A PROJECT REPORT

ON
RETAIL BANKING GROWTH IN UCO BANK

FACULTY OF MANAGEMENT STUDIES

(DR.K.N.Modi University, Newai, Rajasthan )

UNDER THE GUIDENCESS:SUMMITED by:-

sh.R.M. MEENA
CHOUDHARY

(BRANCH MANAGER)

SONU

(BBA 5 TH SEM)

PREFACE
Theoretical study combined with practical knowledge makes the
learning meaningful and enables the individuals to develop selfconfidence because theoretical knowledge is always incomplete
without its practical implication like gun without bullet. For a
management student theoretical knowledge as well as practical
orientation expose oneself to experience, one can again by mastering
it is best possible time. M.B.A curriculum has been tuned in such a way
that students not only applies the theoretical but also gain a practical
sense. Thus objective can be attained through application of theory
tools concept and techniques of management.
Balanced theoretical and practical knowledge is essential for every
student and M.B.A curriculum is conceived in such a way so as to
facilitate practical purpose helps in developing the students

understanding about the banking industry with emphasis on the

development of skill in analyzing and interpreting problems through
the application of theory, concept and techniques of management.
The researchers have conducted summer training on A Study on a
retail banking growth in uco Bank. This report is an attempt to
dehumanize the above-related facts about banking.
Researcher has tried to satisfy the topic of report by help of facts and
findings.

ACKNOWLEDGEMENT

In the ecstasy of delight I express my esteem sense of gratitude to Dr.

ANIL KOTHARI sahib, Dean, faculty ofManagement Studies, MLS
University,Udaipur for his valuable guidance with constructive
ideasand sustained interest throughout the course of study.
It is hardly possible for me to find out words which are adequate to
thank to Shri R.M. Meena sahib, Branch Manager, UCO Bank
BanasthaliVidyapith for his constant guidance and encouragement
insistence on precision and meticulous attention to details have stood
me in good stead throughout the project period.
The source of constructive work was due to energy transmitted in to
the form of encouragement by my mother and father (Mrs. Bhagwani
Devi and Dr.RamCharanYadav).
The encouragement and establishment of this project is also due to co-

operation of Mrs. Saviti, Assistant Manager, Mr. Mahendra Kumar Jain,

Head Cashier, Mr.Hamant Kumar Saini, PO and Mrs. KamlaMeena, SWO
and other bank staff for their timely help during the project period.
Lastly but greatest of all, a million thanks to God, the
Almighty, who made me able to do this task and made every job a
success for me.

Place: Banasthali
Date: 18-07-2012 to 17-09-2012

Rajesh Kumar Yadav

INDEX

S.NO

CONTENT

PAGE NO.

1.

RETAIL BANKING DEFINATION:

06

2.

RETAIL BANKING INTRODUCTION

07

3.

FEATURE OF RETAILBANKING

08

4.

STRUCTURE AND FUNCTION

11

5.

OPPORTUNITIES AND CHELLENGES

12

6.

SCOPE FOR RETAIL BANKING

13

7.

HISTROY OF UCO BANK

15

8.

MANAGEMENT - UCO BANK:

16

8.1

UCO Bank focusing on lending to retail

16

8.2

Capital structure:

17

8.3

Distribution Channel :

17

8.4

BUSINESS GROWTH:

17

8.5

Wholesale Banking Service

17

8.6

Retail Banking:

18

8.7

Forex& Treasury Services:

18

8.8

RATING

18

9.

BRANCH SERERVICE

20

9.1

ATMs:

20

.2

INTERNET BANKING:

21

9.3

MOBILE BANKING:

21

9.4

SAVING ACCOUNT:

21

9.5

CURRENT ACCOUNT:

22

9.6

UCO DHAMAKA FIXED DEPOSIT SCHEME:

22

10.

LOAN

25

10.1

UCO HOME LOAN:

25

10.2

UCO CAR

27

10.3

EDUCATION LOAN

28

10.4

UCO CASH

30

11.

CUSTOMER SERVEY

31

12.

CONCLUSION

32

13.

BIBALIYOGRAPHY

35

RETAILBANKING
DEFINITION:
Retail banking is a typical mass market banking where individual
customer use rural branches of large commercial banks. Services
offered includes: saving and current accounts, mortgage, personal
loan, debit & credit card and so on.
Today retail banking scenario is changing very fast. The customer
demographicdemands to create a different application based on
scalable technology, improved service and convenient banking. Higher
penetration of technology and increase in global literacy levels has
setup thehigher expectation of customer than never before. Increasing
use of mordent technology has further enhanced reach and
accessibility of consumer.
The market today gives us a challenge to provide multiple and
innovative contemporary service to customer through a consolidated
window as to ensure that the customer gets uniformity and
consistency servicesdelivered in time and at every touch point across
all channels. To pace up with innovation of accelerating and security
threat has become prime of all electronic transactions. High cost
structure rendering mass market servicing is prohibitively
expensive.Present day tech-savvy banker are now more looking at
reduction in their operating costs by adopting scalableandsecure
technology thereforereducing the response time to their customers as
to improve their client based economies of scale.
The solution line to market demands and challengesarelies in new
innovation offering with minimum dependency on branches a multi-

channel and to eliminate disadvantage of an inadequate branch

network.Generation leads to cross sell and creating additional
revenuesandcustomersatisfaction has becomeworldwidefocal point for
the success of the bank.

INTRODUCTION
Retail banking is, however, quite broad in nature it refers to the
dealing of commercial banks with individual customer, both on
liabilities and assets side. Fixed,currentand saving accounts on the
liabilities side, and mortgages, loans (personal, housing, auto and
educational) on the assets side, are the important products offered by
the banks. Related ancillary services include credit cards or depository
services. Retail banking refers to banking services to individuals and
small business where the financial services are dealing with large value
of transactions. This is in contrast to wholesale banking where the
customers are large viz; multinational companies, government,
government enterprises and the financial institutional in small number
of high value transactions.
The concept is not new to the banks but now it is an
important and attractive market segment that offered opportunities for
growth and profit. Retail banking and retail landing are often used as
synonyms but in fact, the letter is the part of retail banking. In retail
banking all the needs of individual customers are take care in a wellintegrated manner.
TODAYS RETAIL BANKING SECTOR IS CHARACTERISED BY THREE
BASIC CHARACTERISTICS:
multiple products (deposits, credit cards, insurance,
investments and securities)
multiple channel of DISTRIBUTION (call centers, branch and
internet)

 multiple customers groups (customers, small business and

corporate)

THE FEATURE OF RETAILBANKING: A GLOBAL PROSPECTOUS

As we have working with our existing bank clients inside and outside
country, we have been struck by the rapid and provocative changes
facing the retail sector as the direction of change seems to vary from
country to country.Retailbanking working vigorously to address new
technical, regulatory and competitive liabilities, collectively.They are
trading co-determining strategies and tactics needed to secure their
franchises and future.
This project addresses three questions from a global prospective.
What are the key factors driving the universal changes in retail
banking?
Where will these drivers take the industry in the future?
What are the general strategies retail banks toundertake to
succeed over the next decade?
This study not a academic exercise, rather, it has grown out of a
common threat of themes which are emerging from client assignment
worldwide. These themes have been assign and micro-economics
analysis undertaken in order to how they operate and where they have
taken the industry.
Trends underway: so what are the trends that we see in retail banking?
Our core conclusion is that the retail banking industry, owing to the
verifying of factor, is currently not susceptible to scale economies. By
this, we mean that retail banks do not seems to get any more efficient
as they get larger. If anything reverse appear to the case. However,
there are a number of strong reasons to suppose that this will change
in the future. We believe that retail banking will be
susceptibleincreasingly to scale economies. In turn, this will create
pressure for the industry to restructure.

Analogies from other industries support this trend of thought. We have

recently assessed to deregulate industries, the power industry and the
telecommunication industry and noted that the force which drove their
restructure, and the consequence. Modifying the driving forces for
these industries to those circumstances which are particular in retail
banking, we have been able to come to a vision of how theretail
banking industry is likely to restructure is over to decade. We have look
other trendsalso. Technology in particular will change the retail banking
industry fundamentally in the year to
Come. The first key consequence is that bank will lose their monopoly
as center for money transmission.
In other worlds, the activity of transmitting from one person or on
company to another will increasingly be able to carry out a variety of
providers. As with telecommunication, vigorous cost competition will
result.
The second key consequence of technology will be proliferation of
distribution channel for retail banking products. Whereas in the fast,
the bank branch was the only channel for distribution most financial
service products, in the future a number of different channels will
continue to erode the branchs predominance. Many of these we are
currently familiar with: telephone, especially mobile phones, ATM,
Email etc.
In addition, however, new channel are slowly emerging from the
primordial shop of the information superhighway, though we are guess
at how they will affect the distribution of retail banking products.we are
confident that these will ultimately supplement the other alternative
channel and further erode bank branchs share.
Consequence of these trends will be wholesale restructuring. We
believe that retailbanking will disaggregate into an interlinked portfolio
of activities with three broad categories:
Product
formulators:
within
retail
banking
there
will
beincreasingly division on or standalonecompanies focus on
formulatingproduct such as mortgages and saving for delivery
either direct to client or to intermediately.
Customer getaway: we believe that an opportunity for an
intermediary to capitalize on superior customer knowledge and
efficient delivery channel to sale and service a range of product
to individual customer through a number of delivery channel of
customer choosing.

 Industry service: increasing the support function which are at

present woven in to the fabric of the bank will be seen as
peripheral supporting activity, and spun off to either separate
division within a bank or the third party outsource providers.
This will eventually create an industry for bank service, with new
provider offering a brand range of support activities.
The evaluation outlined above will vary significant by country. This will
firstly because the structure of retail banking industry is different in
each nation - a legacy of historical market evaluation and regulation. In
addition, the manner and rate at which market will be deregulating in
the future will also vary. This means that not only retail banking
industry in different countries start from a different point, but that its
change trajectory in the future will also very as the result of national
idiosyncratic deregulation. The bank of the future will note win by
creating the single strategy,rather each of its activities within products.
Customer channels and support services will be the subject of a
discreet business unit strategy, which will be benchmark against
market-segmented customer demand, profitability, and competitors
businesses in this area. Lets site an example i.e. how many people
visited departmental store a day? A answer is simple much more
people visit store then the bank branch. What does it mean and who
has more information in this respect? Naturally the store has much
more information compare to the bank.
A corollary of this elevation will be that branches will increasingly
but one of a number of channel of distribution to customers. As a
result, there is no decline both as a percentage of all the banking
transaction, and in absolute numbers. Winning banks will actively
address this issue, migrating there customer to alternate channel
where appropriate.
As with any global-oriented study, above conclusions are broad and
must be interrupted by any financial institution in the light of its
unique circumstances. Nevertheless, We are confident that the
answer to the questions posed will be of value to bank and to other
financial industry executives as they ponder their strategies
alternatives in the future.

R E TA I L B A N K I N G ; T H E I R S T R U C T U R E A N D F U N C I O N :
DEFINITION
Retail banks offer a range of services to the individual customers and
small businesses, rather than the large companies and other banks.
The service can include current account, saving account, investment
advices and brokers, and loans and mortgages. Retail banks perform
two crucial functions for customers: firstly, they enable customer to
bank their money securely, access it easily, and conduct transactions;
and secondly, they provide access additional money to fund large
purchases, such as buying a home. In return for holding customers
funds which they can then invest, banks pay customer interest.
Traditionally retail banks have provided these services directly to the
customers via branches. While many still do this, retail banks now offer
their services by telephone and internet as well. Some operate solely
via the internet and do not have facilities to serve customers at
physical outlets. Other organizations, such as supermarket, have
known entered the banking sector and also offer wide range of banking
services.
It has become more difficult to identify the traditional retail banks a
bank that funds itselfthrough customer deposits and landing because
retail banks now often combine retail and wholesale banking. It is
therefore more relevant to todays banking structure to regard retail
banking as a series of processes rather than an institution.
The intermediate service offered by retail banks (such as looking after
customers money and making loan) and the payment services
(allowing customers to make transactions using debit cards, checks
etc.) means that they have to make funds available to customers at
very short or immediate notice.Thisinevitably means that retail bank
has to manage the risk that more money will be request by customer
than it has available and of customers defaulting on loans. Banks for
this holding stock of liquid assets, maintaining a cushion of capital,
lending to different types of borrower, adjusting interest rates and
screening potential borrowers (credit scoring).

ADANTEGES

 Your money is much more secure then in a box under your bed
and you can buy goods, be paid, and sale thinks without cash
changing hands.
The bank you are familiar with and which knows you can also
offer you a wide range of other services, such as mortgage and
insurance. Your bank may be able to offer you competitive deal
in return for your loyalty as a customer.
Retail banks offer a variety of ways you can assess your account
and manage your money, most notable via internet banking. This
means that you can keep a close eye on your finance and
avertmoneypotential problems.
DISADVANTEGE
Banks are a business, and they need to make money from
looking after yours. If the bank decide to apply charge to your
account (within the terms of the accounts), you may only find out
about it afterworld- for example if you accidentally go overdrawn
without permission. If you disagree with a charge, you will need
to contest it to recover the money.
O P P O RT U N I T I E S A N D
R E TA I L B A N K I N G

Challenges

IN

INDIAN

The subject matter of retail banking is of prime importance. In recent

year, commercial banks have witnessed development in the form of
retail landing. All over the world the growth on the field of retail landing
is primary because of the speedy advancement in the IT sector,
evolved macroeconomic environment, numerous micro level demand
and supply side factor and financial market reform. This criterion is
based on the market research report on retail banking.
India has also growth in the field of retail banking. The retail loan
accounted for approximately one-fifth of the entire bank credit. The
retail bank market has detrimentally undergone a change, from the
seller market to the buyers market. The time is no more than same,
when it was difficult to get loan from the bank. This indigent that the
retail loan market has sown phenomenal growth and development over
recent years.
The market research report that were made exclusively for the Indian
retail banking market indicated, that India offers tremendous
opportunities in this field.Further indicated that retail banking markets
a booming sector in India.
One of the key contributors for the boom in the Indian banking industry
is the increasing ratio of the Indian middle class. The number of people

falls in the category of middle class is increase rapidly. The younger

population
of
the
country
has
increased
not
only
its
purchasingpower;but also comfortable acquiring personal debts as
compare to their older generations. This dual combination of
unceasingpurchasing power and comfort acquiring personal loans has
contributed major in the development of the retail loan sector in India.
The retail banking offers development opportunities, and also offers
changes on the other hand. These challenges are listed in the market
research report made on the retail banking. Further growth and the
success of the retail market (in the banking sector) will depend on the
capacity and ability of the bank to meet with the challenge and the
market is the best use of the opportunities.
The technological based efficacy in the operations would give the retail
banking market a competitive age and will contribute in the success of
the business in India. Prime importance has to be given to customer
interest.

S C O P E F O R R E TA I L B A N K I N G I N I N D I A

Overall increase in economic activity, increasing the purchasing

power. The rural area has a large purchasing power at their disposal
and this is an opportunity to the market retail banking.
India has 200 million household and 400 million middle class
populations more than 90% of the savings come from household
sector. Falling interest rates resulted in a shift, now people want to
save less and spend more.
Nuclear family concept is gaining much importance which may lead to
large savings; large numbers of banking services to be the provider are
day by day increasing.
Tax benefits are available for example in case ofhousingloan the
borrower canavailtax benefits for the loan repayment and interest
charge for the loan.
This document analyzed the key policy issues relevant to the retail
banking sector and highlighted the role of financial inclusion,
responsible lending assessto finance, and customer9 protection. In this
context that one is reminded of the needs to develop the standard and
code for banking.

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

MANAGEMENT - UCO BANK:

Name
ShriArunKaul
Shri S.Chandrasekharan
Shri Uma Shankar
Shri Ram Avtar Sharma
Shri N R Badrinarayanan
ShriPravinRawal
Shri Sebastian Luckose Morris
ShriManoj Kumar Gupta

Designation
Chairman and Managing director
Executive Director
Director
Director
Executive Director
Director
Director
Director

UCO Bank focusing on lending to retail, SME and

farm sector
Kolkata, June 26: UCO Bank is focusing on lending to retail, SME and
farm sectors as the capital-to-risk weightage was lower in these
categories, the bank's chairman said Tuesday.
Bank's chairman and managing director ArunKaul also said that it will
also need a capital inflow of Rs.14,000 cores, as per Basel III standards,
to adhere to its growth targets in the next five years and was
considering various possibilities to tap funds.
"We are also focusing on lending to retail, SME and farm sectors where
the capital-to-risk weight age is lower," Kaulsaid. The bank now has 60
percent of its advances coming from the corporate segment, with only
8.5 percent from retail. The bank's domestic advances have registered
a 15.65 percent growth to touch Rs.107, 840cores by March 2012. The
figure was Rs.93, 246cores in the previous year.
The growth in domestic deposits is 4.11 percent at Rs.142, 017cores in
March 2012, compared to Rs.136, 414cores a year back.
The bank is eying to take its number of branches to 2,500 by March
2013. In March, 2012, it had 2,394 branches.
It also opened five new asset management branches at Bhubaneswar,
Bhopal, Chandigarh, Lucknow and Patna. (IANS).

Capital structure:
The authorize share capital of the bank is Rs. 750 core. The paid up
capital as on said date is Rs. 6647122400/-(664712240 equity shares
of Rs. 10 each.)

Distribution Channel :

The vendor should be having all India distribution channel with their
own offices/distribution Centres/warehouses in state capitals so that
they are able to supply computer stationery and computer peripherals
to all UCO Bank Branches/offices within stipulated time. However,
Vendors having Regional presence with good network in the local area
in Northern, Southern, Eastern, Western & North Eastern States of the
country (covering all states/UT in that Geographical Region) may also
apply for empanelment for that particular Region.
BUSINESS GROWTH:
Total business at the end of Jun 2011amounted to Rs. 223,626
crore.as compare to 200623 in Jun 2010.exhebiting a growth of
11.47% on year to year basis.
CASA deposit stood at Rs. 30841crore as on Jun 2011agentsRs.
27318 corea year ago registeringyear to year growth of 12.90%
add by 30.48% rise in current deposits and 9.14% in saving
deposits.
Advance of the bank at Rs. 96092 core at the yearend of jun2011
grew by 17.55% year to year from Rs 81747 core at the end of
jun2010.
Credit deposit ratio improve to75.35% as at the jun2011from
68.77% jun2010.
Wholesale Banking Service:
Wholesale banking is the provision of services by banks to the like of
large corporate clients, mid-sized companies, real estate developers
and investors, international trade finance businesses, institutional
customers (such as pension funds and government entities/agencies),
and services involves dealing with other banks, the central bank, listed
and private companies, and investment institutions.
Wholesale banking also is an option that is open for real estate
developers, market investors and other businesses that operate in the
buying and selling of properties and other forms of investment. The
advantage of wholesale banking in this application is the easy access
to the total financial portfolio, which makes transfers between
accounts much simpler.
Wholesale banking also includes features that allow for efficient
transfers of stock ownership, funds and other financial instruments
between financial institutions.

 Re t a i l Ba n k i n g :
All Individuals above 18 years of age, having accounts under Savings
Bank/Current Account/Fixed Deposit Accounts/ Loan Accounts are
offered Internet Banking Services under Retail Banking/Personal
Banking.
F o r e x & Tr e a s u r y S e r v i c e s :
UCO operates in the Forex Market in Singapore as well as abroad. Our
forex treasury is equipped with state of art technology and
professionally skilled staff to handle forex treasury operations
efficiently.
UCO deals in all the important international currencies. Our Forex
Treasuries generally undertake the following treasury related activities

Quoting Competitive rates for Forex Spot/Forward Transactions

Foreign Currency Swaps

Interest Rate Swaps (IRS)

Forward Rate Agreements (FRA)

Forex/Local Money Market Operations

R AT I N G

CRISIL AA/AA+ for UCO Banks debt instruments

Rs.1.85 Billion Perpetual Bonds

AA/Stable (Assigned)

Rs.4.50 Billion Upper Tier II Bonds AA/Stable (Assigned) Rs.8 Billion

Lower Tier II Bonds
AA+/Stable
(Assigned)
Perpetual
Bonds
Aggregating Rs.4.50 Billion AA/Stable (Reaffirmed)
Upper Tier II Bonds Aggregating Rs.12.95 Billion AA/Stable (Reaffirmed)
Lower Tier
(Reaffirmed)

II

Bonds

Aggregating

Rs.90 Billion Certificates of Deposit

Rs.9.75

Billion

AA+/Stable

P1+ (Reaffirmed)

CRISIL has assigned its AA+/Stable rating to UCO Banks Rs.8-billion

Lower Tier II bond issue, and AA/Stable rating to the banks Rs.4.50billion Upper Tier II bond and Rs.1.85 billion Perpetual bond issues.
CRISIL has also reaffirmed its ratings on the banks existing debt
instruments at AA+/Stable/P1+. The ratings continue to reflect the
expectation of support to UCO Bank from the Government of India
(GoI), the banks majority shareholder, both on an ongoing basis and in
the event of distress, and the banks large scale of operations, in terms

of asset size. These rating strengths are partially offset by UCO Banks
average resource profile and the consequent adverse impact on its
profitability, and its average asset quality. In its ratings on Indian public
sector banks (PSBs), including
UCO Bank, CRISIL factors in the high likelihood of the systemic support
they are likely to receive from GoI in the event of distress. This is
because GoI is both the majority shareholder in the PSBs and the
guardian of the domestic financial system. The stability of the banking
sector is of prime importance to GoI, given the criticality of the sector
to the economy, the strong public perception of sovereign backing for
PSBs, and the severe political repercussions of a bank failure. CRISIL
believes that the majority ownership creates a moral obligation on GoI
to support PSBs, including UCO Bank. UCO Bank is a large PSB with
total assets of Rs.1115 billion as on March 31, 2009.
However, UCO Banks profitability has been constrained primarily by
the small share of low-cost current account and savings account
(CASA) deposits in its total deposits, and low fee income. The share of
low-cost deposits in the banks total deposits was around 26 per cent
as on March 31, 2009, as against the system average of around 33 per
cent. The banks net profit margin (NPM) reduced marginally to around
0.48 per cent during 2008-09 (refers to financial year, April 1 to March
31), from 0.51 per cent in 2007-08. While UCO Banks NPM is expected
to improve in 2009-10 on the back of reduced cost of funds, CRISIL
believes that the bank will be able to sustain this improvement over
the long term only if it is able to significantly improve its resource
profile.
UCO Banks asset quality continues to be moderate. The banks gross
non-performing assets (NPAs) have been on a declining trend; its gross
NPAs reduced to 2.01 per cent as on December 31, 2009, from 2.21
per cent as on March 31, 2009. However, its restructured standard
assets (RSAs, including applications pending for restructuring) as a
proportion of net advances were high at around 6.24 per cent as on
March 31, 2009, against an industry average of around 4.2 per cent.
The banks ability to contain incremental slippages and improve its
asset quality will be a key rating sensitivity factor.
Outlook: Stable
CRISIL believes that GoI will continue to extend need-based support to
UCO Bank, which will help the bank maintain adequate capitalization
over the medium term. The outlook may be revised to Positive in case
of a large and sustainable improvement in the banks asset quality and
earnings profile. Conversely, the outlook may be revised to Negative
in case of deterioration in the banks asset quality and earnings profile.

About the Bank

UCO Bank is a large PSB, with total assets of Rs.1115 billion as on
March 31, 2009. It reported a profit after tax (PAT) of Rs.5.58 billion in
2008-09, up from Rs.4.12 billion in 2007-08. For the nine months
ended December 31, 2009, the bank reported a PAT of Rs.6.33 billion,
as against Rs.4.55 billion in the corresponding period of the previous
year.
B RA N C H S E R E RV I C E :
Welcome to the networked world of UCO bank. You can open your
account at any branch interested to your residence or office and assess
at any branch in the city or anywhere in the country.

AT M s :
All savings (individual) / current (individual) account holders are
eligible for international visa debit card. For joint account add-on card
facility is available. Debit card can be linked to multiple accounts
maintained by account holder with our bank.
Service options:
Balanceenquire.
PIN change.
Cash withdrawals from all linked account.
Fast cash.
Mini statement.
Transfer of funds between accounts linked with the card.
Product enquires.
Access in more than 46883 ATMs of 37 banks in India free of
cost.(up to 5 transactions per month for withdraw from other
banks ATMs). UCO international visa debit card is accepted at
more than 10 million merchant outlets points of sale (POS)
worldwide.
In case of loss/theft of your debit card please contact our tall-free
number 18003450123.
INTERNET BANKING:
Any time anywhere banking.

 For retail, kids and corporate customers.

Account related informations, balance enquiry, account
statement, status of cheque deposited, cleared, stop payment of
cheque instantly, term deposit details, loan details, repayment
schedule etc.
Fund transfer from self-account to another account, transfer to
third party account with in UCO bank.
Service requests:- statement of account, issue of cheque books,
demand drafts, fixed deposit opening, request for loan facility,
change of mailing address etc.
Utility bill payment:- payment of electricity, telephone bills,
insurance premia etc.
Tax payments: direct taxes and indirect taxes(central excise &
service tax).
MOBIL BANKING:
For retail internet banking, corporate internet banking and nonbanking customer.
SMS to 56161 and get account related information like balance
enquiry, last 3 transactions,chaque status enquiry.

Get alert operative account balance, large amount transaction,

preferred high limit, preferred low limit, bank induced transaction, salary
credited, cheque bounced, cheque cleared, cheque returned, reminder for
bill payment, reminder for term deposit maturity, loan repayment, etc.
S A V I N G A C C O U N T:
A D D FA C I L I T I E S W I T H Y O U R S AV I N G A C C O U N T:
Free ATM-international visa debit card.
E-banking.
Mobile banking.
Online bill payment facility.
Inter-bank transfer payment through RTGS/NEFT for immediate
transfer of funds.
Multicity personalizescheque.
Magic cheque (a pre-funded instrument).

 More than 1200 CBS branches.

Accidental death insurance cover up to Rs. 5 lac.
Customized saving account.
Our Banasthali branch total number of saving account holders is 7349
and total amount is Rs. 55903118crore.
C U R R E N T A C C O U N T:
A D D FA C I L I T I E S W I T H Y O U R C U R R E N T A C C O U N T:
Free ATM-international visa debit card.
E-banking.
Mobile banking.
Online bill payment facility.
Inter-bank transfer payment through RTGS/NEFT for immediate
transfer of funds.
Multicity personalizes cheque.
Magic cheque (a pre-funded instrument).
More than 1200 CBS branches.
Accidental death insurance cover up to Rs. 5 lac.
Customized current account.
Our Banasthali branch total number of current account holders is 2202
and total amount is Rs. 532844333crore.
UCO DHAMAKA FIXED DEPOSIT SCHEME:
1. Title of the Scheme: UCO Dhamaka Fixed Deposit Scheme
2. Period of operation of the Scheme: The scheme would be applicable
from 28th February, 2011 and remain valid up to 30th April, 2011.
However, the Bank would reserve the right to modify, withdraw or
extend the scheme anytime without any prior notice.
3. Eligibility to Open Account: Eligible Depositors under the Scheme
would be same as eligible depositors in Fixed Deposit Scheme currently
available in the Bank.
4. Period of Deposit: 400 days.
5. Amount of Deposit Minimum Amount: Rs.5, 000/- and thereafter in
multiples of Rs.1,000/-. Maximum Amount: Less than Rs.1crore.

6. Rate of Interest
9.35% per annum compounded quarterly.
The quarterly compounding would be done for the four quarters and
simple rate of interest would be paid on the compounded amount after
the four quarters for the remaining days of the above deposit period.
In addition to the payment of interest along with the principal at the
time of maturity, Interest payment (at the option of the customer) is
allowed also at monthly and quarterly rests.
7. Premature Withdrawal: In all cases of premature withdrawals, the
interest would be payable at 1% below the applicable rate under the
normal fixed deposits for the period for which the deposit has remained
with the Bank as on the date of deposit or present rate, whichever is
lower.
8. Loan/Overdraft against the Deposits: Facility for availing
loan/overdraft against Deposits under the Scheme would be available
as per existing guidelines for availing loan/overdraft against Banks
own Fixed Deposits.
9. Nomination: The facility of nomination would be available under the
Scheme.
10. Payment to Nominee/ Legal Heirs: In the event of the death of the
depositor, the deposit would be paid to the nominee/legal heirs as per
the existing rules.11. Participating Branches: All branches of the Bank
would be authorized to open the Deposit Accounts under the Scheme.
12. Automatic Renewals: Automatic renewals on maturity under normal
Term Deposits would be allowed at card rates prevailing at the time of
maturity for a further period of 12 months. The automatic renewal on
maturity would be continued as per the existing option for interest
payment exercised by the customer at the time of opening the account
i.e.,
at
either
monthly
or
quarterly
rests
or
interest
quarterlycompounded and paid along with the principal at the time of
maturity.
13. Tax Implications: Tax would be deductible at source as per the
prevailing Income Tax rules.
14. Transferability Transfer of Fixed Deposit under the Scheme: within
any branch of the Bank would be Permissible without any charge as per
the existing procedure.
15. Special benefits for Senior Citizens/ Staff / Ex-Staff/Senior Citizens
& Ex-Staff Deposits from these categories of depositors shall be

allowed incentive as per the existing norms. Accordingly, the

applicable rates for these special categories would be as under:
a) Senior Citizens: Additional 0.50% or @ 9.85%
b) Staff: Additional 1.00% or @ 10.35%
c) Ex-Staff: Additional 1.00% or @ 10.35%
d) Ex-Staff Sr. Citizens: Additional 1.25% or @ 10.60%

The overall amount ceiling for Ex-Staff/ Ex-Staff Senior Citizens for
being eligible for higher rate under the scheme shall be equal to the
terminal benefits plus Rs.10 lacks, as usual.
16. Acceptance of Deposits under the Scheme Deposits under the
Scheme would be accepted only when accruing as a fresh Fixed
Deposit for the Bank. In other words, the existing Fixed Deposits cannot
be directly renewed under the scheme through a premature extension
as usual and the existing Fixed Depositors who wish to convert into the
Scheme would have to compulsorily take premature payment of their
existing deposits and pay the usual penal charges for premature
closure. However, any existing Fixed Deposit maturing during the
scheme period would be eligible to enter into the scheme as it would
be a fresh deposit for the Bank under the Scheme.
17. Applicability of normal Fixed Deposit Rules Other than the special
terms and conditions of the scheme, the deposits under the scheme
would be governed as per the normal Fixed Deposit Rules of the Bank.
Our Banasthali branch total number of fixed deposits holders is 936
and total amount is Rs. 101387309crore.
LOAN :
U C O b a n k o ff e r e d w i d e v e r i t y o f l o a n p r o d u c t s s u i t
your
requirements.
Coupled
of
convenience
n e t w o r k e d b r a n c h e d / AT M s a n d f a c i l i t y o f e c h a n n e l
like internet and mobile banking. UCO bank brings
banking at your doorstep. Select any of our products
and provide your detail online and our representative
will connect than you for getting loan.
UCO HOME

LOAN:

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

ofinterest 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.

Eligibility:
You are eligible for a loan under UCO HOME individual (salaried/Nonsalaried) 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.
Quantum of loan
The area-specific maximum limits for construction/purchase are as
under :
Location/Centre

For
construction/Purchase

ForRepair/Extension/
Renovation

Metro/Urban/Semi-Urban

Rs. 100 lacks

Rs. 25 lacks

Rural

Rs. 25 lacks

Rs. 7.5 lacks

Maximum limits for Furnishing are Rs.5.00 lacks in Metro/Urban/SemiUrban areas/ rural areas.
Loan Entitlement
Least of the Following:
80% of the project cost.
Existing deduction +EMI should not exceed 60% of the gross
income.
60 times of net monthly income.
P r o c e s s i n g Fe e
0.5% of the loan amount maximum Rs. 15000/-

 Re p a y m e n t
The maximum period of repayment is 25 years/300 EMI but should not
bebeyond retirement age, in case of salaried class and 65 years in case
of non-salaried class.
Security & Guarantee
EMTD OF property financed.
Guarantee of spouse if not co-applicant. In case of unmarried
persons, guarantee of PF nominee
No third party guarantee
Prepayment charge
No pre-payment charges are to be levied if loan is pre-paid from
own source. 2% of the prepaid amount, if the loan is prepaid within
3 years. No prepayment charges thereafter.
Ta x B e n e fi t s
Tax relief on principal and interest components of this loan
Would be available as per provisions prevailing under Income Tax Act.
Insurance
Insurance cover on house property under UCOGrihaRakshaYojana
scheme to cover the risk of damage to home by natural calamities.
UCOGriha Lakshmi Yojana to cover the outstanding loan in case of
accidental or natural death of borrower.
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.
Eligibility
Salaried Borrower
Minimum monthly take-home pay would be Rs. 10000/- + EMI of the
proposed loan.
Non-salaried Borrower
Minimum income should be Rs. 2.40 Lacks per annum during the
proceeding year.
Minimum average income for 3 preceding years should be Rs.

1.50 lacks.
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.
M a rg i n Re q u i re m e n t s
Maximum Finance shall be 85% of the Ex- Showroom Car Price.
Quantum of loan
Maximum Loan Amount Rs. 25.00 lacks.
Re p a y m e n t
Maximum 84 Equated Monthly Installments.
Processing Charges
1% of the loan amount maximum Rs. 1500/-.
Prepayment Charges
No Pre-payment charges up to loan amount of Rs. 2 lac.
E D U C AT I O N L O A N
Scope:
The scheme extends a helping hand to meritorious students desirous
of pursuing higher study either in India or abroad.
Eligibility
S t u d i e s i n I n d i a 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.
Pos t- Gra dua tion:
MCA, MBA, MS, etc.
Courses conducted by CIMA London, CPA in U.S.A., etc.

 Age limit
F o r G r a d u a t i o n : between 18 & 25 years
F o r P o s t - G r a d u a t i o n : between 21& 28 years
F o r S C / S T s t u d e n t s : up to 30 years
Eligibility
should be Indian National
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.
Security
U p t o R s . 4 . 0 0 l a c k s No security
Above Rs. 4.00 lacks&uptoRs. 7.50 lacks:
Collateral security in the form of a suitable 3rd party guarantee
Above
value.

Rs.

7.50

l a c k s : collateral securities of suitable

M a r g i n UptoRs. 4 Lac - Nil

Above Rs. 4 Lacks Studies in India - 5%
Studies Abroad - 15%
Service
charge

C h a r g e : There is no processing fee /no service

Disbursement
Disbursement in stages as per the requirement directly to institutions.
Interest Rates Base Rate+3.00% for loan uptoRs. 4.00 lacks
Base Rate+3.75% for more than Rs. 4.00 lacks
Re p a y m e n t Pe r i o d
The loan shall be repaid in 5-7 years after moratorium.
Re p a y m e n t H o l i d a y

Course period+ 1year or 6 months after getting job whichever is

earlier.1% interest concession may be provided, if the interest is
serviced during moratorium period.
UCO CASH
This is a Personal Loan scheme to meet the domestic needs like
marriage, medical, traveling and other social obligations.
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 tieup 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 lacks whichever is lower.
Additional amount may be sanctioned within the quantum ceiling to
the existing eligible borrowers.
Security
Loan will be on clean basis with two guarantors Spouse and other
than Spouse having equal income with that of the applicant.
Re p a y m e n t
The loan amount with interest is repayable in 48 EMIs for men and 60
EMIs for women through salary deduction of employee borrower, but
one year before retirement.
S e r v i c e C h a r g e : 1% (minimum Rs.750/-)

CUSTOMER SURVEY
Our branch managerShri R.M. Meenasir asksme to go to Modi
university and Banasthali mode to meet customer. We collect 100
forms from our branch then went to Modi University Newai and meet
student through registrar Shri O.P. Gupta and ShriRamlalmeena
researcher and Hamantjain sir detailed all information related to
account opening at our uco bank Banasthali. We ask customers to fillup
the account opening form and provide the ATMS on the spot.
After that we went toBanasthali mode and met shop keeper Mr.Jain. He
is also owner of Jain Tiffin center. Then we introduced and conveyed to
him to open his customers and relatives account in UCO bank.He
promised to help us in account opening, so we provide him the bank
account opening form.
We hope that the data of survey findings are useful to you when
planning strategies and adapting your business models to attain
greater customer loyalty and satisfaction.
Our survey suggests banks to remain competitive, they must:

Give customers the opportunity to choose by making promises

and service offers more transparent.

Rebalance fee structures to achieve the clarity and sustainability

required by regulators and investors.

Help customers to share their own banking experiences by

improving how they provide information and advice, recruiting online
affinity groups and by developing flexible loyalty programs.

Develop models according to needs of customer by reprioritizing

spending, including increasing the use of low-cost digital models and
using more innovative technology.

CONCLUSIONS
Retail banking is the fasted growing sector of the banking industry with
the key success by attending directly the needs of the end customer
having glorious future in coming years. There is a need for constant

innovation in retail banking.

Retail banking is the booming sector. It is dynamic in nature. There has
been significant changing in demographic profile of customers. there is
huge market to cover so bank have greateropportunity.There is scope
of new innovation products banks have to come with the new
innovative products and service to retain market.
Limitations of Retail Banking
The bank into retailing will have to face following bottlenecks in its
operations
Huge sales and promotion expenditure
Managing human resources
Managing technology
Pressure on margins
Continuous follow-up
Attitude hurdles
Security problems.
Huge Sales and Promotion Expenditure:
In order to survive in the world of fierce competition with so many
players, each bank has to incurshuge amount of funds on sales and
promotion. No bank can deny this expenditure because they need to
build their image among the customers, to get business.
Managing Human Resources:
Retail banking caters the need of individual customers. For this
purposequalified and trained staff is needed to be maintained. For
training thoseemployees, banks spend a huge amount of money.
Sometimes these trainedpersonnel leave the job halfway which
increases the expenditure of the bank.
Apart from this banks also have to maintain various cells regarding
customergrievance, employee grievance, etc. which again increases
the expenditure ofthe bank.
Managing Technology:
Technology plays an important role in retail banking. Today majority
oftransactions in banks are being done through ATMs, Mobile banking,
Phone banking,Internet banking. For this purpose it is necessary
effective and efficient management of technology, Maintained incurs
huge expenditure,whichmay sometimes create problem for the banks
to accumulate funds for thesepurposes.
Pressures on Margin:
To retain the existing customer base as well as to expand, the banks
arepressurized to keep the minimum prices possible. Thus the banks

have hugepressures on their margins.

Continuous Follow-up:
In order to earn more profit banks are going for mass banking. But in
this racethe maintenance of the customer base becomes very difficult.
The problems likeNPAs and delay in payment of usage changes occur
which leads to losses forthe banks. Thus the banks have to maintain
continuous follow-up programs,which require efficient technology,
human resources as well as surplus funds tocontrol expenditure on
such programs.
Attitude Hurdles:
Earlier the major players in the banking industry were public sector
banks. Butdue to the advent of liberalization and globalization, private
and foreign sectorsbanks have come up which has resulted into a
drastic change in the IndianBanking scenario. With these banks the
latest technology has also come upbutstill a huge chunk of people does
not avail it with the benefits. People stillprefer going to banks and carry
out the regular paper work which can be done very easily through their
mobile phones and internet. Thuspeople from rural areas should be
well acquaint with latest information and should beeducated and their
attitude needs to be changed, since it is a major hurdle for thegrowth
of the retail banking products.
Security Problems:
Retail banking products like net banking, phone and mobile banking
and ATMsare solely dependent on technology. If there is any problem in
the network or asystem as a whole, it would result into huge losses for
the banks as well as theircustomers. Therefore, proper security
measures should be placed to securecustomers date and identification
codes.
This study has helped me to know the whole functioning of one of the
majorpillars of our economy that is Banks. With the Advent of
Globalization andLiberalization new ways to improve customer
relationship have emerged to the banks. These new ideas will help
them in acquiring new customersand maintaining the existing
customer base. One of the new fast emerging tool with banks to
improve up on customer retention and satisfaction is Retail Banking
and by adopting this many banks have achieved growth in
theirbusiness like never before

BIBLOGRAPHY
Book referred:
Retail marketing management :-by debit gilbert
Retail management:-by Gibson.vedmna
WEB SIDE VISITED
http://www.google.co.in
www.uco.online
www.uco.com
www.rbi.com
www.report.rbi.org.in