Professional Documents
Culture Documents
Banks often start as microcredit or savings clubs which become formalized, first
as credit unions and later savings banks which transform themselves from
cooperatives to limited liability companies. A fuller description of these forms
appears below.
The oldest bank still in existence is Monte dei Paschi di Siena, headquartered in
Siena, Italy, and has been operating continuously since 1472
HISTORY
Banking in the modern sense of the word can be traced to medieval and early
Renaissance Italy, to the rich cities in the north like Florence, Venice and Genoa.
The Bardi and Peruzzi families dominated banking in 14th century Florence,
establishing branches in many other parts of Europe. Perhaps the most famous
Italian bank was the Medici bank, set up by Giovanni Medici in 1397. The
earliest known state deposit bank, Banco di San Giorgio (Bank of St. George),
was founded in 1407 at Genoa, Italy.
Banks can be traced back to ancient times even before money when temples were
used to store commodities. During the 3rd century AD, banks in Persia and other
territories in the Persian Sassanid Empire issued letters of credit known as Ṣakks.
Muslim traders are known to have used the cheque or ṣakk system since the time
of Harun al-Rashid (9th century) of the Abbasid Caliphate. In the 9th century, a
Muslim businessman could cash an early form of the cheque in China drawn on
sources in Baghdad, a tradition that was significantly strengthened in the 13th
and 14th centuries, during the Mongol Empire.
Fragments found in the Cairo Geniza indicate that in the 12th century cheques
remarkably similar to our own were in use, only smaller to save costs on the
paper. They contain a sum to be paid and then the order "May so and so pay the
bearer such and such an amount". The date and name of the issuer are also
apparent.
Origin of the word
The word bank was borrowed in Middle English from Middle French banque,
from Old Italian banca, from Old High German banc, bank "bench, counter".
Benches were used as desks or exchange counters during the Renaissance by
Florentine bankers, who used to make their transactions atop desks covered by
green tablecloths.
Definition
The definition of a bank varies from country to country. Under English common law, a
banker is defined as a person who carries on the business of banking, which is
specified as:
Banks provide almost all payment services, and a bank account is considered
indispensable by most businesses, individuals and governments. Non-banks that
provide payment services such as remittance companies are not normally
considered an adequate substitute for having a bank account.
Banks borrow most funds from households and non-financial businesses, and
lend most funds to households and non-financial businesses, but non-bank
lenders provide a significant and in many cases adequate substitute for bank
loans, and money market funds, cash management trusts and other non-bank
financial institutions in many cases provide an adequate substitute to banks for
lending savings too.
Channels
Banks offer many different channels to access their banking and other services:
ATM is a machine that dispenses cash and sometimes takes deposits without
the need for a human bank teller. Some ATMs provide additional services.
Call center
Mail: most banks accept check deposits via mail and use mail to communicate to
their customers, e.g. by sending out statements
Online banking is a term used for performing transactions, payments etc. over
the Internet
During this global meltdown and fall of exports, if the Fast Moving
Consumer Goods (FMCG) sector has been able to show rising quarterly
growths, it is because of the Rural Markets and their rising spending
power, which have not been affected by this meltdown. If we look at the
strategies followed by Rural Marketers in the FMCG sector, it is to sell
many small sachets of Rs. 2 shampoo pouches, Rs. 5 Maggi packs and
the Rs. 5 chota Pepsi, because here, the strength lies in volume sale,
considering the large consumer base in these rural markets which won’t
spend altogether at once on buying large family packs of 500ml shampoo
or super saver packs of Maggi or a Pepsi pet bottle of 2 litres.
India has been considerably shielded from the global recession. Firstly,
we are not very dependent on the exports for our GDP and have a good
consumer base in India. Secondly, we are a saving prone economy,
unlike western economies which are consumption prone. Thirdly, when
banks across the world are falling like a pyramid of playing cards; we are
safe, steady and strong, with our banks which have acted like a strong
backbone of our economy during present turmoil. And just like thr FMCG
sector, there is tremendous growth potential in the banking sector,
because firstly, the rural masses have the habit of saving and spending
only when needed. Secondly, their small credit requirements for
agriculture, cottage industry and marriages etc.
But the problem is that banks have not been able to reach a vast majority
of the rural population; the rural poor have limited access to organized,
affordable and transparent financial services such as savings, loans,
remittances and insurance services etc. It is important for them to have
access to banking services, especially credit and insurance, to enlarge
livelihood opportunities and to empower themselves to take charge of
their lives.
An improved rural banking under the umbrella of the RBI by the means of
mobile banking, self help groups and microfinance institutions is
important. The effective use of development communication, using
Information and Communication Technology (ICT) will help to create
awareness for financial inclusion through banks and make it a success.
Here, it is important to use technology as an enabler via mobile banking,
because large numbers of Indians are using mobile phones. Using mobile
phones for banking operations will cut costs by branchless banking, as
there is no need for physical infrastructure and human resources, which
is a problem in rural areas and a major constraint in carrying out banking
operations. It will also make it convenient, safe, reliable and transparent.
TYPES OF BANKS
Banks come with a variety of names, and one bank can function
as several different types of banks. Some of the most common
types of banks are:
Retail banks
Commercial banks
Investment banks
Central banks
Credit unions
Online banks
Savings and loans
RETAIL BANKS
A retail bank is a bank that works with consumers, otherwise known as
'retail customers'.
Retail banks are the banks you most often see in cities on crowded
intersections, the ones you probably use for your personal checking
account.
Commercial banks handle banking needs for large and small businesses,
including:
Lines of credit
Letters of credit
Lockbox services
Foreign exchange
Businesses have unique needs that consumers don’t have. For example,
some businesses need a commercial bank that can accommodate a large
volume of credit card payments and cash deposits.
INVESTMENT BANKS
CENTRAL BANKS
A central bank is an organization responsible for managing banking
activity. Within the USA the central bank is the Federal Reserve, or 'the
Fed'. Other countries have central banks as well. Their roles are similar, but
they may have different objectives.
Most consumers do not interact with the central bank. Instead, large
financial firms generally work with the central bank in the background
CREDIT UNIONS
Credit unions are nonprofit organizations that strive for service over
profitability. Note that I said that credit unions are nonprofits, however
they are not charities. Credit unions must make sound financial
decisions.
ONLINE BANKS
Online banks are banks that you primarily (or exclusively) use on the Internet. Online
banks allow you to have more choice and flexibility. You can do things on a computer,
and you often get more competitive rates from online banks. They claim that they do not
have the overhead and expenses associated with brick-and-mortar banks, so they can
Open accounts
Fund accounts
Buy CDs
Get loans
War II, the government helped build the Savings and Loans industry by insuring deposits on savings accounts.
This encouraged people to save their money, despite federally-regulated low interest rates. These funds were
lend through 30-year mortgages. Despite higher interest rates, the length of the loans allowed homeowners to
CONSOLIDATION OF BANKS
It is inevitable! In the Indian banking scenario, consolidation is the next step for
evolution.
A look at the international scene suggests that, size does matter. To put things in
perspective; State Bank of India [ Get Quote ] is three times the size of Bank of
America (BoA). SBI is reaching 90 to 100 million customers while BoA has 30 million
customers.
But if you look at assets, BoA has more than a trillion dollar of assets as against
SBI's asset size of Rs 4,000 billion. That gives BoA the muscle to cut costs and
amplify earnings.
The statistics for total loans to GDP ratio also draws a sorry picture of the Indian
banking industry.
As net interest margins get thinner, the need for more sophisticated products and
low-cost technology is felt. The only answer to this is to create synergies by
consolidating with complimenting entities
To trigger the next phase of consolidation in the banking sector, the Reserve Bank of
India is expected to draw a fresh set of guidelines later this month. It is believed that
the new draft guidelines will encourage foreign banks to acquire stakes in Indian
banks.
The government has clearly indicated that more capital from private and foreign
banks is needed to make the banking sector robust.
There are several foreign banks, which are yet to start their operations in India and
are looking at strategic alliances to make their presence felt in India.
There are 29 private banks in the country. Of these, around 15 are envisaging to
raise resources in the near future. Once the government comes out with clear
guidelines, these banks will either go in for IPOs, seek strategic alliances or
placements with private equity funds.
It is also expected that most of the profitable private sector banks will fall prey to a
takeover bids by their brawny counterparts.
FUTURE OF BANKING IN INDIA
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.
Shri N. R.
Badrinarayanan
Executive Director
Overview
We are in the Service of Community since 1943.
We have nearly 2000 Service Units spread all over India.
We also operate in two Major International Financial Centres namely
Hongkong and Singapore.
We have our Correspondents/Agency arrangements all over the
world.
We undertake Foreign Exchange Business in more than 50 Centres
in India.
We have Foreign Exchange Dealing Operations at 4 Centres.
Our Vision Statement
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!
BranchesATMServices
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, Chattisgarh, 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.
• NRI Banking
• Finance/Services to Exporters
• Finance/Services to Importers
• Remittances
26. The Bank looks to the future with confidence with clear-cut strategies in
place. During the year ahead we shall focus on low cost deposits, ensure
better asset quality, leverage technology to the maximum to serve customers
better and keep a focused vigil on NPA. The goal is to maximize profits &
strengthen our balance sheet in our pursuit to become one of the top 5 banks
in the country.
Besides the overseas expansion, the bank also plans to increase its presence in
the country over the next two years.
"We are present in 2,177 locations and have 600 ATMs. We want to have
3,000 branches and 3,000 ATMs in the country by March, 2013," Kaul, who
was here yesterday, said.
"As of now we have a subscriber base of over 1.5 crore. We want to leverage
that and if we increase our presence we will be able to add more
customers...," he said.
RESearch METHOdology
Scope of the study
Period of the study
Research objective
Data collection methods
Scope of the study
The project entitled “A Study on the performance evaluation of uco bank
financial analysis” will enable from the investors point of view to refer the
performance of the Banks, their relative growth and thereby decide on to
buy or sell the particular slab. This study will also help to identify the
bank that is lagging behind in its performance
Research objective
Every task is undertaken with an objective. Without any objective a task is
rendered meaningless.
The main objective of this study was to know about history of uco bank,
their management level, their products and services, their shareholding pattern,
their customer care services and also know about their financial performance. In
short to know in detail about
uco bank.
SOURCES OF DATA
“Secondary data are those, which have already been collected by some
other persons for their purpose and published. Secondary data are
usually in the shape of finished products.”
Internet
Uco bank related and topic related websites also provided significant
contribution in data collection.
FINANCIAL STATEMENT OF BANK
FINANCIAL ANALYSIS
FINANCIAL STATEMENT OF BANK
Mar '06 Mar '07 Mar '08 Mar '09 Mar '10
Assets
Cash & Balances with RBI 2,032.15 3,794.27 5,702.72 6,588.85 7,242.73
Balance with Banks, Money at Call 1,311.08 2,420.26 2,400.80 4,264.59 861.60
37,377.5
Advances 46,988.91 55,081.89 68,803.86 82,504.53
8
19,636.3
Investments 19,524.87 24,249.63 29,384.78 43,521.43
1
Gross Block 987.36 1,115.89 1,211.73 1,339.17 1,401.25
Accumulated Depreciation 378.92 449.19 527.39 620.59 691.40
Net Block 608.44 666.70 684.34 718.58 709.85
Capital Work In Progress 0.00 0.00 0.00 0.28 0.18
Other Assets 873.84 1,468.88 1,675.55 1,903.22 2,479.15
61,839.4
Total Assets 74,863.89 89,794.93 111,664.16 137,319.47
0
12,849.2
Contingent Liabilities 17,499.93 24,507.59 45,276.80 31,810.93
0
Bills for collection 5,076.31 3,704.70 5,894.71 6,031.97 8,321.86
Book Value (Rs) 24.86 27.66 31.08 50.88 65.74
PROFIT AND LOSS A/C OF UCO BANK OF FIVE YEARS(2006-1O)
Profit & Loss account of UCO Bank ------------------- in Rs. Cr. -------------------
Mar '06 Mar '07 Mar '08 Mar '09 Mar '10
Income
Interest Earned 4,354.59 5,317.84 6,508.56 8,121.38 9,526.32
Other Income 463.73 550.43 772.13 1,019.89 965.93
Total Income 4,818.32 5,868.27 7,280.69 9,141.27 10,492.25
Expenditure
Interest expended 2,788.84 3,623.16 5,020.81 6,476.68 7,202.20
Employee Cost 879.94 833.13 894.54 997.54 1,057.62
Selling and Admin Expenses 325.30 454.93 561.89 489.48 612.22
Depreciation 43.03 60.56 69.87 83.61 74.19
Miscellaneous Expenses 584.56 580.40 321.41 536.25 533.85
Preoperative Exp Capitalised 0.00 0.00 0.00 0.00 0.00
Operating Expenses 1,358.64 1,482.82 1,675.99 1,731.40 1,938.23
Provisions & Contingencies 474.19 446.20 171.72 375.48 339.65
Total Expenses 4,621.67 5,552.18 6,868.52 8,583.56 9,480.08
Mar '06 Mar '07 Mar '08 Mar '09 Mar '10
Net Profit for the Year 196.65 316.10 412.16 557.72 1,012.19
Extraordionary Items 0.00 0.00 0.00 0.00 0.00
Profit brought forward 153.26 286.12 405.27 600.23 804.80
Total 349.91 602.22 817.43 1,157.95 1,816.99
Preference Dividend 0.00 0.00 0.00 0.00 0.00
Equity Dividend 0.00 79.94 79.94 60.22 127.03
Corporate Dividend Tax 0.00 11.21 13.59 10.23 21.59
Per share data (annualised)
Earning Per Share (Rs) 2.46 3.95 5.16 10.15 18.42
Equity Dividend (%) 0.00 10.00 10.00 10.00 15.00
Book Value (Rs) 24.86 27.66 31.08 50.88 65.74
Appropriations
Transfer to Statutory Reserves 59.74 105.80 123.67 282.69 318.26
Transfer to Other Reserves 4.06 0.00 -0.01 0.00 1.13
Proposed Dividend/Transfer to Govt 0.00 91.15 93.53 70.45 148.62
Balance c/f to Balance Sheet 286.12 405.27 600.23 804.80 1,348.98
Total 349.92 602.22 817.42 1,157.94 1,816.99
CASH FLOW OF UCO BANK
Mar '06 Mar '07 Mar '08 Mar '09 Mar '10