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INDUSTRY INTRODUCTION

What is Banking?

The Bank ing Regulation Act 1949 defines banking as Accepting, for the p
urpose
of lending or investment, of deposits of money from the public
repayable
demand oronotherwise and withdrawal by cheque draft, order or
otherwise. In also offer financial services, which include:
addition, banks

Issuing demand draft & travelers



cheque.
Credit
cards
Collection of cheques, bill of

exchange.
Safe deposit
lockers
Custod ian
services.
Investment and Insurance
The businessServices.
of banking is highly regulated since banks deal with money
offered
them b ytothe public and ensuring the safety o f this pub lic money is one of the
prime
responsibilities of any bank. That is why banks are expected to be prudent
in their and investment activities.
leading

Every bank has a compliance department, which is responsible to


ensure that all
the services offered by the bank, and the processes followed are in
compliance
with the local regulat ions and the Banks corporate police

The major regulations and act go verning the bank ing business are:-

Bank ing Regulat ion Act,


1949
Foreign Exchange Management
etc. for purposes
Bankoflend
investment money
buying
Indian either
Negotiable
house
Co
to individuals
ntract
Instru
for
property,
prod
ments
and
uctive
cars
the
Act,
and
others.
purposes
other
However,
to
consumer
individ
banks
ual,
d urables
dofirms,
mot
Corporate
and
finance
for Act,1999
Act
1881 |
any speculative activity. Lending is risk taking. The Depositor
oassured
f banksof issafety
also of their money by deploying some
percentage of deposit
statutory reserves in & CLR.
like SLR

BANKING INDUSTRY

Ba nking System

Bank ing system is an integral sub-system of the financial


system.
importantIt channel
represent
o fan
collecting small saving from the
households
the corporateand end ing it to
sector.

The Ind ian Banking system has the Reserve Bank of Ind ia (RBI)
as
for the apex body
all matters relating to the banking system. It is the comucopia of
Banks of India
and bankers to all ot hers banks as well.

Classification of Banks

1. Non-Schedule Banks
These are banks, which are not included in the second
schedule
BankofingtheRegulat ions Act, 19 65. It means they do not satisfy
the
laidconditio
down bynsthat schedule. They are further classified as back:

_ Central co-operative banks and primary credit societies


_ Co mmercial Banks

2. Schedule Ba nks
Must have paid-up cap ital and reserve o f mo t less than Rs.
50,00,000.
detrimentalThe
must satisfy tothetheRBI than its
interests of affairs are mot These
its depositors. conducted in a
are further
manner
classified
follow:
_ Co
State
mmercial
asco-operative
BanksBanks
connecting 194 branches/extension counters and 316 ATMs.
PRODUCTS AND SERVICES

UNION BANK OF INDIA provides various types of product


and
wideservices
range of .The
product and services consists of

BANKING

y Accounts & Deposits cumulative deposit scheme, deposit


reinvestment
certificate, monthly income scheme, union flexi-deposit, senior
citizens
scheme, multi gain savings account, no frills saving account,
union super union classic current account
salary account,
y Retail Loans union cash, union ho me, union health, union
miles, union
education, union top up, EMI calculator, union smile.
y Cards - Classic / Silver / Gold, Corporate Credit Cards, Add-On
y
Cards
Insurance & Invest ment mutual fund, union healthcare
y Demit demit accounts, online share trade
y Payment

NRI Banking

y Remittance - Union E-Remit, Details for Remittance


y Savings & Deposits - NRO Non Resident Ordinary A/c
Scheme,
Resident NRE NonRupee, RFC, FCNR(B), Union Unfixed,
External
Foreign
Currency Deposit
y Loan & Services house loans, foreign currency loans, loans
against
deposit, immovable property, and shares or debenture
CMS - Union Speed, Union Centralized Debits/Credits, Union
yy Payments
Corporate
Prompt - Union Bill Pay
Banking
y E-Tax - Customs and Direct taxes, DGFT, Central Excise and
Service Tax
Trade Finance trade finance for exporters, trade finance for
y
importers,
foreign currency loans, correspondent banking
y Insurance - Non life Insurance Corporate Agency, Insurance-
Corporate
Agency
y Syndication of Loans
y MSME Banking
y Loans & Policies

Internet Banking

y Acco unt Information


y Transfer of Funds
y Bills
y Requests
y Mails
y Trade
y Limits
y Currency
y Uploads
y Custo mizatio n
y Financial enquiries
y Non Financial enquiries

Vision & Mission

VISION
1.To
2.Technologically
8.Skill
be Maximization
the premierStrong
financial institution in the emerging markets
MISSION

To be premiere bank, responsive to the needs of our target


market customers,
recognized for consistently superior service quality innovative
products,
delivering thereby
superior value to our shareholders

FINANCIAL PERFORMANCE HIGHLIGHT of 2016-2017

y Total Business size of Rs. 2, 91,289 as


crore
on March 31, 2010 an
increase of 22.9% over previous year.
y Total Deposits of Rs. 1, 70,040 crore
, an increase of 22.6%. CASA deposits
grew at 29.4%, its share increased by 166 basis points to 31.73%.
y Total Advances of Rs. 1, 21,249 crore
, an increase of 23.4%. Retail
advances grew at 33.8%
y Net Profits of Rs. 2,075 crore
, an increase of 20.2% over the previous year.
y Core Fee Income of Rs. 896 crore
, an increase of 32.74% over the previous
year.
y Capital Adequacy Ratio (Basel II CAR) stood at as12.51%
on March 31,
2010 as against regulato ry minimum of 9.0%. Tier I ratio at 7.91%.
y Return on average assets 1.25% .
y Return on equity recorded at 23.69% .
y Book Value
previous
year. per share of
year. Rs. 173.38
, an increase of 25.6% over the previo us
y Cost to Income ratio of 40.66%
, reduced by 115 basis po ints over t he
previous year.
y Proposed Dividend up from 50% to 55% .
y Pan Ind ia reach - Network of 2,805 bra nches and 2327
s as on
ATM
March
31, 2010.
y Global Expansio n: Opened representative offices in (Australia)
Sydney and
Beijing (China). Representative office in London
opened o n April 1, 2010.
1. As on March 31, 2010, Total Business o f the bank stood at
as Rs. 2.91Rs.
against lakh crore
2.37 lakh crore as on March 31, 2009, an
increase
business ogrowth
f 22.9%.
wasThebroad-based with contribution from retail
and corporate
customers, both on assets and liabilities side.

2. The Bank posted a total income and net pro fit of Rs. 15,277 cro re
andrespectively
crore Rs. 2,075 for t he financial year ended March 31,
2010
13372as against
crore Rs.1727 crore respectively in the previous year.
and Rs.
The
shareEarning per showed improvement to Rs. 41.08 as
(EPS) ratio
against
previousRs. 34.18
year, whileincost
theto income ratio declined to 40.66% as
against 41.81%
the previous year.in
Objective of the study

The objective of the study was to know the financial


performance (i.e. financial
profitability and the position) o f Union Bank o f Ind ia
for the financial
2009-20 10. year

Some other objectives were as fo llows:

To st u d y t h e ev a l u a t i o n a n d p er f o r m an c e
oT fo t sth eu db ya ntkh. e f i n a n ci a l s t a t em e

nT to. st u d y t h e s o u r ce o f f i n a n ce o f t h e b an
k.

Scope of the study

Each and every project study along


with
future.itsAnd
certain
thisobjectives
scope in also
futurehasgives
scope
to for
new researches a
new
new need
projectto with
research
a newa scope. Scope of the study not only
consist one or two
future business plan but so metime it also gives idea about a
new business
beco mes muchwhich
more profitab le for the researches then the older
one.
Scope o f the study could give the projected scenario for a new
successful strategy
witha proper implementation plan. Whatever scope I observed
in
notmy project
exactly are all the features o f the scope which I
having
described
not lackingabove
all the but also
features

_ Research study could give an idea o f network expansion for


_capturing
Inmarket
future and
morecusto
custo
mermerrequirements
with bettercould
services
be added
and lower
with cost,
the
prodservices
compromising
without
uct andfor getting
with an
quality.
edge over competitors.
_ Different parameter could also be used for the purpose of
launching
prod ucta with
newextra benefits which are required by customers.
_ Factors which are respo nsible fo r the performance for bank can
alsofor
be the
used
modification of the strategy and p roduct for being more
profitable.

These all could also be interchanged with each other for each
other in banks
strategies for making a final business p lan to affect the market
with a positive
without way a lot to market, customers and competitors
disturbing
with
marketdisturbance
shares . in
generally hesitate in extending financial accommodation to
such sectors as
ngsavings, the bank ing sector has contrib uted to the process
of economic
Conclusion

The economy of the country is booming and with the investment


favo rab le policies
and their smooth implementation, the ro le of banks in todays
economy has
become an important one.

The banking industry is also reaping the fruits of t his eco no mic
boom by growing
rapidly o ver the past few years. There are a number of
mergers happening in the
econo my with foreign invest ment coming into the bank ing
sectors.
The services that unio n bank pro vides have a great market
penetration not only
because of their features but also the pro fit and markup rates t hat
they charge.
Furthermore, as the bank is growing, the number o f employees
at union bank are
also increasing, which shows that unio n bank is being
considered as an emp lo yer,
that provides its employees with a challenging environment to work
in, where they
can harness their full potential and sho ws confidence as an
emp loyer b y the
employees o f t he bank.
.

Union Bank of India (UBI) was registered on 11 November 1919 as a limited


company

UBI is active in promoting financial inclusion policy and is a member of the


Alliance for Financial
LIMITATIONS :-

The time given for the summer internship i.e. 8 weeks, was not
sufficient enough to study and understand the retail

loans approval process of the Union bank of India.

The banks have their own confidential information and it was


very difficult to make the project and analyze it on

the basis of hypothetical information.


SUGGESTIONS :-

UBI has this time ranked 5th among all the Nationalized banks. The
reason for its ranking was the number of NPAs it had.

It was found that a number of retail loans ended up in NPAs . UBI


needs to develop a competitive edge and the managers

and the assistants need to keep a tab on the loans given.

Usually the managers would only fulfill their required target and then
would forget about more borrowers. They need to

have more borrowers both for small and big loans.

Many times they pass a loan without the proper appraisal, i.e. the
client may lack either the projected and estimated
Executive Summery

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 4200+ 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 96 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 5.7 crores.
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 convenience to 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 2015 the Bank achieved total business level of Rs.
5,79,627 crore (Rupees five lakh seventy Nine thousand
six hundred and twenty seven crore).
Behind all these achievements is a dedicated team of staff, which is truly
cosmopolitan 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 36,000 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.
Bibliography
www.unionbankofindia/retailloans/unionshare.co.in
www.unionbankofindia/retailoans/unioncomfort.co.in
www.unionbankofindia/retailloans/unionsmile.co.in
www.unionbankofindia/retailloans/unionhealth.co.in
www.unionbankofindia/retailloans/unioneducation.co.in
www.unionbankofindia/retailloans/unionvehicle.co.in
www.wikipedia.com
www.google.com
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RBI guidance notes on Credit Risk Management.
Credit Risk Models and Management, 2 nd edition by David
Shimko.
Credit scoring and its applications by Lync.Thomas, David B.
Ederman and Jonathan N. Crook.
Credit Risk Valuation: Methods, Models and applications by
Manuel Ammann.
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DD Mukherjee