Synopsis

Summer Internship Project

UCO BANK

Topic: .Comparative study of retail loans and credit facilities at UCO BANK with other banks.

Submitted by:

Raj Kamal

MBA-Agribusiness (2011-13)

Enrolment No. 340852

Roll no.-11381RG028

COMPANY PROFILE Founded in:1943

Head Office :Kolkata

Initially it was named as the united commercial bank.

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.

Key person:

Shri Arun Kaul

Chairman & Managing Director

Shri N.R .Badrinarayan.

Executive Director

Shri S.Chandrasekharan

Executive Director

Services

The bank is in the service of community since 1943.

Nearly 2000 service units spread all over India.

Two major international financial centers namely Hongkong and Singapore.

Undertake foreign exchange business in more than 50 centres of India.

Foreign exchange dealing operations at four centres.

Vision Statement

To emerge as the most trusted, admired and sought-after world class financial institution and to be the most

preferred destination for every customer and investor and a place of pride for its employees.

Mission statement

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

SWOT ANALYSIS Strength

Country-wide presence .

Customer retention is quite high.

Continued effort to increase low cost deposit would ensure improvement in NIMs and hence earnings.

Growing retail & SMEs thrust would lead to higher business growth.

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Weakness

Due to less promotional activities new customers are rarely taking the services of the bank.

Most of the branches are not situated in the main area of the city.

In most of the branches there are not separate departments dealing advance products.

Not hassle free loan facility.

sometimes employees do not want to take a risk in sanctioning the loan of a long existing

customer.

Opportunity

margin are optimal and flexible which prevent customers to go for another financial institution.

Strong economic growth would generate higher demand for funds pursuant to higher corporate

demand for credit on account of capacity expansion.

Threat

UCO is currently operating at a lowest CRR. Insufficient capital may restrict the growth

prospects of the bank going forward.

Stiff competition, especially in the retail segment, could impact retail growth of UCO and hence

slowdown in earnings growth.

RESEARCH METHODOLOGY Research Objectives

The foremost objective of this study is by making the comparison between different financial

institutions I wanted to come out with a fine essence for the success behind an organization.

The objective of making the comparative analysis with different financial institution is to find out the

major competitors in home loan sector.

The objective of this project is to find out the lacunas in different products and how UCO BANK has to

work on these fields to overcome these drawbacks.

One of the most important objective is that by making the comparison between different financial

institutions because of views, queries ,and perception the obtained result will help the bank in

improving the business in future.

Research design

Nature of research – Descriptive

Sampling

Sample size-140,customers-100,bank employees-20,sales executive-10,builders-10

Data collection tools

Primary data-obtained through questionnaire & interview.

Secondary data- obtained through UCO BANK literature, magazines &internet.

Data analysis tools-pie charts.

Limitations

Some data’s like how much loan amount is granted, how much is the recovery, how much loan amount

has been repaid or what is the market share of each financial institution in housing finance industry are

cannot be obtained exactly.

The rate of interest may vary with the time.

FINDINGS

80% of UCO customers are using the service of UCO for their daily transaction.

85% of customers have the idea about the product & services of UCO.

Almost all the 95% people who have the idea about the advance product of UCO are the user of UCO products & services.

47% of people took home loan from UCO. 8% of people took education loan for their children, 25% of people took car loan from UCO. Some of the customer took 2 type of loan from UCO like both car & Home loan. 12% of people took personal loan.

55% of people said that the service provide by UCO is good & 39% said it is excellent & just 6% of people said that it is satisfactory.

Most of the people like the attractive interest rate & longer repayment period. It’s easier for people to repay the whole loan amount with its interest with low interest rate and with longer repayment period.

only 2% builders suggest customers to take a loan from UCO.

according to builders lanka has a very good market potential with a share of 20% while

sigra,sunderpur,kutchery,mehmoorganj,dlw have a market potential of 11%,9%,7%,6%,and

5% respectively.

30% builders suggest fast processing ,20% interest rate,10%prefers brand image of the bank,

8% prefers relationship with the bank while 32% considers other factors

o For a car loan 30% sales manager prefer dealers incentive plan,30% prefers fast processing,20%

prefers interest rate while 20% prefers other factors..

CONCLUSIONS Among these 5 banks and all financial institutions, like some of the top most banks, UCO also give each

type of home loans while some of the banks doesn’t provide , loan for purchasing flat in ongoing

construction building.

UCO customers believe on UCO bank so there is a chance to make customer retention upto 100%.

market of home loan sector & car loan sector is huge in varanasi .still UCO bank has not an appreciable

share in these sector.

onething is common that these five banks provide almost same type of products& services but do not

follow the same parameter.

Brand image of a bank is not too much important but its products& services makes a difference if

advertised in a proper way.

Repayment period is appreciable for different cases which provide flexibility and consider situation of

individuals.

Bank has given opportunity of depositing EMIs at anywhere because it follows “ANYWHERE BANKING”.

The Bank has variety of credit schemes specially suitable to individuals based on the needs,

& personal repayment capacity condition to individual.

After seeing the procedure of bank to sanction a loan, I can say that it is very safe and secured because to sanction a loan, it requires lot of approval from different levels so that risk of NPAs & debt become lesser.

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SUGGESTIONS

To further increase in market share UCO bank should provide loan even to retired person on the basis of their income profile.

To get advantage over other banks, it can consider of down payment and 100% finance in some deserving cases.

UCO Bank should give all the necessary information regarding loan in brochure.

UCO Bank should provide loan easily to those long existing customers having good transcation record.

Variety of new beneficial schemes should be informed properly to the existing

As well as new customers.

Process of sanctioning loan should be hassle free &quick.

There should be a separate window to dealing advance products in leading branches.

To be the largest advance product issuer, UCO should focus on-

Launch Innovative product

Customized advance products

Better customer services

Fastest customers problem solving techniques

Customer retention

Apart from all the above, uco believe in providing good customer services to their customers which is a key factor for success in future.

Since this is the era of stiff competition so company should focus on promotional activities.

Bank should promptly grab the chances of investment which is available in the market But before doing so bank should conduct a market research through experts for 100% success.

REFRENCES:

C.R.Kothari,magazines,journals& internet.

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