CHAPTER-1

INTRODUCTION:

Internet Banking System is a system that has been

developed in order to help clients with the daily day-to-day

transactions. Internet banking systems means that clients can

now do banking at the leisure of their homes. Also known as

online banking, the system allows both transactional and non-

transactional features. Online banking or internet banking allows

customers to conduct financial transactions on a secure website

operated by the retail or virtual bank.

There is a sea change in the media world. While most

consumers see the newspapers, the same magazines and listen to

the same radio programs, behind this bland public exterior there

is a seething world of innovation, acquisition, global partnership

and divorces, births and deaths… all of it most readily

interpreted as the inevitable result of the technological revolution

that is in the process of merging telephones, computers,

televisions in to a single all singing, all dancing magic kit that

will, very possible, change all of our lives more than we can

S.C.S (A) COLLEGE, PURI Page 1

imagine some day There are 2 ways you can respond to this 1 is

to panic, which may mean simply curling up in a corner and

wishing that it would all go away. The other is to embrace the

new religion with messianic fervor and go out to proclaim the

millennium. I welcome you to the new emerging world of the Info-

High-Way, destined to redefine the world of communications. The

importance of banking sector is immense in the progress

and prosperity of any State or country

Bank may be defined as a financial institution which is

engaged in the business of keeping money for savings and

checking accounts or for exchange or for issuing loans and credit

etc. A set of services intended for private customers and

characterized by a higher quality than the services offered to

retail customers. Based on the notion of tailor-made services, it

aims to offer advice on investment, inheritance plans and provide

active support for general transactions and the resolution of

asset-related problems. The essential function of a bank is to

provide services related to the storing of deposits and the

extending of credit. Basic function may include Credit collection,

Issuer of banking notes, Depositor of money and lending

loans. Now a days banking is not in its traditional way, with

S.C.S (A) COLLEGE, PURI Page 2

the advancement of technology it’s focusing on more comfort of

customer providing services such as:

1. online banking

2. investment banking

3. electronic banking

4. internet banking

5. pc banking/mobile banking

6. e-banking

Objective of the study:

 To knowing about Internet Banking at anywhere, any time by

UCO.

 To know Internet facility of UCO and many more.

 To know E-Banking facility how to use it and its law

provisions.

 To understand the concept of Internet banking importance to

bank as well as customers.

Scope of the Study

 The study is made taking consideration of whole UCO Bank.

With reference to experience availed.

S.C.S (A) COLLEGE, PURI Page 3

  This project study has vital scope and issues relating to

promote the economic development, employment generation

and financing aspects have barren dealt with the concerned

date have been studied for the periods.

METHODOLOGY

Secondary data:-

The data are based on Secondary data which have been

collected from websites, journal, annual report & magazines

published earlier.

Limitation of the study:

There is no activity that can be completed without any

limitation. The main limitation faced during the preparation

of this project report on “Internet Banking of UCO is as follows:-

 The information collected through secondary data. Some of

the information might be wrong.

 The report is based on the analysis of the last five years

data, which may not be sufficient in some cases.

 The analysis and conclusion made is as per my limited

understanding for this concerned subject.

S.C.S (A) COLLEGE, PURI Page 4

 CHAPTER-2

Review of Literature

Banking is a prime mover in the economic development of a

nation and research is so essential to improve its working results.

The management without any right policy is like "building a

house on sand". It means an effective management always needs

a thorough and continuous search into the nature of the reasons

for, and the consequences of organization. In line with this, some

related earlier studies conducted by individuals and institutions

are reviewed to have an in-depth insight into the problem and

exploring the reformation of banking policy. The main theme and

essence of few relevant studies are presented below.

Domar and Timbergen (1946) '', measured the profitability of

banks for the economic development purpose and settled the

theoretical framework in expanded form which was first

introduced by Jorgenson and Nishimizudin for international

economic growth comparison and development.

Sharma (1974) said, "The expansion of banking facilities was

uneven and lopsided and banks were concentrating their

operations in metropolitan cities and towns. A fairly large number

S.C.S (A) COLLEGE, PURI Page 5
of rural and semi urban centre with reasonable potentialities of

growth failed to attract the attention of commercial banks. As far

as the deposit mobilization in the rural areas is concerned, much

remains to be done."This gives emphasis on the rural and semi

urban growth of banks.

Gopal Karkal(1977) said, "Some regions have done well in

spreading the banking facilities, while some regions have still

very backward. Further, our clients are larger merchants and big

industrialists. They approach with their demand for larger loans

and advances, and in return give large business. If we transfer

our limited resources to small industry, agriculture etc., how can

we increase our deposits, advances etc.,

Raghupathy (1977), gave his view on the system of banking

sector that "if the objectives are not fully achieved, the fault does

not lie entirely with the bankers. The fault lies in our, not being

able to integrate all powerful instruments of development into an

effective system".

Shah (1977), gave his view regarding bank profitability and

productivity. He has expressed concern about increased expenses

and overheads. Slow growth in productivity and efficiency is due

S.C.S (A) COLLEGE, PURI Page 6

to wasteful work of the banks. He concludes that the higher

profitability can be result from increased spread and innovations

have a limited role. He favored written job descriptions for

improvement of staff productivity. He also emphasized reduction

of costs, creation of a team spirit improvement in the

management for improving bank profitability and productivity.

Madhu V, (2003) has reported that the banks invested more in

technology and increased focus was on Internet banking,

Automated Teller Machine (ATM), Mobile banking, Tele-banking

and Any where banking. Technology also helped banks to

improve their product delivery and profitability. It has increased

customer service and reduced transaction costs and it helped

banks to lower charges to its customers.

Ranjana Kumar, (2003) examined the banks need to focus more

on the quality of services in tune with the expectations of the

public at large. Now customers are highly discerning and have a

very low tolerance for poor service. Also, they display a greater

propensity to switch service providers. Hence, Weak banks

should identity and anticipate customer requirements and

develop the capability of servicing those needs.

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Singh S.B, (2004) in his article „Indian Banking Vision‟ has

stated that the future bank will be slim and trim in their physical

size and structure, with emphasis on automation and

outsourcing of different services. In the future, customer-banker

contact will be reduced, because of various value – added services

like ATM, electronic banking, Tele-banking and card banking.

Shajahan S, (2005) has identified the significant shifts in the

customer’s levels of satisfaction from the traditional banking

services to modern electronic data-based services and also

anticipated the frequency of visits by the customers to banks for

various needs. The author has also opinions that Internet literacy

is the key determinant of online banking penetration in India.

Uppal R.K, (2008) in his research survey on customer perception

of E-banking services concluded that most of the customers of E-

banks are satisfied with the different E-channels and their

services, but the lack of awareness is a major obstacle to the

spread of E-banking services.

Majumdar (2009) studied the micro credit providers m India. He

studied that in India variety of micro finance institutions are

there both under government and non government setup. Small

S.C.S (A) COLLEGE, PURI Page 8

Industries Development Bank of India (SIDBI). National Bank for

Agriculture and Rural Development (NABARD), and Rashtriya

Mahila kosh (RMK) were playing the leading role in this respect.

Commercial banks, grameen banks, cooperative banks and

regional rural banks were also actively providing and operating

the accounts of the beneficiaries.

Shetty (1976) assessed the dimensional changes in credit

deployment during the first fi ve years of nationalization in

relation to changes in output and prices. The rationale for this

anal ysi was the fact that, in any accepted model of demand for

money, one common variable is the gross national product or

some other variant of it in real terms. Consequently. it was

hypothesized that credit for any sector or industry over a period

has to have some relationship with its performance in real terms,

particularly output. He observed a declining trend in the credit

extended by banks to industries since nationalization, though it

was higher than other sectors. He concluded that increase in

bank credit has occurred far in excess of increase in output

during the years 1968/69 to I 973/74 .

CHAPTER-3

S.C.S (A) COLLEGE, PURI Page 9

Company Profile:

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.

S.C.S (A) COLLEGE, PURI Page 10

 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.

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.

UCO Bank, formerly United Commercial Bank Ltd, is a

commercial bank. The Bank's segments include Treasury,

Corporate/Wholesale Banking, Retail Banking and Other

Banking Operations. The Bank offers personal banking, corporate

banking, international banking and rural banking services. Its

personal banking includes deposits, loans/advances and debit

card; corporate banking includes loans/advances, deposits, value

added services, and micro and small enterprises (MSME);

international banking includes foreign currency loans and

S.C.S (A) COLLEGE, PURI Page 11
remittances, and rural banking includes agriculture credit,

financial inclusion and MSME. Its other services include

government business, policies and equated monthly installment

(EMI) calculator. It operates through a network of approximately

10 circle offices, over 50 zones and approximately 3,070 domestic

branches, and over four overseas branches. It has approximately

2,570 automated teller machines (ATMs).

The Banking System

The banking sector in India consists of commercial banks

and cooperative banks. It includes foreign banks operating in

India in addition to Indian banks in the public sector and private

sector. Commercial banks constitute by far the largest segment of

the banking system. The cooperative banking structure is federal

in character, the cooperative banks essentially follow the 'unit'

banking principle and provide short-term credit to the rural

sector. The land development banks fund the activities related to

capital formation in agriculture. urban cooperative banks finance

small business in urban areas. Regional rural banks are

subsidiaries of commercial banks which are especially set up in

rural areas to provide credit and other facilities to weaker

sections for productive activities in agriculture. trade, industry

S.C.S (A) COLLEGE, PURI Page 12

etc. The govcrnmentowned post office saving bank is a distinct

entity in as much as it is oriented towards mobilization of small

saving of the community and does not undertake any lending

activity (Bhalla, 201 I).

An important aspect of banking in India is the

predominance of the public sector. The Government of India

(GOI) nationalized the largest Indian commercial banks in two

rounds i.e. 14 banks during 1969 and 6 banks during 1980. The

public sector. private sector and foreign banks are required to

meet targets in respect of sectoral deployment of credit. regional

distribution of branches and regional credit-deposited ratios. The

operations of banks have been determined by lead bank scheme,

differential rate of interest scheme. credit authori1.ation scheme,

inventory norms and lending systems, formulation of the credit

plans and service area approach (Bhole, 2007).

The banking system in India is significantly different from

that of other Asian nations because of the country's unique

geographic, social, and economic characteristics. India has a

large population and land size, a diverse culture, and extreme

disparities in income. which arc marked among its regions. There

are high levels of illiteracy among a large percentage of its

S.C.S (A) COLLEGE, PURI Page 13

population but, at the same time, the country has a large

reservoir of managerial and technologically advanced talents.

Between about 30 and 35 percent of the population resides in

metro and urban cities and the rest is spread in several semi-

urban and rural centers. These inherited characteristics are

reflected in the structure, size, and diversity of the country's

banking and financial sector. The banking system has had to

serve the goals of economic policies enunciated in successive five

year development plans, particularly concerning equitable income

distribution, balanced regional economic growth, and the

reduction and elimination of private sector monopolies in trade

and industry.

HISTORY:-

UCO bank formerly known as United Commercial Bank,

incorporated on 6th of January 1943. It was vision of Mr. G.D

Birla to form a truly Indian Bank which came into reality after

'Quit India' movement. The bank has headquartered in Kolkata.

It got nationalised in the year 1969 and 100% ownership

was taken over by Government in the bank. After this lot of

S.C.S (A) COLLEGE, PURI Page 14

 changes took over in banking activities such as it started its

branch expansion in fast pace especially in rural areas and it also

went through organisational restructuring. This resulted in

functional specialisation and decentralization of administration.

In 1985 the name of bank was changed to UCO Bank.

Presently it has a network of over 2000 branches, over 370 ATMs,

and 35 regional offices across country as well as in Singapore

and Hong Kong.

Products

 Personal Banking– It provides several products and services in

personal banking such as deposit, saving, personal loans,

educational loans, car loans, RTGS, debit card, etc.

 NRI banking– It also offers products and services to NRI Clients

such as FCNR accounts, remittance services, etc.

 It also provides working capital finance, term loans, loans

against securities issued by government/RBI, short term loan

for pensioners, etc. It also offers services to agricultural and

SME sectors.

Ghanshyam Das Birla, an eminent Indian industrialist,

during the Quit India movement of 1942, conceived the idea of

organising a commercial bank with Indian capital and

S.C.S (A) COLLEGE, PURI Page 15

management, and the United Commercial Bank Limited was

incorporated to give shape to that idea. The bank was started

with Kolkata as its head office with an issued capital of 2 crores

and a paid-up capital of 1 crore. Birla was its chairman and the

Board of Directors included eminent personalities of India drawn

from many fields. The bank opened 14 branches simultaneously

across India.

After World War II, United Commercial Bank opened several

overseas branches. The first, in 1947, was in Rangoon. Branches

in Singapore (1951), Hong Kong (March 1952), London (1953),

and Malaysia followed. In 1963 the Burmese Government

nationalized United Commercial Bank's three branches there,

which became People's Bank No. 6.

On 15 September 1967, Jalpaiguri Banking and Trading

Corporation (JBTC) which had been established in Jalpaiguri in

1887 (or 1889; accounts differ), made a voluntary transfer of its

assets and liabilities to United Commercial Bank. JBTC had only

one office and specialised in lending against mortgages on tea

gardens.

The Government of India nationalised United Commercial

Bank on 19 July 1969. The nationalised bank continued the

S.C.S (A) COLLEGE, PURI Page 16

operations of the overseas branches in London, Singapore, and

Hong Kong. However, Malaysian law forbade foreign government

ownership of banks in Malaysia. Therefore, United

Commercial, Indian Overseas Bank, and Indian Bank contributed

their operations in Malaysia to a new joint-venture bank

incorporated in Malaysia, United Asian Bank, with each of the

three parent banks owning a third of the shares. At the time,

Indian Bank had three branches, and Indian Overseas Bank and

United Commercial Bank had eight between them.

An act of parliament changed the bank's name to UCO Bank

in 1985, as a bank in Bangladesh existed with the name "United

Commercial Bank", which caused confusion in the international

banking arena.

In 1991, Bank of Commerce acquired United Asian Bank; in

time CIMB came to own Bank of Commerce.

In 1998, UCO closed its London branch. Bank of

Baroda acquired the assets and liabilities, but not the personnel,

who were made redundant.

Our Vision Statement

S.C.S (A) COLLEGE, PURI Page 17

 To emerge as the most trusted, admired and sought-after

world class financial institution and to be the most preferred

destination for every customer and investor and a place of pride

for its employees.

Our Mission Statement

To be a Top-class Bank to achieve sustained growth of

business and profitability, fulfilling socio-economic obligations,

excellence in customer service; through upgradation of skills of

staff and their effective participation making use of state-of-the-

art technology.

Global banking has changed rapidly and UCO Bank has

worked hard to adapt to these changes. The Bank looks forward

to the future with excitement and a commitment to bring greater

benefits to you.

UCO Bank, with years of dedicated service to the Nation

through active financial participation in all segments of the

economy - Agriculture, Industry, Trade & Commerce, Service

Sector, Infrastructure Sector etc., is keeping pace with the

changing environment. With a countrywide network of more than

3000 service units which includes specialised and computerised

S.C.S (A) COLLEGE, PURI Page 18

branches in India and overseas, UCO Bank has marched into the

21st Century matched with dynamism and growth.

Overview

We are in the Service of Community since 1943. We have

more than 3000 Service Units spread all over India. We also

operate in two Major International Financial Centres, namely

Hong Kong and Singapore. We have our Correspondents/Agency

arrangements all over the world. We undertake Foreign Exchange

Business in more than 50 Centers in India. We have Foreign

Exchange Dealing Operations at 1 Center.

Our Strengths

Country-wide presence Overseas Presence with Profitable

Overseas Operations Strong Capital Base High Proportion of Long

Term Liabilities A Well Diversified Asset Portfolio A Large and

Diversified Client Base All Branches under Core Banking

Solution(CBS) Branch representation in Top 100 Centres (as per

deposits) in the country

Organisation Structure

Headquartered in Kolkata, the Bank has 42 Zonal Offices

spread all over India. Branches located in a geographical area

S.C.S (A) COLLEGE, PURI Page 19

report to the Zonal Office having jurisdiction over that area.

These Zonal Offices are headed by Senior Executives ranging

upto the rank of Deputy General Manager, depending on size of

business and importance of location. The Zonal Offices report to

8 Circle Offices headed by General Managers/senior Deputy

General Managers.

Our Commitment to Customers

In all our promotional activities, we will be fair and

reasonable in highlighting the salient features of the schemes

marketed by us. Misleading or unfair highlighting of any aspect

of any scheme/service marketed by the Bank leading to unfair

practice shall not be resorted to by the Bank.

In commemorating the 50th Year of Independence of India,

the Bank released a booklet entitled "Our Commitment to

Customers" incorporating the Citizens’ Charter on services

provided by the Bank.

In our continuing endeavour to serve our customers better,

we have considerably extended the business hours for public

transaction at the branches on all week-days.

S.C.S (A) COLLEGE, PURI Page 20

UCO INTERNET BANKING

UCO Bank is India’s largest bank with a branch network of

over 11000 branches and 6 associate banks located even in the

remotest parts of India.

UCO Bank offers a wide range of banking products

and services to corporate and retail customers. Online UCO is the

Internet banking portal for UCO Bank.

The portal provides anywhere, anytime, online access to

accounts for State Bank’s Retail and Corporate customers. The

application is developed using the latest cutting edge technology

and tools. The infrastructure supports unified, secure access

to banking services for accounts in over 11,000 branches across

India.

1. E-TICKETING :-

You can book your railway, air and bus tickets online

through Online UCO.

S.C.S (A) COLLEGE, PURI Page 21

 To book your train ticket, just log on to irctc.co.in and

create an ID there at if you do not have one. Submit your travel

plan and book the ticket(s)-either

 i-ticket (where the delivery of tickets will be made at

your address) or

 E-tickets (wherein after successful payment transactions,

an e-ticket is generated which can be printed any time. For

an e-ticket, the details of photo identity card will required to

be filled in)

2. UCO E-TAX:-

 You can pay your taxes online through UCO E-Tax. This

facility enables you to pay TDS, Income tax, Indirect tax,

Corporation tax, Wealth tax, Estate Duty and Fringe

Benefits tax. Click the e-Tax link in the home page. You are

displayed a page with two links Direct Tax and Indirect Tax

3. Bill Payment

 A simple and convenient service for viewing and paying

your bills online.

 No more late payments

 No more queues

 No more hassles of depositing cheques.

S.C.S (A) COLLEGE, PURI Page 22

4. RTGS/NEFT

RTGS system facilitates transfer of funds from accounts in

one bank to another on a "real time" and on "gross settlement"

basis. This system is the fastest possible interbank money

transfer facility available through secure banking channels in

India.

5. E-PAYMENT

 UCO Mutual FUND: You can invest in the UCO Mutual

Fund schemes online. Logon to www.UCOmf.com and

select the scheme in which you want to make investment

in the payment option select UCO.

 CCAVENUES: Enjoy shopping at the CC Avenue Shopping

Mall and purchase from a wide variety of products

and services through CC Avenue Certified Vendors. Make

payments for your purchases using your Internet

enabled UCO accounts.

6. Third Party Transfer

You can transfer funds to your trusted third parties by adding

them as third party accounts. The beneficiary account should be

any branch UCO. Transfer is instant. You can do any number

S.C.S (A) COLLEGE, PURI Page 23

of Transactions in a day for amount aggregating Rs.1lakh.To

transfer funds to third party having account in UCO, you need to

add and approve a third party, you need to register your mobile

number in personal details link under profile section.

7. Demand Draft :-

The Internet Banking application enables you to register

demand drafts requests online. You can get a demand draft from

any of your Accounts (Savings Bank, Current Account, Cash

Credit or Overdraft).

S.C.S (A) COLLEGE, PURI Page 24

 CHAPTER-4

ANALYSIS & INTERPRITATION

CAPITAL ADEQUACY RATIO

Mar‟13 Mar‟14 Mar‟15 Mar‟16 Mar‟17

14.15 22.56 10.09 14.93 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

S.C.S (A) COLLEGE, PURI Page 25

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 risks such as credit risk,

operational risk, etc. 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 its CAR showed a sudden dip in the year 2013 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‟13 Mar‟14 Mar‟15 Mar‟16 Mar‟17

69.93 84.22 102.14 189.19 234.24

S.C.S (A) COLLEGE, PURI Page 26

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

2013 to 2014 and it decreased by around Rs250 crore in 2014

and remained the same for the year 2015. But its debt capital

has 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 further than equity capital.

S.C.S (A) COLLEGE, PURI Page 27

GOVERNMENT SECURITIES TO TOTAL INVESTMENT

2013 2014 2015 2016 2017

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

S.C.S (A) COLLEGE, PURI Page 28

fluctuations. The high ratio tells that UCO Banks investment

policy is conservative and their investments are safe.

5000

4500

4000

3500

3000 2013
2014
2500
2015
2000
2016
1500
2017
1000

500

0
Gross NPA Net NPA

The bank kept a tight leash on its operating expenses,

which helped it reduce its cost to income ratio from 43.57% in

Q1FY14 to 38.85% in Q1FY15, one of the lowest ratios in

S.C.S (A) COLLEGE, PURI Page 29

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.

ADVANCES TO ASSETS

Mar‟08 Mar‟09 Mar‟10 Mar‟11 Mar‟12

0.60 0.63 0.61 0.62 0.60

S.C.S (A) COLLEGE, PURI Page 30

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.

S.C.S (A) COLLEGE, PURI Page 31

INTERNET PENETRATION

India’s internet user base is estimated to reach 550 million

by 2020, with a penetration of approximately 40 percent, up from

the current 35 percent.

The report also states that internet penetration is the

highest in metros (77 percent) while in tier 3 cities and less

urban regions, it is less than 3 per cent. This will clearly mean

sluggishness in the adaptation to technology-driven education in

tier II and III cities.

S.C.S (A) COLLEGE, PURI Page 32

Notably, the report adds that India is estimated to have 371

million mobile internet users, and according to the Strategy

Analytics Survey report, India will overtake Japan to be the

world’s third largest 4G LTE market by 2016. It will also surpass

the US to be the world’s second largest smart phone market by

2017. One of the reasons for this may be the slashing of prices.

Affirming the e-commerce companies’ common statement,

the report says that 65 percent of internet traffic is coming from

smartphones, and the number of smartphone users is expected

to grow at a CAGR of 38 percent in the next four years.

S.C.S (A) COLLEGE, PURI Page 33

 Today's banking systems of UCO Bank have been highly

digitized esp. since the advent of the Internet and the Web. While

in the past the majority of bank customers only experienced e-

banking via the use of ATMs, in recent years online banking

through the Internet becomes more and more popular and mobile

banking has also start seeing its growth thanks to the rapid

penetration of personal mobile devices in the general population.

According to annual surveys of the American Banks Association

(ABA), since 2009 Internet banking has become the most

preferred choice of banking for the most bank customers. The

ABA Survey released on 9 October 2012 shows that 39% bank

customers interviewed prefer Internet banking (via a laptop or a

PC) the most and 6% prefer mobile banking the most. Even for

the most conservative group of customers who are of age 55+,

Internet banking has become the first choice of banking since

2011 according to the ABA Surveys 2011 and 2012. Although the

ABA surveys focus on American banking sector only, a similar

pattern of the increased use of Internet banking has been

observed in many other countries.

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 The rapid growth of online banking of UCO Bank bring a

great amount of convenience to bank customers and a lot of

opportunities for new businesses (e.g. online payment platforms

and credit card free online shopping). However, cyber criminals

are also benefiting from the same level of convenience since now

they are able to attempt many new kinds of attacks which were

either impossible or limited to a very small scale due to the need

to be physically present around a UCO bank branch, an ATM or a

POS terminal. To counter these new cyber threats, many new

security measures have been developed and deployed by financial

institutions. Unfortunately, not all security measures work(ed)

well and we keep witnessing successful attacks to financial

institutions and their customers.

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 The cyber battle between us and cyber criminals is not a

purely technical problem in the computer security field, but also

involves many other disciplines such as human computer

interface, psychology, economics, law, politics, management and

anthropology. In addition to the well-known balance between

security and usability of all human-involved computer security

systems (e-banking being not an exception), some recent research

work also revealed how different stakeholders behave according

to customer protection laws, banking regulations, their own

modeling of (economic and legal) risks and competition among

different entities.

The internet in India has become a viable source to do many

things including transactions pertaining to payments. In today’s

fast moving world, people tend to transact on internet than

triggering the traditional styled offline transaction. The explosive

adoption of smart phone and mobile internet in India has fuelled

the growth of digital payment industry further.

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 In accordance to the report that is constructed by IMRB

International, Payment Council of India and Internet and Mobile

Association of India on Digital Payments of India, country has

gained a Compound Annual Growth Rate (CAGR) of 10 percent in

digital payments since 2015 till 2018 year-end.

Payments on electronic media have increased because of

explosive growth in Etailing sites, online Travel sites for tickets

and accommodation in hotels and resorts, financial services for

paying fees, rents and other needed transactions. These

transactions are now done through internet to reduce time

wastage. The transition modes mainly are through card

transactions, mobile wallet, cash/ cash on delivery, transfers

through net banking, but do not include remittance.

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 CHAPTER-5

FINDINGS

After the data collection of both the sources, I have analyzed

the data & conducted various financial statement analyses &

prepare various graphs.

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  The findings of the study showed that there is a wide

divergence of customers’ opinion regarding e-banking

services.

 E- Banking by UCO was very easy for new customers.

 To study the relationship between electronic banking and

customer satisfaction and to ascertain which aspects of e-

banking have significant impact on satisfaction

SUGGESTIONS

The public sector banks must improve its service quality in

terms of communication, responsiveness, reliability and

understanding.

The study suggested that if the public sector banks want to

increase their service quality level as compared to the

private sector.

The UCO of India should conduct various training

programmes for the employees, so that they will get aware

with the terms of internet banking.

There should be an open end discussion on the threats and

vulnerabilities coming across

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 There should be clear sight of operations which needs to

outsource to other companies, this will lead to ease in work

for employees.

Laws regarding IT or cyber laws get change as per the need.

UCO should anticipate such kind of changes and get loaded

with various plans and actions.

CONCLUSION:

Studying the project we came to know that Internet banking

is clearly the way forward for the UCO. It provides comfort to

customers at the same time it provides cost cutting to UCO by

eliminating physical documentation. Internet banking saves time

of bank as well as those of customers. Study states that internet

banking provides greater reach to customers. Feedback can be

obtained easily as internet is virtual in nature. Customer loyalty

can be gain. Personal attention can be given by bank to customer

also quality service can be served. Bank should know that No

system is perfect, however a system of such a type will need to be

very secure. This is a system which holds account details and

customers wealth. If such a system was not trusted and not

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reliable, then UCO would face serious laws and would lose

business.

BIBLIOGRAPHY

Websites

www.wikipedia.org/wiki/ucobank

www.indianinfoline.com

www.allbanksolution.com

www.financialexpress.com/ucobank

www.moneycontrol.com/Ucobank/financialstatement

www.thehindu.com/ucobank

www.indiaeducation.net

www.rbi.org.co.in

Books:

UCO Training guide for internet banking.

UCO Annual Report-2016/17

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Newspaper

 Indian Times

 Economics India

 Times of India

 The Hindu

 Money Control

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