CHAPTER-1

INTRODUCTION  STATEMENT OF THE PROBLEM  OBJECTIVES  SCOPE  LIMITATIONS  PRESENTATION OF THE REPORT

1.1 INTRODUCTION TO ORGANIZATION STUDY

An organization study is indispensable for all professional students, to have a practical knowledge of how an organization executes its various functions to achieve its objectives. It gives a clear picture of the various departments in an organization and the functions which they execute to accomplish their objectives and thereby the overall objectives of the organization. Each department is not a separate entity. No department can function properly without the cooperation of others. Therefore, for a successful organization it is very important to coordinate the efforts of each department to attain effectiveness and efficiency in the performance. An organization study helps students to understand how the organization harmoniously integrates various functions including Finance, HR, Marketing, Systems etc. so that their overall objectives are met. Further, an organization study enables students to know the Strengths, Weakness, Opportunities and threats of the organization. It helps the organization to identify its strengths and opportunities and at the same time to take measures to overcome their weakness and threats. The industry where I was doing my Organizational study was the banking sector. India has a well developed banking system. Most of the banks in India were founded by Indian entrepreneurs and visionaries in the pre-independence era to provide financial assistance to traders, agriculturists and budding Indian industrialists. Presently, SBI is the largest commercial bank in the country. The role of central banking in India is looked by the Reserve Bank of India, which in 1935 formally took over these responsibilities from the then Imperial Bank of India. Reserve Bank was nationalized in 1947 and was given broader powers. In 1969, 14 largest commercial banks were nationalized followed by six next largest in 1980. But with adoption of economic liberalization in 1991, private banking was again allowed. UCO Bank is a commercial bank established in 1943. The idea to establish the bank was first conceived by G.D. Birla, the famous industrialist, after the historic 'Quit India Movement' in 1942. The idea was culminated on the 6th of January 1943, when The United Commercial Bank Ltd. was born with its Registered and Head Office at Kolkata. Along with 13 other major commercial banks of India, United Commercial Bank was nationalized on 19th July, 1969, by the Government of India. Thereafter the Bank expanded rapidly. Today the UCO Bank is one of the best banks in India.

1.2

STATEMENT OF THE PROBLEM

The prime aim of the organizational study at the UCO Bank, Bacheli was to get familiarize with the business organization model of a bank as I was interested in knowing the working of a bank. Also, by this study I intended to know the different departments and functions of these departments. Any organization’s main challenge is to do well in the rural sector and as the UCO Bank, Bacheli is situated in a rural area and its business is doing well. Hence I used this as an opportunity to learn the functioning of a bank in the rural sector. This study helped me not only to understand the functioning of the bank but also about how a business is conducted by a bank in the rural sector.

1.3 OBJECTIVES

1. To analyze functions of various departments in UCO Bank situated in Bacheli, in

Chhattisgarh. 2. To study the performance of UCO Bank, Bacheli. 3. To analyze the management practices followed in various departments within the UCO Bank, Bacheli.

1.4 RESEARCH METHODOLOGY

Research Methodology is a way to systematically solve the research problem. In any research, various steps are adopted in studying the problem along with logic behind them. The Research Methodology includes description about why the research study has been undertaken how the hypotheses, if any has been defined, what data have been collected and what particular method have been adopted. So by framing a right methodology it is possible to gain a deeper insight into the research problem and also methodology of any study would help planning executing bringing relevance and reviving the purpose of the study. All the Information for the project was procured through discussions and informal interviews with the staff of UCO BANK in Bacheli (a small town in Chhattisgarh). The interviews conducted were basically informal.

1.4.a Data Collection
Information was collected from the company in two ways. They are

1.4.b Primary Data:
In primary data collection, you collect the data yourself using different methods. The key point here is that the data you collect is unique to you and your research and, until you publish, no one else has access to it. The method used for collecting primary data was throught observation and discussion.

1.4.c Secondary Data:
Secondary dates are collected from 1. UCO Bank’s Policy Manual: UCO Bank releases its policies manual every year. The one I referred was released in 2009. 2. UCO BANK website: The bank has a very updated website where all the information are of recent happenings
3. Other Website: I also took information from other website, some of the websites are

I. II.

RBI Homepage(June, 2009) Ministry of finance(June, 2009)

1.4.d Time Frame
The study was conducted for a period of 4 weeks (20th May 2009 to 19th June 2009)

1.5 SCOPE OF THE STUDY

From the Organization point of view, the organization study helps the organization to understand the efficiency of each department and the relevance of each department in attaining the overall purpose of the organization. It helps the organization to hold each department responsible for the activities entrusted on them. By conducting SWOT analysis, the branch could understand its Strength, Weakness, Opportunities and Threats. By the effective usage of strengths, UCO Bank can tap the opportunities and at the same time take necessary preventive measures to overcome weakness and eliminate threats. As a student, I was able to have a practical knowledge and understanding about the functioning of the organization. Managers play an important role in the organization like decision making, allocation of resources, direction of activities, etc. thus it is necessary for a management student to understand and study an organization through a training program in a real industrial set up. The outcome of the study is beneficial to the top management in order to know the lapses in the branch. Also the SWOT analysis helps the top management to know the possible opportunities and threats faced by the branch. This study also helps the stakeholders to know the position of the bank

1.6 LIMITATIONS 1. The main limitation faced was the Bank provided very limited information about the project as most of the information required was extremely confidential and fell outside the Bank’s security policy. 2. Most of the employees could not be able to spare enough time to share their experiences.

1.7 PRESENTATION OF THE REPORT

The presentation of the report is in the form of five chapters i.e.: Chapter 1- Introduction This chapter includes the statement of the problem, the objectives of the study undertaken, its significance, the methodology adopted for the study, scope of the study and the limitations of the study.

It gives the insight of the industry and how the scenario in the industry changed over the decades. Chapter 3. Chapter 5-Swot Analysis This chapter analyses the strengths. weaknesses.Findings.Chapter 2. Chapter 4.UCO Bank – An overview This chapter gives the insight about the UCO Bank.Industry profile This chapter contains an overview of the industry. opportunities and threats of the organization. Bacheli. Chapter 6. It talks about the regulations and about the different types of banks available in India. It talks about the banking industry in India. Conclusions and Suggestions . It also says about the central bank of India that is the Reserve Bank of India (RBI).Functional analysis of the UCO Bank. It talks about the products the bank offers and the duties of an employee in the bank. This also contains the profile of the UCO Bank in Bacheli in the state of Chhattisgarh. Bacheli This chapter analyzes the working of various departments in the UCO Bank.

\ CHAPTER-2  INDUSTRY PROFILE  COMPANY PROFILE  ORGANIZATION STRUCTURE .

The first modern bank was founded in Italy in Genoa in 1406. the Reserve Bank was nationalized and given broader powers. asset management. . India has 88 scheduled commercial banks (SCBs) .1 BANK A bank is a financial institution whose primary activity is to act as a payment agent for the customer and to borrow and lend money. Financial institutions generally fall under financial regulation from a government authority. George). building societies. the government nationalized the six next largest in 1980. a government-owned bank that traces its origins back to June 1806 and that is the largest commercial bank in the country. American Express Bank Ltd.27 public sector banks (that is with the Government of India holding a stake) like IDBI Bank. a financial institution acts as an agent that provides financial services for its clients or members. ING Vyasa Bank. Common types of financial institution include banks. UCO Bank. its name was Banco di San Giorgio (Bank of St. In 1969 the government nationalized the 14 largest commercial banks. and similar business.2 BANKING IN INDIA Banking in India originated in the last decades of the 18th century. Central banking is the responsibility of the Reserve Bank of India. Vijaya Bank. Citibank are among the 38 foreign banks operating in the Indian Banking Industry. Oriental Bank. SBI Commercial and International Bank Ltd. In financial economics. relegating it to commercial banking functions. 2.2. Currently. The oldest bank in existence in India is the State Bank of India. Bank of Rajasthan Ltd. they may be publicly listed and traded on stock exchanges) like Punjab National bank. Many other financial activities were added over time. After India's independence in 1947. 31 private banks (these do not have government stake. Allahabad Bank among others and ANZ Grindlays Bank. stock brokerages. ABN-AMRO Bank. which in 1935 formally took over these responsibilities from the then Imperial Bank of India. For example banks are important players in financial markets and offer financial services such as investment funds. credit unions.

000 branches spread across the country.7 percent. The manufacturing sector also grew during the 1970s in protected environs and the banking sector was a critical source.9 percent and 12. Eight new private sector banks are presently in operation. Since then the number of scheduled commercial banks increased four-fold and the number of bank branches increased eight-fold.3 HISTORY OF INDIAN BANKING INDUSTRY The Indian Banking industry. commercial banks can be further grouped into nationalized banks. The share of foreign banks (numbering 42). In terms of ownership. which is governed by the Banking Regulation Act of India. regional rural banks and other scheduled commercial banks accounted for 5. the State Bank of India and its group banks. This in turn resulted in a significant growth in the geographical coverage of banks. The next wave of reforms saw the nationalization of 6 more commercial banks in 1980.2 percent of the deposits and 47. non-scheduled banks and scheduled banks. Scheduled banks comprise commercial banks and the co-operative banks. During the year 2000.2.1 percent share in credit. 3. The 20 nationalized banks accounted for 53. These banks have over 67.5 percent of credit during the same period. 1949 can be broadly classified into two major categories. These banks due to their late start have access to state-of-the-art technology. the State Bank of India (SBI) and its 7 associates accounted for a 25 percent share in deposits and 28. the Public Sector Banks (PSB) s found it extremely difficult to compete with the new private sector banks and the foreign banks. regional rural banks and private sector banks (the old/ new domestic and foreign). After the second phase of financial sector reforms and liberalization of the sector in the early nineties. which in turn helps them to save on manpower costs and provide better services. The new private sector banks first made their appearance after the guidelines permitting them were issued in January 1993. The first phase of financial reforms resulted in the nationalization of 14 major banks in 1969 and resulted in a shift from Class banking to Mass banking.2 percent respectively . Every bank had to earmark a minimum percentage of their loan portfolio to sectors identified as “priority sectors”.

14 percent and 12. 3. Commercial Bank Industrial Bank Agriculture Bank Exchange Bank Savings Bank Central Bank World Bank .Operative Bank Local area Bank National Bank for Agriculture and Rural Development Land Development Bank The types of banks those are functioning for satisfying the different aspects of the customers are given below.85 percent respectively in credit during the year 2000. The banking structure in India RBI Commercial Bank Development Bank Exim Bank Co.41 percent.in deposits and 8.

4 THE BANKING SECTOR Table 1: the banking sector analyzed by the RBI Items SBI &its Associates 2007.99 1.13 4.02 14.78 1995 7136 4345 5514 1011 All Banks 200708 79 776 11588 4.01 13.51 8.83 6794 105285 32752 76027 9212 Other SCBs 200708 23 348 7259 5.69 6584 1755 6.67 3994 42026 14903 31354 3905 200809 78 825 12039 5.98 13.56 427 410 4.97 1762 6827 3533 5755 872 200809 30 10 1010 24.05 1.09 379 370 4.65 8824 2870 6.12 3366 1142 6.200808 09 8 7 1897 31126 3.45 1.12 19.77 5654 84000 2680 1 60184 7132 1968 23303 4.89 0.18 4.06 1.62 7713 96734 32978 74215 8803 2 Other income Interest expended Operating expenses Cost of funds (COF) Return on advances adjustment to COF Wages as % to total expenses Return on assets 1477 6 5976 2124 5.73 6.13 .09 19.25 5.01 2108 881 6.05 4.12 13.2.03 10.07 3.79 1.82 3.13 10. of banks No. of employees Profit per employee (in RS lakhs) Capital and Reserves & Surplus Deposits Investments Advances Interest income 15.10 2633 978 5.97 15.43 229 1049 1305 739 848 378 496 764 960 2291 38371 4.34 1.52 1.70 3973 29349 12112 22539 3087 200809 21 411 8289 6.16 4716 34610 14440 27084 4004 Foreign Banks 200708 28 10 1182 19.80 4.82 5055 1483 5.43 10346 143863 51089 105658 1274 Nationalized banks 2007200808 09 20 20 1892 23320 3.90 3.88 2682 1027 6. of offices No.14 1.68 2.60 4708 51970 18542 38389 4972 No.

State Bank of Saurashtra (SBS). Union Bank of India.5 TYPES OF BANK IN INDIA  Public Sector Bank  Private Sector Bank  Co. its seven subsidiaries were also nationalized with deposits over 200 crores. and State Bank of Travancore (SBT).77 14.5.a PUBLIC SECTOR BANK Nationalized banks dominate the banking system in India.30 13. and Vijaya Bank.45 12.23 1. Canara Bank. However. Dena Bank.43 13. Bank of Maharashtra.00 13.77 13. when Imperial Bank of India was nationalized (under the SBI Act of 1955) and re-christened as State Bank of India (SBI) in July 1955.98 1.Operative Banks  Foreign Bank  Regional Rural Bank 2. Central Bank of India.34 1.rbi. Syndicate Bank.30 1. State Bank of Mysore (SBM).org 2.05 Source: www. Andhra Bank. State Bank of Hyderabad (SBH).68 14.96 1. Punjab and Sind Bank. Then on 19th July 1960. the major nationalization of banks happened in 1969 by the then-Prime Minister Indira Gandhi.CRAR Net NPA ratio 13. Bank of India. Oriental Bank of Commerce (OBC).09 15.21 1. State Bank of Patiala (SBP).24 0. These subsidiaries of SBI were State Bank of Bikaner and Jaipur (SBBJ). United Bank of India (UBI). Punjab National Bank (PNB).80 13. UCO Bank. The history of nationalized banks in India dates back to mid-20th century.08 0. Corporation Bank. The major objective behind nationalization was to spread banking infrastructure in rural areas and make cheap finance available to Indian farmers. The nationalized 14 major commercial banks were Allahabad Bank. Indian Overseas Bank. State Bank of Indore (SBIR). Bank of Baroda. Indian Bank.13 0. .01 1.

It serves 90 million customers through a network of 9. After the nationalization of banks there was a huge jump in the deposits and advances with the banks. the second phase of nationalization of Indian banks took place. the State Bank of India is the largest commercial bank of India and is ranked one of the top five banks worldwide. LIST OF PUBLIC SECTOR BANKS IDBI Bank Ltd.In the year 1980. At present.000 branches. UCO Bank Union Bank of India United Bank of India Vijaya Bank Allahabad Bank Andhra Bank Indian Bank Indian Overseas Bank Bank of Baroda Oriental Bank of Commerce Punjab National Bank Bank of India Syndicate Bank Canara Bank Central Bank of India Corporation Bank Dena Bank . the Government of India held a control over 91% of the banking industry in India. With this. in which 7 more banks were nationalized with deposits over 200 crores.

5. the Reserve Bank of India issued a policy of liberalization to license limited number of private banks. and Bank of Madras. Thus. In 1994. Global Trust Bank was. The Government of India issued an ordinance and nationalized the 14 largest commercial banks of India. the first private bank after liberalization. merged to form Imperial Bank of India. In 1935. Central Bank of India. Bank of Bombay. thus. which were founded in the pre-independence era to cater to the banking needs of the people. transferring commercial banking functions completely to IBI. including Punjab National Bank (PNB). Canara Bank. occurred the nationalization of major banks in India on 19 July 1969. Private Banks in India includes leading banks like ICICI Banks. etc. In 1921. Then Housing Development Finance Corporation Limited (HDFC) became the first (still existing) to receive an 'in principle' approval from the Reserve Bank of India (RBI) to set up a bank in the private sector. LIST OF PRIVATE SECTOR BANKS • • Bank of Punjab Bank of Rajasthan . private banks have played a major role in the development of Indian banking industry.b PRIVATE SECTOR BANK Initially all the banks in India were private banks. ING Vysya Bank. the GOI nationalized 6 more commercial banks. Allahabad Bank. In 1955. Undoubtedly.e.2. Jammu & Kashmir Bank. They have made banking more efficient and customer friendly. the Reserve Bank of India (RBI) was established and it took over the central banking responsibilities from the Imperial Bank of India. Karnataka Bank. In 1980. Kotak Mahindra Bank. it was later amalgamated with Oriental Bank of Commerce (OBC). after the declaration of first-five year plan. Imperial Bank of India was subsequently transformed into State Bank of India (SBI). At present. public sector banks revived to take up leading role in the banking structure. three major banks i. In the process they have jolted public sector banks out of complacency and forced them to become more competitive. which came to be known as New Generation tech-savvy banks. etc. being tech-savvy and full of expertise. SBI Commercial and International Bank. Banks of Bengal. with control over 91% of banking business of India. Following this.

judging by the role assigned to co operative.OPERATIVE BANKS The Co operative banks in India started functioning almost 100 years ago.• • • • • • Catholic Syrian Bank Centurion Bank City Union Bank Dhanalakshmi Bank Federal Bank HDFC Bank • • • • • • • • • ICICI Bank IndusInd Bank ING Vysya Bank Jammu & Kashmir Bank Karnataka Bank Karur Vysya Bank Laxmi Vilas Bank South Indian Bank UTI Bank 2. The Cooperative bank is an important constituent of the Indian Financial System.5. The cooperative bank in India plays an important role even today in rural financing. the expectations the co operative is supposed to fulfill. and the number of offices the cooperative bank operate. .c CO. but the importance of such banks have assumed in India is rarely paralleled anywhere else in the world. The business of cooperative bank in the urban areas also has increased phenomenally in recent years due to the sharp increase in the number of primary co-operative banks. Though the co operative movement originated in the West. their number.

They are governed by the Banking Regulations Act 1949 and Banking Laws (Co-operative Societies) Act. The cooperative bank is also regulated by the RBI.Co operative Banks in India are registered under the Co-operative Societies Act. According to NAFCUB the total deposits & lending of Cooperative Banks in India is much more than Old Private Sector Banks & also the New Private Sector Banks. • . 1965. Cooperative banks in India finance rural areas under: • • • • • Farming Cattle Milk Hatchery Personal finance Cooperative banks in India finance urban areas under: • • • • • • Self-employment Industries Small scale units Home finance Consumer finance Personal finance Some facts about Cooperative banks in India • Some cooperative banks in India are more forward than many of the state and private sector banks.

The review would examine issues concerning extension of national treatment to WOS. They have helped made Indian Banking system more competitive and efficient.• This exponential growth of Co operative Banks in India is attributed mainly to their much better local reach. personal interaction with customers. and their ability to catch the nerve of the local clientele. foreign banks may establish a presence by way of setting up a wholly owned subsidiary (WOS) or conversion of existing branches into a WOS.5. During the first phase between March 2005 and March 2009. Government has come up with a road map for expansion of foreign banks in India. 2. The second phase will commence in April 2009 after a review of the experience gained after due consultation with all the stake holders in the banking sector. dilution of stake and permitting mergers/acquisitions of any private sector banks in India by a foreign bank.d FOREIGN BANK Foreign banks have brought latest technology and latest banking practices in India. The road map has two phases. LIST OF FOREIGN BANKS IN INDIA • • • • • • • • • • ABN-AMRO Bank Abu Dhabi Commercial Bank Bank of Ceylon BNP Paribas Bank Citi Bank China Trust Commercial Bank Deutsche Bank HSBC JPMorgan Chase Bank Standard Chartered Bank .

e REGIONAL RURAL BANK Rural banking in India started since the establishment of banking sector in India. etc. Few of them are as follows.5. in the state and giving service to its depositors.5. Apart from SBI. commonly called as HARCOBANK plays a vital role in rural banking in the economy of Haryana State and has been providing aids and financing farmers. 2. . 2. there are other few banks which functions for the development of the rural areas in India. Till date in rural banking in India.5. cottage and village industries.• • Scotia Bank Taib Bank 2. there are 14. The total number of SBIs Regional Rural Banks in India branches is 2349 (16%).II NABARD National Bank for Agriculture and Rural Development (NABARD) is a development bank in the sector of Regional Rural Banks in India.475 rural banks in the country of which 2126 (91%) are located in remote rural areas.I Haryana State Cooperative Apex Bank Limited The Haryana State Cooperative Apex Bank Ltd. Regional rural banks in India penetrated every corner of the country and extended a helping hand in the growth process of the country. entrepreneurs. The rural banks of SBI are spread in 13 states extending from Kashmir to Karnataka and Himachal Pradesh to North East.e. handicrafts. agricultural labourers. It provides and regulates credit and gives service for the promotion and development of rural sectors mainly agriculture. It also finance rural crafts and other allied rural economic activities to promote integrated rural development.e. rural artisans. SBI has 30 Regional Rural Banks in India known as RRBs. small scale industries. It helps in securing rural prosperity and its connected matters. Rural Banks in those days mainly focused upon the agro sector.

the Indian banking system performed reasonably well in this extraordinarily turbulent year.6 RECENT DEVELOPMENTS IN THE BANKING SECTOR According to CFSA (2009). the CFSA assessed the financial soundness of commercial banks and found that the banking sector has withstood the shocks of the global meltdown well and none of the key financial parameters in September 2008.3 per cent as at end-March 2009 from its level as at end-March 2008. remaining significantly above the stipulated minimum of 9. In contrast to the trend observed till 2007-08.2 per cent at end-March 2009 from 13. The Indian banking system has withstood the pressure of global financial turmoil as reflected in the improvement in the Capital to Risk-Weighted Assets Ratio (CRAR). This has led to some disturbance in the Indian financial markets. The overall CRAR of all SCBs improved to 13. This was however on expected lines given the slowdown of the economy. On the whole. popularly known as SUCO BANK is the first of its kind in rural banks of India.2. 2.0 per cent at end-March 2009 over its level at end-March 2008 indicating no deterioration in efficiency with which banks deployed their assets. The Return on Assets (ROA) also remained unchanged at 1. It has expanded its branch network in a big way to actively participate in the developmental of the rural and semi-urban areas in conformity with the objectives of nationalization.IV United Bank of India United Bank of India (UBI) also plays an important role in regional rural banks. however. earning and profitability pointed to any discernable vulnerability. namely capital ratio.0 per cent. The Return on Equity (ROE) increased to 13. Against this background.0 per cent at end-March 2008.e. Its progress has been abreast of the phase of progressive banking in India especially in rural banks. there has been a reversal in capital flows to India during 2008-09. The impressive story of its inception is interesting and inspiring for all the youth of this country.e. 2. financial position of commercial banks shows that the global financial meltdown has led to a crisis of confidence in the global markets and is not without its echo in the Indian financial system.5. Syndicate Bank was firmly rooted in rural India as rural banking and has a clear vision of future India by understanding the grassroot realities. asset quality. as reflected in the marginal increase of gross NPAs to gross advances ratio. Some slippage was observed in NPAs. The gross Non-Performing Assets (NPA) to gross advances ratio remained unchanged at 2.5.III Sindhanur Urban Souharda Co-operative Bank Sindhanur Urban Souharda Co-operative Bank. thus. particularly in the equity and foreign exchange markets.3 per cent as at .

. technical and cost efficiency of the public sector banks has been much higher than the private and foreign banks in India in the recent years. There has been a consistent decline in NPA ratios over the years. countries like India have a financial system marked by substantial public sector ownership and a different incentive structure for the top executives. to the extent that the public sector banks have to be recapitalized by the government because of the credit losses. Thus. given the well known leads and lags in the relation between credit growth and NPA trends. This was evident from the fact that the NPAs ratio for foreign and new private sector banks increased significantly during 2008-09 as an aftereffect of the crisis. High real lending rates discourage new and credit worthy borrowers from seeking loans from banks. the NPA ratio declined for public v sector banks during this period and was the lowest among all bank groups. Public ownership has proved out to be a source of strength rather than a weakness for the Indian banking system. While discussing the perspectives about the role of public ownership in the banking system. the NPAs represent a source of quasi-fiscal liabilities. indicating increased efficiency with which capital was used by banks. several analysts expect the level of NPAs to increase. this sector is likely to be less innovative and less efficient but would be steadier. banks are well capitalized to cushion the impact of higher NPAs. particularly in the context of restructuring of loans. such as India. The increase in the level of NPAs has a number of negative consequences. the important aspect of public ownership of financial system in India has been the key role played by banks in the pursuit of social and redistributive objectives of developmental finance. rigidities in lending rates that result from the large stock of NPAs dampen the effectiveness of monetary policy.68 While it is not unusual to expect NPAs to increase in a downturn. the latter model having substantial presence of public sector stood the Indian financial system in good stead. In the context of high GDP growth high as well as credit growth in the past five years. capital coverage for NPAs is at prudent level. As against this. Under the former model. The former refers to the model adopted by most of the developed countries. the Anglo-Saxon model and Asian model. while the latter can be seen in some of the developing countries. Secondly. and regulations may not be as stringent as required. which are vital to an emerging market economy like India. high loan loss provisions reduce net profits and tend to put pressure on the lending rates.5 per cent at end-March 2008. namely. There are two models of ownership of banks. the key decisions are taken by the top executives almost independently dictated by short-term considerations. 1. From a macro economic policy point of view. Given the increase in banks’ net worth over the past ten years and steady reduction in their NPAs. there are certain issues that need to be noted. the analytical exercises by the Reserve Bank indicate that allocative.end-March 2009 from 12. The advantage of this sector during times of crisis is the perceived sovereign backing which has been amply clear during the current crisis. contrary to the belief that public ownership weakens the allocative efficiency. with negative consequences for real economic activity. In this model. First. there is likely to be less financial innovation in the form of complex products and less incentives for risk taking. In addition. From the banking system’s point of view. While the former model came under pressure during the recent crisis.

many challenges will arise on their practicality and modes of implementation: • First. Whereas the principles underlying this regulatory overhaul are being increasingly accepted. The process of reforms is noteworthy not only for the turbulence around its path but also for the sheer dimensions of the change achieved from the position where the Indian banking system started. cross border resolution issues will continue to be daunting especially as national regulators will seek to protect domestic depositors and stake holders. while achieving high growth with high stability. the need of the hour is to have financial sector reforms in a recalibrated manner while distilling the lessons of the crisis. Second. minimizing regulatory and tax arbitrage will continue to be a challenge. The Reserve Bank has taken a number of steps and intends to take further steps. Coupled with complex structures and differential tax regimes. Fifth. there is a need to ensure that regulators and supervisors remain firm in their resolve to ensure that there is no buildup of risk in the system and that the principles and framework articulated are adhered to in letter and spirit. the key success of financial sector reforms in India since they were instituted in the early 1990s has been the maintenance of financial stability through a period marked by repeated financial crises across the world. • • • • . this will imply that capital requirement could vary across jurisdiction – parking the transaction in a more favorable jurisdiction cannot be ruled out. several of the countercyclical proposals are dependent on the assessment of economic and banking conditions in national jurisdictions which will determine the capital buffer requirements – these will obviously vary from one jurisdiction to another as cycles would also vary. The policy challenge is to continue to ensure financial stability in India during this period of international financial turbulence. banking. Fourth. Way forward. Issues such as putting in place prudential filters for not distributing unrealized gains would also arise. With banks operating across the globe. securities and insurance regulators to work in close coordination with full exchange of information and frequent interaction to assess the systemic risks at any point of time. Third. The agenda that is being developed for strengthening of financial sector regulation and supervision is ambitious.In retrospect. Contentious issues are expected to arise both at national and at the international levels on regulatory aspects. the interconnectedness of the institutions and markets requires central banks. convergence toward international accounting standards will be a challenge in terms of not only bringing in the changes in standards that are appropriate for the country but also for putting in place systems and capabilities to facilitate convergence.

The Official Directors are appointed by the government and include Governor and Deputy Governors of RBI. 1935 in accordance with the provisions of the Reserve Bank of India Act. These include ten Directors from various fields and one government official. The directors are nominated / appointed for a period of four years. 1934. Non-Official Directors are nominated by the government. the challenge will be to manage the impact of this process of global stabilization. Main Functions of RBI . Finally. while there are discernible signs of recovery in the global financial markets. As per the Reserve Bank of India Act there are Official Directors and Non-Official Directors. Bharatiya Reserve Bank Note Mudran Private Limited (BRBNMPL). • • \ 2. The functions of Reserve Bank are governed by central board of directors. The board is appointed by the Government of India. The Reserve Bank of India also has three fully owned subsidiaries: National Housing Bank (NHB). For the emerging market economies such as ours. Though initially RBI was privately owned. there are four other Non-Official Directors. Kolkata. Deposit Insurance and Credit Guarantee Corporation of India (DICGC).• Sixth.7 RESERVE BANK OF INDIA The Reserve Bank of India was established on April 1. Chennai and New Delhi. Its central office is in Mumbai where the Governor of RBI sits. the real test of the resilience of the financial system will be its performance through the exit process. an additional challenge for the EMEs is that they are exposed to the volatile international capital flows necessitating suitable regulatory policies depending on the macro economic conditions for ensuring financial stability. Apart from these. one each from four local boards in Mumbai. for countries like India. There cannot be more than four Deputy Governors. RBI has 22 regional offices and most of them are located in state capitals. the advantages of coming in late is that while introducing new products and instruments they can have the benefit of the global experience so that the pitfalls can be avoided while reaping the gains of innovation. it was nationalized in 1949. Seventh.

Reserve Bank of India is the main monetary authority of the country. Maintains banking accounts of all scheduled banks. 5. RBI is the regulator and supervisor of the financial system in the country. Issues and exchanges or destroys currency and coins not fit for circulation CHAPTER-3  COMPANY PROFILE  ORGANIZATION STRUCTURE  BRANCH PROFILE . 2. It manages the foreign exchange of the country.1. It formulates. 3. 4. also acts as their banker. implements and monitors the monetary policy and thereby plays a key role in maintaining price stability and ensuring adequate flow of credit to productive sectors. It prescribes broad parameters of banking operations within which the country's banking and financial system functions. 6. Performs merchant banking function for the central and the state governments.

2 HERITAGE . economists.3. The bank looks forward to the future with excitement and a commitment to bring greater benefits to you. Global banking has changed rapidly and UCO Bank has worked hard to adapt to these changes. Infrastructure Sector etc. businessmen. UCO Bank. Industry. with years of dedicated service to the Nation through active financial participation in all segments of the economy . Service Sector. is keeping pace with the changing environment. management experts.Agriculture. Trade & Commerce. Its Board of Directors consists of government representatives from the Government of India and Reserve Bank of India as well as eminent professionals like accountants. UCO Bank has marched into the 21st Century matched with dynamism and growth! 3.1 ABOUT UCO BANK UCO Bank is a commercial bank founded in 1943. The bank is a Government of India Undertaking. With a countrywide network of more than 2000 service units which includes specialized and computerized branches in India and overseas. etc..

after the historic "Quit India" movement in 1942. Soon this nascent idea came into reality and. the Bank was nationalized by the Government of India on the 19th July 1969 whereupon 100 per cent ownership was taken over by the government in UNITED COMMERCIAL BANK. and the bank achieved several unique distinctions in Priority Sector lending and other social upliftment activities. This historic event brought about a sea-change in the entire fabric of the bank's thinking and activities. admired and sought-after world class financial institution and to be the most preferred destination for every customer and investor and a place of pride for its employees 3. over the years. This resulted into more functional specialization. Side by side. whole hearted commitment into the government's poverty alleviation programs continued and the convenorship of State Level Bankers' Committee (SLBC) was entrusted on the Bank for Orissa and Himachal Pradesh in 1983. however. and this all-India character of the Bank has been assiduously maintained till this day not only in the composition of its Board but also in the geographical spread of its 1700 odd branches in the country as well as in its overseas centers in Singapore and Hong Kong. Today.3 OUR VISION STATEMENT To emerge as the most trusted. The year 1985 opened a new chapter for the Bank as the name of the Bank changed to UCO BANK by an Act of Parliament. Branch expansion started at a fast pace. with all its inner strengths. the doyen of Indian Industrial renaissance. G. Having traversed periods of expansion and consolidation.D Birla. on the 6th of January 1943. The United Commercial Bank Ltd. The customer friendly and socially committed character. decentralization of administration and emphasis on development of personnel skill and attitude. been regarded as one of the well known and vibrant banks in the country. The very first Board of Directors was represented by eminent personalities of the country drawn from all walks of life.4 OUR MISSION STATEMENT . Truly. the Bank undertook an exercise in organizational restructuring in the year 1972.The idea of a truly Indian bank was first conceived of by Mr. commensurate with the government's socio-political approach of mass banking as against class banking hitherto practiced. remained even with this change in name which has. UCO Bank has come a long way to symbolize friendliness for customers and efficiency in its banking business. was born with its Registered and Head Office at Kolkata. UCO Bank HONOURS YOUR TRUST. particularly in rural areas. 3. To keep pace with the developing scenario and expansion of business.

Goel . Service Sector.6 UCO BANK Type Founded Public Kolkata. Meghalaya. UCO Bank has marched into the 21st Century matched with dynamism and growth! 3. Pondicherry. Infrastructure Sector etc. through upgradation of skills of staff and their effective participation making use of state-of-the-art technology. Punjab. Bihar. Global banking has changed rapidly and UCO Bank has worked hard to adapt to these changes.Executive Director . it has two branches in Singapore and Hong Kong. UCO bank has a total of 414 ATMs across the states of Andhra Pradesh. UCO Bank.K. Tripura. Karnataka. Haryana. New Delhi. Dhingra . India Headquarters Key people S. fulfilling socio-economic obligations. Tamil Nadu. Kerala. with years of dedicated service to the Nation through active financial participation in all segments of the economy . Trade & Commerce. India Kolkata. excellence in customer service.. Assam. The bank looks forward to the future with excitement and a commitment to bring greater benefits to you.To be a Top-class Bank to achieve sustained growth of business and profitability. Chhattisgarh. Sikkim.Chairman & Managing Director V. is keeping pace with the changing environment. Uttar Pradesh and West Bengal. Madhya Pradesh. Jharkhand. Nagaland.Agriculture. With a countrywide network of more than 2000 service units which includes specialized and computerized branches in India and overseas. Goa Gujarat. Himachal Pradesh.5 BRANCHES & ATM SERVICES Headquartered in Kolkata. 3. Overseas. UCO Bank has about 35 Regional Offices spread all over India. Orissa. Chandigarh.K. Maharashtra. Industry. Rajasthan.

The Bank has taken several steps towards improving recovery and reduction in NPA. in order to improve the financial position.M Sarani Kolkata .ucobank. 2007 .Executive Director A. Mittal – Director Industry Banking (consumer.The Company was incorporated on 15th of February. • . Sinha – Director J.During the year the Bank opened 11 branches in urban and metropolitan areas to take the total number of branches in India to 1783 at the end of the year. containment of operating expenses etc.Director P.7 EVENTS • • • 1974 . M. Mittal .UCO Bank names S K Goel as CMD. Shandil – Director Nirmal Khatri . L. lowering of the cost of funds.com 3.A new scheme under the name of FCNR (Banks) Scheme was introduced with the exchange risk being borne by the banks.P.B.T. boosting noninterest income. 1994 .700001 Website: www. corporate and investment) Head Office UCO Bank Head Office 10 B. Bhattacharya – Director N. C. 1992 .

Retail and Wholesale trade in various types of commodities (not services) excluding those items which are specifically prohibited/restricted by the Bank.e UCO CASH This is a Personal Loan scheme to meet the domestic needs like marriage.8. traveling and other social obligations.8.e.d EDUCATION LOAN The scheme extends a helping hand to meritorious students desirous of pursuing basic/higher/professional/technical education either in India or abroad.c UCO TRADER It is a loan for financing working capital and Term Loan needs of Retail and Wholesale trading activities other than Export.8. 3. 3.3. 3.b UCO CAR This is an easy finance scheme for purchase of a new car as well as second hand vehicle not older than 5 years and economic life of a vehicle should be taken as 8 (eight) years from the date of manufacture of the vehicle. medical. are financed through this scheme. Fund based Advance is granted by way of Cash Credit against stock as well as Book debt and Term Loan for acquisition of fixed assets to run the trade and business. The scheme has been carefully tailored to suit your requirements and match your capacity.a UCO SHELTER This housing finance scheme brings to you an excellent opportunity to have your own house or flat. 3.8. i. The reasonable rate of interest that you pay will be calculated on reducing balance.8 PRODUCTS 3.8. . you do not have to pay interest on the loan installments actually repaid from the date of such repayment. The parents will become co-borrowers with their dependant (student) if the latter applies for educational loan.

employees of schools./State Govt. 3. 3. Securities and Relief Bonds.g UCO MORTGAGE Under the scheme credit facilities are considered upto 60% value of the property located in metro/urban/semi-urban centers to meet financial needs of government employees. in line with the broad objective of the Government towards women's empowerment. reputed corporate business enterprises. undertaking repairs & renovation of the property. colleges. Loans are also sanctioned against Life Insurance Policies of Life Insurance Corporation of India and bonds/debentures issued by specific Public Financial Institutions. 3. Kisan Vikas Patra. for productive purposes e. PSU.8.k UCO SHOPPER .h UCO SECURITIES Under the scheme credit facilities are extended to borrowers against financial securities issued by Central Govt.i UCO REAL ESTATE Under the scheme advances are extended to the Promoters/Developers of real estate who should be well established and experienced in their line of activities at least for a period of three years. 3. etc./RBI in the form of National Savings Certificates. Govt.e.8.f UCO RENT This is a loan against the security of future receivables i.8. 3. augmenting earnings like investing in securities.8. Cooperative Societies are not eligible to be borrowers under the Scheme. assignment of future rent receivable.3.8.8.j UCO NARI SHAKTI This Scheme is aimed at providing financial assistance to salaried women. professionals and businessmen with regular source of income and filing IT return against mortgage of their immovable property with clear Title.g.

25. named also to commemorate our Bank's Diamond Jubilee Year. War widows drawing family Pension are also eligible. Computer. Refrigerator. this new scheme with liberalized terms and conditions. 3. Security would be in the form of mortgage of unencumbered immovable properties and/or lien on movable assets/liquid collaterals such as NSC/KVP/LIP/Bonds.and maximum Rs.8. 5. under Reverse Mortgage a Senior Citizen. can avail of a monthly stream of Income against the mortgage of his/her property while remaining the owner and occupying the house throughout his/her lifetime.000/.00 lacs with no requirement for any margin or a guarantor. . etc. allied activities as well as for personal purposes.o Bank introduces UCO Reverse Mortgage Loan Scheme for Senior Citizens. Minimum quantum of the loan is Rs.8.l UCO HIRAK JAYANTI KRISHI YOJANA (UHJKY) In order to meet the long term credit needs of the farming community in rural areas for agriculture. Borrower has to pay a small service charge @ 0.The scheme is meant for persons less than 60 years of age and engaged in farm activities. 3.m UCO PENSIONER Short Term loan is extended through this scheme to Pensioners who receive pension through our Branches. Consumer durables like TV.It is a Consumer Loan scheme for Salaried Persons.REVERSE MORTGAGE LOAN MORTGAGE LOAN SCHEME FOR SENIOR CITIZEN 3.8.5% of the loan amount. without repayment or servicing of the loan. and Twowheelers can be purchased through this scheme. has been introduced throughout the country . Borrowers under this scheme have to repay the loan in 5 yearly/10 half yearly installments after an initial moratorium period.8.n UCO EARNEST MONEY DEPOSIT LOAN SCHEME Loan scheme for financing for Earnest Money Deposit for booking housing plots/flats offered by various Urban/Metropolitan Development Authorities & Housing Boards UCO SWABHIMAN . owning a house/flat. Professionals and Businessmen for purchase of a whole range of consumer durables and two-wheelers. 3. Air-conditioner or any other item acceptable to the Bank.

p MONEY BACK RECURRING DEPOSITS (MAKES YOUR DREAMS COME TRUE) It is a long term Recurring Deposit scheme with intermediate withdrawal facility. the surplus fund is invested in short term deposits for 46 days. 3. By making use of your idle money. as desired by you.s LAKSHMI YOJANA (A HOPE FOR YOUR FUTURE) It is a long term Recurring Deposit scheme with variable monthly deposits.q FRIEND-IN-NEED SCHEME (A FIXED DEPOSIT WITH CHEQUE FACILITY) This Term Deposit earns high interest and simultaneously offers overdraft facility through a Current Account.8.3. The drawals together with interest can be paid back in instalments. This unique combination of fixed deposit with cheque facility comes as your true friend in meeting your emergency needs. 3. You will be having two options : • You may opt to have one intermediate withdrawal at the end of 60 months and get the final payment at the end of 120 months. and the maturity period is after 120 months. the scheme provides you an option to meet both your short term and long term requirements. The periodical transactions can be automatic as per your instructions. or You may withdraw immediately at the end of 36 months and 72 months. 3. and get the maturity amount at the end of 120 months.r TWO-WAY DEPOSIT SCHEME (MAKES YOUR IDLE MONEY GROW) This deposit scheme is devised to invest the surplus fund that you may keep in your Savings Bank or Current Account. The deposit earns a high interest while retaining its liquidity. The interest on .8. Under the scheme. and then is either paid back or renewed. without affecting the growth of the deposit.8. Cheque facility is available for withdrawal of money limited to 90% of the deposit.8. Deposits are to be made every month. • The scheme meets your long term monetary requirements.

from Senior Citizens of age 60 years and above. The Yojana is best suited to shaping a bright future for your child. The scheme meets the need for a safe long term investment. 3.5 per cent over the normal rate of interest will be payable on maturity periods of one year and above. regardless of size of deposits. and is credited to the account every half year.8. 3. an additional interest of 0. Thus the scheme generates a large sum of money at the time of maturity. This will be applicable for fresh term deposits and renewals. 3. 3. who are at the bottom of the pyramid.w UCO No-frills Savings Bank Account In order to include a larger cross-section of the population.8.v SPECIAL DEPOSIT SCHEME FOR SENIOR CITIZEN For all term deposits (domestic/NRE). to avail of the banking services who could not avail of the same on account of some restrictive clauses.deposit is calculated as the minimum monthly balance between the 10th and the last day of a month.t KUBER YOJANA (A SAFE DEPOSIT TO INCREASE YOUR WEALTH) A long term fixed deposit scheme. minimum initial deposit for opening of the account which is difficult to arrange by such population. maintenance of minimum balance failing which charges are levied etc. The amount deposited will attract interest as applicable to Term Deposits.5000/-. Interest is compounded every quarter by way of reinvestment. namely. Upto 90% loan facility on deposit amount is available at a nominal interest. Withdrawal is allowed in multiples of Rs.u FLEXIBLE FIXED DEPOSIT SCHEME (A FIXED DEPOSIT WHOLLY AT YOUR BENEFIT) Deposits are accepted under reinvestment plan with the difference that a part of the deposit can be prematurely encashed without affecting the remaining portion that continues to earn interest at the agreed rate.. it .8. It is indeed a matchless scheme to take care of your emergency needs.8.

the minimum initial balance should be Rs. Zonal Offices and Branches.9 ORGANIZATIONAL STRUCTURE The Bank has three tier organizational structures . The salient features of the scheme so designed are as follows : 1. 2.10 ORGANIZATIONAL CHART Fig: 1 the organizational chart of the UCO Bank . The account can be opened with a minimum initial deposit of Rs. In case of cheque facility being availed by the account holder.The scheme is introduced in all metro. the Bank has 35 Zonal Offices. The Organizational Chart is given below: 3. The eligibility for opening "No-frills" Account will be the same as that for opening an ordinary Savings Bank Account.5/-. 1881 branches . there are 13 Service branches and one Integrated Treasury Management Branch at Mumbai. Opening of Account under the scheme . At present. In addition. In case of need. 3. Persons above the age 10 and below 18 years and are able to read and write may also open a minor no-frills savings account in his own name or jointly with any other person. urban. semi-urban and rural categories of branches without making any differentiation with regard to amounts of initial deposit and maintenance of minimum balance as prevailing at present for opening of Savings Bank Accounts.1877 in India and 4 in Overseas Centers (2 each in Singapore and Hong Kong) with one Representative Office in Malaysia & China. the balance in the account may be allowed to go even below the minimum initial deposit and the account may continue even with "Zero" balance.Corporate.250/-.has been felt expedient to introduce a new Savings Deposit Scheme titled "UCO No-frills Savings Bank Account".

1976. Award staff employees are governed by the industry level settlement (Bipartite Settlements) entered into by Indian Banks’ Association with the recognized employee organizations. The rights and duties of the Officers and employees are governed by UCO BANK (OFFICERS’) SERVICE REGULATIONS.Source: The website of UCO Bank 3.11 Powers and Duties of its Officers and Employees: The Bank has well laid down system of delegation of lending and non-lending powers to be exercised by the officers and executives of the Bank depending upon their scale of pay. 1979 and UCO BANK Officer Employees (Conduct) Regulations. .

3. Loans are sanctioned keeping a holistic view about the proposal. contracts with third parties. They are all meant for internal circulation only. These are all private information and of commercial value and cannot be shared with public. codified circulars.3. The information relating to sanctioning of loans. The Bank has a ‘Deposit Policy’ and a ‘Fair Practice Code’ for Bankers.c Statement of the categories of documents that are held by the Bank: These are mainly registers of shareholders/records of the proceedings of Annual General Meetings.b Rules.d Particulars of any arrangement that exists for consultation with. etc.. Regulations.11. 3. advances and other are available on the Banks website and also at branches of the Bank.a Norms set by the Bank for discharge of its functions: For discharge of its functions. 3.11. However. it should be noted that whether to sanction a loan or not is in the absolute discretion of the concerned sanctioning authority of the Bank and such discretion is exercised. documents executed by customers/borrowers/ guarantors. The Head office decides the interest rates to be offered by the Bank for the term deposits which are displayed in the branches. Details of all products viz. after taking into consideration the relevant facts and circumstances of each case. Instructions. the members of the public in relation to the formulation of its policy or implementation thereof: . or representation by.11. Board meetings and various committee meetings. Manual and Records held by the Bank: The Bank has issued Manual of Instructions on different subjects. the Bank is guided by the norms set out by the Government of India and the Reserve Bank of India. deposits. scheme for delegation of powers.11. particulars of loan account and any related information is exempted from disclosure. guidelines on documentation and the periodical circulars used by the employees for discharging various functions.

3. inside the NMDC campus. The branch is added with senior manager being a large branch. The present level of business is 50 crores with a deposit of 30 crores in advance. BACHELI UCO Bailadila branch was opened on 7/7/80. Decisions are taken according to the prescribed powers of delegation. It is a small township developed by NMDC with a population of 25000. Further the Bank’s Quarterly / half yearly / annual results are published in leading newspapers as well as putting the same on Bank’s web site for information of public as well as the shareholders which would give an idea of the policies of the bank and implementation thereof. Non Performing Asset means an asset or account of borrower. For implementation of such policies there is a well laid down hierarchical system. in accordance with the directions or guidelines relating to asset classification issued by RBI. The branch is . All officers and employees of the Bank have to follow the prescribed rules and procedures as laid down in ‘The Manual of Instructions’ and circulars issued from time to time. The Bank functions under the overall supervision and control of Board of Directors of the Bank to formulate the policies pertaining to the Bank’s functioning. On an average the growth of business is 15% to 16% per year. All loan proposals sanctioned are reported to the higher authority to ensure clear accountability. which has been classified by a bank or financial institution as sub-standard.12 PROFILE OF UCO BANK.5 crores per year. The branch has staff strength of nine including four officer’s staff. 3.11.As per the present arrangement. doubtful or loss asset. The branch is earning a net profit of more than 1.C business of over 80 crores to NMDC which is a public sector Navratna Company earning a profit of more than 2000 crores per year.e Procedures followed in the decision making process: The UCO bank has a well-defined system for decision making. the shareholders can raise issues concerning policies in Annual General Meetings. The branch is having a L.

Most of the accounts in the branch are that of the governmental employees.a ACHIEVEMENTS • This branch is the 2nd bank to provide banking service to the region which mostly consists of tribal people. Having 50 crores business on an average per each branch. Anthyodaya (SC/ST) and other programs such as Prime Minister’s Rozgar Yojana (PMRY). This will help the government employees as they can do the business in the bank in the lunch break or after they duty time in the evening. In the deposit section. The region has a strong presence of tribal people who never had a banking experience. The NMDC employees are assisted in the personal loans. In the district of Dandewada there were two branches. • Largest provider of loans to the region as it loan regulations are easier than compared to other banks. The branch is also trying to be different by changing its operation time from ordinary timing duration to 1.00PM. one in Chindugade and the other in Bacheli. The NPA percentage is 1. The bank is doing a rigorous marketing among the tribal people to bring them to the bank.00PM to 8.taking all the government programs and anti poverty such as Swaranjayanthi Gram swarozgar Yojana (SGSY).5% which is below the national average of 2%. The Bacheli branch represents coordination in district level bankers committee. The bank also uses the governmental program to attract the customers. Most of the income of the branch comes from demand draft selling. anganwadi workers. SwarnJayanti Shahari Rozgar Yojana (SJSRY). .12. 3. bills and billing discounting. Apollo hospital and NMDC. car loans. the branch is having 60% in current and savings deposits. The branch is having more than 900 salary accounts which include railway employees. Though core banking facility has not yet been started but the infrastructure for making a core banking ATM has already done and it will start very soon. Jawahar Gram Samridhi Yojana (JGSY). UCO bank Bacheli branch comes under Raipur zonal office which is one of the best zones in India. education loans and house loans. Hence this region is considered to be an untapped market.

5% which is below the national average of 2%. Branch Date of establishment No of employees Principal activity Senior manager manager Bailadila. Jawahar Gram Samridhi Yojana (JGSY). SwarnJayanti Shahari Rozgar Yojana (SJSRY). Anthyodaya (SC/ST) and other programs such as Prime Minister’s Rozgar Yojana (PMRY). Chhattisgarh 1980 9 Banking Shailender Singh Nagarajula.V.• The NPA percentage is 1.S Jagadish Vohra Main Competitor SBI CHAPTER-4 . • The branch is taking all the government programs and anti poverty such as Swaranjayanthi Gram swarozgar Yojana (SGSY).

 FUNCTIONAL ANALYSIS OF DEPARTMENTS The UCO Bank. these sections are described below: . Bacheli branch has different sections.

4. All the transactions are documented using computer and a printout is taken of these transactions at the end of every business day so as to keep a manual document of the transactions. All the loans above 20000 Rs are to be approved by the zonal office.4 LOAN DEPARTMENT The bank has assigned a separate department for the loan purpose so that the customer who requires the loan can be better served. Each transaction in the bank requires a lot of documentation as a result a separate department has been assigned for this.1 FRONT OFFICE The front office is the section where the customers are being helped with they queries. 4. This is also done by this department. as a result the customer can be guided properly in the bank.4. Any information regarding the bank or the procedures of any activity with respect to the bank can be obtained from the front office. The procedure for providing loan is a long process which involves a lot of documentation and checking of the securities provided for the loan. The employees assigned to this department are only allowed to provide or receive the cash from the customer. Also the bank keeps different forms for different banking activities in the front office.2 CASH DEPT All the activities related to the cash are done in this department. This will ensure that the customer will first go to the front office. They are responsible for all the cash transactions that happen in the bank. Hence the bank separated the activities of loan with other activities of the bank. The branch has a very responsive and humble employee to assist the customers at any time.3 DOCUMENTATION DEPT This department is involved in the documentation of all the transactions occurring in the bank. . Hence the customers has to be updated about they loan. 4.

The financial institution however is given security a lien on the title to the house until the mortgage is paid in full. the bank has the legal right to repossess the house and sell it.4. In this agreement. 4. a car or a property) as collateral for the loan. If the borrower defaults on the loan.5 DIFFERENT TYPES OF LOANS 4.a SECURED LOAN A secured loan is a loan in which the borrower pledges some assets (e. to recover sum owing to it.5. A mortgage loan is a very common type of debt instrument used by many individuals to purchase housing. These may be available from financial institution under many different guises or marketing packages:  Credit card debt  Personal loans  Bank overdrafts  Credit facility or line of credit . the money is used to purchase the property.5.g.b UNSECURED LOAN Unsecured loans are monetary loans that are not secured against the borrowers assets.

CHAPTER – 5  SWOT ANALYSIS .

00PM to 8. which help it to extend the relationship with existing customer. 3. UCO Bank has earned a reputation in the market for extending quality services to the market. The branch provides all the products falling under the UCO Bank.b WEAKNESSES The absence of certain strengths may be viewed as a weakness . The branch maintains a very low NPA of 1. In the region. The working hour of the UCO Bank in Bailadila is from 1. This is very beneficial to the government employees as they can come in the evening or at the lunch break for doing business with the bank. The SWOT analysis provides information that is helpful in matching the firm's resources and capabilities to the competitive environment in which it operates 5.1. 5. the NMDC and the Indian Railways have they salary account with UCO Bank 6. The branch has a high share in the region as there are only two banks in the region. 7. Environmental factors internal to the firm usually can be classified as strengths (S) or weaknesses (W). UCO Bank is having an edge over other banks in case of Salary Account.a STRENGTHS 1. 5.1 SWOT ANALYSIS A scan of the internal and external environment is an important part of the strategic planning process. 2. the Apollo hospital. Such an analysis of the strategic environment is referred to as a SWOT analysis.00PM.1. As it is a government undertaking the people trusts the bank.5.5% 4. Even though the branch is in a remote place it uses the latest technology which helps the branch to provide better service to the customer. and those external to the firm can be classified as opportunities (O) or threats (T).

Dissatisfaction from the service of other bank can bring the customers to the bank 2. hence this a untapped market with lot of opportunity. . The branch is working in one of the rural region of India. Loosening of regulations 6.1. Arrival of new technologies 5.c OPPORTUNITIES The external environmental analysis may reveal certain new opportunities for profit and growth. Large numbers of MNC banks are mushrooming in the Indian market especially in rural sector due to the friendly policies adopted by the government. 2.d THREATS Changes in the external environmental also may present threats to UCO Bank’s growth 1. 4.1. The region has a lot of tribal people who do not have an account in any bank. It is extremely difficult to raise funds in the rural region 3. 3. This can increase the level of competition and prove a potential threat for the market share of UCO bank in the region. hence it is extremely difficult to bring people to the bank. The employees will reluctant to work in a rural area as a result they might not do the work with the full effort. 5. It is extremely difficult to get back the loans that have been provided to those customers who are not government employees as other are tribal people who mostly depend on the forest. Assistance from the government 5.1. 1. There are only two banks in the region hence the bank can compete easily 4.

hence it is always a thread. this can prove to be a serious problem as far as the market reputation of the bank is concerned and can be a major threat in future business acquisition. The region has a heavy presence of pawn brokers and other money lenders who easily provide the loans to the people. 4. The poor customer support/ service is creating a lot of dissatisfaction among the customers. CHAPTER-6  FINDINGS. With other PSU banks like SBI has become a major competitor among the banks and government giving them a free hand to do so.2. CONCLUSION & SUGGESTIONS . 3.

The region has a lot of tribal people who do not have an account in any bank. .6. The branch is facing less competition as there is only one competitor 2. hence this is an untapped market with lot of opportunity.1 FINDINGS After doing the organizational study the following are the findings 1.

The branch maintains a very low NPA 5. the bank has effectively used all the technology in the region. The working hour of the UCO Bank in Bailadila is from 1. The branch has initiated a lot of facilities for the NMDC and Railway employees like the instant availability of loan up to Rs.00PM to 8.25000 need sanction from the respective zonal office. Most of the customers in the branch are government employees. This is very beneficial to the government employees as they can come in the evening or at the lunch break for doing business with the bank. . 8. 9. Loan is easily available from the money lenders hence people go to the money lender than to the banks. The loan is provided in a time limit as most loans above the Rs.3. 10. Even though the branch is in a rural place. The branch thrives to implement all the governmental programs for the upbringing of the rural people 6. Also most of the customer and potential customers are illiterate and are in the category of labors 4.40000. hence the bank does not have to worry about the recovery of loans 7.00PM.

Bacheli was evident from the fact that the bank makes a business of 50 crores. The government employee makes most of the customers of the bank. It is assumed that the finding and suggestions in the report will help the management in the UCO Bank. It is extremely difficult to raise funds in the rural region. It also maintains the NPA at 1. The bank’s opportunities are the dissatisfaction from the service of other bank that can bring the customers to the bank. The UCO Bank. The performance of the UCO Bank.2 CONCLUSION UCO bank is one of the oldest and successful banks in India. The bank has a well organizational structure and its officer’s Manual helps the employees to understand the company rules and regulations. Also the presence of moneylender makes things more difficult. Bacheli. The bank with its different products is successfully surviving in the market. The treats that the branch faces are that the large numbers of MNC banks are mushrooming in the Indian market especially in rural sector due to the friendly policies adopted by the government. It also has the lowest NPA in the industry.6. hence it is extremely difficult to bring people to the bank. The region also has a heavy presence of pawn brokers and other money lenders who easily provide the loans to the people and who can become a serious competitor for the branch. Bacheli has only one competitor but the business is extremely difficult as the branch is in rural sector.The UCO Bank. The branch’s weakness is working in one of the rural region of India. . Bacheli to improve the business in the branch. as a result the bank has initiated a lot of programs for providing them easy access to the bank. The SWOT analysis done at UCO Bank. hence this a untapped market with lot of opportunity. The region has a lot of tribal people who do not have an account in any bank. The primary objective of this study was to analyze the different departments and functioning of these departments in the UCO Bank. Bacheli reveals that the bank has only one competitor and a huge untapped market. This can increase the level of competition and prove a potential threat for the market share of UCO bank in the region. The UCO branch in Bacheli has a business of 50 crores. Bacheli has 4 departments and the functions of these departments are mentioned in the report.5% which is below the national average of 2%.

The branch contains accounts mostly of government employees.25000 needs zonal office’s sanction. following are the suggestions to improve the business in the branch 1. The branch has an easy procedure for providing loan but the time for providing the loan is high as every loan above Rs. hence the branch should initiate many facilities for them so that they stick with the bank and also bring other customers to the bank.6. 3. The branch can establish an ATM in the region which will help the customers to get the money without visiting the bank. Since most people in the region are of tribal category they need to be taught about the benefits of a bank. 2. More resources can be allocated to the Bacheli branch as there exist a huge untapped market . Bacheli (situated in Chhattisgarh). The branch can initiate a camp to educate the people in the region about the government programs available to them and through this they can increase the branch’s customers. The branch has to do an aggressive as well as awareness marketing to bring more customers from the traditional moneylender. 6.3 SUGGESTIONS After doing the organizational study in the UCO Bank. 4. 5. hence the bank should try to provide the loan a in small duration.

aspx 7.nic. 2. www. Kristin Lovelace (p524--p549) WEBLIOGRAPHY 3.ucobank.in (2nd July) (2nd July) .org/wiki/Banking_in_India 5. 2009. http://www.org.html (2nd July) 6.finmin.2009) (29th June) 4.in/home. Eugene Lovelace.rbi.htm (29th June.wikipedia. http://www.com/default. UCO Bank officer’s Manuel.com/finance/bank/nationalised-banks/indian-bank.iloveindia. http://en. Research Methods and statistics.BIBLIOGRAPHY 1. http://www.Harcourt publications: Nancy Furlong.

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