A Detailed Analysis of Financial Performance over

2012-2017 using CAMELS model

With Special Reference To

Submitted To-
Dr. (Prof.) Chandana Goswami
Department of Business Administration
Tezpur University

Submitted By-
Aditya Baid(BAM17013)
 PREFACE

Research work in management is extremely important for it gives a close view of real business
world and bridges the gap between theory and practical. This report attempts to bring under
one roof the entire work and dedication put by me in completion of the project work on “A
detailed analysis of Financial Performance of UCO bank over 2012-2017 using CAMELS model.”
I have expressed my experience in my own simple way. I hope all the readers of this report find
it useful and informative and it will be worth reading. All constructive feedback is cordially
invited.
 ACKNOWLEDGEMENT

“Gratitude is not a thing of expression; it is more matter of feeling.”

Every project big or small is successful largely due to the effort of a number of wonderful people
who have always given their valuable advice or lent a helping hand. I sincerely appreciate and
thank for the inspiration, support and guidance of all those people who have been instrumental
in completing and making this report a success.
I am extremely grateful to Dr. (Prof.) Chandana Goswami Madam for the confidence bestowed
in me and providing me the opportunity to learn and understand the matter well.
Last but not the least I place a deep sense of gratitude to all my friends for the discussions that
resulted in the enrichment of my knowledge and their inputs have helped me to incorporate
relevant things in the project.

-Regards
Aditya Baid
 CONTENTS

Preface .............................................................................................................................................................. 1
ACKNOWLEDGEMENT....................................................................................................................................... 3
LIST OF TABLES .................................................................................................................................................. 6
LIST OF FIGURES ................................................................................................................................................ 7
INTRODUCTION................................................................................................................................................. 9
INDIAN BANKING SYSTEM .................................................................................. Error! Bookmark not defined.
Functions of Banks: ............................................................................................. Error! Bookmark not defined.
Loan and its Types:.............................................................................................. Error! Bookmark not defined.
Objective of the study: ........................................................................................ Error! Bookmark not defined.
HISTORY OF HDFC BANK ................................................................................................................................. 14
MISSION .......................................................................................................................................................... 14
VISION STATEMENT OF HDFC BANK ............................................................................................................... 15
BUSINESS STRATEGY ....................................................................................................................................... 15
COMMERCIAL LOAN............................................................................................ Error! Bookmark not defined.
Types of commercial loans ................................................................................. Error! Bookmark not defined.
Working Capital Loan/Cash Credit Facility:..................................................... Error! Bookmark not defined.
Term Loan: ...................................................................................................... Error! Bookmark not defined.
Equipment and Vehicle Loan: ......................................................................... Error! Bookmark not defined.
Real Estate Loan: ............................................................................................. Error! Bookmark not defined.
Land and Subdivision Development: ............................................................... Error! Bookmark not defined.
Letter of Credit: ............................................................................................... Error! Bookmark not defined.
Types of commercial loan rendered by HDFC Bank............................................ Error! Bookmark not defined.
Working Capital Loan: ..................................................................................... Error! Bookmark not defined.
Terms loans:.................................................................................................... Error! Bookmark not defined.
Business Loan:................................................................................................. Error! Bookmark not defined.
Commercial Vehicle Loans: ............................................................................. Error! Bookmark not defined.
Infrastructure & equipment finance loans: .................................................... Error! Bookmark not defined.
Health care/ medical equipment finance: ...................................................... Error! Bookmark not defined.
CIBIL Score .......................................................................................................... Error! Bookmark not defined.
Loan to Mortgage Ratio ...................................................................................... Error! Bookmark not defined.
Limitations on the Numbers of Loans ................................................................. Error! Bookmark not defined.
Disbursement of Loan .........................................................................................Error! Bookmark not defined.
Procedure of Repayment .................................................................................... Error! Bookmark not defined.
Recovery of Overdue Loan.................................................................................. Error! Bookmark not defined.
Findings of the study........................................................................................... Error! Bookmark not defined.
Conclusion........................................................................................................... Error! Bookmark not defined.
Reference ............................................................................................................ Error! Bookmark not defined.

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1Qzu2S1StByByDtBtA1QyCtGzztCzztCtGyEtAyB1StG1TzytDtAtGyBtD1RyDtC1OyDzyyEyCtDtA2Qt
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ge&p=quiz+questions+on+commercial+and+co-operative+banks
https://www.gktoday.in/gk/cooperative-banks-in-india/
https://in.search.yahoo.com/yhs/search;_ylt=AwrxhTuxz9paJ2gA9jLnHgx.;_ylc=X1MDMjExNDc
yMzU1OQRfcgMyBGZyA3locy1pcnktZnVsbHlob3N0ZWRfMDAzBGdwcmlkAzk3ZXdqQnhTUlllYk
5FOGpjT2F3c0EEbl9yc2x0AzAEbl9zdWdnAzcEb3JpZ2luA2luLnNlYXJjaC55YWhvby5jb20EcG9zA
zAEcHFzdHIDBHBxc3RybAMwBHFzdHJsAzEwBHF1ZXJ5A3BwdCUyMHF1aXoEdF9zdG1wAzE1M
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https://www.scribd.com/search?content_type=documents&page=1&query=quiz%20on%20com
mercial%20bank
https://www.scribd.com/document/213962967/Commercial-Bank
https://www.scribd.com/document/31679898/1
https://www.scribd.com/presentation/22145791/Commercial-Banking
https://www.scribd.com/document/338231626/1-Introduction-of-Commercial-Banking

https://www.scribd.com/doc/37080933/Business-Quiz-Ppt
https://www.scribd.com/doc/200575736/Asean-Quiz-1

LIST OF TABLES

SL. Table Page Number

1 Rates And Fees Of Bank Loan 18
No.
 2 Rate Of Interest Of Commercial Vehicle Loan 20

3 RatesAnd
Fees of interest
Charges Of Infrastructure & Equipment Finance Loans 22

4 Charges And Fees Of Health Care/ Medical Equipment Finance 24

5 Rates And Fees For Professional Fees 25

LIST OF FIGURES

SL.

Figure Page No.

No.
1 INDIAN BANKING SYSTEM 8

2 FUNCTIONS OF BANKS 9
 EXECUTIVE SUMMARY

Today the banking sector is one of the fastest growing sector and a lot of funds are invested in
Banks. Also today’s banking system is becoming more complex. There are many models
evaluating the performance of the banks, but the CAMELS Model is widely accepted because it
measures the performance of the banks from each parameter i.e. Capital, Assets, Management,
Earnings and Liquidity. Under the CAMEL framework banks are required to enhance capital
adequacy, strengthen asset quality, improve management, increase earnings and reduce
sensitivity to various financial risks.

For the evaluation of performance using CAMELS, I have chosen UCO bank from the public
sector and have collected its annual reports of the consecutive five years i.e. 2012-13 to 2017-18.
Then I have calculated ratios for the bank and interpreted them.

OBJECTIVE OF THE STUDY

The project has been undertaken to:

 To calculate the various CAMELS ratios and analyse the financial performance of UCO
bank for the period 2012-2017

 To find out the factors which brought changes in the ratios.

 To analyze the relative contribution of the factors in the change.

INTRODUCTION

Banking is nearly as old as civilization. The history of banking could be said to have started
with the appearance of money. The history of banking in each country runs in lines with the
development of trade and industry, and with the level of political confidence and stability.

Banks fulfil the role of a financial intermediary. This means that it acts as a vehicle for moving
finance from those who have surplus to those who have deficit. In everyday branch terms, the
banks channel funds from depositors whose accounts are in credit to borrowers who are in debit.

Without the intermediary of the banks both their depositors and their borrowers would have to
contact each other directly. This is what has lead to the very foundation of financial institution like
banks.

The Indian Banking Sector is broadly classified into Scheduled Bank and Non-Scheduled banks. The
Scheduled banks are those included under the 2nd Schedule of the Reserve Bank of India Act, 1934.
The Scheduled Banks are further classified into: Nationalized Bank; State Bank of India and its
associates; Regional Rural Banks (RRBs); Foreign Banks; and other Indian private sector banks. The
term commercial bank refers to both Scheduled and Non-Scheduled commercial banks regulated
under The Banking Regulation Act, 1949.

CONTENTS

CONTENTS
 HISTORY OF HDFC BANK

HDFC BANK LTD was incorporated in August 1994 in the name of 'HDFC Bank Limited’, with its
registered office in Mumbai, India. HDFC Bank commenced operations as a Scheduled
Commercial Bank in January 1995.

If ever there was a man with a mission it was Hasmukhbhai Parekh, Founder and Chairman-
Emeritus, of HDFC Group. HDFC BANK LTD was amongst the first to set up a bank in the private
sector. The bank was incorporated on 30th August 1994 in the name of ‘HDFC Bank Limited’, with
its registered office in Mumbai. It commenced operations as a Scheduled Commercial Bank on
16th January 1995. The bank has grown consistently and is now amongst the leading players in
the industry.

HDFC is India's premier housing finance company and enjoys an impeccable track record in India
as well as in international markets. Since its inception in 1977, the Corporation has maintained a
consistent and healthy growth in its operations to remain the market leader in mortgages. Its
outstanding loan portfolio covers well over a million dwelling units.

HDFC has developed significant expertise in retail mortgage loans to different market segments
and also has a large corporate client base for its housing related credit facilities. With its
experience in the financial markets, a strong market reputation, large shareholder base and
unique consumer franchise, HDFC was ideally positioned to promote a bank in the Indian
environment in a milestone transaction in the Indian banking industry, Times Bank was merged
with HDFC Bank Ltd., effective February 26, 2000.

MISSION
I. World Class Indian Bank
II. Benchmarking against international standards.
III. To build sound customer franchises across distinct businesses
 IV. Best practices in terms of product offerings, technology, service levels, risk management
and audit & compliance

VISION STATEMENT OF UCO BANK

The HDFC Bank is committed to maintain the highest level of ethical standards, professional
integrity and regulatory compliance. HDFC Bank’s business philosophy is based on four core
values such as: -

1. Operational excellence.
2. Customer Focus.
3. Product leadership.
4. People.
The objective of the HDFC Bank is to provide its target market customers a full range of financial
products and banking services, giving the customer a one-step window for all his/her
requirements. The HDFC Bank plus and the investment advisory services programs have been
designed keeping in mind needs of customers who seeks distinct financial solutions, information
and advice on various investment avenues.

BUSINESS STRATEGY

I. Increasing market share in India’s expanding banking

II. Delivering high quality customer service
III. Maintaining current high standards for asset quality through disciplined credit risk
management
IV. Develop innovative products and services that attract targeted customers and
address inefficiencies in the Indian financial sector.