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EXECUTIVE SUMMARY
There has been a major upsurge in the quantum of mass influence offerings and premier banking services being offered by the large flock of global banks in the country and all over the world. At a global level, banks tend to pick and choose the markets in which their mass affluent service is launched, depending upon the profile of that country. For example UCO bank claims to be having a big market share in retail lending. Banks play an important role to manage the earnings and savings of their customers. Customer’s satisfaction is the key for the bank to survive such a competitive market. The clients should be able to rely on their ultimate offering relationship manager to fulfill two main ongoing.
INDUSTRY ANALYSIS
Banking is the science of managing money and other asset pertaining to a specific business. The Banking industry plays a dynamic role in the economic development of country. The growth story of an economy depends on the robustness of its banking industry. Banks act as the store as well as the power house of the country’s wealth.
Genesis of Banking in India:
Indian banking industry has its ancestry traced to British India. The Bank of Bengal, established in 1806,was the first to be in corporate as a bank on the Indian soil .Later followed Bank of Bombay,establishedin1840,and the Bank of Madras,establishedin1843 with the rights to issue currency. All three banks, called as Presidency Banks, were in corporate as joint stock companies. This marked the beginning of the most important sector in India i.e. Banking and Finance Sector. All three banks were amalgamated to form the Imperial Bank of India, which started operations on January27, 1921. It carried out limited central banking functions until the establishment of RBI, the bank equivalent of Fed in India.
With the passage of Reserve Bank of India Act in1934, Reserve Bank of India(RBI)was constituted as an apex bank without major government ownership .Later Banking Regulations Act was passed in 1949which lead the Reserve Bank of India to be under government control. Under the act ,RBI got wide ranging powers for supervision &control of bank along with vested licensing powers & the authority to conduct inspections.
RBI was empoweredin1960, to force compulsory merger of weak banks with the Strong ones. As a result the total number of banks was thus reduced from 566 in 1951to 85 in 1969. In July1969, government nationalized 14 bank shaving deposits of Rs.50crores&above. A gainin1980, the government acquired 6 more banks with deposits of more than Rs.200 crores .This process of nationalization of banks was to make them play the role of catalytic agents for economic growth.
With the famous LPG policy a doption by India in1990s,the private sector banks came into Indian market which elevated the banking standards and practices in India .This step fuelled The competition between banks and steered the economic growth of the country . Today the Indian banking industry is known for its robustness all over the world.
Macro Economic View:
Going into 2012, the global economy appear so be in a continuing phase of multi-speed growth. Most recent assessments indicate that the euro are a is entering into a mild recession, while grow than employment conditions in the US are improving. Grow thin emerging markets, especially China and India, is slowing beyond what was anticipated but these two economies are still likely to provide some support for global recovery. In sum, in spite of a dip in growth, the world economy is unlikely to lap se into another recession.
Global financial market stress eased significantly during Q1of 2012 after the ECB made a large liquidity injection. However, stability and structuralism provident in the euro are a still remain the unfinished agenda. The recovery and financial stability can still bederailed by global inflation engendered by liquidity in fusion and high crude oil prices.
Early indicators suggest that growth may have bottomed out in Q3 of 2011-12 but recovery may be slow during 2012-13. Lower global demand, domestic policy uncertainties and the cumulative impact of monetary tightening lowered the growth rate to below seven percent over the last two quarters. Industrial growth remains subdued due to supply-side bottlenecks, particularly in the mining sector ,and moderation in investment demand. The pace of new loan sanctions has also decreased significantly over the past couple of quarters as corporate have postponed their capacity expansion plans in the wake of an overall slow down and rising global uncertainty. With measures being taken to remove supply-side bottlenecks, progress on fiscal consolidation could create conditions for a more favorable situation.
The growth slow down has been driven by a sharp fall in investment, some moderation in private consumption and fall in net external demand. The drag from investment is likely to continue in the near term . Consultations with industry and banks suggested that new project investment continue to be sluggish. However, if increased capitals out lay sin the latest budget are speedily translated into government capital expenditure, it could crowd in private investment.
Inflation has mode rated in recent months to under 7 percent, in line with the Reserve Bank ‟projections. However, the path of inflation in 2012-13could remain sticky with high oil prices, large suppressed inflation, exchange rate pass-through, impact of tax hikes, wage pressure and structural impediments to supply response.
In 2009-10 when Inflation touched new high in the country, the RBI chose to adopt anti inflationary policy by increasing Repo-Reverse Repo Rates and CRR. It has lead to decrease in money supply in the country. Tight Monetary policies controlled the inflation to certain extent but it had adverse effect on the economic growth as the country register red low growth than expected. The growth for Q3 of 2011-12 dropped to just 6.1%. Later, declining inflation and decelerating growth raised concerns and thus RBI went ahead with loosening the policy. There was are duct ion of 125 basis point sin CRR for the period January-March2012. Moreover, the Repo and Reverse Repo rates were also decreased by 100 basis points. But along side RBI will have to keep an eye on inflation tendencies as the loosening in monetary policy may lead to inflationary pressures in the economy. According to CRISIL research estimates the aggregate credit growth in 2012-13 is expected to be at 17%.
BANK OVERVIEW
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.
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.
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 programmes 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.
Vision Statement
To emerge as the most trusted, admired and sought-after world class financial institution and to be the most preferred destination for every customer and investor and a place of pride for its employees.
Mission Statement
To be a Top-class Bank to achieve sustained growth of business and profitability, fulfilling socio-economic obligations, excellence in customer service; through up gradation of skills of staff and their effective participation making use of state-of-the-art technology.
Global banking has changed rapidly and UCO Bank has worked hard to adapt to these changes. The bank looks forward to the future with excitement and a commitment to bring greater benefits to you.
UCO Bank, with years of dedicated service to the Nation through active financial participation in all segments of the economy - Agriculture, Industry, Trade & Commerce, Service Sector, Infrastructure Sector etc., is keeping pace with the changing environment. With a countrywide network of more than 2000 service units which includes specialised and computerised branches in India and overseas, UCO Bank has marched into the 21st Century matched with dynamism and growth!
Strengths
• Country-wide presence
• Overseas Presence with Profitable Overseas Operations
• Strong Capital Base
• High Proportion of Long Term Liabilities
• A Well Diversified Asset Portfolio
• A Large and Diversified Client Base
• Fully Computerised Branches at Major Centres
• Branch representation in Top 100 Centres (as per deposits) in the country
Organisation Structure
Headquartered in Kolkata, the Bank has 35 Regional Offices spread all over India. Branches located in a geographical area report to the Regional Office having jurisdiction over that area. These Regional Offices are headed by Senior Executives ranging upto the rank of General Manager, depending on size of business and importance of location. The Regional Offices report to General Managers functioning at Head Office in Kolkata.
RESEARCH METHODOLOGY
Research Design:
Descriptive research is undertaken for the study. Data collection was done with the help of a self developed questionnaire, designed for farmers.
Data Collection:
Secondary data: Secondary data regarding the Government sponsored financial schemes, company profile of UCO bank were obtained from Internet, circulars issued by RBI and Magazines.
Primary data: Primary data regarding the awareness of Government sponsored financial schemes and feedback of the farmers were obtained from Farmers.
Sampling Plan:
Sample unit: We have taken all kinds of people as our sample. Major samples were young and middle aged farmers. Diverse group of individuals were interviewed belonging to different locations, socio-cultural and socio-economical status. Sample unit have following characteristics
Sample size:To represent the population, we have chosen 40 people as a sample of our study.
Sampling Technique: Random sampling technique because it represents our population best.
Research tools:
o Self designed structured questionnaire for constomer
o Interview of farmers.
Location:
UCO Bank opp. railway station, Phalodi (Jodhpur) RAJ.
STUDY ON GOVERNMENT SPONSORED SCHEMES
There are several major centrally sponsored schemes under which credit is provided by banks and subsidy is received through Government Agencies. Credit flow under these schemes is monitored by RBI. Under each of these, there is a significant reservation relaxation for the members of the SC/ST communities.
1. SELF EMPLOYMENT SCHEME FOR REHABILITATION OF MANUAL SCAVENGERS (SRMS)
Reserve Bank of India has issued instructions in April 2008 to banks regarding operationalisation of the new Self Employment Scheme for Rehabilitation of Manual Scavengers (SRMS).
Objective of the Scheme:
Objective of the scheme is to assist the remaining scavengers for rehabilitation, which are yet to be assisted, in a time bound manner by March 2009.
Eligibility:
Scavengers and their dependents, irrespective of their income, who are yet to be provided assistance for rehabilitation, under any scheme of Government of India/State Governments will be eligible for assistance.
Salient features:
1. The Self Employment Scheme for rehabilitation of Manual Scavengers is applicable to Public Sector Banks.
2. The identified scavengers will be provided training, loan, and subsidy. Banks will provide loans to candidates sponsored by State Channelizing agencies only. After sanction of the loan, Bank will claim amount of capital subsidy from the State Channelizing Agencies who in turn will provide admissible capital subsidy, which will be disbursed to the beneficiary along with the loan amount. After disbursement of loan to the beneficiaries, the concerned branch of the bank will claim interest subsidy from the State Channelizing Agency on a quarterly basis.
3. Credit will be provided by the banks, which will charge interest from the beneficiaries at the rates prescribed under the scheme. National Safai Karmacharis Finance and Development Corporation (NSKFDC) or any other identified agency at the apex level, will provide interest subsidy to the banks through its State Chanelising Agencies (SCAs) or any other identified agency at the State level, for the difference between the interest chargeable by bank and the interest to be charged from the beneficiaries under the scheme. However, the procedures indicated for claiming interest and capital subsidy are suggestive in nature. The concerned State Governments and SLBC have the option of evolving any alternative procedure in the interest of smoother implementation of the scheme with mutual consent.
Funding:
1. The scheme provides for projects costing upto Rs. 5.00 lakh. The loan amount will be the remaining portion of the project cost, after deducting the admissible capital subsidy. No margin money/ promoter’s contribution is required to be provided under the scheme.
2. Both, term loan (up to a maximum cost of Rs. 5 lakhs) and micro financing (up to a maximum of Rs. 25,000) will be admissible under the scheme. Micro financing will also be done through self help groups (SHGs).
3. The rate of interest chargeable from the beneficiaries will be as follows:-
(a) For projects up to Rs. 25,000/- 4% per annum (for women beneficiaries 5% per annum.
(b) For projects above Rs.25,000/ 6% per annum.
4 Where the rate of interest chargeable by the banks on loans will be higher than the rates prescribed in the scheme, interest subsidy to the extent of the difference will be given to the banks and this will be administered by NSKFDC/ other agencies identified by the Ministry.
5 In every state annual targets of each bank will be fixed by State Level Bankers Committees (SLBC’s) as per statewise scheme targets.
4. Repayment
The period of repayment loan will be three years for projects upto Rs. 25,000 and 5 years for projects above Rs. 25,000. The moratorium period to start the repayment of loan will be six months. The State Channelising Agencies (SCAs) would distribute the funds within a period of three months to the beneficiaries.
5. Subsidy
5.1 Credit linked capital subsidy will be provided upfront to the beneficiaries in a scaled manner:
(a) For projects costing up to Rs.25,000 @ 50% of the project cost.
(b) For projects costing more than Rs. 25,000/-, @ 25% of the project cost, with a minimum of Rs. 12,500 and maximum of Rs. 20,000/-.
5.2 Beneficiaries will be allowed to avail second and subsequent loan from banks if required, without capital subsidy and interest subsidy and other grants under the scheme.
6. Role of banks
6.1 The approach towards the scheme should be employment / income oriented instead of target oriented. The successful implementation of the scheme depends on effective participation and monitoring by banks at all levels. Banks should therefore pay particular attention to this aspect and ensure that sufficient number of branches effectively participate in the implementation of the scheme in close association with the State Local Scheduled Caste Development & Finance Corporations. Bank may issue suitable instructions to their branches / controlling offices for implementation of the scheme.
6.2 The banks should ensure that their branches extend all co-operation to the applicant beneficiaries and not ask for documents, guarantees etc. not envisaged in the scheme.
6.3 The banks should not insist for deposit amount in the fixed deposit from the beneficiary.
6.4 The banks should adopt simple and transparent procedure to eliminate middlemen operating between the beneficiaries and the banks and expedite disposal of applications timely.
6.5 All loan applications up to a credit limit of Rs. 25,000/- should be disposed of within a fortnight and those for over Rs. 25,000/- within 8 to 9 weeks.
6.6 Proper record of receipt and disposal of applications as required should be maintained.
6.7 Branch Managers may reject applications (except in respect of SC / ST) provided the cases of rejections are verified subsequently by the Regional Manager.
Prime Minister's Rozgar Yojana (PMRY)
PMRY launched in 200-01 give financial assistance for selected basic services such as primary health, primary education, rural shelter, rural drinking water, nutrition and rural electrification. In 2003-04, 5803 new houses were taken up for a total outlay of Rs.1877.76lakhs. In 2004-05, 5478 houses were completed with an allocation of Rs.18.78 corers.
The total outlay on the above rural poverty alleviation schemes stood at Rs.88717.36 lakhs in 2003-04 and Rs.55330.00 lakhs in 2004-05. The Government of India's contribution towards the programmes constituted 43 per cent and 57.0 per cent in 2003-04 and 2004-05 respectively. Of the total expenditure of Rs.55330.00 lakhs in 2004-05, SGRY bagged a major share i.e. 56.00 per cent.
1. Objective
The Prime Minister's Rozgar Yojana (PMRY) has been designed to provide employment to educated unemployed youth of economically weaker sections. The scheme aims at assisting the eligible youth in setting up self-employment ventures in industry, service and business sectors.
2. Coverage
The scheme covers urban and rural areas in whole of the country
3. Target Group
The scheme covers all educated youth with the minimum qualification of VIII Standard (passed). Preference will be given to those who have been trained for any trade in Govt. recognised/approved institutions for a duration of at least six months.
4. Reservation
Preference should be given to weaker sections including women. Assistance to SC/ST beneficiaries should be targeted in such a manner that they are benefited in proportion to their population in the respective district/State. However, the number of SC/ST beneficiaries should not be less than 22.5% and 27% for Other Backward Class (OBCs) as is currently envisaged in the PMRY. In case SC/ST/OBC candidates are not available, States/UTs Govt. will be competent to consider other categories of candidates under PMRY.
5. Eligibility Norms Age:
(a) 18 to 35 years for all educated unemployed.
(b) 18 to 40 for all educated unemployed in North-East States, Himachal Pradesh, Uttarakhand and J&K.
© 18 to 45 years for Scheduled Castes /Scheduled Tribes, Ex- servicemen, Physically Disabled and Women.
Education
Educated/unemployed youth with a minimum qualification of VIII Standard (passed). Preference is to be given to persons who have received training in any trade in Government recognised/approved institutions (ITI, etc.) for a minimum duration of six months. Applicants with higher qualifications or who are still pursuing further course of studies after their matriculation are also eligible for assistance.
Annual family income
Income up to Rs. 1, 00,000/- per annum of family and up to Rs.1, 00,000/- per annum of parents of beneficiary on the date of application should be taken into account. Family for this purpose would mean the beneficiary and spouse. Family income would include income from all sources whether wages, salary, pension, agriculture, business, rent, etc.
UCO MAHAJAN –Rin Mukti Yozna
OBJECTIVE:
The objective of the scheme elp indebted farmer to reduce their outstanding dues to money lender.
ELIGIBILITY:
1. All farmers including tenant’s cultivators and oral lessees.
2. They should not be defaulter to any bank.
3. SHGs can also lend to members for debt swapping.
QUANTUM:
Maximum Rs. 25,000/-per farmer family.
REPAYMENT:
Entire amount to be repaid with a period of 5-7 years