Banking sector is playing a pivotal role in the development of the economy of a country by way of channelizing the savings of the people towards national development.  Urban Co-operative Banks are rendering the service effectively by considering the people irrespective of the economic status.  Hence Urban Co-operative Banks are accepting the savings of poor and middle class people by way of deposits and make way for channelizing the savings towards economic development by way of capital formation.  So, it is necessary to study about UCBs in the financial aspect.  Because UCBs are able to survive only when they earn profit otherwise they will struggle in doing banking business.  The major source of fund of a bank is collecting deposits from the people and they have other sources also for their working fund such as own fund, borrowings and other liabilities.

KEYWORDS: Banks, savings, Working fund, borrowings