Professional Documents
Culture Documents
Finance is the set of activities dealing with the management of funds. More specifically, it is the decision of
collection and use of funds. It is a branch of economics that studies the management of money and other
assets.
Finance is also the science and art of determining if the funds of an organization are being used properly.
Through financial analysis, companies and businesses can take decisions and corrective actions towards the
sources of income and the expenses and investments that need to be made in order to stay competitive.
Finance is the life blood of business. It flows in mostly from scale of goods and services. It flows out for
meeting various types of expenditure. The activating element in any business which may be on industrial or
commercial undertaking is the finance.
Business finance has been defined as those activities which have to do with the provision and management
of funds for the satisfactory conduct of a business. Business finance is defined as that business activity
which is concerned with the acquisition and conservation of capital funds in meeting the financial needs and
overall objectives of business enterprises.
So we can say business finance is mainly developed around three major objectives.
Firstly, to obtain an adequate supply of capital for the needs of the business,
Secondly, to conserve and increase the capital through better management,
Thirdly, to make profit from the use of funds this is an overall objective of a business enterprise.
Before industrial revolution, finance was not of much importance. The methods of production were simple.
For example, the artisan used to work in open small hut. He had simple tools mostly made by himself.
Labour at that time was more important than capital and finance did not pose any problem. Production in
those days was, therefore labour intensive.
interrelationship, are also part of the system. The structure of a financial system in any economy is as
follows:
UNORGANISED MARKETS
In these markets consist of many lenders, indigenous bankers, transfers and private chit funds etc. whose
activities are not controlled by RBI. Recently the RBI has taken steps to bring private function companies
and chit funds its strict control but using non banking financial companies directions in 1998.
ORGANISED MARKETS
In these markets there are standardized rules and regulations by Reserve Bank of India or other
regulatory bodies. The organized markets can be further classified into two. They are:
1) Capital markets.
2) Money markets.
CAPITAL MARKET: It is a market for long term funds which have a long or indefinite maturity. Capital
market further divided into three mainly:
a) Industrial Security market: It is a market for industry security namely equity shares or ordinary
shares, preference share, debentures or bonds. It is a market where industrial concern raises their
capital or debt by assuring appropriate instruments. It can be further subdivided into two. They are:
*Information has been collected from the book A Hand book of banking by N. S. Toor
b) Government Securities Market: It is also called gilt-edged securities market. It is a market where
government securities are traded (long term securities)
FINANCIAL INSTRUMENTS
A financial instrument refers to these documents which represent financial claims on assets.
Financial instrument can also be called financial securities. These instruments are classified into
a) PRIMARY SECURITIES: Shares and debentures issued directly to Public.
b) SECONDARY SECURITIES: These securities issued by some intermediaries ex; UTI and
Mutual fund again these securities may be classified on the basis of duration as follows.
Short Term Securities: Within one year ex; bills of exchange.
Medium Term Security: Maturity period between 1-5 years ex; debentures.
Long Term Securities: Maturity period more than 5 years ex; Gilts.
FINANCIAL SERVICES
MEANING OF BANK
Banking is one of the most important sectors of business and finance that assists the world of commerce to
keep on running. Without banks and the banking services that they provide, commerce and trade would
collapse and credit would become virtually extinct. As the decades progress many new concepts are being
introduced into banking. At their most basic, banks hold money on behalf of customers, which is payable to
the customer on demand, either by appearing at the bank for a withdrawal or by writing a check to a third
party. Banks use the money they hold to finance loans, which they make to businesses and individuals to pay
for operations, mortgages, education expenses, and any number of other things. Many banks also perform
other services for a fee; for instance they offer certified checks to customers guaranteeing payment to third
parties. In some countries they may provide investment and insurance services. With the exception of
Islamic banks, they pay interest on deposits and receive interest on their loans. Banks are regulated by the
laws and central banks of their home countries; normally they must receive a charter to engage in business.
Banks are usually organized as corporations.
DEFINATION OF BANK
An organization, usually a corporation, chartered by a state or federal government, which does most or all of
the following: receives demand deposits and time deposits, honours instruments drawn on them, and pays
interest on them; discounts notes, makes loans, and invests in securities; collects checks, drafts, and notes;
certifies depositor's checks; and issues drafts and cashier's checks.
CLASSIFICATION OF BANK
Banks are classified into various types based on the function they perform. They are as follows:
1. COMMERCIAL BANK:
Commercial banks perform all the business transactions of a typical bank. They accept saving
bank deposits, fixed deposits and current deposits which are repayable on demand or on short notice.
*Information has been collected from the book A Hand book of banking by N. S. Toor
Likewise, they lend or invest only for short durations. They provide funds only for short term needs
of trade and commerce. These banks cannot invest credits and overdrafts as they are expected to meet
the immediate requirement of depositors. The commercial banks provide a vital service to its
customers, a simple means of medium of exchange called cheques. They also perform a large number
of agency functions to their customers for which they charge a commission.
3. EXCHANGE BANKS:
Exchange banks are known as foreign banks or foreign exchange banks. These banks also
provide foreign exchange for import trade. Their main function is to make international payment
through the purchase and sale of exchange bills. The exchange bank provides assistance in the
conversion of currencies. They discount foreign exchange bills which are used in foreign trade.
4. CO-OPERATIVE BANKS:
Co-operative banks are performed to meet the meet the banking requirements of
consumers. They are established in urban as well as rural areas. In rural areas, the bank provides
finance to agriculture and in urban area it provides finance to buy consumer goods. These banks
function like commercial banks receiving deposits and lending money. They provide short and
medium term loans. As they are formed on cooperative principles, they are more service oriented
rather than profit. The bank provides credit at lower rates of interest to people of small means like
small cultivators,
artisans, petty shop-keepers etc. They have been classified into land development banks or land
mortgage banks and urban credit-oriented banks.
5. SAVINGS BANK:
Savings banks are specialized financial institution establishment to mobilize savings from
the people. They pool the savings of the small incomes of the community. The savings banks
accounts have been provided by all commercial and co-operative banks and even post offices. Saving
bank business has become more prominent than others forms of accounts as it provide various
facilities like frequent withdrawals, attractive rate of interest, the use of cheques etc.
6. CENTRAL BANK (RBI):
Central bank is an apex bank in the country. It brings the entire banking system unified,
controlled and regulated. It is the main source of an efficient banking system in the country. The
monetary policy of a country is formulated and enforced by the central bank. It is responsible for
monetary stability in the country. The expansion and contraction of note issue are managed by the
central bank. It functions as a banker to the government and commercial banks. It assists the
government in the implementation of various economies policies.
FUNCTIONS OF BANKS
Prof. Sayers in his book Modern Banking has described the functions of a modern bank in the following
words: Ordinary banking business consists of changing cash from bank deposits and bank deposits for cash,
transferring bank deposits for cash, transferring bank deposits from one person to another and giving bank
deposits in exchange of bills of exchange, government bonds, the secured promises of businessmen to repay
and so forth.
The various functions of a modern bank are as follows:
1.
deposits, current deposits and savings deposits. People want to keep their cash balances safe for which they
deposit it with a bank. The commercial bank protects the cash of the customers and provides a convenient
method of transferring funds through the use of cheques. It is the obligation of bank to honour cheques
drawn upon the bank, making payment across the counter on demand by the customers to the extent of
money available at the credit of customers account.
Fixed deposits:
A fixed deposit is one where a customer keeps a certain amount of money in a bank for a
specific period. It may be 6months, 1 year, 2 years 3 years or 5 years. The fixed deposit is not
expected to be withdrawn before the expiry of the period.
Saving deposits:
Saving deposits are those deposits on which the bank pays a certain conditions. The customers
are expected to maintain a minimum balance in the account.
Current deposits:
Current deposits are those deposits which can be withdrawn at any time by means of cheques.
The bank does not pay interest on current deposit. A customer who opens a current account has to
*Information has been collected from the book A Hand book of banking by N. S. Toor
maintain a minimum credit balance of Rs. 500. At the same time current holders has to pay service
charge.
2.
Making loans and advancesThe second main function of the commercial banks is to provide loans and advances out of the
money the bank receives by the way of deposits. The bank receives deposits in order to lend the same. It is
this function of a bankers activities which is the largest contributor to the banks profit. Commercial banks
provide various types of loans such as direct loans, cash credit, bills discounted and overdrafts etc. Direct
loans and advances are provided to all types of persons against the security of movable properties.
3. Agency services-
Another important function of a banker is the services offered by them as an agent. The commercial banks render
a significant service by providing to its customers a simple means of medium of exchange called cheques. The cheque
system is considered to be the most developed type of credit instrument. The banks perform miscellaneous functions
such as undertaking the payment subscriptions, insurance premium, rent, etc. On the behalf of the customers they
collect cheques, bills, salaries, pensions, dividends, interests, etc that belongs to the respective accounts of the
customers. The banks perform these functions as per the instructions given by the customers and make payments as
and when directed. For these services they charge a certain amount of fee by means of commission.
4.
General utility servicesA banker performs many general utility personal or miscellaneous services for his customers. The
general utility services include the safe- keeping of valuables and documents, the issue of credit instrument
for easy transfer of funds, collection of credit information regarding the customers, transaction in foreign
exchange and provision of specialized advisory services to the customers.
EVOLUTION OF BANKING
Banking is an ancient business with its history dated back to the 13 th century. When the first bill of exchange
was used as money in the medieval trade. Banking in India as its origin as early has the Vedic period. During
the days of east India Company, it was the turn of the agency house to carry out the banking business. The
general bank of India was the first joint stock bank to be established in the year of 1886. The others that
followed are the Bank of Hindustan and the Bengal Bank. In 1891 the first purely Indian Bank that is United
Commercial Bank came into being. The setting up of Punjab National Bank in 1894 followed it. In 1920,
three bank namely Bank of Bengal (1809), Bank of Bombay (1840), Bank of Madras (1843) were
amalgamated and a new bank, Imperial Bank of India was established. The Reserve Bank of India, which is
the Central bank, was created in 1935, with the passing Reserve Bank of India act in 1934. Later with the
passing of State Bank of India in 1955 the undertaking of Imperial Bank of India was taken over by newly
constituted State Bank of India. In the wake of Swadeshi Movement in 1905 no. of Bank with Indian
Management were established in the country namely Punjab National Bank Ltd. The Bank of Baroda (1908),
Bank of India (1906) Canara Bank Ltd. Indian Bank Ltd, Central Bank of India Ltd. (1911). ON July 19 th
1969, 14 major Banks of the country were nationalized and on 15 th April 1980 six more Commercial Private
Banks were also taken over by the government of India. Banking Industry has achieved a tremendous
progress during the past few years; many Banks and Financial Institution have entered into the market and
have made a rapid growth towards achieving the ultimate object of attaining leadership in Banking Industry.
BANKING PROFILE:
The Indian Banking System can be broadly classified into:
1) Nationalized (Government Owned)
2) Private Banks
3) Specialized Banking Institutions
The RBI as a centralized body monitoring any discrepancies and short coming in the system. Private
Banks has been fast on the uptake and are reorienting their strategies using the internet as the
medium.
effective implementation of monetary policy, linkages among money anf foreign exchange markets
have been enforced.
Modern banking institutions have sought to automation like introduction of computers and other equipments
as well as the wealth of information technology.
The major objective of modernizing banking system is to improve bank operations while maintaining
high level of standards in banking sector.
Banks are viewed as development agents instead of providers of credit to large industries and big business
companies. In India, the banks apart from providing credit to agriculture, trade industry and commerce are
offering a large number of services to the customers. They make payments, collects electricity and water
bills, telephone bills, take buy and sell decisions on behalf of their customers and so on.
Today more and more number of business functions is entrusted on banks. They provide their services to
labourers, petty wage earners, small traders, etc. With the appearance of modern banking system, the rural
credit system with the money lender nearly collapsed.
The modern banks have developed strategies to meet the requirements of common men in achieving
economic and social development.
Objectives of Nationalization
As stated in the Act, the objective of nationalization is to control the heights of the economy
and to meet gradually and enhance the needs of other development of the economy with respect to National
Policy and the objectives. Except this main objective, other specific objectives were:
The government said that nationalization is a major step in the process of public control over the
principal
and direct it towards productive purposes. After the nationalization the banks will be more focused on the
serving farmers, promoting agricultural production and developing rural sectors. Public ownership of
banking will utilize the credit facility towards speculative and other unproductive purposes. Nationalization
will also bring right atmosphere for the development of an adequate amount of professional management in
the field of banking.
Achievements :
After nationalization, the government introduced suitable administrative changes to implement the
objectives enshrined in the Act. The banks started diversifying lending policies. Government set up different
department to handle the proposals. Training centres were established to train the staff. Field officers were
recruited to make contact with the prospective customers. Since nationalization, the performance of banking
system is outstanding in a lot of respects.
The reserve bank of India was nationalized in the year 1948. The instruments used by reserve bank of India
are.
Bank rate
The RBI has tried to help the establishment of financial corporation to provide credit to the
agricultural sector of the economy.
The RBI has promoted regional rural banks with the help of commercial banks to extend
banking facilities to rural areas.
The RBI has taken steps to enable the commercial banks to open branch in foreign countries.
The RBI encourages and provides research in areas of banking
INTRODUCTION TO LOANS
One of the primary functions of the commercial bank is lending. Through lending commercial banks meet
their objective of making profits. The deposits collected from the public cannot be kept idle. It has to be
utilized in order to derive benefits out of it. The bank collects deposits with the objective of lending and
makes profit out of the interest received and paid. Their main aim is to deal in money and provide for those
who need it. The banker performs the job of lending within the framework of statues governing the banking
business, the government policy and guidelines issued by the authorities of the country (RBI in India).The
basic objective of nationalization of commercial banks was to provide funds to the neglected sectors like
agriculture, tiny industries and other weaker sections of the society. Today nearly 40% of the total
commercial bank advances are the priority sectors. Greater part of the commercial bank funds are employed
in the form of loans and advances. Loans bring good money to the bank in the form of profit by charging
interest. Lending function of a commercial bank benefits the bank in the form of profit and the one who
takes loans enjoy the benefit of money required for their activities. The wheels of industry cannot run
without the bank advances. The bank needs to assess the condition of industry or trade or any business
enterprise while making advances.
between the demand and supply of long term requirements. The banks started giving term loans to meet the
long term needs of the industry. The refinance scheme of IDBI encouraged more term lending by
commercial banks. The commercial banks are assisting industrial units by granting term loans, subscribing to
shares and debentures of corporate units and underwriting securities issued of these companies.
being35% of gross income. Maximum Rs.10 lacks for repairs. However, maximum loan amount in
Mumbai and New Delhi may be considered up to Rs.50 lacks. Maximum amount of loan may be
calculated 4 times the annual gross salary or 5 times the annual net salary of the applicant and his/her
spouse whichever is higher in the case of salaried people. The margin for purchase of new
house/flat/construction 15% of cost. And for repair 30% of cost.
1.1 Security Document
Loan agreement.
Letter of guarantee.
Repayment of moratorium upto18 months. Maximum period should not exceed 15 years and 10 years
for house repairs in equated monthly instalments. Free insurance benefits such as insurance of property
against fire allied perils including earth quake and personal accident (death) as per negotiated terms and
conditions to be offered.
Other conditions finance can be extended for purchase of existing flats/house of not older than 15 years.
House loan outside salaried sector can be granted only to income tax assesses in urban areas.
2) Vehicle loans
Purchase of new two/four wheeler for personal/professional use. Purchase of old cars of less 3 years old.
The eligibility is 18 years and above. Permanent employee of central state/defence/police/force/
autonomous bodies/public or joint sector under taking/ reputed firms/ Established Educational
Institutions. Professionals having regular income. Net take home pay (after deduction of instalment) is
rs.2500 for 2 wheeler & branch and irrevocable letter from employer to remit instalments to bank till
liability is liquidated. The borrower should be customer of the bank. Loan amount will be three times of
net income/net annual salary subject to maximum of rs.10 lacks 2of the cost of new vehicle. 50% for old
cars certified by a reputed automated certification agency. The security document should be
Hypothecation of vehicle financed by the bank. Banks lien to be noted with the Transport Authorities.
Guarantee of the spouse. In case unmarried third party guarantee of sufficient means D.P note letter of
guarantee hypothecation of vehicle.
3) Market Makers :To meet requirement for buying and selling securities by offering 2 way quotes. The eligibility for the
market marker who are having minimum net worth of rs.1 crore and are approved by SEBI(Securities and
Exchange Board of India) stock exchange. The loan amount for 3 times the net worth or rs.5 crores
whichever is lower. Advance should be fully secured by way of collateral security in the form of immovable
property or any other security in addition to the securities which are held as part of Market Making operation
4)
To establishing a new industrial unit or for expansion of the existing unit or for modernization, a
detailed
project feasibility report should be obtained. Industrial concerns are usually limited companies or public
sector undertakings, although individuals or partnerships owning small and medium industries cannot be
riled out. An industrial concern may be engaged in more than one industrial activity and may also be
engaged in other activities such as trade, import, export etc. if the borrower is engaged in more than one type
of activity for which finance is required. Credit facilities may be extended by way of cash credit/bills
discounting for working capital and by way of term loans for acquiring capital assets namely, construction of
factory building purchase and installation of machinery, replacement of machinery etc. If the advance is
required for establishing a new industrial unit or for expansion of the existing unit or for modernization, a
detailed project feasibility report should be obtained. The feasibility plan and how advances are proposed to
be used to get with a view to satisfy about the technical feasibility, commercial viability, financial stability
and management competency.
International trade:-
Manual of foreign exchange published by international banking division, central office explains in detail
various types of import and export transaction together with exchange control requirement to be observed by
bank officials as also the systems and procedures prescribed for handling such transaction at branch level.
We will see in brief, credit facilities usually extended to the exporter/importer customers.
Import trade
Finance for import trade could be either fund based or non-fund based or both. The non-fund based credit
facility is in the form of letters of credit. Since such letters of credit (L/C) contain an undertaking by the
bank to pay against presentation documents conforming to the terms and conditions stipulated in the letter of
credit, opening a letter of credit involves a credit decision for which purpose, the proposal has to be
processed in the same manner as it would be, if the proposal were for grant of an advance for an equal
amount. Since the bank relies on goods being imported under letter of credit as a security for payment of
relative bill, the marketability of such goods, taking into account the licensing conditions should also be
considered.
a)
The import of goods is controlled by government of India through import trade control regulation.
The import licenses are issued in 2 copies-customer copy is for the purpose of clearing the imported
goods through customs and exchange control copy to facilitate remittance of foreign exchange in
respect of relative import bill.
b) The funds based import finance generally takes of a back up limits to the letter of credit limit
sanctioned to a customer. Such limits are considered where import of goods is made in economic
order quantities for use in production over a period of time.
7)
Export trade:Credit facilities to exporters are broadly classified as pre-shipment and post-shipment. As the term
indicates, financial assistance extended up to the time of shipping the goods is called pre-shipment advance,
which is controlled in the books under the head Packing credit
Packing credit finance oriented finance and is granted to exporters or manufacturers or sub-suppliers for the
specific purpose of procuring raw materials/ purchasing/manufacturing/ processing/ transporting/
warehousing/ packing and shipping the good
8)
Retail Products:-
In our corporate objectives for business growth retail banking is identified as a thrust area. It is also the
need of the hour to mobilize a good portfolio of retails banking, business, as it provides a major source for
sustaining growth in the industry and will thus ensure our position in the market place. Towards this, our
personal loan products under retails banking have repackaged and re-launched.
Retails banking are a combination of product development and selling strategies, essentially focused on
personal banking segment. It is a great opportunity for banks that already have a wide branch banking and a
large manpower base. The wider reach and staff to support intensive marketing give us an edge to develop
the business. It is an opportunity for branches to improve profitability and develop there own loan book to
generate attractive income. Hence, retail banking is the source that will support branches across the country
in a more sustaining way.
9)
Term loans for development purposes and short term loans for production purposes. Now, there is need to
finance farmers for purchase of land to expand activities and make existing small and marginal units
Economically viable which would enable farmers to diversity their present activities and take up allied
activities. The main objective is to make small and marginal holdings economically viable. To bring follow
lands and waste lands under cultivation. To step up agricultural production and productivity. To increase the
income of share croppers/ tenant farmers/ small and marginal farmers. The eligibility for the small and
marginal farmers who are having less than 5 acres non-irrigated land or less than 2.5 acres of irrigated land.
Share croppers/ tenant farmers. The farmer should have adequate surplus income from his production
activities on the land being financed and other income to repay the bank loan with interest.
The purpose of financing the farmers by way of term loan for purchase of land. (Agriculture/ fallow/ waste
land) and also finance to meet their working capital requirements of cultivation. Financing can also be done
for purchase of land for establishing or diversifying into other allied activities like dairy, poultry etc.
The quantum of loan to be sanctioned depends on:
Quantum of loan should include land purchase cost, development cost and cultivation expenses. The
margin should be:1) Mortgage of purchase land
2) Hypothecation of crops/ asset
3) D. P Note
4) Hypothecation agreement
5) Mortgage of purchased land
The repayment period is 5 to 7 years in half yearly/ yearly instalments depending upon Cropping
pattern including a maximum moratorium period of 12 months In case of any longer period, it will be
referred to regional offices with justification.
INTRODUCTION:
Research design here refers to the methods used to collect the required data for the survey. It is the outline of
the total project. It contains the information stating the objectives of the study, scope of the study
methodology of the study, tools and techniques used for the survey, methods of data collection, limitation of
the study etc. in short research design is the chapter in which the blue print of the whole project is explained.
The research design includes an outline of the study which was conducted at United Bank of India. There
are various types of products and a service offered by UBI, and providing loans to people are one of the
important functions of the bank does. As this research study is mainly based on these schemes, we will
discuss more on the loan schemes provided by United Bank of India.
REVIEW OF LITERATURE:
It is mandatory to scan through the literature which has already gone through the proposed study
subject. Various research works on lending practises of UBI has been very helpful in the successful
conduct of the study. However all such studies concentrate on certain issues and suggest piecemeal
solution. Therefore, a comprehensive study is elusive. The text and academics literature which
helped the study in details are:
RESEARCH METHODOLOGY:
This refers to the method of data description. Descriptive research includes surveys and fact findings
enquire of different kinds. The major purpose of descriptive research is description of the state of affair as it
exists at present. In business research we quite often use the term export facto research for descriptive
research studies.
The main characteristics of this method is that the researcher has no control over the variable, he can only
report what has happened or what is happening. The method of research utilised in descriptive research are
survey methods of all kinds including comparative and correlation methods.
SECONDARY DATA: Secondary data that were collected through published materials like
pamphlets, company books and from the official website that is www.unitedbankofindia.com
interpretation of data after collection. It comprises of brief notes regarding analysis and various methods
through which they may be carried out. It also consists of the data in form of tables, graphs and pie-charts
and its interpretation.
5. SUMMARY OF FINDINGS, CONCLUSIONS AND SUGGESTIONS: The chapter concluded the
project report it comprises of the findings and conclusion draw from the above analysis based on the data
collected and also includes suggestion.
6. QUESTIONAIRRE:
7. ANNEXURE:
8. BIBLIOGRAPHY:
COMPANY PROFILE
History :
United Bank of India was constituted under the Banking Companies (Acquisition and Transfer of
Undertakings) Act, 1970 on July 19, 1969. The Head Office of the Bank was set up at 4 Clive Ghat Street
(presently known as N. C. Dutta Sarani, Kolkata 700 001 which was shifted to its present location at 11
Hemanta Basu Sarani, Kolkata 700001 in 1972 for operational efficiency.
United Bank of India is one of the 14 banks which were nationalised on July 19, 1969. On October 12, 1950,
the name of Bengal Central Bank Limited (established in 1918 as Bengal Central Loan Company Limited)
was changed to United Bank of India Limited for the purpose of amalgamation and on December 18, 1950,
Comilla Banking Corporation Limited (established in 1914), the Camilla Union Bank Limited (established
in 1922), the Hooghly Bank (established 1932) stood amalgamated with the Bank. Subsequently, other banks
namely, Cuttack Bank Limited, Tezpur Industrial Bank Limited, Hindustan Mercantile Limited and Narang
Bank of India Limited were merged with the Bank.
Changes in our Head Office
The Head Office of our Bank was set up at 4 Clive Ghat Street (presently known as N. C. Dutta Sarani,
Kolkata 700001 which was shifted to its present location at 11 Hemanta Basu Sarani, Kolkata 700001 in
1972 for operational efficiency.
Key Milestones
Sr. No.
Year Details
1961 The Cuttack Bank Limited and The Tezpur Bank Limited merged with our Bank
1980 Appointed as convenor of State Level Bankers Committee in West Bengal, Tripura and
Manipur
10
11
12
13
2007 Setup United Bank Socio Economic Development Foundation Trust in 2007 for rendering
assistance to the weaker and under priviledge sections of the society
2007 Setup the first Rural Development & Self Employment Training Institute to provide
residential training to small farmers and unemployed youth free of cost
14
15
Year
2006
2007
National Award for the best bank for excellence in field of Khadi and village industries for
east and north east zones from the Ministry of MSME, Government of India
National Award under Prime Minister Employment Guarantee Programme in north east
zone from the Ministry of MSME, Government of India
OVERVIEW
United Bank of India (UBI) is one of the 14 major banks which were nationalised on July 19, 1969. Its
predecessor the United Bank of India Ltd., was formed in 1950 with the amalgamation of four banks viz.
Comilla Banking Corporation Ltd. (1914), Bengal Central Bank Ltd. (1918), Comilla Union Bank Ltd.
(1922) and Hooghly Bank Ltd. (1932) (which were established in the years indicated in brackets after the
names). The origin of the Bank thus goes back as far as 1914. As against 174 branches, Rs. 147 crores of
deposits and Rs. 112 crores of advances at the time of nationalisation in July, 1969, today the Bank has 1484
branches, over Rs. 54,536 crores of deposits and Rs. 35,727 crores of gross advances as on 31-03-09.
Presently the Bank has a three-tier organisational set-up consisting of the Head Office, 28 Regional Offices
and 1510 branches.
After nationalisation, the Bank expanded its branch network in a big way and actively participated in the
developmental activities, particularly in the rural and semi-urban areas in conformity with the objectives of
nationalisation. In recognition of the role played by the Bank, it was designated as Lead Bank in several
districts and at present it is the Lead Bank in 30 districts in the States of West Bengal, Assam, Manipur and
Tripura. The Bank is also the Convener of the State Level Bankers' Committees (SLBC) for the States of
West Bengal and Tripura.
UBI played a significant role in the spread of banking services in different parts of the country, more
particularly in Eastern and North-Eastern India. UBI has sponsored 4 Regional Rural Banks (RRB) one
each in West Bengal, Assam, Manipur and Tripura. These four RRBs together have over 1000 branches.
United Bank of India has contributed 35% of the share capital/ additional capital to all the four RRBs in
four different states. In its efforts to provide banking services to the people living in the not easily
accessible areas of the Sunderban in West Bengal, UBI had established two floating mobile branches on
motor launches which moved from island to island on different days of the week. The floating mobile
branches were discontinued with the opening of full-fledged branches at the centres which were being
served by the floating mobile branches. UBI is also known as the 'Tea Bank' because of its age-old
association with the financing of tea gardens. It has been the largest lender to the tea industry.
The Bank has three full fledged Overseas Branches one each at Kolkata, New Delhi and Mumbai with fully
equipped dealing room and SWIFT terminal . The operations of 500 branches have been computerised either
fully or partially and Electronic Fund Transfer System came to be implemented in the Bank's branches at
Kolkata, Delhi, Mumbai and Chennai. The Bank has ATMs all over the country and having Cash Tree
arrangement with 11 other Banks.
PRODUCT PROFILE
(1) United Housing Loan Scheme
A shelter which you can call your own has been eluding you so far? Not anymore. With the United Housing
Loan Scheme, almost anyone can now fulfil his long cherished dream of owning a house or a flat of his/ her
choice at most attractive terms.
Eligibility:
Any individual aged 21 years or above having regular income.
Purpose:
Taking over of existing Housing Loan form other Bank/ Financial Institution.
The loan is now extended to those cases also where flats are being constructed by promoters/
developers where immediate mortgage of the property may not be possible.
Quantum of loan:
Quantum of loan depends on the cost of house/flat, applications age, income, repayment capacity etc
Any individual with gross income of Rs.10,000/- and minimum net income of Rs.5,000/- per month.
To be eligible the applicant will be required to get minimum score as per structured scoring Model of
UBI.
Quantum of Loan :
Max. Rs.6 lack.
Margin: 10%
Security:
To be secured by personal guarantee of 1 to 2 persons having adequate worth, otherwise at least 60% of loan
amount to be covered by liquid security in the form of Term Deposits, NSCs, KVPs, LIPs (SV), and Relief
Bonds etc
Eligibility Criteria
For purchase of new car as well as old car
Your Savings/ Current Deposit/ Term Deposit A/c holder with the Bank and fulfill the following criteria
A minimum net income (take home salary for salaried person) of Rs 5,000/- per month.
In respect of working couple, net income of the spouse is considered for the purpose of computing
net income and monthly instalments, provided the spouse joins as co-borrower and monthly
instalment may be realised from the salaries of either of them. In case of salaried person, the
applicant should be in regular service for at least 2 years. Professional and self-employed persons
who are at least 2 years in their profession.
Quantum of Loan:
In case of individuals
Maximum amount of loan is 12.00 lacs in case of new car and Rs. 6.00 lacs in case of old car.
Margin:
If you are a salaried person, with permanent service for at least 3 years, you may apply for the loan.
Quantum of Loan:
The maximum amount of loan shall be Rs 3 lac or 40 months' net salary, whichever is less.
Period of Loan:
The loan shall be disbursed through your Savings Bank A/c other than the account in which your pension is
credited every month. If you are not having any other Savings Bank A/c with the branch, you may open a
Savings A/c with the Branch jointly with another member of your family, preferably with family pensioner
for the purpose of availing of the loan under the Scheme.
2. YourMonthlyNetPensionshouldbeMinimumofRs.5,000/-
4. You must be physically fit and mentally alert to execute the documents. Person(s) in paralytic
condition or bed-ridden is/are not eligible for the loan
Purpose :
Purchase of old house/ flat not old over 35 years from the date of completion of construction.
Quantum of Loan :
Max. Rs. 2 lac provided total deduction including EMI of the loan must not exceed 40% of your net monthly
pension. If your spouse joins as co-borrower and if he/ she is also pensioner drawing pension from the our
branch, pension of both of you shall be considered for determining the quantum of loan within the overall
ceiling.
Repayment Period :
Entire loan has to be liquidated before your attaining 75 years of age. The age of the 1st pensioner or from
whose income (also pensioner), the major recovery of loan will be made, shall be the deciding factor for the
period of loan (subject to maximum repayment period of 10 years). However, where loan is extended for
getting shelter in Old -Age Home total repayment period must not exceed 10 years (120 EMI).
Eligibility
If you are an individual (single or joint) or firm or a company owning house, flat or godown and letting or
leasing it out to bank, insurance company, multinational company, company of good market standing,
reputation and sound financial position, financial institution, financial sound PSU of Govt. of India (not
individuals) and you are interested to take loan against future rentals you may apply for the loan.
Quantum of Loan calculation
Max. Rs. 10 Crore where EMI should not exceed 80% of post tax monthly rent / lease rent receivable (85%
when our bank is tenant) & 80% valueof property t o be mortgaged.
Repayment
The loan is to be repaid within the unexpired period of lease/ tenancy or 8 years whichever is lower.
Security
Margin
20% of the amount of rent receivables or 20% of the value of the house property or on accrued/ surrender
value of other securities.
Processing Charge: 1%
United Bank of India introduces a unique loan scheme against your savings in the form of NSCs/ KVPs/ Life
Insurance Policies (Surrender Value). You can avail up to 100% of the face value of your savings instruments
or even more than that in case of NSCs/ KVPs. The salient features of the scheme are as under:
Eligibility:
Any individual having investment in the form of LIP (Surrender Value)/ NSC/ KVP to cover the loan amount
in his/ her name and be introduced to the bank.
Purpose:
For meeting all types of personal expenses.
Demand loan - Quantum of loan:
a) Against LICI Policy -- 90% of Surrender Value
b) Against NSCs/ KVPs /Relief Bond etc
Other Courses leading to Diploma/ Degree, etc. conducted by Colleges/ Universities approves by
UGC/ Govt./ AICTE/ AIBMS/ ICMS, etc.
Quantum of Loan:
1. For study in India: Max. Rs. 10 lack.
2. For study abroad: Max. Rs. 20 lacks
Other Rules:
Expenses covered by the Loan :
i.
ii.
iii.
iv.
Caution Deposit/ Building Fund/ Refundable Deposit supported by Institution Bills/ Receipts.
v.
vi.
vii.
Any other expenses required to complete the Course like study tours, project work, thesis, etc.
Repayment of Loan:
The loan is to be repaid in 5 to 7 years after commencement of repayment. The repayment will
commence after a moratorium/ repayment holiday which is Course period plus 2 years or 6 months
after getting job whichever is earlier.
Life Insurance Coverage:
To ensure security to student's and borrower's life and against their loan liability and additional loan
component for payment of one-time premium for such insurance coverage may be sanctioned by
bank on request from the customer.
(9)
Objectives:
Providing loan against mortgage of property to the owner of the property. The property may be House/ Flat
or any other commercial property but not agricultural land of any other vacant land.
Purpose:
The loan is meant for general purpose of the borrower to meet any personal/ business requirement except
speculations.
Eligibility:
Any individual in the age bracket of 21-65 years having property to be mortgaged and income to repay the
loan. Company, Partnership firm, Co-operative Society and Trust are, however, not eligible of the loan. Third
party property also cannot be mortgaged for taking a loan.
Quantum of loan:
Term Loan - Maximum Rs.15.00 Lac & OD facility - Max Rs.25.00 lac subject to
1. 24-times of monthly net income.
2. 50% of the value of property.
Total monthly deduction including proposed EMI / Intt on OD should not exceed 50% of the gross monthly income of
the borrower
(10)
Coverage
Eligibility
1. Age of the Applicant: Min. 60 years on the date of sanction
2. Married couples will be eligible as joint borrowers only and
both of them should be of 60 years & above age.
3. Ownership of a residential property (house or flat) located in
India, with clear title
4. Borrower(s) should be residing in the same residence at least
for the last one year and the same be used as their permanent
primary residence.
5. The property should be self occupied one, an approved
Margin
Disbursement
of
1. Periodicity: The loan shall be disbursed as regular monthly or
Loan
i.
Short
term
crop
loans
to
farmers
those
who
are
owner
cultivators/share-
croppers/bargadars.
ii.
KCC can also be issued for meeting the short term production need/working capital needs
in respect of the allied activities like poultry, dairy, pisciculture, floriculture, horticulture
etc.
iii.
KCC schemes also covers the term credits for agriculture and allied activities.
iv.
KCC is issued to individual borrower only on merit and not to corporate body society,
association, club, group etc.
v.
Illiterate and blind persons intending to avail of this facility may be allowed after taking
proper safeguard against misuse and tampering.
4. Purpose
It is intended that both term as well as short term/working capital credit facilities will be provided through
single Kisan Credit Card. The passbook provided to KCC holders are to be divided into three separate
portions for maintaining the records of :a) short term credit / crop loans, b) working capital credit for activities allied to agriculture and c) term credit
(repayable beyond 12 months)
However, it is to be ensured that transaction records of different loan facilities are kept distinct.
5. Credit limit
i.
Minimum credit limit should be Rs.25000/- and maximum Rs.10.00 lac in the form of
working capital and term loan. However, in deserving cases the upper limit may be
enhanced above Rs.10.00 lac which has to be disposed of under the D.P. of the General
Manager in charge of Priority Sector Lending.
ii.
Working capital will be in the form of revolving cash credit and any number of
withdrawals and repayments in the account is allowed with a view to provide flexibility to
the borrower in deciding the appropriate time for withdrawal of the sanctioned limit and
reducing his loan and interest burden.(For ST Crop Loan, Consumption Loan and
repayment of non-institutional loans)
iii.
Term Loan to be sanctioned for purchase of agricultural implements , plant and machinery
and land developing including construction of different types of storage facilities.
iv.
While fixing the limit and sub-limits, entire year's production credit requirement is
reckoned, including those of ancillary activities such as storing, marketing, electric
expenses etc.
v.
Credit limit is fixed on the basis of land holding under cultivation, cropping pattern and
the scale of finance recommended by District/State level technical committee. In the
absence of
such recommendation, the branch may fix appropriate scale of finance for the crop after
getting permission from the concerned Regional Office.
vi.
The branch should also fix season-wise sub-limits within the overall credit limit.
vii.
Contingency expenses, including consumption loan should not exceed 10% of the ST loan
sub-limit subject to maximum Rs.10,000/- till harvesting the benefit of production linking
with family need.
viii. Repayment of loan availed from non-institutional lenders by the farmer borrowers in
addition to consumption/contingency credit limit should not exceed 25% of the ST loan
sub-limit subject to maximum Rs.25,000/-.
Table:1
Year
Amount ( in Crores)
Percentage (%)
2006 - 2007
22,156.11
25.95
2007 - 2008
27,868.11
32.62
2008 - 2009
35,393.55
41.43
Total
85,417.77
100
ANALYSIS:
From the above table it can be analysed that in the year 2006 2007 the total no. of advances was 22,156.11
crore with a 25.95%; in 2007 2008 the total no. of advances was 27,868.11 crore 32.62% and in the year
2008 2009 the amount is 35,393.55 with 41.43%.
Graph: 1
Graph showing total advances from the year 2006 2009
Total advances
26%
41%
2006 - 2007
2007 - 2008
2008 - 2009
33%
INTERPRETATION:
From the above pie- chart it can be inferred that in the year 2007 2008 showed the maximum
advances.
Table 2
Table showing outstanding amount of loan for the years 2006 - 2009.
(a) Housing finance
Year
Percentage (%)
2006 - 2007
1,418.57
31.80
2007 - 2008
1,453.67
32.50
2008 - 2009
1,591.42
35.70
Total
4463.66
100
ANALYSIS:
From the above table it is analysed that when we compare the year 2006 2007 the amount outstanding was
1,418.57 crore with 31.80%. In the year 2007 2008 the amount was 1,453.67 crore with 32.50 % and in the
year 2008 2009 it was 1,591.42 crore with 35.70%.
Graph 2
Graph showing outstanding amount of the loan for the years 2006 - 2009.
(a) Housing finance
Housing finance
32%
36%
2006 - 2007
2007 - 2008
2008 - 2009
33%
INTERPRETATION:
From the above pie- chart it can be inferred that there is continuous growth every year in the housing
finance segment. There is a noticeable growth in the home loan segment which is very profitable to the bank
for their further financial improvement.
Table 3
Table showing outstanding amount of loan for the years 2006 - 2009.
Year
Percentage (%)
2006 - 2007
70.18
23.62
2007 - 2008
80.07
26.96
2008 - 2009
146.81
49.42
Total
297.06
100
(b)
Car
loans
ANALYSIS:
From the above table it is analyzed that when we compare the year 2006 2007 the amount outstanding was
70.18 crore with 23.62% . In the year 2007 2008 the amount was 80.02 crore which shows 26.96% and in
the year 2008 2009 the amount was 146.81 crore with 49.42%.
Graph3
Graph showing outstanding loan for the year 2006 2009.
(b) Car loan.
car loan
160
140
120
100
80
60
40
Percentage
20
0
2006 - 2007
2007 - 2008
2008 - 2009
Year
INTERPRETATION:
From the above graph it can be inferred that in the year 2008 2009 there is a substantial growth in the car
loans as against all previous years.
Graph 4:
Table showing outstanding loan for the year 2006 2009.
(c) Personal loan
Year
Amount( in Crore)
Percentage (%)
2006 - 2007
384.46
28.31
2007 - 2008
425.11
31.32
2008 - 2009
548.24
40.37
Total
1357.81
100
ANALYSIS:
From the above table it is analyzed that when we compare the year 2006 2007 the amount was 384.46
crore which shows 28.31%. In the year 2007 2008 the amount was 425.11 crore which shows 31.32% and
in the year 2008 2009 the amount was 548.24 crore which shows the percentage of 40.37.
Graph 4:
Graph showing outstanding loan for the year 2006 - 2009.
(c) Personal loan
personal loan
600
500
400
300
200
100
0
2006 - 2007
2007 - 2008
2008 - 2009
INTERPRETATION:
From the above mentioned graph it can be interpreted that there is a substantial growth every year in the
personal loans.
Table 5
Table showing outstanding loan for the years 2006 - 2009.
(d) Educational loan
Year
Percentage (%)
2006 - 2007
224.99
26.88
2007 - 2008
276.84
33.09
2008 - 2009
335.07
40.03
Total
836.9
100
ANALYSIS:
From the above table it is analysed that when we compare the year 2006 2007 the amount
outstanding is 224.99 crore with 26.88%. In the year 2007 2008 the outstanding amount is 276.84 crore
with 33.09% and in the year 2008 2009 the outstanding amount is 335.07 crore with 40.03%.
Graph 5
Graph showing outstanding loan for the year 2006 - 2009.
(d) Educational loan
150
Percentage
100
50
0
2006 - 2007
2007 - 2008
2008 - 2009
INTERPRETATION:
From the above graph it is seen that there is a constant growth in the education loan of United Bank of India.
There is a noticeable growth in the education loan segment which is very profitable to the bank for their
further financial improvement
Table 6
Table showing outstanding loans to retail sector for the year 2006 - 2009
Year
Percentage (%)
2006 - 2007
3,469.72
30.28
2007 - 2008
3,727.22
32.54
2008 - 2009
4,260.36
37.18
Total
11,457.3
100
ANALYSIS:
From the above table it is analyzed that when we compare the year 2006 2007 the amount was 3,469.72
crore with 30.28%. In the year 2007 2008 the amount was 3,727.22 crore with 32.54% and in the year
2008 2009 the amount was 4,260.36 crore with 37.18% .
Graph 6
Graph showing outstanding loans to retail sector for the year 2006 - 2009.
Amount in crore
2,000.00
Percentage
1,500.00
1,000.00
500.00
0.00
2006 - 2007
2007 - 2008
2008 - 2009
INTERPRETATION:
From the above graph it can be inferred that there is a moderate growth in the loans of the retail
sector from 2006 - 2009.The maximum growth is in the year 2008 2009.
Table 7
Table showing outstanding loans to corporate sector for the year 2006 2009.
Year
Percentage (%)
2006 - 2007
13,032.09
26.05
2007 - 2008
15,661.44
31.29
2008 - 2009
21,349.41
42.66
Total
50,042.94
100
ANALYSIS:
From the above table it is analysed that when we compare the year 2006 2007 the amount was 13,032.09
crore which shows a percentage of 26.05. In the year 2007 2008 the amount was15,661.44 in crore which
shows the percentage of 31.29 and in the year 2008 2009 the amount was 21,349.41 in crore which shows
the percentage of 42.66.
Graph 7
Graph showing outstanding loans to corporate sector for the year 2006 - 2009.
26%
43%
2006 - 2007
2007 - 2008
31%
2008 - 2009
INTERPRETATION:
From the above pie-chart it is inferred that there is constant growth in the outstanding loans in
corporate sector.
Table 8
Table showing outstanding loans to others which includes priority sector for the year
2006 - 2009.
Year
Percentage (%)
2006 - 2007
6,138.64
24.53
2007 - 2008
8,763.02
35.03
2008 - 2009
10,118.47
40.44
Total
25,020.14
100
ANALYSIS:
From the above table it is analyzed that when we compare the year 2006 2007 the amount was 6,138.64
crore with 24.53%. In the year 2007 2008 the amount was 8,763.02 crore with 35.03% and in the year
2008 2009 the amount was 10,118.47 crore with 40.44%.
Graph 8
Graph showing outstanding loans to others which includes priority sector for the year
2006 - 2009.
Amount in crore
Percentage
6000
4000
2000
0
2006 - 2007
2007 - 2008
2008 - 2009
INTERPRETATION:
From the above graph it can be inferred that there is a noticeable growth in the outstanding loan by others
which includes priority sector which is highly beneficial to the bank.
Table 9
Table showing total outstanding loans to business sector for the year 2006 - 2009.
Year
Percentage (%)
2006 - 2007
22,640.45
26.16
2007 - 2008
28,151.68
32.55
2008 - 2009
35,728.24
41.29
Total
86,520.37
100
ANALYSIS:
From the above table it is analysed that when we compare the year 2006 2007 the amount outstanding was
22,640.45 crore which shows a percentage of 26.16. In the year 2007 2008 the amount was 28,151.68
crore which shows the percentage of 32.55 and in the year 2008 2009 amount was 35,728.24 crore which
shows the percentage of 41.29.
Graph 9
Graph showing outstanding loan to business sector for the year 2006 - 2009.
41%
26%
2006 - 2007
2007 - 2008
33%
2008 - 2009
INTERPRETATION:
From the above graph it is inferred that there is a substantial growth in the outstanding loan in business
sector which concludes that it is highly advantageous to the bank for their further financial improvement.
Table 10
Table showing total outstanding retail advances for the year 2006 - 2007
Year
Percentage (%)
2006 - 2007
3,469.72
30.28
2007 - 2008
3,727.22
32.53
2008 - 2009
4,260.36
37.19
Total
11,457.3
100
ANALYSIS:
From the above table it is concluded that when we compare the year 2006 2007 the amount outstanding
was 3,469.72 crore with 30.28%. In the year 2007 2008 the outstanding amount was 3,727.22 crore with
32.53% and in the year 2008 2009 the amount is 4,260.36 crore with 37.19%.
Graph 10
Graph showing total outstanding retail advances for the year 2006 2009.
2,000.00
Percentage
1,500.00
1,000.00
500.00
0.00
2006 - 2007
2007 - 2008
2008 - 2009
INTERPRETATION:
From the above graph it can be inferred that there is a sequential growth year wise which is highly beneficial
to the United Bank of India.
Table 11:
Table showing term loans for the years 2006 -2009
Year
Percentage (%)
2006 - 2007
13,983.65
30.28
2007 - 2008
19,200.56
32.53
2008 - 2009
25,991.64
37.19
Total
59,175.85
100
ANALYSIS:
From the table it can be analysed that in the year 2006 2007 the amount is 13,983.65 crore with a
percentage of 30.28. In the year 2007 2008 the amount is 19,200.56 crore with a percentage of 32.53 and
in the year 2008 2009 the amount is 25,991.64 crore with a percentage of 37.19.
Graph 11
Graph showing term loan for the year 2006 - 2009
Teram loan
24%
44%
2006 - 2007
2007 - 2008
32%
2008 - 2009
INTERPRETATION:
It can be inferred that there is continuous growth in the term loans provided by the bank wherein the
maximum growth is seen in the year 2008 2009.
Table 12
Table showing educational qualification of the loan borrowers
Particulars
Number of respondent
Percentage (%)
PUC
28
28
Graduate
54
54
Post- graduate
18
28
Total
100
100
ANALYSIS:
From the above mentioned table it can be analyzed that 28% have done PUC, 54% are graduate and
18% are post-graduate..
Graph 12
Graph showing educational qualification of the borrowers.
Educational qualification
60
50
40
30
20
10
0
PUC
Graduate
Number of respondent
Post-graduate
percentage
INTERPRETATION:
From the above graph it can be inferred that maximum no. of respondents are graduate where as
minimum no. of respondent are post-graduate.
Table 13
Table showing break up of respondent--- age wise.
Age in years
No. of respondent
Percentage (%)
20 - 30
45
45
30 - 40
29
29
40 - 50
18
18
Above 50
Total
100
100
ANALYSIS:
From the above table it is seen that in there are 45 respondent in the age group of 20 30, 29 respondents
fall in the age group of 30 40, 18 respondent in the age group of 40 50 and 8 respondent above the age
group of 50.
Graph 13
Graph showing break up of respondent--- age wise.
No. of respondent
Percentage
20
15
10
5
0
20-30
30-40
40-50
Above 50
Interpretation:
From the above graph it can be inferred that the majority group of respondents belongs to the age group of
20 30 followed by the age group of 30 40. The least no. of respondents belongs to the age group above
50.
Table 14
Table showing break up of respondent--- gender wise.
Gender
No. of respondent
Male
88
Percentage (%)
88
Female
12
12
Total
100
100
ANALYSIS:
From the above table it is analysed that 88 respondent are males whereas only 12 respondents are females
which shows the maximum no. of respondent were males.Graph 14
90
80
70
60
No. of respondent
50
Percentage
40
30
20
10
0
Male
Female
Interpretation:
From the above graph it is inferred that that the maximum no. of respondent are males and female
participation is less.
Table 15
Table showing break up of respondent --- occupation wise.
Occupation
No. of respondent
Percentage (%)
Government
35
35
Professional
15
15
Private
24
24
Business
26
26
Total
100
100
ANALYSIS:
From the above table it can be analysed that 35 of the respondents are government employees, 15 are
professional, 24 are in private and 26 belongs to the business .
Graph 15
Graph showing break up of respondent --- occupation wise.
35
30
25
No. of respondent
Percentage
20
15
10
Government Professional
Private
Business
Interpretation:
From the above graph it can be inferred that bank major customer on the basis of occupation are government
employees.
Table 16
Table showing break up of respondent --- income wise.
Income (Rs.)
No. of respondent
Percentage (%)
20
20
50,000 1,00,000
28
28
1,00,000 1,50,000
48
48
Above 1,50,000
Total
100
100
ANALYSIS:
From the above mentioned table it can be concluded that there are 20 respondents income is less than
50,000 ; 28 respondents falls in the income group of 50,000 1,00,000 ; 48 respondents in the income
group of 1,00,000 1,50,0000 and 4 respondents falls in the income group above 1,50,000.
Graph 16
Graph showing break up of respondent --- income wise.
50,000 - 1,00,000
1,00,000 - 1,50,000
No. of respondent
Above 1,50,000
Percentage
Interpretation:
It can be inferred that majority no. of respondent belongs to income group of 1,00,000 1,50,000 and the
least is below 1,50,000.
Table 17
Table showing source of awareness
Source
UBI employees
No. of respondent
45
Percentage (%)
45
Magazine
35
35
12
13
Newspaper
Total
100
100
ANALYSIS:
From the above table it can be analysed that source of awareness of 45 respondents was through UBI
employees, 35 was through magazine; 12 was through friends and television and 8 was through newspaper,
12 was through friends and television through
Graph 17
Graph showing source of awareness.
Source of awareness
45
40
35
30
25
20
15
No. of respondent
Percentage
10
5
0
INTERPRETATION:
It can be inferred that majority of the respondent came to know about the bank through UBI employees
followed by magazines, Friends and television and finally the least came to know through newspaper.
Table 18
Table showing EMI paid by the borrower.
Amount
No. of respondent
Percentage (%)
Below 5,000
20
20
5,000 10,000
43
43
10,000 15,000
30
30
15,000 20,000
Total
100
100
ANALYSIS:
From the above table it can be analysed that below 5,000, 20 respondent paid EMI in between 5,000
10, 000 , 43 in between 10,000 15,000 , 30 paid EMI and the least EMI was paid in between 15,000
20,000.
Graph 18
Graph showing EMI paid by the borrower
7%
20%
30%
Below 5,000
5,000 - 10,000
43%
10,000 - 15,000
15,000 - 20,000
INTERPRETATION:
It can be inferred from the pie- chart that the majority no. of respondent who borrowed EMI is in between
5,000 10,000 and the least EMI paid by the borrower is in between 15,000 20,000.
Table 19
Table showing loan amount borrowed by respondent.
Amount ( Rs.)
Below 5,00,000
No. of respondent
30
Percentage (%)
30
5,00,000 10,00,000
45
45
10,00,000 15,00,000
20
20
15,00,000 20,00,00
Total
100
100
ANALYSIS:
It can be analyzed from the above mentioned table that that there were 30 respondents who borrowed
amount of loan below 5,00,000 ; 45 between 5,00,000 10,00,000 ; 20 between 10,00,000 to 15,00,000 and
there were only 5 respondents who borrowed above 15,00,000. 20,00,000
Graph 19
Graph showing loan amount borrowed by respondent
No. of respondent
Percentage
INTERPRETATION:
From the above graph it can be interpreted that the maximum no. of amount borrowed by respondent
is in between 5,00,000 10,00,000 whereas the least of amount borrowed by respondent is in
between 15,00,000 20,00,000.
Table 20
Table showing satisfactory level of respondents with loan.
Satisfaction level
No. of respondent
Percentage (%)
Extremely satisfied
15
15
Satisfied
53
53
Moderate
25
25
Unsatisfied
Total
100
100
ANALYSIS:
From the above table an attempt was made to understand whether respondent feels that the products offered
by the bank were extremely satisfied, satisfied, moderate or unsatisfied.
Graph20
Graph showing satisfactory level of respondents with loan.
25%
7%
15%
53%
extremely satisfied
Satisfied
Moderate
Unsatisfied
INTERPRETATION:
It can be inferred from the pie-chart that that the maximum no. of respondent were satisfied where least no.
of respondent were unsatisfied.
FINDINGS
1. 45% of the loans taking customers are in between the age of 20 30 while another 29% of customers
are in between the age 30 40. 18% of the customers belong to the 40 50 age categories while 8%
are above the age of 50.
2. 88% of the loan takers are male while only 12% are female.
3. 35% of loan taking customer are working at the government sector, 15% professional, 24% private
and 26% customers are engaged in his / her own business.
4. It can be observed that majority of customers are under the income group of 1,00,000 1,50,000
which is 48% followed by the income group of Rs. 50,000 1,00,000, at 28%. The group earning
less than Rs. 50,000 owns 20% and at last the income group of Rs. 1,50,000 and above owns 4%.
5. 45% of respondent are made aware about loan by UBI employee while 35% are made aware by
magazine. 13% and 7% of customer are made aware of UBI bank by newspapers and friends.
6. Majority of the EMI was paid by the borrower in between 5,000 10,000 and least EMI was paid by
borrowed in between 20,000 30,000.
7. 30% of customer of UBI banks are taking loans below 5,00,000, While 45% are taking between
5,00,00 10,00,000 , 20% are taking between 10,00,000 15,00,000 by 22% and only 5% borrowed
in between 15,00,000 20,00,000.
8. 53% of the customers are satisfied with the loan amount while 25% are moderately satisfied and 15%
are extremely satisfied but 7% are unsatisfied.
9. It is also found that there is an impressive continuous growth in vehicle loan, education loan and
personal loans which is remarkably outstanding for the bank.
10. Home loan segment has a better increasing trend in coming years since it has a high rate of demand
in the current market.
SUGGESTIONS
1. The banks variety of loans and advances are unlimited but they are not communicated well enough
to customers. Hence, it is suggested to make additional efforts to provide information to the
customers about the range of loans and advances
2. Attractive and competitive interest rates should be adopted since it is the main factor considered for
taking loans by the customers.
3. Since all the banks are providing loans with the same features. It is recommended that bank should
offer some unique features to its products to acquire strong identity and can be easily distinguished.
4. At the present scenario, United Bank of India should intensify their advertisement campaign in order
to gain new customers, make people aware of the new schemes available to them and also take
advantage of the current market.
5. Service level provided by the bank should be more efficient and effective for the customer. The
customers are very keen on the service provided by the bank. They would rate it as one of the
important factor while selecting the loans.
6. The bank should adopt attractive and competitive rate of interest in order to induce customers to take
personal loans and to attain more shares from its competitors. This is also one of the critical factors
for selecting the loans.
7. Increase in short- term lending such as cash credits, Overdraft and Loans repayable on demand is
most favourable to bank to earn short- term gain and maintain liquidity.
8. A suggestion is made to the bank to expand the business globally and offer more and more services to
the people abroad.
9. Bank should follow guidelines towards priority sector and get benefits out of it.
10. Offer best customer services, lending on profitable ventures, diversifying the business to cope with
the competition.
11. Bank should use latest technologies in banking activities.
12. Few customer has not selected the branch because of less branches in southern region compared to
the other region.
Conclusion
Human beings are no more constraint to the basic necessities in their lives. Their needs have
diversified through the ages placing an increase demand on resources. The economic boom in the country
has wide open the new challenges and opportunities to the people. This has necessitated timely and easy
availability of funds to meet the requirements of institutions and individuals in meeting their goals. Thus to
keep up with the pace of this increasing demand, the banking industry have come forward with the credit
portfolio to provide funds on relatively easier terms and conditions. Today, banks are committed towards
providing more and more number of people with finance with a view to make their lives better.
The ever increasing demands of the customers have forced the banking sectors to emerge with
new retail products bearing new unique features in them. The competition among the banks cannot be
neglected. They have been supplying loans for the purpose of purchase of vehicles , pursue of higher
education, or to meet their other personal requirements.
The banking industry is witnessing a boom at present boosted by the increasing demand for
retail loan products. The demand has arisen as a result of genuine individual needs. From an overall view
point demand for retail loans is ever rising and the same would be reflected on the demand for funds. Hence
the profitability of this particular industry is expected to take a positive track in the future ahead.
QUESTIONAIRRE
I am a student of CMR institute of management studies, under Bangalore university. I need your kind cooperation regarding the following information, which will be used only for my academic purpose. It will be
considered as highly confidential.
Name:__________________________
Address:_________________________
Gender
Age
1. Male
a) 20 - 30
b) 30 40
c) 40 50
d) 50 -60
e) 50 and above
Qualification
a) Graduate
2. Female
b) Post graduate
c) Others
2) Occupation
a) Government
b) Professional
c)
Private
d)
Business
3) Annual income
4)
a)
b)
c)
d)
5)
No
6)
Educational loan
d)
Personal loan
8)
a)
b)
c)
d)
How many times did you approach the bank to get the loan?
a) One
b) Two
c) Three
d) Four
9)
Below 5,00,000
b)
c)
d)
10)
Below 5,000
b)
Rs.5,000 Rs.10,000
c)
Rs.20,000 Rs.30,000
d)
11) How many years have you taken the loan for?
a)
0 - 3 years
b)
3 6 years
c)
6 10 years
d)
No
13) What are the sources that make you aware of UBI loan schemes?
a)
Newspaper
b)
Magazine
c)
d)
14) Are you satisfied with your decision to take loan from UBI?
a)
Extremely satisfied
b)
Satisfied
c)
Moderate
d)
Unsatisfied
Extreme High
b) High
c)
Low
d)
O. k.
c)
O.k.
d)
Bad
BIBLOGRAPHY
WEBSITES:
www.unitedbankofindia.com
www.google.com
www.rbi.org.in