Customer Satisfaction With Ebanking in Uco Bank

CUSTOMER SATISFACTION WITH E-BANKING IN UCO BANK

CHAPTER 1 INTRODUCTION OF E- BANKING

Growth of Electronic banking in a country depends on many factors, such as success of internet access, new online banking features, household growth of internet usage, legal and regulatory framework. E-banking can offer speedier, quicker and dependable services to the customers for which they may be relatively satisfied than that of manual system of banking. E-banking system not only generates latest viable return, it can get its better dealings with customers. The rationale of this research is to recognize the impact of variables of e-banking on customer pleasure in Bangladesh. Ali and Akter argued that a transitional period in the banking sector of Bangladesh has been passing through since shifting from the traditional banking system to the online banking system. These comments indicate that gradually electronic banking is gaining its importance in Bangladesh. Customers liking is necessary for the banking sector to elevate profitability, business expansion and accomplishment. Now a day‟s banking sector is modernizing and expanding its hand in different

financial events every day. At the same time the banking process is becoming faster and easier. In order to survive in the competitive field of the banking sector commercial banks are looking for better service opportunities to provide their customer. The paper has been undertaken mainly to find out whether wh ether e-banking can satisfy the customers or not. One of the most recent channels of distribution to be used in the financial services organizations is electronic banking; this method was established in the mid 1990s, thereafter steadily becoming more important. The term electronic banking refers to "the provision of information or services by a bank to its customers, via a computer or television. A more developed service is one that provides customers with the opportunity to gain access to their accounts and execute transactions or to buy product online via the internet. Page | 1


Compatible with the revolutionary components of the electronic marketplaces, Jordan has actively developed e-banking services since 2004. Moving towards an industrialization nation with knowledge economy as the backdrop, the personal computer and online approach of life is growing in Jordan. Public awareness of e-banking among users has been increased and thus people are ready to migrate to technology applications. With the population of approximately 6 million in Jordan, it is vital for bankers to understand the current usage trend of E- banking system some scholars have shown that many international internet users demonstrate similar behavior and preference across nations. Other researcher have studied the internet in the context of traditional cultures, and yet delimited by national borders, Some studies have examined the issues on the evolution of e-banking and investigated the success factors in various e-delivery channels in banking scenario .Some have investigated customer preferences of e-banking. This study examines the factors which contributes and enhances the adoption of ebanking in Jordan, and the impact of e-banking functionality on the satisfaction outcomes for Jordanian banks customers. Also, this research assesses whether the adoption of ebanking customers in Jordan is constrained by the technology, particularly on the basis of different demographic characteristics, such as different age groups, educational level, income level etc.

Page | 2


CHAPTER 2 DFINITION OF E-BANKING

The concept of electronic banking has been defined in many ways. Daniel defines electronic banking as the delivery of banks' information and services by banks to customers via different delivery platforms that can be used with different terminal devices such as a personal computer and a mobile phone with browser or desktop software, telephone or digital television. Pikkarainen at all define internet banking as an "internet portal, through which customers can use different kinds of banking services ranging from bill payment to making investments". With the exception of cash withdrawals, internet banking gives customers access to almost any type of banking transaction at the click of a mouse. Indeed the use of the internet as a new alternative channel for the distribution of financial services has become a competitive necessity instead of just a way to achieve competitive advantage with the advent of globalization and fiercer competition. Banks use online banking as it is one of the cheapest delivery channels for banking products. Such service also saves the time and money of the bank with an added benefit of minimizing the likelihood of committing errors by bank tellers. Robinson believes that the supply of internet banking services enables banks to establish and extend their relationship with the customers. There are other numerous advantages to banks offered by online banking such as mass customization to suit the likes of each user, innovation of new products and services, more effective marketing and communication at lower costs, development of non-core products such as insurance and stock brokerage as an expansion strategy, improved market image, better and quicker response to market evolution. Wise and Ali argued that many banks want to invest in ATMs to reduce branch cost since customers prefer to use them instead of a branch to transact business.

Page | 3


The financial impact of ATMs is a marginal increase in fee income substantially offset by the cost of significant increases in the number of customer transactions. The value proposition however, is a significant increase in the intangible item "customer "cu stomer satisfaction". The increase translates into improved customer loyalty that in result in higher customer retention and growing organization value. Internet banking is a lower-cost delivery channel and a way to increase sales. Internet banking services has become one of the most important factors in the business economy today.

Page | 4


CHAPTER 3 RESEARCH METHODOLOGY



SCOPE OF THE STUDY



PERIOD OF THE STUDY



RESEARCH OF THE STUDY



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 investor point of view to refer the performance of

the bank, 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 in its performance.

PERIOD OF THE STUDY

For the purpose of the study 5 years period starting from the financial year Mar 2008 to Mar 2012 in considered. The year 2008-2012 is chosen as a terminal year since only upto this period reliable time series data were available for the variable dealt in the study.

RESEARCH OBJECTIVE

Every task is undertaken with an objective. Without any objective a task is rendered meaningless.

Page | 5


The main objective of this study was to know about history of UCO BANK their management level, their product 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



To know the strategies of UCO BANK



To identify areas where UCO BANK

DATA COLLECTION METHODS

Research methodology is considered as the newer of the project. Without a paper well-organized research plan, it is impossible to complete the project and reach to any conclusion. The project was based on the survey plan. The main objective of survey was to collect appropriate data, which work as a base for drawing conclusion and getting result. Therefore, research methodology is the way to systematically solve the research problem. Research methodology not only talks of the methods but also logic behind the methods used in the context of research study and it explain why a particular method has been used in the preference of the other methods. SOURCES OF DATA Primary Source of Data ―Primary data are those collected by the investigator himself for the first time and thus they are original in character, they are collected for a particular purpose.”

Secondary Source of Data ―Secondary data are those, which have already been collected by some other person for their purpose and published. Secondary Secondar y are usually in the shape of finished product.”

Page | 6


Secondary data is used for the preparation of the project work. 

Business magazines



Journals



Company broachers and books



Published books

 Website

Bank Records

Uco Bank records of an annual reports, profit & loss statement, ratio cash flow statement of previous five years etc. has given valuable information for the present study. Internet

Uco Bank has an own web site that we are gat the all the information related to Uco Bank. I.e. information about bank, share holders, and also financial statement.

Page | 7


CHAPTER 4 FUNCTION & PERFORMANCE OF UCO BANK

OVERVIEW

UCO Bank, previously known as united commercial bank, is a leading commercial bank in India. Founded in Kolkata in 1934, Uco Bank is one of the oldest Indian bank as well, it was the eminent Indian industrialist Ghanshyam Das Birla who, during the quit India movement in 1942, though of establishing the commercial bank with Indian capital and management. United commercial bank was the outcome of that idea and services community since 1943. It, along with 13 others, was nationalized on July 19, 1969. In the 1985, its name was changed to UCO bank. Currently, UCO bank has around 2000 services united spread the entire nation. It also has two overseas branches in Hong Kong and Singapore. In UCO Bank they are having the country- wide presence, overseas presence with Profitable Overseas Operations, Strong capital Base, High proportion of long term liabilities, A Well Diversified Asset Portfolio of a large and diversified client base & fully computerized Branches at Major Centers. UCO Bank Branches representation in top 100 centers in the country. UCO bank has its presence in all of the company including industry, Agriculture, Infrastructure sector, services sector and trade & commerce. It works becoming one of the most trusted and admired financial institution as well as the most sought- after destination for the customer and investors.

Page | 8


UCO Bank has large number of services units (around 2000) located across the nation and overseas. These also include specialized and computerized branches. It also has its Correspondents / Agency arrangement all across the world. UCO Bank also carried out Foreign Exchange Business in more than 50 centers across the nation with 4 Foreign Exchange Dealing Operation centers.

Page | 9


VISION AND MISSION



Vision

To be the leading provider of financial services in India a major global bank. ban k.



Mission

We will leverage our people, technology, speed and financial capital to: Be the banker of first choice for our customers by delivering the high quality, world class product and services.



Expand the frontiers of our business globally.



Play a proactive role in the full realization of India‟s potential.



Maintain a healthy financial profile and diversify our earning across.





Contribute positively to the various countries and market in which we operate.

Create valuable for our stockholders

Page | 10


DEPOSIT SCHEMES Following deposits schemes are offered by UCO BANK: 

No-frills Saving Bank Account

In order to include a larger cross-section of the population, who are at the bottom of the pyramid, to avail of the banking services who could not avail of the same on account of some restrictive clauses, namely, minimum initial deposit for opening of the account which is difficult to arrange by such population, maintenance of minimum balance failing which charges are levied etc., it has been felt expedient to introduce a new Savings Deposit Scheme titled "UCO No-frills Savings Bank Account". 

Initial deposit for opening the account and maintenance of minimum balance: The account can be opened with a minimum initial deposit of

Rs.5/-. In case of cheque facility being availed by the account holder, the minimum initial balance should be Rs.250/-. In case of need, the balance in the account may be allowed to go even below the minimum initial deposit and the account may continue even with "Zero" balance. Opening of Account under the scheme - The scheme is introduced in all metro, urban, semi-urban and rural categories of branches without making any differentiation with regard to amounts of initial deposit and maintenance of minimum balance as prevailing at present for opening of Savings Bank Accounts. 

Eligibility for opening "No-frills Savings Bank Account": The eligibility

for opening "No-frills" Account will be the same as that for opening an ordinary Savings Bank Account. Persons above the age 10 and below 18 years and are able to read and write May also open a minor no-frills savings account in his own name or jointly with any other person.

Page | 11




Restriction of number of withdrawals/debit entries in "No-frills" Account: up to 25 debit entries in a half-year are allowed free in those

accounts. In case the debit entries exceed 25 during a half-year, charges will be levied @ Rs.3/- per additional entry en try during a half-year. 

Compliance of KYC Guidelines: Simplified KYC procedures for opening

of Accounts as advised through Bank's Circular No. CHO/SUA/39/2005-06 dated 29.08.2005 may be adhered to. The salient features of the Circular are mentioned hereunder for ready reference : a) Introduction from another account holder who has been subjected to full KYC procedure. The introducer's account with the bank should be at least six month old and should show satisfactory transactions. Photographs of the customer who proposes to open the account and also his address need to be certified b y the introducer. b) Furnishing any other evidence as to the identity and address of the customer to the satisfaction of the bank. However, while opening such accounts the customer should be made aware that if at any point of time, the balance in all his/her accounts with the bank (taken together) exceeds Rs.50,000/- or total credits in the accounts exceed Rs.1.00 lakh in a year, no further transaction will be permitted in the account until full KYC procedure in regard to verification of identity and address of the customer through the documents as specified are complied with.



Money Back Recurring Deposits:

It is a long term Recurring Deposit scheme with intermediate withdrawal facility. Deposits are to be made every month, and the maturity period is after 120 months. You will be having two options

Page | 12




You may opt to have one intermediate withdrawal at the end of 60 months and get the final payment at the end of 120 months, or



You may withdraw immediately at the end of 36 months and 72 months, and get the maturity amount at the end of 120 months.



Friends- in- Need Schemes

This Term Deposit earns high interest and simultaneously offers overdraft facility through a Current Account. Cheque facility is available for withdrawal of money limited to 90% of the deposit. The drawls together with interest can be paid back in installments, without affecting the growth of the deposit. This unique combination of fixed deposit with cheque facility comes as your true friend in meeting your emergency needs.



Two-way Deposit Schemes

This deposit scheme is devised to invest the surplus fund that you may keep in your Savings Bank or Current Account. Under the scheme, the surplus fund is invested in short term deposits for 46 days, and then is either paid back or renewed, as desired by you. The deposit earns a high interest while retaining its liquidity. The periodical transactions can be automatic as per your instructions. By making use of your idle money, the scheme provides you an option to meet both your short term and long term requirements.



Lakshmi Yojana & Kuber Yojana

A long term fixed deposit scheme. Interest is compounded every quarter by way of reinvestment. Thus the scheme generates a large sum of money at the time of maturity. The scheme meets the need for a safe long term investment.

Page | 13




Flexible Fixed Deposit Schemes

Deposits are accepted under reinvestment plan with the difference that a part of the deposit can be prematurely encased without affecting the remaining portion that continues to earn interest at the agreed rate. Withdrawal is allowed in multiples of Rs.5000/-. It is indeed a matchless scheme to take care of your emergency needs.



Special Deposit Scheme for Senior Citizen 

For all term deposits (domestic/NRE), from Senior Citizens of age 60 years and above, regardless of size of deposits, an additional interest of 0.5 per cent over the normal rate of interest will be payable on maturity periods of one year and above. This will be applicable for fresh term deposits and renewals.



Verification of Age: For the purpose of verification of age, at the time of opening a new term deposit account of a Senior Citizen, the branches should satisfy about the age by verifying any of the following documents :a) Secondary School Leaving Certificate indicating date of birth, b) LIC Policy, c) Voters Identity Card d) Pension Payment Order, e) Birth Certificate issued by the competent authority, f) Passport, or g) Any other document acceptable to the branches.



Renewal of Accounts of Senior Citizens

Once the age of a Senior Citizen is verified for accepting a term deposit under this special scheme, bank shall not seek proof of age for renewal of the deposit or for accepting subsequent term deposits from the same depositor under this special scheme.

Page | 14




Treatment of Joint Depositors

For term deposits from Senior Citizens jointly, with other person below the age of sixty years, under this special scheme, it has to be ensured that the name of the Senior Citizen is noted as the first name in the application for such deposits.



Automatic Transfer to Nominee

For this special deposit scheme for Senior Citizens, there will be automatic transfer of deposits to the nominees of such depositors in the event of death of the depositor.



Eligibility for Members of Staff

Branches may pay additional interest to our retired staff members, who are senior citizens on their fresh term deposits and on renewals of existing term deposits there is no restriction in regard to the minimum amount. However, the amount of maximum deposit shall not exceed Rs. 25 lakhs per ex-staff member.



Fixed Deposits in Foreign Currency at Overseas Branches

Eligibility Resident Individuals only Type of Account a) Fixed Deposit Account b) Currency of the Account Account may be opened in US Dollars, Great Britain Pound, Euro and Australian Dollar. Minimum Amount

Page | 15


US Dollars

US$ 5,000

GBP

GBP 3,000

Euro

Euro 4,000

AUD

AUD 7,000

Interest Tenure of Deposits For the period from one month onwards. o nwards. Premature withdrawal of deposits The interest is paid at the rate of half of one percent below be low the rate for the period for which the deposit has actually remained with the overseas branch, as prevailing on the date of issue/renewal or date of payment, whichever is lower. No interest is paid if the deposit has remained with the overseas branch for less than 30 days. No loan is envisaged by RBI under the Scheme. Local Rules to Apply All deposits will also be subject to Local Rules in the country of Deposit as prevailing from time to time.



Revised Minimum Balance Schedule

Current Deposit Account

Category

of As per location of branches offices

depositors

metro

urban

Semi-urban

rural

Individual

Rs.3000/-

Rs.3000/-

Rs.2000/-

Rs.1000/-

Other

Rs.5000/-

Rs.5000/-

Rs.2500/-

Rs.2000/-

Page | 16


b) Saving Bank Account (with cheque book facility)

Individual

Rs. 1000/-

Rs.1000/-

Rs.500/-

Rs.250/-

Other

Rs.1500/-

Rs.1500/-

Rs.1000/-

Rs.250/-

Pensioners a/c

Rs.250/-

Rs.100/-

Rs.100/-

Rs.100/-

Rs.500/-

Rs.250/-

Rs.100/-

Rs.50/-

Rs. 50/-

Rs. 50/-

(Without cheque book facility)

All

class

of Rs.500/-

depositors Pensioners a/c



Rs.50/-

UCO Tax Saver deposit Scheme

UCO Tax Saver Deposit Scheme 2006 is a Term Deposit Scheme with maturity of not less than 5 years subject to lock in period of 5 years. 

Who can open the Account -

1. An individual for himself 2. Hindu undivided family ; In the case of deposits in joint names, the benefit under section 80C of the Income Tax Act shall be available only to the first holder of the deposit. 

Amount of Deposit - Minimum Rs.100/- and maximum Rs.1 lakhs in a year (1st

April to 31st March).

Page | 17




Period of deposits and payment on maturity - The period of deposit under the

scheme shall be not less than five years. Rates of interests on Fixed Deposits under the UCO TAX SAVER Scheme, where the deposit has to be essentially kept for a period of 5 years, will be the rate for term deposit for a period of 5 years as under: Pre revised rate

Revision

in

rate

w.e.f

24.04.2012 Category of deposit

Rate of Interest (%) per Rate of Interest (%) per annum

annum

General

9.25%

8.75%

Sr. Citizen

9.75%

9.25%

Staff/ ex-staff who is also

9.75%

9.25%

Sr. citizen

All branches are advised to take note of the above changes in rates of interest for Domestic Term Deposits up to Rs. 5 Crore effective from 22.8.2011 on all fresh deposits as well as renewal of existing deposits. Income Tax Benefits – Deposit under the scheme is eligible for deduction under Section 80C of the Income Tax Act up to a maximum limit of Rs.1 lakh Nomination facility - available Transfer from one branch to another - permitted. Inter bank transfer not allowed. Loan against the deposit and Pledging of term deposit receipt - Not allowed Issue of Duplicate Term Deposit Receipt - Duplicate receipts may be issued in accordance with the guidelines in this regard. Page | 18




UCO Premium Plus

The Bank has introduced a new product --- UCO PREMIUM PLUS CURRENT ACCOUNTS designed to offer a comprehensive range of REMITTANCE services covering DD / TT /MT / RTGS / NEFT / Pay Orders etc. This simple product aims at maximizing the benefits for the customer who requires regular movement of funds. Normal service charges would be applicable for all other services except the remittance services.

Page | 19


LOAN SCHEMES Following loan scheme are offered:



UCO Shelter 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 of interest 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.

Quantum of loan The area-specific maximum limits for construction/purchase are as under: Location/ centre

For construction/ purchase

For

Repair/

Extension/

Renovation Metro/

Urban/

Semi-

Rs.100 lakhs

Rs. 25 lakhs

Rs. 25 lakhs

Rs. 7.5 lakhs

Urban Rural

Maximum limits for Furnishing are Rs.5.00 lakhs in Metro/Urban/Semi-Urban areas/ rural areas.



UCO Car This is an easy finance scheme for purchase of a new car as well as second hand vehicle not older than 5 years.

Margin Requirements: - Maximum Finance shall be 85% of the Ex- Showroom Car Price.

Page | 20


Quantum of loan - Maximum Loan Amount Rs. 25.00 lakhs. Processing Charges - 1% of the loan amount maximum Rs. 1500/-. 

UCO Trader

It is a loan for financing working capital and Term Loan needs of Retail and Wholesale traders. New trading units as well as units which have not completed two years can be financed maximum Upto Rs.10 lakhs. Borrower: Individual, Proprietorship, Limited Company (public/private), HUF, Borrowing concern should deal exclusively with our Bank only. 

UCO Cash

This is a Personal Loan scheme to meet the domestic needs like marriage, medical, traveling and other social obligations. Quantum of loan: 90% of the proposed expenditure or Rs. 2 Lakh whichever is lower. Additional amount may be sanctioned within the quantum ceiling to the existing eligible borrowers. Security: Loan will be on clean basis with two guarantors – Spouse and other than Spouse having equal income with that of the applicant.Service Charge: 1% (minimum Rs.750/-) Repayment: 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.

Page | 21




UCO Rent This is a loan against the security of future receivables i.e. assignment of future rent receivable, for productive purposes e.g. augmenting earnings like investing in securities, undertaking repairs & renovation of the property, etc.

Quantum of loan: Maximum 80% of the total rent receivable during the unexpired period of lease less tax deduction at source. Minimum Rs. 1 Lac



UCO Mortgages

Under the scheme credit facilities are considered upto 60% value of the property located in metro/urban/semi-urban centers to meet financial needs of government employees, employees of schools, colleges, PSU, reputed corporate business enterprises, professionals and businessmen with regular source of income and filing IT return against mortgage of their immovable prope rty with clear Title. Quantum of loan: in mortgage loan taken the minimum price load is 2 lakhs and maximum loan price is 50 lakhs. 

UCO Securities Under the scheme credit facilities are extended to borrowers against financial securities issued by Central Govt. /State Govt. /RBI in the form of National Savings Certificates, Kisan Vikas Patra, Govt. Securities and Relief Bonds. Loans are also sanctioned against Life Insurance Policies of Life Insurance Corporation of India and bonds/debentures bonds/debentures issued by specific Public Financial Institutions.

Quantum of loan: It will be determined on the basis of discounted face value/maturity value/surrender value of the transferable security at 13.50%

Page | 22




UCO Real Estate

Under the scheme advances are extended to the Promoters/Developers of real estate who should be well established and experienced in their line of activities at least for a period of three years. Cooperative Societies are not eligible to be borrowers under the Scheme. 

UCO Pensioner

Short Term loan is extended through this scheme to Pensioners who receive pension through our Branches. War widows drawing family Pension are also eligible. 10 times of monthly pension subject to maximum of Rs. 1, 00,000/(Maximum Rs. 1, 50,000/- where Family Pension is admissible) Repayment: No pre-payment charge is levied.



UCO Swabhiman- Reverse mortgage Loan Scheme for Senior Citizen

Bank introduces UCO Reverse Mortgage Loan Scheme for Senior Citizens, under Reverse Mortgage a Senior Citizen, owning a house/flat, can avail of a monthly stream of Income against the mortgage of his/her property while remaining the owner and occupying the house throughout his/her lifetime, without repayment or servicing of the loan. Objective: The key objective of the scheme is to enable Economically Weaker Sections (EWS) and Low Income Group (LIG) households to avail affordable housing loans for purchase of house/construction of new house. Rate of Interest: Interest @8.50% p.a. for first 5 years with a provision to reset after 5 years from the date of drawls of first installment for all loan under the scheme.

Page | 23




Education Load

The scheme extends a helping hand to meritorious students desirous of pursuing higher study either in India or abroad. Security:

Upto Rs.4.00 lakhs – No security when there is Above Rs. 4.00 lakhs & Upto

Rs. 7.50 lakhs: collateral security in the form of a suitable 3rd party guarantee. Above Rs. 7.50 lakhs: collateral securities of suitable value. Margin: Upto Rs. 4 Lac – Nil above Rs. 4 Lac Studies in India - 5% Studies Abroad - 15% Service Charge: There is no processing fee /no service charge



Uco Earnest Money Loan Scheme

Loan scheme for earnest money deposit for looking housing plot/flat offered by various urban/metropolitan development development Authorities and Housing Board. Loan Amount Maximum not to exceed 80% of the EMD.

NRI CORNER

UCO Bank Offers a Range of services for the NRIs. Following are the services that NRI, can choose from: 

Deposits Schemes



Foreign Currency Nonresident (FCNR-B) Deposits



Resident Foreign Currency (RFC) Deposits



Non Resident External (NRE) Deposit



Non Resident Ordinary(NRO) Deposit



Remittances to India



Loans to NRIs



Against Deposits



NRI Home Loans Page | 24


INTERNARIONAL BANKING

Following international banking services are offered; 

Product and Services 

NRI banking



Foreign Currency Loans



Finance/Services to Exporters



Finance/Services to Importers



Remittances



Forex and treasury Services



Resident Foreign Currency (Domestic) Deposits



Correspondent Banking Services



General Banking Services



Foreign Currency Loans



Finance/ Services to Exporters



Finance/ Services to importers



Forex and treasury Services 

Forex inter Bank Plashes / Borrowing



Sales and Purchase of currency on behalf of customer



Forward Cover Booking



Cross Currency Swaps



Interest Rate Swaps(IRS)



Forward Rate Arrangement (FRAs)



Forex Money Market Operation



Resident Foreign Currency (Domestic) A/Cs



Correspondent Banking Services

Page | 25


CHAPTER 5 ANALSIS AND INTERPRETATION

Now each parameter will be taken separately & discussed in detail. Capital adequacy:

Capital adequacy ratio is defined as

, Where Risk can either be weighted assets (a) or the respective national regulator's minimum total capital requirement. If using risk weighted assets,

More than or Equal to 8%

The percent threshold is set by the national banking regulator. Two types of capital are measured: tier one capital, which can absorb losses without a bank being required to cease trading, and tier two capital, which can absorb losses in the event of a winding-up and so provides a lesser degree of o f protection to depositors.

Page | 26


CAPITAL ADEQUACY RATIO

Mar‟08

Mar‟09

Mar‟10

Mar‟11

Mar‟12

11.12

22.56

10.09

11.93

13.21

INTERPRETATION:

Capital adequacy ratio (CAR) is a ratio of a bank's capital to its risk. National regulators track a bank's CAR to ensure that it can absorb a reasonable amount of loss and are complying with their statutory Capital requirements. The formula for Capital Adequacy Ratio is, Risk Weighted Assets. Capital adequacy ratio is the ratio which determines the capacity of the bank in terms of meeting the time liabilities and other o ther risks such as credit risk, operational risk, etc.

Page | 27


In the simplest formulation, a bank's capital is the "cushion" for potential losses, which protects the bank's depositors or other lenders. Here, incase of UCO Bank we can see That it‟s CAR showed a sudden dip in the year 2008 but after that it has shown a steady rise

for the next 2 years which is a good sign for its depositors and investors.

DEBT - EQUITY RATIO

Mar‟08

Mar‟09

Mar‟10

Mar‟11

Mar‟12

69.93

84.22

102.11

189.19

234.24

INTERPRETATION:

The debt-to-equity ratio (D/E) is a financial ratio indicating the relative proportion of shareholders' equity and debt used to finance a company's assets. Here, in case of UCO Bank we can see that the Debt-Equity ratio has increased over the years. This is because its equity capital showed no growth from the year 2006 to 2008 and it decreased by around Rs250 crore in 2009 and remained the same for the year 2010. But its debt capital has Page | 28


shown a steady increase over the past 5 years. From this we can infer that since UCO Bank is a public sector undertaking it depends much more on debt capital ruther than equity capital.

ADVANCES TO ASSETS

Mar‟08

Mar‟09

Mar‟10

Mar‟11

Mar‟12

0.60

0.63

0.61

0.62

0.60

INTERPRETATION: “Advances to Asset” is also a good indicator of a firm‟s Capital Adequacy. A high ratio of

Advances to Assets would mean that the chances of Non Performing Assets formation are also high, which is not a good scenario for a bank. This would mean the credibility of its assets would go down. In case of UCO Bank we can see that it is able to maintain a pretty steady ratio of its Advances to Assets which means the credibility of its assets is good.

Page | 29


GOVERNMENT SECURITIES TO TOTAL INVESTMENT

Mar‟08

Mar‟09

Mar‟10

Mar‟11

Mar‟12

0.81

0.83

0.83

0.86

0.86

INTERPRETATION:

The ratio of Government Securities to Total investments shows how safe are the company‟s

investments. Here, in case of UCO Bank we can see that its ratio of investments in Government Securities to Total Investments is very high and it has remained quite steady over the years with minimal fluctuations. The high ratio tells that UCO Banks investment policy is conservative and their investments are safe.

Page | 30


ASSET QUALITIES

INR (Cr.)

JUNE‟ 11 SEP‟ 11

DEC‟ 11

MAR‟ 12

JUNE‟12

Gross NPA

3360.5

3542.4

3696.0

4086.2

4624.0

Gross NPA ratio (%) Net NPA

3.50%

3.64%

3.49%

3.48%

3.88%

2039.6

2022.4

2131.1

2263.9

1293.0 1293.0

2.15%

2.11%

2.04%

1.96%

2.23%

48.6%

52.0%

51.2%

52.7%

Net NPA ratio (%) Provision Coverage Ratio (%)

The bank kept a tight leash on its operating expenses, which helped it reduce its cost to income ratio from 43.57% in Q1FY11 to 38.85% in Q1FY12, one of the lowest ratios in banking industry. The bank's asset quality, however, deteriorated, with about Rs 860 crore of fresh slippages recorded during the quarter. The bank's gross non‐performing asset ratio rose by 38 basis points to 3.88% while the net bad loan ratio increased by 8 basis points to 2.23%.

The bank restructured loans of about Rs 3,800 crore and its restructured loan portfolio stood at Rs 6,379 crore. Management has guided that restructured pipeline is not very large and from the SEB, only 2 accounts are in pipeline for restricting in the coming quarter. Also, slippages from restructured portfolio have not been very high. Bank loan recoveries have been improved.

Page | 31


CHAPTER 6 INTERNET / E- BANKING

INTRODUCTION

Internet banking system and method in which a personal computer is connected by a network services provider provider directly to a host computer system of a bank such that customer service request can be process Automatically without need for intervention by customer service representatives. The system is capable of distinguishing between those customer service requests which are capable of automated fulfillment and those requests which require handling by a customer service representative. The system is integrated with the host computer system of the bank so that the remote banking customer can access other automated services of the bank. The method of the invention includes the steps of inputting a customer banking request from among a menu of banking requests at a remote personnel computer; transmitting the banking requests to a host host computer over a network; receiving the request at the host computer; identifying the type of customer banking request received; automatic logging of the service request, comparing the received request to a stored table of request types, each of the request types having an attribute to indicate whether the request type is capable of being fulfilled by a customer service representative or by an automated system; and, depending upon the attribute, directing the request either to a queue for handling by a customer service representative or to a queue for processing by an automated system.

Page | 32


Safety for concrete applications is assured by client‟s authentication, verification, of data and data protection by encryption. Client identification is done using passwords or codes. The client chooses some of these and the bank assigns others. It is recommended to choose a password made up of various types of characters, Which can be a combination of numbers, lower case and capital letters, and special symbols Banks usually protect large volume transactions with additional security means, such as an encryption calculator, or a token, which generates nonrecurring random passwords, which a client types on confirming an order. The token itself is protected by certain security features. Work with it is only enabled after the client types a four-digit PIN code, whereby the user can change the PIN at any time. AUTOMATED TELLER MACHINES (ATM)

An Automated Teller Machine in a public plashes, connected to a data system and related equipment and activated by a bank customer to obtain cash withdrawal and other banking services. It called Automated Teller Machine cash machine: also called Money machine. An Automated Teller Machine (ATM) is an electronic computerized telecommunication that allows financial institution‟s customer to directly use a secure

method of communication to access their bank account, in order to make cash withdrawal and check their account balance without need for a human bank teller. Many ATMs also allows people to deposit of cash or cheque, transfer money their bank account, top up their mobile phones‟ pre-paid account or even buy the posed stamp.

On the most modern ATMs, the customer identifies him or herself b y inserting the plastic card with the magnetic stripe or the plastic smart card with a chip contain his or her account number the customer then verifies their identity to entering a passcode or password, often referred to as a PIN (Personal Identification Number) of four or more digit. Upon successful entry of the PIN the customer may perform a transaction. transaction. If the number is entered incorrectly several times in a row (usually three attempts per card insertion), some ATMs will attempt retain the card as a security some ATMs will attempt retain the card as a security precaution to prevent an unauthorized user from discovering the

Page | 33


PIN by guesswork. Captured cards are often destroyed if the ATM owner is not the ca rd issu is suin in g ba nk , as no n -customer -customer's 's identi identitie tiess cannot cannot be relia reliably bly confir confirmed. med.

TELE BANKING

Undertaking a host of Tele banking related services including financial transaction from the convince of the customer chosen the anywhere across the global and any time of date and night has now been made possible by introducing online Telebanking services. By dialing the given Telebanking number through a land line or a mobile from anywhere, the customer can access his account and by following the user-friendly menu, entire banking can be done through Interactive Voice Response (IVR) with sufficient numbers of hunting lines made available, customer call will hardly fail. The system is bilingual and his following facilities offered Automatic balance voice out for the default account. 

Balance inquiry and transaction inquiry in all.



Inquiry of all term deposit accounts.



Statement of account by Fax, e-mail or ordinary mail.



Cheque book request.



Stop payment which is on-line and instantaneous.



Transfer of funds with CBS which is automatic & instantaneous.



Utility Bill Payments.



Renewal of term deposit which is automatically au tomatically & instantaneous.



Voice out of last five transactions.

Page | 34


SMART CARD

A smart card usually contains an ended 8-bit microprocessor (its kind of computer chip). The microprocessor is under a contact pad on one side of the card. Think of the microprocessor as the usual magnetic strip present on a credit card or debit card. The microprocessor in the smart the card is there for security. The host computer and card reader actually „talk‟ to the microprocessor. The microprocessor Enforce access to the data

on the card. The chip on this card is capable to many kinds of the transaction. For example, a person could make the purchase from their credit account, debit account or from store account value that‟s reloadable. The enhanced memory and

processing capacity of the smart card is many times that of traditional magnetic-strip card and can accommodate several different applications on a single. It can also hold the identification information, which means no more shuffling through cards in the wallet to find the ringtone the smart card will be the only one needed. Smart card can also be used with a smart card reader attachment to a personal computer to authenticate a user. Smart cards are much more popular in Europe than the U.S. in Europe the health insurance and banking industries use smart card extensively. Every German citizen in their has a smart card for the heath insurance. Even though smart card has been around their modern form for at least a decade, they the y are just starting to taken off in the U.S. DEBIT CARD:

Debit card are also known as check card. Debit card look like a credit card or ATM card, but operate like cash or a personal check. Debit card is different from credit cards. While a credit card is a way to “pay latter,” a debit card is a way to “pay now.” When you a

debit card, your money is quickly deducted from you‟re checking or saving accounts. Debit cards are accepted many location, including grocery store, retail store, gas online station, and restaurant. You can use your card anywhere merchant display yours card‟s brand name

or logo. They offer an alternative to carrying a check book or cash.

Page | 35


E-CHEQUE: 

An e-cheque is the electronic versio9n of representation represen tation of paper



Cheque the information and legal Framework on the E-cheque is the same as that the paper cheque.



It can now be used in peace of paper cheque to do any and all remote transaction.



An e-cheque work the same way a cheque does, the cheque writer “Writes” the echeque using one of the cheque writer devices and gives the e-cheque to the payee electronically. The payee “deposits” the electronic cheque received the credit, and the payee‟s bank “clear” the e-cheque to the paying bank validates the e-cheque and then “charges” the check writer‟s account for check.

OTHER FORMS OF ELECTRONIC BANKING: 

Direct Deposit



Electronic Bill Payment



Electronic Check Conversion

TELEPHONE BANKING

Telephone banking and the first banking services using classic telephone lines for communication date back to the turn of sixties and seventies of the last century. These services grew vary rapidly and at the close of the 20th century mobile phones also started to be used in banking with the development of information and communication technologies. In this period bank quickly responded to the dawning of a new era in using mobile telephone world- wide and began communication with their clients by SMS massages, with GSM banking later becoming a natural component of the electronic banking. Each financial institution offers in this under the different name, but the essential product remain same. A mobile phone can be used to communication with also call telephone banker or an Page | 36


autometed telephone system, just as well as a fixed line. However, opportunities for mobile phone. Mobile phone use represents a direct communication channel that spread on a massive scale through which clients have immediate access to typing a bank operation, ordering services or working with account. Electronic banking using a telephone connection can be divided into phone banking (ATS, client advisor) and mobile banking (SMS banking, GSM sim, toolkit and WAP).

PHONE BANKING

Phone banking is the provision of banking services using a classic telephone line. A bank client can obtain the necessary information on dialing a telephone number specified in advance. Before the requested banking services information is provided the client‟s identity is determined using contractually agreed terms. Using this banking service enable bank clients to obtain information concerning active passive banking product, but a client can also actively use the bank payment system and request, for example, a payment order or a collection order, open or cancel a term deposit or current account. In this case a fax connected to the telephone services as an output communication channel. The client advisor or so-called telephone- banker is a bank employee capable of providing any information about product and services and following, verification that he is speaking with an authorized person, can also perform any passive or active operation. He can provide advice to the client and offered further banking products. One advantage of these services is that it requires no additional technical equipment apart from a telephone. As a rule bank telephone call centers operators work 24 hours a day nonstop and it is thus possible to use their service from any pla shes at any time. SMS BANKING SMS banking uses short text messages sent through the client‟s mobile phone.

SMS text messages can be used for both passive and active operations similarly as with classic telephone banking. A client can automatically receive information about his account Page | 37


balance: an SMS is sent to the client immediately after a certain operation is performed, or on request: a client sends the bank a correctly formatted message which processes it and answers the client‟s request by SMS.

Information sent on request mostly concerns current interest rates or currency exchange rates. Providing these is simple for the bank because this is publicly accessible information that needs no protection. A client however can request information about the balance in his account, which is not public information and must be protected when it is provided. Passwords are used for this purpose or technologies based on the principle of an electronic key. A client however is required to know the code of every transaction including constant and variable symbols. The whole message containing data separated by (#) symbols sometimes has up to fifty characters. Users can easily make mistakes. This is

frequently a limiting factor for clients, reducing the comfort factor in this service.

Equifax

PERSONAL COMPUTERS

Bank site

Along with significant growth in the usage of mobile phones in banking practice, personal computers have also come to the fore, which to an even

greater

extent

facilitate

and

modernize banking service provision. In

an

information

society

this

communication instrument plays role and is indispensable for the Present day banking sphere. The area of electronic banking

realized

through

personal

computers can be divided into home banking, internet banking and mail banking. (Customer link primer) Page | 38


HOME BANKING

Home banking is a service that enables a bank client to handle his accounts from a computer from a plashes selected in advance, at home or in the office. The main features of home banking systems are the high level of security, comfort, implicitly of use, openness of the system, wide communication possibilities, networking, definition of users and their rights, automated data transmission and the option to define a combined signature specimen. A home banking system usually consists of two parts: a bank computer program and a program in the Client‟s computer. The bank program works as a communication

server. It receives calls from clients, verifies their identity, receives data from them, authenticates digital signatures, generates digital receipts and sends data to clients. A home banking computer system is a multi user application, meaning that several of the client‟s

employees can work with it, in particular: a) Administrator – can define new employees, change rights, b) Sender – ensures communication with the bank and transmission of prepared data, c) Accountant – can type payment orders and orders for collection, d) Viewer – can browse through statements and announcements received. This system is open and can be expanded in the future without great cost.

MAIL BANKING

Mail banking is another electronic banking service that makes it possible to communicate with the bank by electronic mail or e-mail. The most frequently used Service is sending account statements at agreed periodicity to the client‟s mailbox. E-mail is not used for more

complex operations.

Page | 39


FIANANCIAL DATA ON THE INTERNET

With the help of the internet many banks and Companies in huge amount of financial data published on the internet. Among 330 largest companies from 22 countries, 62% had some form of financial data on their web site.

NATURE OF FINAICAL DATA ON INTERNET

Quarterly and annual and financial report Financial History Section Filing Stock Quotes Press Release Information Request Form Others Shareholders information Profit and loss

Page | 40


CHAPTER 7 FACTORS OF ADOPTING E-BANKING Accessibility

Accessibility defines as the ability of users to access information and services from the web is dependent on many factors. These include the content format the user's hardware, software and settings internet connections the environmental conditions and the user's abilities and disabilities. The term "web accessibility" generally relates to the implementation of website content in such a way as to maximize the ability of users with disabilities to access it. For example, providing a tex t equivalent for image content of a web page, allows users with some visual disabilities access to the information via a screen reader. The techniques and approaches that create more accessible web pages for people with disabilities also address many other access issues such as download speed and discoverability. Revealed reliable/prompt responses, attentiveness, and ease of use had considerable impacts on both customers perceived overall service quality and satisfaction. It also indicated that there is a significant positive relationship between overall service quality and satisfaction. Yang and Jun redefined the traditional service quality dimensions in the context of online services, and suggested an instrument consisting of seven online service dimensions. Joseph et al considered banking service quality with respect to technology use, such as ATMs, telephone, and the internet and identified six dimensions. They were convenience/accuracy feedback/complaint management efficiency, queue management accessibility and customization. Therefore, it is hypothesized that accessibility has positive effect on customer satisfaction.

Page | 41


Convenience

E-banking provides higher degree of convenience that enables customers to access internet bank at all times and plashes. Apart from that, the ease of access of computers is perceived as a measure of relative advantage. Johnston revealed that there are some service quality determinants that are predominantly satisfiers and others that are predominantly dissatisfies with the main sources of satisfaction being attentiveness, responsiveness, care And friendliness. The main sources of dissatisfaction are integrity, reliability, responsiveness, availability and functionality. According to Ainscough and Luckett, the provision of customer interactivity is an important criterion that attracts users in the delivery of e-banking. Gerrard and Cunningham also identify other factors of paramount importance in ensuring the success of e-banking, i.e. the ability of an innovation to meet users' needs using different feature availability on the web site. For instance, the provision of interactive loan calculators, exchange rate converters, and mortgage calculators on the web sites draw the attention of both users and non-users into the bank's web site. A UK studies uncovered five key service quality attributes, such as security related issues, convenience, speed and timeliness of the service, and product variety/diverse features. Therefore, it is hypothesized that convenience has positive effect on customer satisfaction.

Privacy

Customers have doubts about the trust ability of the e-bank's privacy policies. Trust has striking influence on user's willingness to engage in online exchanges of money and personal sensitive information. Privacy is an important dimension that may affect users' intention to adopt e-based transaction systems. Encryption technology is the most common feature at all bank sites to secure information privacy, supplemented by a combination of different unique identifiers, for instance, a password, mother's maiden name, a memorable date, or a few minutes of inactivity automatically logs users o ff the account. Besides, the Secure Socket Layer, a widely-used protocol use for online credit card payment, is designed to provide a private and reliable channel between two communicating

Page | 42


entities the use of Java Applet that runs within the user's browser the use of a Personal Identification Number, as well as an integrated digital signature and digital certificate associated with a smart card system. Thus, a combination of smart card and biometric recognition using fingerprints offers a more secure and easier access control for computers than the password method. Zeithaml et al developed E-SERVQUAL for measuring eservice quality, identifying dimensions access ease of navigation, efficiency, flexibility, reliability, personalization, security/privacy, responsiveness. Assurance/trust site aesthetics And price knowledge. Hence, it is hypothesized that privacy has a positive effect on customer satisfaction.

Security

Assurance about security relates to the extent to which the web site guarantees the safety of customers` financial and personal information, an area which has witnessed a proliferation of research interest. Security can be assured

by

providing

a

privacy

statement and information about the security of the shopping mechanisms and by displaying the logos of trusted third parties. For example, displaying trusted third party logo guarantees a certain level of security protection and has been shown to significantly influence how consumers regard the trustworthiness of e vendors. Internet banking was made possible by the creation of Web browsers.

Page | 43


In this mode of online banking, consumers do not have to purchase additional software, store any data on their computer, backup any data, or wait for software upgrades or new versions. All transactions occur on a secure server of a bank via the internet. The bank has all of the required data and software to execute the transactions. Customers go the bank's Web site, log in, and then take advantage of the bank's internet services. Typical bank services are account access and review, transfers of funds between accounts, bill payment, and then a widening variety of new services and products. Security plays an important role in internet banking and so there are several protocols for internet security of encrypted data packets. Customers are not aware of the encryption, however, only certain versions of popular internet browsers are acceptable to some banks due to their security limitations. Therefore, it is hypothesized that privacy has a positive effect on customer satisfaction.

Design

The goal of aesthetic design is to make a web site visually attractive and enjoyable. Proctor et al discussed content preparation in a broad sense and identified its four aspects: 

Knowledge elicitation,



Information organization and structure,



Information retrieval, and



Information presentation.

During design, and prior to implementation, it is strongly recommended that users of different ages, and with a range of capabilities and limitations be engaged to trial the new service and provide feedback. Financial institutions should test accessibility of their customer websites with both automated tools and user accessibility trials. Therefore, it is hypothesized that design has a positive effect on customer satisfaction.

Page | 44


Content

Jayewardene and Foley and Pikkarainen et al claim that content on online banking on the web site is one of the factors influencing online-banking acceptance. On the other hand, quality designs, graphics or colors and the propensity to portray good image of the bank would enhance efficient use of navigation. In the context of internet banking, there is a growing body of research that has looked at influences on customer satisfaction. Jayewardene and Foley illustrated that such web site features as speed, web site content and design, navigation, interactivity and security all influence user satisfaction whereas Broderick and Vachirapornpuk found that the level and nature of customer participation had the greatest impact on the quality of the service experience and issues such as customers' zone of tolerance, the degree of role understanding by customers and emotional response potentially determined, expected and perceived service quality.

Speed

Hoffman and Novak find that there is a significant correlation between download speed and user Satisfaction. Speed of download depends on the nature of the site downloaded content, the computing hardware and method of connection used to download information. Most sites demonstration is small snapshots, and some users have to download the program in order to view the demonstration. Most people perceive downloading may import unwanted viruses, and consume hard disk space. Very often, slow response time after any e-interaction leads to a delay of service delivery and makes consumers unsure about whether or not the transaction is completed. Johnston illustrates that certain actions, such as increasing the speed of processing information and customers, are likely to have an important effect in terms of pleasing customers; however other activities, such as improving the reliability of equipment, will lessen dissatisfaction rather than delight customers and suggests that it is more important to ensure that the dissatisfies are dealt with before the satisfiers. Thus, it is hypothesized that speed has positive effect on customer satisfaction.

Page | 45


Customer Satisfaction and Outcomes of Satisfaction

In this section the research spotlights on the relevant literature on the concept of satisfaction, its consequences.

Satisfaction

Satisfaction has been considered as one of the most important theoretical as well as practical issues for most marketers and customer researchers. Oliver firstly defined it in the consumption context as “the summary psychological state resulting when the emotion

surrounding disconfirmed expectations is coupled with the customer's prior feelings about the consumption experience”. In other words, we may say that satisfaction reflects a post-

purchase evaluation of product quality given pre-purchase expectation. On one hand, within literature on services marketing, satisfaction has traditionally been defined as a cognitive-based phenomenon. Cognition has been studied mainly in terms of the expectations/disconfirmation paradigm; also known as the confirmation/disconfirmation paradigm, which states that expectations originate from the customer's beliefs about the level of performance that a product/service would provide. Many marketing scholars indicate that customer satisfaction is related to the size and direction of disconfirmation, which is defined as the difference between the post-purchase and post-usage evaluation of the performance of the product/service and the expectations held prior to the purchase. On the other hand, other studies have recognized that the affect experienced during the acquisition and consumption of the product or service can also have a significant influence on satisfaction judgments points out that a consumer affective response

Loyalty Oliver defines loyalty as “a deeply held commitment to re -buy or repatronize a

preferred product/service consistently in the future, thereby causing repetitive same brand or same brand-set purchasing, despite situational influences and marketing efforts having the potential to cause switching behavior”. Broadly, loyalty development has been an

objective traditionally aimed at by managers since it enables higher future purchase

Page | 46


intention. In particular, loyalty may be defined as a customer's intention or predisposition to purchase from the same organization

WOM (Word- Of- Mouth)

Word-of-mouth (WOM) is an informal mode of communication between private parties concerning the evaluation of goods and services. Marketing literature has consistently shown its powerful role in influencing consumers‟ attitudes. For example,

WOM is found to have more influence on product judgments than less vivid printed information. In general, WOM may be defined as an informal type of communication between private parties concerning the evaluation of goods and services and it has been considered to be one of the most powerful forces in the market plashes. To be precise, the importance of WOM resides in the fact that consumer choice is usually influenced by WOM, especially when the purchase in important. This is explained due to the fact that consumers prefer to rely on informal and personal communication sources in making purchase decisions instead of on formal and organizational sources such as advertising campaigns. The specific references only partially covered the e-banking and outcomes of satisfaction. Therefore, the present research attempts to fill a gap in the subject of ebanking in UCO BANK banks.

The study addressed some of the shortcomings in the literature such as looking at the e-banking functionality factors from the point of view of accessibility, convenience, security, privacy, content, design, speed, fees and charges, to investigating the influences of e-banking on outcomes of satisfaction in the UCO BANK. It was established that no previous research had been conducted at UCO BANK, which investigated the relationship between the e-banking and the outcomes of satisfaction namely loyalty and positive WOM in the UCO BANK.

Page | 47


The e-banking functionality factors has a positive significant influence on customer satisfaction

Empirically, the model assumed that e-banking functionality factors positively influence customer satisfaction in the UCO BANK. In addition, it predicted that the influence of such factors on customer satisfaction would differ according to the personal variable that is gender, age, marital status, educational level, computer literacy, and internet accessibility. The results of the multiple regression analysis signal that there is variation in the effect of e-banking factors on customer satisfaction and empirical evidence in this research suggests that adoption of e- banking factors have a significant degree of influence on customer satisfaction. This empirical evidence has provided significant support for the electronic banking literature, which substantively advocates that e-banking factors have an influence on customer satisfaction. The results empirically substantiate that using of e-banking services play a fundamental role in the customer satisfaction among UCO BANK. Accessibility has a positive significant influence on customer satisfaction provide significant support for the accessibility literature which advocates that accessibility have an influence upon UCO BANK. As a consequence, we are able to substantiate that accessibility has a significant influence on customer satisfaction. These findings are also consistent with other research findings.

Convenience has a positive significant influence on customer satisfaction

Convenience is also considered to be one of the influential factors on the satisfaction of UCO BANK. Prior research has empirically found positive relationship between convenience and satisfaction as critical factors on the use of e-banking. These results are not surprising as when UCO BANK consider the convenience as a competitive tool; this might impact positively on the adapting and generalize the using of e-banking in UCO BANK. As a result, we are able to confirm that convenience have a significant influence on customer satisfaction. These findings are also consistent with other research findings. For example, found that e-banking provides higher degree of convenience that enables customers to access internet bank at all times and plashes. Page | 48


Privacy has a positive significant influence on customer satisfaction

That a pre-requisite for survival and growth is that both the banks and its customers have an interest in their joint relationship – leading to a win-win effect. Factors such as confidential information is delivered safely from banks to customers; trust the bank‟s

privacy protection to the users should help to build effective relationships and increase the customer satisfaction in the long run. Banks customers have doubts about the trust ability of the e-bank's privacy policies. Trust has striking influence on user's willingness to engage in online exchanges of money and personal sensitive information. Privacy is important dimension that may affect users' intention to adopt e-based transaction systems. Privacy consider as one of the most influential in fluential factor on customer satisfaction.

Security has a positive significant influence on customer satisfaction

Suggests that security is an influential factor on customer satisfaction in UCO BANK. The results therefore, substantiate that security has a positive bearing on customer satisfaction. These findings are also consistent with other research findings. For example, found that e-banking provides higher degree of security that enables customers to trust internet banking at all times and plashes.

Design has a positive significant influence on customer satisfaction

Design is also considered to be one of the influential factors on the satisfaction of UCO BANK customers. Prior research has empirically found positive relationship between banks web design and customer satisfaction as critical factors on the use of e-banking. These results indicate that the web design is an important element to facilitate the using of e-banking which is reflects on the customer satisfaction. Other researches have empirically found positive relationship between bank web site design and customer satisfaction as critical factors on the use of e-banking

Page | 49


Content has a positive significant influence on customer satisfaction

It appears that content of bank site has a positive significant influence on the acceptance of adopting this service by UCO BANK customers. Factors such as information credibility Clear and simple help menus allow customers to perform e-banking transaction easily should help users to build effective relationships and increase the customer satisfaction in the long run. Content is important dimension that may affect users' intention to adopt e-banking systems. Other researches have empirically found positive relationship between bank web content and customer satisfaction as critical factors on the use of ebanking.

Speed has a positive significant influence on customer satisfaction

Provide support for speed having a statistically significant positive effect on customer satisfaction. This finding is similar to the work of Hoffman and Novak that identified speed as a major factor influencing customer satisfaction. Other researches have empirically found positive relationship between e-banking speed and customer satisfaction as critical factors on the use of this service.

Fees have a positive significant influence on customer satisfaction

Fees are also considered to be one of the influential factors on the customer satisfaction of UCO BANK customers. Prior research has empirically found positive relationship between e-banking fees and customer satisfaction as critical factors on the use of e banking. These results indicate that the fees determine by UCO BANK are an important element to facilitate the using of E-banking which is reflects on the customer satisfaction. Other researches have empirically found positive relationship between fees rate and customer satisfaction as critical factors on the use of e- banking In summary, it can be seen that all e-banking functionality factors, which accessibility, convenience, security, privacy, content, design, speed, fees and charges, have proven to positively customer satisfaction. It appears that customer satisfaction has a positive significant influence on customer loyalty of adopting e-banking service by UCO BANK.

Page | 50


This result generalized on the other research outcomes. Loyalty and WOM were explained at a similar level in the proposed model. Generally speaking, we can conclude that satisfaction is a key mediating factor in the loyalty and positive WOM in the e-banking services in UCO BANK.

PERFORMANCE GUARANTEE

The Bank will require the selected bidder to provide a Performance Bank Guarantee, within 15 days from the date of acceptance of the order or signing of the contract whichever is earlier, for a value equivalent to 10% of the total cost of ownership (TCO), quoted by the selected bidder. The Performance Guarantee should be valid for a period of 24 months. The Performance Guarantee shall contain a claim period of three months from the last date of validity. The selected bidder shall be responsible for extending the validity date and claim period of the Performance Guarantee as and when it is due on account of non-completion of the project. In case the selected bidder fails to submit performance guarantee within the time stipulated, the bank at is discretion may cancel the order plashed on the selected bidder without giving any notice. Bank shall invoke the performance guarantee in case the selected bidder fails to discharge their contractual obligations during the period or Bank incurs any loss due to selected bidder‟s negligence in carrying out the project implementation as per the agreed terms & conditions.

BENEFITS OF E-BANKING E-banking helps us in overcoming the drawbacks of manual system, as computers are capable of storing, analyzing, consolidating, searching and presenting the data as per the user requirements with lot of speed and accuracy. Number of benefits accrues to the various parties with the development of e-banking.

Page | 51


To the Banks E-banking services help in increasing profits. E-banking provides competitive advantage with boundary less network to the banks. Due to e-banking banks carry on business less with paper money and more with plastic pla stic money; have online transfer of funds, thus economizing on the cost of storage of huge stocks of currency notes and coins. By connecting with ATM and terminals, risk of cash overdraw can be eliminated in case of ATM credit and debit cards. E-banking websites can act as a revenue earner through its promotional activities. Customers can avail e-banking facility from anywhere, therefore saving the need not to invest more on building infrastructures. Websites that offer financial convergence for the customer will create a more involved banking customer who will more frequently utilize the banking websites.

To the Customers E-banking provides 24 hours service to the customers for cash withdrawal from any branch. Quick and steady access to information. Online purchase of goods and services and payments can be made for various purposes. The customer can view his account balance, can get a statement of his account, can apply for loans, check the progress of his investments, review interest rates and collect other important information.

To the Merchants, Traders, etc. It ensures assured quick payment and settlement to the various transactions made by the traders. It provides a variety of services to the businessmen on par with the international standards with low transaction cost. Cost and risk problems involved in handling cash which are very ver y high in business transactions are avoided.

Page | 52


BALANCE SHEET OF UCO BANK

Mar’12

--------------- in Rs. Cr. --------------Mar’11 Mar’10 Mar’09

Mar’08

12mths

12mths

12mths

12mths

12mths

2487.71 664.71 0.00

2450.52 627.52 0.00

1699.36 549.36 0.00

1249.36 549.36 0.00

799.36 799.36 0.00

Preference Share Capital Reserves Revaluation Reserves Net Worth Deposits Borrowing Total Debt Other Liabilities & Provisions

1823.00 5631.60 494.12 8613.43 154003.49 12901.42 166904.91 4980.05

1823.00 4517.93 450.78 7419.23 145277.60 5474.77 150752.37 5226.86

1150.00 3062.13 449.06 5210.55 122415.55 6263.84 128679.39 9429.56

700.00 2245.71 461.98 3957.05 100122.57 2062.42 102283.99 5423.14

0.00 1685.17 441.79 2926.32 79908.94 1715.95 81624.89 5243.73

Total Liabilities

180498.39 Mar’12 12mths

163398.46 Mar’11 12mths

137319.50 Mar’10 12mths

111664.18 Mar’09 12mths

89794.94 Mar’08 12mths

7811.53

10404.03

7242.73

6588.85

5702.72

Balance with Bank, Money at call

5792.16

6576.41

861.60

4264.59

2400.80

Advances Investments Gross Block Accumulated Dep. Net Block Capital work in progress Other Assets Total Assets Contingent Liabilities Bills for Collection Book Value (Rs.)

115540.01 45771.50 1670.24 868.69 801.55 0.00 4781.66 180498.41 41937.29 10128.61 94.72

99070.81 42927.28 1514.50 776.83 737.67 1.20 3861.05 163398.45 45222.36 8770.25 82.00

82504.53 43521.43 1401.25 691.40 709.85 0.18 2479.15 137319.47 31810.93 8321.86 65.74

68803.86 29384.78 1339.17 620.59 718.58 0.28 1903.22 111664.16 45276.80 6031.97 50.88

55081.89 24249.63 1211.73 527.39 684.34 0.00 1675.55 89794.93 24507.59 5894.71 31.08

Capital & Liabilities : Total Share Capital Equity Share Capital Share Application Money

Assets : Cash& Balance with RBI

Page | 53


PROFIT & LOSS ACCOUNT OF UCO BANK --------------- in Rs. Cr. --------------Mar’12

Mar’11

Mar’10

Mar’09

Mar’08

12mths

12mths

12mths

12mths

12mths

Interest Earned

14632.37

11370.80

9526.32

8121.38

6508.56

Other Income Total Income

965.56 15,597.93

925.41 12,296.21

965.93 10,492.25

1,019.89 1,019.89 9,141.27

772.13 7,280.69

Expenditure: Interest Expanded

10,730.27

7,525.89

7,202.20

6,476.68 6,476.68

5,020.81

Employee Cost

1,383.06

1,480.12

1,057.62

997.54

894.54

Selling & Admini. Expenses Depreciation

1,092.60 78.12

1,466.58 80.55

612.22 74.19

489.48 83.61

561.89 69.87

Miscellaneous Expenses Preoperative Exp. Capitalised

1,205.19 0.00

836.54 0.00

533.85 0.00

536.25 0.00

321.41 0.00

Operating Expenses

2,815.67

3,256.02

1,938.23

1,731.40

1,675.99

Provisions & contingencies

943.30

607.77

339.65

375.48

171.72

Total Expenses

14,489.24

11,389.68

9,480.08

8,583.56

6,868.52

Mar’12

Mar’11

Mar’10

Mar’09

Mar’08

12mths

12mths

12mths

12mths

12mths

Net profit for the year:

1,108.67

906.54

1,012.19

557.72

412.16

Extraordinary Items Profit Brought Forward

0.00 1,685.17

0.00 1,348.98

0.00 804.80

0.00 600.23

0.00 405.27

Total

2,793.84

2,255.52

1,816.99

1,157.95

817.43

Preferences Dividend

0.00

0.00

0.00

0.00

0.00

Equity Dividend

342.19

290.52

127.03

60.22

79.94

Corporate dividend Tax Per Share Data(annualized)

55.51

48.25

21.59

10.23

13.59

Earning Per Share(Rs.) Equity Dividend (%)

16.68 30.00

14.45 30.00

18.42 15.00

10.15 10.00

5.16 10.00

Book Value(Rs.)

94.72

82.00

65.74

50.88

31.08

Appropriations Transfer to Statutory Reserves

285.03

231.58

318.26

282.69

123.67

Transfer to Other Reserves Proposed dividend

0.00 391.70

0.00 338.77

1.13 148.62

0.00 70.45

-0.01 93.53

Balance C/F to Balance sheet

2111.11

1685.17

1348.98

804.80

600.23

Total

2793.84

1685.17

1816.99

1157.94

817.42

Income:

Page | 54


CASH FLOW OF UCO BANK

--------------- In Rs. Cr. --------------Mar’12

Mar’11

Mar’10

Mar’09

Mar’08

12mths 1150.26

12mths 944.56

12mths 1049.19

12mths 570.35

12mths 470.02

Net Cash From Operating Activity

-3018.57

7830.08

-4061.20

2500.57

2038.00

Net Cash (used in)/ from investing activity

-66.84

-51.89

-44.40

-59.65

-74.23

Net cash (used in)/ from financing activity

-412.99

1083.89

1406.69

235.21

-39.99

Net (decrease)/ increase in cash and equivalent

-3376.75

8876.10

-2749.11

2749.92

1888.99

Opening Cash & Cash Equivalent

16980.43

8104.33

10853.45

8103.52

6214.53

Closing Cash & Cash Equivalent

13603.68

16980.43

8104.33

10853.45

8103.52

Net Profit Before Tax

Page | 55


CHAPTER 8 SURVEY REPORT DATA ANALYSIS

To know customer view about union bank of India, I have done survey of 20 peoples and ask them certain set of question:

1. When survey respondent were asked, do you have an account in this bank?

60 50

60%

40 30

40%

20 10 0 Y es

No

INTERPRETATION

This bar diagram shows how many people are having bank account. 60% of the people are having bank account where as 40% of the people don‟t have a bank account. Page | 56


2. When survey respondent were asked, which type of account do you have?

25%

saving A/c current A/c recurrent A/c

10% 65%

INTERPRETATION:

This pie diagram show which type of bank account people are having. 65% people are having saving account. 10% people are having current account. 25% people are having recurring account.

Page | 57


3. When survey respondent were asked, what is the purpose of opening an account in this bank?

35 30 25 20 35% 15 25% 10 10% 5 0 For Securities

For interest

Good Relation

INTERPRETATION:

This bar diagram show that what is purpose to open an account. 25% people open an account for security. 35% people open an account for interest. 10% people open an account for good relation.

Page | 58


4. When survey respondent were asked, how did you come to know about the facilities provided by this bank?

60 50 40 30 55% 20 25%

10

15%

5% 0 News Paper

Advertisement

Agent

Friend

INTERPRETATION:

This bar diagram shows how many people know about bank account. 5% people are aware about news paper. 25% peoples are aware about advertisement. 15% peoples are aware about agent. 55% peoples are aware about friend.

Page | 59


5. When survey respondent were asked, which types of features you like?

35% 40%

E-banking New Scheme ATM

25%

INTERPRETATION:

This bar diagram shows how many people like the features of this bank. 20% peoples like e-banking. 55% peoples like new schemes. 25% peoples like ATM.

Page | 60


6. When survey respondent were asked, do you think that the private sector is better than public sector?

INTERPRETATION:

This bar diagram shows how many people says which is better. 50% people say that private sector is better. 50% people say that public sector is better.

Page | 61


7. Which sector do you have to prefer?

80 70 60 50

YES 80%

40

NO

30 20 20%

10 0 YES

NO

INTERPRETATION:

This bar diagram shows how many people says which is preferable. 80% people say that Public Publ ic Sector is better. 20% people say that Private Sector is better.

Page | 62


8. When survey respondent were asked, do you think the Uco Bank is a safe for your money?

INTERPRETATION:

This bar diagram shows the people are preferring p referring sector. 80 % of people say sa y it is safe for money. 20 % of people say sa y it is not safe for money.

Page | 63


9. When survey respondent were asked, you’re level of satisfaction with Uco Bank?

60%

50%

40%

30% 48%

48%

20%

10%

20%

0% very satsfied

satisfied

dis satisfied

INTERPRETATION:

This bar diagram shows the people are satisfied with this sector: 48 % of people are Very Satisfied 48 % of people are Normal Satisfied 20 % of people are dissatisfied

Page | 64


10. When survey respondent were asked, If you have an option against Uco Bank you will go for —

35% 30% 25% 20% 35%

35%

15% 20% 10%

15%

5% 0% SBI

AXIS

I CI CI

Category 4

INTERPRETATION

This bar diagram shows the how many people are go for other bank. 15 % of people go for State Bank of India (SBI) 20 % of people go for AXIS Bank 35 % of people go for ICICI Bank 35% of people go for Other Bank

Page | 65


CHAPTER 9 CONCLUSION In Uco Bank with the help of e-banking that the bank give the services to the public account holders to do the transaction on the basis of mobile phones, personnel computer, etc. The Uco Bank also provides the deposits scheme and new types of account facilities to the customer. The Uco Bank are having branch in foreign country for the out siders persons they are also maintaining the Cash Flows, Balance Sheet, and the NPA by always lending and investing or creating quality assets which earn return by way of interest and profits. But the Uco Bank is not having that much branch compare to other bank like SBI, Canara Bank, Axis Bank, etc. Apart from that Uco Bank having the good relation and communication with the customer. Therefore the customers are go and open account in Uco Bank. E-banking helps in improving the relationship between bankers and customers. The bankers expressed confidence that such bonds would bring improvement in the overall performance of banks. About different promotional measures adopted by banks to promote e-banking, the study discloses that banks mostly resort to the use of print media followed by internet, SMS on mobile, outdoor advertisements and television. Majority of the bankers believe that banks are wanting in providing sufficient guidance to customers for using e-banking services.

Page | 66


BIBLOGRAPHY



www.wikipedia.org/wiki/ucobank www.wikipedia.org/wiki/uco bank



www.indianinfoline.com



www.allbanksolution.com



www.financialexpress.com/ucobank



www.moneycontrol.com/Ucobank/f www.moneycontrol.com/Ucobank/financialstatement inancialstatement



www.thehindu.com/ucobank



www.indiaeducation.net



www.rbi.org.co.in

NEWS PAPER TIMES OF ECONOMIC. TIMES OF INDIA.

Page | 67


FORMATE OF CUTOMER SURVEY REPORT SURVEY ON PROJECT OF CUSTOMER SATISFACTION ON UCO BANK NAME:1.

2.

Do you have an account in this bank? a.

Yes.

b.

No.

Which type of account do you have? a. Saving Account. b. Current Account. c. Recurring account.

3.

4.

What is the purpose of opening an account in this bank? a.

For Securities

b.

For Interest

c.

Good Relation

How do you come to know about the facilities provided by the bank? a. News Paper b. Advertisement c. Agent d. Friend

5. Which type of feature you like? a.

E-banking

b.

New Schemes

c.

ATM

Page | 68


6.

7.

Do you think that the Private Sector is better than the Public Sector Bank? a.

Yes.

b.

No.

Which sector do you have to prefer? a. Public Sector b. Private Sector

8.

9.

Do you think the Uco Bank Ba nk is a safe for your money? mone y? a.

Yes.

b.

No.

Your level of satisfaction with Uco Bank? a.

Very Satisfied

b.

Normal Satisfied

c.

Dissatisfied

10. If you will have an option against Uco Bank you will go fora.

SBI

b.

AXIS

c.

ICICI

d.

OTHER

COMMENT:-_________________________________________________________ PROJECT GUIDE:

SURVEY CONDUCTED BY:

Mr. PALLAV DAS

Page | 69


T.Y.B.COM (B & I)

PROJECT REPORT

ON

CUSTOMER SATISFACTION WITH E-BANKING IN UCO BANK SUBMITTED BY RAMANAND SHARMA SEAT NO – 21 SEMESTER V T.Y.B.B.I

UNDRE THE GUIDENCE OF

Mr. PALLAV DAS

Submitted to University of Mumbai in partial for the fulfillment for the requirements of the award of degree

BACHELOR OF COMMERCE (BANKING & INSURANCE)

PATUCK GALA COLLEGE OF COMMERCE & MANAGEMENT SANTACRUZ (E), MUMBAI – 400055 Page | 70


2012-2013 CERTIFICATE

This is the certify that the project entitled ― CUSTOMER SATISFACTION WITH E-BANKING IN UCO BANK‖ is a true and satisfactory work done by RAMANAND SHARMA, T.Y.B.B.I, Roll No. 21 . The report is submitted to

university of Mumbai in partial fulfillment for the requirement of the award of the degree of “Bachelor of Commerce (Banking & Insurance)” for the academic year 2012-

2013.

---------------------------------------------

--------------------------------

Signature of Project Guide Examiner

Signature of External

----------------------------------------Signature of Coordinator

---------------------------------

Signature of Principal

Page | 71


College Seal

DECLARATION

I, Mr. Ramanand Sharma, student of Patuck-Gala College of Commerce & Management, T.Y.B.B.I (Sem V) hereby declares that I have completed the project on ―CUSTOMER SATISFACTION WITH -BANKING IN UCO BANK‖ in the

academic year 2012-2013. The subject matter contained in this project is a research work and most of the work carried out is original and was gone under u nder the guidance Mr. Pallav Das. The information submitted is true and original to the best of my knowledge.

--------------------------------(Ramanand Sharma)

Page | 72


(Roll No. 21)

Page | 73


ACKNOWLEDGEMENT It is my nearest and sincere desire and ambition to acquire profound knowledge in the study of banking and insurance. I have had considerable help to advice at very outset of his project. It is my pleasure to acknowledge the help and guidance from those personnel and to thank them individually. First of all, I express my sincere thank to Dr. (Mrs.) Meeta Pathade, I/C principal of our college for having given me chance to undergo the project. Secondly, I convey my sincere thanks to the Course Coordinator Ms Byshi Panikar for her valuable suggestion and co-operation which help to me complete the project successfully. The completion of project is a milestone in the life of the banking & insurance and its execution is inevitable without the co-operation of the project guide. I am deeply grateful to my project guide Mr. Pallav Das for the valuable ideas, required suggestions and encouragement for refining this project study. Finally, I think all the staff of our college and my friend for their valuable support and contribution to my project.

Page | 74


CONTENT SR. NO.

TOPIC

PAGE NO.

CHAPTER 1

INTRODUCTION OF E-BANKING

1-2

CHAPTER 2

DEFINITION OF E-BANKING

3

CHAPTER 3

RESEARCH METHODOLOGY

4 - 20

CHAPTER 4

FUNCTION & PERFORMANCE OF UCO BANK

4.1

OVERVIEW OF UCO BANK

4.2

DEPOSIT SCHEME

4.3

LOANS SCHEME

CHAPTER 5

ANALSIS OF INTERPRETATION

5.1

CAPITAL ADEQUACY RATIO

5.2

ADVANCES TO ASSETS

5.3

ASSET QUALITIES

CHAPTER 6

INTERNET/E-BANKING

6.1

INTRODUCTION

6.2

AUTOMATED TELLER MACHINE

6.3

TELEBANKING

6.4

DEBIT CARD

6.5

SMS BANKING

CHAPTER 7

FACTORS ADOPTING E- BANKING

7.1

ACCESSIBILITY

7.2

PERFORMANCE GUARANTEE

CHAPTER 8

SURVEY REPORT

56-65

CHAPTER 9

CONCLUSION

66

BIBLOGRAPHY

67

ANNEXURE

68-69

21 - 25

32-40

41-52

Page | 75


EXCUTIVE SUMMARY

Banking sector has been undergone a complex, but comprehensive phase of restructuring since 1991, with a view to make it sound, efficient, and at same time forging its link firmly with the real sector for promotion of saving, investment and growth. Although a complete turnaround in banking sector performance is not expected till the completion of reforms, signs of improvement are visible in some indicators under this bank is require to enhance the capital adequacy, strengthen asset quality, improve management, increase earning and reduce the sensitivity to various financial risk. Now a day‟s banking ban king sector is modernizing and expanding ex panding its hand in different

financial events every day. At the same time the banking process is becoming faster and easier. In order to survive in the competitive field of the banking sector commercial banks are looking for better service opportunities to provide their customer satisfaction. This has been undertaken mainly to find out whether e-banking can satisfy the customers or not. E-banking helps in improving the relationship between bankers and customers. The bankers expressed confidence that such bonds would bring improvement in the overall performance of banks. About different promotional measures adopted by banks to promote e-banking, the study discloses that banks mostly resort to the u se of print media followed by internet, SMS on mobile, outdoor advertisements and television. Majority of the bankers believe that banks are wanting in providing sufficient guidance to customers for using e-banking services.

Page | 76


CUSTOMER SATISFACTION

WITH

E-BANKING IN UCO BANK

Page | 77

Customer Satisfaction With Ebanking in Uco Bank

Recommend Documents