At the Beginning of the 21st Century1

8/3/2019 At the Beginning of the 21st Century1

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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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http://www.mbaknol.com/business-finance/role-of-information-technology-it-in-the-banking-sector/http://www.mbaknol.com/business-finance/role-of-information-technology-it-in-the-banking-sector/http://www.mbaknol.com/business-finance/role-of-information-technology-it-in-the-banking-sector/http://www.mbaknol.com/business-finance/role-of-information-technology-it-in-the-banking-sector/


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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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51

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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Documents

At the Beginning of the 21st Century1