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UCO Bank was established by industrialist and Gandhian, GD Birla, in 1943, in Calcutta as “The United Commercial Bank Ltd” during the Swadeshi Movement. It was nationalised on July 19, 1969 along with 13 other major Scheduled Commercial Banks. In 1985, by an Act of Parliament, the name of the bank was changed to “UCO Bank”. Today it has a pan-India presence with remarkable growth and is one of the more reliable financial institution in India.
For many years, UCO Bank has been providing excellent customer service, meeting socio-economic obligations. Keeping parity with global banking, the Bank has worked effectively to adapt to the changes with active participation in different segments of the economy. Keeping with the priorities of the Government and the RBI, UCO Bank has also streamlined its policies to augment credit to the SME sector.
Small and Medium Enterprise Sector is the area of thrust for the banking and financial sector as a whole. The entrepreneurs in the MSME sector are mostly first generation businessmen who need nurturing, guidance and timely assistance. To give focussed attention to the SME sector, the Bank has a separate vertical.
Why MSME Finance ?
MSME is fast emerging as a growth area with immense potential contributing almost 37 per cent of India’s GDP. MSME account for 40 per cent of the total workforce.
In order to cater to a large section of this segment, UCO Bank ofifers these MSME products: UCO Trader; UCO UdyogBandhu; UCO Doctor; Artisans Credit Card; Laghu Uddayami Credit Card; PMEGP Swarojgar Credit Card; UCO Commercial Vehicle; UCO BunkarRinnYojana; UCO CA Scheme; UCO RoopSangam
Initiatives by UCO Bank to boost lending to MSMEs include: Financing MSME Entrepreneurs at a cheaper rate of interest; providing collateral- free loans up to ₹200 lakh (CGTMSE Coverage); Online MSME loan application facility; and emphasis on cluster based financing.
It provides training to field stafff and conducts workshops on a regular basis to make them aware of the various MSME products. It has Specialised MSME Branches/HUBs across the country to cater to the needs of MSME entrepreneurs.
The Bank has also registered with RXIL on the TReDS platform for financing trade receivables of MSMEs.
Moving to ‘Digital India’
An portal on Bank’s website enables entrepreneurs to apply for all types of MSME loans. Online application for loans under MUDRA Yojana can also be submitted through the website.
The status of these applications can be tracked online by the applicants on a real-time basis.
Credit facilities under the Pradhan Mantri Mudra Yojana, can be applied through the UCO Mobile Banking app. Online applications under Stand-up India scheme are being directly forwarded to the branches and monitored on a real-time basis.
Applications under the PMEGP scheme are monitored via the PMEGP e-tracking system and margin money claims are lodged through online system.
The MSME sector in our country has a bright future. Within the next few years, coverage of this sector under institutional credit will grow significantly. The initiatives of the Government of India such as ‘Make in India’, and ‘Digital India’, will provide huge opportunities of growth to this segment.
Banks and other financial institutions will fuel this growth by extending adequate and timely credit to the MSME sector.
The writer is the General Manager, Retail & MSME Department, UCO Bank
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