Union Bank of India

The Union Bank of India was built up in twentieth century and declared open by the Father
of the Nation, Mahatama 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.
Presently 939 ATMs spread out across India both Onsite and Offsite. All the ATMs are
inter-connected through the Bank’s 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 Bank’s 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.
Union Bank of India is amongst
few banks where financial inclusion plan has been integrated with the normal
business plan of the bank for preceding 5-6 years. We believe that providing
banking services to the poor is a viable business opportunity if cost of serving
the poor is reduced through a mix of innovative delivery models. To ensure a
focused approach, Bank has set up a separate Financial Inclusion Vertical
with a dedicated expert team

Union Bank of India is the frontrunner in the usage of biometric smart card.
Bank has established 2624 POS Touch Points across 34 districts covering 2.76
Page 7 of 12
million customers. As a next step, Bank is working towards mobile-based prepaid
card and mobile-based SB account. Bank has also launched customized
loan products based on the income cycle of the customer with weekly to
fortnightly repayment facility, micro-insurance in tie-up with LIC, requiring
annual premium of as low as Rs 200.
12.The Bank has used biometric smart card technology for disbursing payouts at
the doorstep of beneficiaries under social welfare schemes like Mahatma
Gandhi National Rural Employment Guarantee Scheme and Social Security
Payment.

IMP---
http://www.unionbankofindia.co.in//Cat/UploadNews/Greatlakesspeechfinal.pdf

The foremost challenge is the issue of reach. Each of

the over 600,000 villages in the country cannot be covered through branch
banking. Thus, we need to go through the low-cost Business Correspondent
model and leverage technology to deliver financial services. Hence, the
challenge is to have right and low-cost Information and Communications
Technology (ICT). It is also important that the transactions through the handheld
front end-devices should be seamlessly integrated with banks’ main
server. Union Bank is also working on this to migrate the data from hired
server to Bank’s own server. Financial Inclusion is a collective responsibility
and hence, IT sector in India should also come out with innovative and lowcost
model that can be used widely.
22.

Institution Info

Head Office Union Bank of India

239 Vidhan Bhavan Marg,
Central Office,
Nariman Point,
Mumbai - 400021
Maharashtra
India
Website http://www.unionbankofindia.co.in/

No. of branches 2261

No. of ATMs 939
Customer Care Numbers Toll Free Number: 1800226900 or 022-22896660
Bangalore: 080 - 22877054 22871357
New Delhi: 011 - 23316169
Chennai: 044 - 4414588
Kolkata: 033 - 5930386 2265388

Products / Services

Union Bank of India Credit Cards

Union Bank of India Auto Loans
Union Bank of India Home Loans
Union Bank of India Personal Loans
Union Bank of India Fixed Deposits
Union Bank of India Saving Accounts
Union Bank of India Educational Loans

- At consumer court website

 If you experiences deficiency of service at any of Union Bank of
India Branches/Offices, then the Customer is at liberty to send a complaint. The
first point for redressal of complaint is Branch itself. In case you are not satisfied
with the branch handling the complaint, you then approach the Zonal Manager. If
the complaint is not settled at the Zonal level, you may approach to the Head
Office at the below mentioned address.

23 addresses present

- FINANCIAL INCLUSION IMP:

http://www.nabard.org/departments/pdf/seminar/Union%20Bank%20of
%20India.pdf

- Social Banking

http://www.unionbankofindia.co.in/SocalBanking.aspx

Corporate Communications Division, Union Bank Bhavan, 239, Vidhan Bhavan Marg, Nariman Point,
Mumbai - 400 021.
A CORPORATE STRATEGIC ANNOUNCEMENT-
LAUNCH OF NEW LOGO BY UNION BANK
Mumbai, September 1st 2008 :
Union Bank is pleased to announce its new corporate logo which is a part of its brand
repositioning initiative undertaken over the last 18 months. The new corporate logo
truly represents our capabilities which we have built in through transformation of
human resources and transformation of processes.
1. The New Logo

The new logo is a unique representation of universal symbol. It comprises of two

letters “U” of Union Bank of India interlocked into one another- we call it the
Union Bank inter lock. The symbol weaves around the word “Union” from our
name, which has stood for integrity, security, strength and partnership and
ingrained in us over the years of our service. The colour choice of BLUE-
commitment to service and RED – the passion we bring to our work, are truly
reflective of the way we want Union Bank to be perceived by our customers. The
new symbol raises levels ahead to reinforce the properties of partnership to help
our customers realize their dreams- the dreams in a dynamic global market of
today and tomorrow. In short, we have captured in our logo, all that we are
striving to achieve. All these are sought to be achieved, while keeping the existing
values viz., the brand promise of “Good people to Bank With’ in tact.
2. Journey to the new Logo

The journey to the new logo has been our vision to make Union Bank a global bank
and a diversified bank and place it in the top league by 2012. With one of the best
cost to income ratio of 40.31% in the Industry, the rolling out of 100% CBS branches
in a record time and continued addition Corporate Communications Division, Union Bank Bhavan, 239,
Vidhan Bhavan Marg, Nariman Point, Mumbai - 400 021.
 of over 2 million customers annually, we have proved our strength to remain in the
center stage of growing banks of the country.
We have trained over 5000 officers in the front line skills and relationship
management.
Process Transformation has enabled branches to leverage on technology and shift
back office work to a centralized back office operation. By this, our branches have
become Sales and service outlets to focus on value added services to our
customers.
In all, through a 18 month project named NAV NIRMAN we have harnessed the
combined might of people, process and technology- building relationship through
people and delivering with speed and efficiency enabled by superior application of
technology.
Side by side, we have introduced diversification in the financial arena by tie up in
joint venture for insurance products and mutual funds. Tie up with Dai ichi Mutual
Life Insurance Co., Japan and Bank of India on insurance front and KBC, a Belgian
firm with global presence in mutual funds are in keeping with this strategic
initiative of making Union Bank a diversified Bank. On the global presence, we
have set up our first branch at Hongkong and have also set up representative
offices at Shanghai, PRC & Abudhabi, UAE.

3. The need for logo change

We in Union Bank strongly believe that time has come to let the capabilities and
strengths built in by us manifest in our external appearance too through our Brand
image for the Bank in the form of a new logo – logo that captures our commitment
to meet the dynamics of a new market place and demands of newer generation.
Corporate Communications Division, Union Bank Bhavan, 239, Vidhan Bhavan Marg, Nariman Point, Mumbai - 400 021.
4. The Promise
With the new logo and the capabilities we have built, we are today offering new
customer experience in fulfillment of their dreams and aspirations. The 4 promises
we deliver today along with our new logo are:
i) Value for Money – Our product and services would have great value appeal
to our customers and its value will transcend the price to provide
higher customer satisfaction.
ii) In all our product offerings we will use technology and process to deliver
within a committed time .If the time line is missed, there will be
commitment to compensate through refund of fees.
iii) The choices of channel we offer today are 5 – Branch Banking, Internet
Banking, Mobile Banking, Phone Banking and ATMs. We will help the
customers to choose from the choice of any of these alternatives
best suited out to them.
iv) We are committed to transparency in all our offerings. Product and
pricing will be spelt out in clear terms and there will be no
opaqueness.

-------------------------------- X --------------------------------
______________________________________________________
Released on behalf of Union Bank of India by:-
R.B.Menon, DGM, Corporate Communications Tel: 2202 6662 E-mail:
rbmenon@unionbankofindia.com

UNION e-banking

Q1. What is Union e-Banking?

You can access various services of Union Bank of India at anytime, anywhere and from any place provided you
have access to an Internet Connection. With Union e-Banking, your bank travels with you everywhere. You have
online, real time access for different services provided under a completely secure environment, using 128-bit
encryption Secure Socket Layer ( SSL ).

Q2. Why Union e-Banking?

e-Banking opens up an entirely new way of doing your banking, anytime and from anywhere in the country 24
hours a day, 365 days a year.

Q3. Who can use Union e-Banking?

Union e-Banking is available to all the customers of Union Bank of India. Resident Customer holding accounts
with a joint operating mandate can only view details on these accounts. They however will not be permitted to do
all financial transactions on Internet Banking. However in case of joint accounts with operating mandate "Either or
Survivor" both the holders can be allowed to view and transact subject to submission of application with joint
signatures.

Disclaimer: Union Bank of India reserves the right to offer Union e-Banking to selected customers at its discretion
and at such limited locations as may be specified by the Bank from time to time.

Q4. Security
The Bank maintains the highest of standards as far as security technology is concerned, some of which are : 128
bit SSL encryption - This is the highest level of security available for communication and transactions on the
Internet. SSL encryption allows the Bank to encrypt information, so that when it travels through the internet, it is
encrypted and cannot be accessed by anyone . SSL also ensures that information is sent to the correct place
and that it is not tampered with.

IDRBT Certification - This Internet Banking site is certified by IDRBT. IDRBT Certifying Authority (IDRBT CA) is
the licensed Certifying Authority in India under Controller of Certifying Authorities (CCA), Ministry of
Communications and Information Technology, Government of India.

Q5. What do I need to use the services?

You need a PC with minimum PII processor, 32 MB RAM with Internet Explorer 5.0 or above.

Q6. What if, I do not have a PC?

No problem. You can access it from any computer having Internet connectivity.

Q7. Is it safe to login from Cyber Cafe?

Yes, provided you do not disclose your passwords to anyone and logout properly.

Q8. How do I get access to Internet Banking Services ?

You need to have an account at any of our branch. Then you need to register for the Internet Banking Services
with the branch by filling the application form. Moreover individual customers having ATM card can register
themselves online through our "Self User Creation" and can re-generate passwords using "Self Reset
Password" links provided on our website www.unionbankonline.co.in.

Q9. I am a Non – Resident Indian. Can I get Internet Banking services ?

Yes, You can register for the Internet Banking services with the branch and we will send your
user Id and password to your overseas address. Individual customers having ATM card can register themselves
online through our "Self User Creation" and can re-generate passwords using "Self Reset Password" links
provided on our website www.unionbankonline.co.in.

Q10. What if, I do not have an account with Union Bank of India?
We shall be glad to have your account with us. Walk in any of our branches, our staff will assist you.

Q11. How do I get User-Id and password for the Internet Banking Services?
User Id & Passwords will be sent to the address specified in the application form. Individual customers having
ATM card can register themselves online through our "Self User Creation" and can re-generate passwords
using "Self Reset Password" links provided on our website www.unionbankonline.co.in.

Q12. I want to register for Internet Banking Services . What do I do?

Kindly download the application form, fill in the details and submit it to your branch. Individual customers having
ATM card can register themselves online through our "Self User Creation" and can re-generate passwords
using "Self Reset Password" links provided on our website www.unionbankonline.co.in.

Q13. Why are the Password so cryptic?

The machine generates passwords for your first time access randomly and we have no control over it. It is
mandatory to change your passwords at first login.

Q14. Can I change the User Id and Password?

It is mandatory for you to change the machine-generated passwords with your own passwords at first login. You
can change your passwords any number of times subsequently but you can not change your User Id.

Q15. How to change passwords?

Passwords can be changed any time and any number of times. To secure access to your account through
Internet, it is recommended to change it often . You can go to "Password & Profile" Menu option and change your
passwords.

Q16. How to choose passwords?

1. The password cannot consist of all the characters as are in your Username. For example if your Username is
"Bob", then your password cannot be "Bobby".

2. Password should have alphabets & Nnumbers.

3. Special characters are also allowed in the password.

4. The Password should contain a minimum of 6 characters and a maximum of 14 characters.

Q17. What are the good practices for creating a password?

You are requested to choose a password that is not a dictionary word and not guessable from your personal
information known to others such names in the family, vehicle numbers etc. You should change your password
frequently. Please try to remember the password and do not write it down or paste it somewhere. Do not tell your
password to anybody even if they claim to be from the bank.

Q18. What happens if I forget my login password?

Individual customers having ATM card can register themselves online through our "Self User Creation" and can
re-generate passwords using "Self Reset Password" links provided on our websitewww.unionbankonline.co.in.
Other users have to apply through the branch and you will get your new password mailed to you at your address
registered with the bank. The details are mentioned in the "Forgot Password" section on our website.

Q19. What happens if I forget my User Id for Internet Banking?

In case you forget the User Id for Internet Banking Services, please contact your branch. You can email
tointernetbanking@unionbankofindia.com giving your details such as name,account number,your date of birth /
address etc. which can help to identify you, and your User ID will be informed to you.

Q20. I am unable to login with the couriered Password and allotted Customer Id.
Passwords are case sensitive. Also be a little more careful while typing the system-generated passwords for the
first time. In case you are still not able to login, Please contact your branch or write
tointernetbanking@unionbankofindia.com

Q21. What happens if I don't logout?

Please ensure to logout in proper way. However, if you abruptly close your Internet Banking page, your session
will end. Kindly do not leave your system in between during Internet Banking, as this will give opportunity to
others around you to operate your accounts

Q 22. I have received the user name for online banking but not the password. What do I do ?
The user name & password are sent in separate mails for security reasons. If you have not received any one of
these, please inform your branch or alternatively write to internetbanking@unionbankofindia.com . Your
user name / password will be sent to your address.

Q 23. I want to know more about Union Bank of India ?

Please log on to http://www.unionbankofindia.co.in/

Q 24. I want to know more about online banking ?

Please log on to http://www.unionbankonline.co.in/

Q 25. What can I do with Union eBanking ?

With Union eBanking, you can do the following :
1. View details of all your accounts with the Bank ( deposit , loan , demat )
2. Transaction
a) Transfer funds between your own Union Bank of India accounts, with any other Union Bank of India account or
any other Bank in India participating in the NEFT & RTGS network.
b) Place a stop payment on your cheque( s )
c) Order a demand draft
d) Pay utility Bills
e) Pay your taxes
f) Book your Air ticket / railway ticket
3. Request
a) For a new cheque book
4. Communicate
a) with the Bank through a secure mail facility
5. Customize
a) Your password
b) Give nicknames to your accounts
c) Set the date and amount format to your convenience
Union Bank rejigs brand identity
Published: Tuesday, Sep 2, 2008, 4:41 IST
By Arcopol Chaudhuri

MUMBAI: Bank of Baroda has done it two years back. Canara Bank did it last year. And now Union Bank of India has also gone ahead and effected a brand
repositioning.

The bank joins the bandwagon of public sector banks and financial institutions, who are re-branding to “stay ahead of times” and win more customers before
more foreign banks come tapping at the doors.

The logo of Union Bank, which till now sported a bright red and white hue, will now comprise two ‘Us’ in red and blue, interspersed.

M V Nair, chairman and managing director of the bank, said blue denotes commitment to service and red reflects the passion that the bank brings to its work.
“Both the colours reflect the way we want Union Bank to be perceived by our customers,” he said.

The re-branding was executed by Water, the newly-launched strategic design consultancy of advertising agency Mudra.

Union Bank will spend about Rs 10-12 crore in communicating the re-branding, primarily through out-of-home advertising. Further, it has allocated Rs 75
crore in the current fiscal for advertising in print and electronic media.

One of the triggers for the change in the brand identity was the feedback from a consumer survey conducted by Mudra, wherein it was learnt that Union Bank
was relatively lesser known in areas of advancement in its product offerings, pricing and technology. To ensure that the rebranding is not just a cosmetic
change, the bank also roped in Boston Consulting Group 18 months ago. It made recommendations for transformation in HR practices, banking processes,
diversification and accelerating global presence.

Nair said it was important for the bank to re-brand as perception mattered. “By 2009-12, we want our customers to perceive us as the best bank in the
country. We plan to internally measure customer perception and we will hire an external agency to do it,” he said.
c_arcopol@dnaindia.net

Lintas Media wins the media duties for Union Bank of

India
By afaqs! news bureau, afaqs!, October 01, 2010
Section: News Category: Media Planning & Buying

• The business was won following a multi-agency pitch; the account size is pegged around Rs 80-90 crore.
The business was won following a multi-agency pitch; the account size is pegged around Rs 80-90 crore...

Union Bank of India has awarded its media duties to Lintas Media Group. The account was won following a multi-agency pitch that saw
participation from the incumbent agency Motivator, as well as Mudra Max, TME and Media Direction. Sources peg the account size to be
around Rs 80-90 crore.
Confirming the development, Himanka Das, vice-president, Lintas Media Group, says, "We are proud to have Union Bank of India
as part of our prestigious clientele; and we would love to partner them in their vision towards aggressive growth in image and
stature in the banking space. This is also a reassurance of our ability to showcase differential thinking ability to provide media
solutions, keeping in mind consumer touch points and the business at the core."

The media agencies were evaluated on their credentials, understanding of consumers and generating consumer insights,
understanding of the industry, media planning skills combined with buying capabilities, innovations in media and capabilities in non-
conventional media.

Lintas Media will handle all media -- television, print, out-of-home, radio and digital -- for the bank.

In June this year, the government had announced a capital infusion of Rs 6,211 crore into five public sector banks. Of this, Union
Bank of India got Rs 111 crore by way of perpetual non-cumulative preference shares (PNCPS). The bank will use this to expand
its business.

http://www-03.ibm.com/press/us/en/pressrelease/22468.wss--- IBM WITH UBI for pan india presence,

CBS etc.
Article of 2007

http://www.lbhat.com/advertising/union-bank-of-india-advertising-works/ i.e.
Union Bank of India: advertising works!
by BH AT NA TU RA LL Y on SEPTEMBER 12, 2008

I was very skeptical of PSU Banks embarking on a re-branding strategy and relying on a new logo or advertising to rejig
their image. I still maintain that in order to make a real difference it takes more than just advertising – it calls for changes
on the ground. The new advertising can make the brand likeable if the advertising is likeable. But any action beyond that –
switching your account or opening one depends purely on providing a rational reason and the experience at the branch
level.

The latest TVC for Union Bank at least succeeds in creating a positive feeling toward the brand, thanks to the
emotive advertising. Irrespective of societal backgrounds all parents behave the same way in which they are
portrayed in the ad. Since the insight is universal, the appeal is likely to be universal. The parents’ behaviour is
linked to the proposition ‘ your dreams are not yours alone’. It may not yet motivate me to change my bank but
at least I like the advertising.

HEADINGS TYPE:

• Business description - A detailed description of the company’s operations and business divisions.
 • Corporate strategy - Analyst’s summarization of the company’s business strategy.
• SWOT Analysis - A detailed analysis of the company’s strengths, weakness, opportunities and threats.
• Company history - Progression of key events associated with the company.
• Major products and services - A list of major products, services and brands of the company.
• Key competitors - A list of key competitors to the company.
• Key employees - A list of the key executives of the company.
• Executive biographies - A brief summary of the executives’ employment history.
• Key operational heads - A list of personnel heading key departments/functions.
• Important locations and subsidiaries - A list and contact details of key locations and subsidiaries of the company.
• Detailed financial ratios for the past five years - The latest financial ratios derived from the annual financial statements published by the
company with 5 years history.
• Interim ratios for the last five interim periods - The latest financial ratios derived from the quarterly/semi-annual financial statements published
by the company for 5 interims history.

Note*: Some sections may be missing if data is unavailable for the company.

ELIGIBILITY
Borrower should be in possession of registration / licences as applicable under local law e.g.
1. Shop Establishments Act.
2. Sales Tax Registration.
3. Drug Licences for Retail Trade.
4. Ration & Civil supplies.
5. Licence to deal in petroleum products/LPG
TARGET GROUP
I. The target group under Union Trade scheme include:

1. All Retail Traders

2. All Wholesale Traders

Including Supermarkets, Malls, Departmental Stores, dealers in groceries, consumer durables, co-
operative stores

II. Service traders like, restaurants, entertainment etc. maintaining required quantum of stock and/or
book debts.
QUANTUM

Interest rates:

2.2.1. Interest Rates for different loan products would be made available through and in any one or all of the following media,
namely:

Bank's website.

Over phone, if tele-banking services are provided.

Through prominent display in the Branches and at other delivery points.

Through other media from time to time.

2.2.2. Customers would be entitled to receive periodic updates on the interest rates applicable to their accounts.
2.2.3. On demand, customers can have full details of method of application of interest.
Promoting Financial Inclusion through Innovative Policies
Post-event Statement

ADBI organized this four day workshop on "Promoting Financial Inclusion through
Innovative Policies" in partnership with: (i) Advisory Group on APEC Financial System
Capacity-Building; (ii) APEC Business Advisory Council; (iii) Alliance for Financial
Inclusion; (iii) Foundation for Development Cooperation; (iv) Inter-American Development
Bank; and (v) International Finance Corporation. This event brought together more than
80 policy makers and experts on financial inclusion from Asia and the Pacific. It included a
half-day field visit to the Japan Finance Corporation and PlaNet Finance Japan.

The workshop discussed approaches to and exchange country experiences on financial

inclusion, focusing on the following six key areas.

i. Agent Banking. Innovative policies and regulations can facilitate partnerships with non-
bank agents like post offices. They can deliver financial services to unbanked customers at
lower costs, and with greater convenience. Case studies from Russia, Mexico and Eurogiro
were discussed.
ii. Mobile Banking. With the explosive growth of mobile phone usage around the world,
particularly among the low income and rural group, a range of operations, such as deposit
taking, withdrawal, payment transactions, and other conventional banking services, can be
offered through mobile technologies and services. This would however require close
collaboration between banking and telecommunications regulators. There were case studies
from the Philippines, Cambodia, Japan and Mobile Money for the Unbanked Initiative.
iii. Diversifying Providers. Regulatory reform can lower barriers for start-up institutions
which can develop various financial products geared toward low-income clients. Policy
instruments should be designed to promote new entrants without distorting the market.
Case studies from Uganda, Cambodia and Indonesia were discussed, along with a special
case study on micro-insurance.
iv. Reforming Public Banks. Two successful cases were presented: Union Bank of India, a
public bank which promotes financial inclusion yet remains commercially viable; and the
Khan Bank of Mongolia, which had been privatized, re-nationalised and re-privatised, and
now successfully provides microfinance services to the whole country.
v. Financial Identification. Many poor people lack personal identity (such as birth record) or
financial identity (such as credit or transaction history) which constrains their access to
formal financial services. Various options were discussed for developing identity, taking
advantage of IT innovations and statistical analysis.
vi. Consumer Protection. The key elements are education, transparency, disclosure, fairness,
responsibility and fair recovery practices. Case studies from Peru, Malaysia and South Africa
on consumer protection and financial education were discussed.

The microfinance industry itself has been evolving over the last three decades. The scope
of financial services that MFIs are providing has expanded to include not only microcredit
but also savings, insurance and money transfer. The current global financial crisis,
however, highlights the need for greater financial inclusion. The financially excluded are
suffering greatly from the crisis due to tighter credits, and many others are seeing their
access to finance being cut off.

Finally, the workshop concluded with the discussion on the role of government, private
 Financial inclusion may be defined as the process of ensuring access to financial services
and timely and adequate credit where needed by vulnerable groups such as weaker sections
and low income groups at an affordable cost.

Extending banking to the unreachable and excluded areas where there are no bank
branches, consistent power supply or communication links such as telephones or Internet is a
daunting task. This calls for innovative approaches in taking banking to remote regions. The
Reserve Bank of India has come up the business correspondents/business facilitator model.
Instead of opening full-blown brick and mortar bank branches in remote areas (an expensive
proposition) it is proposed that with the help of modern information technology and
managerial capabilities of business correspondents banking services could be extended to
vulnerable groups and people in remote regions.

Several banks and technology solution providers have ventured to provide information and
communication based solutions for financial inclusion. The lack of common technical
standards has impaired the pace of ICT deployment for Financial Inclusion and has led to
vendor dependence for technology components. This has made solutions deployed by a
particular bank solution provider specific making a customer of a bank unable to interoperate
across all outlets of the same bank. IBA and IDRBT teamed up to provide a solution to this
problem by holding a 'Workshop on Open Standards for Financial Inclusion' in February
2009. During this workshop it was decided to constitute a "Technical Committee on Open
Standards for Financial Inclusion" comprising of a few select banks like State Bank of India,
Punjab National Bank, Union Bank of India, Corporation Bank, South Malabar Gramin Bank,
UCO Bank, NABARD and institutions like IIT Kanpur and National Informatics Centre (NIC).
This Committee as its first step has drafted standards for smart card based solution for
financial inclusion. Herewith we publish the following for review by all stakeholders - the
public, the banks and solution providers. After receiving responses from stakeholders the
final standard specifications will be made available to the banking industry. These documents
will be available at the IBA and IDRBT websites till 9th October 2009.The feedback is
expected on or before the 10th October 2009.The documents are as follows:

http://www.scribd.com/doc/4541903/Marketing-Communication-
1192630143951151-1

2008..47th annual awards.

ABCI's main objective is to provide a platform for recognition for the profession
of Business Communications and improve professional skills by organizing
meaningful activities. The ABCI Annual Awards are designed to promote
excellence in all areas of written and visual business communications
(communication objective, design, presentation and print quality). The purpose
of the awards is to recognize the best in Corporate Communications activities
across various organizations. Award was given to UBI

ACCHHE LOG ACCHHA BANK

Good people to bank with

ICT – Rural financial inclusions, kiosks

http://www.slideshare.net/guest60535459/axis-bank

http://www.scribd.com/doc/15596659/Final-Project-Report-on-Bank-Marketing

Consumer Behaviour Aspects and Promotion of Banking Services

By

Arun Mittal
MBA, M.Phil
Faculty-Management
Birla Institute of Technology
(Deemed University)
Noida Campus

Priya Mittal
Student, MBA (Final Year)
Kedarnath Aggarwal Institute of Management
Charkhi Dadri, Distt. Bhiwani

Introduction

Consumer behaviour is very complex phenomenon, which is considered primarily in marketing decisions
It has been rightly said "Understand, you do not understand, you will not understand, you cannot
understand all your customers but still you have to do your best to understand them."

In consumer behavour this is very difficult to make a uniform theory that may suggest that a particular
individual or group will behave in a particular manner. Consumer behavior is dynamic and to be studied
regularly. Increasing awareness, living standards and urbanization has led to increase in the changing
preferences and the same has forced the marketers to change their product features, packaging styles,
distribution channels and so on. There is a famous saying the "Success has a simple formula-Do your be
and people must like it". Similarly, for marketers the advice is- offer the best and customers must like it
Identical products always have their life cycle the product life cycle suggests that there is a level of
maturity of the product and after that no more consumers can be attracted for that. The case is very sam
with preferences of consumers that they always like some innovative and different products to use. The
study of consumer behavior is compulsory to know about likes and dislikes of consumers from time to
time so that the products and services can be offered accordingly. Customers have their own unique
needs, demands and preferences in a particular segment. Marketers have to study customers in particul
segment. Really interesting it is, the study of consumer behavior can make it possible that after observin
and examining the behavior of consumer a marketer can present his product in such a way that the
product can capture the market. However it was very difficult to sell that product earlier. Consumer
behavior indeed gives every possible answer to the complex questions concerned with consumer's buyin
reasons.

The following diagramme will tell about the all marketing decisions taken in services industry or banking
services. These all are essential decisions which are concerned are essential ingredients of services
marketing mix. The analysis has been done in the context of banking services.

Source: Mittal, Arun, Advertising and Sales Promotion, Wisdom Publication, New Delhi, Edition -2008, p-
225

When customer is treated as the king of the market, the study of consumer behaviour becomes more
important for marketing decisions. There is no doubt that the behaviour is the base of marketing
decisions.

Banks are defined as the "Organizations, which accepts deposits from public and give loans from
the general public." In the present time they are over and above this definition. Banks are providing
innovative services with innovates styles. ATMs, Credit cards and Internet banking have changed the
quality of delivery of services of banks. Banking services are growing with many new additions such as
money transfers, Bankassurance, NRI services and so on. Promotion of service has been a challenging
task. Banking services being of a sophisticated nature should be promoted carefully, clearly and
innovatively.

Mass Media Advertising: Most Preferred mode for marketing of Banking Services

Mass media advertising includes TV commercials and advertising in national level newspapers which hav
a wide coverage. Advertising in these has made maximum people aware about the offerings of the bank
and established most of the bank names as big brands. In a recent survey ICICI Bank has been
considered as the most popular banks in private sector. The use of umbrella branding works well in
promotion of banking services. Different types of advertisement campaigns have been seen in form of T
commercials and as print ad in newspapers. Print ads mainly focus on corporate image advertising of
banks as well as a new offering of the bank such as increase in interest rate on deposits or decrease in t
interest rates in loans and so on. TV commercials mainly focused on corporate advertising, where bankin
service is promoted as a whole rather than a particular product of banks.

Themes and appeals used in TV commercials of banking:

Advertising appeal is the method used to draw the attention of consumers and to influence their feelings
toward the product, service, or cause. There are hundreds of different appeals that can be used as the
foundation for advertising messages. These are the central idea of an ad which has been used to catch t
attraction of customer by heart. The theme of a commercial strikes a person in depth and forces him/he
to act in the desired manner. Generally advertising appeals are broken into two categories: rational
appeals and emotional appeals.

Uses of Appeals in Banking Services Advertising:

Name of Bank Broad Personal/Social Marketing Approach Theme/Punch Line

Category
Union Bank of India Emotional Social/Parental Affection Security and Future benefit Because your dreams are not only yours.
Appeal
Royal Bank of Emotional Personal/Style Differentiation In years a player comes who change the way
Scotland Group Appeal the game is played.
HSBC Rational Practical Customization of Service Not two people are the same
Offering
IDBI Rational Practical Comprehensiveness of Banking for All
Services offering
State Bank of India Emotional Personal/Reliability Supporting the customers With you all the way
Security

Personal Selling is being very much popular and effective for private banks in India. It is concerned with
face to face meeting with the customer and making the presentation of the service offering to the prosp
and making the person customer of the bank. This process has its own advantages and disadvantages.
Banks may have some complex service offer which may include so many charges and facilities of differe
types. The biggest advantage of personal selling in banking services is that the salesperson can make th
prospect well understood about the product. Further customers may prefer it because they need not to g
anywhere the sales person comes to them. But there is certain limitation also people usually do not give
their time to meet and talk on issue. It also does not become cost effective if the sales are not closed in
handsome number. Banks are going to be societal now and taking care of environment the plantation
Bank of Baroda and Punjab National Bank is the examples of the same. Consumers are always emotiona
about the Brands doing social and national services. Banks wants to win the faith of the customers and
also wants to come out from their typical financial image. Societal marketing really helps to attain this
objective.

Sales promotional has become popular due to the popularity of the usage of debit and credit cards. The
offers are also given to the customers for registering and transacting with internet banking. For example
recently HDFC bank has come with the offer where a flip book light is free on opening an account and a
DVD of famous movie on shopping with Debit Card. Further there are lots of other schemes also giving
discount and other gifts on different types of purchase on debit and credit card of the bank. The
corporation/Brands such as Indiatimes shooping, Barista, Mudra Pure Glod, Ayush Therapy Center, VLCC
Slimming Beauty Fitness, Welhome, Dr. Batra's Multispeciality Hospitals, Javed Habib, Gini & Jony, Visha
Mega mart, Dominos and Book my Show have clubbed with the bank to provide this promotion to the
customers. However the sales promotion has its nature that it is always for a particular time being. The
purpose of sales promotion is to enhance the sales in particular time duration. The sales promotion offer
are redesigned frequently for effective promotion in sales. Consumers feel happy when they get
something extra then the regular utility. Sales promotion offers really attract customers.

In present time the most popular tool for promotion of banking services has become Internet Marketing
services. E-Advertising is being very much popular. In city areas of India, people use internet so
frequently. Studies tell that they use internet mostly for checking their mails, finding results and
educations and research purposes. The e-advertising of banking services not only promote the services
giving offers but it also interacts with the person and a potential customer can purchase the product wit
the help of this. However internet advertising in pop ups irritates the internet users but advertisements
done on home page of any website such as email service provider is useful and customers get knowledg
about the new banking services and promotions. When they see something in front of their eyes they ca
remember it much.

In brief of the study, this can be concluded that consumer behaviour is the base of all marketing activitie
and promotional strategies are also the part of marketing so they are also designed by considering all th
aspects of consumer's behaviour.

References:

Gupta, S L and Arun Mittal (2008), Comparative Study of Promotional Strategies of Public and Private
Sectors Banks in India, Asia Pacific Business Review, Vol IV, No. 3, pp-87-93.

Mittal, Arun, (2008) Advertising and Sales Promotion, Wisdom Publication, New Delhi

Gupta, S L, Arun Mittal, (2008) Mobile Banking: Present Status and Future Perspectives, 'The Analyst',
ICFAI University Press, pp-98-100.

www.hdfcbank.com/2MO

Has Union Bank’s ICICI-Like Strategies Worked?

Union Bank of India’s campaign ‘Your Dreams Are Not Your Alone’ was perhaps the
most catchy bank promotion in recent times. However, it was not the only strategy
Union Bank – led by veteran banker MV Nair - copied from India’s private sector banks
like ICICI Bank, HDFC Bank, & Axis Bank. But has it really worked for this Mumbai
headquartered public sector bank (PSB)?
ICICI Bank, Indian banking's leader in promotional campaigns, has cut their advertisement
expenditure by one-third ever since the downturn began. But it was also a time when a few public
sector banks, notably State Bank of India (SBI) and Union Bank of India (UBI) hiked their
advertisement spending. Union Bank’s was the sharpest increase in ad spend, going up by almost
thrice over the previous year.

Union Bank of India also seems to be following some of the strategies that ICICI Bank pursued during
the last boom and later discarded – like growing their Point of Sale (POS) business astronomically and
providing retail / vehicle loans to non-customers.

On the recruitment front, Union Bank recruited 2200 employees during last year, and this year plans
to take in around 2000 – much like how private banks like ICICI Bank, HDFC Bank, and Axis Bank
were doing. But with no performance-linked pay structure in place like these private banks, and the
retirement-to-recruitment ratio being 3:1, the need for such a move is difficult to rationalize.

The complex effects of Union Bank of India’s promotional campaign – that amounted to Rs. 142 crore
in 2008-09 - are now unraveling with the latest quarterly results. On first look, the headline profit
growth of 94% shows that the campaign has clicked. Even some constituent figures like the substantial
growth in fixed deposits may be an outcome of this aggressive campaign.

However, on a closer look, many other constituent figures are troubling. The fact that Union Bank
could post only a 1.52% growth in net interest income shows that something went wrong in their core
business of deposits and advances. On the other hand, the most promising component in the results –
doubling of non-interest income including treasury – had nothing to gain from the promotional
campaigns.

Even the rise in fixed deposits might have complex aftereffects. Union Bank of India’s cost of deposits
has increased to 6.47% due to this major focus on fixed deposits. At the same time, the bank’s Net
Interest Margin (NIM) is down to 2.29% from 2.92% last year, with pressure coming from these high-
cost fixed deposits that will take time to mature. Now, the bank faces an uphill task in raising NIM to a
healthy 3%.

At the same time, despite this heavy promotional campaign, the bank could not perform well on the
low-cost current account / savings account (CASA) deposits, and now Union Bank has to struggle to
bring CASA to 35%, something which might take until 2012.
The bank which has always performed well on the NPA front, however, saw net non performing assets
(NPA) going up by 0.57% during last quarter. But this might have to do with Reserve Bank of India
(RBI) rejecting a proposal from Union Bank of India to deduct floating provisions from gross NPA.
The reason for the RBI rejection is not clear, as similar proposals from peers like Punjab National
Bank (PNB), Bank of Baroda (BoB), and Central Bank of India were allowed.

Post-budget, the outlook for treasury gains is bleak for all banks. This is said to be especially so in the
case of Union Bank where loan growth is relatively low and treasury portfolio is high. With treasury
income being their mainstay during the last quarter, the bank needs to think of other sources for
showing profit.

With parking surplus funds in liquid and liquid-plus mutual funds (MF) not going to be viable after
around August 2009, Union Bank will be forced to increase lending, but in the face of lackluster
demand. MFs was one area where Union Bank of India could register good profits.

Even while bigger players like SBI decided to keep off, Union Bank participated in the consortium
funding Air India / NACIL. Now with Air India in deep trouble, the decision seems badly made.

After a good performance in the bourses for some time, Union Bank of India has now started
appearing with ‘SELL’ recommendations due to poor short-term prospects.

Like many other public sector banks (PSBs), Union Bank too might have surprises from their
restructured loan book in the coming quarters.

Maybe Union Bank of India needs to learn more lessons from ICICI Bank which has discarded brand
promotions and is now resorting to Customer Education type of promotions. Also, there seems to be
no point in Union Bank adopting aggressive business policies discarded by private sector banks

Mktg - Union Bank - Brand Refresh

Change is truly the only constant. Banks, in particular, have been following that rule in recent
times. Bank of Baroda got itself a new logo and brand ambassador a few years ago. In recent times,
UTI Bank was renamed Axis Bank. Canara Bank, too, has revamped itself. Adding to the ever
increasing list is Union Bank of India. The bank, which was founded in 1919 and inaugurated by the
father of the nation, MK Gandhi, has undergone a change twice in nearly 90 years of functioning.
This time round, Union Bank of India, along with its creative agency, Mudra, and Boston Consulting
Group, chalked out an agenda to create this change. Addressing the press in Mumbai, MV Nair,
chairman, Union Bank of India, says, "We learned we needed to change now because we realised
that the entire population is younger."
The other factor that prompted the rebranding exercise was technology, which is part of life now.
Union Bank of India wanted to highlight that it too had the technology to reach out to its
consumers. Moreover, a few more foreign banks will soon be entering India and the bank decided it
needed to prepare itself.As part of the change, Union Bank of India will leverage technology to
centralise various processes and empower its staff in customer relationships. The bank is also
creating business verticals in the banking sector, such as corporate banking, retail banking, etc.,
explained TY Prabhu, executive director, Union Bank of India.Mudra and its new design and strategy
cell, Water, conducted the research study. "Research was conducted in various markets with the
core consumer groups of Union Bank of India," says Ashish Mishra, chief strategist, Water, speaking
to afaqs! The rebranding exercise also includes a changed logo. This was preceded by a teaser in
the form of an outdoor. The hoarding showed a bird turning a new page to show the new logo.
Though the logo is not completely visible, the previous page shows a section of the old logo. The
logo, which now features two interlocking U’s in red and blue, stands for the consumer and the
bank. Nair says, "The two U's stand for union and the integrity, security and strength, which Union
Bank of India stands for." The colour blue represents commitment, while red is symbolic of the
passion that exists at Union Bank of India.Union Bank of India will continue with its earlier tagline,
‘Good People to Bank With’. The creative proposition that the bank will carry forward is, ‘Your
Dreams are not Yours Alone’. This is in a bid to indicate that the bank is ready to help fulfil
everyone’s dreams.With the new logo and branding, Union Bank of India promises to the customer
value for money service, a variety of channels through which the customer can choose to carry out
banking activities, a timeline with all services offered, and absolutely no opaqueness with respect
to the services and products offered. The communication that will follow the teaser will largely
involve print and outdoor and also include a 10 second TV commercial. The TVC will be aired in
about 10 days.The budget allocated for the branding exercise and advertising is close to Rs 75
crore, as compared to last year’s Rs 32 crore.