PROJECT REPORT

ON

“ANALYSIS OF LOANS PROVIDED BY UCO BANK”

IN PARTIAL FULFILLMENT OF THE REQUIREMENT OF

BACHELOR OF MANAGEMENT STUDIES

CONDUCTED BY

UNIVERSITY OF MUMBAI
THROUGH

KARAMAVEER BHAURAO PATIL COLLEGE

VASHI NAVI MUMBAI- 400 703,

UNDER THE GUIDANCE OF

MS. NEHA KHANDARE

- SUBMITTED BY -
HARSH BEHAL

BACHELOR OF MANAGEMENT STUDIES/FINANCE

BATCH: 2017-2018

1
 ACKNOWLEDGMENT

I would take this opportunity to thank the University of Mumbai for

providing me an opportunity to study on a project on Banking. This has been
a huge learning experience for me.

With great pleasure I take this opportunity to acknowledge people who have
made this project work possible.

First of all i would sincerely like to express my gratitude towards my project

guide Prof:Neha Khandare for having shown so much flexibility, guidance as
well as supporting me in all possible ways whenever I need help. I am thankful
for the motivation provided by my project guide throughout and helped me to
understand the topic in a very effective and easy manner.

I would like to thank Principal S.V.Shivankar the coordinator C.D.Bhosale

and Head of the Department Prof.Latika Das of BMS for her indirect support
throughout.

I would also like to thank, other teaching faculties of the college, my

colleagues, library staff and other people for providing their help as per
requirement to complete this project.

I acknowledge my indebtedness and express my great appreciation to all

people behind this work

(HARSH BEHAL)

2
 DECLARATION

I HARSH BEHAL student of KARMAVEER BHAURAO

PATIL COLLEGE, studying in B.M.S. (Semester V) hereby declare that I
have completed this project report on “ANALYSIS OF LOANS
PROVIDED BY UCO BANK”And has not been submitted to any other
university or institute of award of any degree. Diploma etc.The information
is submitted to me is true and original to the best of my knowledge.

Date. (Name& Sign of student)

Place -Vashi. Navi Mumbai. (Harsh Behal)

3
 RAYAT SHIKSHAN SANSTHA’S
KARMAVEER BHAURAO PATIL COLLEGE
VASHI NAVI MUMBAI 400703

CERTIFICATE

This is to certify that HARSH BEHAL, student of KARMAVEER

BHAURAO PATIL COLLEGE, studying in B.M.S. Semester v has
successfully completed the project work titled “ANALYSIS OF LOANS
PROVIDED BY UCO BANK”under the guide of PROF. NEHA
KHANDARE in partial fulfillment of the requirement for Master in

Management Studies as prescribed by Mumbai University in academic year

2017 - 2018

Project Guide Coordinator

--------------------- --------------------

Principal External Examiner

--------------------- --------------------

4
CHAPTER PARTICULARS PAGE NO.

1. INTRODUCTION TO THE STUDY:

1.1-INTRODUCTION
1.2-OBJECTIVES
1.3- SCOPE OF THE STUDY
1.4- RESEARCH METHODOLOGY
1.5-Types of Research
2. PROFILE OF THE COMPANY:
2.1-INTRODUCTION TO UCO BANK
2.2- DEPARTMENTS OF UCO AND ITS
ACTIVITIES
2.3- DEPARTMENTS
2.4- ACTIVITIES OF THE DEPARTMENTS

3. CONCEPTUAL FRAMEWORK:
3.1- COST OF CAPITAL
3.2- PROJECT FINANCING
3.3- FINANCIAL PERFORMANCE OF UCO
3.4- TYPES OF ACCOUNT
3.5-TYPES OF SERVICES

4. DATA ANALYSIS & DATA

INTERPRETATION:

5. CONCLUSION:

BIBLIOGRAPHY
ANNEXURE
QUESTIONNAIRE

5
 CHAPTER 1

INTRODUCTION

1.1 INTRODUCTION
Retail banking in India has fast emerged as one of the major drivers of the overall banking
industry and has witnessed enormous growth in the recent past. The Retail Banking Report
encompasses extensive study & analysis of this rapidly growing sector. It primarily covers
analysis of the present status, current trends, major issues & challenges in the growth of the
retail banking sector. This report helps in Banks, financial institutions, MNC Banks,
academicians, consultants and researchers to have a better understanding of the booming
opportunities in retail banking in India.

MEANING OF RETAIL

Retail means sale of goods in small quantities, it is concerned with buying of goods in small
quantities from the wholesaler and selling them in small quantities to the ultimate consumers as per
their requirements. The person engaged in this trade is called the “retailer”. He acts as a link
between the wholesaler and the customers. In retail trade goods are sold to the ultimate consumers
for personal use and for the use of the business in small quantities only. The retailer does not
specialize in a particular line or a particular product. Rather he maintains a large variety of goods.
Generally, sales are limited to a local and on a small scale.

MEANING OF BANKING

6
Banking has come to occupy a pivotal position in a nation’s economy. According to the modern
concept, banking is a business which not only deals with borrowings, lending and remittance of
funds, but also an important instrument for fostering economic growth.

The Banking Regulation Act 1949 defines the term banking as “the accepting for the
purpose of lending or investment of deposits of money from the public or otherwise and withdraw
able by cheque, draft, order or otherwise.” Thus, the essentials of banking are:

(1) There should be acceptance of deposited.

(2) Deposits should be from the public.
(3) Deposits should be repayable on demand or expiry of a term or after specified periods.
(4) The purpose of deposits should be lending or investment.

“Bank” is an institution which deals in money and credit. It buys money from depositors and
sells to the borrowers. It is body of persons whether incorporated or not who carry on the
business of banking. A bank may be defined as a corporation or person which collects deposits
from the public, repayable on demand and which supplies and facilitates all kinds of exchanges.

RETAIL BANKING

Retail banking means mobilizing deposit form individuals and providing loan facilities to
them in the form of home loans, auto loans, credit cards, etc, is becoming popular. This used to be
considered by the banks as a tough proposition because of the volume of operations involved. But
during the last couple of years or so, banks seem to have realized that the only sustainable way to
increase deposits is to look at small and middle class consumer retail deposit and not the price
sensitive corporate depositors. With financial sector reforms gathering momentum, the banking
system is facing increasing companies from non-banks and the capital market. More and more
companies are tapping the capital market directly for finance. This is one of the main reasons for the
banks to focus vigorously on the much ignored retail deposits. Another reason is the current liquidity
the margins are 1 to 2 percent above the prime rate; in retail market they are 3to4 percent.

It is reported that Indian retail market has the potential to be second only to the USA. National
Readership Survey 5 puts Indian households with monthly of over Rs. 5000 at 4.5 million.
7
According to the survey, the category of households with annual income of Rs. 2 laths and above is
growing at the rate of 30 per cent per annum. No wonder, banks with vision and insight are trying to
woo this market through a series of innovative additions to their products, services, technology and
marketing methods. Fixed and unfixed Deposits, (cluster deposits which can be broken into smaller
units to help meet depositors’ overdraft without breaking up entirely), centralized database for ‘any
branch banking’ (whereby the customer can access his account in any of the branches irrespective of
where the account is maintained), room services (whereby the customers are visited at their
residences offices to enable them to open their accounts), automatic teller machines, tele banking
network, extended banking time, courier pickup for cheques and documents, etc are some of the
privileges extended to the customers by the banks in are eagerness to cultivate the retail market. In
short, in the bold new world of retail banking the customer is crowned as king.

CASA

CASA stands for current and savings account. Different kinds of deposits - current account,
savings account and term deposits - form the major source of funds for banks. The CASA ratio
shows how much deposit a bank has in the form of current and saving account deposits in the
total deposit.

How is it important for banks?

A higher CASA ratio means higher portion of the deposits of the bank has come from current and
savings deposit, which is generally a cheaper source of fund. Many banks don't pay interest on
the current account deposits and money lying in the savings accounts attracts a mere 3.5%
interest rate. Hence, higher the CASA ratio betters the net interest margin, which means better
operating efficiency of the bank.

Net interest margin is difference between total interest income and expenditure and is shown as a
percentage of average earning assets. Higher income from CASA will improve the net interest
margin as the cost of this fund is relatively lower. For instance, most banks lend at over 10%,
whereas, the rate of interest that they pay on saving deposit is just 3.5%. However, actual
realization depends on other expenditure, too.

8
How is CASA different from term and demand deposits?
Current and saving accounts remain operational. Depositors don't need to give prior notice to
withdraw money, however, in case of term deposits, the money is locked in for a specific period.
If a depositor wishes to withdraw the money before maturity, he may have to pay a fine. Usually,
an overdraft facility is available with the current account deposit. Demand deposit gives you the
facility to withdraw your money anytime.

What does Casa mean for customers?

Recently, RBI increased interest paid on savings account deposits from 3.5% to 4%. Further a
year ago, RBI told banks to pay interest on savings deposits on a daily basis rather than paying
on the minimum balance maintained by them in six months. As a result, savings account
customers earn better returns compared to what they earned a year ago. Further, interest earned
on savings account deposits does not attract TDS (tax deduction at source). Interest income
above 10,000 a year attracts TDS of 10% in case of term deposits. However, there is no major
benefit for current account deposits, which is mainly maintained by corporate and traders.

9
 OBJECTIVE OF STUDY

 To analysis the growth of casa at UCO BANK

 To analysis retail UCO banking product growth.

 To survey about the awareness among the customer about services provided by UCO
bank and technology based products and facilities given by the UCO bank.

 To analysis customer satisfaction

10
SCOPE OF THE STUDY

11
 IMPORTANCE OF THE STUDY

This study is limited under the prospects of area limitations, firm limitations. The area of this

study is limited to UCO banks in Raipur city. The study is limited by a number of factors. Firstly,

the research is limited in Raipur as it is not possible to reach at far places physically for

collecting data. Secondly, time constraint lead to get narrower outcomes. In addition, the firms’

limitation refers to only UCO banks. It also influences the representativeness of the survey

considering the amount of respondents and also the care is taken of the financial data provided

by the bank to avoid any misuse.

12
 RESEARCH METHODOLOGY

Research Design

A Research is master plan or model for the conduct formal investigation. Once the formal
investigation is decided, the researcher must formulate the plan of the investigation. A research
designs is the specification of methods and procedures for acquiring the information needed for
solving the problem. The formal investigation plan will concentrate on the selection of source of
information and the selection of method and procedures for gathering the data. Data gathering forms
are prepared, questionnaires are tested, sample for investigation are planned. There are three basic
type of research design

Sources of Data

The task of data collection begins after a research problem has been defined and research design
chalked out. While deciding about the method of data collection to be used for the study, the two
types of data is required

1. Secondary Data
2. Primary Data

SECONDARY DATA-

The data referred to those which had gathered for some other purpose and already available in the
firms initial record and commercial, trade or sources of secondary data.Internet,Published
data,Specialized libraries.

13
PRIMARY DATA

The primary data are those which are collected afresh and for the first time, and thus happen to be
original in character. Primary data do not exist in record and publication. The researcher has to
gather primary data which is fresh for the specific study, under taken by him. The various methods
to collect primary data are as follows:

Observation Method, Survey Approach, Panel Research, Experimental Research, Through

Questionnaires, Through schedule

Research Methodology I have used: Exploratory and Descriptive.

Data Collection Method: Primary as well as Secondary Data.

Research instrument:-Personal interviews,Questionnaire, observation

Sample Size: 100

Sample unit:-The customer visited in UCO bank at different branch at RAIPUR

14
 CHAPTER 2

PROFILE OF THE COMPANY

1.2 UCO BANK PROFILE

UCO Bank is a commercial bank and a Government of India Undertaking. The Bank offers a
host of value added banking solutions to their customers, which includes international banking
services, services for NRIs, loan schemes, deposit schemes and value added e-banking solutions.
They also possess a host of branches authorized for direct tax collection in India. The Bank has
34 regional offices spread all over India. UCO bank head office is located in Kolkata. The Bank
has 34 Regional Offices spread all over India. The bank has international presence with four
overseas branches in two important financial centers in Singapore and Hong Kong and
representative offices at Kuala Lumpur, Malaysia and Guangzhou in China. The bank also has a
NRI corner to offer specialized services to its international customers. UCO Bank was
incorporated in the year 1943 as The United Commercial Bank Limited. In July 1969, the Bank
was nationalized and 100 per cent ownership was taken over by the Government of India.
Thereafter the Bank expanded rapidly. In December 30, 1985 the name of the Bank was changed
to UCO Bank. During the year 2001-02, the Bank opened 1 new branch in Pune, and 5 new
extension counters. During the year 2004-05, the Bank opened 4 new branches and upgraded 7
extension counters into full fledged branches. They also opened 6 new extension counters.
During the year, one branch was merged and one extension counter was closed. The company
also introduced Gold Card Scheme for exporters to facilitate easy availability of export credit at
remuneration terms. During the year 2005-06, the Bank opened 9 new branches and upgraded 8
extension counters into full fledged branches. They opened 2 new extension counters and closed
5 extension counters. The Bank also opened one representative office in Kuala Lumpur in
Malaysia. During the year, in terms of the Government directive the Bank had effected merger of
three Regional Rural Banks in Bihar on September 9, 2005, two Regional Rural Banks in Orissa
on January 2, 2006 and two Regional Rural Banks in Rajasthan on January 27, 2006. During the
year 2006-07, the Bank opened 57 new branches, upgraded 53 extension counters into full
fledged branches and merged the 15 extension counters with the base branches. They also started
4 flagship corporate branches and 9 mid corporate branches. In February 26, 2007, three

15
Regional Rural Banks in the state of West Bengal were amalgamated and form a single entity
named as Paschim Banga Gramin Bank. During the year 2007-08, the Bank opened 95 branches
in which 66 branches were opened on January 6, 2008 to commemorate the 65th Foundation Day
of the Bank. The Bank opened 40 new branches, 12 mid corporate branches, upgraded 55
extension counters into full fledged branches and merged the 13 extension counters with the base
branches. During the year, the company converted two of their existing branches at Kolkata and
New Delhi exclusively for catering to needs of senior citizens and named these branches as
'Senior Citizen branches'. In April 4, 2007, the Bank opened one representative office at
Guangzhou in China. As at March 31, 2008 the Bank has 1957 branches, two representative
offices, 21 mid corporate branches and 19 extension counters.

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. A commercial bank and a
Government of India Undertaking, it comprises of government representatives as well as
renowned professionals like accountants, management experts, economists, businessmen, and so
on, in its Board of Directors. United Commercial Bank has stretched out to of all segments of the
economy - be it agriculture, industry, trade and commerce, services or infrastructure

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. To keep pace with the developing scenario and expansion of business, the Bank
undertook an exercise in organizational restructuring in the year 1972. Under the act of Indian
Parliament, in 1985, its name changed from United Commercial Bank to the present name, UCO
Bank. As of 2005, the bank has 2000 Service Units spread all over India. A distinctive feature of
UCO bank is its introduction of 'NO HOLIDAY' branches. These bank branches work on all the
365 days of a year. With the age of global banking, UCO bank has also changed to be adept with
the newest technology, boasting of specialized computerized branches in both India and
overseas.

. Its Board of Directors consists of government representatives from the Government of India

16
and Reserve Bank of India as well as eminent professionals like accountants, management
experts, economists, businessmen, etc.

Shri Arun Kaul

Chairman & Managing
Director

Shri N. R.
Badrinarayanan
Executive Director

Shri
S.Chandrasekharan
Executive Director

Vision Statement

To emerge as the most trusted, 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.

Mission Statement

To be a Top-class Bank to achieve sustained growth of business and profitability, fulfilling socio-
economic obligations, excellence in customer service; through up gradation of skills of staff and
their effective participation making use of state-of-the-art technology.

Global banking has changed rapidly and UCO Bank has worked hard to adapt to these changes.
The bank looks forward to the future with excitement and a commitment to bring greater benefits
to you.

UCO Bank, with years of dedicated service to the Nation through active financial participation in
all segments of the economy - Agriculture, Industry, Trade & Commerce, Service Sector,
17
Infrastructure Sector etc., is keeping pace with the changing environment. With a countrywide
network of more than 2000 service units which includes specialized and computerized branches
in India and overseas, UCO Bank has marched into the 21st Century matched with dynamism
and growth.

Overview

 UCO bank is in the Service of Community since 1943.

 UCO bank has nearly 2000 Service Units spread all over India.

 UCO bank also operates in two Major International Financial Centre’s namely Hongkong
and Singapore.

 UCO bank has our Correspondents/Agency arrangements all over the world.

 UCO bank undertakes Foreign Exchange Business in more than 50 Centres in India.

 UCO bank has Foreign Exchange Dealing Operations at 4 Centres.

Strengths

 Country-wide presence
 Overseas Presence with Profitable Overseas Operations

 Strong Capital Base

 High Proportion of Long Term Liabilities

 A Well Diversified Asset Portfolio

 A Large and Diversified Client Base

 Fully Computerized Branches at Major Centres

 Branch representation in Top 100 Centres (as per deposits) in the country

18
Organization Structure

Headquartered in Kolkata, the Bank has 35 Regional Offices spread all over India. Branches
located in a geographical area report to the Regional Office having jurisdiction over that area.
These Regional Offices are headed by Senior Executives ranging up to the rank of General
Manager, depending on size of business and importance of location. The Regional Offices report
to General Managers functioning at Head Office in Kolkata.

UCO bank Commitment to Customers

In all banks promotional activities, bank will be fair and reasonable in highlighting the salient
features of the schemes marketed by them. Misleading or unfair highlighting of any aspect of any
scheme/service marketed by the Bank leading to unfair practice shall not be resorted to by the
Bank.

In commemorating the 50th Year of Independence of India, the Bank released a booklet entitled
"Our Commitment to Customers" incorporating the Citizen's Charter on services provided by the
Bank.

In continuing Endeavour to serve customers better, bank have considerably extended the
business hours for public transaction at the branches on all week-days. Bank has also introduced
a number of NO HOLIDAY branches. These branches are open all 365 days a year. Besides,
several of our branches have Express DD Counter from where Demand Drafts can be purchased
without any waiting time

Branches & ATM Services

Headquartered in Kolkata, UCO Bank has about 35 Regional Offices spread all over India.
Overseas, it has two branches in Singapore and Hong Kong. UCO bank has a total of 414 ATMs
across the states of Andhra Pradesh, Assam, Bihar, Chhattisgarh, Chandigarh, Goa Gujarat,
Haryana, Himachal Pradesh, Jharkhand, Karnataka, Kerala, Madhya Pradesh, Maharashtra,

19
Meghalaya, Nagaland, New Delhi, Orissa, Pondicherry, Punjab, Rajasthan, Sikkim, Tamil Nadu,
Tripura ,Uttar Pradesh, and West Bengal

Products & Services

NRI Banking ,Foreign Currency Loans ,Finance/Services to Exporters ,Finance/Services to
Importers ,Remittances ,Forex & Treasury Services ,Resident Foreign Currency (Domestic)
Deposits ,Correspondent Banking Services ,General Banking Services

RETAIL LOAN PRODUCTS

UCO TWO WHEELER SCHEME

This is an easy finance for purchase a new two wheeler.

Income Criteria

 Salaried borrower
o Minimum gross salary of Rs.8000/-p.m

o Minimum take home income of 40% after taking into the account of EMI of the
proposed loan.

 Non-salaried borrower

o Minimum income of Rs. 1.00lac p.a(Rs. 1.50 lacs p.a for purchase of feature rich
vehicles)

20
Amount of Loan

Maximum Loan Amount Rs.60000/-(May be enhanced to Rs.1.00 laths for feature rich vehicles).

Rate of Interest

 For General category – Base rate + 4.25%

 A/C with full liquid security – Base Rate +3.25%

 A/C with 50% liquid collateral security – Base Rate + 3.75%

UCO CAR LOAN SCHEME

Eligibility

This is an easy finance scheme for purchase of a new car as well as second hand vehicle not
older than 5 years.

Salaried borrower

Minimum monthly take-home pay would be Rs. 10000/- + EMI of the proposed loan.

21
Non-salaried Borrower

 Minimum income should be Rs. 2.40 Lacs per annum during the preceding year.
 Minimum average income for 3 preceding years should be Rs. 1.50 lacs.

 Clubbing of income of spouse and major children for loan limit allowed. Likewise
clubbing of income of regular earning parents is allowed for loan to major children.

Quantum of loan

Maximum Loan Amount Rs. 25.00 lacs.

INTEREST

Rate of interest (floating)-linked with base rate(base rate as on date 10.75% per annum)

NEW PRE-USED

BASE RATE + BASE RATE +

REPAYMENT UP TO 3 YRS 1.75%

REPAYMENT ABOVE 3 2.25% 4.00%

YRS AND UPTO 7 YRS

TABLE 1.1

UCO CASH LOAN SCHEME

This is a Personal Loan scheme to meet the domestic needs like marriage, medical, traveling and
other social obligations.

22
Eligibility

A permanent employee in Govt. / Semi-Govt. / Reputed Public / Private Ltd. Co. /College /
Universities / other recognized institutions / PSU and have completed minimum 3 years in the
organization having salary tie-up arrangement with our branches. Net take home pay should not
be less than 40% of gross salary after deduction of PF, IT and other statutory deductions
including proposed EMI. Regular income may also be reckoned for eligible quantum.

Quantum of loan

90% of the proposed expenditure or Rs. 2 cr whichever is lower. Additional amount may be
sanctioned within the quantum ceiling to the existing eligible borrowers.

INTEREST

Rate of interest (floating) –for men- base rate +5.40%

For women –base rate +4.40% p.a with

Monthly rests subject to revision to be made by the bank from time to

Time at its sole discretion

23
UCO PENSIONERS LOAN SCHEME

Short Term loan is extended through this scheme to Pensioners who receive pension through our
Branches. War widows drawing family Pension are also eligible.

Purpose

For meeting medical expenses for self and dependants, Payment of mediclaim premium, Meeting
marriage expenses, Educational and traveling expenses, Repairs/renovation of dwelling house,
Funeral expenses.

Quantum of loan-

10 times of monthly pension subject to maximum of Rs. 50,00,00,000/-(Maximum Rs.

70,00,00,000/- where Family Pension is admissible)

Rate of Interest

 Base Rate + 4.20%



UCO HOME LOAN SCHEME

This housing finance scheme brings to you an excellent opportunity to have your own house or
flat. The scheme has been carefully tailored to suit your requirements and match your capacity.
The reasonable rate of interest that you pay will be calculated on reducing balance, i.e. you do
not have to pay interest on the loan installments actually repaid from the date of such repayment.

24
Eligibility

You are eligible for a loan under UCO HOME individual (salaried/Non-salaried) having

Minimum 21years of age and Maximum 65 years of age inclusive of repayment period.

Purpose

Purchase and construction of independent house/ready built flat for residential purpose.

Extension/Repair/Renovation of existing house/flat not more than 50 years old.

Takeover of home loans availed from other banks/FIs.

Furnishing of house to be constructed/acquired by UCO Home Loan borrower or Non-Uco

Home loan borrower.

25
Quantum of loan

The area-specific maximum limits for construction/purchase are as under :

Location/Centre For For Repair/Extension/

construction/Purchase Renovation

Metro/Urban/Semi- Rs. 100 lacs Rs. 25 lacs

Urban

Rural Rs. 25 lacs Rs. 7.5 lacs

TABLE 1.2

Maximum limits for Furnishing are Rs.5.00 lacs in Metro/Urban/Semi-Urban areas/ rural areas.

Loan Entitlement

Least of the Following:

i. 80% of the project cost.

ii. Existing deduction +EMI should not exceed 60% of the gross income.

iii. 60 times of net monthly income.

Tax Benefits

Tax relief on principal and interest components of this loan would be available as per provisions
prevailing under Income Tax Act.

26
UCO TRADER LOAN SCHEME

It is a loan for financing working capital and Term Loan needs of Retail and Wholesale traders.

Eligibility

Existing enterprises engaged in business for at least 2 years and earning profit during the last 2
years.

New trading units as well as units which have not completed two years can be financed
maximum up to Rs.10 lacs.

Borrower-

Individual, Proprietorship, Limited Company (public/private) , HUF,Borrowing concern should

deal exclusively with our Bank only.

Quantum of loan

Any Amount from Rs. 1 Lac to Maximum Rs 200 Lacs..

Limits(Least of the followings)

 60% on realizable market value of immovable property, and/or

 90% on FDR (if limit is sought above 60% of project value,

 85% on surrender value of LIC Policies, NSCs & Govt. Bonds(if it is sought as additional
limit), OR 20% of gross Annual sales(existing units) as reflected in last Sales Tax
Assessment order/Sales Tax return/VAT Assessment Order or Return/Service Tax
Assessment Order or Return/Declaration given by borrower, whichever is less.

27
Interest

Base rate +3.75% with monthly rest subject to revision to be made by the bank from time to time
at its sole discretion.

UCO EDUCATION LOAN SCHEME

ScopeThe scheme extends a helping hand to meritorious students desirous of pursuing higher
study either in India or abroad.

Eligibility

Studies in India

Graduation courses leading to degrees like B.A., B.Sc., and B.Com. Etc, Post Graduate courses
leading to Masters Degrees as also Ph.D. Professional courses in Engineering,
Medical,Agriculture, Veterinary, Law, Dental, Management, Computer, etc,Computer Certificate
courses of reputed institutes accredited to Universities or DoE,Courses like ICWA, CA, CFA,
etc.

Studies Abroad

Graduation : Job oriented professional / technical courses offered by reputed Universities.

Post Graduation : MCA, MBA, MS, etc.

Courses conducted by CIMA – London, CPA in U.S.A., etc.

28
Age limit

For Graduation: between 18 & 25 years

For Post Graduation: between 21& 28 years

For SC/ST students: up to 30 years

Eligibility

should be Indian National and Must have secured admission in Regular/ Technical course
through selection process.

Quantum of loan

Studies in India : Maximum Rs. 10.00 Lac

Studies Abroad : Maximum Rs. 20.00 Lac.

Above Rs. 4 Lac Studies in India - 5%

Studies Abroad - 15%

Interest Rates- Base Rate+3.00% for loan up to Rs. 4.00 lacs AND Base Rate+3.75% for more
than Rs. 4.00 lacs

29
UCO SWABHIMAN - REVERSE MORTGAGE LOAN MORTGAGE LOAN
SCHEME FOR SENIOR CITIZEN

Bank introduces UCO Reverse Mortgage Loan Scheme for Senior Citizens, under Reverse
Mortgage a Senior Citizen, owning a house/flat, 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, without repayment or servicing of the loan.

Eligible Borrowers Senior Citizens of India.

Purpose Supplementing Senior Citizen’s Income
Loan Amount Based on valuation of the property and age of the
borrower – Maximum Rs.50 lacs
Period of Loan Minimum 5 years and maximum 15 years.
Mode of Disbursement Monthly/Quarterly with fixed/increasing Equated monthly
Disbursement with an option to avail One-time lump sum
payment after 12 months from the first disbursement
during entire tenure of 15 years as per choice of the
borrower.
Security Equitable Mortgage of the residential property owned &
self occupied by the Senior Citizen borrower.
Rate of Interest 10.50% (fixed) with reset clause after 3 years.
Repayment The outstanding loan will be due when the last borrower
dies/permanently moves out of the house/would like to
sell the home.

Loan will be liquidated by sale of property.

Option available with the legal heir(s) to repay the loan

and redeem, the house property.

CHAPTER 3

30
 CONCEPTUAL FRAMWORK

Banking in India originated in the last decades of the 18th century. The first banks were The
General Bank of India, which started in 1786, and Bank of Hindustan, which started in 1790;
both are now defunct. The oldest bank in existence in India is the State Bank of India, which
originated in the Bank of Calcutta in June 1806, which almost immediately became the Bank of
Bengal. This was one of the three presidency banks, the other two being the Bank of Bombay
and the Bank of Madras all three of which were established under charters from the British East
India Company. For many years the Presidency banks acted as quasi-central banks, as did their
successors. The three banks merged in 1921 to form the Imperial Bank of India which, upon
India's independence, became the State Bank of India in 1955.

The English traders that came to India in the 17th century could not make much use of the
indigenous bankers, owing to their ignorance of the language as well the inexperience indigenous
people of the European trade. Therefore, the English Agency Houses in Calcutta and
Bombay began to conduct banking business, besides their commercial business, based on
unlimited liability. The Europeans with aptitude of commercial pursuit, who resigned from civil
and military, organized these agency houses.

A type of business organization recognizable as managing agency took form in a

period from 1834 to 1847.

The primary concern of these agency houses was trade, but they branched out into banking as a
sideline to facilitate the operations of their main business. The English agency houses, that began
to serve as bankers to the East India Company had no capital of their own, and depended on
deposits for their funds. They financed movements of crops, issued paper money and established
joint stock banks. Earliest of these was Hindustan bank established by one of the agency houses
in Calcutta in 1770.Banking in India originated in the last decades of the 18th century. The first
bank in India, though conservative, was established in 1786 in Calcutta by the name of bank of
Bengal. Indian banking system, over the years has gone through various phases.

Early historical and formative era: 1770-1905.

Pre-independence era: 1906-19463.

31
Post independence regulated era: 1947-19934.

Post independence deregulated era from 1993 onwards

EARLY PHASE (1786 TO 1935)

Banking in India originated in the last decades of the 18thcentury. The first banks were The
General Bank of India, which started in 1786, and the Bank of Hindustan, both of which are
now defunct. The oldest bank in existence in India is the State Bank of India, which originated in
the Bank of Calcutta in June 1806, which almost immediately became the Bank of Bengal.
This was one of the three presidency banks, the other two being the Bank of Bombay and the
Bank of Madras, all three of which were established under charters from the BRITISH EAST
INDIA COMPANY

For many years the Presidency banks acted as quasi-central banks, as did their successors. The
East India Company established Bank of Bengal, Bank of Bombay and Bank of Madras as
independent units and called it Presidency Banks. The three banks merged in 1925 to form the
Imperial Bank of India, which, upon India's independence, became the State Bank of India.
Foreign banks too started to arrive, particularly in Calcutta, in the 1860s.

The COMPTORIE D’ESCOMPTE DE PARIS opened a branch in Calcutta in 1860 and

another in Bombay in 1862; branches in Madras and Pondicherry, then a French colony,
followed.

HSBC established itself in Bengal in 1869. Calcutta was the most active trading port in India,
mainly due to the trade of the British Empire, and so became a banking center. Indian merchants
in Calcutta established the Union Bank in 1839, but it failed in1848 because of the economic
crisis of 1848-49

The Allahabad Bank, established in 1865 and still functioning today, is the oldest Joint Stock
bank in India.

Swadeshi Movement

The Swadeshi movement inspired local businessmen and political figures to found banks of and
for the Indian community. A number of banks established then have survived to the present such
32
as Bank of India, Corporation Bank, Indian Bank, Bank of Baroda, Canara Bank and Central
Bank of India

Bank of Bengal 1809Bank of Bombay 1840 Bank of Madras 1843 Allahabad Bank 1865 Punjab
National Bank Ltd. 1894Canara Bank 1906Indian Bank 1907Bank of Baroda 1908Central Bank of
India 1911Bank of Mysore 1913Union Bank if India 1922

PRE NATIONALIZATION PHASE (1935 TO 1969)

Reserve Bank of India

Another breakthrough happened in this phase, which was RESERVE BANK OF INDIA

The Reserve Bank of India was set up on the recommendations Royal Commission Of Indian
Currency and Finance also known as the Hilton-Young Commission. The commission submitted
its report in the year 1926, though the bank was not set up for nine years. Reserve Bank of India
(RBI) was created with the central task of maintaining monetary stability in India. The
Government on December 20, 1934 issued a notification and on January 14, 1935, the RBI came
into existence, though it was formally inaugurated only on April 1, 1935.

Main functions of RBI were

1.Regulate the issue of banknotes

2.Maintain reserves with a view to securing monetary stability and

3.To operate the credit and currency system of the country to its advantage

The Bank began its operations by taking over from the Government the functions so far being
performed by the Controller of Currency and from the Imperial Bank of India.

India Wins Freedom

The second milestone in history of Indian banking was India becoming a sovereign republic. The
Government of India initiated measures to play an active role in the economic life of the nation,

33
and the Industrial Policy Resolution adopted by the government in 1948 envisaged a MIXED
ECONOMY

This resulted into greater involvement of the state in different segments of the
economy including banking and finance. The banking sector also witnessed the benefits;
Government took major steps in this Indian Banking Sector Reform after independence.

 First major step in this direction was nationalized of Reserve Bank in 1949.

 Enactment of Banking Regulation Act in 1949

 Reserve Bank of India Scheduled Banks' Regulations, 1951.

 Nationalization of Imperial Bank of India in 1955, with extensive banking facilities on a

large-scale especially in rural and semi-urban areas.

 Nationalization of SBI subsidiaries in 1959Government of India took many banking

initiatives. These were aimed to provide banking coverage toall section of the society and
every sector of the economy.

POST NATIONALIZATION PHASE (1969 TO 1990)

Nationalization of banks in India was an important phenomenon . on july 19.1969

the erstwhile government of India nationalized 14 major private banks. Nationalization of bank
in India was not new or happening first time. From 1955 to 1960, State Bank of India and other
seven subsidiaries were nationalized under the SBI Act of 1955.

Central Bank of India Indian Overseas Bank Bank of Maharashtra Bank of Baroda D e n a B a n k
U n i o n B a n k Punjab National Bank Allahabad Bank Syndicate Bank 12 United Bank of India
Canara Bank UCO Bank Indian Bank Bank of India

It was not a step taken at random or because of the whims of the leadership of the time, but
reflecteda process of struggle and political change which had made this an important demand of
the people.Nationalisation took place in two phases, with a first round in 1969 covering 14 banks
followed by another in 1980 covering seven banks. Currently there are 27 nationalized
commercial banks.
34
Reasons for Nationalization

1.The need for the nationalization was felt mainly because private commercial banks were not
fulfilling the social and developmental goals of banking, which are so essential for
any industrializing country..

2 The developmental goals of financial intermediation were not being achieved other than for
some favored large industries and established business houses.

3.The stated purpose of bank nationalization was to ensure that credit allocation occur
inaccordance with plan priorities.

4.Reduce the hold of moneylenders and make more funds available for agricultural
development.Nationalization of bank was to actively involve in poverty alleviation and
employment generation programs.

MODERN PHASE FROM 1991 TILL DATE

This is the phase of “New Generation” tech-savvy banks. This phase can be called as “The
Reforms Phase”. Starting of the modern and current phase of Indian Banking is marked by two
important events.

Narasimhan Committee

The committee on banking sector reforms committee headed by Mr. M. Narasimhan, it is also
known as narasimhan committee. The Committee, headed by former Reserve Bank of India
governor M Narasimhan, was appointed by the United Front government to review the progress
in banking sector reforms. The committee submitted its recommendations to union Finance
Minister Yashwant Sinha in November of 1991.The Committee was required to review the
progress in the reforms in the banking sector over the past six years with and to chart a
programme on Financial Sector Reforms necessary to strengthen the India’s financial system and
make it internationally competitive taking into account the vast changes in the international and
financial markets, technological advances. Some of the recommendations offered by the
committee are:

35
 1. A reduction, phased over five years in the Statutory Liquidity Ratio (SLR) to 25
percent,synchronized with the planned contraction in Fiscal Deficit
2 A progressive reduction in the Cash Reserve Ratio (CRR).
3 Gradual deregulation of interest rates.
4 All banks to attain Capita Adequacy 8% in a phased manner.

5 Banks to make substantial provisions for bad and doubtful debts.

6 Profitable and reputed banks be permitted to raise capital from the public.

7 Instituting an Assets Reconstruction Fund to which the bad and doubtful debts

of banks and financial institutions could be transferred at a discount.

8 Facilitating the establishment of new private banks, subject to RBI norms.

9. Banks and financial institutions to classify their assets into four broad groups,

viz, Standard,Sub-standard, Doubtful and Loss.

10. RBI to be primarily responsible for the regulation of the banking system.

11 Larger role for Securities Exchange Board of India (SEBI)

Economic Liberalization in India

The second major turning point in this phase was ECONOMIC LIBERALIZATION IN INDIA

After Independence in 1947, India adhered to socialist policies. The extensive regulation was
sarcastically dubbed as the "License Raj”. The Government of India headed by Narasimha Rao
36
decided to usher in several reforms that are collectively termed as liberalization in the Indian
media with Manmohan Singh whom he appointed Finance Minister Dr. Manmohan Singh, an
acclaimed economist, played a central role in implementing these reforms..

Impact of Economic Liberalization on Finance & Banking

Post nationalization now Indian banking sector was unshackled, and along with the
government banks a thick layer of private and foreign banks was taking shape. The first of such
new generation banks to be set up was Global Trust Bank, which later amalgamated with
Oriental Bank of Commerce,ICICI Bank, HDFC Bank and Axis Bank. This move, along with the
rapid growth in the economy of India, revitalized the banking sector in India.The next stage for
the Indian banking has been setup with the proposed relaxation in the norms for Foreign Direct
Investment, where all Foreign Investors in banks may be given voting rights, which could exceed
the present cap of 10%, at present it has gone up to 49% with some restrictions. The new wave
ushered in a modern outlook and tech-savvy methods of working for traditional banks. All this
led to the retail boom in India. People not just demanded more from their banks but also received
more.

Banking Sector Reforms since 1992

The first type of reforms mainly based on Narasimhan Committee recommendations and the
principles of new liberalized Indian economy.

Current Banking Structure

Banks in India can be categorized into Scheduled and Non-scheduled Banks

Scheduled Banks

Scheduled Banks in India constitute those banks, which have been included in the Second
Schedule of Reserve Bank of India(RBI) Act, 1934. RBI in turn includes only those banks in this
schedule which satisfy the criteria laid down vide section 42 (6) (a) of the Act. As on 30th June
37
1999, there were 300 scheduled banks in India having a total network of 64,918 branches. The
scheduled commercial banks in India comprise of State bank of India and its associates(8),
nationalized banks (19), foreign banks (45), private sector banks (32), co-operative banks and
regional rural banks

Non-Schedule Banks

Non-scheduled bank in India" means a banking company as defined in clause (c) of section 5 of
the Banking Regulation Act, 1949 (10 of 1949), which is not a scheduled bank”. Banks in India
can also be classified in a different way.

 Public Sector Banks

Private Sector Banks

 Foreign Banks

 Regional Rural Banks (RRBs)The above mentioned classification overlaps with the
previous one. Public Sector, Private Sector andForeign Banks fall the category of
scheduled banks.Currently, India has 88 scheduled commercial banks (SCBs)

27 public sector banks (that is withthe Government of India holding a stake)

31 private banks (these do not have government stake; they may be publicly listed and traded on
stock exchanges) and 38 foreign banks

They have a combined network of over 53000 branches and 17000ATM’S

According to a report by ICRA Limited, a rating agency, the public sector banks hold over 75%
of total assets of the banking industry, with the private and foreign banks holding 18.2% and 6.5
% respectively

38
 CHAPTER -4

ANALYSIS AND INTERPRETATION

CASA

39
Balance sheet as on 31-march-2016 (rs in cr)

Current account Saving account Casa Total deposit

RAIPUR 14226.64 69635.61 83862.31 272384.82

TABLE 3.1

Balance sheet as on 31-march-2015 (rs in cr)

Current account Saving account Casa Total deposit

Raipur 17495.26 67594.28 85089.52 219954.89

TABLE 3.2

Balance sheet as on 31-march-2014 (rs in cr)

Current account Saving account CASA Total deposit

Raipur 18345.36 54440.72 72792.97 244012.29

TABLE 3.3

Analysis and interpretation

CURRENT ACCOUNT -
there is decrease of Rs850.1 cr i.e. 4.633% in 2014-2015 and in 2015-2016 there is again
decrease of Rs 3268.62 cr i.e. 18.68%.

Therefore there is need of focus on current account. Decrease in current

account leads to decrease in net interest margin of bank and non-availability of low cost
unavaibility fund for bank. Therefore bank must make all efforts increasing there current deposit
in two ways-

1. Giving good customer service to existing customers

2. By opening new current accounts.

40
SAVING ACCOUNT –
In 2014-2015 there is increase of Rs 13153.56 cr i.e. 24.16% and in 2015-2016 there is again an
increase of Rs. 2041.33 lakhs i.e. 3.019% .

There is growth in the saving account but the growth rate is decreased from
24.16 % to 3.091% .there is need to focus on the down fall.

In fact however the growth which seem to be 3.019% should not be considered an increase
because at the rate of 4% interest rate if nothing is done by the bank there is increase of 4% per
year by the bank.

CASA – in 2010 -2011 there is increase of Rs. 12296.55lakhs i.e. 16.85% and in 2011-2012
there is decrease in CASA of Rs 1227.21 lakhs i.e. 1.442%

Therefore there is downfall in the growth . Need to focus on it.

According to financial report of FY’12 -18.53 lakhs new CASA customers

acquired in FY’12

RETAIL LOAN PRODUCTS ANALYSIS

UCO TWO WHEELER SCHEME

BALANCE SHEET FIGURES OF UCO TWO WHEELER SCHEMES

(RS IN LAKHS)

2014 2015 2016

40054 1561847 3121992

TABLE 3.4 -Analysis and interpretation

41
There is growth in uco two wheeler loan schemes in 2011 there is increase of Rs1521793 lakhs

And in 2012 there is increase of Rs 1560145 laths.Thus this retail product must be focused more
as it will show a constant increase.

UCO CAR LOAN SCHEME

BALANCE SHEET FIGURES OF UCO CAR LOAN SCHEMES

(RS IN LAKHS)

2010 2011 2012

50177938 76476338 146415769

TABLE 3.5

ANALYSIS AND INTERPRETAION

There is increase in uco car loan schemes in 2010 -2011 there is increase of Rs 26298400 lakhs
and in 2011 -2012 there is increase of Rs 69939431 lakhs

UCO CASH LOAN SCHEME

BALANCE SHEET FIGURES OF UCO CASH LOAN SCHEMES

(RS.IN LAKHS)

2010 2011 2012

299283935 278203346 291689820

TABLE 3.6
42
ANALYSIS AND INTERPRETION

There is decrease in UCO cash loan schemes in 2010-2011 of Rs 21080589 lakhs but increase in
2011-2012 of Rs 13486474 lakhs

UCO PENSIONERS LOAN SCHEME

BALANCE SHEET FIGURES OF UCO PENSIONERS LOAN SCHEMES

(RS. IN LAKHS)

2010 2011 2012

26819026 32443223 33918763

TABLE 3.7

ANALYSIS AND INTERPRETATION

There is increase in uco pensioner loan schemes in 2010-2011 of Rs 5624197 lakhs and also
increase in 2011-2012 of Rs 1475540 lakhs . while give constant increase as this product secures
the future of the employe after the retirement/

UCO HOME LOAN SCHEME

BALANCE SHEET FIGURES OF UCO HOME LOAN SCHEMES

(Rs in lakhs)

2010 2011 2012

793816735 830126425 1206881737

43
 TABLE 3.8

ANALYSIS AND INTERPRETATION

There is increase in uco home loan in 2010-2011 of Rs 36309690 lakhs and also increase in
2011-2012 of Rs 376755312 lakhs. This product is also in its increasing phase as the bank has
provided different schemes under this home loan product which will assumed that its will be in
increasing phase.

UCO TRADER LOAN SCHEME

BALANCE SHEET FIGURES OF UCO HOME LOAN SCHEMES

2010 2011 2012

524783677 536773796 582565778

(Rs in laths)

TABLE 3.9
44
ANALYSIS AND INTERPRETATION

There is an increase in 2010-2011 of Rs 11990119 lakhs and also a heavy increase in 2011-2012
that is of Rs 45792009 lakhs . this shows encouragement to new traders for this the bank has also
open a new unit called SME UNIT .

UCO EDUCATION LOAN SCHEME

BALANCE SHEET FIGURES OF UCO EDUCATION LOAN SCHEMES

(Rs in lakhs)

2010 2011 2012

94381908 108646388 125638642

TABLE 3.10

ANALYSIS AND INTERPRETATION

There is increasing in uco education loan in 2010-2011 of Rs.14264480 lakhs and also increase

in 2011-2012 from Rs 16992254 lakhs.

UCO SWABHIMAN - REVERSE MORTGAGE LOAN MORTGAGE

LOAN SCHEME FOR SENIOR CITIZEN

BALANCE SHEET OF UCO BANK SWABHIMAN SCHEME

(Rs in lakhs)

2010 2011 2012

254748 303879

TABLE 3.11

45
 There is increase in 2012 of Rs 49131 lakhs this is new loan scheme introduce by the bank.

Bank performance 2015 vs2016

DEPOSIT COMPONENT

Sl No Parameters MAR’11 MAR’12 VARIATION

1 Deposit 136415 142017 4.11

(Domestic)

2 Current 7344 7600 3.49

3 Savings 24308 26267 8.06

46
4 CASA 31652 33867 7

5 Share of 23.02 23.85 -

CASA (%)

6 Term Deposit 104702 108065 3.21

7 Core Deposit 72048 75446 5.41

8 Bulk Deposit 40855 44843 9.76

9 CD 23512 21228 -9.71

10 Deposit 8863 11986 35.24

(Overseas)

11 Total Deposit 145278 154003 6.01

(Global)

*(as per the data provided) TABLE 3.12

Income, expenditure and profit

(Amt in Rs. Crore)

Sl Y-o-Y Growth
Parameters Mar ‘11 Mar’12
No %

1 Interest income 11372 14632 28.67

2 Other income 925 966 4.43

3 Total income 12297 15598 26.84

4 Interest paid 7526 10730 46.57

47
5 Operating 2076 2056 -0.96
expenses

6 Total expense 9602 12786 33.16

7 Net interest 3864 3902 1.46

income

8 Operating profit 2695 2812 4.34

9 Provisions 1788 1703 -4.75

10 Net profit 907 1109 2.27

TABLE 3.13

INTERPRETAION- the above table 3.13 shows all the income of bank in financial year 2012

and all expenditure of the financial year after deducting the expenditure from the income we

receive the net profit for the financial year 2012 that is RS.1109 CRORES in percentage term

there is growth in profit of 2.27% from the financial year 2011 to 2012.

Profitability ratio

s.no Parameters Mar’11 Mar’12

1 Return on Assets 0.66 0.69

(%)=(net income/total
assest during the year

48
2 Return on Equity 21.02 19.88
(%)=earning/shareholde
r equity

3 Cost to Income Ratio 43.51 42.24

(%)

4 Book Value per Share 88.16 94.72

(Rs.)=total shareholder

equity-preferred

share/total outstanding

shares

5 Earnings per Share 14.29 15.02

(Rs.)=net profit

available for equity

shareholder/no. of

equity shares

ANALYSIS AND INTERPRETATION

1 RETURN ON ASSET increases to .69% which shows that how profitable a company is
relative to its total assets. ROA gives an idea as to how efficient management is at using its assets
to generate earnings.

49
2 RETURN ON EQUITY decreases from 21.02% to 19.88% it’s the decrease Return on equity
profitabilityas this ratio reveal how much profit a company generates with the money
shareholders have invested.

3 COST TO INCOME RATIO is decreased to 42.24 %thus there is change in income as this
ratio is useful to measure how costs are changing compared to income

4 BOOK VALUE PER SHARE is increase to RS.94.72 that is if a company's calculated book
value per share is higher than the CURRENT STOCK PRICE, the company is undervalued. It
can also be used in the reverse where if STOCK PRICE is substantially higher than the book
value per share that it is overvalued and prone to corrections.

5 EARNING PER SHARE is increasing to RS.15.02. The current stock price will tell you at
what price you can buy the stock or what will you get after you sell the stock. The earning of the
company though is an indicator of the financial standing of the company it doesn’t give you a
chance to compare one company to the other to judge which one is a better company to invest in.

New initiatives

Parameters During fy’11 During fy’12

50
Branches 130 188

ATM’S 114 256

Ultra small branches 62 62

Self help groups(SHG) 1,673 5,117

VISA debit cards(in lakhs) 1.56 5.62

No. of CASA customers 5.47 18.53

acquired (in lakhs)

TABLE 3.14

ANALYSIS AND INTERPRETATION

 The above table 3.14 shows the infrastructural growth of the bank.in financial year 2012

the new branches are open to sever better that is the no. of branches increases to 188.

 New ATM’s are opened that will increase to 256 in number.

 There is no change in ultra small branches where as self help group is increased to 5117

 Issuing of new debit cards is to 5.62 lakhs

 Number of CASA customers to be achieved will be 18.53 lakhs

HO: There is no significant relationship between the higher income and technology based product
awareness.

51
HA: There is significant relationship between the higher income and technology based product
awareness

Aware customer Not aware customer

Income less the 5 14 11 25

laths

Income more then 5 17 8 25

laths

31 19 50

O E (O-E) (O-E)2 (O-E)2/E

14 15.5 -1.5 2.25 0.145

17 15.5 1.5 2.25 0.145

11 9.5 1.5 2.25 0.2368

8 9.5 -1.5 2.25 0.2368

-----------

0.7636

INTEREPRETATION – THE CALCULATED VALUE OF CHI-SQAURE IS 0.7636 WHICH IS

LESS THEN THE TABULATED VALUE OF CHI-SQUARE FOR 1 DEGREE OF FREEDOM
AT 5% LEVEL OF SIGNIFICANT IS 3.841 WHICH IS MORE THUS WE ACCEPT THE
NULL HYPOTHESIS AND REJECT THE ALTERNATIVE HYPOTHESIS. THUS THERE IS
NO SIGNIFICANT RELATIONSHIP BETWEEN INCOME OF CUSTOMER AND
AWARNESS OF THE TECHNOLOGY BASED PRODUCTS OF THE BANK.

H0: There is no significant realationship between the awareness of technology based product and
its usage.

52
HA: There is significant realationship between the awareness of technology based product and
its usage.

AWARE NOT AWARE

CUSTOMER CUSTOMER
CUSTOMER USING 6 1 7

FACILITY
CUSTOMER NOT 25 8 43

USING THE

FACILITY
31 19 50
2 2
O E (O-E) (O-E) (O-E) /E
6 4.34 1.66 2.7556 0.634
25 26.66 -1.66 2.7556 0.1033
1 2.66 -1.66 2.7556 1.0359
18 16.34 1.66 2.7556 0.1686
--------------
1.9418

INTERPRETATION—

THE CALCULATED VALUE OF CHI-SQAURE IS 1.9418 WHICH IS LESS THEN THE

TABULATED VALUE OF CHI-SQUARE FOR 1 DEGREE OF FREEDOM AT 5% LEVEL OF
SIGNIFICANT IS 3.841 WHICH IS MORE THUS WE ACCEPT THE NULL HYPOTHESIS
AND REJECT THE ALTERNATIVE HYPOTHESIS. THUS THERE IS NO SIGNIFICANT

53
RELATIONSHIP BETWEEN AWARENESS OF TECHNOLOGY BASED PRODUCT AND
ITS USAGE.

FINDINGS

Following are findings of the report

1 There is need of focus on current account. Decrease in current account leads to decrease in net
interest margin of bank and non-availability of low cost unavaibility fund for bank.

2 In 2010-2011 there is increase of Rs 13153.56 lakhs i.e. 24.16% and in 2011-2012 there is
again an increase of Rs. 2041.33 lakhs i.e. 3.019%

There is growth in the saving account but the growth rate is decreased from
24.16 % to 3.091% .there is need to focus on the down fall.

In fact however the growth which seem to be 3.019% should not be considered an increase
because at the rate of 4% interest rate if nothing is done by the bank there is increase of 4% per
year by the bank.

3 In 2010 -2011 there is increase of Rs. 12296.55lakhs i.e. 16.85% and in 2011-2012 there is
decrease in CASA of Rs 1227.21 lakhs i.e. 1.442%

Therefore there is downfall in the growth . Need to focus on it.

4 There is growth in uco two wheeler loan schemes in 2011 there is increase of Rs1521793 lakhs

And in 2012 there is increase of Rs 1560145 lakhs this product shows a constant increase.

5 There is increase in uco car loan schemes in 2010 -2011 there is increase of Rs 26298400 lakhs
and in 2011 -2012 there is increase of Rs 69939431 lakhs it will increase in the upcoming years
also.

6 The other product such as pensioner

7 RETURN OF ASSET gives an idea as to how efficient management is at using its assets to
generate earnings and there is increase in the return of asset TO .69%

54
8 Return on equity profitabilityas this ratio reveal how much profit a company generates with
the money shareholders have invested. The return of equity is decreased to 19.88%.thus the
bank has generated profit but less in comparision to 2011.
9 BOOK VALUE PER SHARE is increase to RS.94.72 that is if a company's calculated book
value per share is higher than the CURRENT STOCK PRICE, the company is undervalued. It
can also be used in the reverse where if STOCK PRICE is substantially higher than the book
value per share that it is overvalued and prone to corrections.

10 EARNING PER SHARE is increasing to RS.15.02. The current stock price will tell you at
what price you can buy the stock or what will you get after you sell the stock. The earning of the
company though is an indicator of the financial standing of the company it doesn’t give you a
chance to compare one company to the other to judge which one is a better company to invest in.

11 The hypothesis test was made to study the significant relations between the income and the
awareness of the technology based product but the chi-square test result that there is no
relationship between the income and the awareness of the technology based products.

12 The second hypothesis test was made to study the significant relationship between the
awareness of the technology based product and its usage. The chi-square test result in that there
is no relationship between the technology based product and its usge. People may be aware of
the technology based products but they may not use them.

Chapter 5

CONCULSION

Conculsion

1. Net Profit for FY’12 surged 22.3% YoY to reach Rs.1109 crore thus there is positive
55
growth of the bank.
2. 18.53 lakhs new CASA customers acquired in FY’12 thus the number of customer
is increasing thus in future there is estimation of more growth in customers and
which show more increase in the other ratios also.

3. Global Business at Rs. 271508 crore registered 10.44% YoY growth thus results in
Economy growth

4 There is increase in return of asset on march ’12 to .69% which shows that how profitable a
company is relative to its total assets. ROA gives an idea as to how efficient management is at
using its assets to generate earnings.

5 return on equity is decreased to 19.88% from 21.02% in march ’12 the decrease Return on
equity profitability as this ratio reveal how much profit need by company to generates with the
money.
6 cost to income ratio is decreased to 42.24 %

7 Earning per share (annualized) improved to Rs. 15.02 on 31.03.12 that is if a company's
calculated book value per share is higher than the CURRENT STOCK PRICE, the company is
undervalued. It can also be used in the reverse where if STOCK PRICE is substantially higher
than the book value per share that it is overvalued .

8 There is increase in book value per share to RS. 94.72 The current stock price will tell you at
what price you can buy the stock or what will you get after you sell the stock. The earning of the
company though is an indicator of the financial standing of the company it doesn’t give you a
chance to compare one company to the other to judge which one is a better company to invest in

9 188 New Branches 62 Ultra Small Branches and 256 New ATMs installed in FY’12 thus it
shows that the bank is trying to provide services in maximum possible area.

56
 BIBLOGRAPHY AND REFERENCE

BIBLIOGRAPHY
Books:

1 C.R. KOTHARI, Research Methodology, New Age International Publishers, New Delhi,
second revised edition, 2010.

Chapter 1- page no. 1-2, chapter 3-page no. 31-32,35-39, chapter 6-page no. 95-

97,100,104,111,113.
57
2 UCO BANK ANNUAL REPORT 2010-2011, Published by uco bank

3 UCO BANK ANNUAL REPORT 2011-2012, Published by uco bank

4 Handbook on retail loan products ,Published by UCO bank for regional training centre.

WEBSITES:

1. http://www.ucobank.com/

2. http://www.ucobank.com/profile.htm

3. http://www.ucobank.com/financial_results.htm

4. http://www.ucobank.com/annual-report.htm

5. shodhganga.inflibnet.ac.in/10603/544/9/09_chapter2.pdf

6. http://www.investopedia.com/terms/r/returnonassets.asp

Appendix

Questionnaire
I am students of MBA from BIT DURG, as a part of my course curriculum I am doing my
project work. I would be grateful to you for providing me your genuine responses.

Name ----------------------------------------------------------------------------------------

Address-:
58
 ……………………………………………………….pin code……………
Pan card no-………………………………………………………………………….
Contact no-…………………..{all}………………………………………………….{mob}
Gender :- MALE FEMALE
Date of birth …………………………….
Age- up to 25 25 & above but below 50 50 above and below 60
60 above and below 70 70 above and below 75

Occupation: Professional self employed salaried other …………………..

Education qualification : under graduate graduate post graduate

Doctorate professional ………………………

Income group: up to 2 laths 2-5 laths 5-10 laths 10 laths and above

Q1 Do you have any account in UCO bank?

Yes No

Q2 If yes, then which type of account?

Saving account current account fixed account recurring account

Q3 Are you satisfied with services provided by UCO bank ?

Highly satisfied Neutral dissatisfied highly dissatisfied

Q4 one of the most important factor which attract to select the UCO bank?

Interest rate services provided payback period schemes others

Q5 Are you aware of UCO bank technology based products ?

Yes No

Q6 Are you aware of E-BANKING facility/ MOBILE BANKING facility ?

Yes no

Q7 Do you pay tax through UCO bank online ?

Yes No

Q8 Have you applied for loan through UCObank online facility ?

Yes No

Q9 what are problems faced by you while using banking services ?

59
 Lack of knowledge

Procedural delay and non-cooperation

Number of formality

Any other

….......................................................................................................

Q10 your suggestion for improvement in services if any?

…………………………………………………………………………………………………........

………………………………………………………………………………………………………

……………………………………………………………………………………………...............
.

60