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UNION BANK OF
INDIA
IN PARTIAL FULFILLMENT OF THE
REQUIREMENTS FOR THEMASTER OF
BUSINESSADMINSTRATION,
SUBMITTED TOSUBMITTED BYChief Manager (P) Madhavigupta
Regional office,
New Delhi
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DECLARATION
I Madhavi gupta , a student of MBA 3rd Semester of Kamrah Institute Of Information
Technology, Gurgaon hereby declare that the research project report titled BANKING
INDUSTRY & UNION BANK OF INDIA is my original work and the same has not been
submitted for the award of any other diploma or degree.
Place: Gurgaon
Madhavi gupta
Date:
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ACKNOWLEDGEMENT
A project is never the sole product of a person whose name has
appeared on the cover. Even the best effort may not prove
successful without proper guidance. For a good project one
needs proper time, energy, efforts, patience, and knowledge.
But without any guidance it remains unsuccessful. I have done
this project with the best of my ability and hope that it will
serve its purpose.
To be or not to be is not anything which matters, how
to be thankful is what really matters
It was really a great learning experience and I am really
thankful to my faculties, who not only helped me in the
successful completion of this report but also spread his
precious and valuable time in expanding my knowledge base.
I wish to acknowledge my gratitude towards IIMT Management
College, my friends and all those persons who are responsible
for the successful completion of this project.
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(Madhavi
gupta)
CONTENT
UNION BANK OF INDIA ....................................................................................... 1
CONTENT ........................................................................................ 4
TYPES OF BANKS .................................................................................................. 10
Nationalization ..................................................................................................... 20
Liberalization ....................................................................................................... 21
E- Banking ............................................................................................................ 25
CURRENT TRENDS OF BANKING IN INDIA ............................................................. 27
FUTURE OF BANKING INDUSTRY IN INDIA
............................................................................................................................ 32
INTRODUCTION .................................................................................................... 35
HISTORY ............................................................................................................... 35
VISSION ................................................................................................................ 38
CORPORATE MISSION ........................................................................................... 39
BOARD OF DIRECTORS ........................................................................................ 39FINANCIAL STATEMENT AS ON YEAR ENDED 2011 ..........................................41
BALANCE SHEET .............................................................................................. 42
Accounts and deposits ...................................................................................... 43
RETAIL LOANS ................................................................................................... 51
CARDS .............................................................................................................. 56
INSURANCE ....................................................................................................... 59
DEMAT .............................................................................................................. 62
PAYMENT .......................................................................................................... 62
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REMITTANCE ..................................................................................................... 62
LOAN & SERVICES ............................................................................................. 62
SAVINGS & DEPOSITS ....................................................................................... 62
CMS ...................................................................................................................... 62
E-TAX ................................................................................................................... 62
INSURANCE .......................................................................................................... 62
NON LIFE INSURANCE .......................................................................................... 62
ECGC CREDIT INSURANCE PRODUCT ................................................................... 62
MSME OVERVIEW ................................................................................................. 62
MSME CREDIT ...................................................................................................... 62
MSME SCHEMES ................................................................................................... 62
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BANKING
While walking in the streets of any town or city you might have
seen some signboards on buildings with names- Canara Bank,
Punjab National Bank, State Bank of India, United Commercial
Bank, etc. If we enter any such building we
will find some kind of a business office. You will see some
employees sitting behind counters dealing with visitors
standing in front of them. We will find that some are
depositing money at one counter while some are receiving
money at another counter. Behind the counters in the office
you will see tables and chairs occupied by officers. On one side
of the office you will also see a chamber (small partitioned
room) where the manager is sitting with papers on his table.
This is the office of a Bank.
We know people earn money to meet their day-to-day
expenses on food, clothing, education of children, housing, etc.
They also need money to meet future expenses on marriage,
higher education of children, house building and other social
functions. These are heavy expenses, which can be met if some
money is saved out of the present income. Saving of money is
also necessary for old age and ill health when it may not be
possible for people to work and earn their living.The necessity
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of saving money was felt by people even in olden days. They
used to hoard money in their homes. With this practice, savings
were available for use whenever needed, but it also involved
the risk of loss by theft, robbery and other accidents. Thus,
people were in need of a place where money could be saved
safely and would be available when required. Banks are such
places where people can deposit their savings with the
assurance that they will be able to withdraw money from the
deposits whenever required. People who wish to borrow money
for business and other purposes can also get loans from the
banks at reasonable rate of interest.
Bank is a lawful organisation, which
accepts deposits that can be withdrawn on
demand. It also lends money to individuals
and business houses that need it.
Banks also render many other useful services like collection of
bills, payment of foreign bills, safe-keeping of jewellery and
other valuable items, certifying the credit-worthiness of
business, and so on.
Banks accept deposits from the general public as well as from
the business community. Any one who saves money for future
can deposit his savings in a bank. Businessmen have income
from sales out of which they have to make payment for
expenses. They can keep their earnings from sales safely
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deposited in banks to meet their expenses from time to time.
Banks give two assurances to the depositors
a. Safety of deposit, and
b. Withdrawal of deposit, whenever needed
On deposits, banks give interest, which adds to the original
amount of deposit. It is a great
incentive to the depositor. It promotes saving habits among the
public. On the basis of deposits banks also grant loans and
advances to farmers, traders and businessmen for productive
purposes. Thereby banks contribute to the economic
development of the country and wellbeing of the people in
general. Banks also charge interest on loans. The rate of
interest is generally higher than the rate of interest allowed on
deposits. Banks also charge fees for the various other services ,
which they render to the business community and public ingeneral. Interest received on loans and fees charged for
services which exceed the interest allowed on deposits are the
main sources of income for banks from which they meet their
administrative expenses. The activities carried on by banks are
called banking activity. Banking as an activity involves
acceptance of deposits and lending or investment of money. Itfacilitates business activities by providing money and certain
services that help in exchange of goods and services.
Therefore, banking is an important auxiliary to trade. It not only
provides money for the production of goods and services but
also facilitates their exchange between the buyer and seller.
You may be aware that there are laws which regulate thebanking activities in our country.
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Depositing money in banks and borrowing from banks are legal
transactions. Banks are also under the control of government.
Hence they enjoy the trust and confidence of people. Also
banks depend a great deal on public confidence. Without public
confidence banks cannot survive.
ROLE OF BANKING
Banks provide funds for business as well as personal needs of
individuals. They play a significant role in the economy of a
nation. Let us know about the role of banking.
It encourages savings habit amongst people and thereby
makes funds available for productive use.
It acts as an intermediary between people having surplus
money and those requiring money for various business
activities.
It facilitates business transactions through receipts and
payments by cheques instead of currency.
It provides loans and advances to businessmen for short
term and long-term purposes.
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It also facilitates import export transactions.
It helps in national development by providing credit to
farmers, small-scale industries and self-employed people
as well as to large business houses which lead to balanced
economic development in the country.
It helps in raising the standard of living of people in
general by providing loans for purchase of consumer
durable goods, houses, automobiles, etc.
TYPES OF BANKS
There are various types of banks which operate in our country
to meet the financial requirements of different categories of
people engaged in agriculture, business, profession, etc. On the
basis of functions, the banking institutions in India may be
divided into the following types:
Types of Banks
10
Central
bank
Commercial
Developme
nt banks
Co-operative
Banks
SpecialisedBanks(EXIM BankSIDBI,
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Public sector banks
Private sector banks
Foreign banks Central Co-
operative Banks
State Co-operative
Banks
Primary CreditSocieties
a) Central Bank
A bank which is entrusted with the functions of guiding and
regulating the banking system of a country is known as its
Central bank. Such a bank does not deal with the general
public. It acts essentially as Governments banker, maintain
deposit accounts of all other banks and advances money to
other banks, when needed. The Central Bank provides guidance
to other banks whenever they face any problem. It is therefore
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known as the bankers bank. The Reserve Bank of India is the
central bank of our country.
The Central Bank maintains record of Government revenue and
expenditure under various heads. It also advises the
Government on monetary and credit policies and decides on
the interest rates for bank deposits and bank loans. In addition,
foreign exchange rates are also determined by the central
bank.
Another important function of the Central Bank is the issuance
of currency notes, regulating their circulation in the country by
different methods. No other bank than the Central Bank can
issue currency.
b) Commercial Banks
Commercial Banks are banking institutions that accept deposits
and grant short-term loans and advances to their customers. In
addition to giving short-term loans, commercial banks also give
medium-term and long-term loan to business enterprises. Now-
a-days some of the commercialbanks are also providing
housing loan on a long-term basis to individuals. There are also
manyother functions of commercial banks, which are
discussed later in this lesson.
Types of Commercial banks: Commercial banks are of three
types i.e., Public sector banks,
Private sector banks and Foreign banks.
(i) Public Sector Banks: These are banks where majority
stake is held by the Government of India or Reserve Bank of
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India. Examples of public sector banks are: State Bank of
India,Corporation Bank, Bank of Boroda and Dena Bank, etc.
(ii) Private Sectors Banks: In case of private sector banks
majority of share capital of the bank is held by private
individuals. These banks are registered as companies with
limited liability. For example: The Jammu and Kashmir Bank
Ltd., Bank of Rajasthan Ltd., Development Credit Bank Ltd, Lord
Krishna Bank Ltd., Bharat Overseas Bank Ltd., Global Trust
Bank, Vysya Bank, etc.
(iii) Foreign Banks: These banks are registered and have their
headquarters in a foreign country but operate their branches in
our country. Some of the foreign banks operating in our country
are Hong Kong and Shanghai Banking Corporation (HSBC),
Citibank, American Express Bank, Standard & Chartered Bank,
Grindlays Bank, etc. The number of foreign banks operating in
our country has increased since the financial sector reforms of
1991.
c) Development Banks
Business often requires medium and long-term capital for
purchase of machinery and equipment,for using latest
technology, or for expansion and modernization. Such financial
assistance is provided by Development Banks. They also
undertake other development measures like Public Sector
Banks
comprise nationalised banks and State Bank of India and its 7
associate banks.
subscribing to the shares and debentures issued by companies,
in case of under subscription of the issue by the public.
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Industrial Finance Corporation of India (IFCI) and State Financial
Corporations (SFCs) are examples of development banks in
India.
d) Co-operative Banks
People who come together to jointly serve their common
interest often form a co-operative society under the Co-
operative Societies Act. When a co-operative society engages
itself in banking business it is called a Co-operative Bank. The
society has to obtain a licence from the Reserve Bank of India
before starting banking business. Any co-operative bank as a
society is to function under the overall supervision of the
Registrar, Co-operative Societies of the State. As regards
banking business, the society must follow the guidelines set
and issued by the Reserve Bank of India.
Types of Co-operative Banks
There are three types of co-operative banks operating in our
country. They are primary credit societies, central co-operative
banks and state co-operative banks. These banks are
organizedat three levels, village or town level, district level and
state level.
(i) Primary Credit Societies: These are formed at the village
or town level with borrower and non-borrower members
residing in one locality. The operations of each society are
restricted to a small area so that the members know each other
and are able to watch over the activities of all members to
prevent frauds.
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(ii) Central Co-operative Banks: These banks operate at the
district level having some of the primary credit societies
belonging to the same district as their members. These banks
provide loans to their members (i.e., primary credit societies)
and function as a link between the primary credit societies and
state co-operative banks.
(iii) State Co-operative Banks: These are the apex (highest
level) co-operative banks in all the states of the country. They
mobilise funds and help in its proper channelization among
various sectors. The money reaches the individual borrowers
from the state co-operativebanks through the central co-
operative banks and the primary credit societies.
e) Specialised Banks
There are some banks, which cater to the requirements and
provide overall support for setting up business in specific areas
of activity. EXIM Bank, SIDBI and NABARD are examples of such
banks. They engage themselves in some specific area or
activity and thus, are called specialised banks. Let us know
about them.
i. Export Import Bank of India (EXIM Bank): If you want to
set up a business for exporting products abroad or importing
products from foreign countries for sale in our country, EXIM
bank can provide you the required support and assistance. The
bank grants loans to exporters and importers and also provides
information about the international market. It gives guidance
about the opportunities for export or import, the risks involved
in it and the competition to be faced, etc.
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ii. Small Industries Development Bank of India (SIDBI): If
you want to establish a small-scale business unit or industry,
loan on easy terms can be available through SIDBI. It also
finances modernisation of small-scale industrial units, use of
new technology and market activities. The aim and focus of
SIDBI is to promote, finance and develop small-scale industries.
iii. National Bank for Agricultural and Rural
Development (NABARD): It is a central or apex institution for
financing agricultural and rural sectors. If a person is engaged
in agriculture or other activities like handloom weaving, fishing,
etc. NABARD can provide credit, both short-term and long-term,
through regional rural banks. It provides financial assistance,
especially, to co-operative credit, in the field of agriculture,
small-scale industries, cottage and village industries
handicrafts and allied economic activities in rural areas.
FUNCTIONS OF COMMERCIAL BANKS
The functions of commercial banks are of two types.
(A) Primary functions; and
(B) Secondary functions.
Let us discuss details about these functions.
(i) Primary functions
The primary functions of a commercial bank include:
a) Accepting deposits; and
b) Granting loans and advances.
a) Accepting deposits
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The most important activity of a commercial bank is to mobilise
deposits from the public. People who have surplus income and
savings find it convenient to deposit the amounts with banks.
Depending upon the nature of deposits, funds deposited with
bank also earn interest. Thus, deposits with the bank grow
along with the interest earned. If the rate of interest is higher,
public are motivated to deposit more funds with the bank.
There is also safety of funds deposited with the bank.
b) Grant of loans and advances
The second important function of a commercial bank is to grant
loans and advances. Such loans and advances are given to
members of the public and to the business community at a
higher rate of interest than allowed by banks on various deposit
accounts. The rate of interest charged on loans and advances
varies according to the purpose and period of loan and also the
mode of
repayment.
i) Loans
A loan is granted for a specific time period. Generally
commercial banks provide short-term loans. But term loans,
i.e., loans for more than a year may also be granted. The
borrower may be given the entire amount in lump sum or in
instalments. Loans are generally granted against the security of
certain assets. A loan is normally repaid in instalments.
However, it may also be repaid in lump sum.
ii) Advances
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An advance is a credit facility provided by the bank to its
customers. It differs from loan in the sense that loans may be
granted for longer period, but advances are normally granted
for a short period of time. Further the purpose of granting
advances is to meet the day-to-day requirements of business.
The rate of interest charged on advances varies from bank to
bank. Interest is charged only on the amount withdrawn and
not on the sanctioned amount.
Types of Advances
Banks grant short-term financial assistance by way of cash
credit, overdraft and bill discounting.
a) Cash Credit
Cash credit is an arrangement whereby the bank allows the
borrower to draw amount upto a specified limit. The amount is
credited to the account of the customer. The customer can
withdraw this amount as and when he requires. Interest is
charged on the amount actually withdrawn. Cash Credit is
granted as per terms and conditions agreed with the
customers.
b) Overdraft
Overdraft is also a credit facility granted by bank. A customer
who has a current account with the bank is allowed to withdraw
more than the amount of credit balance in his account. It is a
temporary arrangement. Overdraft facility with a specified limit
may be allowed either on the security of assets, or on personal
security, or both.
c) Discounting of Bills
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Banks provide short-term finance by discounting bills, that is,
making payment of the amount before the due date of the bills
after deducting a certain rate of discount. The party gets the
funds without waiting for the date of maturity of the bills. In
case any bill is dishonoured on the due date, the bank can
recover the amount from the customer.
ii) Secondary functions
In addition to the primary functions of accepting deposits and
lending money, banks perform a number of other functions,
which are called secondary functions. These are as follow as:-
a. Issuing letters of credit, travellers cheque, etc.
b. Undertaking safe custody of valuables, important document
and securities by providing safe deposit vaults or lockers.
c. Providing customers with facilities of foreign exchange
dealings.
d. Transferring money from one account to another; and from
one branch to another branch of the bank through cheque, pay
order, demand draft.
e. Standing guarantee on behalf of its customers, for making
payment for purchase of goods, machinery, vehicles etc.
f. Collecting and supplying business information.
g. Providing reports on the credit worthiness of customers.
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i. Providing consumer finance for individuals by way of loans on
easy terms for purchase of consumer durables like televisions,
refrigerators, etc.
j. Educational loans to students at reasonable rate of interest
for higher studies, especially for professional courses.
Nationalization
Despite the provisions, control and regulations of Reserve Bank
of India, banks in India except the State Bank of India or SBI,
continued to be owned and operated by private persons. By the
1960s, the Indian banking industry had become an important
tool to facilitate the development of the Indian economy. At the
same time, it had emerged as a large employer, and a debate
had ensued about the nationalization of the banking industry.
Indira Gandhi, then Prime Minister of India, expressed the
intention of the Government of India in the annual conference
of the All India Congress Meeting in a paper entitled "Stray
thoughts on Bank Nationalization." The meeting received the
paper with enthusiasm.
Thereafter, her move was swift and sudden. The Government of
India issued an ordinance and nationalized the 14 largest
commercial banks with effect from the midnight of July 19,
1969. Jayaprakash Narayan, a national leader of India,
described the step as a "masterstroke of political sagacity."
Within two weeks of the issue of the ordinance, the Parliament
passed the Banking Companies (Acquisition and Transfer of
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Undertaking) Bill, and it received the presidential approval on 9
August 1969.
A second dose of nationalization of 6 more commercial banksfollowed in 1980. The stated reason for the nationalization was
to give the government more control of credit delivery. With
the second dose of nationalization, the Government of India
controlled around 91% of the banking business of India. Later
on, in the year 1993, the government merged New Bank of
India with Punjab National Bank. It was the only mergerbetween nationalized banks and resulted in the reduction of the
number of nationalized banks from 20 to 19. After this, until the
1990s, the nationalized banks grew at a pace of around 4%,
closer to the average growth rate of the Indian economy.
Liberalization
Liberalization process has increasingly exposed Indian Industry
to international competition and banking being a service
industry is also not an exception. Banking Sector in India too
faces same strains and challenges at local, national and
international level.
Indian Banks, functionally diverse and geographically
widespread, have played a crucial role in the socio-economic
progress of the country after independence. However, the
growth led to strains in the operational efficiency of banks and
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the accumulation of non-performing assets (NPAs) in their loan
portfolios.
Banks face increasing pressure to stand out from the crowd. Onthe Internet, this means offering your target customers an
increasingly broader range of services than your competitors
and that too in unique way.
All this has resulted in a challenge to managers of banks to
develop the right mix of acquired and internally grown IT
applications which suits customers expectations.
Banking sector reforms and liberalisation process raised many
challenges before Indian Banks and for sustainable
development it has become necessary to face these challenges
effectively:
Intense Competition: The RBI and Government of India kept
banking industry open for the participants of private sector
banks and foreign banks. The foreign banks were also
permitted to set up shop on India either as branches or as
subsidiaries. Due to this lowered entry barriers many new
players have entered the market such as private banks, foreign
banks, non-banking finance companies, etc. The foreign banks
and new private sector banks have spearheaded the hi-tech
revolution. Heavy weight foreign banks with huge base, latest
technology innovative and globally tested products are
spreading their wings and wooing away customers form other
banks. For survival and growth in highly competitive
environment banks have to follow the new Guru Mantra of
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prompt and efficient customer service, which calls for
appropriate customer centric policies and customer friendly
procedures.
Technological Up gradation: Already electronic transfers,
clearings, settlements have reduced translation times. To face
competition it is necessary for banks to absorb the technology
and upgrade their services. However use of High-Tech
sophisticated technology leaves the predominantly rural, poor
and even illiterate mans in the lurch to which the level ofautomation and efficiency of services are immaterial.
Privacy and Safety: Among the most important aspects, of
savings, i.e., safety liquidity and profitability, safety has to be
accorded top most priority. The safety aspect assumes more
significance in the emerging scenario as the economic loss
caused internationally by these types of crimes might risk area
and any lacunae is safety would result in erosion of confidence
and the same might possibly paralyse the entire network. The
areas among other things, which might endanger security in e-
banking can be:
Changes in input data such as changing the amount inledges, increasing the limits in accounts or face value of
cheaques. Though these trends could be detected
consequently, prevention is a major problem with these
types of crimes.
Use of stolen or falsified cards in ATM machines.
Computer forgery could be committed by way of gaining
access to other account, deliberate damage through
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viruses on data stored in computers. In this case, same
criminals might gain entry into the computers and cause
damage to the system. This apart, another through which
security and privacy are maintained. If a hacker has found
out the password, he can cause havoc to the entire
network. Also, if the password is stolen money could be
transferred from one account to another.
Software privacy is another area of potential danger faced
by the banking industry. In this the entire software could
be stolen. If this is done, the hackers could operate a
parallel network.
Human Resources Management: In the recent past the
human resource Policies in banks were mainly guided by the
comcept of permanent employment and its necessary
concomitants of creating career paths, terminal benfits, etc. for
the employees. In todays fast-changing world of employee
mobility both horizontally and vertically and value systems, the
public sector banks need to hire the right talent at market
related compensation and to shed surplus manpower/staff.
Thus many banks are going for URS schemes to reduce the
burden of excessive staff. Schemes like VRS are going to
change the nature of workforce with many senior and
experienced persons opting for it.
The key elements that shall provide a competitive edge to
banking sector will not be physical assets but knowledge assets
and information. Therefore, banks must understand how to
retain knowledge based employees and prevent them to
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migrating to some other organisation. Banks must believe in
people, customer orientation, and continuous improvement of
excellence. Therefore it becomes necessary for banks to
encourage all employees to take risks and work towards
continuous improvements and breakthroughs.
Successful banks overcoming the challenges will be those that
harness technology in a customer friendly yet cost effective
way. This requires enormous internal and external
management and the crux of the solution lies in blendinghuman resources with information technology
E- Banking
With advancement in information and communication
technology, banking services are also made available through
computer. Now, in most of the branches you see computers
being used to record banking transactions. Information about
the balance in your deposit account can be known through
computers. In most banks now a days human or manual teller
counter is being replaced by the Automated Teller Machine
(ATM). Banking activity carried on through computers and other
electronic means of communication is called electronic
banking or e-banking
Automated Teller Machine
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Banks have now installed their own Automated Teller Machine
(ATM) throughout the country at convenient locations. By using
this, customers can deposit or withdraw money from their own
account any time.
Debit Card
Banks are now providing Debit Cards to their customers having
saving or current account in the banks. The customers can use
this card for purchasing goods and services at different places
inlieu of cash. The amount paid through debit card is
automatically debited (deducted) from thecustomers account.
Credit Card
Credit cards are issued by the bank to persons who may or may
not have an account in the bank. Just like debit cards, credit
cards are used to make payments for purchase, so that the
individual does not have to carry cash. Banks allow certain
credit period to the credit cardholder to make payment of the
credit amount. Interest is charged if a cardholder is not able to
pay back the credit extended to him within a stipulated period.
This interest rate is generally quite high.
Net Banking
With the extensive use of computer and Internet, banks have
now started transactions over Internet. The customer having an
account in the bank can log into the banks website and access
his bank account. He can make payments for bills, give
instructions for money transfers, fixed deposits and collection
of bill, etc.
Phone Banking
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In case of phone banking, a customer of the bank having an
account can get information of his account, make banking
transactions like, fixed deposits, money transfers, demand
draft, collection and payment of bills, etc. by using telephone.
As more and more people are now using mobile phones, phone
banking is possible through mobile phones. In mobile phone a
customer can receive and
send messages (SMS) from and to the bank in addition to all
the functions possible through phone banking
CURRENT TRENDS OF BANKING IN INDIA
At the beginning of the 21st century, the biggest banks in the
industrial world have become complex financial organizations
that offer a wide variety of services to international markets
and control billions of dollars in cash and assets. Supported by
the latest technology, banks are working to identify new
business niches, to develop customized services, to implement
innovative strategies and to capture new market opportunities.
With further globalization, consolidation, deregulation and
diversification of the financial industry, the banking sector will
become even more complex.
Although, the banking industry does not operate in the same
manner all over the world, most bankers think about corporate
clients in terms of the following:
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Commercial banking - banking that covers services such
as cash management (money transfers, payroll services,
bank reconcilement), credit services (asset-based
financing, lines of credits, commercial loans or commercial
real estate loans), deposit services (checking or savings
account services) and foreign exchange;
Investment banking - banking that covers an array of
services from asset securitization, coverage of mergers,
acquisitions and corporate restructuring to securities
underwriting, equity private placements and placements
of debt securities with institutional investors.
Over the past decade there has been an increasing
convergence between the activities of investment and
commercial banks, because of the deregulation of the financial
sector. Today, some investment and commercial banking
institutions compete directly in money market operations,
private placements, project finance, bonds underwriting and
financial advisory work.
Furthermore, the modern banking industry has brought greater
business diversification. Some banks in the industrialized world
are entering into investments, underwriting of securities,
portfolio management and the insurance businesses. Taken
together, these changes have made banks an even more
important entity in the global business community.
Today, we are having a fairly well developed banking system
with different classes of banks public sector banks, foreign
banks, private sector banks both old and new generation,
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regional rural banks and co-operative banks with the Reserve
Bank of India as the fountain Head of the system.
In the banking field, there has been an unprecedented growthand diversification of banking industry has been so stupendous
that it has no parallel in the annals of banking anywhere in the
world.
During the last 41 years since 1969, tremendous changes have
taken place in the banking industry. The banks have shed their
traditional functions and have been innovating, improving and
coming out with new types of the services to cater to the
emerging needs of their customers.
Massive branch expansion in the rural and underdeveloped
areas, mobilization of savings and diversification of credit
facilities to the either to neglected areas like small scaleindustrial sector, agricultural and other preferred areas like
export sector etc. have resulted in the widening and deepening
of the financial infrastructure and transferred the fundamental
character of class banking into mass banking.
There has been considerable innovation and diversification in
the business of major commercial banks. Some of them have
engaged in the areas of consumer credit, credit cards,
merchant banking, leasing, mutual funds etc. A few banks have
already set up subsidiaries for merchant banking, leasing and
mutual funds and many more are in the process of doing so.
Some banks have commenced factoring business.
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The major challenges faced by banks today are as to how to
cope with competitive forces and strengthen their balance
sheet. Today, banks are groaning with burden of NPAs. It is
rightly felt that these contaminated debts, if not recovered, will
eat into the very vitals of the banks. Another major anxiety
before the banking industry is the high transaction cost of
carrying Non Performing Assets in their books. The resolution of
the NPA problem requires greater accountability on the part of
the corporate, greater disclosure in the case of defaults, an
efficient credit information sharing system and an appropriate
legal framework pertaining to the banking system so that court
procedures can be streamlined and actual recoveries made
within an acceptable time frame. The banking industry cannot
afford to sustain itself with such high levels of NPAs thus,
lend, but lent for a purpose and with a purpose ought to be
the slogan for salvation.
The Indian banks are subject to tremendous pressures to
perform as otherwise their very survival would be at stake.
Information technology (IT) plays an important role in the
banking sector as it would not only ensure smooth passage of
interrelated transactions over the electric medium but will also
facilitate complex financial product innovation and product
development. The application of IT and e-banking is becoming
the order of the day with the banking system heading towards
virtual banking.
As an extreme case of e-banking World Wide Banking (WWB)
on the pattern of World Wide Web (WWW) can be visualized.
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That means all banks would be interlinked and individual bank
identity, as far as the customer is concerned, does not exist.
There is no need to have large number of physical bank
branches, extension counters. There is no need of person-to-
person physical interaction or dealings. Customers would be
able to do all their banking operations sitting in their offices or
homes and operating through internet. This would be the case
of banking reaching the customers.
Banking landscape is changing very fast. Many new playerswith different muscle powers will enter the market. The
Reserve Bank in its bid to move towards the best international
banking practices will further sharpen the prudential norms and
strengthen its supervisor mechanism. There will be more
transparency and disclosures.
In the days to come, banks are expected to play a very useful
role in the economic development and the emerging market
will provide ample business opportunities to harness. Human
Resources Management is assuming to be of greater
importance. As banking in India will become more and more
knowledge supported, human capital will emerge as the finest
assets of the banking system. Ultimately banking is people and
not just figures.
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FUTURE OF BANKING INDUSTRY IN INDIA
IBMs strategic research unit, the Institute for Business Value,recently released a study called Banking 2015: Defining the
Future of Banking. Worldwide, total financial services revenue
is predicted to experience compound annual growth of 7.1
percent between 2000 and 2015, from $2 trillion to $5.6 trillion.
In the
Asia-Pacific region, IBM predicts a growth rate of about 7.6
percent.
The study forecasts trends in banking for a unique insight into
the competitive forces that bankers will face in the next 10
years. It highlights the emerging business and technology
innovations and societal trends that will propel and shape theindustrys transformation.
According to the survey, the five key trends that will determine
market success in 2015 are customers taking control, niche
competitors, a new workforce, regulated transparency and
sharp focus on technology.
Sanjay Sharma, Corporate Head, Technology, IDBI Bank
believes that business, whether banking or otherwise, has to be
customer-centric.
Agrees Sharad Bishnoi, Assistant Vice-president, Head,
Business Process Re-engineering Group, HDFC Bank, Banking
services require a high level of customer engagement and
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understanding of the requirements for a quality value
proposition. These factors can be sustained long-term by
adopting a customer-centric business strategy.
Similarly, transparency and accountability from regulation and
compliance are also growing. Sharma points out that banks
dealing with the US customers need to comply with
international regulations such as Sarbanes-Oxley, and the
Indian ones from RBI and Clause 49.
The survey goes on to predict that market changes will pose
growing challenges for conventional banks. Sunny Banerjea,
Global Banking Leader for the IBM Institute for Business Value
says, By 2015, we will live in an intensely customer-centric
market dominated by global mega banks and densely
populated by specialist financial services providers. Technology
will also drive fundamental changes in workforce disposition,
which will have substantial follow-on effects for productivity,
efficiency and profitability. These trends are already evident
but as they become entrenched, there will be profound
changes in the competitive drivers of global banking.
Sharma feels that over time banks will focus on specialising inkey segments. The survey suggests that banks must identify
target business areas. It will be essential to maximise
operational efficiency and counter nimble new market entrants
by partnering with specialist providers.
Keeping with the future trends, the study identifies a number of
value-added options for products and market innovation. These
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are mortgages, RFID, service packaging and customer
integration.
Says Bishnoi, Service packaging and customer integrationhave started already and I believe will only increase in future.
Basic products in banking being limited in number, added
flavours and value additions are gradually coming to the
forefront. Two of the most critical aspects will be: packaging
more customised products to suit a customer need and
customer integration leading to better portfolio managementat a more granular level.
However, Sharma feels that it is the mortgage and RFID
segments which are more promising. Though mortgages have
operational complexities they are innovative products for
customers. For instance, customers can avail of different cash-
back offers. Similarly, RFID also has great potential to leverage
business. Banks can utilise this technology to understand
customers needs and for issues such as customer
authentication.
According to Swarup Choudhury, Director, FSS, IBM, each bank
must decide on a strategy that fits its customers needs.Banks will need special strategies to cater to a far more
discerning and controlling customer, he says.
He predicts, Banking customers will demand more advocacy,
personal security and control in their banking relationships.
Banks will source products and services from many specialised
and best-in-class service providers, including independents and
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other banks providing white-label products and services. They
will partner actively with providers to improve their capabilities
without locking up their own capital and their ability to address
changing demand cycles.
UNION BANK OF INDIA
INTRODUCTION
Union Bank of India (UBI) (BSE: 532477) is one of India's largest
state-owned banks (the government owns 55.43% of its share
capital), is listed on the Forbes 2000. It has assets of USD 13.45
billion and all the bank's branches have been networked with
its 1135 ATMs. Its online Tele-banking facility are available to
all its Core Banking Customers - individual as well as corporate.
It has representative offices in Abu Dhabi, United Arab
Emirates, and Shanghai, Peoples Republic of China, and a
branch in Hong Kong.
HISTORY
Union Bank of India (UBI) was registered on 11 November 1919
as a limited company in Mumbai and was inaugurated by
Mahatma Gandhi. At the time of India's Independence in 1947,
UBI still only had four branches - three in Mumbai and one in
Saurashtra, all concentrated in key trade centres. After
Independence UBI accelerated its growth and by the time the
government nationalized it in 1969, it had grown to 240
branches in 28 states. Shortly after nationalization, UBI merged
in Belgaum Bank, a private sector bank established in 1930
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that had itself merged in a bank in 1964, the Shri Jadeya
Shankarling Bank. Then in 1985 UBI merged in Miraj State
Bank, which had been established in 1929. In 1999 the Reserve
Bank of India requested that UBI acquire Sikkim Bank in a
rescue after extensive irregularities had been discovered at the
non-scheduled bank. Sikkim Bank had eight branches located in
the North-east, which was attractive to UBI.
UBI began its international expansion in 2007 with the opening
of representative offices in Abu Dhabi, United Arab Emirates,
and Shanghai, Peoples Republic of China. The next year, UBI
established a branch in Hong Kong, its first branch outside
India. In 2009, UBI opened a representative office in Sydney,
Australia.
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,
Mahatama Gandhi. Since that the golden moment, Union Bank
of India has this far unflinchingly travelled the arduous road to
successful banking........ a journey that spans 88 years. We at
Union Bank of India, reiterate the objective of our inception to
the profound thoughts of the great Mahatama... "We should
have the ability to carry on a big bank, to manage
efficiently crores of rupees in the course of our national
activities. Though we have not many banks among us, it
does not follow that we are not capable of efficiently
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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 effecient, vlaue-
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 organisation lien 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 57.07% 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. The Bank further allotted
1,92,14,515 equity shares of Rs. 10/- each to Government of
India on preferential basis in the Month of March, 2011.
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Presently 42.93 % of Share Capital is presently held by
Institutions, Individuals and Others.
Over the years, the Bank has earned the reputation of being a
techno-savvy and is a front runner among public sector banks
in modern-day banking trends. It is one of the pioneer public
sector banks, which launched Core Banking Solution in 2002.
Under this solution umbrella, All Branches of the Bank have
been 1135 networked ATMs, with online Telebanking facility
made available to all its Core Banking Customers - individual
as well as corporate. In addition to this, the versatile Internet
Banking provides extensive information pertainning 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.
VISSION
To become the bank of first choice in our chosen areas by
building benificial and lasting relationship with customer
through a process of continuous improvement
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CORPORATE MISSION
A logical extension of 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
area 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 the 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 customer
efficiently and handle technology banking with ease.
BOARD OF DIRECTORS
Shri M.V.Nair (Chairman &
Managing Director)
Shri S.C.Kalia (Executive
Director)
Shri S.S. Mundra (Executive
Director)
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Shri K.V.Eapen
(Government of India Nominee)
Smt. Meena Hemchandra (Government
of India Nominee
On the
recommendation of RBI)
Shri N. Shankar (Workmen
Director)
Shri B.N. Bhattacharjee ( Officer
Employee Director)
Dr. Gulfam Mujibi (Part- time
non official director)
Shri B.M. Sharma ( CharteredAccountant Director)
Prof. M.S. Sriram ( Shareholder
Director)
Shri Arun Kumar Nanda (Shareholder
Director)
Shri S. Ravi
(Shareholder Director)
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FINANCIAL STATEMENT AS ON YEAR
ENDED 2011
Net Interest Income for FY11 up 48.28% to Rs 6216 crore
from Rs 4192 crore in FY10
Net Interest Margin for FY11 was 3.33%, up from 2.71% in
FY10
Operating Profit for FY11 up 17.66% to Rs 4305 crore from
Rs 3659 crore in FY10.
The Bank had made provisions towards Pension and
Gratuity liability of Rs 1265 crore during the year 2010-11.
Net Profit for FY11 stood at Rs 2082 crore compared to Rs
2075 crore in FY10.
Return on average assets in FY11 was 1.05% compared to
1.25% in FY10
Return on equity in FY11 was 18.68% compared to 23.69%
in FY10
Earning per share in FY11 was Rs. 39.71 compared to Rs.
41.08 in FY10
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Cost-to-income ratio stood at 47.85% in FY11 from 40.66%
in FY10.
Gross NPA ratio declined from 2.79% in Q2/FY11 to 2.37%
in Q4/FY11.
Provision Coverage ratio for FY11 stood at 67.58%.
BALANCE SHEET
Balance Sheet size of the Bank increased by 20.90% to Rs
235964 crore as on March 31, 2011 from Rs 195162 croreas on March 31, 2010
Global Business grew by 22.04%, from Rs. 291289 crore to
Rs 355483 crore as on March 31, 2011
Domestic Deposits increased from Rs 169670 cr. to Rs
201891 cr,, a growth of 18.99%. Global Deposits increased
from Rs 170040 crore (Mar 2010) to Rs. 202461 crore (Mar
2011), recording a growth rate of 19.07%
CASA deposits grew by 19.18% to Rs. 64307 crore from Rs
53957 crore in the previous year. Despite higher term
deposit rates prevailing during the year, CASA share in
total deposits was maintained at 31.76%.
Domestic Advances increased from Rs 118272 cr. to Rs
147081 cr., a growth of 24.35%. Global Advances
increased from Rs 121249 crore (Mar 2010) to Rs. 153022
crore (Mar 2011), recording a growth rate of 26.20%
Credit-Deposit ratio for the year 2010-11 stood at 78.11%
compared to 71.31% in FY10
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Retail advances grew by 20.22% to Rs 16238 crore as of
March 2011 from Rs 13506 crore in the previous year.
Agriculture advances increased from Rs 18464 crore (Mar
2010) to Rs 21046 crore, a growth of 13.98%.
PERSONAL BANKING
Accounts and deposits
Union Deposits Reinvestment Certificate
Scheme:
Multi Gains Savings Account (MGSA) Scheme
requires maintaining a minimum balance of Rs.25000/- in a
savings account. You can either upgrade your existing savings
account to MGSA by filling in a simple declaration form OR
open a new MGSA account. Interest will be paid quarterly in the
account as against half-yearly in a normal savings account.
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Free Services
A Credit Card will be issued free for the first year with a limit of
Rs.25000/- to the individual OR to either of the joint account
holder. An International Debit Card will be issued free to the
individual account holder OR either of the joint account holder
wherever the ATM facility is available. A maximum of two free
remittances to anywhere in India aggregating to Rs.25000/- will
be allowed in a month. Local / outstation cheques of up to
Rs.15000/- will be collected free of charge. The account holder
will be provided with 10 cheque books free of cost during a
financial year, subject to satisfactory utilization of the cheque
leaves. Interest will be paid for unforseen delays in collection of
instruments of MGSA account holders. If you desire, your MGSA
account can be transferred to any of our branches in India free
of cost.
Senior Citizen Scheme
Union Bank
offers an additional rate component (over and above the
normal interest rates applicable) to senior citizen on any size of
deposit in all of its domestic term deposit schemes.
This additional rate component, applicable to domestic term
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deposits of one year and above is 0.50% over the normal rate.
ELIGIBILITY
Any person who has completed the age of 60 years is treatedas a senior citizen for obtaining the benefit of the additional
interest.
DOCUMENTATION
At the time of opening of a new deposit account, the senior
citizen may produce any of the following documents as proof of
age.
1) Senior School Leaving Certificate indicating date of birth.
2) LIC policy
3) Voters Identity Card
4) Pension Payment Order
5) Birth Certificate issued by the competent authority
6) Passport7) Any other document acceptable to the bank
VERIFICATION
Once the age of a senior citizen is verified for accepting
deposit under the special scheme for senior citizens, no further
proof of age is required while accepting subsequent deposits or
for renewal of deposit of the senior citizen.
No Frills Saving Account
Open a No Frills saving account with UNION BANK OF
INDIA and avail world class banking facilities maintaining
nominal minimum balance.
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Salient Features of NO FRILLS SAVING ACCOUNT
All resident individuals eligible to open a "No frills saving
account" subject to the conditions that only one memberof the family can open such account in single/joint
name/s.
Minimum balance required in the account is Rs.25/- in
non-CBS branches and in CBS branches average quarterly
balance of Rs.25/-
No penalty for non-maintenance of prescribed
minimum/average quarterly balance.
No cequebook facility will be available.
One ATM / International debit card will be issued to the
account holder.
Withdrawal of cash will be available only through ATM
wherever online ATM facility is available. At other
branches, withdrawals will be through withdrawal slip.
Number of free customer induced debit entries will be
restricted to 30 per half year including debit entries
through ECS/ATM. Entries above 30 will be charged @
Rs.5/- per entry.
Total credits in the account should not exceed
Rs.100000/- in a year.
There is no restriction on entries for deposit of
Cash/Cheques in the account.
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Nomination facility is available.
The balance in all the accounts of the accountholders
taken together in the bank should not exceed Rs.50,000/-.
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48
Union Super Salary Account
USSA is a unique product packaged to suit the salaried class,
with salient features as under:
Employees of any Corporate, Institution, Business
Organisation, Govt. Dept., etc. with employee strength of
minimum 15 and minimum net monthly salary
disbursement not less than Rs.1.50 lacs, can open USSA
with us.
Net salary of an individual can be below Rs10000/-, but
the average monthly salary size of the employees of the
Organisation should be Rs10000/- or above.
Minimum 15 employees should open account with us at
entry level .
Comprehensive Welcome Kit, containing International
Debit Card, Internet Banking (Union e-Banking) PIN, Phone
Banking (Union Dial) PIN and Multicity Cheque Book, is
provided to the USSA holder at the time of opening. The
Welcome Kit facilitates the USSA holder Any Where/Any
Time Banking of his choice, as under:-
ATM Banking
Net Banking
Phone Banking
Branch Banking
USSA holder can use his Debit Card at over 1200 Union
Bank ATMs at various locations in India, free of cost.
USSA holder can also access,free of cost , around 32000
ATMs of other Banks, for cash withdrawals in India.
USSA holder can also access over 1 million ATMs, globally,
bearing VISA logo
USSA holder can transact through internet (Union e-Banking) from his place of residence/work or anywhere,
any time.
USSA holder can, by dialling the telephone numbers
specified, enjoy the benefits of phone banking (Union
UCCA is the Premium Current AccountProduct suited for
Traders and Business Class.
Based on the previous month's Average Monthly Balance(AMB)
maintained,free facilities are allowed in UCCA.There are four
kinds of AMB, recognized,for this purposeas follows: -
Rs. 50,000
Rs. 1,00,000 Rs. 5,00,000
Rs. 25,00,000
Month for this purpose is rerckoned as the period from 16th of
a calendar month to 15th of the next calendar month.
All the above facilities entail the following additional benefits to
the UCCA holder:
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Eligibility-
Indian Citizen - 21 years and above.
Either single account or joint account with other familymembers viz.(father, mother, spouse or son ) 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(Internal method of the bank).
Purpose-
Purchase/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.
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Union Tax Saver
Eligibility: All individuals and HUF having PAN are eligible to
invest in this product. Firms, Companies, Trust, Societies,
Clubs, Institutions, Corporates etc., are not allowed to invest in
this product.
Types of term deposit: The deposit can be of Single holder
type or Joint holder type.
The single holder type of deposit shall be issued to an
individual for himself or in the capacity of the Karta of the
Hindu undivided family. The joint holder type of deposit receipt
may be issued jointly to two adults or jointly to an adult and a
minor and payable to either of the holders or to the survivor.
In case of joint holder type of deposit, the deduction from
income under section 80C of the Act shall be available only to
the first holder of the deposit.
Investment: The amount to be invested in the term deposit of
the Bank shall be a minimum of Rs 5000/- and in multiples of
Rs 1000/- thereof and maximum limited to Rs 100000/- in a
financial year. The product will be available for investment,
until further announcement or otherwise withdrawn, as the
case may be.
Period of deposit: Deposit will be accepted for a minimum
period of 5 years
RETAIL LOANS
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Union Health
Eligibility-
Any qualified medical practitioner / Dentist
in the age group of 25 to 60 years with minimum three
years experience and in the age group of 25 to 60 years.
Firms / Companies engaged in medical profession in which
Doctors / Dentist are Partners or Directors or the
Proprietor.
Union Miles
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54
Union Miles Scheme is offered to individuals /firms for vehicle
finance for thier personal use.
Eligibility- Individuals above 18 years of age
Permanent employee of Central/State/Defence/Police
Force/Public or Joint Sector Undertaking/reputed firms/
established Educational Inst.
Professional/Businessmen having regular income.
Borrower has at least minimum services to liquidate the loan
1 year prior to retirement.
Firms / Companies.
Purpose-
For Purchase of new two/four wheelers, for personal or
professional use
Second hand vehicles upto 3 years old also eligible.
Objective & Purpose-
The scheme aims at providing financial
assistance on reasonable terms to the poor and needy students
to undertake basic education and to meritorious students that
they may pursue higher or professional or technical education.
Eligibility-
Student Eligibility : Indian citizen
Secured admission to the concerned institute in India or
abroad through an appropriate selection process and
cleared the qualifying examination,if any
Courses Eligibility(Indicative List) :
a. Studies in India
Graduation/Post-Graduation
Professional courses Management courses
b. Studies Abroad :
Graduation: For job-oriented professional or technical
courses offered by reputed universities
Post-Graduation: MCA, MBA, MS and such other courses
Courses conducted by CIMA, London, CPA, USA., and such
other institution
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UNION CASH
Eligibility-
Retired employees of Government / Semi
Government undertakings, Banks and other reputed private
organisations etc. who draw fixed income / pension through our
Bank.
Purpose-
To meet financial requirements.
UNION SMILE
Eligibility-
Pensioners & salaried class who are drawing their
pension/ salary through Union Bank of India.
Purpose-
To meet unforeseen medical expenses, timely
payment of dues to State Electricity Board, Telephone, School
fees and water charge and other such needs.
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CARDS
We can Shop with Union Banks
International Credit Card. And pay at your own sweet
convenience. It will bridge the gap between
wanting and having. Get it now and see your tensions melt
away. Union Bank in association with VISA
International offers Global credit card- Union Card exclusively
to its customers.
International Debit Card-
ATM SERVICES:A T M (Automated Teller Machine) facilitates the customer to do
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Banking transactions such as Cash withdrawal, balance
enquiry, obtaining mini-statement, transfer of funds between
his/her own accounts etc. Union Bank of India tied up with Visa
and Master for issuing International Debit Cards to the
customers of all its branches. The Debit Card provides ANY
TIME / ANY WHERE Banking to the customers. Presently, Bank
has 2200 ATMs (As on 30.11.2009) which are on-line ,
conveniently located and spread across the country. The Debit
Card can also be used for making purchases. The daily
withdrawal limit through ATMs is Rs.25000/- and the limit for
making purchases is Rs.25,000/- (combined limit Rs.50,000/-).
Issue of ATM cum Debit Card to customer is made very simple
and most convenient. A Readykit containing both Debit Card
and Pin are handed over to the customer immediately on
opening of the account and in case of existing customers, the
same is provided immediately on demand. The Debit Card isactivated on the next working day. There is absolutely no
waiting period for obtaining the Debit Card from the Bank.
Experience for yourself by opening an account with any of our
CBS branches and getting the Readykit instantly. .
The Debit card gets activated only when it is used alongwith
PIN at ATM for cash withdrawal. Only after the first transaction
at ATM, the customer will be able to use the Debit Card for
making purchases.
For providing better facility and wider acceptance of the Debit
Card, the Bank has entered into ATM sharing arrangements
with Cash Tree Group, SBI group, NFS group and VISA. Under
these arrangements Union Bank cardholder can access over
32000 ATMs of 42 banks across the country
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International Transactions 2% Currency Conversion charges
extra
Other Benefits:
1.Free Insurance against Accidental death of principal cardholder Rs.2.00 lacs and in case of Add on cardholder Rs.1.00
lac.
2. Lost card liability restricted to Rs.1,000 from the time of
reporting the loss.
3. Multiple account access : The customer can get 3 accounts
linked to the Card.
4. Issue of Add on Card in case of Joint accounts with Either or
Survivor mandate.
UNION DIAL
Union Dial", the On-line call centre facility of Union Bank of
India comes absolutely free for the customers. Contact your
branch manager for availing the facility, get your PIN and enjoy
banking from your home, office or anywhere in the world.
Services
Union Bank of India offers you a wide range of services through
IVR such as :
1. Account Information
2. Change Pin
3. Transaction Posting
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INSURANCE Union Bank has taken lot of newinitiatives for the benefit of our valued customers. Along with
Banking, we are one stop shop for customers all financial
needs. We provide many platforms for proper
investment like Insurance, Mutual Funds etc; believe it or not
this is all under one roof. All this gives you peace of mind and
pride of being the customer of Union Bank
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.
LIFE INSURANCE
Bank is distributing Life Insurance product under corporate
agency tie-up with Star Union Dia-ichi (SUD) Life Insurance
Co. Ltd. which is the Joint Venture of Bank of India, Union
Bank of India & Dia-ichi Life Insurance Co. Japan. SUDcomes up with variety of products to cater to the needs of
different Customer Groups. We are selling the following
products of the Insurance Company:
Dhan Suraksha (ULIP Endowment Plan)
Dhan Suraksha Premium (ULIP Endowment Plan)
Prabhat Tara (Unit Linked Child Benefit Plan)
Dhruv Tara (Unit Linked Pension Plan)
Jeevan Safar (Traditional Plan : Endowment + Whole Life)
Ashiana Suraksha (Covering Home Loan Borrowers)
Siksha Suraksha (Covering Education Loan)
Non life Insurance - Corporate Agency
with The New India Assurance Co Ltd
The New India has around 180 different non-life insurance
products ranging from insurance of bullock cart to satellite
catering to cross section of Society, Trade Industry,
Commerce and individuals.
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Branches are marketing following traditional policies
covering.
Stock in Trade
Plant and Machinery
Vehicles
Goods in Transit
Buildings
Office equipments
Milch Animals
Agriculture Machinery & Implements.
In addition to the above Branches are also marketing personal
line product such as:
House holders policy
Medi-Claim Policy
Personal Accident Policy
Overseas Travel Policy
Coverage Introduced on Pan India basis. All branches are
marketing this product.
UNION HEALTH INSURANCE
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Mediclaim Insurance Product in tie-up
with The New India Assurance Co Ltd,which will provide the
insurance cover.Scheme available for Union Bank Customers,
irrespective of the fact whether they are maintaining
SB/CD/Deposit Account or having Demat, Borrower Account,
Debit Card and Credit Card. Group Floater Insurance for a family
of maximum four persons (Customer, his/her spouse and two
dependent children). Entry up to 65 years of age and it can be
renewed up to the age of 80 years
Sum Assured is offered in the range of Rs.50,000/- to
Rs.5,00,000/- per family, as per the Insureds desire. Very
competitive premium due to group-floater nature of the product.
Premium paid under this policy will be eligible for deduction
under section 80D of Income Tax Act
DEMAT
.
UNION DEMATUnion Bank of India now offers you
the power of the value-added, service-oriented Demat account-
Union Demat. Union Bank is Depository participant of Central
Depository Services Ltd.
To carter to your individual needs as diverse as your portfolio,
Union Demat will empower you with hassle-free, fast and
accurate electronic transactions. Plus you get Union Bank's
quality service which you are used to, at all times.
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