Due to its nature of operation unit banks hold some features. Those are as follows:
1. Unit office: It has only one office. i. e. it has no branches.
2. Particular area: It deals its activities in a particular area, where it is established.
3. Ownership: Several times the ownership of this bank is sole proprietorship. But it can also be established by partnership or Joint Stock Company.
4. Limited capital: As the capital of the bank is provided by one or few persons, the capital is limited.
5. Small size: It’s a bank of single office and deals with small capital, so it is small in size.
6. Easy Formation: Because of its size and amount of capital the bank can easily be formed.
7. Scale of Operations: Due to its small capital and size, the scale of operation is small. i. e. It can’t provide huge loan to its clients.
8. Efficient Management: Due to its small size of operation the management of this bank is very efficient.
9. Method of Functioning: It takes help of corresponding banking system for providing banking services through out the country.
10. Rapid decision: The manager can take rapid decision at the time of sanctioning loan.
11. Legal entity: The bank has a legal entity although it’s owned by a single owner. That’s why people have trust on this type of bank.