and social investments.

During the year, the Bank has set up a Trust - the UTI Bank Foundation - with the objective of
providing philanthropic assistance for public health and medical relief, education and alleviation
of property. During the year, the Trust focused on primary education for the 33sess

34
 DATA ANALYSIS & INTERPRETATION
A) WORKING CAPITAL

2008 2007 2006 2005 2004

Current assets, loans & 2,784.51 1,892.07 1,679.98 2,071.38 896.10

advances

Less : current liabilities 7,556.90 5,873.80 4,051.03 1,828.68 1,530.46

& provisions

Total net working (4,772.38) (3,981.73) (2,371.05) 242.70 (634.36)

capital

Interpretation:

Here we can see that the current liabilities of the bank is very high but on the other hand bank
don’t have enough assets so the result is Working Capital of the Bank is decreasing year by year
which is not a good sign for the bank. Its shows the bank don’t have a enough money to pay
their day to day expenses.

35
B) Working capital turnover ratio

Year Ratio Calculated

2003-04 (2.51)

2004-05 7.92

2005-06 (12.1)

2006-07 (1.14)

2007-08 (1.46)

Interpretation:
The working capital turnover ratio is used to analyze the relationship between the money used to
fund operations and the sales generated from these operations. In a general sense, the higher the
working capital turnover, the better because it means that the company is generating a lot of
sales compared to the money it uses to fund the sales. In the case of UNION BANK working
capital turnover ratio is negative in most of the year only in the year 2004-05 is a positive as
well as high. So its shows the bank has used a more funds in compare to generate sales which is
not show a good sign for bank.

2) PROFITABILITY RATIOS

36
A) OPERATING MARGIN

Year Margin Calculated

2003-04 23.31

2004-05 26.77

2005-06 26.45

2006-07 21.84

2007-08 23.25

Interpretation:
In the year 2007-08 Operating Margin was 23.25, in the year 2006-07 it was 21.84. This shows
that Operating profit margin is increasing which is good for the bank.

B) GROSS PROFIT MARGIN

37
 Year Calculated GPM

2003-04 23.31

2004-05 23.23

2005-06 23.88

2006-07 19.79

2007-08 21.44

Interpretation:

Here we can see that the there is no much up and downs in Gross profit margin of UNION
BANK but In the year 2007-08 Gross Profit Margin has increased from 19.79 to 21.44, it’s a
8.43 % growth in gross profit margin of bank that shows the performance of bank is increasing
which is a good sign for bank.

C) NET PROFIT MARGIN

38
 Year Calculated NPM

2003-04 13.14

2004-05 14.33

2005-06 13.47

2006-07 12.01

2007-08 12.22

Interpretation:

Net profit margin of UNION BANK is not up to mark. Although it has increased from 13.14 in
the year 2003-04 to 14.33 in year 2004-05 but after the year 2004-05 to 2007-08 it is
continuously decreasing which is a major issue of concern for bank.

39
3) MANAGEMENT EFFECTIVENESS

A) RETURN ON ASSETS

Year Calculated Ratio

2003-04 1.42%

2004-05 1.21%

2005-06 1.18%

2006-07 1.10%

2007-08 1.24%

Interpretation:

Return on assets (ROA) is an indicator of how profitable a company is relative to its total
assets. ROA gives an idea as to how efficient management is at using its assets to generate
earnings. In the case of UNION BANK ROA is decreasing from the year 2003-04 to 2006-07
but after the year 2006-07 it has increased so we can say that previously the bank was not utilize
their assets efficiently but now the bank is doing which may be a good sign for bank in future.

B) RETURN ON INCOME

40
 Year Calculated Return

2003-04 37%

2004-05 20%

2005-06 25%

2006-07 29%

2007-08 18%

Interpretation:

ROI tells that how much a firm has take back of their investment. More ROI means the company
is performing well. In the case of UNION BANK in year 2003-04 ROI was highest which
shows that bank was performing good in year 2003-04 but in the financial year 2007-08 ROI is
lowest which refers that in year 2007-08 company didn’t earn as return as they had invested.

C) RETURN ON CAPITAL EMPLOYED

41
 Year Calculated Ratio

2003-04 1.60%

2004-05 1.40%

2005-06 1.60%

2006-07 1.40%

2007-08 1.80%

Interpretation:

It simply shows that there is volatility on return on capital employed. But if we see from last
year 2006-07 the return is 1.40% & now at present 2007-08 it has registered a robust growth rate
of 33%. In short company is performing well.

C) RETURN ON AVERAGE NETWORTH

42
 Year Calculated Ratio

2003-04 27.1

2004-05 25.8

2005-06 18.4

2006-07 21.8

2007-08 16.1

Interpretation:

Here we can see that a fluctuation in Return on average net worth of UNION BANK It has
decreased in 2007-08 16.1 from 2006-07 21.8.

D) EARNING PER SHARE (RS)

43
 Year EPS

2003-04 11.72

2004-05 11.83

2005-06 17.41

2006-07 23.40

2007-08 29.94

Interpretation:

Earning per share is increasing year by year which is a good sign for an investors of Union Bank
it shows that an investor can invest in Union Bank to get good profits.

44
 LIMITATION

• The time given for the project was not sufficient enough to study and understand the

retail loans approval process of the Union bank of India.

• The banks have their own confidential information and it was very difficult to make the

project and analyze it on the basis of hypothetical information.

SUGGESTION
45
  The organization should provide or set up a communication lab for the benefit of the
fresher and existing employees that makes a career development and new opportunity to
grow up in the organization.
 This increases the employee morale and helps to attain the target.
 Communication classes should be conducted timely to all employees should be followed
by organization.
 Refresher courses may organize intermittently for all employees in the rank and file
category to relive job fatigue and monotony of every day work life. So employees can
gain skills by Communication.
 Candidates who enter into the Job Market must make sure that their efficiency in
Communication is up to the expectation of an organization which will make them to go
through the Recruitment and Selection system.
 The respondents in the corporate exhibits that communication skills are necessary for all
the employees from different channels.
 FOS (Fleet on street) Team should be made involved to pass through more
communication classes from language experts.
 The company should allot funds to create a communication laboratory for the beneficiary
of all the employees.

SWOT ANALYSIS
STRENGTHS:

46
  High quality service provide

 Strong and well management.

 Second largest private bank all over India

 Union Bank has been to able maintain the quality of its loan

portfolio

WEAKNESSES:

 Strengthening of rupee hitting profits

 Ability to pass through price increases in various markets due to

 Intense competition.

 Manpower problem is big problem

OPPORTUNITY

 Development of modern banking.

 Potential for growth through increased penetration.

 Opportunity to no:1 bank all over India.

 Increasing popularity in overseas markets

THREATS/CHALLENGES:
 Environment with diverse players
 Rising competitors for private banking
 Change in fiscal benefits/laws
 People attraction & retention
 Management of country risk.

47
 CONCLUSION
 Recruitment is essential to effective Human Resources Management. It is the heart of the
whole HR systems in the organization. The effectiveness of many other HR activities,
such as selection and training depends largely on the quality of new employees attracted
through the recruitment the recruitment process.
 Policies should always be reviewed as these are affected by the changing environment.
Management should get specific training on the process of recruitment to increase their
awareness on the dangers of wrong placements.
 Effective recruitment is important in achieving high organizational performance and
minimizing labor turnover. As of now Union Bank Ltd. has a team of effective human
resource which is efficiently managing the organization at its best. Though the
recruitment process adopted by the organization needs to be improved, challenges are
ahead for the HR Department to recruit people after the effect of recession.
 In the present competitive & dynamic environment, it has become essential for
organization to build and sustainable.
 In competitive advantage, the Communication skill set has assumed more importance
than even before. Dynamic and growth-oriented organization recognizes Communication
as an important aspect of the Recruitment and Selection system for managerial function
in a rapidly changing and economic environment.
 Insurance industries should possess a valuable work force with good communication
skill sets to get a good deal or business from their customers. In this sector the Open
Market channel is the main source of revenue for the company for which they should be
able to communicate well with their clients. Then the company can reach its profitability
and objectives easily.
 The company should take the suggestions and ideas from the employees and can conduct
and examine the communication skill set within the employees. So that they can analyze
the need and act accordingly for a better result and the growth of its own and valuable
workforce.

48
 BIBLIOGRAPHY

BOOKS REFFERED:

 ASWATHAPPA, K. (2010), Human Resource Management

 DESSLER, GARY (2011), Human Resource Management
 ROBBINS, STEPHEN P.,(2009) “Organizational Behaviour” of Prentice Hall of India
(New Delhi)
 CHHABRA , T. N.,(2010), Human Resource Management

WEBSITES REFFERED:

 http://en.wikipedia.org/wiki/AXIS_Bank
 http://business.mapsofindia.com/banks/Axis-bank-branches/
 http://business.mapsofindia.com/banks-in-india/Axis.html/
 http://www.slideshare.net/vin4a/recruitment-and-selection-at-Axis

REPORTS/ARTICLES REFFERED:

 Annual report of UNION BANK 2011

49