retail banking 2 sonu.docx
TRANSCRIPT
A PROJECT REPORT
ON
RETAIL BANKING GROWTH IN UCO BANK
FACULTY OF MANAGEMENT STUDIES
(DR.K.N.Modi University, Newai, Rajasthan)
UNDER THE GUIDENCESS:SUMMITEDby:-
sh.R.M. MEENA SONU CHOUDHARY
(BRANCH MANAGER) (BBA 5TH SEM)
PREFACETheoretical study combined with practical knowledge makes the learning meaningful and enables the individuals to develop self-confidence 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
RETAILBANKINGDEFINITION:
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 well-integrated manner.
TODAY’S 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 PROSPECTOUSAs 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 branch’s 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 branch’s 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. Let’s 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 today’s 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 C ha l l e n g e s ’ I N I N D I A N R E TA I L B A N K I N G
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.
U C O B A N K
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.
M A N A G E M E N T - U C O B A N K :
Name DesignationShriArunKaul Chairman and Managing directorShri S.Chandrasekharan Executive DirectorShri Uma Shankar DirectorShri Ram Avtar Sharma DirectorShri N R Badrinarayanan Executive DirectorShriPravinRawal DirectorShri Sebastian Luckose Morris DirectorShriManoj Kumar Gupta Director
• U C O B a n k f o c u s i n g o n l e n d i n g t o re t a i l , S M E a n d f a rm s e c t o r
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).
• C a p i t a l s t r u c t u re :
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.)
• D i s t r i b u t i o n C h a n n e l :
The vendor should be having all India distribution channel with their own offices/distribution Centre’s/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.
B U S I N E S S G R O W T H :
• 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 2011agents’Rs. 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.
• W h o l e s a l e B a n k i n g S e r v i c e :
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 B a 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.
• Fo rex & Tre 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
• RAT I N G
CRISIL ‘AA/AA+’ for UCO Bank’s 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 II Bonds Aggregating Rs.9.75 Billion AA+/Stable (Reaffirmed)
Rs.90 Billion Certificates of Deposit P1+ (Reaffirmed)
CRISIL has assigned its ‘AA+/Stable’ rating to UCO Bank’s Rs.8-billion Lower Tier II bond issue, and ‘AA/Stable’ rating to the bank’s Rs.4.50-billion Upper Tier II bond and Rs.1.85 billion Perpetual bond issues. CRISIL has also reaffirmed its ratings on the bank’s 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 bank’s majority shareholder, both on an ongoing basis and in the event of distress, and the bank’s large scale of operations, in terms of asset size. These rating strengths are partially offset by UCO Bank’s 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 Bank’s 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 bank’s total deposits was around 26 per cent as on March 31, 2009, as against the system average of around 33 per cent. The bank’s 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 Bank’s 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 Bank’s asset quality continues to be moderate. The bank’s 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 bank’s 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 bank’s asset quality and earnings profile. Conversely, the outlook may be revised to ‘Negative’ in case of deterioration in the bank’s 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.
• I N T E R N E T B A N K I N G :
• Any time anywhere banking.
• For retail, kids and corporate customers.
• Account related information’s, 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).
• M O B I L B A N K I N G :
• For retail internet banking, corporate internet banking and non-banking 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 AV I N G AC C O U N T:
• A D D FAC I L I T I E S W I T H YO U R S AV I N G AC 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 AC C O U N T:
• A D D FAC I L I T I E S W I T H YO U R C U R R E N T AC 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.
• U C O D H A M A KA F I X E D D E P O S I T S C H E M E :
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 Bank’s 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.
• LO A N :
U C O b a n k o f f 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 y o u r r e q u i r e m e n t s . C o u p l e d o f c o n v e n i e n c e 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 l i k e i n t e r n e t a n d m o b i l e b a n k i n g . U C O b a n k b r i n g s b a n k i n g a t y o u r d o o r s t e p . S e l e c t a n y o f o u r p r o d u c t s a n d p r o v i d e y o u r d e t a i l o n l i n e a n d o u r r e p r e s e n t a t i v e w i l l c o n n e c t t h a n y o u f o r g e t t i n g l o a n .
• U C O H O M E LO A N :
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.
• E l i g i b i l i t y :
You are eligible for a loan under UCO HOME individual (salaried/Non-salaried) having Minimum 21years of age and Maximum 65 years of age inclusive of repayment period.
• P u r p o s e :
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.
• Q u a n t u m o f l o a n
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/Semi-Urban areas/ rural areas.
• Lo a n E n t i t l e m e n t
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 ro 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.
• S e c u r i t y & G u a r a n t e e
• EMTD OF property financed.
• Guarantee of spouse if not co-applicant. In case of unmarried persons, guarantee of PF nominee
• No third party guarantee
• P re p a y m e n t c h a rg e
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 f i t s
Tax relief on principal and interest components of this loan
Would be available as per provisions prevailing under Income Tax Act.
• I n s u r a n c e
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.
• U C O C A R
This is an easy finance scheme for purchase
of a new car as well as second hand vehicle not older than 5 years.
• E l i g i b i l i t y
• S a l a r i e d B o r ro w e r
Minimum monthly take-home pay would be Rs. 10000/- + EMI of the proposed loan.
• N o n - s a l a r i e d B o r ro w e r
• 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.
• Q u a n t u m o f l o a n
Maximum Loan Amount Rs. 25.00 lacks.
• Re p a y m e n t
Maximum 84 Equated Monthly Installments.
• P ro c e s s i n g C h a rg e s
1% of the loan amount maximum Rs. 1500/-.
• P re p a y m e n t C h a rg e s
No Pre-payment charges up to loan amount of Rs. 2 lac.
• E D U C AT I O N LOA N
• S c o p e :
The scheme extends a helping hand to meritorious students desirous of pursuing higher study either in India or abroad.
• E l i g i b i l i t y
• 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.
• S t u d i e s A b ro a d
• G r a d u a t i o n :
Job oriented professional / technical courses offered by reputed Universities.
• Po s t - G r a d u a t i o n :
MCA, MBA, MS, etc.
Courses conducted by CIMA – London, CPA in U.S.A., etc.
• A g e l i m i t
• Fo r G r a d u a t i o n : between 18 & 25 years
• Fo r Po s t - G r a d u a t i o n : between 21& 28 years
• Fo r S C / S T s t u d e n t s : up to 30 years
• E l i g i b i l i t y
• should be Indian National
• Must have secured admission in Regular/ Technical course through selection process.
• Q u a n t u m o f l o a n
Studies in India: Maximum Rs. 10.00 Lac
Studies Abroad: Maximum Rs. 20.00 Lac.
• S e c u r i t y
• U p t o R s . 4 . 0 0 l a c k s – No security
• A b o v e R s . 4 . 0 0 l a c k s & u p t o R s . 7 . 5 0 l a c k s :
Collateral security in the form of a suitable 3rd party guarantee
• A b o v e R s . 7 . 5 0 l a c k s : collateral securities of suitable value.
• M a rg i n UptoRs. 4 Lac - Nil
Above Rs. 4 Lacks Studies in India - 5%
Studies Abroad - 15%
• S e r v i c e C h a rg e : There is no processing fee /no service charge
• D i s b u r s e m e n t
Disbursement in stages as per the requirement directly to institutions.
• I n t e re s t Ra t e s -
• 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.
• U C O C A S H
This is a Personal Loan scheme to meet the domestic needs like marriage, medical, traveling and other social obligations.
• E l i g i b i l i t y
A permanent employee in Govt./Semi-Govt. /Reputed Public / Private Ltd. Co. /College / Universities / other recognized institutions / PSU and have completed minimum 3 years in the organization having salary tie-up arrangement with our branches. Net take home pay should not be less than 40% of gross salary after deduction of PF, IT and other statutory deductions including proposed EMI. Regular income may also be reckoned for eligible quantum.
• Q u a n t u m o f l o a n
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.
• S e c u r i t y
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 rg 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.
C O N C L U S I O N S
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 BankingThe 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 likeNPA’s 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