Dillip Project

UNITED BANK OF INDIA
(Recognized by AICTE, Ministry of HRD, Govt. of India)
A Project Report On RETAIL DEPOSIT PRODUCT With special reference to United Bank of India The Bank that begins with U SUBMITTED TO
ASIAN SCHOOL OF BUISINESS MANAGEMENT
SUBMITTED BY DILLIP KUMAR BEHERA PGDM-BIFS/2011-13/07 External Guide: Mr. Sameer Kumar Bandyopadhyay Internal Guide Prof. Solomon James
ASIAN SCHOOL OF BUSINESS MANAGEMENT[Type text]
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CONTENTS
Chapter no
Title Certificate from corporate guide Certificate from faculty guide Declaration Acknowledgement Executive summary & abstract
Page no 03
04
05 06 07-10
Chapter-I Chapter-II Chapter-III Chapter-IV
Introduction Project work Research methodology Data analysis & interpretation
11-36 37-46 47-48 49-70
Chapter-V
Suggestion, recommendation & conclusion
71-74
Chapter-VI
Annexure
75-76
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CERTIFICATE FROM CORPORATE GUIDE
This is certify that Dillip Kumar Behera, student of ASBM, BBSR, pursuing PGDM-BIFS has worked under my guidance and supervision on his project entitled RETAIL DEPOSIT PRODUCT OF UBI. To the best of my knowledge this is an original piece of work.
CHIEF MANAGER UNITED BANK OF INDIA SAHEED NAGAR BRANCH BBSR
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CERTIFICATE FROM FACULTY GUIDE
Certified that the Project Report with the title RETAIL DEPOSIT PRODUCT OF UNITED BANK OF INDIA, undertaken by Dillip Kumar Behera, was conducted under my guidance and supervision. She/ He has designed the research, collected the data, analysed the results, interpreted the findings and observations and prepared the report.
Professor/Associate Professor/Assistant Professor, Asian School of Business Management Faculty Guide
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DECLARATION
I hereby declare that the project report with the title RETAIL DEPOSIT PRODUCT OF UNITED BANK OF INDIA, being submitted to Asian School of Business Management in partial fulfilment of the requirements for award of Post Graduate Diploma in Management, is an original piece of research work carried out by me. I have designed the research, collected the data, analysed the results, interpreted the findings and observations and prepared the report. I further declare that this report has not been published/awarded elsewhere, nor has it been submitted in full or part for any other degree or diploma.
Diliip Kumar Behera PGDM-BIFS/2011-13/07
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ACKNOWLEDGEMENT
The Internship training gives every MBA aspirant their first corporate world experience and leads them towards professionalism. My Internship training at United Bank of India, Saheed Nagar, Bhubaneswar, Odisha, gave me this opportunity. I wish to express my sincere gratitude to Mr. Sameer Kumar Bandyopadhyay (Chief Manager, United Bank of India) and Asian School of Business Management, Bhubaneswar who has helped me in every possible way to make this Summer Training project a success. I would also like to thank Mr. Behera (Loans and Advances, United Bank of India) and the Organization employees for their valuable support and time to time cooperation during my 8 weeks summer internship. I would like to thank my Faculty Guide Prof. Solomon James for constantly guiding me and supporting me during my entire project. I would also like to give thanks all the staff of United Bank of India, Saheed Nagar, Bhubaneswar for their valuable and sincere cooperation and plying all the database . Lastly, I am thankful to my parents and my entire family who are always my source of brain child & unplumbed exertion towards the journey of my life.
Dillip Kumar Behera
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EXECUTIVE SUMMARY
TITLE OF THE PROJECT :A Project report on Retail Deposits Product with special reference to United Bank of India.
ORGANIZATION: United Bank of India, Saheed Nagar, Bhubaneswar, Odisha.
INSTITUTE:Asian School Of Business Management, Bhubaneswar.
CORPORATE GUIDE:Mr. Sameer Kumar Bandyopadhyay (Chief Manager, United Bank of India)
FACULTY GUIDE:Prof. Solomon James (Faculty, Asian School of Business Management, Bhubaneswar)
PROJECT PERIOD:25 April - 2012 to 19 June - 2012
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Like other Banks and financial institution, United Bank of India provides many deposit schemes catering the various needs of different types of customers. While formulating various Deposit schemes, UBI takes ample care to effectively implement the Reserve Bank of India policies guidelines. Accordingly, many more deposit schemes have been designed for different segments of customers like Individuals, Sole Proprietorship, Partnership firms, associations, club, societies, Trust & Companies, low income families in rural/urban areas migratory laborers etc having different needs. The bank has various deposit segments, such as current, savings and term deposits for their customers. The Bank provides commercial banking products and services to corporate customers, including midsized and small businesses and government entities.
It also plays an instrumental role in spreading banking services to the remotest areas of the country, particularly in the Eastern and North-Eastern part of the country.
It has opened 1656 branches and 800 ATMs all over India including urban and rural areas. Hence, the bank has not only concentrated on the basic objective of Business/ Profit but also it has taken the challenge to improve the banking habits and bring about awareness to the large sector of the population of the country.
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ABSTRACT
This paper attempts to analyze and compare the Retail Deposits Products of United Bank Of India of Saheed Nagar Branch, Bhubaneswar. To analyze the retail deposit products of UBI selective indicators were taken into considerations. These Indicators were share of aggregate deposits of various customers of UBI. From the study it was seen that almost all the banks have shown decline in Current Deposits but a considerable increase in Term Deposits. Before liberalization there was a monopoly of public sector banks, but after reforms in 1991, the entry of many foreign players have been permitted. Post liberalization demanded PSBs to compete with well diversified and resource rich foreign banks and to provide better services and unique products to suit customers need. Public sector banks have already sacrificed a lot of their profits for achievement of social objectives. Due to cut throat competition and technology, the public sector banks are thinking to improve productivity and profitability which is essential to survive in a globalised economy. All these require inner strength and control over costs, new techniques of managing various branches, customer oriented service, motivating people, proper consideration for innovation, better system and procedures, fixing adequate and reasonable norms and creation of team spirit in bank management.
The Project seeks to draw attention to customers of UBI of Saheed Nagar area of Bhubaneswar, which is all set to realize its latent potential and match the growth chart of Total Deposits. As the intern, I took this opportunity to highlight some key elements that will assist the region in mapping its success story.
The report focuses on the attempts to views of customers in Saheed Nagar on basic parameter such as deposits products statistics. It also focuses on importance of inclusive growth of Deposits products in the area.
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The report assesses how the customers in Saheed Nagar area have evolved to understand the key drivers for accelerating growth in deposits. My analysis touches upon issues such as the changes in statistics of different kinds of deposits, while defining the vital role that public sector banks need to play in generating it. Underlying this is the concern, shared with the other banks, of bringing more and more people within the ambit of basic financial services.
This project report helps in understanding nature of the core Deposits and what are the initiatives taken by United Bank of India to achieve it. This project also helps in understanding the various policies relating to Deposits and considerations in depositors choice. This project report also cites major challenges, opportunities that UBI is facing. I have also drawn some insights from my analysis with different customers. I hope this report is found useful.
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Chapter-I INTRODUCTION
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INTRODUCTION BANKING IN INDIA
The banking section will navigate through all the aspects of the Banking System in India. It will discuss upon the matters with the birth of the banking concept in the country to new players adding their names in the industry in coming few years. However, in the introduction part of the entire banking cosmos, the past has been well explained.
Without a sound and effective banking system in India it cannot have a healthy economy. The banking system of India should not only be hassle free but it should be able to meet new challenges posed by the technology and any other external and internal factors. For the past three decades India's banking system has several outstanding achievements to its credit. The most striking is its extensive reach. It is no longer confined to only metropolitans or cosmopolitans in India. In fact, Indian banking system has reached even to the remote corners of the country. This is one of the main reasons of India's growth process. The government's regular policy for Indian bank since 1969 has paid rich dividends with the nationalization of 14 major private banks of India.
Not long ago, an account holder had to wait for hours at the bank counters for getting a draft or for withdrawing his own money. Today, he has a choice. Gone are days when the most efficient bank transferred money from one branch to other in two days.
Now it is simple as instant messaging or dial a pizza. Money have become the order of the day. The first bank in India, though conservative, was established in 1786. From 1786 till today, the journey of Indian Banking System can be segregated into three distinct phases. They are as mentioned below:
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Early phase from 1786 to 1969 of Indian Banks. (Pre Nationalization Era) Nationalization of Indian Banks and up to 1991 prior to Indian banking sector Reforms. (Nationalization Stage) New phase of Indian Banking System with the advent of Indian Financial & Banking Sector Reforms after 1991. (Post Liberalization Era.)
Phase I: Pre Nationalization Era
In India the business of banking and credit was practices even in very early times. The remittance of money through Hundies, an indigenous credit instrument, was very popular. The hundies were issued by bankers known as Shroffs, Sahukars, Shahus or Mahajans in different parts of the country. The modern type of banking, however, was developed by the Agency Houses of Calcutta and Bombay after the establishment of Rule by the East India Company in 18th and 19th centuries.
The General Bank of India was set up in the year 1786. During the early part of the 19th Century, high volume of foreign trade was relatively small. Later on as the trade expanded, the need for banks of the European type was felt and the government of the East India Company took interest in having its own bank. The government of Bengal took the initiative and the first presidency bank, the Bank of Calcutta (Bank of Bengal) was established in 1809. In 1840, the Bank of Bombay and in 1843, the Bank of Madras was also set up. These three banks are also known as Presidency Bank. The Presidency Banks had their branches in important trading centers but mostly lacked in uniformity in their operational policies. In 1865 Allahabad Bank was established and first time exclusively by Indians, Punjab National Bank Ltd. was set up in 1894 with headquarters at Lahore. In 1899, the Government proposed to amalgamate the presidency banks in to one so that it could also function as a Central Bank, but the Presidency Banks did not favor the idea. However, the conditions obtaining
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during world war period (1914-1918) emphasized the need for a unified banking institution, as a result of which the Imperial Bank was set up in1921. The Imperial Bank of India acted like a Central bank and as a banker for other banks. Between 1906 and 1913, Bank of India, Central Bank of India, Bank of Baroda, Canara Bank, Indian Bank, and Bank of Mysore were set up. Reserve Bank of India came in 1935.
The RBI (Reserve Bank of India) was established in 1935 as the Central Bank of the Country. In 1949, the Banking Regulation act was passed and the RBI was nationalized and acquired extensive regulatory powers over the commercial banks. In 1950, the Indian Banking system comprised of the RBI, the Imperial Bank of India, Cooperative banks, Exchange banks and Indian Joint Stock banks.
During the first phase the growth was very slow and banks also experienced periodic failures between 1913 and 1948. There were approximately 1100 banks, mostly small. To streamline the functioning and activities of commercial banks, the Government of India came up with The Banking Companies Act, 1949 which was later changed to Banking Regulation Act 1949 as per amending Act of 1965 (Act No. 23 of 1965). Reserve Bank of India was vested with extensive powers for the supervision of banking in India as the Central Banking Authority.
During those days public has lesser confidence in the banks. As an aftermath deposit mobilization was slow. Against it the savings bank facility provided by the Postal department was comparatively safer. Moreover, funds were largely given to traders.
Phase II: Nationalization Stage
After Independence, in 1951, the All India Rural Credit survey, committee of Direction with Shri. A. D. Gorwala as Chairman recommended amalgamation of the Imperial Bank of India and ten others banks into a newly established bank
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called the State Bank of India (SBI). The Government of India accepted the recommendations of the committee and introduced the State Bank of India bill in the Lok Sabha on 16th April 1955 and it was passed by Parliament and got the presidents assent on 8th May 1955. Government of India took major steps in this Indian Banking Sector Reform after independence. The Act came into force on 1st July 1955, and the Imperial Bank of India was nationalized in 1955 as the State Bank of India took extensive banking facilities on a large scale especially in rural and semi-urban areas. It enabled State Bank of India to act as the principal agent of RBI and to handle banking transactions of the Union and State Governments all over the country.
Seven banks forming subsidiary of State Bank of India was nationalized. Name of the Bank Subsidiary with effect from 1. State Bank of Hyderabad 1st October 1959 2. State Bank of Bikaner 3. State Bank of Jaipur (1st January 1960) (1st January 1960) 1st May 1960) 1st April 1960)
4. State Bank of Saurashtra ( 5. State Bank of Patiala 6. State Bank of Mysore 7. State Bank of Indore (
( 1st March 1960) ( 1st January 1968)
8. State Bank of Travancore ( 1st January 1960)
With effect from 1st January 1963, the State Bank of Bikaner and State Bank of Jaipur were amalgamated with head office located at Jaipur. Thus, seven subsidiary banks State Bank of India formed the SBI Group. On 19th July, 1969, major process of nationalization was carried out. It was the effort of the then Prime Minister of India, Mrs. Indira Gandhi. 14 major commercial banks each having deposits worth Rs. 50 crores and above in the
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country were nationalized. This was a turning point in the history of commercial banking in India.
Central Bank of India Bank of Maharashtra Dena Bank Punjab National Bank Syndicate Bank Canara Bank Indian Bank Indian Overseas Bank Bank of Baroda Union Bank of India Allahabad Bank United Bank of India UCO Bank Bank of India
Second phase of nationalization Indian Banking Sector Reform was carried out in 1980 with seven more banks. The Government Nationalized six more commercial private sector banks with deposit liability of not less than Rs. 200 crores on 15th April 1980, viz.
i) Andhra Bank. ii) Corporation Bank. iii) New Bank if India. iv) Oriental Bank of Commerce. v) Punjab and Sindh Bank. vi) Vijaya Bank.
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This step brought 80% of the banking segment in India under Government ownership. The following are the steps taken by the Government of India to Regulate Banking Institutions in the Country:
1949: Enactment of Banking Regulation Act. 1955: Nationalization of State Bank of India. 1959: Nationalization of SBI subsidiaries. 1961: Insurance cover extended to deposits. 1969: Nationalization of 14 major banks. 1971: Creation of credit guarantee corporation. 1975: Creation of regional rural banks. 1980: Nationalization of seven banks with deposits over 200 crore.
After the nationalization of banks, the branches of the public sector bank India rose to approximately 800% in deposits and advances took a huge jump by 11,000%. Banking in the sunshine of Government ownership gave the public implicit faith and immense confidence about the sustainability of these institutions.
Consequences of Nationalization:
The quality of credit assets fell because of liberal credit extension policy. Political interference has been as additional malady. Poor appraisal involved during the loan meals conducted for credit disbursals. The credit facilities extended to the priority sector at concessional rates. The high level of low yielding SLR investments adversely affected the profitability of the banks.
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Phase III: Post Liberization Era Thrust on Quality & Profitability
This phase has introduced many more products and facilities in the banking sector in its reforms measure. In 1991, under the chairmanship of M Narasimham, a committee was set up by his name which worked for the liberalization of banking practices.
The country is flooded with foreign banks and their ATM stations. Efforts are being put to give a satisfactory service to customers. Phone banking and net banking is introduced. The entire system became more convenient and swift. Time is given more importance than money.
The financial system of India has shown a great deal of resilience. It is sheltered from any crisis triggered by any external macroeconomics shock as other East Asian Countries suffered. This is all due to a flexible exchange rate regime, the foreign reserves are high, the capital account is not yet fully convertible, and banks and their customers have limited foreign exchange exposure.
During the year 2000, the State Bank Of India (SBI) and its 7 associates accounted for a 25 percent share in deposits and 28.1 percent share in credit. The 20 nationalized banks accounted for 53.2 percent of the deposits and 47.5 percent of credit during the same period. The share of foreign banks (numbering 42), regional rural banks and other scheduled commercial banks accounted for 5.7 percent, 3.9 percent and 12.2 percent respectively in deposits and 8.41 percent, 3.14 percent and 12.85 percent respectively in credit during the year 2000.about the detail of the current scenario we will go through the trends in modern economy of the country.
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CURRENT SCENARIO
The industry is currently in a transition phase. On the one hand, the PSBs, which are the mainstay of the Indian Banking system are in the process of shedding their flab in terms of excessive manpower, excessive non Performing Assets (NPAs) and excessive governmental equity, while on the other hand the private sector banks are consolidating themselves through mergers and acquisitions. PSBs, which currently account for more than 78 percent of total banking industry assets are saddled with NPAs (a mind-boggling Rs 830 billion in 2000), falling revenues from traditional sources, lack of modern technology and a massive workforce while the new private sector banks are forging ahead and rewriting the traditional banking business model by way of their sheer innovation and service.
In the economic development of a nation, banks occupy an important place. Banking institutions from an important part of the money market and are indispensable in a modern developing society. Indian money market comprises both organized as well as unorganized sectors. Two other institutions have been set up in recent years to foster the growth of banking services and to facilitate the banking habit. The Deposit Insurance and Credit Guarantee Corporation of India performs two important functions of extending insurance cover to the depositors in the bank and protecting the interest of bank by providing guarantee in respect of advances granted by them to small-scale industries and the priority and neglected sectors of the economy.
According to a report, Aggregate deposits of scheduled commercial banks increased at a compounded annual average growth rate (CAGR) of 17.8 percent during 1969-99, while bank credit expanded at a CAGR of 16.3 percent per annum. Banks investments in government and other approved securities recorded a CAGR of 18.8 percent per annum during the same period. In FY01 the economic slowdown resulted in a Gross Domestic Product (GDP) growth of only 6.0 percent as against the previous years 6.4 percent. The growth in aggregate
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deposits of the scheduled commercial banks at 15.4 percent in FY01 percent was lower than that of 19.3 percent in the previous year. During 2011-12, modal deposit rates of major scheduled commercial banks (SCBs) increased by 45 basis points (bps), and their modal base rates by 125 bps. Banks have the freedom to offer all categories of loans on a fixed or floating interest rate basis, subject to conformity with their asset liability management (ALM) frameworks. They also have the freedom to offer floating rate on domestic term deposits clearly linked to a market determined external anchor rate, in addition to fixed rate deposits. It is observed that while interest rates on deposits are predominantly fixed, most of the retail loan products, especially home loans, have been sanctioned on a floating interest rate basis, thereby exposing the borrowers to uncertain interest rate movements. Term deposits recorded robust growth during calendar year 2011 mainly reflecting substitution from the other components of monetary aggregates and small savings as the increase in deposit rates by banks incentivized the holdings of interest-bearing deposits. Public Sector Banks during Q4 of 2011-12, however, term deposit growth decelerated, mainly reflecting the dominance of the base effect and tight liquidity conditions. The private players however cannot match the PSBs great reach, great size and access to low cost deposits. Therefore one of the means for them to combat the PSBs has been through the merger and acquisition (M & A) route. Over the last two years, the industry has witnessed several such instances. The cost of banking intermediation in India is higher and bank penetration is far lower than in other markets. Indias banking industry must strengthen itself significantly if it has to support the modern and vibrant economy which India aspires to be. While the onus for this change lies mainly with bank managements, an enabling policy and regulatory framework will also be critical to their success.
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ABOUT UNITED BANK OF INDIA
OVERVIEW: United Bank of India (UBI) is one of the 14 major banks which were nationalized 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 as far back as to 1914. As against 174 branches, Rs. 147 crores of deposits and Rs. 112 crores of advances at the time of nationalization in July, 1969, today the Bank is 100% CBS enabled with more than 1656 branches and offices and 800 ATMs is having a Total business of more than Rs 1.5 lakh crore. Presently the Bank is having a Three-tier organizational set-up consisting of the Head Office, 33 Regional Offices and the Branches. After nationalization, 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 nationalization. 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. Assam Gramin Vikash Bank has been
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constituted on 12th January, 2006 following GoI notification amalgamating 4 RRBs viz. Pragjyotish Gaonlia Bank, Cachar Gramin Bank, Subansiri Gaonlia Bank and Lakhimi Gaonlia Bank in the state of Assam. On 21st February 2007, Bangiya Gramin Vikash Bank has been
constituted following GoI notification amalgamating 5 RRBs viz. Gaur Gramin Bank, Mallabhum Gramin Bank, Sagar Gramin Bank, Nadia Gramin Bank and Murshidabad Gramin Bank in the state of West Bengal. These RRBs as on 31.12.2006 were having total deposits of Rs.5771.33 Crore and outstanding advance of Rs. 2690.80 Crore. In its efforts to provide banking services to the people living in the not easily accessible areas of the Sunder bans 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 centers 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 . Operations of all the branches have since been computerized and Electronic Fund Transfer System came to be implemented in the Bank's branches across the country. The Bank has ATMs all over the country and having Cash Tree arrangement with 11 other banks. The 4 RRBs, the Head Office are given on below table.
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Name of RRBs Bangiya Gramin Vikash Bank Assam Gramin Vikash Bank Tripura Gramin Bank Manipur Rural Bank
Head office Berhampur, West Bengal Guwahati, Assam Agartala, Tripura Imphal, Manipur
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 nationalized 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.
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Changes in Head Office: The Head Office of the 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.
Awards and Certifications received by the Bank: Year 2006 Awards and Recognition National Award for the second best performance in financing small scale units by Ministry of Small Scale Industries, Government of India. 2007 Golden Jubilee Award for the best bank in North East Zone for excellence in the field of Khadi and Village Industries from the Ministry of MSME, Government of India. 20072008 2008 National Award for the Best Bank for excellence in the field of Khadi and Village Industries for East and North East Zones from Ministry of MSME, Government of India. 20082009 20082009 2009 National Award under Prime Minister Employment Guarantee Programme in North East Zone from Ministry of MSME, Government of India. Highest Contributor to lives insured by TATA AIG Pinnacle Partner of the year by TATA AIG Best Bancassurance Partner by TATA AIG
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KEY MILESTONES: Sr. no 1 Year Details 1961: The Cuttack Bank Limited and The Tezpur Bank Limited merged with UBI. 2 3 4 5 6 7 1964: Staff Training college at Kolkata was set up. 1969: The Bank was nationalized by GoI. 1970: Mobile branches were set up by UBI. 1973: Hindustan Mercantile Bank Limited merged with UBI. 1976: Narang Bank of India Limited merged with UBI. 1980: Appointed as convener of State levels Bankers Committee in West Bengal, Tripura and Manipur. 8 9 10 11 12 1993: First branch brought under total branch mechanism. 1995: Crossed Business level of Rs. 10,000 Crore. 2006: Crossed Business level of Rs. 50,000 Crore. 2007: Rolled out first CBS branch. 2007: Set up United Bank Socio Economic Development foundation trust for rendering assistance to the weaker and under privilege sections of the society. 13 2007: Set up first Rural Development & Self Employment Training Institute to provide residential training to small farmers and unemployed youth at free of cost. 14 15 16 2009: Achieved 100% CBS for all its branches. 2009: Crossed Business level of Rs. 100,000 Crore. 2010: Bank opened its 1500th branch.
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UBI AT PRESENT (2012): The United Bank of India is a public sector banking institutions with branches in 28 states and 4 Union Territories in India. The Bank is currently wholly owned by Government of India. Their Business is principally divided into retail banking, corporate/wholesale banking, Priority sector banking, treasury operations and other banking service such as agency functions for insurance and mutual fund distribution, pension and tax collection services. The Bank's retail banking business provides financial products and services to their retail customers. They provide loans and advances for housing, trade, automobiles, consumer durables, education, personal loans and other retail products. They have various deposit segments, such as current, savings and term deposits for their customers. The Bank provides commercial banking products and services to corporate customers, including mid-sized and small businesses and government entities. The Bank offers direct financing to farmers for production and investment, as well as indirect financing for infrastructure development and credit to suppliers of agricultural inputs. They also offer a wide range of general banking services to their customers including debit cards, cash management, remittance services and collection services. The Bank delivers their products and services through their branches, extension counters, ATMs, internet banking and tele-banking. They sponsor four Regional Rural Banks in collaboration with the Central Government and the state governments of West Bengal, Assam, Manipur and Tripura. Multiple delivery channels and large distribution infrastructure has resulted in giving the bank access to a large customer base spread across India particularly in eastern and north eastern regions. After nationalization, the Bank expanded their 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 nationalization. In the year 1980, the Bank was appointed as convener of State Level Bankers' Committee in West Bengal, Tripura and Manipur. In the year 1993, the Bank brought their first branch under total branch mechanism. In the
ASIAN SCHOOL OF BUSINESS MANAGEMENT[Type text] Page 26
year 2000, they rolled out their first CBS branch. In the year 2007, the Bank set up United Bank Socio - Economic Development Foundation Trust for rendering assistance to the weaker and under privilege sections of the society. They set up their first Rural Development & Self Employment Training Institute for providing residential training to small farmers and unemployed youth free of cost. In the year 2009, the Bank achieved 100% CBS for all their branches. As of May 10, 2012, their domestic branch network of 1,656 branches was achieved. Apart from satisfying the existing customers, UBI has been focusing on booking of new business by expanding its customer base. The old age schemes for deposit and advance have been redesigned and renamed and in most cases, the conditions are made flexible so as to suit the various types of customers in the society. The products have been formulated and revised from time to time taking different aspects in to consideration.
RBI guidelines and Control. Maintaining standard ground Rules and Code of Ethics of Indian Bank Association (IBA). Similar such products of other banks in the market. New innovative products meeting specific needs of various customers. Evaluation of its long run outcome.
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VISION: The Vision is to emerge as a dynamic, techno savvy, customer-centric, progressive and financially sound premier bank of the country with pan-India presence, Sharply focused on business growth and profitability with due emphasis on risk management in an environment of professionalism, Trust and transparency, observing highest standards of corporate governance and corporate social responsibilities meeting the expectations of all its stake holders as well as the aspirations of its employees. Essentially, Pursuit of Excellence is going to be core philosophy and driving force for the bank.
MISSION: Customer Service and Product Innovation tuned to diverse needs of individual and corporate clients. Continuous technologically upgradation while maintaining Human values. Progressive Globalization and achieving International standards. Efficiency and Effectiveness built on ethical practices.
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BOARD OF DIRECTORS: The United Bank of India is having a Three-tier organizational set-up consisting of the Head Office, 33 Regional Offices and the Branches. The management comprises of Board of Directors, Chairman & Managing Director, Executive Director, and General Managers. The Bank comprises of Board of Directors (BoD) with 11 members. They are under as follows in the next page with their designation sideways.
Name Shri Bhaskar Sen Shri D.Narang Shri Sandeep Kumar Smt. Surekha Marandi Shri Saumen Majumdar Shri Soumitra Talapatra Shri Srenik Sett Shri Hiryana Bora Shri Sunil Goyal
Designation Chairman and Managing Director Executive Director Government Nominee Director RBI Nominee Director Shareholder Director Workmen Employee Director Part Time Non Official Director Non Official Director Part Time Non Official Director under CA Category
Shri Kiranbhai B Vadodari Shri Pijush Kanti Ghosh
Part Time Non Official Director Officer Employee Director
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DEPOSITS OF UNITED BANK OF INDIA
One of the important functions of the Bank is to accept deposits from the public for the purpose of lending. In fact, depositors are the major stake holders of the Banking system. The depositors and their interests form the key area of the regulatory framework for banking in India and this has been enshrined in the Banking Regulation Act, 1949. The Reserve Bank of India is empowered to issue directives/ advices on interest rates on deposits and other aspects regarding conduct of the deposit accounts from time to time. With liberalization in the financial system and deregulation of interest rates, Banks are now free to formulate deposit policy within the broad guidelines issued by RBI.
This Policy on deposits outlines the guiding principles in respect of formulation of various deposit products by the Bank and terms and conditions governing the conduct of the account. The Customers have a wide range of choice of deposits through as many as 17 different schemes offered by UBI. They may select them according to their best suited mode of meeting all kinds of requirements like short term or long term liquidity and high rate of return. Their deposits with UBI are also safe and sound. The ultimate objective is that the customer will get services they are rightfully entitled to receive without demand.
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Different deposit schemes & products. Based on customers need, market conditions, competition and other driving forces, Bank is presently offering seventeen deposit products under five deposit schemes which are listed below:
Schemes
Products 1. United Savings Bank
Savings Bank
2. United Bonanza Savings 3. United Capital Gain Account (Account-A Type) 4. United Account 5. United Basic SB Account. 1. United Current Deposit Account 2. United Bonanza Current Deposit Children Savings
Current Deposit
Account 3. United Gold & Platinum Current Deposit Account 4. United Premium Current Account 1. United Fixed Deposit
Fixed Deposit
2. United Tax Savings Income Plan-FD type 3. United Anand Deposit 1. United Recurring Deposit
Recurring Deposit
2. United Flexi Deposit 1. United Reinvestment Plan
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2. United Tax Savings Growth Re-Investment Plan (RIP) Plan-RIP type 3. United Capital Gains Accounts (Account-B type)
A brief outline of distinctive features & target group of different deposit products are summarized. To meet the customers need, market requirement or regulatory instruction, Bank may at its discretion formulate different new deposit products suited for cross section of the customers, which will be examined by the AssetLiability Committee (ALCO) and may be launched from time to time.
SAVINGS ACCOUNT
1) Savings bank accounts: It is the most common operating account for individuals and other for non commercial transactions. SB account can be opened in the name of an individual or in the name of two or more individuals. An illiterate person, a minor can also open their account. Transaction is restricted below Rs 2000, failing of which invites penalty on the part of depositor.
2) United Bonanza saving Scheme: It is the combination of liquidity of savings bank and interest of fixed deposit accounts. The depositor has an option with an inbuilt arrangement of transferring balance over a specified limit to fixed deposit account automatically.
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3) United Capital Gain Accounts Scheme (Account-A Type): Deposit may be made under provisions of sections 54, 54B, 54D, 54F or 54G of income tax act, 1961 to avail the benefit of tax exemptions. Two types of accounts can be opened under this scheme-Account A and Account B. Account-A shall be in form of savings deposits and Account-B shall be in form of fixed deposit.
4) United Children Savings Account: This type of account can be opened by any child completing 10 years of age. Under this scheme initial minimum deposit and the minimum balance in the account is Rs. 50 only.
5) United Basic SB Account: Any un-banked population segment uptill denied basic banking facilities due to stipulation of minimum balance requirements and levying of service charges, can open Basic SB account or no-frill accounts. The target groups include low income families in rural/urban areas, migratory labourers, industrial/agricultural labourers in rural/urban areas, non-pensioner citizens.
CURRENT DEPOSIT
1. United Current Deposit Account: It is one of the most flexible deposit accounts, allowing transactions without limiting the numbers. Individuals (except an illiterate, an undercharged insolvent, and a lunatic), a sole proprietorship concern, partnership firm, private and public limited companies, HUFs, local body, club, society, associations, trusts, executors, administrators liquidators etc are eligible to open the account.
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2. United Bonanza Current Account: Anyone eligible to open a current account is eligible to open United Bonanza Current Account. Here the depositor has the option to automatically convert the balance in bonanza current account in excess of Rs. 1 Lakh or any higher limit as specified by depositor to fixed deposit account.
3. United Gold & Platinum Current Account: Anyone who is eligible to open a current account can open United Gold & Platinum Current Account under this scheme. Target groups are public and private limited companies, Traders, Hospitals and Nursing Homes, companies/firms engaged in service industry, partnership firms, individuals with business motive etc. On maintaining certain specified quarterly average balance different add-on benefits, free cheque book, waiver of cash handling charges etc.
4. United Premium Current Deposit: Anyone who is eligible to open a current account can open United Premium Current Account under this scheme. Target group is same as United Gold & Platinum Current Account.
FIXED DEPOSIT
1. United Fixed Deposit Account: In this type of account the amount remains fixed for a predetermined period. Period option is available from 15 days to 120 months and may be accepted from one or more individuals, firm or company or trust etc with nomination facility.
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2. United Tax Savings Plan (FD Type): An assessee can invest in such deposit scheme of a bank in a financial year commencing from 1st April every year. The amount so invested by an individual or HUF, is eligible for deduction under section 80C of Income Tax, 1961. However, interest on these term deposits is liable to tax under IT Act, 1961, on the basis of annual accrual or receipt, depending upon the method of accounting followed by assessee.
3. United Anand Deposit: It is a multi unit deposit scheme with the objective to facilitate the customer in having term deposit in units and instant facility of overdraft. Target groups are Individuals, sole proprietor, partnership firm, association, club, society, Trust & Companies. It has also facility of reverse sweep.
RECURRING DEPOSIT
1. United Recurring Deposit: Individual recurring deposit can be opened only by individuals singly or jointly with other individuals. It is a Term Deposit account for a period of 6 months to 120 months. The depositor has to pay fixed monthly installments on this scheme.
2. United Flexi deposit: It is one kind of recurring deposit with the flexibility of monthly installments. The depositor can be individual singly or jointly with other individual.
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RE-INVESTMENT PLAN
1. United Reinvestment plan: It is like a fixed deposit and formalities, target group are same as Fixed deposit account, but unlikely fixed deposit, interest which is compounded at quarterly intervals is payable on maturity along with principal.
2. United Tax Savings Growth Plan (RIP Type): An assessee can invest in such deposit scheme of a bank in a financial year commencing from 1st April every year. The amount so invested by an individual or HUF, is eligible for deduction under section 80C of Income Tax, 1961. However, interest on these term deposits is liable to tax under IT Act, 1961, on the basis of annual accrual or receipt, depending upon the method of accounting followed by assessee.
3. United Capital Gains Account scheme (Account-B Type): Deposit may be made under provisions of sections 54, 54B, 54D, 54F or 54G of income tax act, 1961 to avail the benefit of tax exemptions. Two types of accounts can be opened under this scheme-Account A and Account B.
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CHAPTER II PROJECT WORK
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REVIEW OF LITERATURE According to Lassar, Walfried M., Manolis, Chris, Winsor, Robert December 5 2000, state that In the Seroquel Scale is the principal instrument in the services marketing literature for assessing quality. The Technical/Functional Quality Framework is also a widely accepted model on service quality. However, the ability of either to predict customer satisfaction has not been looked into. Relating to the private banking industry, the Technical/Functional Quality Framework was found to be more suited to predicting customer satisfaction. According to Powpaka, Samart October 19-1996 Statethat the influence of outcome quality on customers' perceptions of overall service quality are studied. Results show that outcome quality has a strong influence on customers' overall service quality assessment. Outcome quality is also most important in services with search and experience outcome quality attributes. A model to enable marketing managers to evaluate customers' perceptions of service quality is also discussed. According to Lee, Haksik, Lee, Yongki, Yoo, Dongkeun March 24- 2002 State that the Performance as perceived by customers rather than the difference between that perception and the customer's prior expectations explains more the variation in service quality. It is the customer's satisfaction that leads to perceived quality of service rather than the reverse. More emphasis on responsiveness is expected to be placed on people-based services than on equipment and facility based services. According to CBA REPORT June 12 - 2005state that the banking industry had a better than average score for customer satisfaction over the past year, according to the latest report by American Customer Satisfaction Index (ACSI). The score for how well the banking industry is doing overall (75, unchanged from last year), compares to the overall Level of satisfaction in the US economy,
representing all companies and industries measured by the ACSI, which stands at 74.3, so the banking industry is doing slightly better than the average of all consumer goods and services. Established in 1994, ACSI is a uniform and independent measure of household consumption experience, which tracks trends in customer satisfaction and provides benchmarking insights of the consumer economy. The ACSI is produced by the Business School at the University of Michigan, in partnership with the American Society for Quality (ASQ) and the international consulting firm, CFI Group. ACSI says their scores are a leading indicator of future consumer buying. "High satisfaction scores make it easier for banks to increase their relationships with their customers and sell them more products and services; low satisfaction has the opposite effect. In general, this translates into a prediction of changes in revenues," according to ACSI. According to Robert W. Armstrong, Tan Boon Seng September 2 2005 state that Extends the current understanding of customer satisfaction at the business-tobusiness level in the Asian banking industry. The main thrust of the paper is an attempt to conceptualize a comprehensive model of satisfaction at the business-tobusiness level incorporating guanxi (Chinese business relationships), relationship marketing and the disconfirmation paradigm. The essence of the research highlighted the importance of relational constructs, in addition to the disconfirmation paradigm, in impacting customer satisfaction at the business-tobusiness level in the Singapore banking industry. At the business-to-business level in the Asian context, the disconfirmation paradigm is still the predominant paradigm influencing the customer satisfaction process. Relationship marketing and guanxi are significant in our comprehensive model of corporate-customer satisfaction. Relationship marketing was found to have both a direct and an indirect impact (through disconfirmation) on corporate-customer satisfaction. Guanxi was found to exert an indirect impact on satisfaction as opposed to the initial hypothesized direct impact on satisfaction.
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According to Luis Moutinho, Douglas T. Brownie November 24 2008 State that the nature and direction of the satisfactions that are delivered to customers of bank services are explored, and the criteria used to evaluate these services are highlighted. The non-metric multidimensional scaling technique enabled respondents' perceptions to be represented spatially. It is revealed that respondents had high levels of satisfaction with regard to the location and accessibility of branches and ATMs, and acceptance of the current levels of banking fees; but expressed some caution in their evaluation of new and improved services. According to D.M. Mahaptra, The business line April 11 - 2008(page4) State that The working of the customer's mind is a mystery which is difficult to solve and understanding the nuances of what customer satisfaction is, a challenging task. This exercise in the context of the banking industry will give us an insight into the parameters of customer satisfaction and their measurement. This vital information will help us to build satisfaction amongst the customers and customer loyalty in the long run which is an integral part of any business. The customer's requirements must be translated and quantified into measurable targets. This provides an easy way to monitor improvements, and deciding upon the attributes that need to be concentrated on in order to improve customer satisfaction. We can recognize where we need to make changes to create improvements and determine if these changes, after implemented, have led to increased customer satisfaction. "If you cannot measure it, you cannot improve it." - Lord William Thomson Kelvin (1824-1907). According to M. Sadiq Sohail and Balachandran Shanmugham march 23 -2003 State that the paper examines the current trends in the e-commerce revolution that has set in motion in the Malaysian banking sector and reports on an empirical research that was carried out in Malaysia to study the customers preference for electronic banking and the factors, which they considered influenced the adoption of electronic banking. Results based on the analysis of data relating to 300 respondents indicate that while there is no significant differences between the age
and educational qualifications of the electronic and conventional banking users, some differences exists on other demographic variables. Analysis further reveals that accessibility of Internet, awareness of e-banking, and customers reluctance to change are the factors that significantly affected the usage of e-banking in Malaysia. The paper discusses on the implications of these. Limitations of the study are highlighted and further research directions are suggested. According to Lee, Ming Chang; Hwan, Ing San-Tokyo December 1, 2005 State that the This study examines whether there are economic benefits to be gained from improving service quality in the Taiwanese banking industry. Service quality is perceived quality; and different from objective or actual quality; being a judgment usually made within a customer evoked set. Service quality resembles an attitude in many ways, and service quality is distinct from customer satisfaction. Traditional financial ratios are not appropriate for measuring the economic benefits of service quality improvement. According to Stellenbosch London March 12 2004State that the Measuring user satisfaction with information systems has attracted widespread research attention, given it is often used as an indicator of success. The Internet has allowed applications to be extended to customers of an organization, where interaction can take place through a web site, typically from home or office. The focus of attention with such applications is customer satisfaction. In this research, a 21item, 7-factor instrument developed to measure customer satisfaction with websites that market generic digital products and services was modified slightly, and then empirically tested and validated in the context of Internet banking specifically. A 19-item, 5-factor validated instrument emerged, the factors being Customer Support, Security, Ease of Use, Transactions and Payment, and Information Content and Innovation. The difference in number of factors as compared to the generic instrument was attributed to the unique nature of Internet banking web sites. These and other findings are discussed in the paper, and their implications examined.
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According to Pratap K.J. Mohapatra January 19 -2009 State that, the article examines whether service quality of Indian commercial banks increases customer satisfaction that fosters customer loyalty. Data were collected from 350 valued customers of scheduled commercial bank branches in Orissa (India). A questionnaire elicited information on socio-demographic variables along with human, technical, and tangible aspects of service quality, customer satisfaction, and loyalty. Results suggest that better human, technical and tangible aspects of service quality of the bank branches increase customer satisfaction. Human aspects of service quality were found to influence customer satisfaction more than the technical and tangible aspects. Customer satisfaction furthers customer loyalty. Increase in service quality of the banks can satisfy and retain customers. In the Indian banking sector, human aspects are more important than technical and tangible aspects of service quality that influence customer satisfaction and promote and enhance customer loyalty. According to Megha Trivedi the Economics times December 7 2009 (Page 7) State that the Customer satisfaction has become a major source of concern in retail banking business. With exceptional progress in the establishment of banks in India, banks are increasingly interested in retaining existing customers and targeting new customers. In this paper, it is proposed that quality of service is an indicator of customer satisfaction. Measuring service quality involves objective feedback about existing customers of ICICI bank with respect to their expectations and services offered. Performance of a bank may be evaluated with regard to a set of satisfaction parameters that indicate the strengths and weaknesses of an organization. Standard scale of SERVQUAL developed by Parasuraman et al. has been used to conduct the survey. This study is based on five overall dimensions of customer satisfaction with services provided by ICICI. The five dimensions used to measure service quality are tangibility, reliability, responsiveness, assurance and empathy. This study gives useful insights to boost customer satisfaction towards ICICI.
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According to Raj Kumar the Hindu Aug 7 - 2008 State that The banking industry like many other financial service industries is facing a rapidly changing market, new technologies, economic uncertainties, fierce competition and more demanding customers and the changing climate has presented an unprecedented set of challenges (1). Banking is a customer oriented services industry, therefore, the customer is the focus and customer service is the differentiating factors (2).The banking industry in India has undergone sea change since post-independence. More recently, liberalization, the opening up of the economy in the 90s and the government's decision to privatize banks by reduction in state ownership culminated in the banking reforms based on the recommendations of Narasimha Committee (3). The prime mover for banks today is profit, with clear indications from the government to 'perform or perish'. Banks have also started realizing that business depends on client service and the satisfaction of the customer (4) and this is compelling them to improve customer service and build up relationship with customers. With the current change in the functional orientation of banks, the purpose of banking is redefined. The main driver of this change is changing customer needs and expectations. Customers in urban India no longer want to wait in long queues and spend hours in banking transactions. This change in customer attitude has gone hand in hand with the development of ATMs, phone and net banking along with availability of service right at the customer's door step. With the emergence of universal banking, banks aim to provide all banking product and service offering less than one roof and their endeavor is to be customer centric (5). With the emergence of economic reforms in world in general and in India in particular, private banks have come up in a big way with prime emphasis on technical and customer focused issues. According to G. Mihelis 6 Feb 2009 Commercial Bank of Greece states that Customer satisfaction represents a modern approach for quality in enterprises and organizations and serves the development of a truly customer-focused management and culture. Measuring customer satisfaction offers an immediate,
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meaningful and objective feedback about clients. Preferences and expectations. In this way, companys performance may be evaluated in relation to a set of satisfaction dimensions that indicate the strong and the weak points of a business organization. This paper presents an original customer satisfaction survey in the private bank sector. The implemented methodology is based on the principles of multi criteria analysis and preference disaggregation modeling. The most important results are focused on the determination of the critical service dimensions and the segmentation to customer clusters with distinctive preferences and expectations.
TITLE OF THE STUDY: Retail Deposits Products With Special reference to United Bank of India, Bhubaneswar.
STATEMENT OF THE PROBLEM: In India most of the people find need to save their earnings or invest for long term or short term to fulfill their daily and future needs. Some of them are having a huge property and sound economical back ground and some of them have a less amount of property. Some of the segments in bank deposits are decreasing due to many reasons. People are swapping banks to avail better deposit options catering their needs and getting additional facilities. This is a problem for banks to retain their existing customers and attract new customers.
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OBJECTIVE OF THE STUDY PRIMARY OBJECTIVE To study, analyze and evaluate the customer satisfaction level towards the different services rendered by the bank and to identifying the critical success factors. SECONDARY OBJECTIVES To evaluate the awareness level of the customer on the product and services. To find out the differences among perceived service and expected service. To evaluate the process efficiency in customer query and requirement handling To understand consumers preferences. To access the degree of satisfaction of the customers. SCOPE OF THE STUDY To come out with necessary suggestion so as to improve the Banks plan and services more in that particular area. To make suggestions to simplify the existing requirements for providing deposits. To know the perception of consumers regarding deposit productss while going for a deposit account in any bank.
LIMITATIONS Time limit. Survey carried at Saheed Nagar only. Some customers were not co-operating (not willing to give data). Possibility of error in analysis of data due to small sample size. The analysis may not be applicable to other areas.
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Chapter III RESEARCH METHODOLOGY
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RESEARCH DESIGN Research design is a set of advance decisions that make up the master plan specifying the methods and procedures for collecting and analyzing the needed information. It is the arrangement of conditions for collection and analysis of data in a manner that aims to combine relevance to the research purpose with economy in procedure and is the conceptual structure within which research is conducted. It constitutes the blueprint for the collection, measurement and analysis of data. TYPE OF DATA COLLECTED: There are two types of data used in the project report. They are primary and secondary data. Primary data is defined as data that is collected from original sources for a specific purpose. Secondary data is data collected from indirect sources. DATA COLLECTION: The present study demands for both quantitative and qualitative analysis and it needs primary as well as secondary data. 1. PRIMARY DATA:Primary data are collected from selected customers bank in Saheed Nagar and through preceded questionnaire and discussion with customers in general. 2. SECONDARY DATA:Secondary data are collected from annual RBI Bulletins, various reports on Indian banks, various articles on related fields etc. With the help of technology a wide range of information was gathered from internet. A number of websites are looked into for the study.
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Chapter-IV DATA ANALYSIS & INTERPRETATION
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1. What type of product account are you having? A-- savings account C--fixed deposit account B-- current account Dtax saving product
TABLE 1
TYPE OF DEPOSIT PRODUCT TO OPPERATE WITH BANK SL NO 1 PRODUCT TYPE SAVING DEPOSIT PRODUCT 2 CURRENT DEPOSIT PRODUCT 3 FIXED DEPOSIT PRODUCT 4 TAX SAVING PRODUCT INTERPERTATION: Most of the respondents are prefer savings deposit product. Presently the bank offers the varieties of deposit products to the customer. 2 5% 10 25% 8 20% NO OF % OF
RESPONDENTS 20
RESPONDENTS 50%
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CHART 1
DEPOSIT PRODUCT TYPE

50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% SAVING DEPOSIT PRODUCT CURRENT DEPOSIT PRODUCT FIXED DEPOSIT PRODUCT TAX SAVING PRODUCT SAVING DEPOSIT PRODUCT CURRENT DEPOSIT PRODUCT FIXED DEPOSIT PRODUCT TAX SAVING PRODUCT
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2. How do you rate the facilities provided by ubi in comparison to sbi & boi ? A-excellent B- very goo C- good D- average E- poor
TABLE 2
FACILITY LEVEL OF UBI THAN SBI AND BOI.
SL NO
FACILITY LEVEL
NUMBER
OF %
OF
RESPONDENTS 10 18 6 4 2 40
RESPONDENTS 25% 45% 15% 10% 5% 100%
1 2 3 4 5
Excellent Very good Good Average Poor Total
INTERPERTATION: Most of the respondents say UBI offering very good facility to its customer. But to other end few people says the facilities are less.
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CHART 2
FACILITY LEVEL
45% 40% 35% 30% 25% 20% 15% 10% 5% 0% EXCELLENT VERY GOOD GOOD AVERAGE POOR EXCELLENT VERY GOOD GOOD AVERAGE POOR
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3. What type of product account are you having A-- savings account C--fixed deposit account B-- current account Dtax saving product
TABLE
VALUE ADDED SRVICE OF UBI. SL NO VALUE ADDED SEVICE 1 Young stars 8 20% NUMBER RESPONDENTS OF % OF RESPONDENTS
Senior citizens
16
40%
Prepaid cards
12
30%
Recurring deposits Total
10%
40
100%
INTERPERTATION: Most of the respondents are utilizing the value added service as senior citizen accounts. But rarely very few people are choosing recurring deposit account.
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CHART 3
VALUE ADDED SERVICE.
40% 35% 30% 25% 20% 15% 10% 5% 0% YOUNG STARS SENIOR CITIZENS PREPAID CARDS RECURRING DEPOSITS YOUNG STARS SENIOR CITIZENS PREPAID CARDS RECURRING DEPOSITS
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4. How do ypu rate the products and services offered by ubi than others? A-excellent B- very good C- good D- average E- poor
TABLE 4
PRODUCT RATINGS OF UBI FROM OTHERS. SL NO 1 2 3 4 5 PRODUCT RATINGS Excellent Very good Good Satisfactory Poor Total NUMBER OF % OF
RESPONDENTS 8 18 8 4 2 40
RESPONDENTS 20% 45% 20% 10% 5% 100%
INTERPERTAION: Most of the respondents are rating the products as very good. Moderate peoples are rating as excellent. Only few peoples are rating the UBI products are poor.
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CHART 4
PRODUCT RATINGS.
45% 40% 35% 30% 25% 20% 15% 10% 5% 0% EXCELLENT VERY GOOD GOOD SATISFACTORY POOR
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5. Will u suggest ubi to your friends/relatives for its service? Yes no not sure
TABLE 5
REFERRING UBI FROM OTHERS. SL NO 1 2 3 REFERRING UBI Yes No Not sure Total NUMBER OF % OF
RESPONDENTS 28 10 2 40
RESPONDENTS 70% 25% 5% 100%
INTERPERTATION: Most of the respondents are obviously ready to refer UBI to their friends, relatives and others. But few of them are not sure on this decision also some people are straight forward in not referring UBI to others.
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CHART 5 REFERRING UBI

80% 70% 60% 50% 40% 30% 20% 10% 0% YES NO NOT SURE YES NO NOT SURE
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6. How long have you been banking with ubi? A< 1 year C5-10 year B-- 1-5 year D-->10 year
TABLE 6 RELATIONSHIP WITH UBI. SL NO UBI ACCOUNT OPERATIONS 1 . 2 3 4 < 1 YEAR 1-5 YEAR 5-10 YEAR >10 YEAR TAOTAL 8 20 8 4 40 20% 50% 20% 10% 100% NUMBER OF % OF
RESPONDENTS
RESPONDENTS
INTERPERTATION: Most of the respondents are satisfied with service offered by UBI. Presently the bank has more customers who have the account with them for more than a year and less than 5 year. CHART 6 UBI ACCOUNT OPERATIONS.
50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% <1 YEAR 1-5 YEARS 5-10 YEARS >10 YEARS <1 YEAR 1-5 YEARS 5-10 YEARS >10 YEARS
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7. What are the other products and services offered by ubi to the customers? A-- visa debit card B-- visa credit card
TABLE 7 OTHER MAJOR SERVICES OF UBI. SL NO OTHER MAJOR SERVICES 1 Visa card 2 Visa card Total 40 100% credit 14 35% debit 26 65% NUMBER OF % OF
RESPONDENTS
RESPONDENTS
INTERPERTATION: Most of the respondents are utilizing the debit card service and few of respondents are utilizing credit card service.
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CHART 7 OTHER MAJOR SERVICE.
70% 60% 50% 40% 30% 20% 10% 0% VISA DEBIT VISA CREDIT CARD CARD SERVICE SERVICE VISA DEBIT CARD SERVICE VISA CREDIT CARD SERVICE
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8. What type of customer mostly using locker facilities in the bank? A--business people B-- govt staffs C-- house wifes
TABLE 8 LOCKER FACILITY AVAILING CUSTOMER
SL NO
LOCKER FACILITY PREFERENCE
NUMBER
OF %
OF
RESPONDENTS
RESPONDENTS
1 2 3
Business people
22
55% 30% 15% 100%
Government staff 12 House wife Total 6 40
INTERPERTATION: Most of the respondents say they are utilizing the locker facility in UBI. The main players are business class people. Followed by GOVT staff and then house wifes.
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CHART 8 LOCKER FACILITY PREFERENCE.
60% 50% 40% BUSINESS PEOPLE 30% 20% 10% 0% BUSINESS PEOPLE GOVT STAFF HOUSE WIFE GOVT STAFF HOUSE WIFE
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9. How is the relationship between the bank and customers? Aexcellent Bvery good Cgood Daverage E--poor
TABLE 9 RELATIONSHIP BETWEEN BANKER AND CUSTOMER. SL RELATIONSHIP NUMBER OF % OF
NO BETWEEN BANKER AND
RESPONDENTS
RESPONDENTS
CUSTOMER 1 2 3 4 5 Excellent Very good Good Average Poor Total 4 14 10 6 6 40 10% 35% 25% 15% 15% 100%
INTERPERTAION: Most of the respondents are having very good relationship between bank and customer. But few of customers are feeling it is average and some feel it is poor in relationship.
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CHART 9
RELATIONSHIP BETWEEN BANK AND CUSTOMER.
35% 30% 25% EXCELLENT 20% 15% 10% 5% 0% EXCELLENT VERY GOOD GOOD AVERAGE POOR VERY GOOD GOOD AVERAGE POOR
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10. Give your openion about the charges levied by ubi for the service provided? Ahigh Bmoderate C--low
TABLE 10
OPINION ABOUT CHARGES LEVIED BY UBI. SL NO CHARGES NUMBER OF % OF
LEVIED BY RESPONDENTS UBI
RESPONDENTS
1 2 3
High Moderate Low Total
10 26 4 40
25% 65% 10% 100%
INTERPERTATION: Most of the respondents are not satisfied the charges levied by UBI. Customers are expecting the charges to be reduced to get more benefit from bank.
CHART 10 CHARGES LEVIED BY UBI.

70% 60% 50% 40% 30% 20% 10% 0% HIGH MODERATE LOW HIGH MODERATE LOW
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11. How would you know the product and services of ubi? Aadvertisements Cawareness B-- friends & relatives D-- direct selling agents
TABLE 11 HOW DO YOU KNOW UBI. SL HOW YOU NUMBER OF % OF
NO KNOW UBI 1 2 Advertisements Friends relatives 3 4 Awareness Direct agents Total
RESPONDENTS 8 & 24
RESPONDENTS 20% 60%
6 selling 2
15% 5%
40
100%
INTERPERTATION: Most of the respondents tell they are referred by their friends & relatives. Where very few came by the advertisements and the awareness created by the bank. Very less in count is generated by their direct selling agents.
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CHART 11 HOW YOU KNOW UBI.
70% 60% 50% 40% 30% 20% 10% 0%
ADVERTISEMENTS FRIENDS % RELATIVES AWARENESS DIRECT SELLING AGENTS
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12. Can we have the discussion with the bank manager in case of any clarifications? Ayes Bno
TABLE 12 IS MANAGER AVAILABLE FOR ANY CLARIFICATION?
SL NO 1 2
MANAGER DISCUSSION Yes No Total
NUMBER
OF %
OF
RESPONDENTS 30 10 40
RESPONDENTS 75% 5% 100%
INTERPERTATION: Most of the respondents are satisfied with the clarification facility with manager. But some customers feel not so.
CHART 12 MANAGER DISCUSSION.

80% 70% 60% 50% 40% 30% 20% 10% 0% YES NO YES NO
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FINDING OF STUDY
Most of the respondents are opinion that customers are choosing savings account products of UBI. Most of the respondents are opinion that the customers are satisfied with the service and quality of products in UBI. Most of the respondents are opinion that the customers are choosing senior citizen service in UBI. Most of the respondents rated that UBI products are good. Most of the respondents are ready to refer UBI to others. Most of the respondents have relationship with the UBI for about 1-5 years. Most of the respondents are opinion that the Visa Debit card service is the major service in UBI. Most of respondents are utilizing the locker facility in UBI by business class people. Most of respondents are opinion that the publicity of UBI to the people is done through by friends and relatives. Most of respondents are sure that the levied charges by UBI are moderate. Most of respondents are satisfied with the manager availability for any clarification. Most of respondents are opinion that the customers have very good relationship with UBI.
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SUGGESTIONS & RECOMMENDATIONS
With regard to banking products and services, customers respond at different rates, depending on the customers characteristics, Hence UBI should try to bring their new products and services to the attention of potential early adopters. Due to the intense competition of financial market, UBI should adopt better strategies to attract more customers. UBI should adopt effective promotional strategies to increase the awareness level among the customers. UBI should ask for their consumer feedback to know whether the customers are really satisfied or dissatisfied the product and service of the bank. If they are dissatisfied, then the reasons of dissatisfaction should be found out and should be corrected in future. The UBI brand name has earned a lot of goodwill and enjoys high brand equity. As there is intense competition, UBI should work hard to maintain its position and offer better service and products to customers. Majority of the people find banking important in their life, so UBI should employ the strategies to convert the want in to need which will enrich their business. The bank may conduct schemes week or months for promotion products. A refined data base may be used for sending personal reminders to the customers. Cost effective, visually appearing tools like bulletin board may be used for promotions. Direct mailers may be sent to co-operate to account holder.
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CONCLUSIONS The project entitled THE STUDY ON CUSTOMER SATISFICATION ON THE PRODUCTS AND SERVICES OFFERED BY UBI has helped me in studying satisfaction about product and services offered to the customers. Since the opening of the banking sector, private banks are in the fray each one trying to cover more market share than the others. Yet, UBI is far behind from SBI & BOI. UBI must also be alert what with the private banks (ICICI, HDFC) breathing down its neck.
I am sure the bank will find my findings relevant and I sincerely hope it uses my suggestions enlisted, which I hope will take them miles ahead of competition.
In short, I would like to say that the very act of the concerned management at UBI in giving me the job of critically examining the consumer satisfaction towards financial products and services of the company is a step in their continual mission of making all round improvements as a means of progress
I am sure the bank has a very bright future to look forward to and will be a trailblazer in its own right.
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BIBILOGRAPHY
http://www.unitedbankofindia.com http://www.rbi.org.in http://www.rbi.org.in/scripts/PublicationsView.aspx?id=7318 http://www.indiainfoline.com/Markets/Company/Background/CompanyProfile/United-Bank-of-India/533171 http://www.nseindia.com http://rbi.org.in/scripts/BS_ViewMasCirculardetails.aspx?id=5140 RBI Circular no. RBI/2011-12/72. DBOD.AML.BC.No.2/14.01.001/2011-12 dated 01.07.2011 UBI Press release, FY 2011-2012 UBI Financial Results 2012 http://shodhganga.inflibnet.ac.in/bitstream/10603/377/7/07_chapter%202.pdf http://shodhganga.inflibnet.ac.in/bitstream/10603/544/9/09_chapter2.pdf http://www.scribd.com/ http://www.york.cuny.edu/~washton/student/Org-Behavior/lit_rev_eg.pdf Hughes, G D. (1969). The Boston Five Cents Savings Bank'. Research Paper, Graduate School of Business, Harvard University, Boston. Saraiya R.G., Report of the Banking Commission, Govt. of India 1972, pp 89.97 & 572
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Boyd, W.L., Leonard, M and White, C. (1994). Customer preferences for Financial Services: An analysis'. International Journal of Bank Marketing, 12(1), 0- 15.
Rajagopala Nair (1994). 'Rural Bank Marketing in Kerala'. Unpublished Doctoral Dissertation, University of Kerala.
Meidan A (1976). 'Branch Manager's Attitude on Bank Objectives and Operations'. Proceedings of the European Academy of' Advanced Research in Marketing Conference, France: Insend, 215-228.
Laroche, M., Rosenblatt, J.A and Manning, T. (1986). Services used and factors considered important in selecting a bank: An investigation across diverse demographic segments. International Journal of Bank Marketing, 4(1).
Archana Mathur, Customer Service in Public Sector Banks, A comparative study, Indian Journal of Marketing, Vol. XVIII No. 3-10 April - June 1988, p.39. Khler, H. (1996), in Mura, J. (ed), History of European Savings Banks, Deutscher Sparkassenverlag GmbH, Stuttgart.
BOOKS: Banking Law and Practice.
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Questionnaire 1. Name of the customer2. Contact no3. Occupation4. Age 5. Gender6. Addressmale
(Anexure)
female
7. Are you having an bank account ? yes no
8. How do you rate the facilities provided by ubi in comparison to sbi & boi ? A-excellent B- very good 9. What type of product account are you having A-- savings account C--fixed deposit account B-- current account Dtax saving product C- good D- average E- poor
10. What type of value added service provide by ubi? A- young stars C- prepaid cards B-senior citizens D- recurring deposits
11. How do you rate the products and services offered by ubi than others? A-excellent B- very good C- good D- average E- poor
12. Will u suggest ubi to your friends/relatives for its service? Yes no not sure
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13. How long have you been banking with ubi? A< 1 year C5-10 year B-- 1-5 year D-->10 year
14. What are the other products and services offered by ubi to the customers? A-- visa debit card B-- visa credit card
15. What type of customer mostly using locker facilities in the bank? A--business people B-- govt staffs C-- house wifes
16. How is the relationship between the bank and customers? Aexcellent Bvery good Cgood Daverage E--poor
17. Give your openion about the charges levied by ubi for the service provided? Ahigh Bmoderate C--low
18. How would you know the product and services of ubi? Aadvertisements Cawareness B-- friends & relatives D-- direct selling agents
19. Can we have the discussion with the bank manager in case of any clarifications? Ayes Bno
signature
thank you
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UNITED BANK OF INDIA

(Recognized by AICTE, Ministry of HRD, Govt. of India)

ASIAN SCHOOL OF BUISINESS MANAGEMENT

ASIAN SCHOOL OF BUSINESS MANAGEMENT[Type text]

UNITED BANK OF INDIA

Chapter-I Chapter-II Chapter-III Chapter-IV

Introduction Project work Research methodology Data analysis & interpretation

11-36 37-46 47-48 49-70

Suggestion, recommendation & conclusion

ASIAN SCHOOL OF BUSINESS MANAGEMENT[Type text]

UNITED BANK OF INDIA

CERTIFICATE FROM CORPORATE GUIDE

CHIEF MANAGER UNITED BANK OF INDIA SAHEED NAGAR BRANCH BBSR

ASIAN SCHOOL OF BUSINESS MANAGEMENT[Type text]

UNITED BANK OF INDIA

CERTIFICATE FROM FACULTY GUIDE

Professor/Associate Professor/Assistant Professor, Asian School of Business Management Faculty Guide

ASIAN SCHOOL OF BUSINESS MANAGEMENT[Type text]

UNITED BANK OF INDIA

Diliip Kumar Behera PGDM-BIFS/2011-13/07

ASIAN SCHOOL OF BUSINESS MANAGEMENT[Type text]

UNITED BANK OF INDIA

Dillip Kumar Behera

ASIAN SCHOOL OF BUSINESS MANAGEMENT[Type text]

UNITED BANK OF INDIA

ORGANIZATION: United Bank of India, Saheed Nagar, Bhubaneswar, Odisha.

INSTITUTE:Asian School Of Business Management, Bhubaneswar.

PROJECT PERIOD:25 April - 2012 to 19 June - 2012

ASIAN SCHOOL OF BUSINESS MANAGEMENT[Type text]

UNITED BANK OF INDIA

ASIAN SCHOOL OF BUSINESS MANAGEMENT[Type text]

UNITED BANK OF INDIA

ASIAN SCHOOL OF BUSINESS MANAGEMENT[Type text]

UNITED BANK OF INDIA

ASIAN SCHOOL OF BUSINESS MANAGEMENT[Type text]

UNITED BANK OF INDIA

ASIAN SCHOOL OF BUSINESS MANAGEMENT[Type text]

UNITED BANK OF INDIA

INTRODUCTION BANKING IN INDIA

ASIAN SCHOOL OF BUSINESS MANAGEMENT[Type text]

UNITED BANK OF INDIA

Phase I: Pre Nationalization Era

ASIAN SCHOOL OF BUSINESS MANAGEMENT[Type text]

UNITED BANK OF INDIA

Phase II: Nationalization Stage

ASIAN SCHOOL OF BUSINESS MANAGEMENT[Type text]

UNITED BANK OF INDIA

( 1st March 1960) ( 1st January 1968)

8. State Bank of Travancore ( 1st January 1960)

ASIAN SCHOOL OF BUSINESS MANAGEMENT[Type text]

UNITED BANK OF INDIA

ASIAN SCHOOL OF BUSINESS MANAGEMENT[Type text]

UNITED BANK OF INDIA

ASIAN SCHOOL OF BUSINESS MANAGEMENT[Type text]

UNITED BANK OF INDIA

Phase III: Post Liberization Era Thrust on Quality & Profitability

ASIAN SCHOOL OF BUSINESS MANAGEMENT[Type text]

UNITED BANK OF INDIA

ASIAN SCHOOL OF BUSINESS MANAGEMENT[Type text]

UNITED BANK OF INDIA

ASIAN SCHOOL OF BUSINESS MANAGEMENT[Type text]

UNITED BANK OF INDIA

ABOUT UNITED BANK OF INDIA