![BES’s INSTITUTE OF MANAGEMENT STUDIES AND RESEARCH<br />(Approved by AICTE & Affiliated to University of Mumbai)<br />Summer Internship Report<br />On <br />5th floor, 66/80,<br />mumbai samachar marg,<br />Fort, mumbai.400023<br />Contact No: +912222642701<br />BY<br />Abhishek Krishnakumar Rane.<br />Roll No.39<br />MMS 2010-12<br />May 2011<br />A<br />PROJECT REPORT<br />ON<br />IN PARTIAL FULFILLMENT OF THE REQUIREMENT OF<br />MASTER OF MANAGEMENT STUDIES<br />CONDUCTED BY<br />UNIVERSITY OF MUMBAI<br />THROUGH<br />BES’S INSTITUTE OF MANAGEMENT STUDIES AND RESEARCH<br />UNDER THE GUIDANCE OF<br />Porf. Mr. Kanpurwala.<br />SUBMITTED BY<br />Abhishek Krishnakumar Rane.<br />MMS<br />Roll No.39<br />DECLARATION<br /> <br />I hereby declare that the Summer Internship Report submitted for the MMS Degree, BES’s Institute of Management Studies and Research (Affiliated to University of Mumbai) is my original work and conducted in Union Bank of India (IFB).<br />Place: Mumbai <br />Date: 21st July, 2011. <br />Signature of the Student<br />ACKNOWLEDGEMENTS<br />I wish to express my gratitude to Mr. P .M .PATEL & Mr. ASHEESH PANDEY from the Union Bank of India for providing me valuable information.<br />I am grateful to BES’s Institute of Management Studies and Research for giving me an opportunity to pursue MMS. I wish to thank Professor Vikram D. Shikhare, Director, BES’s Institute of Management Studies and Research who has been a perpetual source of inspiration and offered valuable suggestions to improve my practical Knowledge.<br />I am indebted to my Coordinator Mr. Kanpurwala Professor, BES’s Institute of Management Studies and Research, for abundant guidance, support, and encouragement throughout my internship Study. <br />I would like to express my thanks to various people from the Union Bank of India for their support and direction. <br />Place: Mumbai<br />Date:21st July, 2011<br />Signature of the student<br />Abhishek Krishnakumar Rane.<br />Sr. No.ContentsPage No.1Executive summary12Introduction banking industries 22.1 Global scenario of banking industry52.2 Indian scenario of banking industries 62.3 Position of all banking industry in India93Union bank of India103.1 About the bank3.2 Our Vision3.3 Mission3.4 History 113.5 Products & Services4About the Branch:- IFB (Industrial Finance Branch)124.1 Form of Management135Union bank of India CSR activities 146Financial Position of union bank of India166.1 Key performance indicators6.2 Business Performance6.3 Financial Performance7Current Strategies of Company178External Environment of the Company188.1 Swat analysis of union bank of India8.2 Internal Environment of the Company8.3 Number of Departments: In Industrial finance branch199Marketing209.1 Recovery of Credit229.2 Grievance Redressal249.3 List and profile of Local Competitor for industrial finance branch10Finance2510.1 Financial performance of union bank of India10.2 Listing in share market10.3 Table of share price for six months of Union Bank of India2610.4 CRISIL Rating for Union Bank of India10.5 CHEQUE COLLECTION POLICY2810.6 profit and loss statement 3210.7 Balance sheet3310.8 Tax provision and other provision3410.9 Key ratio of Union Bank of India11Operation and Production3511.1 Steps in term loan assessment3611.2 MARKET FEASIBILITY3711.3 ORGANIZATIONAL/MANAGERIAL FEASIBILITY3811.4 TECHNICAL FEASIBILITY11.5 FINANCIAL FEASIBILITY3911.6 Credit report & Credit Rating4012Personal and HR department4212.1 Recruitment 12.2 Training and development12.3 Performance appraisal forms of Union Bank of India (IFB)4413MIS or IT Department4513.1 Workflow for Information system in Union Bank of India (IFB)13.2 Application of Software & Hardware4614Other aspect of bank4714.1 awards / certificates received by bank4814.2 Legal Compliances of Company15Problems or Issues in Union Bank of India IFB5516Solutions of problem and issues5617Recommendations5718Learning5919Bibliography60<br />1. EXECUTIVE SUMMARY<br />I work in IFB (Industrial finance branch) on the POWER PROJECT the aspect of the power project finance and work done on “OPPORTUNITIES IN POWER SECTOR AND ITS CREDIT VIABILITY” in this we learn the how the finance institution are provide finance for this sector. The Union Bank of India is providing the finance in three main sectors like PORT, POWER, and ROAD projects.<br />Availability of power is one of the important ingredients for industrial growth. It is an important infrastructure facility without which no industrial activity can be thought of in modern times. Increasing automation of Indian industries has created huge demand of power in India. This huge demand has resulted into demand supply gap in India in recent times. The main purpose of the project is to understand the whole concept of Project financing, and its methods and needs of project financing. The objective of this report is to get a comprehensive and apparent knowledge of the power sector, and to study the changes in power sector over a period of time there by analyzing various aspects of the power sector.<br />This study examines the power project finance in India. The power sector has increased significantly during the last decade and has met the needs of the people in India. This study evaluated project structure, risk allocation, and other issues. This study benefits from a substantially greater base of activity to systematically evaluate power project finance sources, project and financial structures, and other factors for the entire market.<br />The objectives of this study were to evaluate trends in power project finance and to examine the risk-sharing arrangements between private investors and host governments that enable private power projects to obtain non-recourse finance.<br />A key objective was to assess financing structures, sources of funds, and regulatory trends for a subset of the power market involving limited. Recourse finance of power projects that sell power to utility off-takers but that are not majority-owned by the off-takers.<br />This study also includes how the credit disbursement takes place at the UBI and the process involved in it. The various analyses about the financial statements and the profitability and the DSCR.<br />2. Introduction<br />Banking industries<br />Bank may be defined as a financial institution which is engaged in the business of keeping money for savings and checking accounts or for exchange or for issuing loans and credit etc. A set of services intended for private customers and characterized by a higher quality than the services offered to retail customers.<br />Based on the notion of tailor-made services, it aims to offer advice on investment, inheritance plans and provide active support for general transactions and the resolution of asset-related problems.<br />The essential function of a bank is to provide services related to the storing of deposits and the extending of credit. Basic function may include Credit collection, Issuer of banking notes, Depositor of money and lending loans.Now a day’s banking is not in its traditional way , with the advancement of technology its focusing on more comfort of customer providing services such as:<br />• Online banking• investment banking• electronic banking• internet banking• pc banking /mobile banking• e-banking<br />The importance of banking sector is immense in the progress and prosperity of any State or country.<br />The economic progress and prosperity comes from the well-rounded development and an impeccable banking management. Banks in general, governmental and private, have eased our financial transactions, security, and facilitated the funding for establishing a business or industry.<br />Business banking industry is the industry in business banking dealing with the different banking transactions which take place while conducting a business. Business banking can also be referred to as commercial banking. Business banking industry deals with all the functions ranging from transferring funds, business loans, online business transactions etc. <br />The success of a business largely depends on selecting the correct bank for carrying out all the transactions efficiently.<br />Banks falling under the category of business banking industry offer different charges and rates for the different business banking services. One needs to check and compare the charges offered by the different banks.<br />One needs to understand that opening an account under the business banking industry is vital as one is expected to maintain a long relationship with the bank offering business banking services. Many prefer to bank with the same bank where one has the personal bank account. If an individual has maintained a good track record during the tenure of personal banking , it can work to ones advantage for availing the different business banking services offered by the business banking industry.<br />The bank is required to have a business banking team<br />Services offered by the business banking service team<br />Cost of the services offered by the bank offering business banking services under business banking industry.<br />Whether the bank offering business banking services imposes fee for every single transaction or a lump sum for a particular category of transaction. There are some banks which impose fees for performing monetary transactions on behalf of the business banking account holder. One needs to clarify the same.<br />The business banking industry also requires that the bank offering business banking services should have a local branch situated in the city of the business banking account holder. Once a bank is selected an individual is required to open an account. The type of account one should go for is determined by the number of transactions taking place every day.<br />Under the business banking industry the following types of business banking accounts may be required by an entrepreneur. Current account: This can be used for carrying out everyday transactions including payments, taking deposits.<br />Instant access deposit account :This type of bank account is not needed for daily transactions.<br />Term deposit account:In this type of account, the money is not required for the daily transaction. Not only that the money is not likely to be required for quite some time.<br />Foreign currency account: A foreign currency account is required when an entrepreneur wishes to trade in a foreign country.<br />Loan account:When an entrepreneur is intending to take a loan for business purpose.<br />Merchant account: With the help of a merchant account, one is able to carry out transactions involving credit cards and debit cards.<br />There are some banks which impose fees and charges for every transaction made. There are yet others whose fee system may be different.<br />Changing banks according to ones convenience:In the event when one is not happy with the services of the existing bank providing the business banking services, one may at ones change banks for better services.<br />Transactionwithforeign currency: If an individual needs to constantly deal with foreign currency as part of one’s business requirements, one should check as to how the bank offering business banking facilities with regard to the following matters:<br />Offers guidance with regard to dealing with ones business products in the light of foreign countries as well as foreign currency. How one should restructure ones strategy with the changing currency rates and the risks involved in the same. The utilities in carrying out transaction with foreign currency.<br />Providing credit cards and debit cards for ones business: The bank providing business banking facilities should also provide debit cards or credit cards which are universally accepted.<br />Business banking industry requires that the bank should provide debit cards or credit cards to individuals offering the maximum or optimum advantages as per the requirements of the business banking holder. <br />Accepting payments by means of credit cards as well as debit cards: One should furnish all the details of one’s business to the bank offering business banking services. One can avail of a card transaction system by fulfilling the formalities with the bank. The risks involved in accepting payments by plastic cards should be reckoned.<br />Paymentsonline: If a business firm decides to accept payments through the Internet, appropriate arrangements in accordance to the banking norms are to be set up for carrying out transaction on line.<br />Online transactions are more susceptible to fraud and one needs to be extra careful if at all an online payment acceptance method is opted for.<br />2.1 Global scenario of banking industry<br />The world of commercial banking is undergoing a deep transformation as a result of marketable instruments competing with loans and demand deposits. Because of this strong competition, commercial banks are struggling to make acceptable margins from their traditional business entering into investment banking. <br />Increasing competition has forced banks to search for more income at the expense of more risk. Banks that lent heavily to Asia in search of better returns than those available in Western markets are now being blamed for bad credit decisions. The Asian crisis has renewed interest on credit risk management casting doubts on the effectiveness of current credit regulations. <br />Technological changes have also heightened competition by making it easier to imitate bank services. The traditional advantage of physical proximity to clients given by extended networks of branches has vanished. Banks have to compete with money market mutual funds for deposit business, commercial papers, and medium-term notes for bank loans. As margins are squeezed, commercial banks in the United States and Europe have been forced to cut costs and branches while diversifying into pensions, insurance, asset management, and investment banking. In the United States, many banks call themselves financial service companies even in their reported financial statements. <br />Diversification, however, has not always proved to be an effective strategy, and many banks have had to revert to a concentrated business. These examples illustrate how commercial banks are reinventing themselves, not just once but many times. All these changes are creating an identity crisis for old-fashioned bankers, leading to the key question, “What is a bank today?” The question is difficult, but evidence suggests that the concept of banking is being modified and the traditional barriers among financial service sub industries (retail banking, private banking, investment banking, asset management, insurance, etc.) are vanishing. <br />Illustrating what an entity does or serves for often is a useful way to define it. The identity crisis of banks—especially commercial banks stems from the deep and rapid changes in their traditional body of activities (particularly retail and corporate banking). On the other hand, investment banking, private banking, and banc assurance are the most profitable and fastest growing segments of the financial service industry. <br />As banks undertake new activities, they also incur new risks. Since boundaries among sub industries are weakening, if not vanishing, banks like all other financial service companies must redefine themselves in terms of the products they offer and the customers they serve. <br />The way banks pursue this redefinition is through a strategic repositioning in the financial service industry. All these factors represent a new challenge for commercial banks, provided this definition still has a unique meaning. Increased competition, diversification, new products, and new geographic markets mean that both the spectrum of risks and the risk profile for banks are dramatically changing. Not only have the risk parameters broadened, they have also changed: banks now face unfamiliar types of risk. In addition to the traditional credit risk, financial risk1 has risen and is now playing a crucial role. Banks thus need integrated risk management techniques that can measure and manage market risk in a timely and effective manner.<br />2.2 Indian scenario of banking industries <br />Banking in India originated in the last decades of the 18th century. The first banks were The General Bank of India, which started in 1786, and Bank of Hindustan, which started in 1790; both are now defunct. The oldest bank in existence in India is the State Bank of India, which originated in the Bank of Calcutta in June 1806, which almost immediately became the Bank of Bengal. <br />This was one of the three presidency banks, the other two being the Bank of Bombay and the Bank of Madras, all three of which were established under charters from the British East India Company. For many years the Presidency banks acted as quasi-central banks, as did their successors. The three banks merged in 1921 to form the Imperial Bank of India, which, upon India's independence, became the State Bank of India.<br />Indian merchants in Calcutta established the Union Bank in 1839, but it failed in 1848 as a consequence of the economic crisis of 1848-49. The Allahabad Bank, established in 1865 and still functioning today, is the oldest Joint Stock bank in India.(Joint Stock Bank: A company that issues stock and requires shareholders to be held liable for the company's debt) It was not the first though. <br />That honor belongs to the Bank of Upper India, which was established in 1863, and which survived until 1913, when it failed, with some of its assets and liabilities being transferred to the Alliance Bank of Simla.<br />When the American Civil War stopped the supply of cotton to Lancashire from the Confederate States, promoters opened banks to finance trading in Indian cotton. With large exposure to speculative ventures, most of the banks opened in India during that period failed. <br />The depositors lost money and lost interest in keeping deposits with banks. Subsequently, banking in India remained the exclusive domain of Europeans for next several decades until the beginning of the 20th century.<br />Foreign banks too started to arrive, particularly in Calcutta, in the 1860s. The Comptoire d'Escompte de Paris opened a branch in Calcutta in 1860, and another in Bombay in 1862; branches in Madras and Pondicherry, then a French colony, followed. HSBC established itself in Bengal in 1869. Calcutta was the most active trading port in India, mainly due to the trade of the British Empire, and so became a banking centre.<br />The first entirely Indian joint stock bank was the Oudh Commercial Bank, established in 1881 in Faizabad. It failed in 1958. The next was the Punjab National Bank, established in Lahore in 1895, which has survived to the present and is now one of the largest banks in India.<br />Around the turn of the 20th Century, the Indian economy was passing through a relative period of stability. Around five decades had elapsed since the Indian Mutiny, and the social, industrial and other infrastructure had improved. Indians had established small banks, most of which served particular ethnic and religious communities.<br />The presidency banks dominated banking in India but there were also some exchange banks and a number of Indian joint stock banks. All these banks operated in different segments of the economy. The exchange banks, mostly owned by Europeans, concentrated on financing foreign trade. <br />Indian joint stock banks were generally undercapitalized and lacked the experience and maturity to compete with the presidency and exchange banks. This segmentation let Lord Curzon to observe, quot;
In respect of banking it seems we are behind the times. We are like some old fashioned sailing ship, divided by solid wooden bulkheads into separate and cumbersome compartments.quot;
<br />The period between 1906 and 1911, saw the establishment of banks inspired by the Swadeshi movement. The Swadeshi movement inspired local businessmen and political figures to found banks of and for the Indian community. A number of banks established then have survived to the present such as Bank of India, Corporation Bank, Indian Bank, Bank of Baroda, Canara Bank and Central Bank of India.<br />The fervour of Swadeshi movement lead to establishing of many private banks in Dakshina Kannada and Udupi district which were unified earlier and known by the name South Canara ( South Kanara ) district. <br />Four nationalised banks started in this district and also a leading private sector bank. Hence undivided Dakshina Kannada district is known as quot;
Cradle of Indian Bankingquot;
.<br />During the First World War (1914-1918) through the end of the Second World War (1939-1945), and two years thereafter until the independence of India were challenging for Indian banking. <br />The years of the First World War were turbulent, and it took its toll with banks simply collapsing despite the Indian economy gaining indirect boost due to war-related economic activities. At least 94 banks in India failed between 1913 and 1918 as indicated in the following table:<br />YearsNumber of banksthat failedAuthorised capital(Rs. Lakhs)Paid-up Capital(Rs. Lakhs)191312274351914427101091915115651916132314191797625191872091<br />2.3 Position of all banking industry in India<br />Sr. No Nationalized bankDeposits AdvancesInterest IncomeNet NPA as % Net advances1Allahabad Bank849725880273650.722Andhra Bank593904413953750.183Bank of Baroda192397143986150920.314Bank of India189708142909164370.445Bank of Maharashtra522553429142920.796Canara Bank186893138219171191.097Central Bank of India13127285483104551.248Corporation Bank739844851260670.949Dena Bank430512887834480.2410Indian Bank725825146568300.8111Indian Overseas Bank1001167488596411.3312Oriental Bank of Commerce983696850088560.6513Punjab and Sind Bank387662461532470.3214Punjab National Bank2097601541703193260.1715Syndicate Bank1158858153295800.7716UCO Bank1002226880581211.1817Union Bank of India13870396534118890.3419United Bank of India545363539443121.4820Vijaya Bank545353546852380.83<br />3. Union bank of India<br />3.1 About the bank: <br />Union Bank of India is firmly committed to consolidating and maintaining its identity as a leading, innovative commercial Bank, with a proactive approach to the changing needs of the society. This has resulted in a wide gamut of products and services, made available to its valuable clientele in catering to the smallest of their needs. Today, with its efficient, value-added services, sustained growth, consistent profitability and development of new technologies, Union Bank has ensured complete customer delight, living up to its image of, “GOOD PEOPLE TO BANK WITH”. Anticipative banking- the ability to gauge the customer's needs well ahead of real-time - forms the vital ingredient in value-based services to effectively reduce the gap between expectations and deliverables. The key to the success of any organization lie with its people. No wonder, Union Bank's unique family of about 26,000 qualified / skilled employees is and ever will be dedicated and delighted to serve the discerning customer with professionalism and wholeheartedness. Union Bank is a Public Sector Unit with 55.43% Share Capital held by the Government of India. The Bank came out with its Initial Public Offer (IPO) in August 20, 2002 and Follow on Public Offer in February 2006. Presently 44.57 % of Share Capital is presently held by Institutions, Individuals and Others. Over the years, the Bank has earned the reputation of being a techno-savvy and is a front runner among public sector banks in modern-day banking trends. It is one of the pioneer public sector banks, which launched Core Banking Solution in 2002. Under this solution umbrella, All Branches of the Bank have been 1135 networked ATMs, with online Tele-banking facility made available to all its Core Banking Customers - individual as well as corporate. In addition to this, the versatile Internet Banking provides extensive information pertaining to accounts and facets of banking. Regular banking services apart, the customer can also avail of a variety of other value-added services like Cash Management Service, Insurance, Mutual Funds and Demat. The Bank will ever strive in its endeavour to provide services to its customer and enhance its businesses thereby fulfilling its vision of becoming<br />“THE BANK OF FIRST CHOICE IN OUR CHOSEN AREA BY BUILDING BENEFICIAL AND LASTING RELATIONSHIP WITH CUSTOMERS THROUGH A PROCESS OF CONTINUOUS IMPROVEMENT”.<br />3.2 Our Vision<br />To become the Bank of first choice in our areas by building beneficial and lasting relationship with customers through the process of Continuous improvement.<br />3.3 Mission<br />Our corporate mission to gain market recognition in chosen areas by building effective strategies .A logical extension of the Vision Statement is the Mission of the Bank, which is to gain market recognition in the chosen areas .To build a sizeable market share in each of the chosen areas of business through effective strategies in terms of pricing, product packaging and promoting the product in the market .To facilitate a process of restructuring of branches to support a greater efficiency in the retail banking field .To sustain the mission objective through harnessing technology driven banking and delivery channels .To promote confidence and commitment among the staff members, to address the expectations of the customers efficiently and handle technology banking with ease.<br />3.4 History <br />Union Bank of India was inaugurated by the Father of the Nation, Mahatma Gandhi, on November 11, 1919. Started as a limited company in Mumbai, it was one of the few Financial Commercial banks in India. Until 1947, UBI had only 4 branches - 3 in Mumbai and 1 in Saurashtra, all concentrated in key trade centers. Catering to all the sectors of the society, be it agriculture, industry, trade and commerce, services or infrastructure, the bank has also played a major role in rendering services to the financial needs of every section. Apart from this, the bank also extended financial support to educational, housing and trade sector. Union Bank of India undertook the task of establishment of village knowledge centers and self-employment training centers. It was in 1975, that the Union Bank of India was nationalized. It was, then, that it merged with the Belgaum Bank, a private sector bank. Another merger was on cards in 1985, this time with the Miraj State Bank. Union Bank is a Public Sector Unit with 55.43% Share Capital held by the Government of India. The Bank came out with its Initial Public Offer (IPO) in August 20, 2002 and Follow on Public Offer in February 2006. Presently 44.57 % of Share Capital is presently held by institutions, individuals and others. <br />3.5 Products & Services<br />,[object Object]](https://image.slidesharecdn.com/abhishekranerollno-39summerinternshipproject-110723005605-phpapp01/85/summer-internship-project-report-on-union-bank-of-india-1-320.jpg)
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summer internship project report on union bank of india
- 2. Accounts
- 3. Loans
- 4. Cards
- 5. Insurance
- 7. Mutual Funds
- 8. Demat
- 9. ATMs
- 10. E Banking Or Online Banking
- 14. Atm Banking
- 15. Tele Banking
- 18. Mutual Funds
- 20. 8% Tax Saving Bonds
- 21. Public Provident Fund (PPF)
- 23. Central Excise and Service Tax Collection Services
- 26. Textiles
- 31. Credit report & Credit Rating
- 32. Determination of Interest rate
- 33. Proposal
- 34. Compliance of sanction terms
- 35. Disbursement
- 37. Financial highlights for immediate previous two audited years and projection for proceeding year
- 39. Cost of Project
- 41. List the type and quality of product(s) or service(s) to be marketed.
- 42. Outline the general business model (ie. how the business will make money).
- 43. Include the technical processes, size, location, kind of inputs
- 44. Specify the time horizon from the time the project is initiated until it is up and running at capacity.
- 45. Relationship to the surrounding geographical area.
- 46. Identifies economic and social impact on local communities.
- 48. Describes the size and scope of the industry, market and/or market segment(s).
- 49. Estimates the future direction of the industry, market and/or market segment(s).
- 50. Describes the nature of the industry, market and/or market segment(s) (stable or going through rapid change and restructuring).
- 51. Identifies the life-cycle of the industry, market and/or market segment(s) (emerging, mature)
- 53. Investigates industry concentration (few large producers or many small Producers)
- 55. Explores barriers/ease of entry of competitors into the market or industry.
- 56. Determines concentration and competitiveness of input suppliers and product/service buyers.
- 57. Identifies price competitiveness of product/service.
- 59. Identifies the demand and usage trends of the market or market segment in which the proposed product or service will participate.
- 60. Examines the potential for emerging, niche or segmented market opportunities.
- 61. Explores the opportunity and potential for a "branded product".
- 62. Assesses estimated market usage and potential share of the market or market segment.
- 64. Estimates sales or usage.
- 65. Identifies and assess the accuracy of the underlying assumptions in the sales projection.
- 66. Projects sales under various assumptions (i.e. selling prices, services provided).
- 67. Access to Market Outlets.
- 68. Identifies the potential buyers of the product/service and the associated marketing costs.
- 70. Outline alternative business model(s) (how the business will make money).
- 71. Identify the proposed legal structure of the business.
- 72. Identify any potential joint venture partners, alliances or other important stakeholders.
- 73. Identify availability of skilled and experienced business managers.
- 74. Identify availability of consultants and service providers with the skills needed to realize the project, including legal, accounting, industry experts, etc.
- 76. Important for an organization to have a pool of efficient personnel who bear the capacity to bail the company out from crisis situation and work towards optimum utilization of organizational resources. Such capacity of the personnel can be determined by having complete details on following key aspects:
- 77. Market reputation on the promoter / management of the company
- 78. Hands on experience of the management personnel in the industry / Business
- 79. Managed by qualified personnel.
- 80. Ability of the promoters / management to bail out the company in case of crisis (for example, this could be derived from a strong group company)
- 81. Decision making – Is it concentrated?
- 82. Organization structure / Succession planning / Labor relations
- 83. Is any group company in default / Any Directors on RBI’s negative list / Borrower’s track-record in honoring financial commitment
- 86. Estimates the size and type of production facilities.
- 87. Investigates the need for related buildings, equipment, rolling-stock
- 88. Suitability of Production Technology.
- 89. Investigates and compare technology providers.
- 90. Determines reliability and competitiveness of technology (proven or unproven, state-of-the-art).
- 91. Identifies limitations or constraints of technology.
- 92. Availability and Suitability of Location.
- 94. Access to raw materials.
- 96. Access to a qualified labor pool.
- 97. Access to production inputs (electricity, natural gas, water, etc.).
- 101. Explores economic development incentives.
- 102. Explores community receptiveness to having the business located there.
- 103. Raw materials.
- 104. Estimates the amount of raw materials needed.
- 105. Investigates the current and future availability and access to raw materials.
- 106. Assesses the quality and cost of raw materials and markets of easily substituted
- 107. inputs.
- 108. Other inputs.
- 109. Investigates the availability of labor including wage rates, skill level, etc.
- 111. Assesses the capital needs of the business project and how these needs will be met.
- 112. Estimates capital requirements for facilities, equipment and inventories.
- 113. Determines replacement capital requirements and timing for facilities and equipment.
- 114. Estimates working capital needs.
- 115. Estimates start-up capital needs until revenues are realized at full capacity.
- 116. Estimates contingency capital needs (construction delays, technology malfunction, market access delays, etc.
- 117. Estimates other capital needs.
- 118. Estimated equity and credit needs.
- 119. Identifies alternative equity sources and capital availability -- producers, local investors, angel investors, venture capitalists, etc.
- 120. Identifies and assess alternative credit sources -- banks, government (ie. direct loans or loan guarantees), grants, local and state economic development incentives.
- 121. Assesses expected financing needs and alternative sources -- interest rates, terms, conditions, covenants, liens, etc.
- 123. Budgets expected costs and returns of various alternatives.
- 124. Estimates expected costs and revenue.
- 125. Estimates the profit margin and expected net profit.
- 126. Estimates the sales or usage needed to break-even.
- 127. Estimates the returns under various production, price and sales levels. This may involve identifying "best case", "typical", and "worst case" scenarios or more sophisticated analysis like a Monte Carlo simulation.
- 128. Assesses the reliability of the underlying assumptions of the financial analysis (prices, production, efficiencies, market access, market penetration, etc.)
- 129. Creates a benchmark against industry averages and/or competitors (cost, margin, profits, ROI, etc.).
- 130. Identifies limitations or constraints of the economic analysis.
- 131. Determines project expected cash flow during the start-up period.
- 132. Identifies project an expected income statement, balance sheet, etc. when reaching full operation.
- 133. After the feasibility study has been completed and presented, a carefully study and analysis the conclusions and underlying assumptions. And deciding which course of action to pursue:-
- 134. Potential courses of action include:
- 135. Choosing the most viable business model, for investment
- 136. Identifying additional scenarios for further study.
- 137. Deciding that a viable business opportunity is not available and moving to end the business assessment process.11.6 Credit report & Credit Rating<br />The credit report is an important determinant of an individual's financial credibility. They are used by lenders to judge a person's creditworthiness. They also help the person concerned to narrow down on the financial problem areas. Credit report is a document, which comprises detailed information about the credit payment history of an applicant. It is mostly used by the lenders to determine the credit worthiness of an applicant. The business credit reports provide information on the background of a company. This assists one to take crucial business related decisions.<br />People can also assess the amount of business risk associated with a company and then decide whether they would be comfortable in providing them with credit facilities. The degree of interest that would be shown by investors in their company can also be gauged from the business credit reports as they can get an idea of the conception of their customers regarding themselves. Since these records are updated at regular intervals of time they enable people to identify the risk levels associated with a business as well as its future. These reports also allow businesses to get detailed information about the financial status of business partners and suppliers.<br />What Is A Corporate Credit Rating?<br />Ratings can be assigned to short-term and long-term debt obligations as well as securities, loans, preferred stock and insurance companies. Long-term credit ratings tend to be more indicative of a country's investment surroundings and/or a company's ability to honor its debt responsibilities. . The ratings therefore assess an entity's ability to pay debts. There are various organization who perform credit rating for various business organization.<br />Union Bank of India follows a finely defined Credit Rating Model for assessing the creditworthiness of the applicant. The credit rating model asses various aspects of the projects and assigns scores against them thereby determining the risk level involved with the project.<br />It is divided in Five Sections:<br />1. Rating of the Borrower<br />Financial Risk<br />Management Risk<br />2. Market Condition/ Demand Situation<br />3. Rating of the Facility<br />4. Business Consideration<br />5. Cash Flow related parameters<br />12. Personal and HR department <br />12.1 Recruitment <br />Written examination<br />Personal interview<br />12.2 Training and development<br />Union bank has one of the best training systems in India. The training experience here goes back to over four decades. Presently the training structure consists of the Staff College at Bangalore, and seven centers in various parts of the country. The training is designed, delivered and assessed, based on systems suggested and put in place by our overseas consultants M/s. Vinstar Limited (AGL Group) of New Zealand. These systems have been tested and refined by practical application. The training system of Union Bank has been awarded the prestigious Golden Peacock National Training Award instituted by the Institute of Directors, New Delhi for the best training system in the Country.In our pursuit of achieving higher standards we have further upgraded our systems and sized up to 'international norms'. After a rigorous audit, in February 2001, the College is awarded ISO 9001 certification (for Design and Development of Customised Training Programs) by Det Norske Veritas, of the Netherlands. We are the only Bank to obtain ISO certification for the training system. FROM PHILOSOPHY TO REALITY We have devised an outcome-oriented training process. Each and every module is designed so that learning takes place through interaction. It is also ensured that this learning is translated into action at the work place. Our training programs actually deliver value to the Organization. Post course surveys conducted by us have confirmed this Yes, we have translated yet another cliché into reality. We invite Organizations to give the enriching experience to the employees, to create learning and growing organizations. THE COLLEGE - AMBIENCE FOR LEARNING Union Bank Staff College stretching over 36 acres of sylvan setting, on the out skirts of Bangalore city, has been the cynosure of appreciation as an apt option, for the best ambience for learning. Here physical, mental, spiritual and social upgradation of self for an individual and building of teams of performers of outstanding Organizations take place in the most natural way. We have got excellent, air-conditioned learning centers [we call them quot; channelsquot; of learning], computer-backed presentation packages, interactive learning processes, salubrious living conditions in hostel rooms with provisions for intellectual and physical games, group exercises and teambuilding fun in verdurous mango-groves, where mimicking monkeys and shy sheep are, perhaps, the only onlookers! Yoga, somnolent reverie after a relaxed splash in the swimming pool, or a stroll down the jogging tracks and exercise stations or a stretch of paddling or rowing on the boat around the natural pond are true tonics for invigoration. If the weather does not encourage outdoor relaxation (unusual in the 'Garden City' of Bangalore!) a workout in the luxury of the Gymnasium, a game of snooker, a solitary tryst with computer games or online learning facilities - are other options.THE 'FACILITATORS' Our 'facilitators' to learning - quot; Facultyquot; or quot; Trainersquot; in the common parlance- are experienced bank officers with many years of exposure in the entire gamut of banking. All the facilitators have been through an intensive orientation program on adult learning processes drawn up by Vinstar of New Zealand. They are also exposed periodically to updating of skills and awareness in leading institutions in the country. Some have also been nurtured with professional training abroad at premiere institutions like Columbia Business School, New York and the Manchester Business School, England. THE PROGRAMS Currently the College is running training programs in the following disciplines: 1.International Banking 2.Credit 3.Information Technology 4.General Banking 5.Marketing and 6. Management and human resource development. Union Bank is also organizing executive education programs in association with Icfian Business School - an arm of the Institute of Chartered Financial Analysts of India, Hyderabad. In this stream following programs are offered:1.Finance for Non-Finance executives 2.Treasury and forex management 3.Software- project management 4.The Service edge - improving service quality <br />12.3 Performance appraisal forms of Union Bank of India (IFB)<br />13. MIS or IT Department<br />13.1 Workflow for Information system in Union Bank of India (IFB)<br />13.2 Application of Software & Hardware<br />14. Other Aspects of Bank<br />14.1 Awards/ certifications received by the Bank<br />YearAward and Recognition2006National Award for the second best performance in financing small scale units by Ministryof Small Scale Industries, Government of India2007Golden Jubilee Award for the best bank in north east zone for excellence in the field ofkhadi and village industries from the Ministry of MSME, Government of India2007-2008Best Bancassurance partner byTata AIG2008National Award for the best bank for excellence in field of Khadi and village industries foreast and north east zones from the Ministry of MSME, Government of India2008-2009Pinnacle Partner of the year by Tata AIG2008-2009Highest contributor to lives insured by Tata AIG2009National Award under Prime Minister Employment Guarantee Programme in north eastzone from the Ministry of MSME, Government of India<br />14.2 Legal Compliances of Company<br />CODE OF BANK’S COMMITMENT TO CUSTOMERS<br />a. Providing minimum banking facilities of receipt and payment of cash/ cheques at the bank’s counter<br />b. Meeting the commitments and standards in this Code, for the products and services we offer, and in the procedures and practices we follow<br />c. Making sure our products and services meet relevant laws and regulations in letter and spirit<br />d. Ensuring that our dealings with you rest on ethical principles of integrity and transparency<br />e. Operating secure and reliable banking and payment systems.<br />To Help You To Understand How Our Financial Products And Services Work By:<br />a. Giving you information about them in any one or more of the following languages – Hindi, English or the appropriate local language<br />b. Ensuring that our advertising and promotional literature is clear and not misleading<br />c. Ensuring that you are given clear information about our products and services, the terms and conditions and the interest rates/service charges, which apply to them<br />d. Giving you information on what are the benefits to you, how you can avail of the benefits, what are their financial implications and whom you can contact for addressing your queries and how.<br />To Help You Use Your Account Or Service By:<br />a. Providing you regular appropriate updates<br />b. Keeping you informed about changes in the interest rates, charges or terms and conditions<br />c. Displaying in our branches, for your information<br />i. Services we provide<br />ii. Minimum balance requirement for Savings Bank accounts and No Frills accounts and charges for non-maintenance thereof<br />iii. Name of the official at the branch whom you may approach if you have a grievance<br />iv. Name and address of the Zonal/ Regional Manager whom you can approach if your grievance is not redressed at the branch<br />v. Name and contact details of the Banking Ombudsman under whose jurisdiction the branch falls<br />vi. Information available in booklet form.<br />d. Displaying on our website our policies on<br />i. Cheque collection<br />ii. Grievance Redressal<br />iii. Compensation<br />iv. Collection of Dues and Security Repossession.<br />To Deal Quickly and Sympathetically With Things That Go<br />Wrong By:<br />a. Correcting mistakes promptly and cancelling any bank charges that we apply due to our mistake<br />b. Handling your complaints promptly<br />c. Telling you how to take your complaint forward if you are still not satisfied (see Para No. 7)<br />d. Providing suitable alternative avenues to alleviate problems arising out of technological failures.<br />To Treat All Your Personal Information As Private And Confidential<br />We will treat all your personal information as private and confidential<br />Subject to matters.<br />To Publicise The Code We Will:<br />a. Provide you with a copy of the Code, on request, over the counter or by electronic communication or mail<br />b. provide you ( new customer) with a copy of the Code when you open your account<br />c. make available this Code at every branch and on our website<br />d. ensure that our staff are trained to provide relevant information about the Code and to put the Code into practice.<br />To Adopt and Practice A Non - Discrimination Policy<br />We will not discriminate on the basis of age, race, gender, marital status,<br />Religion or disability.<br />14.3 GRIEVANCE REDRESSAL POLICY1. IntroductionBank has set a vision to emerge as number one Bank in terms of customer experience. Towards this end, Bank will remain alert and sensitive to customer complaints and uses it as a tool for removing deficiencies in service at all levels. The policy also takes into account the increasing touch points where standard of customer service gets impacted significantly. Hence all the delivery channels viz., ATMs, Phone Banking, Mobile Banking, Internet Banking will be given due importance in redressing shortcomings based on customer feedbacks. Likewise, channels like call center and online complaints will be given added focus both in receiving as well as redressing customer grievances. The adoption of Banking Codes and Standards Board of India places greater responsibility on the Bank to meet higher standard of customer expectation. Bank will use customer education, customer awareness and transparency as tools for reducing grievances and enhancing customer satisfaction.Grievance Redressal Policy will also enable compliance to Government / Reserve Bank of India guidelines / regulations and adherence to code set by Banking Codes and Standard Board of India. The provisions of this policy will be maintained in compliance and fulfilment to these requirements to the grievance Redressal process.The policy document aims at understanding root cause of complaints, based thereon review of delivery standards will be carried out. Deterrent and disciplinary measures will also be effectively enforced. Over all the review mechanism should help in identifying shortcomings in products / processes and services related issues. The bank’s policy on grievance redressal is governed by the following principles:Customers be treated fairly at all timesComplaints raised by customers are dealt with courtesy and on timeCustomers are fully informed of avenues to escalate their complaints/grievances within the organization and their rights to alternative remedy, if they are not fully satisfied with the response of the bank to their complaints.Bank will treat all complaints efficiently and fairly and will be seen as opportunities for improvement.The bank employees must work in good faith keeping in mind Bank’s policy and without prejudice to interest of the customer.In order to make bank’s redressal mechanism more meaningful and effective, a structured system is laid down to meet this end. The system ensures that the redressal sought is handled in just and fair manner and is enabled through a set of framework of rules and regulations. The policy document will be made available at all branches. The concerned employees will be educated about the complaint handling process. The customer complaint arises due to:The attitudinal aspects in dealing with customersInadequacy of the functions / arrangements made available to the customers or gaps in standards of services expected and actual services rendered.Non-dispensation of cash at ATMsNon-functioning / mal-functioning of e-banking productNon-sanction / delay in sanction of loan / credit facilitiesLack of information and understanding of bank’s products, services and service chargesThe customer will have the full right to register his complaint if he is not satisfied with the services provided by the bank. He can give his complaint in writing, orally or over telephone. The customer can also lodge a complaint through Bank’s own call centre. If customer’s complaint is not resolved within given time or if he is not satisfied with the solution provided by the bank, he will have the right to approach Banking Ombudsman or such other grievances redressal forums for redressal of grievances.2. Internal Machinery to handle Customer complaints/ grievancesThree tier grievance redressal systemThe Bank will have public grievances machinery functioning at three levels i.e. Branch, Regional and Central Office level. All complaints received at every level will be immediately acknowledged and dealt appropriately.The bank has also enabled an Online Grievance Redressal Mechanism whereby grievances can be lodged online and will be attended as per the time schedule with an inbuilt escalation process by which the complaint get escalated to higher offices in case of non fulfilment within time. The facility has been provided to customer to register the complaint online for speedy redressal.Call Centre is yet another avenue to record complaints and deficiencies in service. Calls to Call Centre will be processed through a well laid down fulfilment work flow within a committed time and escalation provision.Nodal Officer and other designated officials to handle complaints and GrievancesBank will appoint a Nodal Officer in the rank of General Manager who will be responsible for implementation of customer service and complaint handling for the entire bank. At field level Regional Heads will be designated to handle complaints/grievances in respect of branches falling under their control. Nodal Officer shallEnsure adherence to the laid down Grievances Redressal Policy and process, monitoring its implementation and initiating corrective action wherever needed so as to improve the quality of customer service on a continuous basis. Review and set right imp