Banking Sector – UCO Bank

Presented by – Sajal Mondal

Banking Industry
Functions of Bank

• Accepting deposits from Public

• Lending money to public
• Remittances/Collection Business
• Keeping valuables in safe custody
• Government business
• Acting as trustee
• Treasury services
• Capital Market activity
History of Banking in India
 The real roots of commercial banking in India can be traced back
to the early eighteenth century.

Bank of Hindustan was set up in 1870,it was the earliest Indian

Bank.

Later, three presidency banks under Presidency Bank's act

1876 i.e. Bank of Calcutta, Bank of Bombay and Bank of Madras
were set up, which laid foundation for modern banking in India

In 1921, all presidency banks were amalgamated to form the

Imperial Bank of India.
The first bank which was exclusively set up by Indians was Allahabad Bank,
followed by Punjab National Bank Ltd. set up in 1895 with headquarters at
Lahore

The Reserve Bank of India was established on April 1, 1935 to control &
regulate these banks in accordance with the provisions of the Reserve
Bank of India Act, 1934.

In 1955, RBI acquired control of the Imperial Bank of India, which was
renamed as State Bank of India. In 1959, SBI took over control of eight
private banks floated in the erstwhile princely states, making them as its
100% subsidiaries.

The plan for nationalization was passed in1968. Thus forming the third
turning point in the history of Indian Banking in India.
Who Regulates the Financial Sector in India?
Ministry of Finance
• Controls and assists the financial sector
• Every year the finance minister announces the budget
• Also acts as the policy maker and regulates the financial sector

Reserve Bank of India

• Apex Financial Institution of India, established in April 1935
• Advises the central board on various matters
• Acts as the investment banker to the Government

Securities and Exchange Board of India

• Regulator of securities market in India
• Protects the interest of investors in securities
• Also regulates the development of securities market

Insurance Regulatory and Development Authority

• An agency of the Government, based in Hyderabad
• It works on the guidelines of IRDA Act, 1999
• Safeguards the interest of the common man
Banking Structure in India
Indian Financial System –Share by Asset Size Indian Banking System – Share by Asset Size
- 2013 - 2013

Segment Market Share of Institutions Market Share of

Financial Assets (%) Banking Assets
Banks 63 (%)

Insurance Companies 19 Scheduled Commercial 92.4

Banks
Non-Banking Financial 8
Public Sector Banks 67.2
Institutions
Private Sector Banks 18.7
Mutual Funds 6
Foreign Banks 6.5
Provident and Pension 4
Funds Regional Rural Bank 2.7
Co-operative Banks 3.4
Local Area Banks 1.5
Share in the Banking Space

Type of Banks Number of Number of %age Share of Number of Market Share of

Banks Branches Branches Assets (%)
Public Sector 26 67,466 83.0 72.8
Private Sector 20 13,452 16.6 20.2
Foreign Banks 41 323 0.4 7.0
Total 87 81,241 100.0 100.0

Public sector banks have more presence relative to their share of assets.
 Types of Banks

Central Bank (RBI)

Non Banking Finance

Commercial Banks Term Financial Institutions
Companies (NBFCs)

Public Sector Private Sector Foreign Co-operative Regional Rural

Banks Banks State Finance Corporations Indian Financial
E.g. E.g. E.g. (SFCs) Institutions
SBI HDFC Bank Citibank
PNB UTI Bank ABN Amro E.g.
BOB ICICI Bank HSBC IFCI
NABARD
SIDBI

Primary Credit
State/Central Private
Societies
Business Division

• Loans to individuals • Loans to Mid and • Investment in • Merchant Banking,

(Auto loan, housing Large corporate Equity, Derivatives, Leasing Business,
loan, Education Loan (Working Capital Commodities, Hire purchase,
and other personal loans, Project Mutual funds, Bonds, Syndication services
loan) or small finance, Term loans, Trading and Forex etc.
businesses Lease Finance) operations

Wholesale Treasury Other Banking

Retail Banking
Banking Operations Businesses
 Loan Products Deposit Products Other Products/Services
• Auto Loan • Deposits • NRI services
• Gold Loan • Saving Accounts • POS Terminals
• House Loan • Current Accounts • Private Banking
• Credit cards • Fixed / Recurring • Demat Services
• Education Loan • Corporate Salary A/C • Mutual Fund Sales
1 Retail Banking • Loan against Securities • Foreign Exchange Services
• Retail Banking Business

Commercial Banking Transaction Banking Key Segment

• Term Loan • Cash Management • Large Corporate
• Guarantees • Custodian Services • Emerging Corporate
• Bill Collection • Clearing Bank Services • Financial Institutions
• Letter of Credit • Tax Collections • Government/PSUs
• Working Capital • Banker to Public Issues • Agriculture Commodities
2 Wholesale Banking • Forex & Derivatives Commodities(Inc Hedging)
• Wholesale Deposits

Product Segment Other Financing

• Equities • Cash Management
• Derivatives • Statutory Reserve
• Capital Market • Financial Decisions
• Debt Securities • Asset Liability Management
• Foreign Exchange
3 Treasury Banking
Growth Drivers of the Banking Industry
High growth of • Growth of infrastructure, industry, services and agriculture is expected to grow corporate credit of the
Indian Economy economy
& Favorable • Nearly 35% of the Indian population has a median age of 25.5 years which signifies that India will
Demographics gain its demographic dividend

• Given that 40% of Indians lack access even to the simplest kind of formal financial services, the RBI on
July 2011, mandated banks to allocate at least 25% of the total number of branches proposed to be
Financial opened in unbanked rural sector
Inclusion (FI) • Banks considering FI as a banking opportunity rather than a Regulatory obligation are likely to see
long term profitable growth and a cushion against market volatility

• India not only enjoys a favorable demographic dividend but also has a strong population of High Net
Private Banking & worth Individuals (HNWI)
Wealth • Given the improved performance of the equity markets in 2013 & increasing affluence beyond urban
Management and metro areas the number of HNWIs is expected to rise further, HNWIS will continue to demand
better or more sophisticated service

• New channels in banking services such as internet banking, mobile banking have increased
Technology productivity and help in acquiring new customers
Innovation • As per a survey conducted by PwC, today banks spend 15% of the total expenditure on technology
today
Opportunities in the Banking Sector
• Mortgage to cross Rs 40 lakh crores by 2020
• Wealth Management to be a big business
• Rapid growth of branches & ATMs
• Mobile banking to see huge growth
• Infrastructure financing to reach over Rs 20 trillion on commercial banks book by 2020
• New Models to serve the small & Medium Enterprises (SME)
UCO bank
Profile of UCO bank
• Established by G.D. Birla on 6th January 1943
• The bank was nationalized on 19th July 1969
• Headquarter in Kolkata
• As of September 2013 Mr. Arun Kaul is the chair man & Managing director of UCO bank
Size of UCO bank
• The bank has some 45 regional offices and more than 2,600 branches throughout the country.
The bank also operates two major international financial centers in Hong Kong and Singapore
• Market capitalization of UCO bank is Rs 5,046 Cr
• CAGR of UCO bank 16.15%
• No. Of employee is 24,201
• Honours Your Trust s the tag line and Commitment to Customers is the USP.
• Major competitors of UCO bank are . Indian bank, Union Bank of India, Dena bank, Indian
Over seas bank
Various scheme offered by UCO bank
• UCO KISAN BHOOMI VRIDHI Scheme

• UCO KISAN TATKAL Scheme

• UCO ESTATE PURCHASE LOAN Scheme

• Scheme for Solar Irrigation Pump set

CSR of UCO bank
• The Bank believes that carrying out Corporate Social Responsibility (CSR) helps in tangible
value-creation. Moreover, CSR, creates a positive image in the society and inculcates essence
of loyalty for the Bank among a cross-section of countrymen.

• - An amount of Rs. 4.90 lakh to Shivaji University, Kolhapur, Maharashtra under environment
protection category for installation ofSolar Plant Device.
• - Rs. 2 lakh to Ramakrishna Math, Nattarampalli, Vellore, Tamilnadufor construction of
building for an orphanage
• - Rs. 10 lakh to Mahaveer Viklang Sahayata Samity, Jaipur for helping the physically
challenged.
Career opportunity in UCO bank
Finance professional is key element of Banking Industry. A commerce graduate can enter this industry but top notch management jobs goes to
persons having MBA specialization in Finance. Today there is lot of competition in Banking industry as lot of Investment products have been
launched by various banks. MBA finance and Marketing Professionals are in great demand by Banking Industry to market these products.

• Business Development Manager in Financial Services

• Branch Manager in Retail Banking

• Business Development Manager in Corporate Sales

• Business Development Manager Broking

• Portfolio Manager

• Banking Business Analyst

• Banking Customer Service Manager

• Bank Loan Manager

• Assistant Bank Mana

 •Skills & competencies
Key Management Skills required in Banking Industry are -
•Communication skills
•Analytical Skills
•Decision making skill
•Teamwork Sills
•IT skills
They help Bank Manager to have a cordial atmosphere in Bank so that customer is
satisfied with services and financial product information provided by Bank

Recruitment criteria for UCO bank

As UCO bank is public undertaking bank it`s all recruitments are done through IBPS exam.
The candidate should qualify the mentioned exam for get chance in UCO bank. For the MBA
graduates bank has some own quota, but candidate should go through the exam. Some time
the bank hires MBA graduate from the college campus.
SWOT analysis of UCO bank
SWOT Analysis-

1. Foreign exchange Operations

2. Diverse Asset portfolio
3. High proportion of long term liabilities
4. UCO Bank has over 2000 Service Units spread all over India, with two overseas
branches in Singapore and Hong Kong
Strength 5. One of the oldest and major commercial bank of India

1. Lacks International presence

2. Retail banking is lesser as compared to other banks
Weakness 3. Weak internet banking when compared to big banks

1. Small enterprise banking

Opportunity 2. More penetration through rural banking

1. Economic slowdown
2. Highly competitive environment
Threats 3. Stringent Banking Norms
 Prepared by:-

Thank You Sajal Mondal