A

PROJECT REPORT
ON
A STUDY OF EDUCATIONAL LOAN ON UNION
BANK OF INDIA PUNE
SUBMITTED BY
MOHD KAIF KALIMUDDIN SHAIKH
UNDER THE GUIDANCE OF
PROF. L.K. SINGH
SUMITTED TO
“SAVITRIBAI PHULE PUNE UNIVERSITY”
IN PARTIAL FULFILLIMENT OF THE
REQUIREMENT FOR THE
AWARD OF DEGREE OF
BACHELOR OF BUSSINESS ADMINISTRATION
FOR THE ACADAMIC YEAR 2021-2022 ABEDA
INAMDAR SENIOR COLLEGE OF ARTS,
SCIENCE AND COMMERCE.PUNE-411001
 ACKNOWLEDGEMENT
“Whatever we do and Whatever we achieve during the course of our limited, is done not only by
our efforts but there is always some amount of hard work contributed by other people associated
with it directly or indirectly, knowingly or unknowingly.”

I take this opportunity as a privilege to express my deep sense of gratitude towards all those who
have been directly or indirectly instrumental in the successful completion of this project.

I take opportunity to articulate my deep sense of gratefulness our prof. L.K.Singh for their
interest and valuable suggestions during the project. Without their inspiring impetus and untiring
efforts, the successful completion of this project would have been impossible

My sincere thanks to Union Bank of India in Pune. For giving this opportunity to carry out my
project in their esteemed organization and providing me constant support to carry out this project
smoothly

Mohd Kaif Shaikh

TYBBA

2021-2022
 DECLARATION

I, MOHD KAIF SHAIKH, hereby declare that the project entitled “A STUDY OF
EDUCATIONAL LOAN ON THE UNION BANK OF INDIA is the result of the original and
genuine work carried out by me under the guidance of Prof .L.K.Singh of Abeda Inamdar Senior
College of Arts, Science & Commerce.

The project report is submitted in partial fulfillment of the requirement of the TYBBA degree for
the Savitribaiphule Pune University.

I declare that this work is authentic and the content reproduced in this project from other sources
have been acknowledged.

Date:

Name: MOHD KAIF SHAIKH

Place: Pune
 INDEX

Chapter Name of chapters Page no.

No
1 INTRODUCTION

2 CONCEPTUAL FRAME WORK

3 BANK PROFILE

4 REVIEW OF LITERATURE

5 RESEARCH METHODOLOGY

6 DATA ANALYSIS & INTERPRETATION

7 FINDINGS SUGGESTION & CONCLUSION

BIBLIOGRAPHY

ANNEXURE
CHAPTER NO-1
INTRODUCTION
1.1. Meaning of Education Loan

An education loan is a sum of money borrowed to finance college or other school-related expenses.
Payments are often deferred while students are in school and for a six-month grace period after
graduation.

How an Education Loan Works

Education loans are issued for the purpose of attending an academic institution and pursuing an
academic degree. Education loans can be obtained from the government or through private-sector
lending sources. Federal loans often offer lower interest rates, and some also offer subsidized
interest. Private-sector loans generally follow more of a traditional lending process for application,
with rates typically higher than federal government loans.

Types of Education Loans

Although there are a variety of education loans, they break down into two basic types: public
(federal) loans and private loans.

1.2. Federal Student Loans

Most borrowers seek federal government financing first if they need to borrow funds for education
expenses. Thus, the first step in seeking education loans is completing a free application for federal
student aid (FAFSA). Varying information will be required for each applicant depending on their
situation and parent dependency. A credit check is not generally required and the amount of
principal on the loan or loans is primarily based on the school a student will be attending. Once a
FAFSA form is completed the government will work with the schools listed on the application to
identify the financial aid package that the student is eligible.

 Private Student Loans

In some cases, the student loan package issued following a FAFSA form completion may suggest
the borrower apply for additional funds through private lenders. These types of loans will follow
a more standardized application process, typical of any private sector loan, with a credit check
usually required.

Borrowers can apply directly to individual private-sector lenders for funds. Similar to federal
funds, the approved amount will be influenced by the school a borrower is attending. If approved,
funds for educational expenses will first be disbursed to the school to cover pending bills with the
remaining amount of principal sent directly to the borrower.

1.21Definition Educational loan

 An Education Loan can be defined as money borrowed to finance education or school-related

expenses. Payment defers while the student is in school and for a six month grace period after
graduation.

 Student Loan can be defined as a loan designed to help the student pay for the post-secondary
education and associated fees such as tuition fees, books and supplies, and related expenses.
Education loan is different from the other loans available. The rate of interest is substantially
lower and one defers repayment. Also, education loans vary from banks to banks and differ in
many countries relating to laws. The base rate is fixed at 9.85 %. A concession of 0.50% is
provided for girl students and 1 % concession is offered for the future tenure of the loan. Make
sure you check the prevailing rate of interest of various banks and other details before applying
for the loan.Advantages

1. MAKES EDUCATION ACCESSIBLE

By availing education loan, it makes education accessible and also higher education accessible to
the students. It gives students the option to study the course they want to study. Education is
becoming expensive and not everyone can afford it so education loan makes it accessible for all.

2. EASILY AVAILABLE
You can easily and quickly get an education loan. All private banks are offering an education loan.
You can apply it online also and you can avail the loan within 15-30 days by completing the
procedure.

3. SPECIALIZED LOAN SCHEMES

Education loans are also available for several special and training courses. You can get the loan to
study abroad as well. The banks offer various schemes from time to time which makes it easier
and affordable for you to avail loans.

4. REPAYMENT MORATORIUM

Repayment in education loans is deferred from unlike in the other loans. You repay the loan
amount only after the completion of the course or after the job whichever is earlier.

5. INTEREST RATE BENEFIT

The interest rate of education loans is substantially lower than the other loans. A girl student gets
a concession. You get other benefits on interest as well.

6. INDEPENDENCE FOR STUDENTS

Education loan gives the student the independence to study and pursue their dreams, go for higher
education without any burden. It gives them a feeling of security.

7. PARENTS RESCUED FROM BURDEN

It provides parents relief from the burden of financing their child’s education. They are freed from
the burden of how to do, when and where. They are now open to the option of sending their child
to the best school, college.
There are only a few advantages that are mentioned above. There are many which give you the
reason to avail of the education loan and also the reason why. Do check and compare all the
advantages of education loans and make a decision to apply for one to help your child study further.

Like every coin has two sides, similarly, education loan also has two sides. There are disadvantages
too along with the advantages which need to be taken care of.

Disadvantages

1. ELIGIBILITY CRITERIA

Banks give education loans only to the students whom they consider deserving. So, you need to
prove that you deserve enough to avail of the loan. There are certain other eligibility criteria for
the loan.

2. REPAYMENT PRESSURE

Once you have availed the loan, there is always the pressure of repayment. As you all know, the
loan taken has to be paid and also to be paid in the given period. So there is an added pressure on
the students to do well and to be able to repay the loan.

After going through the advantages and disadvantages of Education loan, Decide for yourself
whether you want to avail it or not. Make a Smart Choice!

Features of Educational loan

Education loan are available universally and can be applied easily. With good credit history, a
person can get his or her education loan sanctioned in very less time. For all academic courses
listed under the education loan of different banks, one can apply for the loan. Also the courses
include graduation, post-graduation as well as the vocational courses. Some of the features of the
education loan are as follows.

 One can avail the education loan for studying in India as well as in foreign countries.
  Education loan can be obtained for minimum 10 lakhs to maximum 15 lakhs in case of
higher studies in India, whereas for studying abroad the maximum limit is 20 lakhs.

 The type of course pursued and the family income of the applicant is considered while
providing the educational loan.

 Female students who are applying avail discounts and lower interest rates.

 Education loan less than 4 lakhs does not require a guarantor.

 Government subsidy schemes of educational loans are provided for the students from
economically backward people.

 Students need not repay the loan immediately. They can repay after completing their course
and within the repayment tenure from the course completion date.

 Banks may issue financial capability certificate based on the financial condition of the
student, which is required while studying abroad.

 Existence of education loan may affect other student's loan availability within the same
family.

 No age restriction is there to avail education loan.

 Top-up loan will be available if further study commences during the moratorium period.
Repayment will commerce after completion of the further study.

 Usually parents or guardian will be joint borrower. But in case of married student, either
the spouse or parents/ parents-in-law may be the joint borrower.

One can avail the education loan for studying in India as well as in foreign countries.

 Education loan can be obtained for minimum 10 lakhs to maximum 15 lakhs in case of higher
studies in India, whereas for studying abroad the maximum limit is 20 lakhs.

Format

Documentation Required for Union Bank of India Education Loan:

 To apply for the Union Bank of India Education Loan, applicants need to furnish the following
documents.

1. Proof of identity – Passport, PAN Card, Employee Identity card or any other valid proof
2. Proof of address - Electricity bill, Telephone bill, Ration card or any other valid proof.
3. PAN Card
4. Bank statement for the last 12 months
5. Admission documents, Admission Letter, Admit Card.
6. Schedule of expenses including the fee structure and living expenses.
7. Mark sheets for Class X or equivalent onwards.
8. 3 photographs
9. Proof of any out-goes
10. Loan repayment statement (If any)
11. LIC Policies (If any)
12. Any other document asked for in the application form
13. Proof of Income:

 Salaried Individuals - Last one year’s Income Tax Returns, Form-16 / letter from employer,
salary slips for the last 6 months.
 Business Owners – Income Tax Returns for the last 3 years, Profit & Loss Balance Sheet.
 Agriculturists – Income Certificate from concerned revenue officer (Tahsildar) or/and proof
of land holding.
 CHAPTER- 2
CONCEPTUAL FRAME-WORK
2.1. Methods of Educational Loan

Following are the education loans you can avail in India:

1. Undergraduate Education Loan

2. Professional / Graduate Education Loan

3. Career Education Loan

4. Loans for Parents

 Undergraduate Student Loans

Undergraduate student loans can be availed by individuals who have completed secondary
education and wish to undertake a three or four year course to enhance their job opportunities.

 Professional / Graduate Student Loans

Professional / graduate student loans can be availed by students who wish to pursue advanced
degrees or higher education at colleges across the country. An undergraduate course must be
completed in order for the student to apply for a graduate student loan.

 Career Education Loan

Career education loans can be availed by students who wish to attend undergraduate
career oriented programs at trading and technical schools and colleges across the country.
 Loans for Parents
Parents of students can avail these loans, which are unsecured, to meet expenses related
to their child’s education, such as tuition fees, living expenses, books, uniforms, and
other expenses such as transportation costs. The loan can be availed by not only parents,
but also other adult relatives who wish to enrol their children in secondary schools,
military elementary schools, religious, private or non-public schools across the country.
Objectives of Educational loan

The aims and objectives of education loan given by the back are as follows:

1) It helps the students to go for higher studies even if their family income cannot afford the the
education needed.

2) Banks have affordable and suitable terms and conditions so that students from every category
can apply for loan.

3) The aim of the bank is to help the students and encourage them for higher education by taking
loan.

4) It is applicable to each and every student who fulfills the criteria that is given from the bank.

5) The Educational Loan Scheme aims at providing financial support from the
deserving/meritorious students for pursuing higher education in India and abroad"

6) To poor and needy to undertake basic education.

7) To the meritorious students to pursue higher / professional/ technical education, after passing
10+2 or equivalent
Importance of Education Loan

Education costs are on a steady rise. In such a scenario, getting an education loan helps the
applicant gain access to quality education at premier institutions whether in India or abroad.
Apart from the tuition fees, education loans also help the applicant with the living costs and any
other study related expenses.
Mentioned below are a few important reasons why you should opt for an education loan:

 Easily available: Most banks in India provide education loans as a priority product.
Availing education loans is comparatively less complicated as you only have to establish
your repayment capacity to get approval.
 Specialised help: Education loans take care of the additional expenses that are associated
with most courses like hostel fees, library fees, etc.
 Prevents exhaustion of resources: By opting for an education loan, the applicant or
his/her parents can keep their savings intact. Such loans prevent the exhaustion of one’s
savings and helps them meet their financial needs comfortably.
CHAPTER NO- 3
BANK PROFILE
HISTORY

Union Bank of India completed 91 eventful years of service. Over these years, the bank cares for
the common man. The bank was originally incorporated in Mumbai as “The Union Bank of India
Limited” under the Companies Act 1913, on November 11, 1919. After Nationalization, the name
of the bank was changed to “Union Bank of India”. The Head Office of the bank is situated at 239,
Marg, Nariman point, Mumbai. The bank is a public sector unit, with 60.85% share capital held
by the Government of India and the rest 39.15% of share capital is held by institutions, individuals
and others. The Father of the Nation Mahatma Gandhi opened this bank in 1921. The bank’s vision
should be a shared vision, i.e. the staff at all levels should actively involve in the transformation
process.
Union Bank of India from the beginning had reached Himalayan heights, now ranked third among
the nationalized banks. Its branches spread all over the country and serving more than 26 million
customers. Union Bank of India has come a long way, fostering India’s dreams. For over nine
decades, Bank always put the customer before all else and made him of our universe. The bank
has the habit of making profits consistently for the last 91 years. On the technology front the bank
has taken early initiatives and 100% of its branches are computerized. Over the years,

Union Bank of India have earned the reputation of being techno-bank and is one of the front
runners amongst public sector bank in the field of technology. It is one of the pioneer banks, which
launched Core Banking Solution in 2002. Total business of the bank as on 31-3-2010 is 2, 89,355
crore, around 2805 branches, 2500 ATMs, 27,772 employees, and 55 regional offices. The
business of the bank is principally divided into three main areas: Corporate Financial Services,
Retail Financial Services and Agricultural Financial Services. Many innovative products are
developed using the technological plat- form. With its prudent management and good governance,
banks non- performing assets were comparatively lower. In the post-reforms period i.e. from 1993
to 1996, 36 the bank had doubled itself in size.

The first safe deposit vault was formally opened -j on 22 April 1939. The bank worked with Export
Credit Guarantee Corporation of India in encouraging the exporters to insure themselves against
buyers default or exchange difficulties in the buyer’s country. Union Bank of India was one of the
earliest bank to obtain and operate whole turnover export finance guarantee from ECGC. The bank
had several strengths such as a strong branch network evenly distributed, an extremely good work
culture with a fairly standard of customer services and a history of effective execution of projects.
Union Bank of India is one in top three nationalized banks in India, with global presence.

A financial supermarket, with leadership in identified spaces. A bank where customers come
first. A top creator of shareholder wealth through focus on profitable growth. A young
organization leveraging its experienced workforce. The most trusted brand, admired by all
stakeholders. A socially responsible organization known for best corporate governance. The Union
Bank of India is the first bank to implement CBS at RRBs. CBS was implemented at two branches
of Kashi Gomti, Samkt Grameen Bank and one branch of Reva Siddhi Grameen Bank. In this
initiative, the bank is providing implementation, training and hand holding support to the RRBs.
Bank is pioneer in extending high-tech products to customers at metro and rural centers. UBI
prepared its first business plan for 1972-73, aspects covered by the plan were deposit mobilization,
deployment of resources and advances to priority sector.

The plan was designed to cover at great length both personnel planning as well as profit planning.
A lot of thrust was given to loan recovery, especially recovery of irregular, bad and doubtful
accounts of the bank. 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 is because of number of products and services made available to its
valuable customers. Today, with its efficient, value-added services, sustained growth, consistent
profitability and development of new 37 technologies, UBI has ensured complete customer delight,
living up to its image of, “GOOD PEOPLE TO BANK WITH”. The key to the success of any
organization lies with its people

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
is because of number of products and services made available to its valuable customers. Today,
with its efficient, value-added services, sustained growth, consistent profitability and development
of new37technologies, UBI has ensured complete customer delight, living up to its image of,
Bank aspires to be a financial supermarket, with leadership in identified spaces

And a bank trusted by customers, shareholders and other stakeholders. Towards this,

The bank launched a transformation process named “Nav Nirman” in June, 2007. The

Nav Nirman initiative gained momentum with investments in branding, technology

And people skills.

VISION Statement of UBI:

“To become the bank of first choice in our chosen areas by building beneficial

And lasting relationships with customers through a process of continuous

Improvement”.

At Union Bank of India they have the vision to be:

• The largest nationalized bank in India, with global presence.

• A financial supermarket, with leadership in identified spaces.

• A top shareholder wealth creator where growth is a passion.

• A young, innovative and adaptive organization leveraging its experienced

Workforce.

• A bank where customers are supreme and the brand admired by all

Stakeholders.

• An organization that cares for society and demonstrates best corporate

Governance.

The following strategies were identified by the bank for achieving the vision:

a) Grow faster -- 5% over the growth rate of peer banks in business.

b) Do things differently -new methods of doing business.

c) Everyone to contribute— share the vision and take effort to realize it.

d) Challenge the mind set— proves themselves that they can change.

MISSION Statement of UBI:

❖To be customer centric organization known for its differentiated customer service.

To offer comprehensive range of products to meet all financial needs of customer.

❖ to be a top creator of shareholder wealth through focus on profitable growth.38

❖ to be a young organization leveraging on technology and experienced workforce.

❖ to be the most trusted brand, admired by all stakeholders.

❖ to be a leader in the area of Financial Inclusion.

“GOOD PEOPLE TO BANK WITH”. The key to the success of any organization

Lies with its people.

 CHAPTER NO- 4
REVIEW OF LITERATURE
4.1. INTRODUCTION
The review of related studies forms a significant part of research work. After nationalization of
banks, it was felt that the profitability and efficiency of the banking sector was on the declining
track in several spheres. At this juncture, the RBI constituted a number of committees, notably,
Tandon Committee (1975), Luther Committee (1977) Char Committee (1986) and Narasimham
Committee (1991) which inter alia examined the various parameters and have given a number of
suggestions to improve the profitability and efficiency of the banks in India. Moreover,

Liberalisation, Privatisation and Globalization (LPG) gave a new facelift to the banking industry.
As such, the paradigm shift in banking industry created an interest on the part of the bankers and
economists to conduct various studies to identify the factors affecting the productivity, profitability
and efficiency of the banks in India and to analyse the policy statements and guidelines of the
Reserve Bank of India (RBI)

The Government of India (GOI) comprising priority sector advances, Statutory Liquidity Ratio
(SLR), Cash Reserve Ratio (CRR), Non-performing Assets (NPAs) etc., Moreover, considerable
work of research was conducted by the academicians, researchers and institutions (outside and
within the fold of the Indian Banking System) to study the performance (pre and post reform) of
commercial banks in general and public, private and foreign banks in particular.

For any research work, it is necessary to take the review of the literature. Pertaining to the research
subject, because the review of the literature helps the researcher to determine the precise subject
area and to arrange research work in proper way. In present chapter researcher has made an attempt
to present review of literature obtained from various published sources like books journals
magazines newspapers internet websites M.Phil.; and Ph.D. thesis etc.;

A narrow-scope literature review may be included as part of a peer-viewed journal article

presenting new research, serving to situate the current study within the body of the relevant
literature and to provide context for the reader. In such a case, the review usually precedes the
methodology and results sections of the work. Producing a literature review may also be part of
graduate and post-graduate student work, including in the preparation of a thesis, dissertation or a
journal article. Literature reviews are also common in a research proposal or prospectus (the
document that is approved before a student formally begins a dissertation or thesis) For any
research work, it is necessary to take the review of the literature. Pertaining to the research subject,
because the review of the literature helps the researcher to determine the precise subject area and
to arrange research work in proper way. In present chapter researcher has made an attempt to
present review of literature obtained from various published sources like books journals magazines
newspapers internet websites MPhil; and Ph.D. thesis etc.;

A narrow-scope literature review may be included as part of a peer-viewed journal article

presenting new research, serving to situate the current study within the body of the relevant
literature and to provide context for the reader. In such a case, the review usually precedes the
methodology and results sections of the work. Producing a literature review may also be part of
graduate and post-graduate student work, including in the preparation of a thesis, dissertation or a
journal article. Literature reviews are also common in a research proposal or prospectus (the
document that is approved before a student formally begins a dissertation or thesis)

1. Panda J. and Lall G.S. (1991)1 in their research paper presented that improvement in
profitability can be achieved through the development of certain internal management techniques.
They concluded that productivity, deployment of funds, quality of advances, information system,
organizational set up and branch expansion are the factors which influence the profitability of
banks to a great extent.

2.Mishra M.N. (1992)2 in his study, made an attempt to discuss the profitability of scheduled
commercial banks in India on the basis of the interest and non-interest income, interest and non-
interest expenditure, man power expenses and other Print to PDF without this message by
purchasing novaPDF (http://www.novapdf.com/) 16 expenses. They further stated that the
profitability of the commercial banks have declined on account of the growing pre-emption of
funds in the form of SLR, CRR, acceleration in the expenses as compared to the total income,
acceleration in advances and total investment than interest income.

3. Ravi F. H., (1960) 1 had examined the pattern of expenditure on higher education against the
backdrop of economic development and opined that the proportion for total expenditure allocated
to higher education was much 14 below the expected level of investment and concluded that under
financing create burden to the government and higher education beneficiary groups

4. Rao (1969)6 discussed the economic aspect of the education. In order to study the cost of
education, he adopted several approaches. In one approach, the main component was the cost borne
by the students. In other approach, it has divided into three parts: (i) institutional cost, (ii) student's
cost and (iii) opportunity cost.

5. Kulkarni’s study (1969)7 also estimated the unit cost of education from the period 1962-66 at
current prices. It showed that the change in pupil-teacher ratio affects the unit cost of education.
The decline in pupil-teacher ratio increases the workload of the teachers in turn leads to higher
teacher turnover ratio

6. Mukherjee’s (1976)14 study attempted to throw the light on the pattern of income and
expenditure of the Calcutta University. He found that the administrative expenditures of the
Calcutta University alone constituted about 30 per cent between 1948-49 and 1969-70. The salaries
to teachers cornered between 13.12 per cent and 18.76 per cent of expenditure. The study
illustrated that organization of trust and endowments funds to finance university expenditure are
the best option in the long run to sustain finances.

7. Mathew (1980)15 showed a detailed analysis of the receipts and expenditures of Kerala
University for the year 1974-85. Out of total revenue of ₹ 192.2 lakh, ₹ 95.5 lakh (50 per cent)
were accounted by the examination fee and ₹ 80.8 lakh (42 per cent) by the public grants. Further,
the bulk of public grants (80 per cent) came from the state government. Out of total expenditure
of ₹ 229.1 lakh, 25.6 per cent were incurred on general administration, ₹ 53.1 lakh (32.2 per cent)
on the examination work and ₹ 42.1 lakh (18.3 per cent) on the departments for study and research.
Faculty-wise, the humanities spent, on the average, ₹ 1.3 lakh per department and science
department’s ₹ 2.7 lakh.

8. Subrahmanyam (1982) 16 studied the financing pattern of the Andhra University and found
that its major sources of income (60 per cent) were the internal sources. However, across the non-
academic income sources, major contributors were the press, publications, and interest on corpus
fund. 18 Further, on the expenditure side, major proportion of funds was consumed by the teaching
departments (40 per cent to 69 per cent).
9. Azad (1984)17 critically analyzed the pattern of grants to the higher education sector in Andhra
Pradesh. The major sources of grants were the government grants, followed by the revenue
generated through fees and funds. It divides the pattern of state grants into the general and
professional education. In general education, major heads of grants were the maintenance, building
and equipment grants; while in professional education, the maintenance and building grants
constitute the major component.

10. Mridula (1985)18 analyzed the sources of financing universities' maintenance grants. The
study based on a large number of state universities found that the main source of financing
maintenance expenditure was the UGC's grants and the majority of these grants were in the form
of the block grants.

11 .Mathew (1991)19 analyzed, in detail, the source of funds of private colleges in Kerala for the
period 1972-86. The analysis was made on the basis of sample data collected from 25 arts and
science colleges spread over the state. The study found that, among the institutional sources of
finance, grants from the state constituted more than 90 per cent. However, of the non-institutional
sources of finance, donations emerged as the most important component of finance of private
colleges in Kerala. The study called for strengthening of the finances of colleges in the private
sector.

12. Varghese (1991) 20, in his research work illustrated that the cost-recovery from beneficiaries
implies a reduction in the public subsidies to higher education sector. This could be done by
shifting the incidence of financial burden either to the beneficiaries (students) or to their users
(employers). Student loans, graduate tax and enhancing fees were other suggestions in this regard.

13. Jadhyala B.G Tilak (1992)21 described the details of the student loan scheme prescribed in
India, its strengths and weaknesses, and also suggested some marginal improvements for the
betterment of educational loans

14. Sharma (1992)22 illustrated the major sources of funding of university education in India.
These sources are the central government, the state governments, the University Grants
Commission (UGC), the Indian Council of Agriculture Research (ICAR) and other public and
private agencies. The funds are in the form of grants-in-aid, development assistance from the UGC
and ICAR, fees and funds, income from moveable and immovable property, and sale of university
publications and farm produce. The endowment funds were the sources of finance of university
institutions. Further, grants-in-aid made by the central, state and other authorities to an institution
to run their activities in order to improve them and to start new programme for further development
and growth. These grants were given to the university institution in the form of (i) matching share
of development grant by UGC; (ii) grants in the form of committed expenditure under the non-
plan heads by either of the system, namely, the deficit grants or block grants.

15. Tilak and Varghese (1992)23 studied the student loan scheme in India and considered some
of its problems. They made a detailed comparison between loan and other alternatives methods of
funding higher education in India.

16. Punnayya Committee (1993)24 highlighted many diversified and new ways of funding of
universities in the country. For instance, it recommended: (i) maintenance grants, dearness
allowance, etc., to be provided by the government; (ii) subsidies on many items of the maintenance
grants to be reduced and maintenance grants to be stabilized at a certain acceptable level; (iii)
maintenance grants to be based on unit costs; (iv) universities to mobilize funds - at least 15 per
cent of the total recurring expenditure at the end of the first five years and 25 per cent at the end
of next ten years; (v) creation of corpus funds to meet infrastructure development; (vi) increase in
student fee 20 keeping in view the rate of inflation; (vii) scholarships to at least 20 per cent of
students; and (viii) soft loans and scholarships from the nationalized banks. The commission
advises simplifying the process of federal student aid as one program, which includes the three
aspects of grants, loans and work-study. This program should guarantee equal aid to all students.
Further, it is suggested that the low-income students should be given more grants and high-income
students more loans. At the same time, at state level, the commission warns against the
implementation of high tuition fee and low aid system.

17. Swaminadhan Committee (AICTE, 1994) 25 looked into the possibilities of resource
mobilization in the case of technical education, essentially through cost-recovery modes either
from students or from elsewhere. The Committee's recommendation includes: (i) the creation of
corpus funds in the institutions; (ii) establishment of an Educational Development Bank of India
(EDBI) with an initial capital of Rs 3000 crore; (iii) reducing the share of salaries in the recurring
expenditure from the present level of 80 per cent to 60 per cent; and (iv) enhancing fees to recover
at least 20 per cent of the recurring expenditure.
18. Natrajan (1995) 26 analyzed the source of finance of university education and also the use
of funds. The analysis shows that the major sources of finance of universities were the government
grants, followed by fee income, and other sources. Development grants were found to be spending
both on capital and recurring items. Academic costs absorbed the major proportion of total
expenditure of the university. Among academic fee income, examination related work entails
major proportion of total expenditure. At the same time, income from the endowments is
decreasing. The study provides the purpose wise classification of income of the universities and
suggests ways and means to overcome the shortage of finance.

19. Adrian Ziderman (2003)92 has carried a series of in depth studies on the functioning of
government sponsored student loan schemes in Asia. The schemes were under taken by the
Bangkok based UNESCO ASIA and pacific Regional Bureau for education in Association with
the (11EP). It also covered China, the Republic of Korea, Hong Kong, Philippines, Thailand and
SAR. The study concludes with highlighting the relative importance of student grants and
scholarship in Thailand.

20. Maureen Wood hall (1983)83 has opined that the student loans are feasible in developing
countries and suggested that the Student loans should be flexible, and can be used to provide
incentives for particular groups of students. He illustrates it as significant source of financing for
higher education, and argued for cost reduction as it is mainly meant for weaker section.

21. Psacharopoulous(1985)84 found that in most developing countries, largely the taxpayers’
money rather than the individual student finance the direct costs of education. It was further held
that the tuition fees are substantial high in certain cases.

22. Wood hall (1991)85 suggested a reduction in the subsidies to the higher education sector and
recommended that the student loans, graduate tax and enhancing fees and funds should be adopted
to finance the rising cost of higher education.

23. World Bank (2002) 86 study indicates that more differentiated systems, including private and
non-university institutions can help to meet growing demand and make higher education more
responsive to labor market needs. Successful higher education systems found in Australia and New
Zealand, 38 other than US is a good example. It also noted that European countries are undergoing
a series of policy debates on financing higher education focusing on the extent and degree of cost
recovery for enabling the transition from elite to mass oriented higher education.

24. William (1974)78 examined the introduction of student loans in Africa and Ghana, and the
reasons for failure. One of the first schemes in the Ghana University student’s loans scheme which
was introduced in 1971 was abandoned within a year due to political opposition. The initial failure
of loans in Ghana is often cited as evidence for the impracticable student loans institution.

25. American Development Bank (1978) 79 has conducted a study on financing education in
Latin America and concluded that the higher income students were to pay the entire cost of their
secondary and higher education irrespective of their studies in the public or private institution.
Hence, the fiscal resources released by the adoption of such a measure should compensate the
present volume of public expenditure on education. Congressional Budget office (1980)80
criticized the USA’s GSLP (Guaranteed Student Loan Programme) which is administered by
commercial banks and other lending institutions and compared the policy measures with the
alternative government and other federal lenders of providing loans to students, and concluded that
the government was better than the other federal lenders on administration of student loan in USA.

26. Council of Minister of Education, Canada (1980)81 studied the problem of student loan
defaulters and concluded that, if the student is made known clearly about interest charges and
repayment policies and if the government change the policies on repayment and non-repayment,
the problem can be reduced to a large extend.

27. Carnegie Commission on Higher Education (1982)82 reviewed the financial problems faced
by the system of higher education in 37 United States. The report commented that, during the
present century, the cost of colleges owned by the public sector was rising at a very high speed.
This increase is largely due to the growing proportion of students in public institutions, particularly
in the expanding community college sector since the World War II. Further, the commission added
that, 'as a steadily rising proportion of the nation’s choose to go to the college; the public cost of
higher education grows much more rapidly than the national income'. In the last, the Commission
recommended that the tuition fee charges should be based on the economic strata of the students.
It also stressed that the institutions should initiate a careful study of tuition fee to be charged from
students in the private colleges and universities so that tuition fee was relatively low for the lower
division students, slightly higher for upper division students and substantially higher for the
graduate and professional students.

28. Rogers Daniel (1972) 75 has analyzed student loan interest and subsidy variations in Latin
America, Mexico and Peru during 1970. According to his evaluation the interest rates of student
loan in Mexico and Peru, vary from 2 to 8 per cent, and estimated subsidy was between 14 cent
and 61 percent.

29. Dominguez, (1973) 76 has conducted a study on student loan institutions during 1960’s and
1970’s based on survey of student loan institutions in developing countries, and endorsed the idea
of national credit institution exclusively for educational needs in almost all developing countries.

30. Heggade (1998)69 studied the resource allocation and pattern of expenditure on education in
Karnataka state during 1981-90. It also measured the institutional cost of higher education and
studied the management as well organizational problem of higher education in the state.

31. Geetha Rani, P.(2000)70 studied the recent policy direction in India to recover the full cost
from student including hike in fees. The study concluded that indeed, there seems to be a nexus
between the present student loan scheme and full cost recovery

32. Christo' study (1996)68 found that the cost of medical education in a selffinancing college,
without any government subsidy, was about ₹ 2.25 lakh per annum. Similarly, the average cost of
medical education at the Manipal Academy of Higher Education, for the year 1993-94 to 1996-97,
was about ₹ 1.60 lakh per annum for the post-graduate degrees and diplomas

33. Todaro (1985)61 discussed the issues of demand for and supply of education and concluded
that private costs of education are inversely related to the demand for education. Private costs are
high at low level of education because of the low government subsidies. Nair (1990), in his study,
described the various types of costs and their return in the case of higher education. In the case of
private cost of education, the study estimated the average per year expenditure on higher education
in Kerala and showed that tuition fees accounted for minor proportion in the postgraduate courses
during 1985-86

34. Rajkumari (1986)62 presents the vital points in the theoretical reconstruction of cost and
benefit analysis of college education. In cost analysis, the three main components were student
cost, institutional cost and opportunity cost. 32 In the institutional cost (excluding value of college
buildings), mainly three headings were undertaken. They were: (i) maintenance expenditure; (ii)
nonrecurring expenditure; and (iii) students-fund expenditure. After detailed analysis of cost of
college education, it was noted that average cost of all the three attributes were different. The
behavior of cost per institution for all the colleges on different attributes was also in different order.
Taking all colleges together, the institutional cost has increased by 47 per cent during the study
period. The study also shows that among the total cost, opportunity cost has made a big
contribution, followed by student cost, and institutional cost

35. George (1982)58 measured the private and social costs of higher education in Tamil Nadu for
the period 1960-76. He found that private expenditure on professional education was higher than
that of general education. He also points out that the poor communities lagged behind than the
urban based families who were enjoying the maximum benefits of higher education.

36. Gupta (1982) and Shah (1987)59 estimated private costs of college education and found that
among the main components of private cost, fee consisted of a very small proportion of the total
private cost.

37. Hauptman (2006) 45 points out that funding process of higher education followed in India
continues to be on the basis of historical allocation. He suggested a shift to policy-driven funding
by introducing policy variables into funding process or performance-based funding that recognize
outputs rather than just inputs
 CHAPTER NO- 5
RESEARCH METHODOLOGY
5.1. MEANING OF RESEARCH:-

Research comprises “creative and systematic work undertaken to increase the stock of knowledge
including knowledge of humans, culture and society, and the use of this stock of knowledge to
devise new applications." It is used to establish or confirm facts, reaffirm the results of previous
work, solve new or existing problems, support theorems or develop new theories. A research
project may also be an expansion on past work in the field. Research projects can be used to
develop further knowledge on a topic, or in the example of a school research project, they can be
used to further a student's research prowess to prepare them for future jobs or reports.

Definition

The process used to collect information and data for the purpose of making business decisions.
The methodology may include publication research, interviews, surveys and other research
techniques, and could include both present and historical information.

The research proposal outlines the process from beginning to end and may be used to request
financing for the project, certification for performing certain parts of research of the experiment,
or as a required task before beginning a college dissertation.

Types

Research methods can be broadly divided into two categories

1. Quantitative

2. Qualitative

1. Qualitative research is a process that is about inquiry. It helps create in-depth understanding
of problems or issues in their natural settings. This is a non-statistical method.

Qualitative research is heavily dependent on the experience of the researchers and the questions
used to probe the sample. The simple size is usually restricted to 6-10 people open-ended question
are asked in a manner that encourages answers that lead to another question or group of questions.
The purpose of asking open-ended questions is to gather as much information as possible from the
sample.

2. Quantitative research: is a structured way of collecting data and analysing it to draw

conclusions. Unlike qualitative methods, this method uses a computational and statistical process
to collect and analyse data. Quantitative data is all about numbers.
Quantitative research involves a larger population — more people means more data. With more
data to analyse, you can obtain more accurate results. This method uses close-ended question
because the researchers are typically looking to gather statistical data. Online survey questioner
and polls are preferable data collection tools used in quantitative research. There are various
methods of deploying surveys or questionnaires. Online surveys allow survey creators to reach
large amounts of people or smaller focus groups for different types of research that meet different
goals. Survey respondents can receive surveys on mobile phones, in emails, or can simply use the
internet to access surveys.

SOURCES OF COLLECTION OF DATA:-

The data collection has two phases broadly. In first stage, existing data is collected from various
sources to uncover useful information. The second stage involves design of questionnaire to be
used to collect primary data from respondents. The proposed method is descriptive and analytical.
In descriptive analysis the data obtained through secondary & primary research methods is
analyzed in detail. For conclusive analysis data is derived from descriptive analysis. In the process
of analysis, appropriate statistical techniques are used for validating the hypotheses. The details of
data collection design and sampling are given separately.

The primary data for the purpose of the study was collected from the bankers and consumers"
Since the nature of the study was purely exploratory in nature, therefore data had to be collected
with the help of questionnaire or schedule from the bankers and from consumers of housing loan/
car loans of the sampled financial institutions" Data was collected either in holidays, Sundays or
leisure time mostly in their residences"

Collection of Data

Both the primary as well as secondary data are used for analysis in the study.

 Primary Data

The primary data regarding aspect of the home loan by clients of different districts of the Gujarat
from different type of private financial institutions are collected. Collection of the view of the
sample customers regarding home loan from the different financial institutions is done. Data
collected through questionnaire among the home loan customers are also recorded. 3.7.2
Secondary Data The secondary data collected from the published as well as unpublished sources
such as; Annual reports of the different private financial institutions from 2004-05 to 2008-09,
Reserve bank of India Bulletin, National Housing Bank Report, General Budget of 2008- 09 and
2009-10.

Secondary Data

The secondary data collected from the published as well as unpublished sources such as; Annual
reports of the different private financial institutions from 2004-05 to 2008-09, Reserve bank of
India Bulletin, National Housing Bank Report, General Budget of 2008- 09 and 2009-10.

The all secondary data will be statistically processed, classified and tabulated using appropriate
methods and techniques. As there are various methods and techniques to analyze the financial
Cash Flow Statement Ratio Analysis performance.

Objectives of the study Following are given important objectives of the study

1. to study the conceptual framework of educational Loan

2. to study the procedure of borrowing educational loans

3. To study various documents required by banks while lending educational loans to its customers.

4. To suggest measures to improve on educational loan lending norms

Scope of the study

1. The education loan industry is growing and the current outstanding of education loan is about
R43, 000 crore. Apart from banks, Cedilla is the only specialized player in the educational loan
market. What banks are offering is the very basic product, which has been in existence for around
eight years now.

2. The cost of various professional courses going up rapidly, the demand for educational loans has
gone up substantially in the recent times.prasantbhosle chief executive officer of Credila Financial
Services, a subsidiary of HDFC that is exclusively focused on education loans, in an interview to
FE's sitanshu, says there is a huge scope for innovation in education loans, such as offering mid-
course funding and funding for shorter terms.
3. The education loan industry is growing and the current outstanding of education loan is about
R43, 000 crore. Apart from banks, Credila is the only specialized player in the educational loan
market.

4. What banks are offering is the very basic product, which has been in existence for around eight
years now. So, there is a lot of scope for innovation like offering mid-course funding and funding
for shorter terms. No doubt, the pace needs to catch up with the rate of growth in the cost of
education and education sector supply.

5. These issues make the perceived risks relatively much higher for a normal lender. Therefore,
there is a need for specialized players in the education loan industry who not only understand the
changing needs of Indian students, but are also able to evaluate the quality of the course, institute
and employability more scientifically.

Need for the study

1. Easily available: Most banks in India provide education loans as a priority product. Availing
education loans is comparatively less complicated as you only have to establish your repayment
capacity to get approval.

2. Specialized help: Education loans take care of the additional expenses that are associated with
most courses like hostel fees, library fees, etc.

3. Prevents exhaustion of resources: By opting for an education loan, the applicant or his/her
parents can keep their savings intact. Such loans prevent the exhaustion of one’s savings and helps
them meet their financial needs comfortably.

4. Education costs are on a steady rise. In such a scenario, getting an education loan helps the
applicant gain access to quality education at premier institutions whether in India or abroad.

5. Apart from the tuition fees, education loans also help the applicant with the living costs and any
other study related expenses.

Primary objectives

1) It helps the students to go for higher studies even if their family income cannot afford the the
education needed.
2) Banks have affordable and suitable terms and conditions so that students from every category
can apply for loan.
3) The aim of the bank is to help the students and encourage them for higher education by taking
loan.
4) It is applicable to each and every student who fulfills the criteria that is given from the bank.

Secondary objectives

1) The Educational Loan Scheme aims at providing financial support from the
deserving/meritorious students for pursuing higher education in India and abroad"
2) To poor and needy to undertake basic education.
3) To the meritorious students to pursue higher / professional/ technical education, after passing
10+2 or equivalent Disadvantages:
 More expensive
it could be very expensive to obtain primary data collection because the marketer or the
research team has to start from the beginning. It means they have to follow the whole
study procedure, organizing materials, process and etc.

 Time consuming
it is a matter of a lot of time to conduct the research from the beginning to the end. Often
it is much longer in comparison with the time needed to collect secondary data.

 Can have a lot of limits

Primary data is limited to the specific time, place or number of participants and etc. To
compare, secondary data can come from a variety of sources to give more details.

 Not always possible

For example, many researches can be just too large to be performed by your company.

Advantages of Secondary Data:

 Ease of Access
the secondary data sources are very easy to access. The internet world changed how the
secondary research exist. Nowadays, you have so many information available just by
clicking with the mouse in front of the computer.

 Low Cost or Free

The majority of secondary sources are absolutely free for use or at very low costs. It
saves not only your money but your efforts. In comparison with primary research where
you have to design and conduct a whole primary study process from the beginning,
 secondary research allows you to gather data without having to put any money on the
table.

 Time-saving
as the above advantage suggests, you can perform a secondary research in no
time. Sometimes it is a matter of a few Google searches to find a credible source of
information.

 Generating new insights and understandings from previous analysis

Reanalysing old data can bring unexpected new understandings and point of views or
even new relevant conclusions.

 Larger sample size

big datasets often use a larger sample than those that can be gathered by primary data
collection. Larger samples mean that final inference becomes much more straightforward.

 Longitudinal analysis
Secondary data allows you to perform a longitudinal analysis which means the studies are
performed spanning over a large period of time. This can help you to determine different
trends. In addition, you can find secondary data from many years back up to a couple of
hours ago. It allows you to compare data over time.

 Anyone can collect the data

Secondary data research can be performed by people that aren’t familiar with the
different types of quantitative and practically, anyone can collect secondary data.

Disadvantages of secondary data

 Not specific to your needs

here is the main difference with the primary method. Secondary data is not specific to the
researcher’s need due to the fact that it was collected in the past for another reason. That
is why the secondary data might be unreliable and unusual and in many business and
marketing cases. Secondary data sources can give you with a huge amount of
information, but quantity does not mean appropriateness.

 Lack of control over data quality

you have no control of the data quality at all. In comparison, with primary methods which
are largely controlled by the marketer, secondary data might lack quality. It means the
quality of secondary data should be examined in details since the source of the
information may be questionable. As you relying on secondary data for your decision-
making process, you must evaluate the reliability of the information by finding out how
the information was collected and analysed.
 Biasness
as the secondary data is collected by someone else than you, typically the data is biased
in favour of the person who gathered it. This might not cover your requirements as a
researcher or marketer.

 Not timely
Secondary data is collected in the past which means it might be out-of-date. This issue
can be crucial in many different situations.

 Not proprietary Information

generally, secondary data is not collected specifically for your company.
 CHAPTER NO- 6
DATA ANALYSIS & INTERPRETATION
6.1. Introduction

In the previous chapter, the methodology of conducting this research is discussed in details. The
data was subjected to appropriate statistical procedures to test the hypothesis with which the
study is initiated. Data was collected by conducting sample survey with questionnaire. Specimen
of questionnaires is given in the appendices. In this chapter the detailed statistical analysis of
various aspects of Maulana Azad Minorities Financial Development Corporation in Promoting
Self-employment and Empowering Minority Youth in Maharashtra, the results obtained through
analysis and decisions regarding the acceptance or rejection of the hypotheses are presented.

Statistical Analysis of data may be defined as the act of transforming data with the aim of
extracting useful information and facilitating conclusions. Depending on the type of data and the
question, this might include application of statistical methods. Analysis, particularly in case of
surveys involves estimating the values of unknown parameters of the population and testing of
hypothesis for drawing inferences. Due to this, analysis may be categorized as descriptive
analysis and inferential analysis, which is often known as statistical analysis. Objectives
verification descriptive statistics is used and for hypotheses testing inferential statistics is used.
Collected data was analyzed thoroughly using computer based database software such as SPSS –
version 21.0 statistical software as well as MS-Excel add-ins via Data Analysis and Mega Stat.
Both descriptive and inferential statistical tools have been employed for analyzing both, primary
as well as secondary data. Initially we present respondents details which are as follows

Respondent’s Profile In the present study the researcher collected data related to objectives from
573 beneficiaries and 32 officers. Total sample size is 605. Data is collected using stratified
sampling. Basic strata’s are eight districts of Maharashtra. From each district beneficiaries were
selected randomly. 84 Details of demographic and other characteristics of sample beneficiaries
and officers are given below:

Sample Beneficiaries’ Profile In the present study, total six objectives have been framed by the
researcher. Three objectives out of six are based on the responses of beneficiaries. In order to
collect feedback from them, questionnaire instrument was used. The first part of it was the
general profile of the beneficiaries which is essential for cross tabulation of the data. The
beneficiaries profile includes their district, category and gender which are given as under: a)
District: The details of selected sample respondents from different districts are tabulated below:

District-wise frequency distribution details of beneficiaries

Districts Frequency Percent

83 14.5
Pune
91 15.9
Sholapur
92 16.1
Parbhani
10 1.7
Kolhapur
40 7.0
Ahmednagar

No of benificeries
140
120
100
80
60
40 No of benificercy
20
0

Interpretation:

From the above table it is observed that

Out of total 573, maximum (118) beneficiaries belong to Dhule district.

ii) The number of beneficiaries from Kolhapur district is minimum (10

iii) From Thane and Pune the numbers of beneficiaries are 70 and 83 respectively. 85

iv) From Sholapur, Parbhani, Sangli and Ahmednagar the corresponding numbers of
beneficiaries are 91, 92, 40 and 69 respectively.
b) Category: Researcher gathered feedback randomly from four major communities. The details of
which is given below:

Category-wise frequency distribution details of beneficiaries

Religion wise Frequency Percent

Muslim 533 93.0

Christian 18 3.1

Buddhist 8 1.4

Jain 14 2.4

Total 573 100.0

Interpretation:

From the above table it is observed that

i) 533 out of total 573 (93%) beneficiaries belong to Muslim community.

ii) Only 8 out of 573 (1.4%) beneficiaries surveyed are from Buddhist community.

iii) No Sikh or Parsi beneficiaries could be found for obtaining their feedback.
700

600

500

400
Series2
300 Series1

200

100

0
Muslim Christian Buddhist Jain

Bank wise Dividend Cover

Bank Name Year Average

2009-10 2010-2011 2011-2012 2012-2013 2013-1014

UBI 7.47 4.95 4.03 4.50 6.69 5.44

 100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
2009-10 2010-2011 2011-2012 2012-2013 2013-1014
Union Bank Year
of India

The table describes the DC of selected banks. The In Allahabad DC was 8.61 during the year
2013-14 where as the lowest 3.95 during the year 2005-06 and 2012-13. In Andhra bank highest
DC were 4.61 during the year 2013-14 where as the lowest 2.92 during the year 2007-08. In
BOB highest DC were 4.62 during the year 2005-06 where as the lowest 7.16 during the year
2012-13. In BOI highest DC were 9.57 during the year 2007-08 where as the lowest 1.07 during
the year 2013-14. In corporation Bank highest DC were 4.97 during the year 2013-14 where as
the lowest 3.26 during the year 2006-07. In Dena bank highest DC were 12.54 during the year
2007-08 where as the lowest 0.00 during the year 2004-06. In Punjab National Bank highest DC
were 9.23 during the year 2013-14 where as the lowest 4.06 during the year 2007-08. In SBI
highest DC were 7.56 during the year 2004-05 where as the lowest 3.87 during the year 2011-
12. In syndicate Bank highest DC were 5.74 during the year 2011-12 where as the lowest 4.11
during the year 2006-07. In Union Bank of India highest DC were 6.87 during the year 2007-08
where as the lowest 4.03 during the year 2011-12.
 ANALYSIS OF NET PROFIT MARGIN (NP):

The ratios are designed to focus attention on the net profit margin arising from business
operation before interest and tax is deducted. The convention is to express profit after tax and
interest as a percentage of sales. A drawback is that the percentage which result varies
depending on the sources employed to finance business activity; interest is charged above the
line while dividends are deducted below the line. It is for this reason that net profit i.e. earnings
before interest tax (EBIT) is used.

The ratio reflects net profit margin on the total sales after deducting all expenses but before
deducting interest and taxation. This ratio measures the efficiency of operation of the
company. The net profit is arrived at from gross profit after deducting administration, selling
and distribution expenses. The non-operation incomes and expenses are ignored in
computation of net profit before tax, depreciation and interest.

The ratio could be compared with that of the previous years and with that of competitors to
determine the trend in net profit margins of the company and its performance in the industry.
This measure will depict the correct trend of performance where three are erratic fluctuations
in the tax provisions from year to year. The ratio is calculated as follows:

𝑵𝒆𝒕 𝑷𝒓𝒐𝒇𝒊𝒕 𝑩𝒆𝒇𝒐𝒓𝒆 𝑰𝒏𝒕𝒓𝒆𝒔𝒕 𝒂𝒏𝒅 𝑻𝒂𝒙

Net profit Margin × × 100
𝑺𝒂𝒍𝒆𝒔
 Bank wise Net Profit Margin

Year Average

2009-10 2010-2011 2011-2012 2012-2013 2013-2014

Union Bank
of India 13.47 11.27 7.63 7.79 5.27 10.52

The table describes the net profit margin of selected banks. The In Allahabad bank highest Net
Profit Margin was 16.92 during the year 2005-06 where as the lowest 5.60 during the year
2013-14. In Andhra bank highest Net Profit Margin were 18.18 during the year 2004-05 where
as the lowest 8.32 during the year 2013-14. In BOB highest Net Profit Margin were 17.18 during
the year 2010-11 where as the lowest 9.77 during the year 2004-05. In BOI highest Net Profit
Margin were 15.89 during the year 2007-08 where as the lowest 5.08 during the year 2004-05.
In corporation Bank highest Net Profit Margin were 16.37 during the year 2004-05 where as the
lowest 2.86 during the year 2013-14. In Dena bank highest Net Profit Margin were 11.17
during the year 2009-10 where as the lowest 3.11 during the year 2013-14. In Punjab National
Bank highest Net Profit Margin were 15.64 during the year 2009-10 where as the lowest 6.99
during the year 2013-14. In SBI highest Net Profit Margin were 12.03 during the year 2009-10
where as the lowest 9.35 during the year 2013-14. In syndicate Bank highest Net Profit Margin
were 11.58 during the year 2005-06 where as the lowest 8.05 during the year 2011-12. In Union
Bank of India highest Net Profit Margin were 13.47 during the year 2009-10 where as the
lowest 5.27 during the year 2013-14.

ANALYSIS OF EARNINGS PER SHARE (EPS):

The objective of financial management is wealth or value maximization of a corporate entity.

The value is maximized when market price of equity shares is maximized. The use of the
objective of wealth maximization or net present value maximization has been advocated as an
appropriate and operationally feasible criterion to choose among the alternative financial
actions. In practice, the performance of a corporation is better judged in terms of its earnings
per share (EPS). A higher EPS means better capital productivity.

𝑵𝒆𝒕 𝑨𝒇𝒕𝒆𝒓 𝑻𝒂𝒙 𝒂𝒏𝒅 𝑷𝒓𝒆𝒇𝒆𝒓𝒂𝒏𝒄𝒆 𝑫𝒊𝒗𝒊𝒅𝒆𝒏𝒅

EPS = 𝑵𝒐 𝒐𝒇 𝑬𝒒𝒖𝒊𝒕𝒚 𝑺𝒉𝒂𝒕𝒓𝒆𝒔.

(𝑬𝑩𝑻− 𝟏)(𝟏−𝑻 )
EPS when Debt and Equity used = 𝑵
Where,

EBIT = Earnings before Interest and Tax

I = Interest

T = Rate of Corporate Tax

N = Number of Equity Shares

 Bank wise Earnings per Share

Year Average

Union Bank 2009-2010 2010-2011 2011-2012 2012-2013 2013-2014

of India
41.08 39.61 32.27 36.00 26.75 27.11

The table describes EPS of selected banks. In Allahabad EPS was 37.33 during the year 2011-12
where as the lowest 15.63 during the year 2004-05. In Andhra bank highest EPS were 24.03
during the year 2011-12 where as the lowest 11.03 during the year 2006-07. In BOB highest EPS
were 121.79 during the year 2011-12 where as the lowest 23.08 during the year 2004-05. In BOI
highest EPS were 57.26 during the year 2008-09 where as the lowest 6.98 during the year 2004-
05. In corporation Bank highest EPS were 101.67 during the year 2011-12 where as the lowest
23.42 during the year 2013-14. In Dena bank highest EPS were 23.15 during the year 2012-13
where as the lowest 2.49 during the year 2013-14. In Punjab National Bank highest EPS were
144.00 during the year 2011-12 where as the lowest 44.72 during the year 2004-05. In SBI
highest EPS were 206.20 during the year 201213 where as the lowest 81.79 during the year
2004-05. In syndicate Bank highest EPS were 33.30 during the year 2012-13 where as the
lowest 9.28 during the year 2004-05. In Union Bank of India highest EPS were 39.61 during the
year 2010-11 where as the lowest 13.37 during the year 2006-07.
 CHAPTER NO- 7
Findings suggestion &
conclusion

Bibliography

Annexure
Findings
FINDINGS OF PROFILE OF THE RESPONDENTS OF

UNION BANK OF INDIA

1. • responses in SBI are from male customers and 227 from female customers of SBI
2. • The majority of respondents in this bank belongs to the age group of 31-40 and customers are
less in the category of age above 50 years
3. • 379 of SBI respondents are married.
4. • Most of the respondents of SBI were educated. Only 49 of the respondents in

UBI were people who had no educational qualification while the maximum

5. respondents -177 were undergraduates

6. • 136 respondents of the State Bank of India were employees of private
7. Companies. 42 respondents were those with no occupation to mention.
8. • Customers with a monthly income ranging from Rs.10,001- Rs.20,000 responded at a large
forming 163 responses and only 14 responses were
9. Received from customers earning above Rs.40, 000.
10. • Maximum of the respondents that is 203 responses were from customers who
11. Had been loyal to their bank for being a customer for 4-8 years. 54 respondents
12. Had been customers for more than 12 years.
13. • Most of the respondents that is 382 respondents alleged that the mode they use
14. for the transaction was face to face transaction was the most preferred mode with 382 respondents
and the usage of mobile banking alone was the least preferred by only 3 respondents giving it a
try.
15. • 173 customers opined that the main purpose of CRM was to retain the customers and one
respondent viewed CRM a combination of all factors.
 Suggestion

 Creating awareness of the existence and availability of support services among entrepreneurs is
considered.

 One of the major challenges in support policy for small and medium sized enterprises and in
particular for micro, small and sole proprietor’s businesses.

 As our nation is an agricultural based more thrust must be given on the loan given to agriculture
to bring more acreage of bare lands under cultivation.

 As the urban beneficiaries having more impact the similar impact must be penetrated to the
rural location of beneficiaries.

 The female beneficiaries having more impact, further magnifying of the female beneficiaries is
must as the nation having the thrust in women empowerment.

 Even though the reserve category having more impact, still the impact must be increased for
the reserve category to bring them at par with general category.

 As the policy of our nation viewing towards the upliftment of illiterates, it has to be paid more
interest and thrust in the same way as the nation needs.
Conclusion:

Union Bank has the capability and the early mover advantage in internet banking and
mobile banking areas. Though they have made good progress in technology, the
challenge lies in quickly disseminating these products amongst their clientele and also
present themselves as a technology bank, particularly to the younger generation of the
society. With the mobile banking revolution sweeping the country, it will also support the
national endeavor of financial inclusion of the currently deprived lower strata of society.
Reserve Bank of India is committed to increase transactions through electronic modes
with an intention of not only taking steps to fulfill its dream of Paperless Banking but
also to maintain proper records of all transactions. In this venture, Union Bank of India
committed in supporting this 287 through various innovative and out-of-the-box projects
of the kind of Cashless Campus. Union Bank is the first to introduce NEFT facility to the
customers of two Regional Rural banks sponsored by the Bank.

The online RTGS and NEFT facility of Union Bank allows the customer to transfer
funds through internet banking from the world. The exchange houses in Gulf countries
which have tie up with Union Bank, can route their rupee remittances for credit of
beneficiary accounts with any bank in India through NEFT / RTGs system using the
bank’s ‘E-Remit package. Financial Inclusion is the buzzword of the Banking Industry
and is the thrust area of both Government of India as well as RBI. The rural populace in
remote unbanked and under banked areas of the country are being mainly reached out by
all the banks through the Branchless Banking model. This cuts down the necessity of
establishing regular brick and mortar branches at heavy costs and at the same time
ensures the reach of the bank to the targeted population through the Business
Correspondent Model.
 Bibliography

www.wikipedia.com.in
www.linkin.com.in
www.unionbankofindia.com.in
www.scribd.com.in
 Annexure

Format

Documentation Required for Union Bank of India Education Loan:

To apply for the Union Bank of India Education Loan, applicants need to furnish the following
documents.

Proof of identity – Passport, PAN Card, Employee Identity card or any other valid proof
Proof of address - Electricity bill, Telephone bill, Ration card or any other valid proof.
PAN Card
Bank statement for the last 12 months
Admission documents, Admission Letter, Admit Card.
Schedule of expenses including the fee structure and living expenses.
Mark sheets for Class X or equivalent onwards.
Photographs
Proof of any out-goes
Loan repayment statement (If any) , MOHD KAIF SHAIKH
LIC Policies (If any)
Any other document asked for in the application form
Proof of Income: