CHAPTER-1

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

1.1 INTRODUCTION TO ORGANIZATION STUDY

 An organization study is indispensable for all professional
students, to have a practical knowledge of how an organization executes its various functions to
achieve its objectives. It gives a clear picture of the various departments in an organization and
the functions which they execute to accomplish their objectives and thereby the overall
objectives of the organization. Each department is not a separate entity. No department can
function properly without the cooperation of others. Therefore, for a successful organization it is
very important to coordinate the efforts of each department to attain effectiveness and efficiency
in the performance. An organization study helps students to understand how the organization
harmoniously integrates various functions including Finance, HR, Marketing, Systems etc. so
that their overall objectives are met.

Further, an organization study enables students to know the

Strengths, Weakness, Opportunities and threats of the organization. It helps the organization to
identify its strengths and opportunities and at the same time to take measures to overcome their
weakness and threats.

The industry where I was doing my Organizational study was the

banking sector. India has a well developed banking system. Most of the banks in India were
founded by Indian entrepreneurs and visionaries in the pre-independence era to provide financial
assistance to traders, agriculturists and budding Indian industrialists. Presently, SBI is the largest
commercial bank in the country. The role of central banking in India is looked by the Reserve
Bank of India, which in 1935 formally took over these responsibilities from the then Imperial
Bank of India. Reserve Bank was nationalized in 1947 and was given broader powers. In 1969,
14 largest commercial banks were nationalized followed by six next largest in 1980. But with
adoption of economic liberalization in 1991, private banking was again allowed.

UCO Bank is a commercial bank established in 1943. The idea

to establish the bank was first conceived by G.D. Birla, the famous industrialist, after the historic
'Quit India Movement' in 1942. The idea was culminated on the 6th of January 1943, when The
United Commercial Bank Ltd. was born with its Registered and Head Office at Kolkata. Along
with 13 other major commercial banks of India, United Commercial Bank was nationalized on
19th July, 1969, by the Government of India. Thereafter the Bank expanded rapidly. Today the
UCO Bank is one of the best banks in India.

1.2 STATEMENT OF THE PROBLEM

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

1.3 OBJECTIVES

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

Chhattisgarh.

2. To study the performance of UCO Bank, Bacheli.

3. To analyze the management practices followed in various departments within the UCO
Bank, Bacheli.

1.4 RESEARCH METHODOLOGY

Research Methodology is a way to systematically solve the

research problem. In any research, various steps are adopted in studying the problem along with
logic behind them. The Research Methodology includes description about why the research
study has been undertaken how the hypotheses, if any has been defined, what data have been
collected and what particular method have been adopted. So by framing a right methodology it is
possible to gain a deeper insight into the research problem and also methodology of any study
would help planning executing bringing relevance and reviving the purpose of the study.

All the Information for the project was procured through

discussions and informal interviews with the staff of UCO BANK in Bacheli (a small town in
Chhattisgarh). The interviews conducted were basically informal.
1.4.a Data Collection
Information was collected from the company in two ways. They are

1.4.b Primary Data:

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

1.4.c Secondary Data:

Secondary dates are collected from

1. UCO Bank’s Policy Manual: UCO Bank releases its policies manual every year. The one
I referred was released in 2009.

2. UCO BANK website: The bank has a very updated website where all the information are
of recent happenings

3. Other Website: I also took information from other website, some of the websites are

I. RBI Homepage(June, 2009)

II. Ministry of finance(June, 2009)

1.4.d Time Frame

The study was conducted for a period of 4 weeks (20th May 2009 to 19th June 2009)
1.5 SCOPE OF THE STUDY

From the Organization point of view, the organization study

helps the organization to understand the efficiency of each department and the relevance of each
department in attaining the overall purpose of the organization. It helps the organization to hold
each department responsible for the activities entrusted on them. By conducting SWOT analysis,
the branch could understand its Strength, Weakness, Opportunities and Threats. By the effective
usage of strengths, UCO Bank can tap the opportunities and at the same time take necessary
preventive measures to overcome weakness and eliminate threats. As a student, I was able to
have a practical knowledge and understanding about the functioning of the organization.

Managers play an important role in the organization like decision

making, allocation of resources, direction of activities, etc. thus it is necessary for a management
student to understand and study an organization through a training program in a real industrial
set up. The outcome of the study is beneficial to the top management in order to know the lapses
in the branch. Also the SWOT analysis helps the top management to know the possible
opportunities and threats faced by the branch. This study also helps the stakeholders to know the
position of the bank

1.6 LIMITATIONS

1. The main limitation faced was the Bank provided very limited information about the
project as most of the information required was extremely confidential and fell outside
the Bank’s security policy.

2. Most of the employees could not be able to spare enough time to share their experiences.

1.7 PRESENTATION OF THE REPORT

The presentation of the report is in the form of five chapters i.e.:

Chapter 1- Introduction

This chapter includes the statement of the problem, the objectives of the study undertaken, its
significance, the methodology adopted for the study, scope of the study and the limitations of the
study.
Chapter 2- Industry profile

This chapter contains an overview of the industry. It talks about the banking industry in India. It
gives the insight of the industry and how the scenario in the industry changed over the decades. It
talks about the regulations and about the different types of banks available in India. It also says
about the central bank of India that is the Reserve Bank of India (RBI).

Chapter 3- UCO Bank – An overview

This chapter gives the insight about the UCO Bank. It talks about the products the bank offers
and the duties of an employee in the bank. This also contains the profile of the UCO Bank in
Bacheli in the state of Chhattisgarh.

Chapter 4- Functional analysis of the UCO Bank, Bacheli

This chapter analyzes the working of various departments in the UCO Bank, Bacheli.

Chapter 5-Swot Analysis

This chapter analyses the strengths, weaknesses, opportunities and threats of the organization.

Chapter 6- Findings, Conclusions and Suggestions

\ CHAPTER-2

 INDUSTRY PROFILE
 COMPANY PROFILE
 ORGANIZATION STRUCTURE
2.1 BANK

A bank is a financial institution whose primary activity is to act as a

payment agent for the customer and to borrow and lend money. In financial economics, a
financial institution acts as an agent that provides financial services for its clients or members.
Financial institutions generally fall under financial regulation from a government authority.
Common types of financial institution include banks, building societies, credit unions, stock
brokerages, asset management, and similar business.

The first modern bank was founded in Italy in Genoa in 1406; its name was Banco di San
Giorgio (Bank of St. George). Many other financial activities were added over time. For example
banks are important players in financial markets and offer financial services such as investment
funds.

2.2 BANKING IN INDIA

Banking in India originated in the last decades of the 18th

century. The oldest bank in existence in India is the State Bank of India, a government-owned
bank that traces its origins back to June 1806 and that is the largest commercial bank in the
country. Central banking is the responsibility of the Reserve Bank of India, which in 1935
formally took over these responsibilities from the then Imperial Bank of India, relegating it to
commercial banking functions. After India's independence in 1947, the Reserve Bank was
nationalized and given broader powers. In 1969 the government nationalized the 14 largest
commercial banks; the government nationalized the six next largest in 1980.

Currently, India has 88 scheduled commercial banks (SCBs) - 27

public sector banks (that is with the Government of India holding a stake) like IDBI Bank, ING
Vyasa Bank, SBI Commercial and International Bank Ltd, Bank of Rajasthan Ltd, 31 private
banks (these do not have government stake; they may be publicly listed and traded on stock
exchanges) like Punjab National bank, Vijaya Bank, UCO Bank, Oriental Bank, Allahabad Bank
among others and ANZ Grindlays Bank, ABN-AMRO Bank, American Express Bank Ltd,
Citibank are among the 38 foreign banks operating in the Indian Banking Industry.
2.3 HISTORY OF INDIAN BANKING INDUSTRY

The Indian Banking industry, which is governed by the Banking

Regulation Act of India, 1949 can be broadly classified into two major categories, non-scheduled
banks and scheduled banks. Scheduled banks comprise commercial banks and the co-operative
banks. In terms of ownership, commercial banks can be further grouped into nationalized banks,
the State Bank of India and its group banks, regional rural banks and private sector banks (the
old/ new domestic and foreign). These banks have over 67,000 branches spread across the
country.

The first phase of financial reforms resulted in the nationalization

of 14 major banks in 1969 and resulted in a shift from Class banking to Mass banking. This in
turn resulted in a significant growth in the geographical coverage of banks. Every bank had to
earmark a minimum percentage of their loan portfolio to sectors identified as “priority sectors”.
The manufacturing sector also grew during the 1970s in protected environs and the banking
sector was a critical source. The next wave of reforms saw the nationalization of 6 more
commercial banks in 1980. Since then the number of scheduled commercial banks increased
four-fold and the number of bank branches increased eight-fold.

After the second phase of financial sector reforms and

liberalization of the sector in the early nineties, the Public Sector Banks (PSB) s found it
extremely difficult to compete with the new private sector banks and the foreign banks. The new
private sector banks first made their appearance after the guidelines permitting them were issued
in January 1993. Eight new private sector banks are presently in operation. These banks due to
their late start have access to state-of-the-art technology, which in turn helps them to save on
manpower costs and provide better services.

During the year 2000, the State Bank of India (SBI) and its 7
associates accounted for a 25 percent share in deposits and 28.1 percent share in credit. The 20
nationalized banks accounted for 53.2 percent of the deposits and 47.5 percent of credit during
the same period. The share of foreign banks (numbering 42), regional rural banks and other
scheduled commercial banks accounted for 5.7 percent, 3.9 percent and 12.2 percent respectively
in deposits and 8.41 percent, 3.14 percent and 12.85 percent respectively in credit during the year
2000.

The banking structure in India

RBI

Commercial Bank

Development Bank

Exim Bank

Co- Operative Bank

Local area Bank

National Bank for Agriculture and Rural Development

Land Development Bank

The types of banks those are functioning for satisfying the different aspects of the customers are
given below.

Commercial Bank

Industrial Bank

Agriculture Bank

Exchange Bank

Savings Bank

Central Bank

World Bank
2.4 THE BANKING SECTOR

Table 1: the banking sector analyzed by the RBI

Items SBI &its Nationalized Other SCBs Foreign Banks All Banks
Associates banks
2007- 2008- 2007- 2008- 2007- 2008- 2007- 2008- 2007- 2008-
08 09 08 09 08 09 08 09 08 09
No. of banks 8 7 20 20 23 21 28 30 79 78

No. of offices 1897 2291 1892 1968 348 411 10 10 776 825

No. of 31126 38371 23320 23303 7259 8289 1182 1010 11588 12039
employees
Profit per 3.62 4.43 3.77 4.83 5.70 6.16 19.97 24.78 4.67 5.60
employee (in RS
lakhs)
Capital and 7713 10346 5654 6794 3973 4716 1762 1995 3994 4708
Reserves &
Surplus
Deposits 96734 143863 84000 105285 29349 34610 6827 7136 42026 51970

Investments 32978 51089 2680 32752 12112 14440 3533 4345 14903 18542
1
Advances 74215 105658 60184 76027 22539 27084 5755 5514 31354 38389

Interest income 8803 1274 7132 9212 3087 4004 872 1011 3905 4972
2
Other income 1477 229 1049 1305 739 848 378 496 764 960
6

Interest 5976 8824 5055 6584 2108 2682 379 427 2633 3366
expended
Operating 2124 2870 1483 1755 881 1027 370 410 978 1142
expenses
Cost of funds 5.90 6.07 5.82 6.18 6.13 6.25 4.73 4.51 5.80 6.05
(COF)
Return on 3.65 3.82 3.69 4.01 4.88 5.09 6.56 8.10 4.12 4.43
advances
adjustment to
COF
Wages as % to 15.89 15.06 14.05 13.14 10.34 10.79 19.68 19.45 13.99 13.52
total expenses
Return on assets 0.97 1.02 1.01 1.03 1.13 1.12 2.09 1.98 1.12 1.13
CRAR 13.21 13.96 12.13 13.24 14.34 15.23 13.08 14.30 13.01 13.98

Net NPA ratio 1.43 1.45 0.77 0.68 1.09 1.30 0.77 1.80 1.00 1.05

Source: www.rbi.org

2.5 TYPES OF BANK IN INDIA

 Public Sector Bank

 Private Sector Bank

 Co- Operative Banks

 Foreign Bank

 Regional Rural Bank

2.5.a PUBLIC SECTOR BANK

Nationalized banks dominate the banking system in India. The

history of nationalized banks in India dates back to mid-20th century, when Imperial Bank of
India was nationalized (under the SBI Act of 1955) and re-christened as State Bank of India
(SBI) in July 1955. Then on 19th July 1960, its seven subsidiaries were also nationalized with
deposits over 200 crores. These subsidiaries of SBI were State Bank of Bikaner and Jaipur
(SBBJ), State Bank of Hyderabad (SBH), State Bank of Indore (SBIR), State Bank of Mysore
(SBM), State Bank of Patiala (SBP), State Bank of Saurashtra (SBS), and State Bank of
Travancore (SBT).

However, the major nationalization of banks happened in 1969 by

the then-Prime Minister Indira Gandhi. The major objective behind nationalization was to spread
banking infrastructure in rural areas and make cheap finance available to Indian farmers. The
nationalized 14 major commercial banks were Allahabad Bank, Andhra Bank, Bank of Baroda,
Bank of India, Bank of Maharashtra, Canara Bank, Central Bank of India, Corporation Bank,
Dena Bank, Indian Bank, Indian Overseas Bank, Oriental Bank of Commerce (OBC), Punjab
and Sind Bank, Punjab National Bank (PNB), Syndicate Bank, UCO Bank, Union Bank of India,
United Bank of India (UBI), and Vijaya Bank.
 In the year 1980, the second phase of nationalization of Indian
banks took place, in which 7 more banks were nationalized with deposits over 200 crores. With
this, the Government of India held a control over 91% of the banking industry in India. After the
nationalization of banks there was a huge jump in the deposits and advances with the banks. At
present, the State Bank of India is the largest commercial bank of India and is ranked one of the
top five banks worldwide. It serves 90 million customers through a network of 9,000 branches.

LIST OF PUBLIC SECTOR BANKS

IDBI Bank Ltd.

UCO Bank

Union Bank of India

United Bank of India

Vijaya Bank

Allahabad Bank

Andhra Bank

Indian Bank

Indian Overseas Bank

Bank of Baroda

Oriental Bank of Commerce

Punjab National Bank

Bank of India

Syndicate Bank

Canara Bank

Central Bank of India

Corporation Bank

Dena Bank
2.5.b PRIVATE SECTOR BANK

Initially all the banks in India were private banks, which were
founded in the pre-independence era to cater to the banking needs of the people. In 1921, three
major banks i.e. Banks of Bengal, Bank of Bombay, and Bank of Madras, merged to form
Imperial Bank of India. In 1935, the Reserve Bank of India (RBI) was established and it took
over the central banking responsibilities from the Imperial Bank of India, transferring
commercial banking functions completely to IBI. In 1955, after the declaration of first-five year
plan, Imperial Bank of India was subsequently transformed into State Bank of India (SBI).

Following this, occurred the nationalization of major banks in India on 19 July 1969. The
Government of India issued an ordinance and nationalized the 14 largest commercial banks of
India, including Punjab National Bank (PNB), Allahabad Bank, Canara Bank, Central Bank of
India, etc. Thus, public sector banks revived to take up leading role in the banking structure. In
1980, the GOI nationalized 6 more commercial banks, with control over 91% of banking
business of India.

In 1994, the Reserve Bank of India issued a policy of liberalization to license limited number of
private banks, which came to be known as New Generation tech-savvy banks. Global Trust Bank
was, thus, the first private bank after liberalization; it was later amalgamated with Oriental Bank
of Commerce (OBC). Then Housing Development Finance Corporation Limited (HDFC)
became the first (still existing) to receive an 'in principle' approval from the Reserve Bank of
India (RBI) to set up a bank in the private sector.

At present, Private Banks in India includes leading banks like ICICI Banks, ING Vysya Bank,
Jammu & Kashmir Bank, Karnataka Bank, Kotak Mahindra Bank, SBI Commercial and
International Bank, etc. Undoubtedly, being tech-savvy and full of expertise, private banks have
played a major role in the development of Indian banking industry. They have made banking
more efficient and customer friendly. In the process they have jolted public sector banks out of
complacency and forced them to become more competitive.

LIST OF PRIVATE SECTOR BANKS

• Bank of Punjab

• Bank of Rajasthan
 • Catholic Syrian Bank

• Centurion Bank

• City Union Bank

• Dhanalakshmi Bank

• Federal Bank

• HDFC Bank

• ICICI Bank

• IndusInd Bank

• ING Vysya Bank

• Jammu & Kashmir Bank

• Karnataka Bank

• Karur Vysya Bank

• Laxmi Vilas Bank

• South Indian Bank

• UTI Bank

2.5.c CO- OPERATIVE BANKS

The Co operative banks in India started functioning almost

100 years ago. The Cooperative bank is an important constituent of the Indian Financial System,
judging by the role assigned to co operative, the expectations the co operative is supposed to
fulfill, their number, and the number of offices the cooperative bank operate. Though the co
operative movement originated in the West, but the importance of such banks have assumed in
India is rarely paralleled anywhere else in the world. The cooperative bank in India plays an
important role even today in rural financing. The business of cooperative bank in the urban areas
also has increased phenomenally in recent years due to the sharp increase in the number of
primary co-operative banks.
Co operative Banks in India are registered under the Co-operative Societies Act. The cooperative
bank is also regulated by the RBI. They are governed by the Banking Regulations Act 1949 and
Banking Laws (Co-operative Societies) Act, 1965.

Cooperative banks in India finance rural areas under:

• Farming

• Cattle

• Milk

• Hatchery

• Personal finance

Cooperative banks in India finance urban areas under:

• Self-employment

• Industries

• Small scale units

• Home finance

• Consumer finance

• Personal finance

Some facts about Cooperative banks in India

• Some cooperative banks in India are more forward than many of the state and private
sector banks.

• According to NAFCUB the total deposits & lending of Cooperative Banks in India is
much more than Old Private Sector Banks & also the New Private Sector Banks.
 • This exponential growth of Co operative Banks in India is attributed mainly to their much
better local reach, personal interaction with customers, and their ability to catch the nerve
of the local clientele.

2.5.d FOREIGN BANK

Foreign banks have brought latest technology and latest

banking practices in India. They have helped made Indian Banking system more competitive and
efficient. Government has come up with a road map for expansion of foreign banks in India.

The road map has two phases. During the first phase
between March 2005 and March 2009, foreign banks may establish a presence by way of setting
up a wholly owned subsidiary (WOS) or conversion of existing branches into a WOS. The
second phase will commence in April 2009 after a review of the experience gained after due
consultation with all the stake holders in the banking sector. The review would examine issues
concerning extension of national treatment to WOS, dilution of stake and permitting
mergers/acquisitions of any private sector banks in India by a foreign bank.

LIST OF FOREIGN BANKS IN INDIA

• ABN-AMRO Bank

• Abu Dhabi Commercial Bank

• Bank of Ceylon

• BNP Paribas Bank

• Citi Bank

• China Trust Commercial Bank

• Deutsche Bank

• HSBC

• JPMorgan Chase Bank

• Standard Chartered Bank

 • Scotia Bank

• Taib Bank

2.5.e REGIONAL RURAL BANK

Rural banking in India started since the establishment of banking

sector in India. Rural Banks in those days mainly focused upon the agro sector. Regional rural
banks in India penetrated every corner of the country and extended a helping hand in the growth
process of the country.

SBI has 30 Regional Rural Banks in India known as RRBs. The

rural banks of SBI are spread in 13 states extending from Kashmir to Karnataka and Himachal
Pradesh to North East. The total number of SBIs Regional Rural Banks in India branches is 2349
(16%). Till date in rural banking in India, there are 14,475 rural banks in the country of which
2126 (91%) are located in remote rural areas.

Apart from SBI, there are other few banks which functions for the
development of the rural areas in India. Few of them are as follows.

2.5.e.I Haryana State Cooperative Apex Bank Limited

The Haryana State Cooperative Apex Bank Ltd. commonly called

as HARCOBANK plays a vital role in rural banking in the economy of Haryana State and has
been providing aids and financing farmers, rural artisans, agricultural labourers, entrepreneurs,
etc. in the state and giving service to its depositors.

2.5.e.II NABARD

National Bank for Agriculture and Rural Development

(NABARD) is a development bank in the sector of Regional Rural Banks in India. It provides
and regulates credit and gives service for the promotion and development of rural sectors mainly
agriculture, small scale industries, cottage and village industries, handicrafts. It also finance rural
crafts and other allied rural economic activities to promote integrated rural development. It helps
in securing rural prosperity and its connected matters.
2.5.e.III Sindhanur Urban Souharda Co-operative Bank

Sindhanur Urban Souharda Co-operative Bank, popularly known

as SUCO BANK is the first of its kind in rural banks of India. The impressive story of its
inception is interesting and inspiring for all the youth of this country.

2.5.e.IV United Bank of India

United Bank of India (UBI) also plays an important role in

regional rural banks. It has expanded its branch network in a big way to actively participate in
the developmental of the rural and semi-urban areas in conformity with the objectives of
nationalization.
Syndicate Bank was firmly rooted in rural India as rural banking
and has a clear vision of future India by understanding the grassroot realities. Its progress has
been abreast of the phase of progressive banking in India especially in rural banks.

2.6 RECENT DEVELOPMENTS IN THE BANKING SECTOR

According to CFSA (2009), financial position of commercial

banks shows that the global financial meltdown has led to a crisis of confidence in the global
markets and is not without its echo in the Indian financial system. In contrast to the trend
observed till 2007-08, there has been a reversal in capital flows to India during 2008-09. This has
led to some disturbance in the Indian financial markets, particularly in the equity and foreign
exchange markets. Against this background, the CFSA assessed the financial soundness of
commercial banks and found that the banking sector has withstood the shocks of the global
meltdown well and none of the key financial parameters in September 2008, namely capital ratio,
asset quality, earning and profitability pointed to any discernable vulnerability.

The Indian banking system has withstood the pressure of

global financial turmoil as reflected in the improvement in the Capital to Risk-Weighted Assets
Ratio (CRAR). The overall CRAR of all SCBs improved to 13.2 per cent at end-March 2009
from 13.0 per cent at end-March 2008, thus, remaining significantly above the stipulated
minimum of 9.0 per cent. Some slippage was observed in NPAs, as reflected in the marginal
increase of gross NPAs to gross advances ratio. This was however on expected lines given the
slowdown of the economy. On the whole, however, the Indian banking system performed
reasonably well in this extraordinarily turbulent year. The gross Non-Performing Assets (NPA)
to gross advances ratio remained unchanged at 2.3 per cent as at end-March 2009 from its level
as at end-March 2008. The Return on Assets (ROA) also remained unchanged at 1.0 per cent at
end-March 2009 over its level at end-March 2008 indicating no deterioration in efficiency with
which banks deployed their assets. The Return on Equity (ROE) increased to 13.3 per cent as at
end-March 2009 from 12.5 per cent at end-March 2008, indicating increased efficiency with
which capital was used by banks.

The increase in the level of NPAs has a number of negative

consequences. From the banking system’s point of view, high loan loss provisions reduce net
profits and tend to put pressure on the lending rates. High real lending rates discourage new and
credit worthy borrowers from seeking loans from banks, with negative consequences for real
economic activity. From a macro economic policy point of view, rigidities in lending rates that
result from the large stock of NPAs dampen the effectiveness of monetary policy. In addition, to
the extent that the public sector banks have to be recapitalized by the government because of the
credit losses, the NPAs represent a source of quasi-fiscal liabilities. There has been a consistent
decline in NPA ratios over the years. In the context of high GDP growth high as well as credit
growth in the past five years, given the well known leads and lags in the relation between credit
growth and NPA trends, several analysts expect the level of NPAs to increase, particularly in the
context of restructuring of loans. 1.68 While it is not unusual to expect NPAs to increase in a
downturn, banks are well capitalized to cushion the impact of higher NPAs. Given the increase
in banks’ net worth over the past ten years and steady reduction in their NPAs, capital coverage
for NPAs is at prudent level.

There are two models of ownership of banks, namely, the

Anglo-Saxon model and Asian model. The former refers to the model adopted by most of the
developed countries, while the latter can be seen in some of the developing countries, such as
India. Under the former model, the key decisions are taken by the top executives almost
independently dictated by short-term considerations, and regulations may not be as stringent as
required. As against this, countries like India have a financial system marked by substantial
public sector ownership and a different incentive structure for the top executives. In this model,
there is likely to be less financial innovation in the form of complex products and less incentives
for risk taking. Thus, this sector is likely to be less innovative and less efficient but would be
steadier. The advantage of this sector during times of crisis is the perceived sovereign backing
which has been amply clear during the current crisis. While the former model came under
pressure during the recent crisis, the latter model having substantial presence of public sector
stood the Indian financial system in good stead. This was evident from the fact that the NPAs
ratio for foreign and new private sector banks increased significantly during 2008-09 as an after-
effect of the crisis, the NPA ratio declined for public v sector banks during this period and was
the lowest among all bank groups.

Public ownership has proved out to be a source of strength

rather than a weakness for the Indian banking system. While discussing the perspectives about
the role of public ownership in the banking system, there are certain issues that need to be noted.
First, contrary to the belief that public ownership weakens the allocative efficiency, the
analytical exercises by the Reserve Bank indicate that allocative, technical and cost efficiency of
the public sector banks has been much higher than the private and foreign banks in India in the
recent years. Secondly, the important aspect of public ownership of financial system in India has
been the key role played by banks in the pursuit of social and redistributive objectives of
developmental finance, which are vital to an emerging market economy like India.
 In retrospect, the key success of financial sector reforms in
India since they were instituted in the early 1990s has been the maintenance of financial stability
through a period marked by repeated financial crises across the world. The process of reforms is
noteworthy not only for the turbulence around its path but also for the sheer dimensions of the
change achieved from the position where the Indian banking system started. Way forward, the
need of the hour is to have financial sector reforms in a recalibrated manner while distilling the
lessons of the crisis. The policy challenge is to continue to ensure financial stability in India
during this period of international financial turbulence, while achieving high growth with high
stability.

The agenda that is being developed for strengthening of

financial sector regulation and supervision is ambitious. The Reserve Bank has taken a number
of steps and intends to take further steps. Contentious issues are expected to arise both at national
and at the international levels on regulatory aspects. Whereas the principles underlying this
regulatory overhaul are being increasingly accepted, many challenges will arise on their
practicality and modes of implementation:

• First, there is a need to ensure that regulators and supervisors remain firm in their resolve
to ensure that there is no buildup of risk in the system and that the principles and
framework articulated are adhered to in letter and spirit.

• Second, the interconnectedness of the institutions and markets requires central banks,
banking, securities and insurance regulators to work in close coordination with full
exchange of information and frequent interaction to assess the systemic risks at any point
of time.

• Third, several of the countercyclical proposals are dependent on the assessment of

economic and banking conditions in national jurisdictions which will determine the
capital buffer requirements – these will obviously vary from one jurisdiction to another as
cycles would also vary. With banks operating across the globe, this will imply that capital
requirement could vary across jurisdiction – parking the transaction in a more favorable
jurisdiction cannot be ruled out. Coupled with complex structures and differential tax
regimes, minimizing regulatory and tax arbitrage will continue to be a challenge.

• Fourth, cross border resolution issues will continue to be daunting especially as national
regulators will seek to protect domestic depositors and stake holders.

• Fifth, convergence toward international accounting standards will be a challenge in terms

of not only bringing in the changes in standards that are appropriate for the country but
also for putting in place systems and capabilities to facilitate convergence. Issues such as
putting in place prudential filters for not distributing unrealized gains would also arise.
 • Sixth, while there are discernible signs of recovery in the global financial markets, the
real test of the resilience of the financial system will be its performance through the exit
process. For the emerging market economies such as ours, the challenge will be to
manage the impact of this process of global stabilization.

• Seventh, an additional challenge for the EMEs is that they are exposed to the volatile
international capital flows necessitating suitable regulatory policies depending on the
macro economic conditions for ensuring financial stability.

• Finally, for countries like India, the advantages of coming in late is that while introducing
new products and instruments they can have the benefit of the global experience so that
the pitfalls can be avoided while reaping the gains of innovation.

2.7 RESERVE BANK OF INDIA

The Reserve Bank of India was established on April 1, 1935

in accordance with the provisions of the Reserve Bank of India Act, 1934. Though initially RBI
was privately owned, it was nationalized in 1949. Its central office is in Mumbai where the
Governor of RBI sits. RBI has 22 regional offices and most of them are located in state capitals.
The Reserve Bank of India also has three fully owned subsidiaries: National Housing Bank
(NHB), Deposit Insurance and Credit Guarantee Corporation of India (DICGC), Bharatiya
Reserve Bank Note Mudran Private Limited (BRBNMPL).

The functions of Reserve Bank are governed by central board

of directors. The board is appointed by the Government of India. The directors are nominated /
appointed for a period of four years. As per the Reserve Bank of India Act there are Official
Directors and Non-Official Directors. The Official Directors are appointed by the government
and include Governor and Deputy Governors of RBI. There cannot be more than four Deputy
Governors. Non-Official Directors are nominated by the government. These include ten
Directors from various fields and one government official. Apart from these, there are four other
Non-Official Directors, one each from four local boards in Mumbai, Kolkata, Chennai and New
Delhi.

Main Functions of RBI

 1. Reserve Bank of India is the main monetary authority of the country. It formulates,
implements and monitors the monetary policy and thereby plays a key role in maintaining
price stability and ensuring adequate flow of credit to productive sectors.

2. RBI is the regulator and supervisor of the financial system in the country. It prescribes
broad parameters of banking operations within which the country's banking and financial
system functions.

3. It manages the foreign exchange of the country.

4. Performs merchant banking function for the central and the state governments; also acts
as their banker.

5. Maintains banking accounts of all scheduled banks.

6. Issues and exchanges or destroys currency and coins not fit for circulation

CHAPTER-3

 COMPANY PROFILE
 ORGANIZATION STRUCTURE
 BRANCH PROFILE
3.1 ABOUT UCO BANK

UCO Bank is a commercial bank founded in 1943. The bank is a

Government of India Undertaking. Its Board of Directors consists of government representatives
from the Government of India and Reserve Bank of India as well as eminent professionals like
accountants, management experts, economists, businessmen, etc.

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, 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!

3.2 HERITAGE
 The idea of a truly Indian bank was first conceived of by Mr.
G.D Birla, the doyen of Indian Industrial renaissance, after the historic "Quit India" movement in
1942. Soon this nascent idea came into reality and, on the 6th of January 1943, The United
Commercial Bank Ltd. was born with its Registered and Head Office at Kolkata. The very first
Board of Directors was represented by eminent personalities of the country drawn from all walks
of life, and this all-India character of the Bank has been assiduously maintained till this day not
only in the composition of its Board but also in the geographical spread of its 1700 odd branches
in the country as well as in its overseas centers in Singapore and Hong Kong.

Having traversed periods of expansion and consolidation, the

Bank was nationalized by the Government of India on the 19th July 1969 whereupon 100 per
cent ownership was taken over by the government in UNITED COMMERCIAL BANK. This
historic event brought about a sea-change in the entire fabric of the bank's thinking and activities,
commensurate with the government's socio-political approach of mass banking as against class
banking hitherto practiced. Branch expansion started at a fast pace, particularly in rural areas,
and the bank achieved several unique distinctions in Priority Sector lending and other social
upliftment activities. To keep pace with the developing scenario and expansion of business, the
Bank undertook an exercise in organizational restructuring in the year 1972. This resulted into
more functional specialization, decentralization of administration and emphasis on development
of personnel skill and attitude. Side by side, whole hearted commitment into the government's
poverty alleviation programs continued and the convenorship of State Level Bankers' Committee
(SLBC) was entrusted on the Bank for Orissa and Himachal Pradesh in 1983.

The year 1985 opened a new chapter for the Bank as the name of
the Bank changed to UCO BANK by an Act of Parliament. The customer friendly and socially
committed character, however, remained even with this change in name which has, over the
years, been regarded as one of the well known and vibrant banks in the country. Today, with all
its inner strengths, UCO Bank has come a long way to symbolize friendliness for customers and
efficiency in its banking business. Truly, UCO Bank HONOURS YOUR TRUST.

3.3 OUR 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

3.4 OUR 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 upgradation 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,
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!

3.5 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.

3.6 UCO BANK

Type Public

Founded Kolkata, India

Headquarters Kolkata, India

Key people S.K. Goel - Chairman & Managing Director

V.K. Dhingra - Executive Director
 B. M. Mittal - Executive Director
A. Bhattacharya – Director
N.P. Sinha – Director
J. C. Shandil – Director
Nirmal Khatri - Director
P. L. Mittal – Director

Industry Banking (consumer, corporate and investment)

Head Office
UCO Bank
Head Office
10 B.T.M Sarani
Kolkata - 700001
Website: www.ucobank.com

3.7 EVENTS

• 1974 - The Company was incorporated on 15th of February.

• 1992 - During the year the Bank opened 11 branches in urban and metropolitan areas to
take the total number of branches in India to 1783 at the end of the year.

• 1994 - A new scheme under the name of FCNR (Banks) Scheme was introduced with the
exchange risk being borne by the banks. The Bank has taken several steps towards
improving recovery and reduction in NPA, lowering of the cost of funds, boosting non-
interest income, containment of operating expenses etc. in order to improve the financial
position.

• 2007 - UCO Bank names S K Goel as CMD.

3.8 PRODUCTS

3.8.a UCO SHELTER

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.

3.8.b UCO CAR

This is an easy finance scheme for purchase of a new car as well as second hand vehicle not
older than 5 years and economic life of a vehicle should be taken as 8 (eight) years from the date
of manufacture of the vehicle.

3.8.c UCO TRADER

It is a loan for financing working capital and Term Loan needs of Retail and Wholesale trading
activities other than Export. Retail and Wholesale trade in various types of commodities (not
services) excluding those items which are specifically prohibited/restricted by the Bank, are
financed through this scheme. Fund based Advance is granted by way of Cash Credit against
stock as well as Book debt and Term Loan for acquisition of fixed assets to run the trade and
business.

3.8.d EDUCATION LOAN

The scheme extends a helping hand to meritorious students desirous of pursuing

basic/higher/professional/technical education either in India or abroad. The parents will become
co-borrowers with their dependant (student) if the latter applies for educational loan.

3.8.e UCO CASH

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

This is a loan against the security of future receivables i.e. assignment of future rent receivable,
for productive purposes e.g. augmenting earnings like investing in securities, undertaking repairs
& renovation of the property, etc.

3.8.g UCO MORTGAGE

Under the scheme credit facilities are considered upto 60% value of the property located in
metro/urban/semi-urban centers to meet financial needs of government employees, employees of
schools, colleges, PSU, reputed corporate business enterprises, professionals and businessmen
with regular source of income and filing IT return against mortgage of their immovable property
with clear Title.

3.8.h UCO SECURITIES

Under the scheme credit facilities are extended to borrowers against financial securities issued by
Central Govt./State Govt./RBI in the form of National Savings Certificates, Kisan Vikas Patra,
Govt. Securities and Relief Bonds. Loans are also sanctioned against Life Insurance Policies of
Life Insurance Corporation of India and bonds/debentures issued by specific Public Financial
Institutions.

3.8.i UCO REAL ESTATE

Under the scheme advances are extended to the Promoters/Developers of real estate who should
be well established and experienced in their line of activities at least for a period of three years.
Cooperative Societies are not eligible to be borrowers under the Scheme.

3.8.j UCO NARI SHAKTI

This Scheme is aimed at providing financial assistance to salaried women, in line with the broad
objective of the Government towards women's empowerment.

3.8.k UCO SHOPPER

It is a Consumer Loan scheme for Salaried Persons, Professionals and Businessmen for purchase
of a whole range of consumer durables and two-wheelers. Consumer durables like TV,
Computer, Refrigerator, Air-conditioner or any other item acceptable to the Bank, and Two-
wheelers can be purchased through this scheme.

3.8.l UCO HIRAK JAYANTI KRISHI YOJANA (UHJKY)

In order to meet the long term credit needs of the farming community in rural areas for
agriculture, allied activities as well as for personal purposes, this new scheme with liberalized
terms and conditions, named also to commemorate our Bank's Diamond Jubilee Year, has been
introduced throughout the country .The scheme is meant for persons less than 60 years of age
and engaged in farm activities. Minimum quantum of the loan is Rs. 25,000/- and maximum Rs.
5.00 lacs with no requirement for any margin or a guarantor. Security would be in the form of
mortgage of unencumbered immovable properties and/or lien on movable assets/liquid
collaterals such as NSC/KVP/LIP/Bonds, etc. Borrowers under this scheme have to repay the
loan in 5 yearly/10 half yearly installments after an initial moratorium period. Borrower has to
pay a small service charge @ 0.5% of the loan amount.

3.8.m UCO PENSIONER

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

3.8.n UCO EARNEST MONEY DEPOSIT LOAN SCHEME

Loan scheme for financing for Earnest Money Deposit for booking housing plots/flats offered by
various Urban/Metropolitan Development Authorities & Housing Boards

UCO SWABHIMAN - REVERSE MORTGAGE LOAN MORTGAGE

3.8.o
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.
3.8.p MONEY BACK RECURRING DEPOSITS
(MAKES YOUR DREAMS COME TRUE)

It is a long term Recurring Deposit scheme with intermediate withdrawal facility. Deposits are to
be made every month, and the maturity period is after 120 months. You will be having two
options :

• You may opt to have one intermediate withdrawal at the end of 60 months and get the
final payment at the end of 120 months, or

• You may withdraw immediately at the end of 36 months and 72 months, and get the
maturity amount at the end of 120 months.

The scheme meets your long term monetary requirements.

3.8.q FRIEND-IN-NEED SCHEME

(A FIXED DEPOSIT WITH CHEQUE FACILITY)

This Term Deposit earns high interest and simultaneously offers overdraft facility through a
Current Account. Cheque facility is available for withdrawal of money limited to 90% of the
deposit. The drawals together with interest can be paid back in instalments, without affecting the
growth of the deposit. This unique combination of fixed deposit with cheque facility comes as
your true friend in meeting your emergency needs.

3.8.r TWO-WAY DEPOSIT SCHEME

(MAKES YOUR IDLE MONEY GROW)

This deposit scheme is devised to invest the surplus fund that you may keep in your Savings
Bank or Current Account. Under the scheme, the surplus fund is invested in short term deposits
for 46 days, and then is either paid back or renewed, as desired by you. The deposit earns a high
interest while retaining its liquidity. The periodical transactions can be automatic as per your
instructions. By making use of your idle money, the scheme provides you an option to meet both
your short term and long term requirements.

3.8.s LAKSHMI YOJANA

(A HOPE FOR YOUR FUTURE)
It is a long term Recurring Deposit scheme with variable monthly deposits. The interest on
deposit is calculated as the minimum monthly balance between the 10th and the last day of a
month, and is credited to the account every half year. The amount deposited will attract interest
as applicable to Term Deposits. Upto 90% loan facility on deposit amount is available at a
nominal interest. The Yojana is best suited to shaping a bright future for your child.

3.8.t KUBER YOJANA

(A SAFE DEPOSIT TO INCREASE YOUR WEALTH)

A long term fixed deposit scheme. Interest is compounded every quarter by way of reinvestment.
Thus the scheme generates a large sum of money at the time of maturity. The scheme meets the
need for a safe long term investment.

3.8.u FLEXIBLE FIXED DEPOSIT SCHEME

(A FIXED DEPOSIT WHOLLY AT YOUR BENEFIT)

Deposits are accepted under reinvestment plan with the difference that a part of the deposit can
be prematurely encashed without affecting the remaining portion that continues to earn interest at
the agreed rate. Withdrawal is allowed in multiples of Rs.5000/-. It is indeed a matchless scheme
to take care of your emergency needs.

3.8.v SPECIAL DEPOSIT SCHEME FOR SENIOR CITIZEN

For all term deposits (domestic/NRE), from Senior Citizens of age 60 years and above,
regardless of size of deposits, an additional interest of 0.5 per cent over the normal rate of
interest will be payable on maturity periods of one year and above. This will be applicable for
fresh term deposits and renewals.

3.8.w UCO No-frills Savings Bank Account

In order to include a larger cross-section of the population, who are at the bottom of the pyramid,
to avail of the banking services who could not avail of the same on account of some restrictive
clauses, namely, minimum initial deposit for opening of the account which is difficult to arrange
by such population, maintenance of minimum balance failing which charges are levied etc., it
has been felt expedient to introduce a new Savings Deposit Scheme titled "UCO No-frills
Savings Bank Account". The salient features of the scheme so designed are as follows :

1. The account can be opened with a minimum initial deposit of Rs.5/-. In case of cheque
facility being availed by the account holder, the minimum initial balance should be
Rs.250/-. In case of need, the balance in the account may be allowed to go even below the
minimum initial deposit and the account may continue even with "Zero" balance.

2. Opening of Account under the scheme - The scheme is introduced in all metro, urban,
semi-urban and rural categories of branches without making any differentiation with
regard to amounts of initial deposit and maintenance of minimum balance as prevailing at
present for opening of Savings Bank Accounts.

The eligibility for opening "No-frills" Account will be the same as that for opening an ordinary
Savings Bank Account. Persons above the age 10 and below 18 years and are able to read and
write may also open a minor no-frills savings account in his own name or jointly with any other
person.

3.9 ORGANIZATIONAL STRUCTURE

The Bank has three tier organizational structures - Corporate, Zonal Offices and Branches. At
present, the Bank has 35 Zonal Offices, 1881 branches - 1877 in India and 4 in Overseas Centers
(2 each in Singapore and Hong Kong) with one Representative Office in Malaysia & China. In
addition, there are 13 Service branches and one Integrated Treasury Management Branch at
Mumbai. The Organizational Chart is given below:

3.10 ORGANIZATIONAL CHART

Fig: 1 the organizational chart of the UCO Bank

 Source: The website of UCO Bank

3.11 Powers and Duties of its Officers and Employees:

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

For discharge of its functions, the Bank is guided by the norms set out by the Government of
India and the Reserve Bank of India. Details of all products viz., deposits, advances and other are
available on the Banks website and also at branches of the Bank. The Head office decides the
interest rates to be offered by the Bank for the term deposits which are displayed in the branches.
The Bank has a ‘Deposit Policy’ and a ‘Fair Practice Code’ for Bankers. Loans are sanctioned
keeping a holistic view about the proposal.

However, it should be noted that whether to sanction a loan or not is in the absolute discretion of
the concerned sanctioning authority of the Bank and such discretion is exercised, after taking
into consideration the relevant facts and circumstances of each case. The information relating to
sanctioning of loans, particulars of loan account and any related information is exempted from
disclosure.

3.11.b Rules, Regulations, Instructions, Manual and Records held by the Bank:

The Bank has issued Manual of Instructions on different subjects, codified circulars, scheme for
delegation of powers, guidelines on documentation and the periodical circulars used by the
employees for discharging various functions. They are all meant for internal circulation only.

3.11.c Statement of the categories of documents that are held by the Bank:

These are mainly registers of shareholders/records of the proceedings of Annual General

Meetings, Board meetings and various committee meetings, documents executed by
customers/borrowers/ guarantors, contracts with third parties, etc.

These are all private information and of commercial value and cannot be shared with public.

3.11.d Particulars of any arrangement that exists for consultation with, or representation
by, the members of the public in relation to the formulation of its policy or implementation
thereof:
As per the present arrangement, the shareholders can raise issues concerning policies in Annual
General Meetings. Further the Bank’s Quarterly / half yearly / annual results are published in
leading newspapers as well as putting the same on Bank’s web site for information of public as
well as the shareholders which would give an idea of the policies of the bank and implementation
thereof.

3.11.e Procedures followed in the decision making process:

The UCO bank has a well-defined system for decision making. The Bank
functions under the overall supervision and control of Board of Directors of the Bank to
formulate the policies pertaining to the Bank’s functioning. For implementation of such policies
there is a well laid down hierarchical system. All officers and employees of the Bank have to
follow the prescribed rules and procedures as laid down in ‘The Manual of Instructions’ and
circulars issued from time to time. Decisions are taken according to the prescribed powers of
delegation. All loan proposals sanctioned are reported to the higher authority to ensure clear
accountability. Non Performing Asset means an asset or account of borrower, which has been
classified by a bank or financial institution as sub-standard, doubtful or loss asset, in accordance
with the directions or guidelines relating to asset classification issued by RBI.

3.12 PROFILE OF UCO BANK, BACHELI

UCO Bailadila branch was opened on 7/7/80, inside the NMDC campus. It is a small
township developed by NMDC with a population of 25000. The branch has staff strength of nine
including four officer’s staff. On an average the growth of business is 15% to 16% per year. The
branch is earning a net profit of more than 1.5 crores per year. The present level of business is 50
crores with a deposit of 30 crores in advance. The branch is added with senior manager being a
large branch. The branch is having a L.C business of over 80 crores to NMDC which is a public
sector Navratna Company earning a profit of more than 2000 crores per year. The branch is
taking all the government programs and anti poverty such as Swaranjayanthi Gram swarozgar
Yojana (SGSY), SwarnJayanti Shahari Rozgar Yojana (SJSRY), Anthyodaya (SC/ST) and other
programs such as Prime Minister’s Rozgar Yojana (PMRY), Jawahar Gram Samridhi Yojana
(JGSY).

The NPA percentage is 1.5% which is below the national average of 2%. In the deposit section,
the branch is having 60% in current and savings deposits. The NMDC employees are assisted in
the personal loans, car loans, education loans and house loans. The branch is having more than
900 salary accounts which include railway employees, anganwadi workers, Apollo hospital and
NMDC. Though core banking facility has not yet been started but the infrastructure for making a
core banking ATM has already done and it will start very soon.

Most of the accounts in the branch are that of the governmental employees. The region has a
strong presence of tribal people who never had a banking experience. Hence this region is
considered to be an untapped market. The bank is doing a rigorous marketing among the tribal
people to bring them to the bank. The bank also uses the governmental program to attract the
customers. The branch is also trying to be different by changing its operation time from ordinary
timing duration to 1.00PM to 8.00PM. This will help the government employees as they can do
the business in the bank in the lunch break or after they duty time in the evening.

In the district of Dandewada there were two branches; one in Chindugade and the other in
Bacheli. The Bacheli branch represents coordination in district level bankers committee. UCO
bank Bacheli branch comes under Raipur zonal office which is one of the best zones in India.
Having 50 crores business on an average per each branch. Most of the income of the branch
comes from demand draft selling, bills and billing discounting.

3.12.a ACHIEVEMENTS

• This branch is the 2nd bank to provide banking service to the region which mostly
consists of tribal people.

• Largest provider of loans to the region as it loan regulations are easier than compared
to other banks.
 • The NPA percentage is 1.5% which is below the national average of 2%.

• The branch is taking all the government programs and anti poverty such as
Swaranjayanthi Gram swarozgar Yojana (SGSY), SwarnJayanti Shahari Rozgar
Yojana (SJSRY), Anthyodaya (SC/ST) and other programs such as Prime Minister’s
Rozgar Yojana (PMRY), Jawahar Gram Samridhi Yojana (JGSY).

Branch Bailadila, Chhattisgarh

Date of establishment 1980

No of employees 9

Principal activity Banking

Senior manager Shailender Singh

manager Nagarajula.V.S

Jagadish Vohra

Main Competitor SBI

CHAPTER-4
  FUNCTIONAL ANALYSIS OF DEPARTMENTS

The UCO Bank, Bacheli branch has different sections, these sections are described below:
4.1 FRONT OFFICE

The front office is the section where the customers are being helped with they queries. The
branch has a very responsive and humble employee to assist the customers at any time. Any
information regarding the bank or the procedures of any activity with respect to the bank can be
obtained from the front office. Also the bank keeps different forms for different banking
activities in the front office. This will ensure that the customer will first go to the front office; as
a result the customer can be guided properly in the bank.

4.2 CASH DEPT

All the activities related to the cash are done in this department. The employees assigned to this
department are only allowed to provide or receive the cash from the customer. They are
responsible for all the cash transactions that happen in the bank.

4.3 DOCUMENTATION DEPT

This department is involved in the documentation of all the transactions occurring in the bank.
Each transaction in the bank requires a lot of documentation as a result a separate department has
been assigned for this. All the transactions are documented using computer and a printout is
taken of these transactions at the end of every business day so as to keep a manual document of
the transactions.

4.4 LOAN DEPARTMENT

The bank has assigned a separate department for the loan purpose so that the customer who
requires the loan can be better served. The procedure for providing loan is a long process which
involves a lot of documentation and checking of the securities provided for the loan. Hence the
bank separated the activities of loan with other activities of the bank. All the loans above 20000
Rs are to be approved by the zonal office. Hence the customers has to be updated about they
loan. This is also done by this department.
4.5 DIFFERENT TYPES OF LOANS

4.5.a SECURED LOAN

A secured loan is a loan in which the borrower pledges some assets (e.g. a car or a property) as
collateral for the loan.

A mortgage loan is a very common type of debt instrument used by many individuals to purchase
housing. In this agreement, the money is used to purchase the property. The financial institution
however is given security a lien on the title to the house until the mortgage is paid in full. If the
borrower defaults on the loan, the bank has the legal right to repossess the house and sell it, to
recover sum owing to it.

4.5.b UNSECURED LOAN

Unsecured loans are monetary loans that are not secured against the borrowers assets. These may
be available from financial institution under many different guises or marketing packages:

 Credit card debt

 Personal loans

 Bank overdrafts

 Credit facility or line of credit

CHAPTER – 5

 SWOT ANALYSIS
5.1 SWOT ANALYSIS

A scan of the internal and external environment is an important part of the strategic planning
process. Environmental factors internal to the firm usually can be classified as strengths (S) or
weaknesses (W), and those external to the firm can be classified as opportunities (O) or threats
(T). Such an analysis of the strategic environment is referred to as a SWOT analysis.

The SWOT analysis provides information that is helpful in matching the firm's resources and
capabilities to the competitive environment in which it operates

5.1.a STRENGTHS

1. UCO Bank has earned a reputation in the market for extending quality services to the
market. As it is a government undertaking the people trusts the bank.

2. The branch has a high share in the region as there are only two banks in the region.

3. The branch maintains a very low NPA of 1.5%

4. The branch provides all the products falling under the UCO Bank, which help it to extend
the relationship with existing customer.

5. UCO Bank is having an edge over other banks in case of Salary Account. In the region,
the Apollo hospital, the NMDC and the Indian Railways have they salary account with
UCO Bank

6. The working hour of the UCO Bank in Bailadila is from 1.00PM to 8.00PM. This is very
beneficial to the government employees as they can come in the evening or at the lunch
break for doing business with the bank.

7. Even though the branch is in a remote place it uses the latest technology which helps the
branch to provide better service to the customer.

5.1.b WEAKNESSES

The absence of certain strengths may be viewed as a weakness

 1. The branch is working in one of the rural region of India; hence it is extremely difficult to
bring people to the bank.

2. It is extremely difficult to raise funds in the rural region

3. The employees will reluctant to work in a rural area as a result they might not do the
work with the full effort.

4. It is extremely difficult to get back the loans that have been provided to those customers
who are not government employees as other are tribal people who mostly depend on the
forest.

5.1.c OPPORTUNITIES

The external environmental analysis may reveal certain new opportunities for profit and growth.

1. Dissatisfaction from the service of other bank can bring the customers to the bank

2. The region has a lot of tribal people who do not have an account in any bank, hence this a
untapped market with lot of opportunity.

3. There are only two banks in the region hence the bank can compete easily

4. Arrival of new technologies

5. Loosening of regulations

6. Assistance from the government

5.1.d THREATS

Changes in the external environmental also may present threats to UCO Bank’s growth

1. Large numbers of MNC banks are mushrooming in the Indian market especially in rural
sector due to the friendly policies adopted by the government. This can increase the level
of competition and prove a potential threat for the market share of UCO bank in the
region.
 2. The poor customer support/ service is creating a lot of dissatisfaction among the
customers, this can prove to be a serious problem as far as the market reputation of the
bank is concerned and can be a major threat in future business acquisition.

3. With other PSU banks like SBI has become a major competitor among the banks and
government giving them a free hand to do so, hence it is always a thread.

4. The region has a heavy presence of pawn brokers and other money lenders who easily
provide the loans to the people.

CHAPTER-6

 FINDINGS, CONCLUSION & SUGGESTIONS

6.1 FINDINGS

After doing the organizational study the following are the findings

1. The branch is facing less competition as there is only one competitor

2. The region has a lot of tribal people who do not have an account in any bank, hence this
is an untapped market with lot of opportunity.
3. Also most of the customer and potential customers are illiterate and are in the category of
labors

4. The branch maintains a very low NPA

5. The branch thrives to implement all the governmental programs for the upbringing of the
rural people

6. Most of the customers in the branch are government employees; hence the bank does not
have to worry about the recovery of loans

7. The loan is provided in a time limit as most loans above the Rs.25000 need sanction from
the respective zonal office. Loan is easily available from the money lenders hence people
go to the money lender than to the banks.

8. Even though the branch is in a rural place, the bank has effectively used all the
technology in the region.

9. The working hour of the UCO Bank in Bailadila is from 1.00PM to 8.00PM. This is very
beneficial to the government employees as they can come in the evening or at the lunch
break for doing business with the bank.

10. The branch has initiated a lot of facilities for the NMDC and Railway employees like the
instant availability of loan up to Rs.40000.
6.2 CONCLUSION

UCO bank is one of the oldest and successful

banks in India. The bank has a well organizational structure and its officer’s Manual helps the
employees to understand the company rules and regulations. The UCO branch in Bacheli has a
business of 50 crores. It also maintains the NPA at 1.5% which is below the national average of
2%.The UCO Bank, Bacheli has only one competitor but the business is extremely difficult as
the branch is in rural sector. Also the presence of moneylender makes things more difficult. The
bank with its different products is successfully surviving in the market. The government
employee makes most of the customers of the bank; as a result the bank has initiated a lot of
programs for providing them easy access to the bank. The primary objective of this study was to
analyze the different departments and functioning of these departments in the UCO Bank,
Bacheli. The UCO Bank, Bacheli has 4 departments and the functions of these departments are
mentioned in the report. The performance of the UCO Bank, Bacheli was evident from the fact
that the bank makes a business of 50 crores. The SWOT analysis done at UCO Bank, Bacheli
reveals that the bank has only one competitor and a huge untapped market. It also has the lowest
NPA in the industry. The branch’s weakness is working in one of the rural region of India;
hence it is extremely difficult to bring people to the bank. It is extremely difficult to raise funds
in the rural region. The bank’s opportunities are the dissatisfaction from the service of other bank
that can bring the customers to the bank. The region has a lot of tribal people who do not have an
account in any bank, hence this a untapped market with lot of opportunity. The treats that the
branch faces are that the large numbers of MNC banks are mushrooming in the Indian market
especially in rural sector due to the friendly policies adopted by the government. This can
increase the level of competition and prove a potential threat for the market share of UCO bank
in the region. The region also has a heavy presence of pawn brokers and other money lenders
who easily provide the loans to the people and who can become a serious competitor for the
branch. It is assumed that the finding and suggestions in the report will help the management in
the UCO Bank, Bacheli to improve the business in the branch.
6.3 SUGGESTIONS

After doing the organizational study in the UCO Bank, Bacheli (situated in Chhattisgarh),
following are the suggestions to improve the business in the branch

1. The branch has to do an aggressive as well as awareness marketing to bring more

customers from the traditional moneylender. Since most people in the region are of tribal
category they need to be taught about the benefits of a bank.

2. The branch has an easy procedure for providing loan but the time for providing the loan
is high as every loan above Rs.25000 needs zonal office’s sanction, hence the bank
should try to provide the loan a in small duration.

3. The branch can initiate a camp to educate the people in the region about the government
programs available to them and through this they can increase the branch’s customers.

4. The branch contains accounts mostly of government employees; hence the branch should
initiate many facilities for them so that they stick with the bank and also bring other
customers to the bank.

5. The branch can establish an ATM in the region which will help the customers to get the
money without visiting the bank.

6. More resources can be allocated to the Bacheli branch as there exist a huge untapped
market
BIBLIOGRAPHY
1. UCO Bank officer’s Manuel, 2009.

2. Research Methods and statistics- Harcourt publications: Nancy Furlong, Eugene

Lovelace, Kristin Lovelace (p524--p549)

WEBLIOGRAPHY
3. http://www.ucobank.com/default.htm (29th June,2009)

4. http://en.wikipedia.org/wiki/Banking_in_India (29th June)

5. http://www.iloveindia.com/finance/bank/nationalised-banks/indian-bank.html (2nd July)

6. http://www.rbi.org.in/home.aspx (2nd July)

7. www.finmin.nic.in (2nd July)