INDUSTRY INTRODUCTION

What is Banking?
The Banking Regulation Act 1949 defines banking as Accepting, for the purpose of
lending or investment, of deposits of money from the public repayable on demand or
otherwise and withdrawal by cheque draft, order or otherwise. In addition, banks also
offer financial services, which include:
Issuing demand draft & travelers cheque.
Credit cards
Collection of cheques, bill of exchange.
Safe deposit lockers
Custodian services.
Investment and Insurance Services.
The business of banking is highly regulated since banks deal with money offered to them
by the public and ensuring the safety of this public money is one of the prime
responsibilities of any bank. That is why banks are expected to be prudent in their leading
and investment activities.
Every bank has a compliance department, which is responsible to ensure that all the
services offered by the bank, and the processes followed are in compliance with the local
regulations and the Banks corporate police
The major regulations and act governing the banking business are:-
Banking Regulation Act, 1949
Foreign Exchange Management Act,1999
Indian Contract Act
Negotiable Instruments Act, 1881
Bank lend money either for productive purposes to individual, firms, Corporate etc. of for
buying house property, cars and other consumer durables and for investment purposes to
individuals and the others. However, banks do mot finance any speculative activity.
Lending is risk taking. The Depositor of banks is also assured of safety of their money
by deploying some percentage of deposit in statutory reserves like SLR & CLR.




BANKING INDUSTRY
Banking System
Banking system is an integral sub-system of the financial system. It represent an
important channel of collecting small saving from the households and ending it to the
corporate sector.
The Indian Banking system has the Reserve Bank of India (RBI) as the apex body for all
matters relating to the banking system. It is the comucopia of Banks of India and bankers
to all others banks as well.
Classification of Banks
1. Non-Schedule Banks
These are banks, which are not included in the second schedule of the Banking
Regulations Act, 1965. It means they do not satisfy the conditions laid down by
that schedule. They are further classified as back:
Central co-operative banks and primary credit societies
Commercial Banks

2. Schedule Banks
Must have paid-up capital and reserve of mot less than Rs. 50,00,000. The must
satisfy the RBI than its affairs are mot conducted in a manner detrimental to the
interests of its depositors. These are further classified as follow:
State co-operative Banks
Commercial Banks














ROLE OF BANKS
A proper financial sector is of special importance for the economic growth of developing
and underdeveloped countries. The commercial banking sector which forms one of the
backbones of the financial sector should be well organized and efficient for the growth
dynamics of a growing economy. No underdeveloped country can progress without first
setting up a sound system of commercial banking. The importance of a sound system of
commercial banking for a developing country may be depicted as follows:
Capital Formation: The rate of saving is generally low in an underdeveloped economy
due to the existence of deep-rooted poverty among the people. Even the potential savings
of the country cannot be realized due to lack of adequate banking facilities in the country.
To mobilize dormant savings and to make them available to the entrepreneurs for
productive purposes, the development of a sound system of commercial banking is
essential for a developing economy.

Monetization: An underdeveloped economy is characterized by the existence of a large
non monetized sector, particularly; in the backward and inaccessible areas of the country.
The existence of this non monetized sector is a hindrance in the economic development
of the country. The banks, by opening branches in rural and backward areas, can promote
the process of monetization in the economy.

Innovations: Innovations are an essential prerequisite for economic progress. These
innovations are mostly financed by bank credit in the developed countries. But the
entrepreneurs in under developed countries cannot bring about these innovations for lack
of bank credit in an adequate measure. The banks should, therefore, pay special attention
to the financing of business innovations by providing adequate and cheap credit to
entrepreneurs.

Finance for Priority Sectors: The commercial banks in underdeveloped countries
generally hesitate in extending financial accommodation to such sectors as agriculture
and small scale industries, on account of the risks involved there in. They mostly extend
credit to trade and commerce where the risk involved is far less .But for the development
of these countries it is essential that the banks take risk in extending credit facilities to the
priority sectors, such as agriculture and small scale industries.

Provision for Medium and Long term Finance: The commercial banks in underdeveloped
countries invariably give loans and advances for a short period of time. They generally
hesitate to extend medium and long term loans to businessmen. As is well known, the
new business need medium and long term loans for their proper establishment. The
commercial banks should, therefore, change their policies in favor of granting medium
and long term accommodation to business and industry.

Cheap Money Policy: The commercial banks in an underdeveloped economy should
follow cheap money policy to stimulate economic activity or to meet the threat of
business recession. In fact, cheap money policy is the only policy which can help
promote the economic growth of an underdeveloped country. It is heartening to note that
recently the commercial banks have reduced their lending interest rates considerably.

Need for a Sound Banking System: A sound system of commercial banking is an
essential prerequisite for the economic development of a backward country.


Role of Banks in Indian Economy

In India, as in many developing countries, the commercial banking sector has been the
dominant element in the countrys financial system. The sector has performed the key
functions of providing liquidity and payment services to the real sector and
hasaccountedfortheBulkofthefinancialintermediationprocess.Besidesinstitutionalizingsavi
ngs, the banking sector has contributed to the process of economic development by
serving as a major source of credit to households, government, and business and to
weaker sectors of the economy like village and small scale industries and agriculture.
Over the years, over 30-40% of gross household savings have been in the form of bank
deposits and around 60% of the assets of all financial institutions accounted for by
commercial banks.
An important landmark in the development of banking sector in recent years has been
the initiation if reforms following the recommendations of the first Narasimham
Committee on Financial System. In reviewing the strengths and weaknesses of these
banks, the Committee suggested several measures to transform the Indian banking sector
from a highly regulated to a more market oriented system and to enable it to compete
effectively in an increasingly globalised environment. Many of the recommendations of
the Committee especially those pertaining to Interest rate, an institution of prudential
regulation and transparent accounting norms were in line with banking policy reforms
implemented by a host of developing countries since 1970s.





Role of Central Bank (RBI)

The main objectives for the establishment of the Central Bank were as follows:
To manage the monetary and credit system of the country.
To stabilize internal and external value of rupee
For balanced and systematic development of banking in the country
For the development of organized in the money market in the country.
For proper arrangement of agriculture finance.
For proper arrangement of Industrial Finance.
To establish monetary relations with other countries of the world & international
financial institutions.
For proper management of public debts.
For centralization of cash reserves of commercial bank.
















COMPANY PROFILE

Union Bank of India (UBI) is one of India's largest state-owned banks (the
government owns 55.43% of its share capital), is listed on the Forbes 2000. It has assets
of USD 13.45 billion and all the bank's branches have been networked with its 1135
ATMs. Its online Telebanking facility is available to all its Core Banking Customers -
individual as well as corporate. It has representative offices in Abu Dhabi, United Arab
Emirates, and Shanghai, Peoples Republic of China, and a branch in Hong Kong

The Union Bank of India was built up in twentieth century and declared open by
the Father of the Nation, Mahatma Gandhi. The bank with its efficient value-added
services, sustained growth, consistent profitability and development of new technologies
bank has ensured complete customer delight, living up to its image of, GOOD PEOPLE
TO BANK WITH. Bank is offering credit cards, home loan, union demat, Kisan ATM,
International debit card, online tax payment facility, Railway e-ticketing kiosk, etc.,
services to its customers through core banking solution.

The Union Bank of India has 2261 branches out which 1031 branches are under
CBS. All the ATMs are inter-connected through the Banks ATM Switch, thus
facilitating on-line operations in case of CBS customers. The Bank is a member of Cash
Tree consortium and also has bilateral arrangement with State Bank of India, enabling the
Banks ATM cardholder access to over 20000 ATMs across the country. UBI Net
connects 65 Offices and 984 branches located in 323 centers, facilitating speedier
transmission of MIS data (Network Map). The network also facilitates the
implementation of Core Banking Solution, apart from DEMAT services, Cash
Management services, fund transfers, messaging system, etc. The Bank is using VSAT
network for connecting branches and ATMs wherever leased line connectivity is not
feasible. We have 590 VSATs operational, connecting 194 branches/extension counters
and 316 ATMs.


PRODUCTS AND SERVICES
UNION BANK OF INDIA provides various types of product and services .The wide
range of product and services consists of
BANKING
Accounts & Deposits cumulative deposit scheme, deposit reinvestment
certificate, monthly income scheme, union flexi-deposit, senior citizens scheme,
multi gain savings account, no frills saving account, union super salary account,
union classic current account
Retail Loans union cash, union home, union health, union miles, union
education, union top up, EMI calculator, union smile.
Cards - Classic / Silver / Gold, Corporate Credit Cards, Add-On Cards
Insurance & Investment mutual fund, union healthcare
Demit demit accounts, online share trade
Payment
NRI Banking
Remittance - Union E-Remit, Details for Remittance
Savings & Deposits - NRO Non Resident Ordinary A/c Scheme, NRE Non
Resident External Rupee, RFC, FCNR(B), Union Unfixed, Foreign Currency
Deposit
Loan & Services house loans, foreign currency loans, loans against deposit,
immovable property, and shares or debenture
Payments - Union Bill Pay
Corporate Banking
CMS - Union Speed, Union Centralized Debits/Credits, Union Prompt
E-Tax - Customs and Direct taxes, DGFT, Central Excise and Service Tax
Trade Finance trade finance for exporters, trade finance for importers, foreign
currency loans, correspondent banking
Insurance - Non life Insurance Corporate Agency, Insurance- Corporate Agency
Syndication of Loans
MSME Banking
Loans & Policies
Internet Banking
Account Information
Transfer of Funds
Bills
Requests
Mails
Trade
Limits
Currency
Uploads
Customization
Financial enquiries
Non Financial enquiries





























VISION & MISSION

VISION
To be the premier financial institution in the emerging markets
Technologically Strong
Financially Sound
All India presence
Personalized Services
Value Maximization
Employee Satisfaction
Skill Maximization

MISSION
To be premiere bank, responsive to the needs of our target market customers, recognized
for consistently superior service quality innovative products, thereby delivering superior
value to our shareholders
























FINANCIAL PERFORMANCE HIGHLIGHT OF 2013-2014


Total Business size of Rs. 2, 91,289 crore as on March 31, 2013 an increase of
22.9% over previous year.
Total Deposits of Rs. 1, 70,040 crore, an increase of 22.6%. CASA deposits grew
at 29.4%, its share increased by 166 basis points to 31.73%.
Total Advances of Rs. 1, 21,249 crore, an increase of 23.4%. Retail advances
grew at 33.8%
Net Profits of Rs. 2,075 crore, an increase of 20.2% over the previous year.
Core Fee Income of Rs. 896 crore, an increase of 32.74% over the previous year.
Capital Adequacy Ratio (Basel II CAR) stood at 12.51% as on March 31, 2014 as
against regulatory minimum of 9.0%. Tier I ratio at 7.91%.
Return on average assets 1.25%.
Return on equity recorded at 23.69%.
Book Value per share of Rs. 173.38, an increase of 25.6% over the previous year.
Earnings per share increased to Rs. 41.08, compared to Rs. 34.18 of previous
year.
Cost to Income ratio of 40.66%, reduced by 115 basis points over the previous
year.
Proposed Dividend up from 50% to 55%.
Pan India reach - Network of 2,805 branches and 2327 ATMs as on March 31,
2014.
















PROFIT & LOSS ACCOUNT
Union Bank of
India
Standalone Profit & Loss
account
------------------- in Rs. Cr. -------------------
Mar '14 Mar '13 Mar '12 Mar '11 Mar '10

12 mths 12 mths 12 mths 12 mths 12 mths

Income

Interest Earned 29,349.39 25,124.70 21,144.28 16,452.62 13,302.68

Other Income 2,821.54 2,552.03 2,332.38 2,038.78 1,974.74

Total Income 32,170.93 27,676.73 23,476.66 18,491.40 15,277.42

Expenditure

Interest expended 21,470.07 17,581.86 14,235.39 10,236.42 9,110.27

Employee Cost 3,307.77 2,755.01 2,479.83 2,600.25 1,354.99

Selling and Admin Expenses 0.00 0.00 2,181.79 1,814.19 1,225.57

Depreciation 193.78 150.92 146.45 155.66 160.14

Miscellaneous Expenses 5,503.12 5,031.01 2,646.06 1,602.94 1,351.53

Preoperative Exp Capitalised 0.00 0.00 0.00 0.00 0.00

Operating Expenses 5,482.77 4,512.17 5,498.24 5,137.69 3,206.76

Provisions & Contingencies 3,521.90 3,424.77 1,955.89 1,035.35 885.47

Total Expenses 30,474.74 25,518.80 21,689.52 16,409.46 13,202.50

Mar '14 Mar '13 Mar '12 Mar '11 Mar '10

12 mths 12 mths 12 mths 12 mths 12 mths

Net Profit for the Year 1,696.20 2,157.93 1,787.14 2,081.95 2,074.92

Extraordionary Items 0.00 0.00 0.78 0.00 0.00

Profit brought forward 0.41 0.61 0.16 1.63 0.83

Total 1,696.61 2,158.54 1,788.08 2,083.58 2,075.75

Preference Dividend 9.99 9.44 10.55 5.16 0.00

Equity Dividend 252.12 477.44 440.44 419.47 277.81

Corporate Dividend Tax 44.55 82.74 73.16 68.60 47.21

Per share data (annualised)

Earning Per Share (Rs) 26.75 36.00 32.27 39.61 41.08

Equity Dividend (%) 40.00 80.00 80.00 80.00 55.00

Book Value (Rs) 291.36 287.96 235.91 211.31 174.37

Appropriations

Transfer to Statutory Reserves 1,389.54 884.52 760.32 968.20 1,177.09

Transfer to Other Reserves 0.00 703.99 503.00 621.99 572.01

Proposed Dividend/Transfer to
Govt
306.66 569.62 524.15 493.23 325.02

Balance c/f to Balance Sheet 0.41 0.41 0.61 0.16 1.63

Total 1,696.61 2,158.54 1,788.08 2,083.58 2,075.75


BALANCE SHEET
Key Financial Ratios of Union Bank of
India



Mar
'14
Mar '13 Mar '12 Mar '11 Mar '10


Investment Valuation Ratios

Face Value 10.00 10.00 10.00 10.00 10.00

Dividend Per Share 4.00 8.00 8.00 8.00 5.50

Operating Profit Per Share (Rs) 41.10 53.31 50.80 47.03 49.70

Net Operating Profit Per Share (Rs) 465.64 420.99 406.57 337.27 290.37

Free Reserves Per Share (Rs) -- -- 97.35 80.72 58.38

Bonus in Equity Capital -- -- -- -- --

Profitability Ratios

Interest Spread 6.25 -- 3.85 3.87 3.49

Adjusted Cash Margin(%) 5.87 8.34 8.25 12.11 14.52

Net Profit Margin 5.27 7.79 7.63 11.27 13.47

Return on Long Term Fund(%) 127.39 119.36 129.38 117.88 135.60

Return on Net Worth(%) 9.18 12.50 13.67 18.74 23.55

Adjusted Return on Net Worth(%) 9.18 12.50 13.68 18.74 23.56

Return on Assets Excluding
Revaluations
291.36 287.96 235.91 211.31 174.37

Return on Assets Including
Revaluations
291.36 287.96 263.77 241.33 206.36

Management Efficiency Ratios

Interest Income / Total Funds 8.82 8.78 9.04 8.26 8.31

Net Interest Income / Total Funds 2.37 2.63 3.29 3.48 3.15

Non Interest Income / Total Funds 0.85 0.89 0.42 0.36 0.41

Interest Expended / Total Funds 6.45 6.14 5.75 4.78 5.16

Operating Expense / Total Funds 1.59 1.52 2.16 2.33 1.73

Profit Before Provisions / Total
Funds
1.57 1.95 1.49 1.44 1.74

Net Profit / Total Funds 0.51 0.75 0.72 0.97 1.18

Loans Turnover 0.26 0.28 0.14 0.13 0.14

Total Income / Capital Employed(%) 9.67 9.67 9.46 8.63 8.73

Interest Expended / Capital
Employed(%)
6.45 6.14 5.75 4.78 5.16

Total Assets Turnover Ratios 0.09 0.09 0.09 0.08 0.08

Asset Turnover Ratio 0.09 0.09 0.09 0.08 4.34

Profit And Loss Account Ratios

Interest Expended / Interest Earned 73.15 69.98 67.33 62.22 68.48

Other Income / Total Income 8.77 9.22 4.43 4.23 4.73

Operating Expense / Total Income 16.44 15.76 22.85 26.98 19.79

Selling Distribution Cost
Composition
-- -- 0.30 0.53 0.26

Balance Sheet Ratios

Capital Adequacy Ratio 10.80 11.45 11.85 12.95 12.51

Advances / Loans Funds(%) 74.56 -- 77.92 76.44 74.15

Debt Coverage Ratios

Credit Deposit Ratio 40.81 36.55 77.32 72.56 69.91

Investment Deposit Ratio 31.09 29.43 28.39 30.28 31.55

Cash Deposit Ratio 5.20 4.60 6.88 8.07 6.95

Total Debt to Owners Fund 16.22 15.35 17.17 18.28 19.31

Financial Charges Coverage Ratio 0.25 0.33 0.27 0.32 0.36

Financial Charges Coverage Ratio
Post Tax
1.09 1.13 1.14 1.22 1.25

Leverage Ratios

Current Ratio 0.02 0.78 0.02 0.02 0.02

Quick Ratio 30.41 31.85 28.45 23.22 24.65

Cash Flow Indicator Ratios

Dividend Payout Ratio Net Profit 14.95 22.22 24.79 20.19 15.66

Dividend Payout Ratio Cash Profit 13.41 20.76 22.90 18.78 14.54

Earning Retention Ratio 85.05 77.78 75.22 79.81 84.35

Cash Earning Retention Ratio 86.59 79.24 77.11 81.22 85.47

AdjustedCash Flow Times 157.50 114.24 115.22 90.47 76.06




Mar
'14
Mar '13 Mar '12 Mar '11 Mar '10


Earnings Per Share 26.75 36.00 32.27 39.61 41.08

Book Value 291.36 287.96 235.91 211.31 174.37


CASH FLOW
Key Financial Ratios of Union Bank
of India



Mar
'14
Mar '13 Mar '12 Mar '11 Mar '10


Investment Valuation Ratios

Face Value 10.00 10.00 10.00 10.00 10.00

Dividend Per Share 4.00 8.00 8.00 8.00 5.50

Operating Profit Per Share (Rs) 41.10 53.31 50.80 47.03 49.70

Net Operating Profit Per Share (Rs) 465.64 420.99 406.57 337.27 290.37

Free Reserves Per Share (Rs) -- -- 97.35 80.72 58.38

Bonus in Equity Capital -- -- -- -- --

Profitability Ratios

Interest Spread 6.25 -- 3.85 3.87 3.49

Adjusted Cash Margin(%) 5.87 8.34 8.25 12.11 14.52

Net Profit Margin 5.27 7.79 7.63 11.27 13.47

Return on Long Term Fund(%) 127.39 119.36 129.38 117.88 135.60

Return on Net Worth(%) 9.18 12.50 13.67 18.74 23.55

Adjusted Return on Net Worth(%) 9.18 12.50 13.68 18.74 23.56

Return on Assets Excluding
Revaluations
291.36 287.96 235.91 211.31 174.37

Return on Assets Including
Revaluations
291.36 287.96 263.77 241.33 206.36

Management Efficiency Ratios

Interest Income / Total Funds 8.82 8.78 9.04 8.26 8.31

Net Interest Income / Total Funds 2.37 2.63 3.29 3.48 3.15

Non Interest Income / Total Funds 0.85 0.89 0.42 0.36 0.41

Interest Expended / Total Funds 6.45 6.14 5.75 4.78 5.16

Operating Expense / Total Funds 1.59 1.52 2.16 2.33 1.73

Profit Before Provisions / Total Funds 1.57 1.95 1.49 1.44 1.74

Net Profit / Total Funds 0.51 0.75 0.72 0.97 1.18

Loans Turnover 0.26 0.28 0.14 0.13 0.14

Total Income / Capital Employed(%) 9.67 9.67 9.46 8.63 8.73

Interest Expended / Capital
Employed(%)
6.45 6.14 5.75 4.78 5.16

Total Assets Turnover Ratios 0.09 0.09 0.09 0.08 0.08

Asset Turnover Ratio 0.09 0.09 0.09 0.08 4.34

Profit And Loss Account Ratios

Interest Expended / Interest Earned 73.15 69.98 67.33 62.22 68.48

Other Income / Total Income 8.77 9.22 4.43 4.23 4.73

Operating Expense / Total Income 16.44 15.76 22.85 26.98 19.79

Selling Distribution Cost Composition -- -- 0.30 0.53 0.26

Balance Sheet Ratios

Capital Adequacy Ratio 10.80 11.45 11.85 12.95 12.51

Advances / Loans Funds(%) 74.56 -- 77.92 76.44 74.15

Debt Coverage Ratios

Credit Deposit Ratio 40.81 36.55 77.32 72.56 69.91

Investment Deposit Ratio 31.09 29.43 28.39 30.28 31.55

Cash Deposit Ratio 5.20 4.60 6.88 8.07 6.95

Total Debt to Owners Fund 16.22 15.35 17.17 18.28 19.31

Financial Charges Coverage Ratio 0.25 0.33 0.27 0.32 0.36

Financial Charges Coverage Ratio
Post Tax
1.09 1.13 1.14 1.22 1.25

Leverage Ratios

Current Ratio 0.02 0.78 0.02 0.02 0.02

Quick Ratio 30.41 31.85 28.45 23.22 24.65

Cash Flow Indicator Ratios

Dividend Payout Ratio Net Profit 14.95 22.22 24.79 20.19 15.66

Dividend Payout Ratio Cash Profit 13.41 20.76 22.90 18.78 14.54

Earning Retention Ratio 85.05 77.78 75.22 79.81 84.35

Cash Earning Retention Ratio 86.59 79.24 77.11 81.22 85.47

AdjustedCash Flow Times 157.50 114.24 115.22 90.47 76.06




Mar
'14
Mar '13 Mar '12 Mar '11 Mar '10


Earnings Per Share 26.75 36.00 32.27 39.61 41.08

Book Value 291.36 287.96 235.91 211.31 174.37


















INDUSTRY COMPETITORS: FINANCE - BANKS - PUBLIC SECTOR
SYMBOL PRICE CHANGE %CHANGE HIGH LOW PE DE VOLUME
Bank of India 260.95 3.35 1.30% 265.45 255.55 5.91 1.94 388325
Canara Bank 386.75 3.20 0.83% 396.40 384.90 7.01 2.86 172924
IDBI Bank Ltd. 63.75 2.15 3.49% 64.05 62.50 8.62 1.62 473959
Central Bank of India 61.30 0.05 0.08% 62.25 61.25 0.00 N.A. 59453
UCO Bank 79.20 0.20 0.25% 81.75 78.90 5.13 3.79 353776
Oriental Bank of
Commerce 256.75 10.00 4.05% 258.45 252.55 6.18 3.08 227330
Indian Overseas Bank 59.70 0.95 1.62% 60.50 58.85 11.74 2.04 112881
Indian Bank 156.95 2.85 1.85% 160.05 155.95 6.16 3.04 20560
Syndicate Bank 115.15 0.85 0.74% 117.80 114.15 4.09 4.81 233839
Allahabad Bank 106.00 2.70 2.61% 106.65 104.70 4.60 2.42 382453
Corporation Bank 323.00 0.15 0.05% 331.60 323.00 9.55 2.09 4957






GRAPHICAL REPRESENTATION OF UNION BANK FINANCIAL
The summary page of Union Bank of India captures the information on its Live Stock
Price and Volume, 52 Week High Low, Intraday and Historical Price Chart, Key Ratios,
F&O Quotes, Competitors, Comparative Analysis, Buy Sell Recommendations,
Company News and Announcements, Shareholding Pattern, Key Quarterly and Annual
P&L A/c items, and Community Prediction.




















OBJECTIVE OF THE STUDY

The objective of the study was to know the financial performance (i.e. the profitability
and financial position) of Union Bank of India for the financial year 2009-2010.
Some other objectives were as follows:

To study the evaluation and performance of the bank.
To study the financial statement.
To study the source of finance of the bank.

SCOPE OF THE STUDY
Each and every project study along with its certain objectives also has scope for future.
And this scope in future gives to new researches a new need to research a new project
with a new scope. Scope of the study not only consist one or two future business plan but
sometime it also gives idea about a new business which becomes much more profitable
for the researches then the older one.
Scope of the study could give the projected scenario for a new successful strategy with a
proper implementation plan. Whatever scope I observed in my project are not exactly
having all the features of the scope which I described above but also not lacking all the
features
Research study could give an idea of network expansion for capturing more
market and customer with better services and lower cost, without compromising
with quality.
In future customer requirements could be added with the product and services for
getting an edge over competitors.
Different parameter could also be used for the purpose of launching a new
product with extra benefits which are required by customers.
Factors which are responsible for the performance for bank can also be used for
the modification of the strategy and product for being more profitable.

These all could also be interchanged with each other for each other in banks strategies for
making a final business plan to affect the market with a positive way without disturbing a
lot to market, customers and competitors with disturbance in market shares.





RESEARCH AND METHODOLOGY
Research Methods
Study
Design
Sample
Tools
Data Collection Methods
Secondary Sources
Primary Sources
Software Used
NEED OF THE STUDY
1. To examine the Financial analysis of the company.
2. To study the recent trends.
3. To evaluate the performance of the consumers to open a account
4. To understand the basic psychology principles used.
5. To understand their impact or effect of the product on the consumers.
STUDY
This Chapter used to understand the research methodology establishing framework of evaluation
of primary and secondary research. The techniques and concepts used during primary research in
order to arrive at findings which are also dealt with and lead to a logical deduction towards the
analysis and result.
RESEARCH DESIGN
The various tasks that I have undertaken in the research design process arer :
Defining the information needed
Design the exploratory research.
SAMPLE
Total respondents: -10
Simple randomly sampling was used only employees of Union Bank of india. The total
respondents were 10.
THE TOOLS:- QUESTIONNAIRE USED
DATA COLLECTION METHODS:-
The data used for this research have been collected from both the primary and secondary sources.
SECONDARY SOURCES:-
The literature survey including the various books and references as well as journal in various
libraries Jawaharlal Nehru Library Dr. Harisingh Gour Central University, Sagar M.P, FMS
Library Dr.Harisingh Gour Central University Sagar M.P.
PRIMARY SOURCES:-
Fieldwork Field work is general descriptive term for the collection of raw data. It includes the
folloeing parts.
1. Questionnaire formation and the questions being framed for only Employees of
Bank.
2. Responses of employees were taken using structured questionnaire.
3. Structured questionnaire was designed to seek consumer responses.
SOFTWARE USED
Data analysis has been mostly carried out in the windows platform using the Microsoft office
tools. In most complicated cases the Ms Excel was used.
DATA COLLECTION
a. Primary Data: Primary data has been collected using questionnaire and interviews.
b. Secondary data: Secondary data has been obtained from the internet.
In primary data collection, you collect the data yourself using methods such as interviews
and questionnaires. The key point here is that the data you collect is unique to you and
your research and, until you publish, no one else has access to it.
There are many methods of collecting primary data and the main methods that have been
used in this research include:
questionnaires
interviews
Secondary data is data collected by someone other than the user. Common sources of
secondary data for social science include censuses, surveys, organizational records and
data collected through qualitative methodologies or qualitative research. Primary data, by
contrast, are collected by the investigator conducting the research.
Secondary data analysis saves time that would otherwise be spent collecting data and,
particularly in the case of quantitative data, provides larger and higher-quality databases
than would be unfeasible for any individual researcher to collect on their own. In addition
to that, analysts of social and economic change consider secondary data essential, since it
is impossible to conduct a new survey that can adequately capture past change and/or
developments.


















DATA ANALYSIS AND INTERPRETATION

Q1. DIVIDEND PER SHARE RATION ANALYSIS OF YEAR 2013-2014.
RATIO MARCH 2014 MARCH 2013
Dividend Per Share 4.00 8.00



In march 2014 the dividend per share ratio was 4.00 while in march 2013 was 8.00








4
8
Dividend Per Share
Mar-14
Mar-13
Q2. NET PROFIT MARGIN RATION OF YEAR 2014-2013.
RATIO MAR 2014 MAR2013
Net Profit Margin 5.27 7.79



In march 2014 the Net Profit margin ratio was 5.27 while in march 2013 it was 7.79.










5.27
7.79
Net Profit Margin
Mar-14
Mar-13
Q3. RATIO ANALYSIS OF ASSET TURNOVER RATIO OF YEAR 2013-2014.
RATIO MARC 2014 MAR 2013
Asset Turnover Ratio 0.09 0.09


In year 2014 the ratio of asset turnover was 0.09 and in march 2013 was 0.09











0.09 0.09
Asset Turnover Ratio
Mar-14
Mar-13
Q5. IN YEAR 2013-2014 THE RATIO ANALYSIS OF DIVIDEND PER SHARE
WAS.
RATIO MAR 2013 MAR 2014
Dividend Per Share 4.00 8.00



In year 2014 the ratio of dividend per share was 4.00 while in march 2014 was 8.00










4
8
Dividend Per Share
Mar-13
Mar-14
Q6. CASH DEPOSIT RATIO ANALYSIS OF YEAR 2013 AND 2014.
RATIO MAR 2014 MAR 2013
Cash Deposit Ratio 5.20 4.60



I n year 2014 the cash deposit ratio was 5.20 while in marc 2013 it was 4.60.









5.2
4.6
Cash Deposit Ratio
Mar-14
Mar-13
Q7. RATIO ANALYSIS OF CURRENT RATIO IN 2013 AND 2014 WAS.
RATIO MAR 2013 MAR 2014
CURRENT RATIO 0.02 0.78



In march 2014 the current ratio was 0.02 while in march 2013 it was 0.78.









0.02
0.78
CURRENT RATIO
Mar-13
Mar-14
Q9. RATIO ANALYSIS OF QUICK RATIO IN MAR 2014 AND MAR 2013.
RATIO MARC 2014 MAR 2013
Quick Ratio 30.41 31.85



In march 2014 the Quick ratio was 30.41 while in mar 2013 it was 31.85.









30.41
31.85
Quick Ratio
Mar-14
Mar-13
Q10. RATIO ANALYSIS OF EARNING PER SHARE IN MARC 2014 AND 2013.
RATIO MAR 2014 MAR 2013
Earning per share 26.75 36.00



In march 2014 the earning per share ratio was 26.75 while in mar 2013 it was 36.00.















26.75
36
Earning per share
Mar-14
Mar-13
FINDINGS


Total Capital Adequacy ratio (CAR), stood at 12.51%, well above the regulatory
benchmark of 9%.

Profit after tax net profit increased to Rs. 2075 crore compared to Rs. 1727 crore
achieved during last year.


The operating expenses registered a lower growth of 13.28% compared to 38.98%
growth in previous year. The operating profit of the Bank registered a growth of
18.72%.

Net-worth improved by 25.76%.


The return on equity stood at 23.69% and earnings per share increased to Rs.
41.08 from Rs. 34.18.

. Cost to Income ratio has decreased by 115bps to 40.66% as compared to 41.81%
reported during last year.


The return on average assets is maintained at a healthy rate of 1.25% as on March
31, 2014.

















LIMITATIONS OF THE STUDY
Not much information was revealed by the companies, as the executive personnel
wanted to keep certain information secret.
The time to complete the project is too little.
The area covered under the study is vast.





































CONCLUSION

The economy of the country is booming and with the investment favorable policies and
their smooth implementation, the role of banks in todays economy has become an
important one.
The banking industry is also reaping the fruits of this economic boom by growing rapidly
over the past few years. There are a number of mergers happening in the economy with
foreign investment coming into the banking sectors.
The services that union bank provides have a great market penetration not only because
of their features but also the profit and markup rates that they charge.
Furthermore, as the bank is growing, the number of employees at union bank are also
increasing, which shows that union bank is being considered as an employer, that
provides its employees with a challenging environment to work in, where they can
harness their full potential and shows confidence as an employer by the employees of the
bank.












BIBLIOGRAPHY
http://www.unionbankofindia.co.in/adt_fincial_insti.aspx
www.gogle.com
www.wikipedia.com
www.scribd.com
www.dockstock.com