CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Most times advert on our television, radio and bill boards by banks in the country have always tried to express how excellent and prompt their services are. In the adverts, they try to show the high quality of services provided to customers that patronize their own particular bank. By implication they try to uniform the public that they (bank) are capable of providing quickly prompt and courteous services of their customers. Notwithstanding all these advertisement shown by the banking industry have been criticized by different segment of the society over the poor quality of services it lenders to customers.
Presently in some banks slow pace of work is still observed resulting in long queues even to obtain a cheque booklet is characterized by the come tomorrow, come next week syndrome, bank customers are still treated with laxity and in most times banks workers still exhibit poor attitude to work. The resultant effect of this nonchalant attitude to work, which is exchange of words between the bank staff and customers still obtains. The issue of difficulty in obtaining loan in our banks have persisted. All these problems does augur well for bank/customer relationship especially in a developing economy like ours where banking habits have not been fully developed. Based on this, it become imperative for a study to be carried out with a view to found out what actually is the true position of the relationship between the bank and customers. Also with the recent development in financial sector, where customers patronage depend on how well a customer’s problem when the study is completed.
History of UBN Plc
Union bank of Nigerian plc was incorporated in 1969 as a wholly owned subsidiary of bardages bank international limited and renamed bardages bank of Nigeria limited, it’s ownership structure remained uncharged until 1971 where 8.33% of the banks share exchange. As a result of the Nigeria enterprises promotion decree 1972, the federal government of Nigeria acquired 51.67% of the bank shares which left bardays bank plc London with 40%. In 1986, union bank of Nigeria plc become the first bank in Nigeria to achieve the N1 billion mark in savings deposits. Since then, its saving deposits have increased tremendously. Currently, the bank has one of the largest asset an deposit bases among nigeria’s financial institutions, totaling N275.2 billion and N204.4 billion for the last financial year ended march 31, 2002 respectively. Also its gross earning stand at N3.19 billion, which a current core capital of N28.8 billion, representing an increase of 134 percent over the fighting for the preceding financial year.
The bank remains one of the most capitalized financial institution in the sub-saharan region. Its share are also most sought after in the industry today. Last October, it offered a right issue of 838.95 million ordinary shares of 50 kobo each as N1800 per share an of that reffed a total of N15.350 billion which transcends to an over superscription of N249 million approximately two percent above the initial target. This is a dear manifestation of the soundness of the bank and the high level of investors confidence. Union bank of Nigeria plc powerful position as one of nigeria leading banks is epitomized by its new headed office, which at 32 high, is the fewest and one of the grandest building on the west coast of Africa. The bank’s board is led by the chairman, elder kalu uke kola, while the group managing directory Chief executive management team. Union bank of Nigeria plc offers an unrivalleged range of products to its clients. These can be produced in two categories.
(A) Generalized services: currently, savings and deposits accounts funds acceptance, credit currency domiciliation loans and over drafts.
(B) Tailor made services: equipment leasing commercial papers, bankers acceptance, credit information services trade esquires, import export documentation and finance.
Union of bank of Nigeria plc has once again won the bank of the year award since its establishment in 1917 union bank of nigeria plc has been in the vanguard of economic development and growth of nigeria and this has won it may lantals for three consecutive years (2000, 2001,2002) if was renamed the number one bank in Nigeria by the banker magazine, a sister publication of the influential financial times of London. Union bank of Nigeria plc over 313 branches including those of its subsidiaries, an off share branch in the city of London and representative office in Johnesburg, south Africa – the only Nigerian bank to have a presence there. Union bank of Nigeria plc is one of these core shareholders in a consortium of 39 banks that promotes the use of smart-cards in Nigeria. With a 35% equity, the bank remains the largest shareholders of one of the most profitable discount houses in the country consolidated discounts limited.