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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
(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)
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
UNION BANK
COURSE CO-ORDINATOR
PROJECT GUIDE
EXTERNAL EXAMINER
PRINCIPAL
CHAPTER 1
INTRODUCTION
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.
10
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.
13
Resource Side:
They are interest insensitive and less bargaining for additional interest.
ASSETS SIDE:
Retail banking results in better yield and improved bottom line for a bank.
Improves lifestyle and fulfils aspirations of the people through affordable credit.
14
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.
Long term loans like housing loan due to its long repayment term in the absence of
proper follow-up, can become NPAs.
15
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.
16
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
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:
20
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.
22
Saving account:-
ELIGIBILITY:
Any Resident Individual - Single Accounts, Two or more individuals in
Joint
persons,
Purdanasheen
SALIENT FEATURES :
An ideal option to cultivate the habit of banking and saving amongst the
younger generation.
No hidden costs
23
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
Charitable Institutions
Other Benefits:
Overdraft facility
Fixed deposits:-
25
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.
26
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.
Minors,
Associations,
Clubs,
Societies,
etc.
Trusts,
27
SALIENT FEATURES :
An account can be opened for any period ranging from 6 months to 120
months, in intervals of 3 months
The maturity amount will be paid one month after the deposit of the last
installment (latest table giving maturity values available with the
branch)
Interest rate:- 9%
28
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.
29
Home loan:-
PURPOSE:
ELIGIBILITY:
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.
30
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%
31
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:
32
QUANTUM OF LOAN:-
Maximum quantum of
loan
New 4-wheeler
Old
4-wheelers
Rs. 75 Lakh
(not
Rs. 10 Lakh
Rs. 10 Lakh
33
Education loan:-
PURPOSE:
Basic education
ELIGIBILITY:
Indian citizen
QUANTUM OF LOAN:
Rate of interest:-
12.00% (fixed)
(fixed)
Above ` 7.50 Lakh = 12.25%
11.75% (fixed)
(fixed)
35
Personal loan:
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.
36
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
37
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.
38
Available 24x7
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.
ATM:
39
Cash Withdrawal
Balance Enquiry
Mini Statement
Change of PIN
Other bank card holders can also withdraw cash up to Rs. 10,000 per day and
check their account balance at Union Bank ATMs.
40
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.
Service Charges:
Absolutely free of charge for users creating passwords through the Self User
Creation & Reset Password modules.
Mobile banking:-
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
Fund Transfer
Mobile
to
Mobile
between
two
registered
customers)
o
Bill Payments
43
Airline Ticketing
Movie Ticketing
Credit card:
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
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.
Free Insurance is available against accidental death, i.e., Rs. 2 lakh for
principal card holders and Rs. 1 lakh for Add-on cardholder
Lost card liability is restricted to Rs.1,000 from the time of reporting loss
Gift card:
46
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.
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.
47
Benefits:
Withdraw cash from any of our branches across India upto Rs. 1.00 lac per
day.
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.
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
Retail Lending:
Interest Certificates
Advantages of Investing into a Mutual Fund:Mutual funds are popular because they offer the ability to easily invest in
51
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.
52
53
54
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.
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
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.
60
PERCENTAGE OF
RESPONDENTS
HDFC
25%
ICICI
30%
UNION BANK
25%
SBI
20%
RETAIL BANKING
20
25
HDFC
ICICI
UNION BANK
SBI
25
30
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
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
85%
NO
15%
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
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
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
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
80
No
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
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
55
No
45
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
72
Bibliography
Websites:www.finacialexpress.com
www.economywatch.com
www.unionbank.com
73
ANNEXURE
Branch:-DOMBIVLI(WEST)
Address:-
74
2.- What are the different channels through which I can access my
Savings Account?
4.- What are the tax benefits I get from my education loan?
75
76
6 Are you using all retail banking product and services of union
bank?
8 Do you think that the union bank can merged with another bank?
77
10 Can you suggest union bank for retail banking to your friend
and family member?
Signature
78