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Directors Report of UCO Bank
Mar 31, 2025
The Board of Directors has pleasure in presenting the Directors Report 2024-25 together with the Audited Statement of Accounts of UCO Bank for the financial year ended March 31,2025.
Our Bank has shown steady performance during the year and has made an Operating Profit of Rs. 6,037.31 crore for FY ended March 31, 2025. This reflects a significant Year on Year growth of 31.93 percent from an Operating Profit of Rs. 4,576.25 crore for FY ended March 31,2024. Net profit increased by 47.85 percent to Rs. 2,444.99 crore during FY ended March 31,2025 as against Net Profit of Rs. 1,653.74 crore for the FY ended March 31,2024. Bank has transferred Rs. 611.24 crore, 25% of current year profit to statutory reserve fund in compliance with Banking Regulation Act 1949.
Gross NPA has reduced to Rs. 5,918.54 crore (2.69 percent) as on 31.03.2025 from Rs. 6,463.30 crore (3.46 percent) as on
31.03.2024. Total income stood at Rs. 29,473.55 crore for the year ended 31.03.2025 registering a growth of 17.33 percent over the previous year ended 31.03.2024. Provision Coverage Ratio of the Bank has increased to 96.69 percent as on 31.03.2025 from 95.38 percent as on 31.03.2024.
Following are the highlights of financial performance indicators as on 31.03.2025.
|
(Rs. in crore) |
||
|
Particulars |
Year ended |
Year Ended |
| Â |
March 31, 2024 |
March 31, 2025 |
|
Total Deposits |
263129.77 |
293542.18 |
|
International Deposits |
13164.77 |
17333.16 |
|
Domestic Deposits |
249965.00 |
276209.02 |
|
CASA Deposits (Domestic) |
98120.03 |
104704.40 |
|
Current Account Deposits |
12091.39 |
14324.75 |
|
Savings Bank Deposits |
86028.64 |
90379.65 |
|
Domestic CASA to Domestic Deposits (%) |
39.25 |
37.91 |
|
Total Advances |
186877.05 |
219984.81 |
|
International Advances |
24604.95 |
24510.70 |
|
Domestic Advances |
162272.10 |
195474.11 |
|
Total Assets |
323691.45 |
362481.08 |
|
Net Interest Income (NII) |
8100.78 |
9630.08 |
|
Other Income |
3265.53 |
4406.63 |
|
Of which - Trading gains |
396.95 |
338.81 |
|
NII + Other Income |
11366.31 |
14036.71 |
|
Operating Profit |
4576.25 |
6037.31 |
|
Provisions other than tax |
2007.39 |
2203.74 |
|
Provision for NPAs and Bad debts written off |
1068.27 |
1632.82 |
|
Profit before Tax |
2568.85 |
3833.58 |
|
Provision for Tax# |
915.11 |
1388.59 |
|
Net Profit |
1653.74 |
2444.99 |
|
# of which DTA |
895.74 |
1335.33 |
|
Key Performance Indicators (%) |
FY 2024 |
FY 2025 |
|
Cost of Funds |
4.63 |
4.78 |
|
Yield on advances |
8.46 |
8.69 |
|
Net Interest Margin |
2.92 |
3.17 |
|
Cost-Income Ratio |
59.74 |
56.99 |
|
Capital Adequacy Ratio (CAR) |
||
|
Particulars (%) |
As on |
As on |
| Â |
31.03.2024 |
31.03.2025 |
|
Capital Adequacy Ratio Basel III |
16.98 |
18.49 |
|
CET-I |
14.14 |
16.03 |
|
Tier I |
14.54 |
16.37 |
|
Tier II |
2.44 |
2.12 |
The International Monetary Fund (IMF), in its World Economic Outlook, April 2025, has forecasted that the global growth for 2025 will decline largely due to policy shifts, escalating trade tensions and uncertainties.
The World output is expected to grow at 2.8 percent in 2025. This is a far fall from the growth of 3.3 percent of 2024. For the Advanced Economies, consisting of United States, Euro Area, Japan, United Kingdom, Canada and Other Advanced Economies, the growth rate is expected at 1.4 percent. This was 1.8 percent in 2024. For the Emerging Market and Developing Economies, for which India and China are a part, the growth rate for 2025 is expected at 3.7 percent against 4.3 percent in 2024.
Retail headline inflation moderated in all major economies in 2025 over 2024, with further reduction expected in 2026. In the United States, it is expected to reduce to 2.5 percent in 2026 from the present 3.0 percent. In Euro Area, it is expected to be 1.9 percent in 2026 from the current 2.1 percent.
The global trade dynamics are undergoing significant shifts due to geopolitical tensions, evolving trade policies and agreements, supply chain realignments, and rising protectionism. Current U.S. tariffs are straining Asian economies by disrupting supply chains and increasing economic uncertainty across the region. A softening of the tariff stance could help boost global economic confidence. However, the economic impact is already visible. The countermeasures adopted by various countries in response to the trade war are slowing down global trade, with the potential to disrupt supply chains and compel companies to rethink global production and trading strategies.
In India, retail inflation, measured by the Consumer Price Index (CPI), eased to 3.16 per cent in April 2025, down from 3.34 per cent in March 2025. The CPI-based inflation has now stayed below the Reserve Bank of India's (RBI) medium-term target of 4 per cent for the third consecutive month. This is mainly an outcome of decrease in food inflation due to robust Rabi harvest. The RBI projects India's inflation for FY 2026 at 4.0 percent.
In the wake of positive outlook on inflation and to boost growth the RBI had reduced the repo rate by 50 basis points in two tranches of 0.25 percent each in Feb-2025 and Apr-2025 to the present 6.0 percent. The RBI had also announced a reduction in the Cash Reserve Ratio (CRR) by 50 basis points to 4 percent in Dec-2025.
The RBI's decision to reduce the repo rate aims to relieve liquidity constraints and boost investor sentiment, improve financing conditions, and accelerate momentum in demand. The policy announcement is also indicative that the Central Bank is confidant in its inflation outlook and is looking towards adjusting GDP growth concerns in the background of global slowdown. Further, the MPC has also changed its stance from 'neutral' to 'accommodative', indicating its willingness to cut the interest rates in the near future and expand the money supply to stimulate the economy.
In International Trade, the cumulative exports (merchandise & services) during FY 2024-25 (Apr-24 to Mar-25) are estimated at USD
820.93    Billion, registering a Y-o-Y growth of 5.50 percent. Total imports during FY 2024-25 (Apr-24 to Mar-25) are estimated at USD 915.19 Billion registering a Y-o-Y growth of 6.85 percent. Although India has historically been a trade deficit nation, the Trade Gap has significantly reduced from a high of 19.84 Billion in Nov-24 to 3.62 Billion in March 2025. While export of merchandise and services are somewhat evenly balanced, India is largely a service exporting country with 82.22 percent of total exports being service export.
India's exports to the United States in Apr-Dec 2024 (first nine months of FY 2024-25) increased by 5.5 percent year on year to USD
59.93    Billion and total imports from the United States during the same period went up by 1.91 percent to USD 33.4 billion. India is actively negotiating a bilateral trade deal with the U.S. to avoid the impending tariffs and strengthening bilateral ties. Further, to mitigate the impact, India is also diversifying its exports markets, focusing on regions like Africa and West Asia.
The Indian banking industry has been on an upward trajectory aided by good economic growth, rising disposable incomes, increasing consumerism and easier access to credit. Indian Banks have been boosted by rising profitability and declining nonperforming assets (NPA). Banks' balance sheets are consistently improving, with multi-year low NPA ratios, higher provisioning, stronger capital positions and robust earnings. In turn, these developments are facilitating a broad-based and sustained credit expansion.
The twelve Public Sector Banks (PSBs) are positioned strongly with an average year on year growth of 9.73 percent in Domestic Deposit and 13.96 percent in Domestic Advance. RAM (Retail, Agriculture and MSME) Advance constitutes 61.48 percent of the total Domestic Advance with an annual growth rate of 17.12 percent as on March 2025. Retail advance provided the thrust with a growth rate of 27.28 percent in this period. Additionally, GNPA of the twelve PSBs have cumulatively declined by Rs.55890 crores or 16.5 percent in March 2025 over March 2024. The present position of GNPA of the twelve Bank stands at 2.84 percent of their Total Advance, which is a significant decline from 3.93 percent a year ago. With an average Provision Coverage Ratio of 95.01 percent, the PSBs are well provided for in their stressed book.
The PSBs have cumulatively earned a net profit of about Rs. 1,78,364 crore during FY25, which is a healthy rise of 26.32 percent over the previous year. Banks have also raised funds from the market to augment their resources, without depending on the Government for capital infusion. This signals good health of the PSBs and reflects strongly on their soundness and resilience.
PERFORMANCE OF UCO BANK DURING FY2024-25:1.UCO BANK'S DELIVERY CHANNELS:1.1Brick and Mortar Network:
UCO Bank has a geographically well-spread branch network in India and also has presence abroad. As of 31.03.2025, Bank has 43 Zones and 3302 domestic branches, 2 overseas branches (one each in Singapore and Hong-Kong) and 1 representative office has been established in Tehran, Iran.
The Global branch network over 5 years is as under:
|
March 2021 |
March 2022 |
March 2023 |
March 2024 |
March 2025 |
|
3089 |
3074 |
3207 |
3232 |
3304 |
1.2 Branches & Offices Network:
The population category-wise break-up of domestic branches as of 31.03.2024 & 31.03.2025 is given below:
The domestic branches include 6 Flagship corporate branches, 7 Asset Management branches, 4 service branches, 1 central pension processing center, 1 integrated treasury branch and 25 MCU branches. Apart from the above 43 Retail loan Hubs, 43 SME & Agri Loan Hubs, 12 Integrated Loan Hubs and 70 currency chests are also functioning across the country attached to the major city branches of various centers.
2.BUSINESS PROFILE:2.1. Global:
⢠   Global business of the Bank stood at Rs. 5,13,527 crore as of 31.03.2025 compared to Rs. 4,50,007 crore showing an increase of 14.12% over March 2024.
⢠   Global deposits has increased by 11.56% as of 31.03.2025 and stood at Rs. 2,93,542 crore compared to Rs. 2,63,130 crore as of 31.03.2024.
⢠   Global advances increased by 17.72% and stood at Rs. 2,19,985 crore as of 31.03.2025 compared to Rs. 1,86,877 crore as of
31.03.2024.
⢠   Overall domestic business of the Bank has increased by 14.42% and has reached Rs. 4,71,683 crore as on 31.03.2025 from Rs. 4,12,237 crore as on 31.03.2024.
⢠   Domestic deposits increased by 10.50% and stood at Rs. 2,76,209 crore as on 31.03.2025 from Rs. 2,49,965 crore as on
31.03.2024.
⢠   Domestic advance has shown a growth of 20.46% to Rs.1,95,474 crore as on 31.03.2025 from Rs. 1,62,272 crore as on
31.03.2024.
⢠   CASA deposits increased by 6.71% on Y-o-Y and stood at Rs. 1,04,705 crore, SB deposits grew by 5.06% and stood at Rs. 90,380 crore. Current deposits stood at Rs. 14,325 crore as on 31.03.2025 compared to Rs. 12,091 crore as on 31.03.2024, showing a growth of 18.47% on Y-o-Y basis. 1
Domestic Investment of the Bank during the year 2024-25 decreased by 1.22% from Rs. 92,970.05 crore as on 31.03.2024 to Rs. 91,829.79 crore as on 31.03.2025. During the year, the Non-SLR investments decreased by 4.49% which contributed to total reduction in the investment portfolio by 1.22%.
The SLR investment of the Bank has marginally increased from Rs. 66,418.16 crore as on 31.03.2024 to Rs. 66,470.16 crore as on
31.03.2025.
The Non-SLR Investment (Domestic) decreased by 4.49% from Rs. 26,551.89 crore as on 31.03.2024 to Rs. 25,359.63 crore as on 31.03.2025 mainly on account of fair value of Zero coupon Recapitalization Bonds.
During the year 2024-25, interest income (including accretion on Investment) of Rs.6257.21 crore was registered from domestic investment.
3.1 Â Â Â International Business
As on March 31,2025, the Bank's total business from Overseas Branches at Singapore and Hong Kong was Rs. 41,844 crore and constituted 8.15% of the Global Business. The Overseas Business constituted of total deposit of Rs.17,333 crore and total advances of Rs. 24,511 crore.
Our Bank with 65 B-Category branches across India is committed to actively cater to the needs of Exporters/Importers Community and also serve our NRI Customers. The total merchant turnover of the bank during the financial year ended on 31st March, 2025 stood at Rs. 58,184 crore.
4. Â Â Â SOCIAL BANKING4.1 Â Â Â Agriculture
Agriculture Credit of the Bank grew at 20.02% annually from Rs. 24,641 crore as on 31.03.2024 to Rs. 29,575 crore as on
31.03.2025. Â Â Â The details are as under:
|
(Rs. in crore) |
|||
|
Agriculture |
31.03.2024 |
31.03.2025 |
YoY Growth % |
|
Crop Loans |
92221 |
11185 |
21.28 |
|
Investment Credit |
6382 |
8360 |
30.99 |
|
Agriculture Allied |
5812 |
6276 |
7.98 |
|
Infrastructure & Ancillary |
3225 |
3754 |
16.40 |
|
Total Agriculture |
24641 |
29575 |
20.02 |
|
*IBPC of Rs.1000 Cr. issued by us. |
 | ||
2 Performance under Priority Sector Advances vis-a-vis stipulated targets of RBI in FY 2024-25
UCO Bank has shown significant improvement in performance in lending to Priority Sector over the years and is effectively serving
the priority sector and agriculture sector with its vast network of rural and semi-urban branches.
⢠   As on 31.03.2025, the Priority Sector Advances (including investments & PSLC) of the Bank stood at Rs. 87,769 crore which constituted 51.68% of ANBC as against the mandatory target of 40%.
⢠   Total Agriculture Advances (including investments & PSLC) under priority sector of the Bank stood at Rs. 30,965 crore which constituted 18.23% of ANBC as against the mandatory target of 18%.
⢠   Lending to Small & Marginal Farmers (including PSLC) stood at Rs. 17,367 crore as on 31.03.2025 which constituted 10.23% of ANBC as against the mandatory target of 10%.
⢠   Lending to Non-Corporate Farmers stood at Rs. 25,101 crore as on 31.03.2025 which constituted 14.78% of ANBC as against the mandatory target of 13.78%. 2
⢠   Lending to weaker sections stood at Rs. 24,142 crore as on 31.03.2025 which constituted 14.21% of ANBC as against the mandatory target of 12.00%.
UCO Bank is the convenor of State Level Bankers Committee (SLBC) in 2 States i.e. Odisha & Himachal Pradesh. Bank also shoulders the Lead Bank responsibility in 36 districts across the country.
The Bank has moved beyond granting simple farm based credit to a more diversified rural lending strategy. We are focussing more on newly introduced products such as Agriculture Infrastructure Fund (AIF), Animal Husbandry Infrastructure Development Fund (AHIDF) PM Formalisation of Micro Food Processing (PMFME), Food & Agro Processing etc. We have launched Nari Samriddhi Scheme aiming for financing individual members of Self Help Groups.
The Bank continues to focus on its flagship products like KCC, Agri Gold Loans, Horticulture Loans, Financing to Self Help Groups (SHGs). Bank has digitised KCC renewal up to Rs. 2 lac.
4.3 Credit Flow to Self Help Groups:
⢠   The concept of Self-Help Groups (SHGs) has significantly contributed to women's empowerment by fostering financial independence and enhancing their participation in community decision-making. Lending to Self-Help Groups presents an excellent opportunity to promote micro-enterprises in rural areas, leading to increased employment generation and, in turn, higher income for the rural population.
⢠   The advent of Self Help Groups (SHGs) concept has ensured seamless delivery of credit to the poor and has boosted the rural economy. Bank has actively promoted SHG Bank Linkages.
⢠   The outstanding credit to SHGs stood at 4,158 crore covering 1.79 lakh SHGs as on March'25 and registering annual growth of 29.53%.
5. Â Â Â REGIONAL RURAL BANKS (RRBs)
UCO Bank sponsored RRB namely, Paschim Banga Gramin Bank (PBGB) is head quartered at Howrah, West Bengal with four regional offices and 230 branches as on 31.03.2025.
5.1 Â Â Â Capital position of RRB - Paschim Banga Gramin Bank
The total capital of Paschim Banga Gramin Bank as on 31.03.2025 stood at Rs. 682.86 crore comprising Rs. 341.43 crore from Govt. of India, Rs. 239 crore from UCO Bank (as sponsor Bank) & Rs. 102.43 crore from West Bengal State Govt.
5.2 Â Â Â Performance of Paschim Banga Gramin Bank during FY2024-25
As per audited financial results, total deposit of Paschim Banga Gramin Bank stood at Rs. 7,295 crore as on 31.03.2025, registering growth of 5.63%. Total advance reached a level of Rs. 4,415 crore with an annual growth of 6.41% as on 31.03.2025. CD ratio stood at 60.52% as on 31.03.2025 as against 60.08% on 31.03.2024.
The Gross NPA stood at Rs. 343.03 crore as on 31.03.2025 vis-a-vis Rs. 339.31 crore as on 31.03.2024. Gross NPA to Gross Advance stood at 7.77% as on 31.03.2025 as against 8.18% as of 31.03.2024. Net NPA stood at Rs.0.00 crore as on 31.03.2025 visa-vis Rs. 31.75 crore as on 31.03.2024. Net NPA ratio of the RRB stood at 0.00% as on 31.03.2025 as against 0.83% as of
31.03.2024.
Paschim Banga Gramin Bank has recorded a net profit of Rs.63.55 crore as on 31.03.2025 as compared to net profit of Rs. 50.65 crore as on 31.03.2024, thereby decreasing accumulated loss from Rs. 408.81 crore as on 31.03.2024 to Rs.357.26 crore as on
31.03.2025.
6. Â Â Â Corporate Social Responsibility
Bank has taken several programmes/initiatives as a part of Corporate Social Responsibility. Few of these programmes/initiatives are as under:
a) Our Bank has set up 27 Rural Self Employment Training Institutes in 7 states namely Assam, Bihar, Himachal Pradesh, Odisha, Punjab, Rajasthan and West Bengal. These 27 institutes with dedicated infrastructure are devoted to impart training and skill up gradation and to mitigate the unemployment and under employment of rural youths. These institutes are set up by the Bank as a part of initiative taken up by the Ministry of Rural Development to establish dedicated training Institutions for development of entrepreneurship skills in rural youth, under Corporate Social Responsibility (CSR). All RSETIs conducted 979 training programmes involving 30,016 candidates and 12,933 beneficiaries have been provided Credit Linkage of Rs. 47.70 crore during the Financial Year 2024-25.
b)    As of 31.03.2025, Bank has set up 127 CFLs with collaboration of NGO identified by RBI namely M/s Swadhar Finassess , CRISIL foundation, Dhan Foundation, Aroh Foundation, HPSRLM, Swadhar Fin Assess Foundation, Gram Sathi, Awoke India, M/s Mother, M/s Aravali in the state of Assam, Bihar, Odisha, Punjab, Rajasthan, West Bengal and Himachal Pradesh. All CFLs collectively conducted 61,889 camps involving 22,59,988 participants and 1,53,389 beneficiaries have been provided with Bank Linkage.
c)    Bank has 35 Financial Literacy Centres across the country wherein 13 Financial Literacy Counsellors conduct Financial Literacy Camps. During Financial Year 2024-25, the Financial Literacy Counsellors have conducted 2,418 Financial Literacy Camps thereby spreading Financial Awareness to 91,859 participants as of 31st March 2025.
7. FINANCIAL INCLUSION7.1 Â Â Â Pradhan Mantri Jan Dhan Yojna (PMJDY)
Bank has been allotted with 16,281 villages across the country to provide inclusive Banking Facility in unbanked/under banked areas. In line with DFS directives these villages were categorized into 4122 Sub Service Areas (SSAs). Out of these 4,122 SSAs, 3656 SSAs are covered though BC agents and 466 SSAs in tier 5 villages (Population above 5000) are covered through Branches for ensuring universal Financial Inclusion and to bring the entire population under ambit of structured Banking facility.
Bank has added 845 Bank Mitras making the total BC deployment to 10,653 of BCs till now. During FY 2024-25 total 333.55 lacs transactions amounting Rs.13,080.80 Crores (averaging every month about 27.80 lacs transactions amounting Rs. 1,090.07Â Crores) carried out through Micro ATMs used by BC Agents.
Bank has garnered deposit of Rs. 6,060.54 crore at the end of March 25 in 149.24 lakhs PMJDY accounts registering 1.30% growth in PMJDY saving deposit and 9.55% growth in PMJDY account opening. The average per account balance under PMJDY accounts was Rs. 4067 for the FY 2024-25. Bank has opened 12.34 lacs PMJDY accounts during FY 2024-25.
We have distributed around 58.29 lacs RuPay Cards to the eligible PMJDY account holders. During the FY 2024-25 average transactions per month to the order of 1.00 lacs took place through Rupay Cards on Micro ATMs used by BC agents amounting monthly average of Rs. 47.84 crore.
7.2 Â Â Â Aadhaar Seeding & Authentication
As per revised UIDAI guidelines, Aadhaar number can be given voluntarily as identity proof for opening customer accounts. Aadhaar is required for availing benefits under various government welfare schemes. By 31st March 2025, around 92% operative saving accounts have been seeded with Aadhaar number and Aadhaar authentication has been done in 59% of operative saving accounts.
7.3 Â Â Â Micro credit-Overdraft facility
Number of PMJDY accounts using the OD facility in the bank as on March 2025 is 3.72 Lakhs aggregating sanctioned amount of Rs. 75.38 crores. As per Finance Minister's budget announcement (FY 2020-21), an overdraft of Rs. 5000/- is allowed to verified women SHG member in their PMJDY Accounts.
7.4 Â Â Â Social Security Schemes
Working on the Government's theme of providing social security to hitherto unbanked masses, Bank has implemented Insurance and Pension products namely, Pradhan Mantri Jeevan Jyoti Bima Yojna (PMJJBY), Pradhan Mantri Suraksha Bima Yojna (PMSBY), Atal Pension Yojna (APY) through its Branch and BC network. Under PMJJBY scheme, 28.02 lakh subscribers availed life insurance of Rs. 2 lakhs and under PMSBY scheme 63.23 lakh customers availed accidental insurance of Rs. 2 Lakh. So far, a total of 15738 claims are settled under PMJJBY and 2575 claims are settled under PMSBY. Further, total subscribers under Atal Pension Yojana (APY) crossed 12.89 lac till end of FY 24-25. During FY 24-25 1.78 lakh customers have been added to APY Fold with Y-to-Y growth of 16.02%.
7.5 Â Â Â PMJJBY and PMSBY enrolment through M-Banking, e-Banking, SMS:
Electronic mode of enrolment of PMJJBY and PMSBY is also available during FY 24-25 in UCO E-Banking and UCO m banking app. Enrolment of PMJJBY & PMSBY was made available through SMS facility, in which, customers can self-enrol by sending SMS from their registered mobile numbers. Incentive for digital self-enrolment is being passed on to the customers by the way of reduced premium.
PMJJBY and PMSBY enrolment through Jansuraksha Portal: During Last FY all claims regarding the PMJJBY & PMSBY was made live in the Jansuraksha Portal.
7.6 Â Â Â DFS Target and Achievement
a)    Saturation Drive under PMJSS (Pradhan Mantri Jan Suraskha Schemes, i.e. PMJJBY, PMSBY, APY): In the backdrop of honourable Prime Minister's Independence Day speech 2021, Department of Financial Services (DFS) directed Banks (vide their Office Memorandum no. F.no.21(23)/2014-FI (Mission) dated 27-09-2021) to implement Saturation Drive for PMJDY account opening & Jansuraksha Schemes to connect every eligible person with the Government's Insurance and Pension scheme.
b)    Saturation Drive in PMJDY Account: The target of opening 9.50 lakhs PMJDY accounts has been given by DFS to be achieved during FY 2024-25. We have achieved 12.34 lakh with an achievement of 130% of the target.
7.7 Â Â Â Progress in Aspirational Districts
With a view to enhance the penetration of Financial Inclusion in the Aspirational Districts, Department of Financial Services (DFS) launched Targeted Financial Inclusion Intervention Programme (TFIIP) in January 2020 in 40 ADs and extended it to all 112 Aspirational Districts (ADs) in February 2021. Our Bank has been allotted 7 districts namely Begusarai, Goalpara, Barpeta, Dhubri, Banka, Dhenkanal, Darrang. Some of the key facts related to Aspirational Districts allotted to us have been given below:
⢠   Darrang, Goalpara & Dhubri District(s) of Assam State are among the top performers (since inception of programme) under Financial Inclusion & Skill Development theme in the champions of change Dashboard started by NITI Aayog to monitor the progress in the Aspirational Districts.
7.8 Â Â Â Implementation of Aspirational Block Program (ABP) in 500 identified Blocks of the country
Prime Minister on 07th January, 2023 launched Aspirational Block Programme (ABP) on the lines of the Aspirational District Programme, which is aimed at improving performance of blocks lagging on various development parameters. The programme plays emphasis on improving the socio-economic conditions of these backward blocks. Aspirational Block Programme is started in 500 blocks of the country with approach of reaching the last mile and policy of saturation. It will initially cover 500 blocks across 31 states and Union Territories, with over half of these blocks located in six states - Uttar Pradesh, Bihar, Madhya Pradesh, Jharkhand, Odisha and West Bengal.
As intimated by DFS, the provisional Key Performance Indicators (KPIs) for ABP is as below:
⢠   No. of banking outlet (branch/BC/IPPB) located in the block
⢠   No. of villages in the block not covered by a banking outlet within 5 km
7.9 Â Â Â On boarding of 10600 BCs
We have appointed 845 BCs in under banked and unbanked areas in FY 2025. We are now having BC force of 10,653 as of 31st March 2025.
7.10 Â Â Â Aadhaar Enrolment Centre
A total no of 300 Aadhaar Enrolment centers has been set up covering 10% of the branches as per UIDAI guidelines in our Bank. Bank has outsourced the Aadhaar Operator activity to Corporate BCs in order to create efficient operation of AECs and optimum use of Bank's staff.
7.11 Â Â Â Revenue generated through Financial Inclusion Project
Consistent, efforts under Financial Inclusion have given good results and Bank has started gaining both tangible and intangible benefit out of these activities. While decongestion of branches, reduction of transaction cost and increase in CASA base are intangible benefits of FI Project. Tangible benefits have come in the form of commission earned under various products. Bank has earned Rs. 606.63 lacs in PMJJBY, Rs. 17.35 lacs in PMSBY and Rs. 284.08 lacs in APY as commission during FY-2024-25.
Government Business cell handles Small savings Deposit Scheme of GOI, collection of Direct and Indirect Taxes, Floating Rate Savings Bonds, Central and state Government Pension, National Social Security Scheme (NPS).
There was an increase in total account base under Public Provident Fund(PPF) from 1,58,544 on 31.03.2024 to 1,70,991 as on 31.03.2025 registering 7.85% Y-o-Y growth and in Sukanya Samriddhi Yojna (SSY) from 1,33,065 as on 31.03.2024 to 1,49,869 as on 31.03.2025 registering 12.62% Y-o-Y growth.
Bank gives emphasis to promote Govt. Business product to increase fee based income. Turnover Commission of Rs. 24.00 crore approximately earned in FY 2024-25 from various Government Business products I.e. Tax collection, Pension, Small Savings Scheme, APY, Bond Issuance etc. Business performance has also been improved under Govt. Business products substantially.
9. MSME9.1 Initiatives undertaken by Bank for MSME Business Growth during FY 2024-25:
a.Introduced 34 Loan Processing Hubs (SME and Agri Hub/Integrated Loan Hub) across the country to improve credit underwriting. Now, 55 Loan Processing Hubs (SME and Agri Hub/Integrated Loan Hub) are operational.
|
Impact of operationalization of Hubs |
||||
| Â |
Sanction by Hubs |
Sanction by Hubs |
Growth Impact |
|
| Â |
FY 23-24 |
FY 24-25 |
Amount |
% |
| Â |
Rs. 7,391 |
Rs. 11,178 |
Rs. 3,787 |
51% |
b.    Introduced 11 new MSME loan schemes in line with peer Banks to cater diverse financial needs of MSME customers and to drive MSME Business growth.
i. Â Â Â UCO Arhatiyas
ii. Â Â Â UCO Rice Shellers
iii. Â Â Â UCO MSME Office
iv. Â Â Â UCO Abhinandan
v. Â Â Â UCO Trade Advantage
vi. Â Â Â Mukhyamantri Yuva Udyami Vikas Abhiyan (CM-YUVA) [Uttar Pradesh State]
vii. Â Â Â UCO MSME Nari Samman
viii. Â Â Â UCO MSME Yuva Shakti
ix. Â Â Â UCO PM Surya Ghar Vyaapar Yojana
c. Â Â Â Introduction of 2 digital loan schemes
I. Â Â Â UCO GST Smart Finance
II. Â Â Â MSME Smart Finance
d.    Bank has centrally generated around 2 Lacs Udyam Registration Number through Udyam Assist Portal which has helped in formalization of 2 Lacs Informal Micro Enterprises.
e. Â Â Â Bank has identified "Tourism and Hospitality" Industry as champion sector.
f.    Bank has Signed MoU with PSB Alliance Private Limited for leveraging Digital Platform of Veefin Solutions for streamlined Supply Chain Finance (SCF) operations and on-boarding corporates on SCF Digital platform.
9.2Impact of Initiatives undertaken by Bank on MSME Business Growth:
⢠MSME business has grown by Rs. 6,070 crore, to Rs. 38,783 as on March 2025, registering a Y-o-Y growth of 18.55%.
⢠During FY 2024-25, for the first time total MSME loan sanction crossed Rs. 11,000 crore.
⢠   Average daily MSME Loan sanction has improved to Rs. 31 crore in FY 24-25 as compared to Rs. 20 crore in FY 23-24.
⢠   Average ticket size of MSME Loan sanction has increased to Rs. 13.95 Lacs in FY 24-25 as compared to Rs. 5.62 Lacs in FY 2324. Resultantly, average ticket size of MSME Loan sanction has improved to 2.48 times. 3
⢠   15 Hubs [SME and Agri Hubs (12) and Integrated Loan Hubs (3)] have achieved MSME sanction target of FY 2024-25.
⢠   Rs. 3,000 Crores MSME Loan sanctioned in fortnightly "MSME and Agri Carnival" campaign held from 12/02/2025 to 25/03/2025 (42 Days).
⢠   2,671 Digital MSME Loans amounting to Rs. 198 Crores sanctioned in FY 24-25.
|
Performance under Digital MSME Loans (Status on 31.03.2025) |
||
| Â |
(Amt in |
Rs. crore) |
|
Particulars |
No |
Amount |
|
STP Shishu Mudra |
1211 |
6 |
|
UCO GST Smart Finance |
1368 |
180 |
|
UCO MSME Smart Finance |
92 |
12 |
|
Digital MSME Loans |
2671 |
198 |
⢠   UCO Bank's Retail Loan portfolio has increased at an impressive 35.09 percent Y-o-Y to Rs. 54,255 crore in March 2025.
⢠   Year on Year growth in Home Loan portfolio stands at 18.13 percent, Vehicle Loan at 58.99 percent and Personal Loan at 46.30 percent as on March 2025.
⢠   Retail loan portfolio constitutes 27.75 percent of the bank's total domestic advances.
10.1    STP Journey Introduced By The Bank: In order to implement customer engagement and drive business growth under retail loan segment the bank has introduced following STP journeys in FY 2024-25:
⢠   Pre-qualified personal loans - This is a personal loan scheme provided to the eligible customer on the basis of their transaction history in savings accounts.
⢠   Introduction of STP education Loan - UCO Utkarsh (male student) & UCO Udaan (female student), customer's journey for availing education loan under the aforementioned schemes should be easy and readily available in electronic platforms.
⢠   Introduction of select plus which is a personal loan for asset customers who are having good track record.
10.2 Â Â Â Introduction Of New Retail Loan Schemes:
⢠   Udaan" Scheme was launched with the objective of providing financial support from the banking system to meritorious female students at preferential terms, who have secured admissions in Premier Educational Institutes . 4
10.4 Â Â Â Enablers Provided For Increasing The Growth In Retail Portfolio:
⢠   100 percent waiver in processing charges in home loan and car loans and 100% waiver in documentation charge in car loan was provided till 31.03.2024.
⢠   Modifications in PSVR 2 guidelines for salaried class.
10.5 Â Â Â Launch of Business Campaign
⢠   Shubharambh and Monsoon Magic were also launched during the first half year of FY 2024-25 to boost sanctions under Home and Car Loans
⢠   Teevra Campaign to boost car loans during the first quarter of FY 2024-25.
⢠   UCO UTSAV Campaign aims to boost sanctions under Home & Car loans schemes during the period from 01.10.2024 to
30.12.2024.
⢠   UCO premier league campaign aims to boost sanctions under Home & Car loans schemes during the period from 21.10.2024 to
07.12.2024.
⢠   UCO project was launched to enhance the number of project approvals to increase sanctions under home loans and improve TAT and ticket size during the period from 20.11.2024 to 31.12.2024.
⢠   UCO Premier League-T20 (UPL-T20) - To boost Home Loan & Car Loan sanctions a campaign has been launched from 16.12.2024 to 11.02.2025.
A dedicated Resources Vertical was launched on 23rd Aug 2023 to focus on mobilization of CASA & term deposits. In which three cells was created i.e. Savings, Current & Govt. Deposit. The Vertical is headed by GM & the cells are headed by DGMs.
11.1 Â Â Â Key Accomplishments:
⢠   Current Deposit has grown at 18.47% (Y-O-Y).
⢠   Savings Deposit has grown at 5.06% (Y-O-Y).
⢠   CASA Deposit has grown at 6.71% (Y-O-Y).
⢠   Term Deposit has grown at 12.95% (Y-O-Y).
⢠   Total Deposit has grown at 11.56% (Y-O-Y).
11.2 Â Â Â Initiatives taken by Resource Department in FY2024-25:
⢠   Introduction of Saving Account Products 'UCO Shaurya' & 'UCO Shoorveer' for defence and paramilitary forces.
⢠   Introduction of Tiered Savings Products: UCO Unique, UCO Royal, & UCO Privilege.
⢠   Introduction of 'UCO Asha' pension scheme.
⢠   UCO Saathi' current account scheme for co-operative banks/ RRBs.
⢠   'UCO Pink Basket' offered for female customers which includes:
> Â Â Â 'UCO Aparajita' Savings Scheme for women customers.
> Â Â Â 'UCO Jaya Lakshmi' Current Account Scheme for women customers.
> Â Â Â 'UCO Sanchayika' RD scheme for women customers.
⢠   Introduction of 'UCO NSCCL E-FDR' for clearing members of NCL.
⢠   Introduction of 'UCO Green Deposits' FD scheme in line with RBI guidelines on Green Deposit Policy.
⢠   'UCO 333' Special Deposit Scheme for 333 days with attractive ROI has been introduced for a limited period till 31.12.2024. Rs. 8,094 crore term deposit has been mobilized under 'UCO 333'.
⢠   'UCO Connect' programme for strengthening customer relationship with thrust area on conversion of inoperative account.
⢠   Board approval obtained for Enrolment of UCO Bank as a Clearing Bank of the Clearing Corporations such as NCL, ICCL, MCXCCL, etc. for clearing & settlement purpose, Upstream & Downstream current accounts, etc. It will help to expand our liability business portfolio through diversified products/ services.
⢠   Offering Cash Management Solution (CMS) for corporate/ commercial deposit customers to make our bank especially sticky and increase share of wallet. Direct Debit Facility for NBFCs is already live and functional.
⢠   Launched Campaign 'Josh-RD' for recurring deposit mobilisation.
⢠   Launched Campaign "Mission Sheersh" from 11.11.2024 to 21.12.2024 with an objective to mobilise CASA from New Onboarding.
⢠   Launched Campaign "Winter Carnival" from 24.12.2024 to 31.12.2024 with an objective to mobilise CASA.
11.4 Â Â Â Tie up/Agreement initiative and Integration arrangements with other institutions:
⢠   MOU signed with reputed PSUs for Salary Tie up and for Collection and payment.
⢠   Integration for payment gateway with Government owned companies for online bill/fund collection and payment using virtual account number (VAN) for their clients.
⢠   Integration for offline bill collection for consumers of reputed companies.
⢠   Approval obtained for Host to Host API payment Integration with reputed public sector undertaking.
12. MARKETING AND WEALTH MANAGEMENT12.1 Marketing
The Marketing activities of the Bank eyes at increasing the mobilization of new business, promotion of different products of the Bank and to maintain the brand value of the Bank among the customers. Lead generation and business mobilization being taken up by the Department.
a) Â Â Â Sales Force Team (SFT):
Introduction of Sales Team was done in FY 2022-23 revamping the erstwhile Marketing Team structure with higher number of staff strength in different centres. Different Sales Force Teams were created for Home loan, Other Retail loans and MSME Loans with separate KRAs for separate portfolios. In FY 2024-25, Rs. 4,304 crore has been sanctioned through the leads generated by Sales Team Members.
b) Â Â Â Direct Selling Agents (DSA):
Engagement of Direct Selling Agents (DSA) was introduced in FY 2022-23. In FY 2024-25, total sanctioned amount sourced by DSAs under Home loan is Rs. 3,644.54 crore, Car Loan Rs. 838.15 crore and loan canvassed from Retired Staff DSA is Rs. 129.13 crore, totalling Rs. 4,611.82 crore and registering 57% of YOY growth in overall DSA sanctioned amount from the previous Financial Year.
c) Â Â Â Tie up with Car Manufacturing Companies to present UCO Bank as their preferred Financer:
Integration of our Bank's Loan processing system in the digital platform of Maruti Suzuki India Ltd for easy and quick digital lending has been done and Loans are being sanctioned directly through end to end digital process. During the last financial year 2024-25 more than 1500 car loan sanctioned through the leads generated from this portal. In the same line, agreement has also been done with M/S Mahindra and Mahindra for digital car loan leads to enhance our car loan segment. Integration has also started for the same.
In addition to that bank has tied up with different car companies (Mahindra & Mahindra, Toyota Kirloskar Motors Pvt. Ltd., Tata Motors Passenger Vehicle Ltd., Maruti Suzuki India Ltd.) to promote our Bank as the preferred Financer to the Car Purchasers. Also, various joint activities were organized with these companies across the country to develop a strong relationship between our branches and the car dealers/outlets for generating handsome business for the bank.
Bank is having its indigenous Lead Generation Management System (LGMS) and Customers having interest in different products of UCO Bank can register their requirements through SMS/ Missed Call/ Website/ ChatBot/ Whatsapp etc. Outbound calls (cold calling) are also done by our call centre agents too, for Lead generation of different products. The generated Leads from various channels were tracked, monitored and disposed via indigenous Lead generation management system of the Bank.
|
12.2 Wealth Management & Credit Card: |
|||
|
Business Done under Wealth Management |
|||
|
Business done in Bancassurance (2024-25) (in Rs. lacs) |
|||
|
Name of the Company |
Premium Collected |
Commission Earned |
NOP |
|
LIC of India |
3032.29 |
137.51 |
832 (NB) |
|
SBI Life Insurance Co. Ltd |
44596.82 |
2890.90 |
74,473 |
|
ICICI Prudential Life Insurance Co. Ltd |
11569.30 |
1938.32 |
9,080 |
|
Care Health Insurance Co. Ltd |
1627.65 |
255.08 |
71,435 |
|
Star Health & Allied Insurance Co. Ltd |
911.60 |
137.99 |
11,736 |
|
Aditya Birla Health Insurance Co. Ltd |
497.54 |
81.27 |
31,177 |
|
Future Generali Insurance Co. Ltd |
4613.10 |
583.73 |
2,03,657 |
|
Oriental Insurance Co. Ltd |
250.29 |
42.83 |
14,047 |
|
SBI General Insurance Co. Ltd |
933.08 |
136.40 |
53,231 |
|
Sub- Total |
68031.67 |
6204.03 |
4,69,668 |
|
Business Done in Mutual Fund & Broking (Rs. In Lacs) |
|||
|
Wealth management Business (MF/SIP, Broking, Demat, NPS, AIF, PMS, ASBAIPO) |
 |
197.00 |
 |
|
Business Done in Credit Card (Rs. In Lacs) |
|||
|
Commission earned |
NA |
262.00 |
 |
|
Total Commission Earned |
 |
6663.03 |
 |
⢠   Bank is Corporate agent of Insurance Companies for Soliciting Insurance Business for life, General and Health Segment.
⢠   Bank has 3 channel partners in each segment of Insurance and 9 Channel partners in total.
Present Partners under corporate agency arrangement:
⢠   Life insurance - Life Insurance Corporation of India, SBI Life Insurance Co. Ltd. and ICICI prudential life Insurance Co. Ltd.
⢠   General Insurance - The Oriental Insurance Co. Ltd., Future Generali India Insurance Co. Ltd. and SBI General Insurance Company Ltd.
⢠   Health Insurance - Star Health & Allied Insurance Co. Ltd., Care Health Insurance Ltd. and Aditya Birla Health Insurance Co. Ltd.
For group Credit life, Bank is having tie-up arrangement with Kotak Mahindra Life Insurance Company Ltd. & ICICI prudential life Insurance Co. Ltd. to cover Life risk of Home, education and other retail loan borrowers. 5
⢠   Bank has taken the initiative for Digital platform for insurance for end-to-end seamless digital mode of sourcing proposal and payment of premium resulting in reducing policy issuance TAT and also better control on the business sourced through our Bank.
⢠   142 Health checkup camps & 45 voluntary blood donation camps have been organized by our health insurance channel partners across our bank branches and Offices.
Bank is having arrangements with the Fintech partner Fisdom for providing Wealth Management services to the customers, through referral mode. Bank is also having tie-up with Aditya Birla Money limited for providing trading facility to the de-mat account holders of the Bank.
Bank is providing Credit Card facility to its customer on referral basis with SBI cards and payment services limited. List of preapproved customers eligible for availing different type of cards are provided to branches. These customers are approached and final card issuance is done by SBI Card after getting consent & necessary documents from the customers. Commission is earned on issuance, renewal of cards and on usage of the Cards.
Bank is actively promoting Door Step Banking initiative taken by PSB Alliance. During the FY 2024-25 numbers of campaigns were launched by PSB Alliance. Bank is providing door step services from 1242 designated branches in the country. Facilities like 15G/H collection, Life certificate collection, delivery of account statement, Cheque Book, Draft, pay order and other important services are being provided through DSB.
Bank's recovery mechanism is also geared up at all levels of the organization and Recovery Department has adopted following strategies to maximise recovery.
⢠   Initiating timely SARFAESI action and sale of assets through SARFAESI with utilization of BAANKNET (e-Bikray) platform and LMS. Steps taken for getting DM permission for physical possession of mortgaged properties to improve success rate of e-auction.
⢠   Utilization of Enforcement Agents / Recovery Agents for liaison with Magistrates for physical possession of property and to ensure that all actions are carried out in a time bound manner.
⢠   Filing of DRT suits, Civil suit & suit u/s 138 of NI Act.
⢠   Utilization of Detective Agencies to trace out absconding Borrowers and Guarantors as well as for unearthing personal properties in the name of borrowers/guarantors and attaching the properties through DRT in eligible cases. 6
⢠   Declaration of Wilful Default.
⢠   Contacting KCC borrowers by early morning field visit
⢠   Contacting NPA borrowers through Robocall for recovery through compromise.
⢠   Holding Mega Recovery camps at regular intervals.
⢠   Regular review of Zones, high NPA branches and AMBs.
The details of GNPA, NNPA, Cash Recovery and upgradation for the last three years are as under.
|
(Amt in crore) |
|||
|
Particulars |
31.03.2023 |
31.03.2024 |
31.03.2025 |
| Â |
(Audited) |
(Audited) |
(Audited) |
|
Cash Recovery |
1354.10 |
740.08 |
702.06 |
|
Up gradation |
678.13 |
657.54 |
524.52 |
|
Total |
2032.23 |
1397.62 |
1226.58 |
|
Recovery in Technical Written off accounts |
1613.42 |
1475.38 |
2630.61 |
|
Gross NPA |
7726.46 |
6463.31 |
5918.54 |
|
Gross NPA % |
4.78% |
3.46% |
2.69% |
|
Net NPA |
2018.02 |
1621.65 |
1068.31 |
|
Net NPA % |
1.29% |
0.89% |
0.50% |
The total cash recovery and upgradation for the year ended 31st March, 2025 is Rs. 1226.58 crore as against Rs. 1397.62
crore for the year ended 31st March, 2024.
The cash recovery in technically written-off accounts is Rs. 2630.61 crore for the year ended 31st March, 2025 compared to Rs
1475.38 crore for the previous year. Recovery in Loss and Written Off assets has a direct impact upon the profitability hence Bank
is giving priority in monitoring / follow-up for recovery in such accounts.
13.1 Â Â Â Recovery initiatives:
⢠   Bank had implemented new Non-Discretionary & Non-Discriminatory Special One Time Settlement Scheme named "Lakshya Rin Mukti" from 1 st July'2024 for settlement of NPAs & ML (PWO) Accounts with outstanding ledger balance up to Rs. 50.00 Lac as on 30.06.2024 under Doubtful, Loss, TWO and ML category. The extended period of validity of the scheme shall be 30.06.2025. 7
⢠   Dashboard: Bank has launched one Dedicated Dashboard for better Credit Monitoring at all level.
⢠   Probable NPA Dashboard: Live Credits is available in Dashboard which will help to reduce SMA upto a larger extent.
⢠   A new report "Monitoring Daily NPA" at Credit Monitoring Dash Board has been made available to tackle daily NPA run.
⢠   The Dashboard provides a detailed picture of the Retail portfolio of the Bank with below mentioned reports :
> Â Â Â Geographical distribution
> Â Â Â Bucket-wise Advance
> Â Â Â Trend in movement of Advance
> Â Â Â Special Mention Accounts (on daily basis)
> Â Â Â Spurt In Advance
> Â Â Â Sanctioning of Frequent TODs
> Â Â Â NACH/ SI failed
> Â Â Â Upcoming Monthly Demands
> Â Â Â Upcoming Review-Renewal
> Â Â Â Upcoming Stock/BD Dues
> Â Â Â Demand Loans Due
⢠   Various collection actions viz. Auto E-mail/SMS, IVR Calls, Call Centre Calls, Branch Calls and Branch officials' visits are being made in order to improve the collection efficiency in accounts.
⢠   As a part of stressed asset management, default assets of Rs. 5 crore and above weekly reporting done to RBI at Central Repository of Information on Large Credit (CRILC) platform and monitored on daily basis.
⢠   NPA Tracker through mobile application has been introduced for monitoring stressed and NPA accounts at base level.
14.2 To improve upon functioning at the grass root level, bank has devised following strategic policy and guidelines:
a)    Operational guidelines for Credit Monitoring for FY 2024-25 and FY 2025-26 has been updated and put in place after obtaining approval of the members of Board of Directors.
b) Â Â Â Policy for empanelment of TEV consultants for FY 2024-25 and FY 2025-26 has been revised and put in place.
c) Guidelines for empanelment and appointment of Stock & Book Debt auditors for FY 2024-25 and FY 2025-26 has been revised and
put in place.
d)    Policy for empanelment of valuers for FY 2024-25 and FY 2025-26 for the properties offered as securities, both primary and collateral while processing of credit facility has been revised and put in place.
e)    Policy for Engagement of Agencies for Specialized Monitoring for FY 2024-25 and FY 2025-26 and effective monitoring of Large Borrowal accounts with exposure above Rs 250.00 Crores has been revised after obtaining approval of the Board.
f) Â Â Â Policy on Resolution of Stressed Assets under Prudential Framework and Master Guidelines for Restructuring of Advances for FYÂ 2024-25 & 2025-26 (For 2 years) has been revised after obtaining approval of the Board.
g)    Stressed accounts of Rs 5.00 Cr and above was directly monitored by High Power Committee (HPC), headed by Executive Director (ED) on monthly basis.
Risk is an integral part of the Banking business and the Bank aim to achieve the corporate goal by appropriate trade-off between Risk and Returns. Risk Management at Bank includes risk identification, risk assessment, risk measurement and risk mitigation, with its main objective being to minimise the negative impact on profitability and capital.
Bank is exposed to various risks that are inherent part of any banking business. The major risks are Credit Risk, Market Risk, Liquidity Risk and Operational Risk.
To ensure sustainable and consistent growth, Bank has framed a sound risk Management framework so that the risks assumed by the Bank are properly assessed and monitored. All the products, processes and policies are routed through the various Executive Level Risk Committees (Credit Risk Management Committee, Operational Risk Management Committee, Asset Liability Management Committee and Market Risk Management Committee) and the Risk Management Committee of the Board (RMCB) before being approved by the Board of Directors. The Bank has on-boarded a Risk Advisor, Who has rich experience in Regulatory as well as in Risk Management area.
15.1 Â Â Â Credit Risk Management
Credit risk is managed through a Board approved framework that sets out policies, procedures and reporting which is in line with best practices. Bank has a strong credit appraisal and risk management framework for identification, measurement, monitoring and control of the risks in credit exposures.
The Bank has put in place prudential caps across industries, sectors and borrowers with an objective to build a resilient portfolio and de-risk from portfolio concentration. The Bank also assesses risks associated with various Countries, State Governments, Group Borrowers etc. and setting exposure caps. As a part of enhanced exposure monitoring, quarterly reviews are carried out for the Bank's key exposures, segments, industries and sectors. A dedicated Credit Risk Management Cell tracks internal & external developments to assess impact on the portfolio performance and recommend pro-active remedial actions.
Adequate attention is given to the independence of the risk evaluators and business functions for establishing a sound credit culture and a well-structured credit approval process.
The Bank has made computation of 'Risk Adjusted Return on Capital (RAROC)' for all credit proposals of Rs.1.00 Crore and above mandatory, other than retail schematic loans for prudent use of Capital in terms of Return and addition of economic value to the stakeholders.
In order to ensure independent risk based assessment of credit proposals, Bank through its Credit Risk Evaluation Process, classifies borrower into low/medium/high risk.
15.2 Â Â Â Operational Risk Management
Bank has put in place Operational Risk Management Framework (ORMF) for effective management of Operational Risk. Operational Risk Management Framework comprises of the organizational structure for management of Operational Risk, governance structures, polices, procedures and processes whereas Operational Risk Management System consists of the system used by the Bank in identifying, measuring, monitoring, controlling and mitigating Operational Risk.
The Bank has created a repository of Internal Loss Data as part of Operational Risk Management. Root Cause Analysis for the various loss events is being carried to strengthen the control environment and the findings are circulated to the field functionaries for avoiding such incidence from recurring in the future.
Bank has implemented Risk Control & Self-Assessment (RCSA) which is used to identify key Operational Risk and assess the degree of effectiveness of the internal control. Based on the RCSA findings suitable risk mitigation strategies are devised to plug in the control gaps.
Bank has framed and automated Key Risk Indicators (KRl) matrices, which enables the management to mitigate risks that are reaching less acceptable levels through real time monitoring and providing alerts when thresholds are breached.
A central repository of information related to various outsourcing activities has been created for better monitoring and Vendor Risk Management.
Risk Officers have been designated in each zone for co-ordinating with Risk Management Department, Head Office to support and manage various types of risk emanating from Business units
15.3 Â Â Â Market Risk Management
Market risk implies the risk of loss of earnings or economic market value due to adverse changes in market rates or prices of trading portfolio. The change in economic value of different market products is largely a function of change in factors such as Interest rates, exchange rates, economic growth and business confidence. The bank has well defined policies to control and monitor its treasury functions which undertakes various market its risk operations.
Bank measures Interest Rate Risk in its trading book through Modified Duration, PV01 and VaR on a daily basis. Foreign Exchange Risk is also measured in terms of Net Overnight Open Position Limits (NOOP), VaR limit, AGL (Aggregate Gap Limit), Individual Gap Limit on daily basis. VaR and portfolio size limit are measured along with monitoring of our portfolio at transaction level, stop loss wise and dealer wise limit.
Back-testing and Stress Testing of all the parameters associated with Market Risk are being done on regular basis.
Under stress testing framework, Bank conducts comprehensive stress of its trading book portfolio as well as interest rate risk in the banking book due to mismatch between rate sensitive asset and liabilities on quarterly basis, which generally impact the earnings/ Equity of the banks with the change in the interest rate in the market. We use Traditional Gap analysis, as well as Duration Gap approach to measure interest rate risks in Banking Book.
Value at Risk (VaR) is a tool used for monitoring risk in the Bank's Trading Portfolio. The Enterprise-level VaR of your Bank is calculated and back tested on daily basis . The stressed VAR for Market Risk is also computed daily. This is supplemented by a Board-approved Stress Testing Policy and framework that simulates various Market Risk scenarios to measure stress losses and initiate remedial measures.
The Market Risk Capital Charge of your Bank is computed using the Standardised Measurement Method (SMM), applying the regulatory factors.
Bank undertakes risk-adjusted performance analysis of its domestic and overseas portfolios. It also analyses the credit rating migration of non-SLR bonds as a tool for decision making.
Model used in Market Risk Management is also validated by External Agency.
15.4 Â Â Â Liquidity Risk Management
Liquidity risk is the ability to meet expected and unexpected outflows at reasonable cost. Bank monitors its liquidity risk through flow and stock approach in accordance with Board approved ALM Policy.
Bank has implemented the BASEL III framework for Liquidity Standards as LCR (Liquidity Coverage Ratio), Liquidity Monitoring tools and LCR disclosure standards and ensures maintenance of adequate level of unencumbered High Quality Liquid Asset which can be converted into Cash to meet liquidity needs for a 30 calendar days' time.
NFSR (Net Stable Funding Ratio) which promotes resilience over a longer term time horizon by requiring banks to fund their activities with more stable sources of funding on an on-going basis. Bank is maintaining NSFR above than regulatory specified ceiling.
Bank also assesses its liquidity position under various stress scenarios to understand its funding position in case there is stress environment within the Bank as well as in market. Bank has included various triggers for contingency funding plan to meet any liquidity requirement. Bank has on-boarded vendor for ALM Automation for enhanced liquidity monitoring & Interest rate Risk.
Interest Rate risk in the Banking book (IRRBB) arises due to mismatch between rate sensitive assets and rate sensitive liabilities which may adversely impact the earnings / economic value of the equity of the Bank with the change in Interest rates in the market. For measurement and monitoring of interest rate risk in banking book, the bank uses risk management tools such as Traditional GAP analysis, Earning at Risk and Modified duration of Equity. The short term impact of interest rates movement on Net interest Income (NII) is worked out through the "Earnings at Risk" approach by taking into consideration parallel shift in yield curve, yield curve risk, basis risk and embedded options risk. The Long term of Interest rate movement is measured and monitored through change in Market Value of Equity.
In order to access the level of credit risk in any credit proposal, Bank does internal rating of borrower with exposure greater than Rs.
25.00 Lacs, for MSME accounts and more than Rs. 50 Lakhs for Agriculture borrowers.
Bank has upgraded its Credit rating process with effect from October, 2023. The New Model has better default predictability as well as more in line with External Rating.
Credit Proposal not covered under credit rating is assessed based on Score Card Model. Score Card Model was recalibrated after validation by External Agency. The main objective was to standardize the underwriting process for Retail, Agriculture and MSME (RAM) lending. Score card model uses technique combining several financial and non-financial characteristics to form a single score to assess borrower's creditworthiness. Presently Bank is using 19 Score Card Models for all retail loans, loans & advances under MSME segment upto Rs. 25 Lakhs & Agriculture segment upto Rs. 50 Lakhs
15.6 Â Â Â Fraud Risk Management
Bank has in place Fraud Risk Management cell under Risk Management Department which manages the fraud risk and ensure reporting of Fraud incidence to RBI within the timeline specified by the regulator as well as lodging of Complaint with Law Enforcing Agency.
Bank has constituted Committee of Executive - Fraud Risk Reporting and Management (CoE-FRRM) for declaration of account/ incidence as fraud based on the element of fraud. Root cause Analysis of frauds is being conducted and Control is implemented wherever needed for avoiding such incidence from recurring in the future.
Bank's has constituted two Fraud Management Group (FMG) for analysing the reported Early Warning Signals in borrower's account for classification it as Red Flag Account for timely detection of potential fraud.
Further, Bank has implemented Enterprise Fraud Risk Management System (EFRMS) comprising of Risk Based Transaction Monitoring System (RTMS) for timely detection of potential fraud. The EFRMS operations have been augmented to cover 24x7 alert disposals.
15.7 Â Â Â Sustainable Development
The Bank acknowledges the urgency of climate change and recognize global warming as one of the most significant threats to businesses and livelihood globally. Climate change risk has become a crucial challenge to the financial industry of late. The Bank committed to reducing the impact of climate change risk and is consciously working towards sustainable development of its banking operation. As per lending policy, Bank prohibits Loans and advances to industries consuming / producing ODS (Ozone Depleting Substance) which enables in reduction of greenhouse effect.
The Bank has taken several steps to reduce its carbon emission and minimize energy consumption namely:
I. Â Â Â Bank's two offices are powered by solar energy resulting in reduction in power consumption and in carbon emission.
II. Â Â Â LED light have been used in most of the branch premises/offices to reduce electricity consumption.
16. DEPARTMENT OF INFORMATION TECHNOLOGY16.1 Â Â Â Major IT Initiatives implemented during Fy24-25:
⢠   Allocated Rs. 1053 Cr. for IT projects, with 60% utilization and multiple projects in progress. (RFP/ evaluation/ approval stage).
⢠   Awarded PCI DSS Certification.
⢠   Established Next Generation Network Operation Centre (NOC) for managing Network Operations 24x7.
⢠   Introduction of TAB Banking in all bank branches.
⢠   Implementation of Resilience Operation Center (ROC).
⢠   Implementation of IT Asset Management and Application Whitelisting solution.
⢠   Rollout of new Virtual Machine environment - "Aakash Ganga"
16.2 Â Â Â Major IT Initiatives commenced during Fy24-25 and is in progress:
⢠   Implementation of Enterprise DMS.
⢠   Data Centre Consolidation.
⢠   Implementation of Identity Access Management (IDAM).
⢠   Onboarding of System Integrator (SI) for CBS.
⢠   Branch Network Devices - Refresh.
⢠   Comprehensive Testing Setup.
⢠   Forex Processing Center (FXPC).
⢠   Strengthening of IT Infra:
> Â Â Â VM Upgrade
> Â Â Â Oracle ULA
> Â Â Â UPI Storage Upgrade
> Â Â Â Automated DR
> Â Â Â Near DR
> Â Â Â Cyber Security Vault
17. DIGITAL BANKING17.1 Major Initiatives undertaken in FY 24-25
The Digital Banking Department undertook a comprehensive set of initiatives in FY 2024-25, aimed at strengthening customer experience, enabling financial inclusion, digitizing operations, and modernizing banking services:
UPI & Payment Innovation
1. Â Â Â UPI Lite Autopay Feature: Facilitated automatic wallet top-ups, ensuring consistent payment experiences.
2.    UPI Circle: A unique feature that allows primary users to delegate UPI access with control settings-ideal for families or shared expense.
Payments Ecosystem
3. Â Â Â E-Banking Integration with ICEGATE: Enabled seamless digital payment of customs duties.
4. Â Â Â Loan Repayment via BBPS: Customers can now repay loans through Bharat Bill Payment System, improving repayment convenience.
Cross-Border and Investment Services
5.    International Money Transfer via Scan & Pay: Enabled remittances to select countries like Sri Lanka, UAE, Nepal, France, and more through QR-based transfers.
6.    ASBA for HNI Customers: Enabled ASBA services through mobile and internet banking for simplified digital investment in IPOs Security and Accessibility Features
7. Â Â Â Positive Pay via WhatsApp Banking: Strengthened cheque transaction security.
8. Â Â Â Mobile Banking for UCO Contractor Scheme: Increased accessibility for contractors through digital banking.
9. Â Â Â CKYC ID Display: Customers can view CKYC ID directly through digital channels.
10. Â Â Â AePS Enable/Disable: Aadhaar-enabled payment systems can now be managed online.
11. Â Â Â Re-KYC via WhatsApp Banking: Allowed low-risk customers to complete Re-KYC updates through WhatsApp.
12. Â Â Â Stop Payment of Cheque Facility in WhatsApp Banking
13. Â Â Â Sukanya Samriddhi Yojana Account Balance Check in WhatsApp Banking
14.    Recurring Deposit Details and Summary in WhatsApp Banking Specialized Products and Account Features
15. Â Â Â UCO Sanchayika Scheme: A women-focused savings product available through digital platforms.
16. Â Â Â NRE RD Account Opening: NRE customers can open recurring deposits via mobile banking.
17. Â Â Â NRE to General Account Conversion: Simplified conversion process of NRE accounts into regular savings accounts.
18.    Spend Analyzer: A smart spend tracking tool introduced in Internet Banking to monitor expenses and alerts. NRI and Digital Convenience Features
19. Â Â Â OTP on Email for NRI Customers: Enhanced security by offering OTP delivery via email.
20. Â Â Â PPF Account Opening via Internet Banking: Extended the PPF facility to internet banking (already present in mobile banking).
21.    Loan Against FDR (Retail) via Internet Banking: Retail customers can now avail loans against FDs digitally Digital Product Enhancements and Launches
24. Â Â Â Android POS Introduction: Deployed Android-based POS machines for more secure, modern, and efficient merchant payments.
25. Â Â Â Dynamic Merchant QR with Soundbox: Enabled real-time audio alerts for merchants, enhancing payment confirmation security.
26.    Self-Service Password Management: Corporate and proprietorship customers can now reset passwords online using OTP and debit card verification, reducing reliance on branches.
27.    Branch Authorization Removed for CC Beneficiaries: Customers can now add beneficiaries to CC accounts via Internet Banking without branch intervention.
28. Â Â Â UCO Green Deposit Scheme Online: Green deposit accounts can now be opened via internet and mobile banking.
Product Launches & Infrastructure Enhancement
27.    Launch of Women-Specific Aparajita Debit Card: A special debit card with added benefits like insurance and coupons from brands like Myntra and Swiggy.
28. Â Â Â Launch of Metal Card for HNI customers
29. Â Â Â Limit management(Increase/decrease) of OD against FD via UCO mBanking Plus.
Technology & Knowledge Initiatives
30.Digi FAQ and Digi First: Published a digital FAQs guide (e-SAHAYAK) and a digital product magazine (Digi First).
17.2 Â Â Â Project Parivartan - Launch and Achievements
Project Parivartan served as a major digital transformation initiative for the bank in FY 2024-25, focused on enhancing the Straight Through Processing (STP) capabilities across segments. The initiative aimed at reimagining customer journeys by digitizing and automating end-to-end processes for lending, liabilities, and onboarding.
Key Journeys Launched Under Project Parivartan
a) Â Â Â Retail STP Journeys
⢠   Pre-Qualified Personal Loan (PQPL): Digitized loan disbursal with minimal documentation and instant approvals.
⢠   Revamped Loan Against FD: Provided customers a seamless option to avail overdrafts digitally against fixed deposits.
⢠   OD Against FD: OD facility introduced against Fixed Deposits through UCO Mbanking+.
⢠   Education Loan: Education Loan STP journey.
⢠   Shishu Mudra Loan: Simplified micro-business credit through a quick online application process.
⢠   GST Smart Finance: Enabled Cash Credit limit based on GST data for small businesses.
⢠   MSME Smart Loan: A new digital journey for eligible small and medium enterprises for composite credit facility upto 25 Lacs.
⢠   CC Renewals: Digitized renewal process for MSME Cash Credit accounts upto 10 Lakhs.
⢠   Tarun Mudra Loans: Streamlined loan disbursement for businesses.
⢠   Kishore Mudra Loans: Digital loan disbursement journey for businesses.
c) Â Â Â Agriculture STP Journeys
⢠   KCC Renewals: Simplified renewal process for Kisan Credit Cards (upto 2 Lacs) through web & SMS Journey.
⢠   KCC via Jan Samarth Portal: Integrated platform for streamlined access to agricultural finance.
⢠   Revamped FD/RD via M-Banking and Tab Banking
⢠   Savings and Current Account Opening via Tab Banking
Impact and Growth Metrics of Project Parivartan (FY 2024-25)
Project Parivartan enabled impressive growth in account disbursements and credit outflows:
⢠   PQPL: Disbursed to 20,669 customers, totalling Rs. 668.94 Cr
⢠   GST Smart Finance: Disbursed over Rs. 183.62 Cr across 1,394 accounts
⢠   MSME Digital Loan(Shishu, Tarun, Kishore & MSME Smart): Disbursed over Rs. 15.76 Cr across 852 accounts
⢠   Revamped STP KCC Renewals: Benefited 12,101 customers, renewal of Rs. 117.4 Cr
⢠   Revamped STP CC Renewals: Benefited 793 customers, renewal of Rs. 40.16 Cr
⢠   Revamped FD/RD through Mbanking: 3093 cr of FD/RD opened through Mbanking in FY 24-25
17.3 Â Â Â Debit Card Partnerships
In a move to enhance customer engagement and offer greater value, the Bank partnered with popular consumer brands to provide exclusive offers and rewards for debit cardholders. These partnerships included:
⢠   Swiggy & Zomato: Discounts on food delivery
⢠   BookMyShow: Movie ticket offers
⢠   Amazon & Plutos: E-commerce rewards and cashback
Additionally, women-specific debit card was launched under women-centric SB/CA schemes, offering benefits like complimentary insurance coverage and partner coupons from Myntra, Swiggy, and more. These initiatives played a key role in boosting debit card usage and customer satisfaction.
Throughout FY 2024-25, the Digital Banking Department ran several targeted digital campaigns aimed at driving product adoption, merchant onboarding, and user engagement. Campaigns focused on promoting mobile banking activations, QR code and Soundbox installations, and digital repayment channels. Focused marketing and outreach initiatives helped deepen penetration in semi-urban and rural areas, aligning with the Bank's financial inclusion goals. The major campaigns conducted were:
⢠   DigiKritva
⢠   DigiShresth
⢠   DigiLakshya
⢠   DigiConnect
⢠   Digital Premier League
⢠   Digital Champions Trophy
17.5 Â Â Â Future Initiatives for FY 2025-26:
a)    Digital Lending - New STP Journeys: To continue the momentum of Project Parivartan, the Bank is engaged to rollout 12 additional Straight Through Processing (STP) journeys. These journeys will automate and digitize Retail, MSME, and Agri loan processes for improved customer convenience and reduced turnaround times.
b)    Digital Marketing & Fintech: In partnership with top fintech and e-commerce platforms, the Bank plans to enhance digital outreach and fintech integrations through Strategic tie-ups with large E-commerce companies, adoption of Robotic Process Automation (RPA) for digital marketing tools, Centralized collection management via digital platforms and added WhatsApp Banking features.
c) Â Â Â Mobile Banking / E-Banking Enhancements
d) Â Â Â ATM Enhancements
These initiatives are set to position the Bank at the forefront of digital banking transformation, with a strong customer-centric and innovation-driven strategy for FY 2025-26.
⢠   Bank has set up State-of-the-Art Cyber Security Operations Center (CSOC), operational on 24*7 basis.
⢠   NCIIPC has identified, Bank's CBS, RTGS & UPI systems as a part of its critical infrastructure.
⢠   Bank has directly integrated with Threat Dissemination Platform (TDP) of CERT-In and NCIIPC.
⢠   To reinforce our Cyber Security capabilities, Bank's Cyber Security Operations Centre (CSOC) has forged a partnership with the Cyber Security Centre of Excellence, Govt. of West Bengal.
⢠   Bank has ISO 27001 certifications for IT Systems across Data Centres of the Bank. The Certification has been issued by International Standards Organization (ISO) and Bank has undergone a stringent evaluation process by an independent third-party assessor during the sustenance audit. The ISO 27001 certification fosters trust and demonstrates an ongoing commitment for safeguarding customer data.
⢠   In compliance with cyber security Framework of RBI, Bank has Cyber Security Policy, Information Security Policy and Cyber Incident Response & Recovery Management Policy & Cyber Crisis Management Plan, to provide direction and support for cyber security related functions and operations within the Bank. The policies are updated on periodic basis as per guidelines received from the Regulatory Authorities.
⢠   To address cyber risks arising out of human vulnerability, Bank puts concerted efforts in raising cyber awareness of our staffs and customers through various cyber awareness initiatives and campaigns.
>    Publication of Cyber Awareness Booklets in Hindi & English Languages like 'Cyber Netra :Comic Booklet', 'Decoding the Web of Online Scams', & eArticles on Money Mule Scam Awareness, Cyber Smart Vision for Women empowerment etc.
>    Monthly observance of "Cyber Jagrookta Diwas" on the first Wednesday of every month with engaging workshops, interactive sessions, creative events, outreach campaigns at schools, colleges, NSG Commandos' Training Centre, SU/ Rural Centre (Baruipur), Customer Meet & Awareness Sessions are organized for staff members & valued customers (100% participation of 43 zones since twice consequetive years).
>    Bank has collaborated with Data Security Council of India (DSCI), enhancing its cyber awareness initiatives with strategic industry insights, emerging threat intelligence, and financial sector-specific best practices.
>    Cyber Security" Dedicated Corner at Bank's Official Website (www.ucobank.com) for dissemination of Cyber Security Awareness messages.
> Â Â Â Sharing of Cyber Security Awareness Email Advisories to Staff Members , Customers including newly on- boarded customers & also Bank's shareholders.
> Â Â Â Daily Cyber Safety Tips as well as Weekly Jagrookta Series are shared through online platforms.
>    Live Webinar for Customers on Unauthorised Electronic Banking Transaction Reported Cases & also in observance of National Cyber Security Awareness Month.
>    Frequent uploading of Social Media Post, Cyber Awareness Videos featuring Cyber Rakshak, advisories, reels, memes as well as Retweet of Government posts like ISEA, CERT-In, CyberDost etc.
> Â Â Â Display of Cyber Awareness Posters at prominent places.
> Â Â Â Display of Cyber Awareness Messages using Bank's Digital Channels.
> Â Â Â Usage of Push Notification, SMS, Email, Broadcasting of Radio Jingles through FM Radio Station.
>    Mock social engineering drills on periodic basis to evaluate the promptness of our staffs and onsite third party vendors, in detecting and reporting cyber incidents.
Bank is continuously emphasizing on enhancing the quality of customer service. It recognises the need for constant improvement in customer experience and aims to enhance the quality of customer service so as to ensure that our customers feel that they are valued.
The Bank has taken the following initiatives for improvement in customer experience during the year 2024-25:
19.1 Â Â Â Inauguration of PULSE, a state-of-the-art transaction monitoring system which works on:
"Platform statistics & contra core system: that captures live view of transactions hitting EFRM solution and their response back to source to locate any unusual spike through pictorial detection.
⢠   EFRM Debit alerts that tracks alert count generated per account and per channel
⢠   ADC dashboard Monitoring: that provides a holistic view for monitoring of transactions done through ATM, RTGS, NEFT, IMPS and UPI to locate any spurt and abnormality at GL level
⢠   Credit transactions monitoring: that tracks unusual high volume credit inflow and debit outflow at individual account level based on mule propensity model that considers parameters like account opening date, change in KYC details, debit and credit patterns, maintenance of minimum balance etc.
⢠   Robust mechanism for detection of mule: score propensity model was validated using the data reported as fraudulent in I4C. Based on the scores generated and threshold set with reference to this data, the model was deployed on our internal data set leading to identification of predicted mule accounts.
⢠   AI/ML based alert generation: outlier detection model approach has been implemented to detect fraud transactions in ATM/POS/ ECOM, UPI, IB, MB, AEPS channel based on transaction amount, location, time, and user behaviour to generate risk scores for each transaction attempted.
⢠   Graphical Relationship Analysis: to trace the flow the transactions involving accounts reported to I4C as fraudulent showing which account transfers funds to others and its frequency.
19.2 Â Â Â Launch of a range of new services on our UDAY Chatbot and introduce exciting enhancements to our IVRÂ system.Unique NLP feature of UDAY Chatbot
It has ability to understand customer context and intent to respond naturally and accurately. UDAY has advanced techniques like intent classification, sentiment analysis and context tracking to interpret user inputs and enhance conversational relevance.
Chat with Agent video call support facility
Customers can connect with live Customer Service Associates for real time assistance through chat or video call support. This enhances customer experience by combining visual interaction with personalized support.
⢠   Account Balance
⢠   Account Mini Statement
⢠   Holiday Calendar
⢠   ATM Locator
⢠   EMI Calculator
⢠   Loan Accounts Interest Certificate
⢠   Deposit Accounts Interest Certificate
⢠   Debit Card Blocking
⢠   Re-KYC Submission
⢠   Cheque Book Request
⢠   Cheque Stop Payment
⢠   Debit Card Issuance
⢠   Set/Reset Debit Card PIN Enhancements in IVR System
⢠   AEPS Disable/Enable Self-Service
⢠   E-Banking Disable/Enable Self-Service
19.3 Â Â Â Mechanism for tracking Customer Friendly behavior by frontline staff.
⢠   Usher in Customer Experience transformation entailing change in overall culture.
⢠   Capturing of customer experience through feedbacks collected from various channels.
⢠   Rewards for Top Performing branches / employees imparting excellent customer service.
19.4 Â Â Â Online Nomination Facility with Aadhaar based authentication.
19.5Â Â Â Â API Integration with I4C portal for effective management of Cyber Crime Complaints.
20. STRATEGIC PLANNING: MIS & ADF CELL
During the last financial year, the Data Analytics Cell has made significant developments in enhancing operational efficiency and enabling data-driven decision making across the Bank.
20.1 Some of the key initiatives and accomplishments are as follows:
a) Â Â Â Implementation of LIVE Dashboards:
Multiple LIVE dashboards have been developed and implemented, offering real-time or near real-time insights into key business metrics. These dashboards have played a crucial role in enhancing operational efficiency by enabling continuous, data-driven monitoring of business performance across various verticals. Notably, the Target vs. Gap to Target in LIVE Business dashboard has facilitated improved tracking and timely action at all department levels, significantly supporting business goal achievement.
b) Â Â Â Cash-in-Hand LIVE Dashboard:
A crucial dashboard titled Cash-in-Hand LIVE has been introduced, displaying the current cash position of all branches. This has facilitated better cash management across the Bank, resulting in optimized cash holdings and improved CRR (Cash Reserve Ratio) compliance.
c) Â Â Â NPA Monitoring Dashboard:
A LIVE dashboard for monitoring accounts that are at risk of becoming NPAs within the next two weeks has been developed. Real-time tracking of credit inflows into these accounts has empowered branches to take proactive measures, thereby reducing slippage and enhancing asset quality management.
d) Â Â Â AI & ML-Based Cross-Selling Models:
AI & ML models have been successfully deployed to identify potential customers for cross-selling home and car loans from the existing customer base. These models have already generated a significant number of qualified leads, thereby contributing to business growth and enhancing both operational and marketing efficiency. Several additional AI & ML models are currently under development and are scheduled for rollout in the current financial year.
Furthermore, a sentiment analysis model has been implemented to evaluate customer feedback posted across various social media platforms. The insights derived have been segmented and presented through a dedicated dashboard, which is being actively utilized by multiple departments to enhance customer service quality and overall engagement.
In addition, complaints registered through the OGRS portal have been categorized by type and visualized through a structured dashboard. This has enabled departments to address grievances more effectively and ensure timely resolution through continuous monitoring and follow-up.
e) Â Â Â Detection of Potential Mule Accounts:
A key achievement has been the development of an AI model to detect potential mule accounts. The corresponding dashboard is actively monitored by the EFRMS Cell and has played a significant role in fraud prevention, thereby safeguarding the Bank's integrity and financial health.
f) Â Â Â Deployment of NLP-Powered Chatbots:
Leveraging Natural Language Processing (NLP), several chatbots have been developed to assist employees with queries related to HRM, Credit, and Personnel Services etc. These chatbots are currently in use and have improved internal service delivery and support efficiency. This initiative places us among the few Public Sector Banks to successfully implement such smart solutions.
g) Â Â Â Initiation of Robotic Process Automation (RPA):
The Bank has also embarked on the automation of repetitive tasks through Robotic Process Automation (RPA), aimed at reducing manual intervention and improving turnaround times. This will further augment operational efficiency and resource optimization.
⢠   NPA Forecasting Model: For early warning signals and risk mitigation.
⢠   Google Review Sentiment Analysis: For understanding and addressing customer feedback more effectively.
⢠   Call Centre Call Analysis: To extract insights for service quality improvement.
⢠   Potential Personal Loan Customer Identification: To support targeted loan marketing initiatives.
⢠   Customer Churn Predictions: Based on customer transactions and RFM analysis, to predict customer churn and to arrest the same.
⢠   Additional Models in Development: Focused on various operational and strategic areas to further drive efficiency and growth.
Bank reinforces strong corporate reputation through its high degree of transparency and consistency in communication with stakeholders and also disseminates timely information with clarity, coherence and credibility including information through the websites of the Bank on real-time basis. Bank aims to inform, persuade and involve one and all in the activities and growth through sustained, consistent and relevant messages and using a judicious mix of both external and internal communication tools.
Bank has taken up multiple initiatives through various channels namely Print Media, Outdoor Media, sponsorship of different events, CSR activities and dissemination of requisite information to stakeholders to build and maintain the brand-image of a world class financial institution.
21.1 Â Â Â Publicity Campaigns:
Print Media/ Outdoor Media are an effective medium to connect to masses. The Bank has utilized it effectively by carrying out intensified and vigorous publicity campaigns throughout the year through hoardings, kiosks, traffic booths, banners, traffic cones, digital displays, magazines, newspapers etc.
During the brand publicity of the Bank, the Bank also ensures to publicize various banking products viz. Home Loan, Car Loan, Education Loan, Gold Loan, Deposit schemes, Digital Products, VKYC etc.
21.2 Â Â Â Celebration of 83rd Foundation Day:
The Bank completed 82 glorious years of service to the nation on 6th January, 2025. The occasion was celebrated with much enthusiasm and vigor across the country and overseas centers. Zonal Offices and branches across the country organized different activities viz. planting saplings, blood-donation camps, health check-up camps etc. A cultural programme was organized at Dhonodhanyo Auditorium, Alipore wherein staff members across the country participated and performed their talent.
21.3 Â Â Â Corporate Social Responsibility (CSR):
Bank believes that carrying out CSR activities help in tangible value creation. Moreover, CSR creates a positive image in the mind of customers and society at large. This creates a sense of belongingness and loyalty in existing and prospective customers.
The Bank has 27 RSETIs (Rural Self Employment Training Institutes) spread across country to impart training and skill up-gradation of rural youth geared towards entrepreneurship development.
Bank has taken up several CSR activities in the previous financial year like:
⢠   Providing cohort training programmes for Bank's MSME customers.
⢠   Contribution for acquiring vehicle equipped with 1000 Liter water tank for tree care initiative.
⢠   Contribution towards purchase of E-Rickshaw to Mr. Jayanta Nath (Divyang) S/o Saru Nath of Sonitpur district, Assam
⢠   Contribution towards providing drinking water bottles on a daily basis for religious yatris, construction of yatri niwas and purchase of vehicles for devotees.
⢠   Contribution towards construction of public toilets, including Bio-Toilet.
⢠   Contribution to Chief Minister's Relief Fund towards flood relief.
⢠   Contribution towards modernization of Handloom weaving process.
⢠   Contribution of 4-wheeler vehicle/jeep for the purpose of medical camps/awareness camps and carrying the medical facilities to rural areas and hilly areas.
⢠   Contribution towards blood donation camps.
⢠   Installation of Drinking Water Cooler Machine and procurement of essential equipment to enhance training capabilities to various institutions and schools.
⢠   For supply and installation X-Ray machine air conditioner, Wheel Chairs and Stretcher to Community Health Centres and for purchase of ambulance.
⢠   Contribution to NGO to enhance logistical & Infrastructural support for the intellectually challenged members and neuro-disabled individuals, including orphans and beneficiaries from below Poverty line (BPL) families.
Bank is also publishing the in-house magazine "UCO Tower" where all the constituents are encouraged to participate. UCO Tower also aims to create awareness of all happenings and activities of the Bank among all employees.
The bank's social media cell has made significant strides in amplifying our brand presence and visibility through strategic content creation and engagement initiatives.
Social media team has been proactive in crafting compelling and informative posts that resonate with our target audience. By focusing on highlighting the bank's unique value propositions and product offerings, we have successfully raised awareness about our brand across various social media platforms.
Understanding the importance of maintaining a positive brand image online, our team has diligently monitored sentiment across social media channels. Through timely responses to customer inquiries, addressing concerns, and fostering positive interactions, we have effectively managed sentiment and cultivated a favorable perception of the bank among our online community.
Overall, social media efforts have not only bolstered brand awareness but have also contributed to strengthening customer relationships and fostering a positive brand reputation in the digital sphere. As we look ahead to the upcoming year, we remain committed to leveraging social media as a strategic tool for achieving our organizational objectives and delivering value to our stakeholders.
Human Resource Management Department comprises of various Cells looking after different segments. All these cells worked in tandem during FY 2024-25 to create a harmonious and productive work environment. Training and workshop were organized for improving/enhancing the skills and knowledge of the staff.
22.1 Â Â Â Manpower Management:
⢠   The Total staff strength of our Bank, as on 31st March, 2025 stood at 21049 employees including employees serving overseas. We have 13505 Officers, 5606 Clerks and 1938 Sub-Staff in our Bank as on 31-03-2025.
⢠Out of total staff of 21049, 4197 belong to SC, 1743 belong to ST, 5071 to OBC, 320 to EWS and 9718 to UR category.
⢠Out of total staff, 514 employees are person with bench mark disability (PwBD) and 1438 belong to the Minority Communities.
⢠   There are 6136 Women employees, who constitute 29.15% of the Total Workforce as on 31st March, 2025.
⢠   There are 1056 Ex-Servicemen as on 31st March, 2025.
22.2 Â Â Â IR Negotiation Cell:
During the period, the Industrial Relations climate in the Bank remained cordial between the Management and the Unions/ Associations. Meetings and discussions were held with Unions/ Associations at periodic intervals through mutually co-operative attitude and respect during the financial year 2024-25. In terms of RBI guidelines 100% compliance of mandatory leave achieved during FY 202425.
In F.Y. 2024-25, the Bank demonstrated its commitment to building a skilled and diverse workforce, recruiting 325 employees across key roles, including Risk Officers, Agricultural Field Officers and Customer Service Associates. 30 % of the newly recruited employees were women, reflecting our focus on gender diversity.
The Bank also engaged 250 apprentices during the year, fostering talent development and practical exposure for aspiring professionals.
Additionally, for F.Y. 2025-26 recruitment for 250 Local Bank Officers (LBOs) and 68 Specialist Officers have been initiated. Through IBPS, 161 Specialist Officers and 364 Customer Service Associate are to be recruited in F.Y 2025-26. Specialist Officers to be recruited include IT Officers, Agricultural Filed Officer, Chartered Accountant, Law Officer, Risk Officers, HR/Personnel Officers, Economist, Security and Fire Safety Officer to strengthen our workforce and enhance service excellence.
Our Organization, being a part of one of the most dynamic industries, has to keep up with the constantly changing environment by continuously updating its workforce with various Training Programs in the concerned Fields. Training Programs are held aligning the corporate vision, mission and fulfilling the expectations of the Top Management. In FY 24-25, new Learning and Development Policy of the Bank was approved & implemented.
In FY 2024-25, 975 Executives, 12700 Officers and 4798 Sub-Staff, totaling 18473 were trained in Internal & External Training Programs conducted at our Executive Training Centre, Kolkata, 7 other Staff Training Centers, across India and from Reputed External Training Institutions. We also continued to sponsor our Executives & Officers in reputed External Training Institutes like NIBM Pune, BIRD Lucknow, SBIL Kolkata, NIBSCOM Noida, CAB (RBI), IIBF, CAFRAL, Manipal University, IIBM Guwahati and various reputed external Training Institutes across the country which helped them in acquiring a global competitive edge.
In FY 2024-25 some important Training Programs like Annual Forex Assembly, Programme on Gen-AI and Machine Learning, Data Analytics, ESG, Customized Program on Banking Compliance, Awareness Program for Women on Workplace Safety, Annual Refresher Training of Security Officers, Customized Training Program on Women Empowerment, Digital Transformation & Change Management, Transformation Training for New Zonal Heads, Preventive vigilance programme, Need based training for weak performers, and various customized training programmes including Leadership Development Programme were conducted. Competency Mapping Exercise was conducted for AGMs and DGMs. Skill Assessment Tests were conducted for all Officers and weak performers in the tests were imparted with Training programmes.
Bank has also conducted Webinar on Cyber Security/ Phishing Awareness Program in association with CISO Office for employees across branches/offices. In FY 2024-25, total of 591 employees were paid honorarium/incentive for passing Bank approved courses.
The bank has revamped its Performance Management System (PMS) through Samsiddhi Portal to ensure robust, transparent, and objective evaluation of all Officers/Executives up to Scale VII.
⢠   Role based Appraisals through Samsiddhi application w.e.f. FY 2024-25.
⢠   Foster accountability by setting clear goals and regular monitoring of progress.
⢠   Improve KRA measurability thereby improving objectivity of the PMS.
⢠   Objective / System driven data and tool driven role allocation to improve transparency, improve job satisfaction and reduce confusion or conflicts.
⢠   Project Samsiddhi 2.0: Scientific Manpower Planning Tool for Officers and automation of Transfer process.
⢠   One-stop Biodata from Samsiddhi for all Interview Process in Bank.
⢠   Samsiddhi's Performance Leaderboard as well as Business category-wise Dashboard of Zonal Heads and Branch Heads in Bank's HRMS and Samsiddhi portal respectively.
⢠   Policy on Rewards and Recognition Framework for Officers/Executives has been introduced for Performance Linked (Both Monetary/Non-monetary) Rewards which is applicable only for Officers / Executives posted in Business Generating Roles
22.6 Â Â Â Internal Complaints Committee (ICC):
Our Bank is committed to promote gender equality and women's empowerment which result in economic development and inclusive growth and benefit the nation as a whole.
In terms of creating safe workplace environment for women our Bank has constituted Internal Complaints Committees at Apex level as well as Local Level enforcing the rules as laid out in the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 for quick Redressal of such complaints, if any.
Bank has been implementing reservation, relaxation and other concessions extended to SC/ST/OBC / Differently Abled Persons and Ex-Servicemen employees as per reservation policy of the Government of India. The overall representation as on 31/12/2024 of SC/ ST/OBC/EWS employees was 19.93%, 8.29%, 23.96% and 1.51%. Separate roster registers are maintained for direct recruitment as well as for promotion.
For SC/ST employees, reservation cell is set up at HO level and across all ZO level as per norms, functioning under the direct control of Chief Liaison Officer as well as Ex-officio Liaison Officer. Additionally Bank has formed separate OBC cell at HO level as well as ZO level which is functioning under the control of Chief Liaison Officer as well as Ex-officio Liaison officer.
Moreover Separate Grievance Redressal officer for PwBD and EWS employees has been created to look after their grievance.
During FY 2024-25, Bank has imparted training to 18488 employees out of SC-3435, ST-1550, OBC-4758, EWS-305 and PWD-474. Bank has imparted pre-promotional training to 1368 candidates for inter-scale promotion of officers, 187 candidates for promotion from Clerical to Officers and 205 candidates for promotion from Sub-ordinate to Clerical cadre belonging to SC/ST/OBC and PWD Category
In order to address the issues of SC/ST & OBC employees of the Bank, meetings are called at Apex level as well as at Zonal office level (Where reservation roster is maintained) with Welfare Association of such employees. An Internal Grievance Committee is functioning at Head office level for monitoring the grievances redressal of the employees belonging to SC/ST/OBC/Ex-SM/PWD, which are handled and subsequently redressed by the respective cell, as per Bank's extant policy and guidelines.
The Annual Statement in the prescribed format showing the representation of SCs, STs, OBCs, EWS and PWD as on 31-12-2024 is given in Annexure-I & Annexure-II .
23. Â Â Â AUDIT AND INSPECTION23.1 Â Â Â Risk Based Internal Audit (RBIA):
As per the Audit Plan for the FY 2024-25, RBIA has been conducted in total 2681 Branches. In order to identify gaps in business and control functions, we have elaborated the "Fraud Prone Areas" for focussed compliance by the Branches. Now, we have separate checklist for different business units such as, General Branches, Flagship Corporate, "B" Category, Asset Management, Loan Processing Hubs, Currency Chests, Service Branches, Central Pension Processing Centre (CPPC) Nagpur, Depository Participant Services. Frequency of RBIA depends upon its previous risk categorization i.e., Low Risk: 15-16 Months, Medium Risk: 12-13 Months, High Risk: 9-10 Months, Very High Risk: 8-9 Months & Extremely High Risk: 6-7 Months.
During the Concurrent Audit Cycle 2024-25 (October-2024 to September-2025, 891 Branches were identified (816 - Branches, 69 -Specialized Branches & 06 - Head Office Departments). By this more than 80% of the advances of the Bank have been brought under the ambit of Concurrent Audit. Audit of all units are conducted on a monthly basis. To strengthen the Concurrent Audit System, "Transaction Audit" by Concurrent Auditors is in place to ascertain genuineness of High Value Transactions.
During the FY 2024-25, Management Audit of 34 Zonal Offices, 24 Head Office Departments was conducted. Management Audit of Paschim Banga Gramin Bank (RRB) sponsored by our Bank was also conducted.
During the FY 2024-25, Short Audit was conducted at 285 Branches. Short Audit is carried-out for such Branches which was not covered under any form of Audit (Concurrent, RBIA, Statutory Audit) during the FY.
During the FY 2024-25, Revenue Audit was carried-out at 1558 Branches to ensure that proper charges have been recovered on advances, deposits, expenditures and rendering different services.
Quarterly Inspection of Branch Cash, ATM Cash, Security Items, Gold Packets is in pace from quarter ended December - 2024.
23.7 Â Â Â Information System (IS) Audit:
The IS Audit System have been strengthened by including new vulnerable areas under its ambit. Following Audits are covered under IS Audit - (1) Application Audit, (2) Source Code Audit, (3) Process Audit, (4) Vendor Audit, (5) Database Audit, (6) Network Audit. (7) Vulnerability Assessment (VA) & (8) Penetration Testing (PT) of IT Infrastructure etc is conducted by qualified IS Auditors to protect IS Assets from threats and vulnerabilities, compliance with laws, regulations and internal policies.
During the FY 2024-25, Half Yearly Audit of Bank Guarantees in121 Branches & Audit of all 98 Loan Processing Hubs was done.
In order to add expertise and enrich knowledge, necessary trainings were provided to Mobile Inspectors & Officials posted at Head Office, Audit & Inspection Department and different Filed Inspectorates. During the FY 2024-25 in-house training was imparted to 118Â Mobile Inspectors and to 31 Executives/Officials by External Training Institute (IIBF).
The Bank upholds a robust and transparent vigilance administration that is seamlessly integrated into its management functions. Bank's vigilance framework is designed to foster ethical practices, professionalism, and operational efficiency while ensuring stringent monitoring, supervision, and control of various vigilance functions.
Under the aegis of the Central Vigilance Commission directives, vigilance administration in the Bank is led by the Chief Vigilance Officer, who oversees vigilance functions across the organisation. The Bank emphasizes Participative, Proactive, and Preventive vigilance as key pillars in maintaining a culture of transparency and compliance in its operations.
Vigilance Department plays a vital role in creating awareness across all levels on preventive measures. Additionally, it extends assistance to the field functionaries including Disciplinary Authorities, in the vigilance matters, enabling them to address their concerns effectively.
24.1 Â Â Â Milestones achieved
⢠   Complaints - During the FY 2024-25, a total of 332 complaints were received from various sources including DFS, CVC, RBI, CBI & Others. Wherever vigilance overtone observed, such complaints were handled to their logical end within the timeline stipulated by CVC.
⢠   Release of Vigilance Manual 2024 - Department has released Vigilance Manual during the Vigilance Awareness Week 2024, which incorporates latest CVC/ DFS guidelines, amendments to the Prevention of Corruption Act, 1988 and updates to Discipline & Appeal Rules.
⢠   UCO VIGIL - In-house Quarterly Magazine is being published to promote the cause of transparency and integrity and to provide a platform for employees to contribute articles on various aspects to create awareness and highlight best practices related to the vigilance functions.
⢠   Online Vigilance Clearance Module - With an aim to digitalise and step towards paperless system, Online Vigilance Clearance Module has been introduced by the department, thus reducing the manual intervention and Turn Around Time (TAT) to dispose the entries.
⢠   Inter-departmental Co-ordination Meeting - Convening of Monthly Inter-departmental Co-ordination Meeting with Risk Management, Recovery & Law Departments under chairmanship of CVO to review the status of Fraud Reporting and ongoing investigations, Lodgement of Complaints, Handling of returned complaints, ABBFF related matters.
⢠   Strengthening Ethical Practices and Promoting Preventive Vigilance with Mission Jagriti - Mission Jagriti is a preventive vigilance initiative focused on raising awareness and transparency within the organization. As part of this mission, officials from the Head Office made visits to various Zonal Offices to engage with staff and promote vigilance practices. These sessions aimed to educate employees through interactive methods such as presentations on real-life cases.
24.2 Â Â Â Key events observed
⢠   IBA Committee Meeting - Department successfully organized a meeting of a seven-member committee, formed by the Indian Banks' Association under directives of DFS to look into the measures which enable ex-ante protection for bonafide business decisions and to recommend steps to be taken by bankers to prevent avoidable lapses, that lead to subsequent investigation by law enforcement agencies.
⢠   Capacity Building & Training Programme on Vigilance Administration - A two-day "Capacity Building & Training Programme for Vigilance Officers on various aspects of Vigilance Administration and Disciplinary matters including the role of IO/PO etc." was conducted at Kolkata by the UCO Bank under the aegis of Central Vigilance Commission on the 13th and 14th of December, 2024. The program was attended by more than 110 participants, including dignitaries from the Central Vigilance Commission, MD & CEO of UCO Bank, Executive Directors of UCO Bank, Chief Vigilance Officers (CVOs) and Additional Chief Vigilance Officers/ nominated participants from various Public Sector Undertakings (PSUs)/ Public Sector Banks (PSBs) / Public Sector Insurance Companies (PSICs), comprising of officers from 11 zones & Head Office of UCO Bank.
The event was inaugurated by Shri A S Rajeev, Vigilance Commissioner, Central Vigilance Commission.
⢠   Training arranged for Nodal Officers at all Zonal Offices, dealing with RDA matters on 23rd & 24th September, 2024 at Central Staff College, Kolkata.
⢠   Training arranged for Inquiry Offices/ Presenting Officers covering all the zones on 20th & 21st January, 2025 at Staff Training College, Chennai.
⢠   Bank observed Vigilance Awareness Week from 28th October, 2024 to 3rd November, 2024 on the theme pronounced by the Central Vigilance Commission, "Culture of Integrity for Nation's Prosperity".
The celebration commenced with the Integrity Pledge being taken by all executives, officers, and employees of the Bank, reinforcing their commitment to transparency and ethical practices. To enhance awareness, banners and posters were prominently displayed in branches and offices nationwide. Various engagement activities were organized, including online quiz competitions to test knowledge on vigilance-related topics and Awareness Gram Sabhas conducted by rural branches to educate the common man on integrity and anti-corruption measures.
Additionally, walkathons were organized by most of the zones to promote the cause, alongside town hall meetings at various centers to facilitate discussions on vigilance and ethical banking practices. Motorbike rallies were also conducted in select centers, drawing public participation and spreading awareness about the importance of integrity in day to day life.
The Bank has always been proactive in the implementation of the Official Language Policy of the Government of India. The bank has taken appropriate follow-up action to implement various items of the annual program 2024-25, for the use of the Official Language Hindi, issued by the Government of India, Ministry of Home Affairs, Department of Official Language, and has made concreted efforts
to achieve the targets set therein. The Bank complied with the directions given by the Third sub-Committee of the Parliamentary Committee on Official Language/ Department of Financial Services, Ministry of Finance, Government of India.
For the outstanding work in the progressive use of the Official Language Hindi, the Department of Official Language, Ministry of Home Affairs, Government of India felicitated UCO Bank Head Office to Rajbhasha Kirti Award for the fourth consecutive year. In addition to it, Narakas (Bank), Kolkata (Coordinator: UCO Bank) has been felicitated with the 'Narakas Rajbhasha Samman' for its remarkable contributions in the field of Official Language.
25.1 Official Language Action Plan 2024-25
With the motivation and active support of the top management of the bank, the journey towards winning the Rajbhasha Kirti Award-the highest award for Head office, given by the Department of Official Language, Government of India, and the regional award for the zonal office, continues in line with the goals of the Rajbhasha Action Plan 2024-25
|
UCO Bank G. D. Birla Memorial Lecture Series |
Head office and 32 zonal offices organized lecture series on various relevant topics. The vice chancellors, scientists, professors and other dignitaries were present on the occasion. Ms. Anshuli Arya, IAS, Secretary, Department of Official Language, Ministry of Home Affairs, Government of India was the Chief guest at the lecture series organized by the head office at Constitution Club of India, New Delhi. |
|
UCO Rajbhasha Samman |
The head office and 32 zonal offices awarded UCO Rajbhasha Samman to a total of 66 students who have attained the top position in post graduate (Hindi)Â from various universities in the country. |
Training on Official Language Implementation and Unicode on computers was provided to 5800 officers and clerks through a total of 198 Hindi workshops organised at the Head Office and Zonal Levels.
The Official Language Officers of Scale 2 and 3 were trained at Central Staff College, Kolkata and the Officers of Scale 4 were trained at Indian Institute of Bank Management, Guwahati.
Central Staff College, Kolkata and all the Regional Training Centres imparted Hindi training to the personnel by incorporating all the aspects of the Official Language Policy of the Government of India in each of their training programmes.
In addition to above, 104 officers and clerks passed the In-service Hindi training (Prabodh, Praveen, and Pragya and Parangat) examination of Govt. of India.
The Bank published a souvenir on the topic 'Retail and CASA: Two sides of business prosperity', which is a compilation of essays of the participants of the All-India UCO Bank Hindi Essay Competition. Along with this, the Bank itself published the Hindi In-house magazine 'UCO Anugunj' on a quarterly basis, published a souvenir on the short research thesis of the Chief Managers on Acharya Hazari Prasad Dwivedi and Sachchidananda Hiranand Vatsyayana 'Agyeya' and published a souvenir on the occasion of educational tour on the theme 'Indian Knowledge Tradition'. The annual In-house magazine of NARAKAS 'Nagar Prabha' was published. Apart from this, Hindi In-house magazines were also published by all the zonal offices and Central Staff College Kolkata.
a) Â Â Â For the best performance in the field of official language, the headquarters has received the Rajbhasha Kirti Award - Second
Prize
UCO Bank, Head Office received the prestigious Rajbhasha Kirti Award of the Government of India for compliance with the Official Language Policy. This award was received by Managing Director and Chief Executive Officer Shri Ashwani Kumar from the Hon'ble Minister of State for Home Affairs Shri Nityanand Rai on the occasion of the 4th All India Official Language Conference held at Bharat Mandapam, New Delhi on 14th September 2024.
b)    Department of financial services incentive award to UCO Bank for excellent performance in Implementation of Official Language Policy of Government of India
The Consolation Award, for the best implementation of Official Language Policy during the year 2023-24 for UCO Bank under Sector "C" among the Banks/Financial Institutions/Insurance Companies controlled by the Department of Financial Services, was received by Shri Rajesh Nagar, General Manager, from Dr. Abhijit Phukan, Economic Advisor, Department of Financial Services.
c) Â Â Â Head Office receives NARAKAS Rajbhasha Samman-I for best performance in the field of official language
Narakas Bank (Kolkata) has been awarded the first prize for Narakas Rajbhasha Samman for the financial year 2023-24. This honour was received by Shri Rajesh Nagar, General Manager, Rajbhasha from the Chief Minister of Assam, Dr. Himanta Biswa Sarma at the Regional Official Language conference held in Guwahati on 05 March 2025.
d) Â Â Â UCO Bank Zonal Office Bhagalpur-Rajbhasha regional awards-II
The Department of Official Language, Ministry of Home Affairs, awarded the NARAKAS Rajbhasha Samman-II award for the financial year 2023-24 to NARAKAS Bank (Kolkata) for its excellent work in Official Language implementation. The honour was received by Shri Sanjay Nandurkar, Deputy General Manager, at the regional Official Language conference held in Guwahati on March 05, 2025 from Dr. Himanta Biswa Sarma, Chief Minister of Assam.
e) Â Â Â Narakas Roopnagar (Convenor - Lead Bank Office - Rupnagar) - Narakas Raj Bhasha Samman - Third
Narakas Rupnagar has been conferred the third award for Narakas Rajbhasha Samman for the financial year 2023-24 for outstanding work in Official Language Implementation by the Ministry of Home Affairs, Department of Official Language. The honour was received by Shri Manish Tripathi, lead bank manager, Rupnagar from Shri Bhajan Lal, Chief Minister of Rajasthan at the Regional Official Language Conference held in Jaipur on 16th February 2025.
f) Â Â Â Award for the personnel of the general cadre for excellent implementation of the official language.
Ms. Diljot Kaur, Manager, Zonal Office Chandigarh was honored, in the review meeting of Zonal Managers held in Diu on January 10, 2025, for the best implementation of Official Language Policy and maximum correspondence in Hindi.
6 of our officers won prizes in All India Inter Bank Essay Writing Competitions organized by Reserve Bank of India as well as other Nationalized Banks/Financial Institutions.
In the competitions organized by various banks/financial institutions/offices under the aegis of NARAKAS, 22 Branches/Offices and 35 employees of the bank got 18 First, 7 Second, 4 Third and 6 Incentive prizes.
Under UCO Bank Correspondence Incentive Scheme, 5 employees of the bank were awarded.
25.5 Â Â Â Official Language Activities
a) Â Â Â All India Official Language Officers Conference
The 12th All India Official Language Officers Conference was held for the bank's official language officers at the Central Staff College, Kolkata for three days.
b) Â Â Â UCO Bank 7th All India Inter Bank Hindi Essay Competition
Panel discussion and award distribution ceremony: In order to promote the official language Hindi in the bank, the All India Inter Bank Hindi Essay Competition - 2024 was organized on the topic of 'Retail and CASA - Two Aspects of Business Prosperity'. Winners were awarded at the Bank's Central Staff College, Kolkata.
Seminar on 'Bharatiya Gyan parampara-an introduction': Narakas (Bank), Kolkata (convenor-UCO Bank, Head Office) conducted an educational visit to Indian Institute of Technology, Kharagpur and a seminar was organized.
On the occasion of International Day of Disabilities -2024, an essay competition was organized for the differently abled personnel of the Bank on the topic 'Expectations of the differently abled from the society'.
25.6 Â Â Â Official Language Inspection
During the financial year 2024-25, the third sub-committee of the Parliamentary Official Language Committee conducted an Official Language Inspection of one of our zonal offices and the Documents and Evidence Committee conducted an official language inspection of one branch. The committee appreciated the efforts being made by the bank for the progressive use of official language Hindi.
The Department of Financial Services, Government of India conducted a Rajbhasha inspection of the Head Office. The Bank's Rajbhasha related work was appreciated by the Ministry.
In addition, 13 Zonal Offices and 10 Branches were inspected by the Regional Implementation Offices, Department of official language, Ministry of Home Affairs.
Official Language inspection of 20 zones of the bank and 11 departments of the Head Office was conducted by the Head Office.
25.7 Â Â Â Town Official Language Implementation Committee
In addition to the Head Office, convener of Narakas (Bank), Kolkata, our Ajmer, Bhagalpur and Baleshwar zonal offices and LDM Rupnagar under Chandigarh zone, LDM Nahan under Shimla zone and LDM Bilaspur under Dharamshala zone are the conveners of Narakas.
26. GENERAL ADMINISTRATION DEPARTMENT
Our Bank is committed towards promotion of renewable energy. We have received green energy certificate from CESC for our India Exchange Building.
As part of our commitment, we have installed three (3) Roof Top Solar panel of 30 KWP capacity at Executive Training Centre, New Town, 15 KWP at Science City Ahmedabad and 3KWP at New Cloth market Ahmedabad. We have identified 26 more Bank owned buildings across the country for installation of roof top solar energy of capacity around 698.8 KWP.
Bank has initiated centralized issuance of chequebooks and has also entered into a tie-up arrangement with India Post for dispatch of chequebooks.
At UCO Bank, we recognize the important role that strong relationships with regulatory bodies play in our commitment to compliance and transparency. We actively engage with regulators through diverse channels and initiatives to promote trust and uphold our responsibility to treat customers fairly while effectively mitigating risks. By aligning our strategic priorities, we strive to foster a robust compliance culture throughout the Bank.
Regular meetings with regulatory authorities are essential to our engagement strategy. These sessions create a platform for open dialogue, allowing us to proactively address regulatory concerns, seek invaluable guidance, and share updates on our operational activities.
The bank has established an independent Compliance Department, led by the General Manager and Chief Compliance Officer, dedicated to ensuring adherence to a wide range of statutory and regulatory guidelines that govern our operations.
The primary function of this department is to oversee compliance with statutory, regulatory, and internal guidelines for both domestic and international operations. It acts as the single point of contact for the Reserve Bank of India (RBI) and ensures the seamless implementation of Risk-Based Supervision (RBS) in alignment with the current SPARC framework.
Our Board has approved a comprehensive Compliance Function Policy, which is crafted in accordance with RBI guidelines and undergoes annual reviews and updates. This policy articulates the compliance philosophy of the bank, defines the role and structure of the compliance vertical, and outlines the composition of its staff and their specific responsibilities.
Further, the Compliance Department conducts regular testing exercises to verify adherence to RBI guidelines and instructions, thereby reinforcing our commitment to maintaining high standards of compliance and operational integrity.
During FY 2024-25, to further enhance compliance monitoring, the bank has launched the Compliance Manager Tool, which harnesses advanced technology to create a comprehensive, enterprise-wide compliance solution featuring integrated workflow tools. This innovative tool streamlines internal processes and promotes efficiency in compliance oversight.
Further, the bank has introduced an individual-level compliance self-certification tool aimed at cultivating a strong culture of compliance in a dynamic environment. Each employee will submit self-certifications quarterly, with specific regulations assigned according to their role or job profile. This tailored approach ensures that compliance requirements are relevant and applicable to each employee's daily work responsibilities.
The Compliance Department plays a critical role in overseeing the compliance functions of our overseas establishments, ensuring they adhere to their respective territory-based compliance policies as well as KYC, AML, and CFT standards. Each overseas branch is equipped with a dedicated compliance officer who is responsible for managing compliance activities specific to their location.
These branches diligently comply with all applicable regulatory requirements set forth by their host countries and regularly submit confirmations and compliance sustainability reports. This robust oversight framework ensures that we maintain a high standard of compliance globally, safeguarding our commitment to regulatory integrity and responsible banking practices.
28. Â Â Â BOARD OF DIRECTORS28.1 Â Â Â Corporate Governance
The Bank is dedicated to upholding strong Corporate Governance, guided by its core values of transparency, professionalism, and accountability. By embedding these principles into its operations, the Bank strives to maximize the shareholder value while maintaining integrity in all its dealings.
To ensure effective oversight, the Board of Directors has established various specialized committees to monitor key aspects of the Bank's business. Additionally, the Bank conducts regular reviews of its systems and processes at multiple levels to proactively identify and address potential vulnerabilities, fostering resilience and operational excellence.
The Board firmly believes that sound governance is fundamental to building trust, loyalty, and goodwill among the clients, business partners, employees, and investors. Furthermore, it reinforces the Bank's reputation as a responsible and respected institution within the society.
28.2 Â Â Â Changes in the Board of Directors
⢠   The tenure of Dr. Sanjay Kumar, Govt. Nominee Director on the Board of the Bank concluded on 12.05.2024.
⢠   Shri. Sudhir Shyam, has been appointed as the Govt. Nominee Director on the Board of the Bank w.e.f. 13.05.2024.
⢠The tenure of Shri. Rajesh Kumar, RBI Nominee Director on the Board of the Bank concluded on 04.08.2024.
⢠Dr. Sarada Prasan Mohanty has been appointed as the RBI Nominee Director on the Board of the Bank w.e.f. 05.08.2024.
⢠   Shri. Pramoda Ranjan Mishra, the Shareholder Director of the Bank has tendered his resignation from his post w.e.f. 14.11.2024 on account of his selection as the Chair Professor of National Insurance Academy, Pune.
⢠   The tenure of Shri. Anjan Talukdar and Shri. Ravi Kumar Agrawal, part-time non-official directors concluded on 20.12.2024.
⢠   As part of its commitment to sound governance, the Bank has nominated Ms. Rachna Khare as Shareholder Director, effective January 10th, 2025. Her expertise and leadership will further strengthen the Bank's governance framework and strategic direction.
28.3 Meetings of the Board of Directors & its various Sub-committees
Details of meeting held during the FY 2024-25 is as follows:
Twelve meetings of the Board of Directors were held. The number of meetings of various Committees of the Board held during the period is given below:
|
Sl. No. |
Name of the Committee |
No. of Meetings held |
|
1. |
Management Committee of the Board |
15 |
|
2. |
Audit Committee of the Board |
09 |
|
3. |
Risk Management Committee of Board |
07 |
|
4. |
Stake Holders' Relationship Committee of Board |
01 |
|
5. |
Special Committee of the Board for Monitoring of Large Value Frauds |
03 |
|
6. |
Customer Service Committee of the Board |
04 |
|
7. |
Committee on HR Related Issues of the Bank |
08 |
|
8. |
Nomination and Remuneration Committee of the Board |
01 |
|
9. |
Committee of the Board for Disposal of Appeals against Non-Promotion |
01 |
|
10. |
IT Strategy Committee of the Board |
05 |
|
11. |
Board Level Committee for Monitoring Recovery in NPA Accounts |
04 |
|
12. |
Review Committee (Wilful Defaulters) |
03 |
|
13. |
Performance Evaluation Committee of the Board |
01 |
|
14. |
Credit Approval Committee |
33 |
|
15. |
Meeting of Independent Directors |
02 |
|
16. |
Board Level Corporate Social Responsibility Committee (BLCSRC) |
02 |
28.4 Â Â Â Statement of Directors' Responsibility
The Board of Directors confirm that in the preparation of the annual accounts for the year ended March 31, 2025, the applicable accounting standards have been followed along with proper explanation relating to material departures, if any. The accounting policies framed in accordance with the guidelines of Reserve Bank of India, were consistently applied. Reasonable and prudent judgments and estimates were made so as to give a true and fair view of the state of affairs of the Bank at the end of the financial year and of the profit of the Bank for the year ended March 31, 2025. Proper and sufficient care was taken for the maintenance of adequate accounting records in accordance with the provisions of applicable laws governing banks in India; and the accounts have been prepared on an on-going basis. Internal financial controls have been laid down by the bank for ensuring orderly conduct of business.
The Board of Directors of the Bank welcomes Shri Sudhir Shyam, Govt. Nominee Director, Dr. Sarada Prasan Mohanty, RBI Nominee Director and Ms. Rachna Khara, Shareholder Director nominated on the Board during the year 2024-25 and look forward for their valuable inputs towards the growth of the Bank. The Board acknowledges the valuable contributions of Dr. Sanjay Kumar, Govt. Nominee Director, Shri Rajesh Kumar, RBI Nominee Director, Shri Pramoda Ranjan Mishra, Shri Anjan Talukdar and Shri Ravi Kumar Agrawal, both part-time non-official Directors of the Bank, whose tenure completed during the financial year 2024-25.
The Board thanks our customers, vendors, shareholders, business associates and correspondent banks for their continued support during the year. The Board remains thankful to the Government of India, Reserve Bank of India and other regulatory authorities for their support and valuable guidance and look forward to their continued support in the future.
The Board also thanks the staff unions/associations for the support extended by them. The Board place on record their deep appreciation for the dedication and contribution made by each employee at all levels. Our resilience to meet challenges was made possible by their hard work, solidarity, co-operation and support.
   Share of low cost deposits (CASA), in domestic deposits decreased from 39.25% as on 31.03.2024 to 37.91 % as on 31.03.2025.
   Lending to Micro Enterprises stood at Rs. 22,957 crore as on 31.03.2025 which constituted 13.52% of ANBC as against the mandatory target of 7.50%.
   34 Zones have achieved MSME business target of FY 2024-25.
   UCO Utkarsh" Scheme aims at providing financial support at preferential terms to students who have secured admissions in Premier Educational Institutes.
⢠   Aspire 2.0 - loan scheme for financing meritorious student for study abroad with improved features.
⢠   PM Vidyalakshmi scheme-Pradhan Mantri Vidyalaxmi" (PM-Vidyalaxmi), a Central Sector Scheme to provide financial support to meritorious students so that financial constraints do not prevent any youth of India from pursuing quality higher education.
10.3 Â Â Â Modifications In Existing Guidelines:
⢠   Introduction of Flexi NACH Mandate in retail loans for enabling flexible repayment option.
⢠   Revamping of Gold loan scheme was also carried out during the FY 2024-25.
⢠   UCO Skill loan scheme modified.
⢠   Introduction of Nomination facility for gold loan accounts.
   Bank has increased the number of Specified persons (SP) substantially for the FY 2024-25 for felicitating Bancassurance business as per regulatory guidelines.
   Identification of accounts for referring to NCLT and invocation of personal guarantee through NCLT and attachment of their properties.
⢠   Restructuring and allowing handholding operations in eligible cases.
⢠   OTS in eligible NPA accounts both under "Lakshya Rin Mukti" and Normal OTS Scheme.
⢠   Introduction of UCO Adalat concept for one to one negotiation with borrowers from HO/ZO through senior executives to explore the OTS/Resolution of the accounts. Preferably, every third Friday of the Month would be this camp day.
⢠   Participation in National Lok Adalat for recovery in small accounts.
⢠   Organising special recovery campaigns such as "Kishan Karz Mukti Yojana" for KCC borrowers and "Mudra Manthan" for Mudra accounts.
⢠   CIBIL updation of the default borrowers.
⢠   Contact with NPA borrowers for up-gradation and recovery in soft NPAs as well as old NPAs through War Room and Cluster Approach.
⢠   Timely marking of NPA in respective portal and claim for all accounts covered under CGTMSE / ECGC etc in timely manner.
⢠   Follow up for reduction of NIL performing Branches.
   Bank has strengthened the Legal Management System with the objective to facilitate different departments at Head Office & Zonal Offices for monitoring status of SARFAESI actions, legal matters etc. for effective monitoring and early resolution of accounts.
⢠   Mega Recovery Camps are being organized to augment recovery in NPA accounts.
⢠   Mega e-auction of properties under SARFAESI is being conducted on regular basis. Properties in NPA accounts are uploaded and put for auction on BAANKNET 'e-Bikray' a common web portal of PSB Alliance Pvt Ltd.
14. CREDIT MONITORING
14.1 Â Â Â Bank has strengthened Credit Monitoring mechanism through Enhanced Monitoring as under:
⢠   Early Warning Signal System (EWS): EWS system has been extended and a software package has been implemented which is capable of generating 42 EWS triggers as suggested by RBI along with 84 EWS triggers as suggested under EASE (Enhanced Access and Service Excellence) Agenda. Also, 3 customised alerts have been implemented under EWS. New EWS Framework based on exposure has been introduced w.e.f 22nd Mar'24 and the maker-checker concept has also been implemented in the said framework. One new EWS Alert C4-addition of beneficiary in e-Banking /Corporate m-Banking in CC/OD account has been introduced.
Mar 31, 2024
he Board of Directors have pleasure in presenting the Directors Report: 2023-24 together with the Balance Sheet as on 31st March, 2024 and Profit & Loss Account for the financial year ended 31st March, 2024.
Our Bank has shown steady performance during the year and has made an Operating Profit of Rs. 4,576.25 crore for FY ended March 31, 2024. This reflects a significant growth of 5.43% from an Operating Profit of Rs. 4,340.67 crore for FY ended March 31, 2023. Net profit reduced to Rs. 1,653.74 crore during FY ended March 31, 2024 as- against Net Profit of Rs. 1,862.34 crore for the FY ended 31.03.2023 on account of higher provisioning. Bank has transferred Rs. 413.44 crore, 25% of current year profit to statutory reserve fund in compliance with Banking Regulation Act 1949.
Gross NPA has reduced to Rs. 6,463.30 crore (3.46%) as on
31.03.2024    from Rs. 7,726.46 crore (4.78%) as on 31.03.2023. Total income stood at Rs. 25,119.87 crore for the year ended
31.03.2024    registering a growth of 24.61% over the previous year ended 31.03.2023. Provision Coverage Ratio of the Bank has increased to 95.38% as on 31.03.2024 from 94.5 % as on
31.03.2023.
Following are the highlights of financial performance indicators as on 31.03.2024.
|
Amount in Rs. Crore) |
||
|
Particulars |
 Year ended 31.3.2023 |
 Year ended 31.3.2024 |
|
Total Deposits |
249337.74 |
263129.77 |
|
International Deposits |
8,597.03 |
13164.77 |
|
Domestic Deposits |
240740.71 |
249965.00 |
|
CASA Deposits (Domestic) |
91054.36 |
98120.03 |
|
Current Account Deposits |
10037.45 |
12091.39 |
|
Savings Bank Deposits |
81016.91 |
86028.64 |
|
Domestic CASA to Domestic Deposits (%) |
37.82 |
39.25 |
|
Total Advances |
161629.45 |
186877.05 |
|
 Amount in Rs. Crore) |
||
|
 |
Year ended 31.3.2023 |
Year ended 31.3.2024 |
|
Intemationai Advances |
22197.50 |
24604.95 |
|
Domestic Advances |
139431.95 |
162272.10 |
|
Totai Assets |
300862.99 |
323691.45 |
|
Net interest income (Nil) |
7343.13 |
8100.78 |
|
Other income |
2508.46 |
3265.53 |
|
Of which - Trading gains |
375.53 |
396.95 |
|
Nil + Other income |
9851.59 |
11366.31 |
|
Operating Profit |
4340.67 |
4576.25 |
|
Provisions other than tax |
1435.56 |
2007.39 |
|
Provision for NPAs and Bad debts written off |
1295.57 |
1068.27 |
|
Profit before Tax |
2905.11 |
2568.85 |
|
Provision for Tax# |
1042.77 |
915.11 |
|
Net Profit |
1862.34 |
1653.74 |
|
of which DTA 1011.07 895.74 |
||
|
Key Performance Indicators |
fEkftt eT 2023 FY 2023 |
filkk c|if 2024 FY 2024 |
|
Cost of Funds |
3.86 % |
4.63% |
|
Yieid on advances |
7.46% |
8.46% |
|
Net interest Margin |
2.87% |
2.92% |
|
Cost-income Ratio |
55.94% |
59.74% |
|
Capital Adequacy Ratio (CAR) |
||
|
Particulars |
As on 31.03.2023/iE |
As on 31.03.2024/iE |
|
Capital Adequacy Ratio- Basel iii |
16.51% |
16.98% |
|
CET-i |
13.51% |
14.14% |
|
Tier i |
13.96% |
1 4.54% |
|
Tier ii |
2.55% |
2.44% |
The International Monetary Fund (IMF), in its World Economic Outlook, April 2024, has forecasted that the world economy will continue to grow at 3.2 percent during both 2023-24 and 202425. This is at the same pace of growth as in 2022-23. The global economic activity maintained its position, despite warnings of stagflation and global recession, on account of better performance of the advanced economies like The United States, Euro Area and Germany, where growth is expected to rise from 1.6 percent in 2023 to 1.7 percent in 2024 and 1.8 percent in 2025. This will however be offset by a slight slowdown in emerging market and developing economies from 4.3 percent in 2023 to 4.2 percent in both 2024 and 2025. The forecast for global growth five years from now is 3.1 percent, which is the lowest in decades. Global inflation is forecast to decline steadily, from 6.8 percent in 2023 to 5.9 percent in 2024 and 4.5 percent in 2025. It is expected that the advanced economies will return to their inflation targets sooner than emerging market and developing economies, in the midst of unwinding supply-side issues and restrictive monetary policy.
The Reserve Bank of India's (RBI) Monetary Policy Committee (MPC) has kept its growth projection for India's GDP at 7.0 percent for the financial year 2024-25. Quarter wise growth for FY25 are estimated at 7.1 percent, 6.9 percent, 7.0 percent and 7.0 percent respectively. The growth rate of GDP during 2023-24 reflects that Indian economy has demonstrated resilience and maintained healthy macro-economic fundamentals, despite global economic challenges. Strong domestic demand for consumption and investment, along with Government's continued emphasis on capital expenditure are seen as among the key driver of the GDP in FY 2023-24. On the supply side, industry and services sectors were the primary growth drivers in FY2023-24. India has registered the highest growth among major advanced and emerging market economies during this period. As per the International Monetary Fund (IMF), India, with an estimated nominal GDP of 3.94 trillion dollar in 2024, is the fifth largest economy in the world. The IMF has also forecasted that the Indian economy will grow at 6.8 percent in 2024-25.
The Reserve Bank of India (RBI) has kept its forecast for retail price inflation for financial year 2024-25 at 4.50 percent. It has also released quarter wise inflation forecast for Q1FY25 at 4.9%, Q2FY25 at 3.8%, Q3FY25 at 4.6% and Q4FY25 at 4.5%. India's consumer price index, (CPI)-based, eased from 4.85% in March 2024 to 4.83% in April 2024. The April 2024 figure is high when compared to April 2023 figure of 4.70%.
Food inflation for April 2024 is at 8.70%, which has increased from 8.52% of March 2024. The core inflation, which is the CPI inflation excluding food and fuel, has remained stable indicating that it is primarily food price shocks that are causing the headline inflation to deviate from the target rate of 4%. Double-digit inflation exhibited by vegetable, pulses, and spices has kept the food inflation momentum high which is being combatted by
the government through export prohibitions to stabilise domestic prices.
PSU banks have earned a net profit of about Rs 68,500 crore during the first six months of FY24. Banks have been raising funds from the market to augment their resources. During the Interim Budget 2024, for the second straight year, no allocation was made by the Finance Ministry for the recapitalisation of public sector banks. This signals that the health of these PSBs is in line with expectations. The Reserve Bank of India has maintained that the country's scheduled commercial banks are healthy and can withstand macroeconomic shocks.
The Enhanced Access and Service Excellence (EASE) Reforms of the Department of Financial Services (DFS) have played a crucial role in transforming Indian Scheduled Commercial Banks (SCBs), emphasizing digital customer experience, analytics-driven business improvement, tech and data-enabled capability building, and HR operations enhancement. The gross nonperforming assets (GNPA) ratio continued to decline to a multiyear low of 3.2 per cent and the net non-performing assets (NNPA) ratio to 0.8 per cent in September 2023, as reported in RBI's half-yearly Financial Stability Report (FSR). The report said the soundness and resilience of India's banking sector have been underpinned by ongoing improvement in asset quality, enhanced provisioning for bad loans, sustained capital adequacy and a rise in profitability. At the same time, RBI has instructed banks and NBFCs to curb ever-greening through Alternative Investment Funds (AIFs). The RBI prohibited lenders from investing in an AIF which has direct or indirect downstream investments in a company in which such lender has a loan or investment exposure.
In the realm of digital payments, the DIGIDHAN Mission, now under the DFS, has played a pivotal role in the phenomenal growth of digital payment transactions in India. The total number of transactions has surged from 2,071 crore in FY 2017-18 to an impressive 18,503 crore in FY 2023-24.
Financial inclusion remains a key focus area, with initiatives like the Pradhan Mantri Jan Dhan Yojana (PMJDY), Pradhan Mantri Jeevan Jyoti Bima Yojana, Pradhan Mantri Suraksha Bima Yojana, MUDRA, Stand Up India, and Atal Pension Yojana making significant strides. Overall, the Indian banking and financial sector have been instrumental in shaping a resilient and progressive financial landscape in 2024, contributing to the economic growth and well-being of the nation.
I. PERFORMANCE OF THE BANK DURING 2023-241. UCO's Delivery Channels:1.1 BRICK AND MORTAR NETWORK:
Bank has a geographically well-spread branch network in India and also has presence abroad. As of 31.03.2024, Bank has 43 Zones and 3230 domestic branches, 2 overseas branches (one each in Singapore and Hong-Kong) and 1 representative office has been established in Tehran, Iran.
The Global branch network over 5 years is as under:
|
March' 20 |
March'21 |
March'22 |
March'23 |
March'24 |
|
3088 |
3089 |
3074 |
3207 |
3232 |
1.2 BRANCHES & OFFICES NETWORK:
The population category-wise break-up of domestic branches as of 31.03.2023 & 31.03.2024 is given below:
The domestic branches include 6 Flagship corporate branches, 7 Asset Management branches, 4 service branches, 1 central pension processing center and 1 integrated treasury branch. Further 25 MCU branches, 39 Retail loan Hubs, 28 Agriculture Loan Hubs, 21 SME Hub and 72 currency chests are also functioning across the country attached to the major city branches of various centres.
2. BUSINESS PROFILE:2.1.GLOBAL:
>    Global business of the Bank stood at Rs. 4,50,007 crore as of 31.03.2024 compared to Rs. 4,10,967 crore showing an increase of 9.50% over March 2023.
> Â Â Â Global deposits has increased by 5.53% as of 31.03.2024Â and stood at Rs. 2,63,130 crore compared to Rs. 2,49,338Â crore as of 31.03.2023.
>    Global advances increased by 15.62% and stood at Rs. 1,86,877 crore compared to Rs. 1,61,629 crore as of
31.03.2023.
>    Overall domestic business of the Bank has increased by 8.43% and has reached Rs. 4,12,237 crore as on
31.03.2024 from Rs. 3,80,173 crore as on 31.03.2023.
>    Domestic deposits increased by 3.83% and stood at Rs. 2,49,965 crore as on 31.03.2024 from Rs. 2,40,741 crore as on 31.03.2023..
>    Domestic advance has shown a growth of 16.38% to Rs.1,62,272 crore as on 31.03.2024 from Rs. 1,39,432 crore as on 31.03.2023.
>    CASA deposits increased by 7.76% on Y-o-Y basis and stood at Rs. 98,120 crore, SB deposits grew by 6.19% and stood at Rs. 86,029 crore. Current deposits stood at Rs. 12,091 crore as on 31.03.2024 compared to Rs. 10,037 crore as on
31.03.2023, Â Â Â showing a growth of 20.46% on Y-o-Y basis.
>    Share of low cost deposits (CASA), in domestic deposits increased from 37.82% as on 31.03.2023 to 39.25% as on
31.03.2024.
Domestic Investment of the Bank during the year 2023-24 decreased by 1.82% from Rs. 94,692.51 crore as on 31.03.2023 to Rs. 92,970.05 crore as on 31.03.2024 largely due to redemption of Government securities.
The SLR investment of the Bank decreased by 1.71% from Rs. 67572.28 crore as on 31.03.2023 to Rs. 66,418.16 crore as on
31.03.2024 mainly due to redemption of Govt. Securities.
The Non-SLR Investment (Domestic) decreased by 2.09% from Rs. 27,120.22 crore as on 31.03.2023 to Rs. 26,551.89 crore as on 31.03.2024 mainly due to redemption in Bonds and Certificate of Deposit portfolios.
During the year 2023-24, interest income of Rs. 6119.09 crore was registered from domestic investment.
3.1 Â Â Â International Business
As on March 31,2024, the Bank's total business from Overseas Branches at Singapore and Hong Kong was Rs. 37,770 crore and constituted 8.39% of the Global Business. The Overseas Business constituted of total deposit of Rs.13165 crore and total advances of Rs. 24,605 crore.
Our Bank with 65 B-Category branches across India is committed to actively cater to the needs of Exporters/Importers Community and also serve our NRI Customers. The total merchant turnover of the bank during the financial year ended on 31st March,2024 stood at Rs. 75,929 crore.
4. Â Â Â SOCIAL BANKING4.1 Â Â Â Agriculture
Agriculture Credit of the Bank grew at 13.16% annually from Rs. 21775 crore as on 31.03.2023 to Rs. 24641 crore as on
31.03.2024. The details are as under:
|
(Amount in Rs. Crore) |
|||
|
 |
 |  |
 |
|
Agriculture |
31.03.2023 |
31.03.2024 |
YoY Growth % |
|
Crop Loans |
10146 |
9222* |
-9.10* |
|
Investment Credit |
4181 |
6382 |
52.64 |
|
Agri Allied |
4261 |
5812 |
36.39 |
|
Infrastructure & Ancillary |
3187 |
3225 |
1.19 |
|
Total Agriculture |
21775 |
24641 |
13.16 |
|
of Rs.1000 Cr. issued by bank |
|||
4.2    Performance under Priority Sector Advances vis-a-vis stipulated targets of RBI in FY 23-24
UCO Bank is showing significant improvement in performance in lending to Priority Sector over the years and effectively serving the priority sector and agriculture sector with its vast network of rural and semi-urban branches.
>    As on 31.03.2024, the Priority Sector Advances (including investments & PSLC) of the Bank stood at Rs. 76537 Cr. which constituted 54.54 % of ANBC as against the mandatory target of 40%.
>    Total Agriculture Advances (including investments & PSLC) under priority sector of the Bank stood at Rs. 26348 Cr. which constituted 18.77% of ANBC as against the mandatory target of 18%.
>    Lending to Small & Marginal Farmers (including PSLC) stood at Rs.14525 Cr. as on 31.03.2024 which constituted 10.34% of ANBC as against the mandatory target of 10.00%.
>    Lending to Non-Corporate Farmers stood at Rs. 21142 Cr. as on 31.03.2024 which constituted 15.04% of ANBC as against the mandatory target of 13.78%.
> Â Â Â Lending to Micro Enterprises stood at Rs. 20049 Cr. as on
31.03.2024    which constituted 14.27% of ANBC as against the mandatory target of 7.50%.
> Â Â Â Lending to weaker sections stood at Rs. 21185 Cr. as on
31.03.2024    which constituted 15.07% of ANBC as against the mandatory target of 12.00%.
UCO Bank is the convenor of State Level Bankers Committee (SLBC) in 2 States i.e. Odisha & Himachal Pradesh. Bank also shoulders the Lead Bank responsibility in 36 districts across the country.
The Bank has moved beyond granting simple farm based credit to a more diversified rural lending strategy. We are focussing more on newly introduced products such as Agriculture Infrastructure Fund (AIF), Animal Husbandry Infrastructure Development Fund (AHIDF) and PM Formalisation of Micro Food Processing (PMFME).
The Bank continues to focus on its flagship products like KCC, Agri Gold Loans, Horticulture Loans, Financing to Self Help Groups (SHGs).
4.3 Â Â Â Credit Flow to Self Help Groups:
>    Self Help Group is one of the most important approaches for women empowerment in India. Lending to Self Help Groups present an excellent opportunity to promote micro enterprises in rural areas leading to increased employment generation and in turn income to the rural masses.
>    The advent of Self Help Groups (SHGs) concept has ensured seamless delivery of credit to the poor and has boosted the rural economy. Bank has actively promoted SHG Bank Linkages.
>    The outstanding credit to SHGs stood at Rs. 3210 Cr. covering 1.65 lakh SHGs as on March'24 and registering annual growth of 44% in outstanding amount.
>    UCO Bank received "Certificate of Appreciation" from Maharashtra State Rural Livelihoods Mission for best performing Bank amongst Public Sector Banks in SHGs Credit Linkage to Women Self Help Groups (SHGs) in Maharashtra for FY 2022-23.
5. Â Â Â Regional Rural Banks (RRBs)
UCO Bank sponsored RRB namely, Paschim Banga Gramin Bank (PBGB) is head quartered at Howrah, West Bengal with four regional offices and 230 branches as on 31.03.2024.
5.1 Â Â Â Capital position of RRB - Paschim Banga Gramin Bank
The total capital of Paschim Banga Gramin Bank as on
31.03.2024 stood at Rs.682.86 Cr. comprising Rs.341.43 Cr. from Govt. of India, Rs.239 Cr. from UCO Bank (as sponsor Bank) & Rs. 102.43 Cr. from West Bengal State Govt.
5.2    Performance of Paschim Banga Gramin Bank during 2023-24
As per audited financial results, total deposit of Paschim Banga Gramin Bank stood at Rs.6906 Cr. as on 31.03.2024, registering growth of 5.11%. Total advance reached a level of Rs.4149 Cr. with an annual growth of 10.70% 31.03.2024. CD ratio stood at 60.08 % as on 31.03.2024 as against 57.05% on 31.03.2023.
The Gross NPA stood at Rs. 339.31 Cr. as on 31.03.2024 visa-vis Rs. 351.11 Cr. as on 31.03.2023. Gross NPA to Gross Advance stood at 8.18% as on 31.03.2024 as against 9.37% as of 31.03.2023. The net NPA ratio of the RRB stood at 0.83% as on 31.03.2024 as against 3.94% as of 31.03.2023.
Paschim Banga Gramin Bank has recorded a net profit of Rs.50.65 Cr. as on 31.03.2024 as compared to net loss of Rs.55.01 Cr. as on 31.03.2023, thereby decreasing accumulated loss from Rs. 459.46 Cr. as on 31.03.2023 to Rs. 408.81 Cr. as on 31.03.2024.
6. Â Â Â Corporate Social Responsibility
Bank has taken several programmes/initiatives as a part of Corporate Social Responsibility. Few of these programmes/Â initiatives are as under:
a) Our Bank has set up 27 Rural Self Employment Training Institutes in 7 states namely Assam, Bihar, Himachal Pradesh, Odisha, Punjab, Rajasthan and West Bengal. These 27 institutes with dedicated infrastructure are devoted to impart training and skill up gradation and to mitigate the unemployment and under employment of rural youths. These institutes are set up by the Bank as a part of initiative taken up by the Ministry of Rural Development to establish dedicated training Institutions for development of entrepreneurship skills in rural youth, under Corporate Social
Responsibility (CSR). All RSETIs conducted 769 training programmes involving 23041 candidates and 10309 beneficiaries have been provided Credit Linkage of Rs.35.68 Cr. during the Financial Year 2023-24.
b)    As of 31.03.2024, Bank has set up 127 Centre for Financial Literacy (CFL) with collaboration of NGO identified by RBI namely CRISIL foundation, Dhan foundation, Aroh Foundation, HPSRLM, Swadhaar FinAssess Foundation, Gram Sathi, Awoke India, M/s Mother, M/s Aravali in the state of Assam, Bihar, Odisha, Punjab, Rajasthan , West Bengal and Himachal Pradesh. All CFLs collectively conducted 48075 camps involving 1529222 participants and 85189 beneficiaries have been provided with Bank Linkage.
c)    Bank has 36 Financial Literacy Centres (FLC) across the country wherein 16 Financial Literacy Counsellors conduct Financial Literacy Camps. During Financial Year 2023-24, the Financial Literacy Counsellors have conducted 3803 Financial Literacy Camps thereby spreading Financial Awareness to 133313 participants as of 31st March 2024.
7. FINANCIAL INCLUSION7.1 Â Â Â Pradhan Mantri Jan Dhan Yojna (PMJDY)
Bank has been allotted with 16281 villages across the country to provide inclusive Banking Facility in unbanked / under banked areas. In line with DFS directives these villages were categorized into 4122 Sub Service Areas (SSAs). Out of these 4122 SSAs, 3656 SSAs are covered though BC agents and 466 SSAs in tier 5 villages (Population above 5000) are covered through Branches for ensuring universal Financial Inclusion and to bring the entire population under ambit of structured Banking facility.
Bank has added 2892 Bank Mitras making the total BC deployment to 9808 (highest addition of new BCs till now). During FY 2023-24 total 341.34 lakhs transactions with 22% y-o-y growth amounting Rs. 13408.72 crore with 19.33% y-o-y growth (averaging every month about 28.45 lakhs transactions amounting Rs.1117.39 crore) carried out through Micro ATMs used by BC Agents.
Bank has garnered deposit of Rs. 6584.94 crore at the end of March 24 in 136.37 lakhs PMJDY accounts registering 16% growth in PMJDY saving deposit and 10% growth in PMJDY account opening. The average per account balance under PMJDY accounts increased from Rs. 4550 to Rs. 4829. Bank has opened 12.12 lakhs PMJDY accounts during FY 2023-24.
Bank has distributed around 35.37 lakhs RuPay Cards to the eligible PMJDY account holders. During the FY 2023-24 average transactions per month to the order of 1.64 lakhs took place through Rupay Cards on Micro ATMs used by BC agents amounting monthly average of Rs.78.96 crore.
7.2 Â Â Â Aadhaar Seeding & Authentication
As per revised UIDAI guidelines, Aadhaar number can be given voluntarily as identity proof for opening customer accounts. Aadhaar is required for availing benefits under various government welfare schemes. By 31st March 2024, around 85% operative saving accounts have been seeded with Aadhaar number and Aadhaar authentication has been done in 44% of operative saving accounts.
7.3 Â Â Â Micro credit-Overdraft facility
Number of PMJDY accounts using the OD facility in the bank as on March 2024 is 3.71 Lakhs aggregating sanctioned amount of Rs.75.47 crore. As per Finance Minister's budget announcement (FY 2020-21), an overdraft of Rs. 5000/- is allowed to verified women SHG member in their PMJDY Accounts
7.4 Â Â Â Social Security Schemes
Working on the government's theme of providing social security to hitherto unbanked masses, Bank has implemented Insurance and Pension products namely, Pradhan Mantri Jeevan Jyoti Bima Yojna (PMJJBY), Pradhan Mantri Suraksha Bima Yojna (PMSBY), Atal Pension Yojna (APY) through its Branchs and BC network. Under PMJJBY scheme, 23.37 lakh subscribers availed life insurance of Rs. 2 lakhs and under PMSBY scheme 52.80 lakh customers availed accidental insurance of Rs. 2 Lakh. So far a total of 12027 claims are settled under PMJJBY and 1995 claims are settled under PMSBY Further, total subscribers under Atal Pension Yojna crossed 10.72 lac till end of FY 23-24. During FY 23-24 2.44 lakh customers have been added to APY Fold with Y-to-Y growth of 29.47%.
7.5    PMJJBY and PMSBY enrolment through M-Banking, e-Banking, SMS
Electronic mode of enrolment of PMJJBY and PMSBY was made available during FY 21-22 in UCO E-Banking and UCO m banking app. A new mode of enrolment through SMS message was introduced in FY 2021-22. Through the facility, customers can self-enrol by sending SMS from their registered mobile numbers. Incentive for digital self-enrolment is being passed on to the customers by the way of reduced premium.
PMJJBY and PMSBY enrolment through Jansuraksha Portal:Â During Last FY through our all channels, PMJJBY &Â PMSBY enrolment has been started.
7.6 Â Â Â DFS Target and Achievement
a)    Saturation Drive under PMJSS (Pradhan Mantri Jan Surakshya Schemes, i.e. PMJJBY, PMSBY, APY): In the backdrop of honorable Prime Minister's Independence Day speech 2021, Department of Financial Services (DFS) directed Banks (vide their Office Memorandum no. F.no.21 (23)/2014-FI (Mission) dated 27-09-2021) to implement Saturation Drive for PMJDY account opening & Jansuraksha Schemes to connect every eligible person with the Government's Insurance and Pension scheme.
b)    Saturation Drive in PMJDY Account: The target of opening 9 lakhs PMJDY accounts has been given by DFS to be achieved during FY 2023-24. We have achieved 12.72 lakh (UCO-12.12 lakh & PBGB-0.60 Lakh) with an achievement of 141% of the target.
c) Saturation Drive in PMJSS Scheme: We have been allotted the target of active enrolment under PMJJBY and PMSBY for policy year 2023-24(starting from 1 June 2023 to 31st May 2024). The Target of active enrolment under PMJJBY is 21.44 lakh while under PMSBY is 52.49 Lakh. We have achieved 76% under PMJJBY while 89% under PMSBY against target up to 31st March 2024.
7.7 Â Â Â Progress in Aspirational Districts
With a view to enhance the penetration of Financial Inclusion in the Aspirational Districts, Department of Financial Services (DFS) launched Targeted Financial Inclusion Intervention Programme (TFIIP) in January 2020 in 40 ADs and extended it to all 112 Aspirational Districts (ADs) in February 2021. Our Bank has been allotted 7 districts namely Begusarai, Goalpara, Barpeta, Dhubri, Banka, Dhenkanal, Darrang. Some of the key facts related to Aspirational Districts allotted to us have been given below:
> Darrang and Goalpara District of Assam State are among the top performers (since inception of programme) under Financial Inclusion & Skill Development theme in the champions of change Dashboard started by NITI Aayog to monitor the progress in the Aspirational Districts.
7.8    Implementation of Aspirational Block Program (ABP) in 500 identified Blocks of the country
Prime Minister on 07th Jan 2023, launched Aspirational Block Programme (ABP) on the lines of the Aspirational District Programme, which is aimed at improving performance of blocks lagging on various development parameters. The programme plays emphasis on improving the socio-economic conditions of these backward blocks. Aspirational Block Programme is started in 500 blocks of the country with approach of reaching the last mile and policy of saturation. It will initially cover 500 blocks across 31 states and Union Territories, with over half of these blocks located in six states - Uttar Pradesh, Bihar, Madhya Pradesh, Jharkhand, Odisha and West Bengal. As intimated by DFS, the provisional Key Performance Indicators (KPIs) for ABP is as below:
⢠   No. of banking outlet (branch/BC/IPPB) located in the block
⢠   No. of villages in the block not covered by a banking outlet within 5 km
7.9 Â Â Â On-boarding of 9000 Business Correspondents (BCs)
During the FY2023-24 we have appointed 2892 Business Correspondents (BCs) in under-banked and unbanked areas taking the total BC force to 9808.
7.10 Â Â Â Aadhaar Enrolment Centre
A total no of 300 Aadhaar Enrolment centres has been set up covering 10% of the branches as per UIDAI guidelines in our Bank. Bank has outsourced the Aadhaar Operator activity to Corporate BCs in order to create efficient operation of AECs and optimum use of Bank's staff.
Consistent, efforts under Financial Inclusion have given good results and Bank has started gaining both tangible and intangible benefit out of these activities. While decongestion of branches, reduction of transaction cost and increase in CASA base are intangible benefits of FI Project. Tangible benefits have come in the form of commission earned under various products. Bank has earned Rs.298.92 lakhs in PMJJBY, Rs.50.39 lakhs in PMSBY and Rs.371.24 lakhs in APY as commission during FY-2023-24.
Government Business cell handles Small Savings Deposit Scheme of GOI, collection of Direct and Indirect Taxes, issuance of Sovereign Gold Bond , Floating Rate Savings Bonds, Central and state Government Pension, National Social Security Scheme -Atal Pension Yojna (APY) & National Pension scheme (NPS).
There was an increase in total account base under Public Provident Fund (PPF) from 139106 as on 31.03.2023 to 158544 as on 31.03.2024 registering 13.97 % Y-o-Y growth and in Sukanya Samriddhi Yojna (SSY) from 110977 as on 31.03.2023 to 133065 as on 31.03.2024 registering 19.90 % Y-o-Y growth.
There was an increase in accounts opened under APY scheme from 828635 as on 31.03.2023 to 1072331 as on 31.03.2024Â registering 29.41% Y-o-Y growth.
Bank gives emphasis to promote Govt. Business product to increase fee based income. Turnover Commission of Rs.29.00 crores approximately earned in FY 2023-24 from various Government Business products i.e. Tax Collection, Pension, Small Savings Schemes, APY, Bond Issuance etc. Business performance has also been improved under Govt. Business products substantially.
> Â Â Â Bank's MSME portfolio grew by 13.53% (Y-o-Y) as of
31.03.2024
>    Quarter-wise MSME Business Performance during FY 2023-24
|
(Amount in ' Crore) |
|||
|
Jun 23 |
Sep 23 |
Dec 23 |
Mar 24 |
|
28,982 |
30,699 |
32,160 |
32,714 |
> Â Â Â Cumulative disbursement of Mudra loans stood at Rs.6,113Â crore as on 31.03.2024 registering achievement of 101.88%Â against allocated disbursement target of Rs. 6,000 crore.
>    Bank along with RRB has achieved 92% of allotted target required to be achieved by 31.03.2025 under Stand Up India Scheme within 31.03.2024.
>    Bank sanctioned loans to 3,334 units amounting to Rs.396 crore under Prime Minister Employment Generation Programme (PMEGP) Scheme in FY 2023-24.
>    Bank sanctioned loans to 1,58,003 Street Vendors under Prime Minister Street Vendors AtmaNirbhar Nidhi (PM SVANidhi) Scheme.
|
> TReDs Business: |
 |  |  | |
| Â | Â | Â |
(Amount in ' Crore) |
|
|
Mar 23 |
Jun 23 |
Sep 23 |
Dec 23 |
Mar 24 |
|
414 |
461 |
446 |
575 |
842 |
a) Â Â Â Introduced Seven MSME Loan Schemes:
i. Â Â Â UCO Textile
ii. Â Â Â UCO Start-Up
iii. Â Â Â UCO Vahan
iv. Â Â Â UCO e-vahan
v. Â Â Â UCO Equipment Finance
vi. Â Â Â UCO Merchant Credit Card
vii. Â Â Â PM Vishwakarma
b) Â Â Â Introduced Two State Specific Schemes
i.    West Bengal Bhabishyat Credit Card (WBBCC) (West Bengal)
ii.    Rajiv Gandhi Swarozgar Yojana-2023 (Himachal Pradesh )
c)    Co-lending: Bank signed MoU with M/s UGRO Capital Pvt Ltd on 26.05.2023 for Co-lending of MSME loans.
d)    SME HUB: Introduced 10 New SME Hubs at prominent business centres. Now 21 SME Hubs are operational across the country.
e)    CSR: Signed MoU with M/s Poornatha and Company for conducting Online Training Program (UCO Empower) for Bank's MSME customers in vernacular language under Bank's CSR initiative.
f)    MSME Campaigns: Two MSME Campaigns, 'MSME Champion' and 'MSME Unnati' have been launched during FY 2023-24 to augment MSME business.
10. RETAIL10.1 Â Â Â Introduction of New Products:
a)    STP Pension Loan: Digital Pension Loan with special concessions in ROI.
b)    UCO E-Vehicle Loan: Loan scheme for purchase of electric vehicle with special ROI.
c)    UCO Elite Two Wheeler Loan: Specialized loan for purchase of high-end motorcycles.
d) Â Â Â Top Up Gold Loan: Facility for additional loan against prepayment in existing gold loans.
e)    Over Draft Gold Loan: Overdraft product against the pledge of gold ornaments.
f)    Personal Loan for GTRE Employees: Customized personal loan scheme for GTRE, Bangalore employees.
g)    UCO Suryodaya Loan Scheme: Finances grid-connected RTS plants for residential purposes, supporting sustainable energy initiatives.
h)    Mo Ghara Housing Scheme: Special Rural Housing Scheme launched in Odisha.
i) Â Â Â STP Top Up Gold Loan
j) Â Â Â STP - Re-pledge Gold Loan.
10.2 Â Â Â Launch of Business Boosting Campaigns:
To invigorate our business operations and to provide a guideline
to field functionaries, we have launched various campaigns
aimed at activating and motivating Branch Heads, RLH Heads,
and Zonal Heads.
a) Â Â Â Shubharambh Campaign
b) Â Â Â Sankalp Campaign
c) Â Â Â Star Performers FY 23-24
d) Â Â Â UCO Cricket Utsav
e) Â Â Â Mission 24
10.3 Â Â Â Modification of Existing Products in FY 23-24
a)    Introduction of special concessions for Take-over of Home Loans and Home Loans to Women.
b) Â Â Â Revamping of Pre-Used Car Loan Scheme
10.4    Other Initiatives to improve asset quality and under writing standards
a. Â Â Â Increase in Minimum CIR Score Requirement.
b. Â Â Â Mandatory usage of Fin-tech Services for data validation.
c. Â Â Â Implementation of Auto Recovery mechanism.
d. Â Â Â Increase in coverage of Branches under Hubs.
e.    SOP to monitor home loans sanctioned based on tripartite agreement.
f.    Empanelment of Corporate Gold Appraisers for standardization of Appraisal/Reappraisal of Gold.
A dedicated Resources Vertical was launched on 23rd Aug 2023 to focus on mobilization of CASA & term deposits. In which three cells was created i.e. Savings, Current & Govt. Deposit. The Vertical is headed by GM & the cells are headed by DGMs.
11.1 Â Â Â Key Accomplishments :
⢠   Current Deposit has grown at 20.46% (Y-O-Y).
⢠   Core Current Deposit has grown at 23.07% (Y-O-Y).
⢠   Savings Deposit has grown at 6.19% (Y-O-Y).
⢠   CASA Deposit has grown at 7.76% (Y-O-Y).
⢠   Retail Term Deposit has grown at 7.20% (Y-O-Y).
⢠   Total Deposit has grown at 5.53% (Y-O-Y).
⢠   Current Account opening has grown by 56% (Y-O-Y).
⢠   RD account opening has grown by 330% (Y-O-Y).
11.2 Â Â Â Initiatives taken in FY 2023-24:a) Â Â Â Product & Scheme Initiatives taken:
⢠   Introduction of Tiered Current Deposit Products: UCO Business & UCO Business Plus
⢠   Modification in 'UCO Suvidha Salary' savings account with increase in Limit of Accidental Death Insurance Cover.
⢠Launched of 'UCO 400' Special FD Scheme
⢠Launched of 'UCO 300' Special FD Scheme
⢠   Introduction of Tab Banking for opening of Savings account.
⢠   Modification in 'UCO Sowbhagya' Flexi Recurring Deposit.
b) Â Â Â Agreement & Tie-Up Initiatives:
⢠   Salary Tie up with West Bengal Govt. Departments.
⢠   Tie Up for integration of offline and online electricity bill collection for consumers of one of DISCOM of state of Gujarat. 1
⢠   Payment and collection module integration on major ports through Sagar Sethu National Logistic Portal.
⢠   Tie up with one co-operative bank of Gujarat for their cash arrangement.
⢠   Developed a SSO Dashboard for Monitoring and Updation of CA authorization pending, inoperative to operative current accounts and saving accounts, casa bifurcation and business performance.
⢠   Formation of a Zonal Level Committee for providing approval before closing of Current Accounts.
⢠   Development of Zonal Resources Team Visit Report Module in SSO.
⢠   'UCO Connect' visit report module developed in SSO (Single Sign On) for visiting top 200 customers of branches/ zones.
⢠   Creation of CUSTOMER EXPERIENCE CELL to address root causes and enhance the complaint resolution process.
⢠   Utilization of Call Centre for calling to CASA customers for scheme upgradation for maximum facilities, maintaining minimum balances, inoperative to operative conversion, etc.
11.3 Future Initiatives to be taken in FY 2024-25:Product Initiatives to be taken in FY 2024-25:
⢠   Introduction of Tiered Savings Products: UCO Privilege & UCO Royal
⢠   'UCO Saathi' current account scheme for co-operative banks/ RRBs.
⢠   Tierized Savings & Current Deposits Products for women customers.
⢠   'UCO Sanchayika' RD for female customers.
⢠   Introduction of 'Green Deposit' Product.
⢠   Modification in 'UCO FFD' Flexible Fixed Deposit.
⢠   Salary Product for Armed & Paramilitary Forces.
a) Agreement & Tie-Up Initiatives:
⢠   Integration under process for offline and online electricity bill payment and collection in the state of Gujarat, Madhya Pradesh & Uttar Pradesh.
⢠   MOU with NSCL for e-FDR.
⢠   Tie up with different corporates for mobilisation of UCO Suvidha Salary accounts.
⢠   Introduction of Current Account in Tab Banking.
⢠   Digitization of process of waiver of service charges in SSO Portal.
⢠   Modification in Current Account authorization process.
⢠   Utilization of data analytics for customer profiling and to offer customized product to them.
⢠   Product suite to cater to the specific segment/ industries and their requirements along with a dedicated sales force team that focuses both on quality and quantity.
⢠   Develop offerings to cover the various income / wealth segments and the demographics (e.g., Professionals, Young, Retirees, NRIs, etc.)
⢠   Strong enablers to induce transactions across form factors i.e., rewards program, gamification (on application usage, on reaching certain spends, etc.), net-banking offers across major segments.
⢠   DIY (Do it Yourself) journey for account opening is fully STP supported by Video KYC.
⢠   Drive customer experience through rigorous measurement of Customer Satisfaction (linking to the KRAs), reimagination of service journeys, availability across channels like - email, WhatsApp, SMS, etc.
⢠   Provide a differentiated experience to customers:
a. Â Â Â RMs & Virtual RMs for the HNIs
b.    Branches created to provide a unique experience to HNIs
c.    Reduce branch footfall by leveraging contact center, etc. for query resolution.
12. MARKETING AND WEALTH MANAGEMENT12.1 Marketing
The Marketing activities of the Bank eyes at increasing the mobilization of new business, promotion of different Products of the Bank and to maintain the brand value of the Bank among the customers. Promotion of Bank's product through different channels and medias are also being taken up by the Department.
The Gist of Performance of various activities & initiatives undertaken:a) Sales Force Team (SFT):
Introduction of Sales Team was done in FY 22-23 revamping the erstwhile Marketing Team structure with higher number of staff strength in different centres. Different Sales Force Teams were created with separate KRAs for separate portfolios. In FY 23-24, Bank registered 73% growth in the business canvassed by sales team from the previous Financial Year is registered.
b) Â Â Â Direct Selling Agents (DSA):
Engagement of Direct selling agents (DSA) was introduced in FY 22-23. In FY 23-24, total sanctioned amount sourced by DSAs under Home loan is Rs 2654.35 Cr, Car Loan Rs 157.28 Cr and loan canvassed from Retired Staff is Rs 125.51 Cr, totalling Rs 2937.14 Cr and registering 117 % growth in DSA sanctioned amount from the previous Financial Year.
c)    Tie up with Car Manufacturing Companies to present UCO Bank as their preferred Financer:
Integration of our Bank's Loan processing system in the digital platform of Maruti Suzuki India Ltd for easy and quick digital lending has been done and Loans are being sanctioned directly through end to end digital process.
Agreement has been done with different car companies to promote our Bank as the preferred Financer to the Car Purchasers. Also, various joint activities were organized with these companies across the country to develop a strong relationship between our branches and the car dealers/outlets for generating handsome business for the bank.
Bank has given a call to sell multiple products to our existing customers. Accordingly, analysis of existing data has been done and prospects have been identified. Bulk Messages/ E-Mails with different product offers were sent to the prospective customers. Both Digital & Physical collaterals (One- pagers, Video/ Audio clips/ Banners/ comparatives, EDM, flyers etc.) were designed & supplied to the field functionaries with product USP. The generated Leads from various channels were tracked and monitored via indigenous Lead generation management system of the Bank.
LMS App has been launched with geo-tagging facility for the Sales force members for digital lead generation & proper monitoring of the team.
Several Campaigns were launched from Marketing & Wealth Management Department to maximize sourcing of Home Loan/ Car Loan & MSME Loans with specific targets allotted to Sales force teams & CMO for the campaign periods. DSAs & Sales Force members were actively involved and camps & events were organised in prominent places along with participation of Developers, Car Dealers etc.
Some of the special campaigns launched and were named as "Home Titans", "Auto Race", "The last leap", "Mission March" etc. Significant amount of loans sanctioned through these campaigns.
12.2 Wealth Management & Credit Card:Business performance under various segments:
In the FY 2022-23, Bank has created Wealth Management vertical to Promote third party products. (Bancassurance, Mutual Fund and Broking).
⢠   Bank is Corporate agent of Insurance Companies for Soliciting Insurance Business for life, General and Health Segment.
⢠   Bank has 3 channel partners in each segment of Insurance and 9 Channel partners in total.
Present Partners under corporate agency arrangement and other initiatives:
⢠   Life insurance - Life Insurance Corporation of India, SBI Life Insurance Co. Ltd and ICICI prudential life Insurance Co.
⢠   General Insurance - The Oriental Insurance Co. Ltd, Future Generali India Insurance Co. Ltd and SBI General Insurance Company Ltd.
⢠   Health Insurance - Star Health & Allied Insurance Co. Ltd, Care Health Insurance Ltd and Aditya Birla Health Insurance. For group Credit life, Bank is having tie-up arrangement with Kotak Mahindra Life Insurance Company Ltd. To cover Life risk of Home, education and retail loan borrowers.
⢠   Bank has increased the number of Specified persons (SP) substantially for the FY 2023-24 for felicitating Bancassurance business as per regulatory guidelines.
⢠   Bank has taken the initiative for IT integration with Channel partners for end-to-end seamless digital mode of sourcing proposal and payment of premium resulting in reducing policy issuance TAT and also better control on the business sourced through our Bank.
⢠   Total 260 health camps & 25 voluntary blood donation camps have been organized by our health insurance channel partners across our bank branches. 2
List of pre-approved customers eligible for availing different type of cards are provided to branches. These customers are approached and final card issuance is done after getting consent & necessary documents from the customers.
Commission is earned on issuance, renewal of cards and on usage of the Cards.
Bank is actively promoting Door Step Banking initiative taken by PSB Alliance. During the FY 23-24 numbers of campaigns were launched by PSB Alliance. Bank is providing door step services at more than 1000 centres in the country. Facilities like cash collection, cash delivery, 15G/H collection, Life certificate collection and other important services are being provided through DSB.
Bank's recovery mechanism is also geared up at all levels of the organization and Recovery Department has adopted following strategies to maximise recovery.
⢠   Initiating timely SARFAESI action and sale of assets through SARFAESI with full utilization of e-Bikray platform and LMS. Steps taken for getting DM permission for physical possession of mortgaged properties to improve success rate of e-auction.
⢠   Utilization of Enforcement Agent / Recovery Agent for timely follow up with DM, advocate, for physical possession of property and to ensure that all actions are carried out in a time bound manner.
⢠   Filing of DRT suits, Civil suit including suit against Guarantors & suit u/s 138 of NI Act.
⢠   Utilization of Detective Agencies for unearthing personal properties in the name of borrowers/guarantors and attaching the properties through DRT in eligible cases.
⢠   Identification of accounts for referring to NCLT and invocation of personal guarantee through NCLT and attachment of their properties.
⢠   Restructuring in eligible cases and more specifically In MSME NPA accounts and allowing handholding operations.
⢠   OTS in eligible NPA accounts both under NDND and Normal OTS Scheme.
⢠   Participation in National Lok Adalat with full preparatory mode.
⢠   Utilization of NPA Tracker application and monitoring from HO & ZO level. 3
⢠   Continuous contact with NPA borrowers for identification of recoverable & not easily-recoverable NPA borrowers.
⢠   Aggressive follow up for up-gradation and recovery in soft NPAs as well as old NPAs through War Room and Cluster Approach.
⢠   Timely marking of NPA in respective portal and claim for all accounts covered under CGTMSE / ECGC etc. in timely manner.
⢠   Continuous follow up for reduction of NIL performing Branches.
⢠   Declaration of Wilful Default.
⢠   Issuance of LOC.
⢠   Contacting KCC borrowers by early morning field visit and all other borrowers via NPA Tracker.
⢠   Holding Mega Recovery camps at regular intervals.
⢠   Regular review of Zones, high NPA branches and AMBs.
The details of GNPA, NNPA, Cash Recovery and upgradation
for the last two years are as under.
|
(Rs. in crore) |
||
|
Particulars |
31.03.2023Â (Audited) |
 31.03.2024 (Audited) |
|
Cash Recovery |
1354.10 |
740.08 |
|
Upgradation |
678.13 |
657.54 |
|
Total |
2032.23 |
1397.62 |
|
Recovery in Technical Written off accountss |
1613.91 |
1475.38 |
|
Gross NPA |
7726.46 |
6463.31 |
|
Gross NPA % |
4.78% |
3.46% |
|
Net NPA |
2018.02 |
1621.65 |
|
Net NPA % |
1.29% |
0.89% |
The total cash recovery and upgradation for the year ended 31st March, 2024 is Rs. 1397.62 crore as against Rs. 2032.23Â Crore for the year ended 31st March, 2023.
The cash recovery in technically written-off accounts is Rs. 1475.38 crore for the year ended 31st March, 2024 compared to Rs 1613.91 crore for the previous year. Recovery in Loss and Written Off assets has a direct impact upon the profitability hence Bank is giving priority in monitoring / follow-up for recovery in such accounts.
⢠   Bank had implemented new Non-Discretionary & NonDiscriminatory Special One Time Settlement Scheme named "NDND 2023-24-RIN SAMADHAN" from 16th Sep'2023 for settlement of NPAs & ML (PWO) Accounts with outstanding ledger balance up to Rs. 50.00 Lac as on 30.06.2023 under Doubtful, Loss and ML category. The extended period of validity of the scheme shall be upto 30.06.2024.
⢠   Bank has strengthened the Legal Management System with the objective to facilitate different departments at Head Office & Zonal Offices for monitoring status of SARFAESI actions, legal matters etc. for effective monitoring and early resolution of accounts.
⢠   Mega Recovery Camps are being organized to augment recovery in NPA accounts. Properties in NPA accounts are uploaded and put for auction on 'e-Bikray' a common web portal of IBA (https://ibapi.in) (Indian Banks Auction Properties Information).
⢠   Mega e-auction of properties under SARFAESI is being conducted on regular basis.
The country had witnessed the resurgence of COVID as second wave during FY 2021-22 and every section of the society including salaried class, daily wagers and business class etc. have been affected to meet out liabilities.
14.1 Mitigation of COVID-19 impact:
To ease out the stress encountered by the borrowers affected on account of COVID-19, RBI had announced regulatory measures and announced a Resolution Framework 2.0 on 5th May, 2021 for COVID affected stressed assets. Accordingly, as per the RBI's Resolution Framework for COVID-19 Related Stress (RF 1.0 and RF 2.0), Bank has implemented both the resolution frameworks through seamless online process starting from Application to Sanction Level. Bank is also monitoring these restructured accounts at all level.
The timely action of Govt of India and RBI have led to revival of the economy and during last few months, consumer demand has been recovered and business across most of sectors is reviving and coming back to almost 70-80% of the pre-covid levels.
14.2 Bank has strengthened Credit Monitoring mechanism through Enhanced Monitoring as under:
a)    Early Warning Signal System (EWS) - EWS system has been extended to cover accounts of Rs. 2 Lac and above which covers 93.71% of Bank's standard advances. Regarding System identification of EWS, a software package has been implemented which is capable of generating 42 EWS triggers as suggested by RBI along with 84 EWS triggers as suggested under EASE (Enhanced Access and Service Excellence) Agenda. Also, 3 customised alerts have been implemented under EWS. New EWS Framework based on exposure has been introduced and the maker-checker concept has also been implemented in the said framework.
b)    Dashboard: Bank has launched one Dedicated Dashboard for better Credit Monitoring at all level.
i)    A new report "Monitoring Daily NPA" at Credit Monitoring Dash Board has been made available to tackle daily NPA run.
ii)    The Dashboard provides a detailed picture of the Retail portfolio of the Bank with below mentioned reports :
⢠   Geographical distribution
⢠   Bucket-wise Advance
⢠   Trend in movement of Advance
⢠   Special Mention Accounts (on daily basis)
⢠   Spurt In Advance
⢠   Sanctioning of Frequent TODs
⢠   NACH/ SI failed
⢠   Upcoming Monthly Demands
⢠   Upcoming Review-Renewal
⢠   Upcoming Stock/BD Dues
⢠   Demand Loans Due
c)    Various collection actions viz. Auto E-mail/SMS, IVR Calls, Call Centre Calls, Branch Calls and Branch officials visits are being made inorder to improve the collection efficiency in accounts.
d)    As a part of stressed asset management, default assets of Rs. 5 crore and above weekly reporting done to RBI at Central Repository of Information on Large Credit (CRILC) platform and monitored on daily basis.
e)    NPA Tracker through mobile application has been introduced for monitoring stressed and NPA accounts at base level.
14.3 To improve upon functioning at the grass root level, bank has devised following strategic policy and guidelines:
a)    Operational guidelines for Credit Monitoring 2021-22 has been updated and put in place after obtaining approval of the members of Board of Directors.
b)    Policy for empanelment of TEV consultants has been revised and put in place.
c) Â Â Â Guidelines for empanelment and appointment of Stock &Â Book Debt auditors has been revised and put in place.
d)    Policy for empanelment of valuers for the properties offered as securities, both primary and collateral while processing of credit facility has been revised and put in place.
e)    Engagement of Agencies for Specialized Monitoring and effective monitoring of Large Borrowal accounts with exposure above Rs 250.00 Crores has been revised after obtaining approval of the Board.
f)    Stressed accounts of Rs 5.00 Cr and above was directly monitored by High Power Committee (HPC), headed by Executive Director (ED) on fortnighly basis.
Risk is an integral part of the Banking business and the Bank aim to achieve the corporate goal by appropriate trade-off between Risk and Returns. Risk Management at Bank includes risk identification, risk assessment, risk measurement and risk mitigation, with its main objective being to minimise the negative impact on profitability and capital.
Bank is exposed to various risks that are inherent part of any banking business. The major risks are Credit Risk, Market Risk, Liquidity Risk and Operational Risk.
To ensure sustainable and consistent growth, Bank has framed a sound risk Management framework so that the risks assumed by the Bank are properly assessed and monitored. All the products, processes and policies are routed through the various Executive Level Risk Committees (Credit Risk Management Committee, Operational Risk Management Committee, Asset Liability Management Committee and Market Risk Management Committee) and the Risk Management Committee of the Board (RMCB) before being approved by the Board of Directors. The Bank has on-boarded a Risk Advisor, Who has rich experience in Regulatory as well as in Risk Management area.
Credit risk is managed through a Board approved framework that sets out policies, procedures and reporting which is in line with best practices. Bank has a strong credit appraisal and risk management framework for identification, measurement, monitoring and control of the risks in credit exposures.
The Bank has put in place prudential caps across industries, sectors and borrowers with an objective to build a resilient portfolio and de-risk from portfolio concentration. The Bank also assesses risks associated with various Countries, State Governments, Group Borrowers etc. and setting exposure caps. As a part of enhanced exposure monitoring, quarterly reviews are carried out for the Bank's key exposures, segments, industries and sectors. A dedicated Credit Risk Management Cell tracks internal & external developments to assess impact on the portfolio performance and recommend pro-active remedial actions.
Adequate attention is given to the independence of the risk evaluators and business functions for establishing a sound credit culture and a well-structured credit approval process.
The Bank has made computation of 'Risk Adjusted Return on Capital (RAROC)' for all credit proposals of Rs.1.00 Crore and above mandatory, other than retail schematic loans for prudent use of Capital in terms of Return and addition of economic value to the stakeholders.
In order to ensure independent risk based assessment of credit proposals, Bank through its Credit Risk Evaluation Process, classifies borrower into low/medium/high risk.
15.2 Â Â Â Operational Risk Management
Bank has put in place Operational Risk Management Framework (ORMF) for effective management of Operational Risk. Operational Risk Management Framework comprises of the organizational structure for management of Operational Risk, governance structures, polices, procedures and processes whereas Operational Risk Management System consists of the system used by the Bank in identifying, measuring, monitoring, controlling and mitigating Operational Risk.
The Bank has created a repository of Internal Loss Data as part of Operational Risk Management. Root Cause Analysis for the various loss events is being carried to strengthen the control environment and the findings are circulated to the field functionaries for avoiding such incidence from recurring in the future.
Bank has implemented Risk Control & Self-Assessment (RCSA) which is used to identify key Operational Risk and assess the degree of effectiveness of the internal control. Based on the RCSA findings suitable risk mitigation strategies are devised to plug in the control gaps.
Risk Officers have been designated in each zone for coordinating with Risk Management Department, Head Office to support and manage various types of risk emanating from Business units.
15.3 Â Â Â Market Risk Management
Market risk implies the risk of loss of earnings or economic market value due to adverse changes in market rates or prices of trading portfolio. The change in economic value of different market products is largely a function of change in factors such as Interest rates, exchange rates, economic growth and business confidence. The bank has well defined policies to control and monitor its treasury functions which undertakes various market its risk operations.
Bank measures Interest Rate Risk in its trading book through Modified Duration, PV01 and VaR on a daily basis. Foreign Exchange Risk is also measured in terms of Net Overnight Open Position Limits (NOOP), VaR limit, AGL (Aggregate Gap
Limit), Individual Gap Limit on daily basis. VaR and portfolio size limit are measured along with monitoring of our portfolio at transaction level, stop loss wise and dealer wise limit.
Back-testing and Stress Testing of all the parameters associated with Market Risk are being done on regular basis.
Under stress testing framework, Bank conducts comprehensive stress of its trading book portfolio as well as interest rate risk in the banking book due to mismatch between rate sensitive asset and liabilities on quarterly basis, which generally impact the earnings/ Equity of the banks with the change in the interest rate in the market. We use Traditional Gap analysis, as well as Duration Gap approach to measure interest rate risks in Banking Book.
Value at Risk (VaR) is a tool used for monitoring risk in the Bank's Trading Portfolio. The Enterprise-level VaR of your Bank is calculated and back tested on daily basis . The stressed VAR for Market Risk is also computed daily. This is supplemented by a Board-approved Stress Testing Policy and framework that simulates various Market Risk scenarios to measure stress losses and initiate remedial measures.
The Market Risk Capital Charge of your Bank is computed using the Standardised Measurement Method (SMM), applying the regulatory factors.
Bank undertakes risk-adjusted performance analysis of its domestic and overseas portfolios. It also analyses the credit rating migration of non-SLR bonds as a tool for decision making.
Model used in Market Risk Management is also validated by External Agency.
15.4 Liquidity Risk Management
Liquidity risk is the ability to meet expected and unexpected outflows at reasonable cost. Bank monitors its liquidity risk through flow and stock approach in accordance with Board approved ALM Policy.
Bank has implemented the BASEL III framework for Liquidity Standards as LCR (Liquidity Coverage Ratio), Liquidity Monitoring tools and LCR disclosure standards and ensures maintenance of adequate level of unencumbered High Quality Liquid Asset which can be converted into Cash to meet liquidity needs for a 30 calendar days' time.
NFSR (Net Stable Funding Ratio) which promotes resilience over a longer term time horizon by requiring banks to fund their activities with more stable sources of funding on an ongoing basis. Bank is maintaining NSFR above than regulatory specified ceiling.
Bank also assesses its liquidity position under various stress scenarios to understand its funding position in case there is stress environment within the Bank as well as in market.
Interest Rate risk in the Banking book (IRRBB) arises due to mismatch between rate sensitive assets and rate sensitive liabilities which may adversely impact the earnings / economic value of the equity of the Bank with the change in Interest rates in the market. For measurement and monitoring of interest rate risk in banking book, the bank uses risk management tools such as Traditional GAP analysis, Earning at Risk and Modified duration based approach. The short term impact of interest rates movement on Net interest Income (NII) is worked out through the "Earnings at Risk" approach by taking into consideration parallel shift in yield curve, yield curve risk, basis risk and embedded options risk. The Long term of Interest rate movement is measured and monitored through change in Market Value of Equity.
In order to access the level of credit risk in any credit proposal, Bank does rating of borrower with exposure greater than Rs. 25.00 Lacs (other than Schematic and Retail loans) and for MSME and agriculture proposal of more than Rs. 1.00 Crore.
Bank has upgraded its Credit rating process with effect from October, 2023. The New Model has better default predictability as well as more in line with External Rating.
Credit Proposal not covered under credit rating is assessed based on Score Card Model. Score Card Model was recalibrated after validation by External Agency. The main objective was to standardize the underwriting process for Retail, Agriculture and MSME (RAM) lending. Score card model uses technique combining several financial and non-financial characteristics to form a single score to assess borrower's creditworthiness. Presently Bank is using 19 Score Card Models for loans upto Rs. 1.00 Crore.
15.6 Â Â Â Fraud Risk Management
Bank has in place Fraud Risk Management cell which manages the fraud risk and ensure reporting to RBI as well as lodging of Complaint with Law Enforcement Agencies.
Bank has constituted Committee of Executive - Fraud Risk Reporting and Monitoring (CoE-FRRM) for declaration of account/incidence as fraud based on the element of fraud. Root cause Analysis of frauds is being conducted and Control is implemented wherever needed for avoiding such incidence from recurring in the future.
Bank's Fraud Management Group (FMG) is analysing the reported Early Warning Signals in borrower's account for classification it as red Flag account for timely detection of potential fraud.
Further, Bank has implemented Enterprise Fraud Risk Management System (EFRMS) comprising of Risk Based Transaction Monitoring System (RTMS) for timely detection of potential fraud. The EFRMS operations have been augmented to cover 24x7 alert disposals.
15.7 Â Â Â Sustainable Development
The Bank acknowledges the urgency of climate change and recognize global warming as one of the most significant threats to businesses and livelihood globally. Climate change risk has become a crucial challenge to the financial industry of late. The Bank is committed to reducing the impact of climate change risk and is consciously working towards sustainable development of its banking operation. As per lending policy, Bank prohibits Loans and advances to industries consuming / producing ODS (Ozone Depleting Substance) which enables in reduction of greenhouse effect.
The Bank has taken several steps to reduce its carbon emission and minimize energy consumption namely:
I.    Bank's two offices are powered by solar energy resulting in reduction in power consumption and in carbon emission.
II. Â Â Â LED light have been used in most of the branch premises/Â offices to reduce electricity consumption.
III.    Bank is conducting "Swachhata Pakhwada" for cleanliness by involving active participation of employees.
In order to have proactive measure for fraud prevention, Bank is monitoring transactions in accounts on real time or near real time based on various pre-defined rules in-built in the risk based transaction monitoring system Viz. EFRMS. During the year, EFRMS operations was augmented to cover 24x7 alert monitoring in all online channels i.e. UPI, ATM/POS/ECOM, MB, IB and AEPS. Bank has further launched the Integrated EFRMS - IVR Alert disposal module through which customers receive automated call during odd hour ATM and ECOM transactions and can either authenticate or decline a transaction by themselves. Bank is looking for introducing AI & ML based risk scoring models to strengthen the existing EFRMs tool.
16. DEPARTMENT OF INFORMATION TECHNOLOGYMajor Initiatives Taken by Department of Information Technology in FY 2023-24 are:
a)    UCO Tab Banking Solution: With an aim to enrich the customers' banking experience and ease of access to banking services, bank has implemented UTBS (UCO Tab Banking Solution). Now Customers can avail facilities such as opening of Savings, Current, FDR, Recurring Deposit (RD), Senior Citizen Savings Account (SCSS) and apply for cheque book instantly through TAB banking solution.
b)    Bank's new revamped Website: Bank has revamped its corporate website to make it more feature rich and user friendly.
c)    Integration with VAHAAN Portal: Integration of API components with VAHAAN production environment has been completed. VAHAAN is the government portal that provides wide range of services relating to vehicle registration, permit and taxation etc.
d)    Integration with Jansamarth Portal: Bank has completed the integration with Jansamarth Portal. This portal facilitates beneficiaries to digitally ascertain the eligibility for Credit linked Government Schemes and receive digital approval.
e)    Integration with CGTMSE (Credit Guarantee Fund Trust for Micro and Small Enterprise) portal: Bank has integrated with CGTMSE portal to automate the process of obtaining guarantee coverage under this scheme.
f)    Integration with CERSAI portal: Integration with CERSAI portal to provide a better end user experience, ensure real time integration between CBS & CERSAI systems. This will ensure enhanced quality of data and seamless registration of security interest at CERSAI.
g)    Integration with Jansuraksha portal: Bank has completed integration with Jansurakhsa portal. This will automate enrolment and claim settlement process of Pradhan Mantri Jeevan Jyoti Bima Yojana(PMJJBY) and Pradhan Mantri Suraksha Bima Yojana(PMSBY) scheme.
h) Â Â Â Implementation of Mobile Device Management Solution:
This is implemented to safeguard Banks' data on mobile device accessed over internet using Bank's email domain.
i)    Integration with UDGAM (Unclaimed Deposit Gateway to Access Information) portal: RBI has launched this centralized web portal, which Bank has successfully integrated, where all the information regarding unclaimed amount will be available at one place. With the help of this portal depositors can view information relating to their unclaimed deposits.
j)    Integration with KCC-ISS portal: This portal is developed by GOI to collect/access granular data of farmers/borrowers of KCC, including information about loan sanctioned and eligible interest subvention claims of the banks.
k) Online death claim module: Death Claims can now be
lodged by claimants through Online Death Claim Portal hosted in Bank's Website.
l) Â Â Â Implementation of CTS One nation One grid project:
One Nation One Grid project- 16th October 2023 onwards, Service Branch Chennai is being the National Grid Branch. Inward and outward clearing is being routed through Chennai Service Branch only.
m)    Integration with Madhya Gujrat Vij Company Ltd. (MGVCL): Bank has integrated with MGVCL so that consumers of MGVCL can visit UCO Bank branch & pay their electricity bill through cash or transfer.
n)    Execution of Locker Agreement through NeSL DDE platform: With this process customer can execute locker agreement using his aadhaar details from anywhere, no need to visit branch physically.
o)    Development of Online facility for Application for Lockers & Execution of Locker Agreement:
⢠   Anyone willing to avail locker facilities in UCO Bank can apply from the UCO Bank Website also.
⢠   Separate workflow for Customers / New to Bank (NIB) Customers has been designed. 4
p)    Comprehensive & Integrated Global Treasury Management Solution (CIGTMS): Bank is in the process of implementing CIGTMS, which supports multi-currency transactions, along with Market Risk Solution for all Treasury products and surrounding Treasury IT applications to cater the needs of Treasury operations across all Geographies with Bank's presence.
q)    Next Generation NOC (Network Operation Centre): Bank is in the process of implementing NOC solution. This can be broadly divided into three parts;
i. Â Â Â Automated Tools - for handling operation in network.
ii.    Through Artificial Intelligence proactive monitoring and mitigation.
iii.    Skilled resource for handling the NOC - specialized skilled resources will be deployed for handling network related operations.
r)    Application Whitelisting & Solution: Application whitelisting process aims to create an ecosystem where the deployment of the applications/software to all endpoints shall be done centrally and the end users shall be barred from installing/uninstalling any application/software.
s)    IT Asset Management Solution: IT Asset Management solution aims to catalogue, track and maintain Bank's IT Assets through centralized platform.
t)    Mera Account Meri Pehchan: Choice of Alias name for account number, facilitating single set of credentials for providing access to multiple applications or services.
17. DIGITAL BANKINGMajor Initiatives Taken:⢠   Introduction of Merchant Credit Card (MCC):
Bank launched Merchant Credit Card (MCC) for MSME borrowers in line with the announcement made by Hon'able Prime Minister. MCC provides easy finance in the form of Credit Card to eligible MSME borrowers, Instant Cash as well as augments and facilitates various Digital Transactions easily and securely.
⢠   Facility of ICCW (Interoperable Cardless Cash Withdrawal) through ATM as Issuer:
Bank has implemented Interoperable Cardless Cash Withdrawal (ICCW) facility, which enables the customer to withdraw money through other Bank ATM by using smartphone.
> UPI Global Acquirer Mobile App for International QR scan
>    UPI Lite issuer mode in BHIM app, Gpay, PhonePe and Paytm app
> Â Â Â UPI Lite Offline(X):
Now Customers can send and receive small value transactions upto Rs 500/- without using PIN. This has been made possible by efficient mode of UPI payment through NFC/Bluetooth communication in complete offline mode
> Â Â Â Conversational UPI:
It is Conversational AI driven Payments for Seamless UPI Experience. It stimulates Human like responses by understanding voice command through which Users can securely initiate and complete payments using voice commands on IVR. Customers have to call at 08045163778 to avail the facility
⢠   Mahila Samman Savings Certificate:
Mahila Samman Savings Certificate has been launched by Govt. of India wherein individual women/minor girls can invest upto Rs. 2 lakh for a period of 2 years at an attractive rate of interest. Bank has provided facility to apply for Mahila Samman Savings Certificate through Bank's Mobile Banking App.
⢠   STP (Straight Through Process) Journeys for:
> Â Â Â Pension Loan
> Â Â Â Gold Loan Top-up and re-pledge
> Â Â Â Modified Shishu Mudra for ETB & NTB Customers
⢠   PMJJBY & PMSBY enrolment with Jansuraksha Portal:
Bank has completed the integration with Janasuraksha Portal for enrolment of PMJJBY and PMSBY through Internet Banking and Mobile Banking.
⢠   Integration of new Direct Tax Collection system TIN 2.0 with Internet Banking: Bank has integrated its Internet Banking platform with revamped Tax Collection System i.e Tax Information Network 2.0 (TIN-2.0) as per directions of Income Tax Department.
⢠   On-boarding of Rajasthan SNA in Bank's SNA application
⢠   E-Banking credentials (User ID & Password) are being sent to customer's registered e-mail id, instead of sending physical PIN Mailer to the branches/customers.
⢠   HNI ASBA Facility has been made available in Internet Banking for enabling HNI customers to use ASBA facilities.
⢠   Installation of 361 new ATM/Cash Recycler in phased manner 5
⢠   Physical PIN mailer facility for Debit Card is discontinued for promoting Green PIN generation
⢠   Revamped UCO Mbanking Plus has been launched with Simplified user friendly GUI available with card view displaying all features in single screen providing a unique UI/UX experience for customers enhancing convenience and easier navigation.
⢠   UPI SDK Integration with Mobile Banking to provide enhanced user experience by providing UPI facility in Mobile Banking itself.
⢠   Revamped WhatsApp Banking is available in 5 languages (including Hindi, English, 3 regional languages ) & houses features like Account Information, Digital retail products, Apply for Loans, Digital Merchant, Govt. security Scheme enroll, Cheque book request, TDS certificate etc
⢠   Introduction of UPI 123 pay facility to customers for payment through basic phone through IVR channel (8045163777) without using Internet.
⢠   Onboarded total 21 new NBFCs on the Debt Platform having 93 pool accounts.
⢠   Migrated total 82 old pools including 56 old Retail pools and 26 old MSME pools in the Debt Platfom.
⢠   API integration with CBS and NBFC has been implemented in UGro Co-Lending.
⢠   Bank has set up State-of-the-Art Cyber Security Operations Center (CSOC), operational on 2457 basis.
⢠   Bank has directly integrated with Threat Dissemination Platform (TDP) of CERT-In and NCIIPC.
⢠   To reinforce our Cyber Security capabilities, Bank's Cyber Security Operations Centre (CSOC) has forged a partnership with the Cyber Security Centre of Excellence, Govt. of West Bengal.
⢠   Bank has ISO 27001:2013 certification for IT Systems across Data Centres of the Bank. The Certification has been issued by International Standards Organization (ISO) and Bank has undergone a stringent evaluation process by an independent third-party assessor during the sustenance audit. The ISO 27001:2013 certification fosters trust and demonstrates an ongoing commitment for safeguarding customer data. 6
⢠To address cyber risks arising out of human vulnerability,
Bank puts concerted efforts in raising cyber awareness of
our staffs and customers through various cyber awareness
initiatives and campaigns.
>    Publication of Cyber Awareness Booklets like 'Phishing & Countermeasures' and 'Handbook on Cyber Security Awareness'.
>    Monthly observance of "Cyber Jagrookta Diwas" on the first Wednesday of every month with engaging workshops, interactive sessions, and creative events are organized for staff members & customers.
>    "Cyber Security" Dedicated Corner at Bank's Official Website (www.ucobank.com) for dissemination of Cyber Security Awareness messages.
>    Sharing of Cyber Security Awareness Email Advisories to Staff Members and Customers including newly on-boarded customers.
>    Daily Cyber Safety Tips as well as Weekly Jagrookta Series are shared to employees through email and internal messaging platform.
>    Promoting of Live Webinar, Customer Meets, Awareness Events through Offices & Branches.
>    Frequent uploading of Social Media Post, Cyber Awareness Videos, advisories, reels, memes as well as Retweet of Government posts like ISEA, CERT-In, CyberDost etc.
>    Display of Cyber Awareness Posters at Branch & ATM Premises, Metro Station, Digital Display Unit, Training Centres.
>    Display of Cyber Awareness Messages using Bank's Digital Channels like ATM Screen & Mobile Banking App, Official Website, E-Banking Portal, Finacle Ticker, Internal HRMS portal, UCO Online portal, Desktop Background & Screensaver (AD PC) etc.
>    Usage of Push Notification, SMS, Email, Broadcasting of Radio Jingles through 93.5 FM Radio Station.
>    Conducting of mock social engineering drills on periodic basis to evaluate the promptness of our staffs and onsite third party vendors, in detecting and reporting cyber incidents.
The Bank recognises the need for constant improvement in customer experience and aims to enhance the quality of customer service so as to ensure that our customers feel that they are valued. Bank has therefore taken the following initiatives for improvement in customer experience in the Bank during the year 2023-24:
1. AI & ML enabled Next Gen Call Centre Solution UCO
Sampark 2.0 launched.
2.    Facility for Online Locker Application through Bank's Website and Locker Agreement execution through NeSL platform.
3.    Implementation of threshold limit in CBS as a precursor for close monitoring of customer account so as to prevent fraudulent transactions.
4.    Set up of Online Deceased Claim Settlement Portal for hassle free settlement of deceased claims.
5.    Implementation of Online Validation of PAN in CBS during on-boarding/ modification of Customer Id.
6.    Introduction of Welcome Kit for distribution amongst customers opening new CASA accounts.
7.    Root Cause Analysis of customer complaints conducted on continuous basis so as to identify the pain points and facilitate improvement in systems & procedures to prevent recurrence of such complaints.
8. Â Â Â Improvement in operational efficiency of currency chests.
9.    Improvisation in system and control through augmentation of reconciliation system helping Bank to bring down TAT for resolution of disputes related to failed transactions, substantially.
10. Â Â Â Improvement in cheque issuance and delivery process.
11.    Facility for Re-KYC to customers through SMS and Bank's Website for no change of KYC documents.
Bank is also implementing the following initiatives for further improvement in customer service:
1. Â Â Â Voice IVR based Call Centre Solutions.
2.    Revamped OGRS integrated with Contact Center and Chatbot.
3.    Improvement in CTS clearing mechanism with centralized outward clearing.
4.    Online Nomination Registration facility with Aadhaar based authentication
5. Â Â Â Real Time validation of Aadhaar during onboarding/Â modification of Customer Id.
6. Â Â Â Digital Queue Management System.
20. STRATEGIC PLANNING: MIS & ADF CELL
Bank is having Management Information System (MIS) vertical for internal reporting as well as reporting to regulatory and various statutory bodies etc. The following are the new tools launched / Major Innovative features implemented:
a) Â Â Â Implementation of EDW and Data Analytics project -UCO Insight
Implementation of EDW to provide:
1.    A Single Source of Truth by harmonization of data from various data sources.
2. Â Â Â Create a base for Data Analytics.
3. Â Â Â Ensure Data Accuracy & Integrity.
Implementation of Data Analytics:
1.    To help the Top management/ Bank in prompt and strategic decision making by historical trend analysis.
2.    To give a near real time picture of gap to target for various Key Performance Indicators (KPIs).
3.    Reducing the manpower cost significantly by removing manual preparation of the excel based data for trend analysis, gap analysis etc.
4.    Data driven Credit Offer (DDCO) will help in creating personalized credit offers by analyzing various data points such as credit history, income, spending patterns & demographic information.
a.    Machine learning to draw disposable income, average balance etc.
b.    By analyzing the transaction history, identification of EMI based loans, maintained with other banks, for take over leads.
5.    Prediction of Default: Collection Strategy propensity Model will help in understanding the customer's behavioural pattern regarding payment of dues and helping bank in making collection strategies to reduce probability of default.
b) Â Â Â Implementation of Zonal Review Dash board.
A comprehensive utility report in MIS portal to help the Top management to review the Zones. It showcases the movement of business done by the zones under various business parameters vis -a- vis previous month-end/ Quarter-end/FY end. The major features are:
⢠   Shows the Fortnightly growth pattern for the zones under various parameters.
⢠   Provides the status of parameter wise growth status of zones over the Target.
Provides an insight into the business profile of any zone and will help the bank to understand the focus areas for respective zones.
c) Â Â Â Implementation of Resource Dashboard (Live).
A tool developed by MIS department on the behest of Resources department. The major salient features are:
⢠   Live position of No. of Accounts opened and total deposit w. r. t. SB, CA, TD, RD, RDUSS, along with region-wise drill down
⢠   Breakup of Deposit: Domestic and Overseas as on Date
⢠   Bifurcation of Domestic Deposit as on date
⢠Top 5 Zones in CA (Live position)
⢠Top 5 Zones in SB (Live position)
⢠   Bottom 5 Zones in SB (Live position)
⢠   Maturity-wise Bifurcation of savings deposit- With drill down
⢠   Deposit Bifurcation: YTD
⢠   Amount-wise Distribution of Savings Deposit
⢠   Customer type-wise Distribution of Savings Deposit.
d) Â Â Â Implementation of Daily Business Tracker.
It is an automated tool developed to share the daily/periodic performance under key parameters of Zones/ branches to the top management on daily basis.
e)    Implementation of 'UCO Focus' portal used for Data Cleansing purpose using 52 required parameters.
It is offsite tool to improve quality of compliances to various regulatory / statutory / internal policy based guidelines and also to improve data quality & integrity. The major salient features are:
⢠   Rectification of Non-compliance/ errors on an ongoing process; to improve the quality of data in CBS.
⢠   To avoid regulatory/ statutory penalties.
⢠   To identify System level / Policy level interventions.
f) Â Â Â Implementation of Customer Connect portal.
A tool developed to capture the feedback of existing/ prospective customers which helps in understanding the needs/ aspiration of the customers and improve services, products & customer satisfaction.
Bank reinforces strong corporate reputation through its high degree of transparency and consistency in communication with stakeholders and also disseminates timely information with clarity, coherence and credibility including information through the websites of the Bank on real-time basis. Bank aims to inform, persuade and involve one and all in the activities and growth through sustained, consistent and relevant messages and using a judicious mix of both external and internal communication tools.
Bank has taken up multiple initiatives through various channels namely Print Media, Outdoor Media, sponsorship of different events, CSR activities and dissemination of requisite information to stakeholders to build and maintain the brand-image of a world class financial institution.
21.1 Â Â Â Publicity Campaigns:
Print Media/ Outdoor Media is an effective medium to connect to masses. The Bank has utilized it effectively by carrying out intensified and vigorous publicity campaigns throughout the year through hoardings, kiosks, traffic booths, banners, traffic cones, digital displays, magazines, newspapers etc.
During the brand publicity of the Bank, the Bank also ensures to publicize various banking products viz. Home Loan, Car Loan, Education Loan, Gold Loan, Deposit schemes, Digital Products, VKYC etc.
21.2 Â Â Â Celebration of 82nd Foundation Day:
The Bank completed 81 glorious years of service to the nation on 6th January, 2024. The occasion was celebrated with much enthusiasm and vigor across the country and overseas centers. Zonal Offices and branches across the country organized different activities viz. planting saplings, blood-donation camps, health check-up camps etc. A cultural programme was organized at Dhonodhanyo Auditorium, Alipore wherein staff members across the country participated and performed their talent.
21.3 Â Â Â Corporate Social Responsibility (CSR):
Bank believes that carrying out CSR activities help in tangible value creation. Moreover, CSR creates a positive image in the mind of customers and society at large. This creates a sense of belongingness and loyalty in existing and prospective customers.
The Bank has 27 RSETIs (Rural Self Employment Training Institutes) spread across country to impart training and skill up-gradation of rural youth geared towards entrepreneurship development.
Some of CSR activities highlights are mentioned as under:
⢠   Contribution to food distribution initiative by Anna Sri program of ISKCON, Bangalore.
⢠   Contribution for purchase of 10 computers for Educational Institutions under the temple management of Arulmigu Dhandayuthapani Swamy Temple, Palani, Tamil Nadu.
⢠   Contribution for Chief Minister's Relief Fund, Himachal Pradesh for restoration of the losses due to the recent Natural Calamities in the State.
⢠   Contribution of e-rickshaws to Bihar Agriculture University, Sabour for movement of differently abled students, women & visitors in the campus.
⢠   Contribution towards iCreate's Corpus fund for fulfilling their operational requirements during the business incubation processes to empower the youth entrepreneurial excellence through innovation and technology towards the building of an Atmanirbhar Bharat & to transform business ideas into successful enterprises by supporting technology- led startups at all stages of a Mind- to-Market journey.
⢠   Contribution for Partnering in the "Cyber Safety Campaign" Odisha, 2023, organized by Odisha Police, CID Department under CSR in two districts i.e. Puri and Jagatsinghpur.
⢠   Contribution to Nimbark Math Seva Samiti Trust for distribution of spectacles and clothes for needy & vulnerable sections of the society.
⢠   For setting up wellness centres in Home Economics Training Centre (HETC), Jharpada, Laxmisagar, Bhubaneswar by Women & Child Development, Odisha.
⢠   Contribution of essentials like bedsheets, bucket mugs etc. to Kolkata Blind School on the eve of 82nd Foundation Day of Bank.
⢠   Contribution to FMR, Kolkata for Health & nutrition on the eve of 82nd Foundation Day of Bank.
⢠   Contribution to M/S Poornatha & Company for providing cohort training programme for Bank's MSME customers
⢠   Contribution of Chairs for Public Facilitation Centre (PFC) for the devotees visiting Ram Mandir, Ayodhya
⢠   Plantation of saplings during the Foundation Day Week 2024 of the Bank across the country.
⢠   Contribution to Lucknow University for 6-Seater EV cart.
⢠   Other small activities through Zonal Offices.
Bank is also publishing the in-house magazine "UCO Tower" where all the constituents are encouraged to participate. UCO Tower also aims to create awareness of all happenings and activities of the Bank among all employees.
The bank's social media cell has made significant strides in amplifying our brand presence and visibility through strategic content creation and engagement initiatives.
Social media team has been proactive in crafting compelling and informative posts that resonate with our target audience. By focusing on highlighting the bank's unique value propositions and product offerings, we have successfully raised awareness about our brand across various social media platforms.
Understanding the importance of maintaining a positive brand image online, our team has diligently monitored sentiment across social media channels. Through timely responses to customer inquiries, addressing concerns, and fostering positive interactions, we have effectively managed sentiment and cultivated a favorable perception of the bank among our online community.
Overall, social media efforts have not only bolstered brand awareness but have also contributed to strengthening customer relationships and fostering a positive brand reputation in the digital sphere. As we look ahead to the upcoming year, we remain committed to leveraging social media as a strategic tool for achieving our organizational objectives and delivering value to our stakeholders.
Human Resource Management Department comprises of various Cells looking after different segments. All these cells worked in tandem during FY 2023-24 to create a harmonious and productive work environment. Training and workshop were organized for improving/enhancing the skills and knowledge of the staff.
22.1 Â Â Â Manpower Management:
⢠   The Total staff strength as on 31st March, 2024 stood at 21456 employees including employees serving overseas. We have 13333 Officers, 5873 Clerks and 2250 Sub-Staff in our Bank as on 31 -03-2024.
⢠   Out of total staff of 21456, 4292 belong to SC, 1780 belong to ST, 5053 to OBC, 305 to EWS and 10,026 to UR category.
⢠   Out of total staff, 522 employees are person with bench mark disability (PwBD) and 1473 belong to the Minority Communities.
⢠   There are 6190 Women employees who constitute 28.85% of the Total Workforce as on 31st March, 2024.
22.2 Â Â Â IR Negotiation Cell:
During the period, the Industrial Relations climate in the Bank remained cordial between the Management and the Unions/ Associations. Meetings and discussions were held with Unions/ Associations at periodic intervals through mutually co-operative attitude and respect during the financial year 2023-24.
In the year 2023-24, Bank has recruited 428 Officers under Generalist and Specialist Cadre. Out of which 148 officers are females. 212 clerks have also been recruited during the financial year 2023-24. Out of total 212 clerks 45 are females. Bank also proposes to recruit 415 clerks for 2024-25 under CRP-XIII.
Our Organization, being a part of one of the most dynamic industries, has to keep up with the constantly changing environment by continuously updating its workforce with various Training Programs in the concerned Fields. Training Programs are held aligning the corporate vision, mission and fulfilling the expectations of the Top Management.
In FY 2023-24, 810 Executives, 9635 Officers and 4408 SubStaff, totaling 14853 were trained in Internal & External Training Programs conducted at our Executive Training Centre, Kolkata, Central Staff College (CSC) situated at Kolkata and 6 other Regional Training Centers, across India and from Reputed External Training Institutions. We also continued to sponsor our Executives & Officers in reputed External Training Institutes like IIM Kozhikode, NIBM Pune, BIRD Lucknow, SBIL Kolkata, NIBSCOM Noida, CAB (RBI), IIBF, CAFRAL, Manipal University, IIBM Guwahati and various reputed external Training Institutes across the country which helped them in acquiring a global competitive edge.
In FY 2023-24 some important Training Programs like Annual Forex Assembly, Leadership and Management Development Program for Senior Management of Bank, , Customized Program on Banking Compliance, Awareness Program for Women on Workplace Safety, Annual Refresher Training of Security Officers, Customized Training Program on Women Empowerment, Digital Transformation & Change Management, Data Visualization and analytics, Preventive vigilance programme, Need based training for weak performers One to One coaching for senior officials and various customized training programmes across the country etc. were conducted.
Various webinar on Cyber Security/ Phishing Awareness Program were also organised for employees across branches/Â offices.
In FY 2023-24, total of 618 employees were paid honorarium/ incentive for passing Bank approved courses.
⢠   Annual Performance Appraisal: As per extant guidelines, each Officer / Executive of the Bank is required to submit the Annual Performance Appraisal Report (APAR) in respect of his/her performance during the Financial Year ending 31st March every year. The same has been completed well in time.
⢠   Annual Property Return: Every Officer is required to submit Annual Property Return Statement as on 31st March every year and the same has been completed well in time.
⢠   Project Samsiddhi: Under Project Samsiddhi for Digital HR transformation of the Bank various tools like Role Clarity, Samsiddhi Scorecard, Target Setting, Appraisals, Data Upload & IT Workflow tool were launched and made live.
22.6 Â Â Â Internal Complaints Committee (ICC):
Our Bank is committed to promote gender equality and women's empowerment which result in economic development and inclusive growth and benefit the nation as a whole.
In terms of creating safe workplace environment for women our Bank has constituted Internal Complaints Committees at Apex level as well as Local Level enforcing the rules as laid out in the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 for quick Redressal of such complaints, if any. In FY 2023-24, no complaints were received.
Bank has been implementing reservation, relaxation and other concessions extended to SC/ST/OBC / Differently Abled Persons and Ex-Servicemen employees as per reservation policy of the Government of India. The overall representation as on 31/12/2023 of SC/ST/OBC employees was 20.03 %, 8.31% and 23.39%. Separate roster registers are maintained for direct recruitment as well as for promotion. During internal promotion process for the FY 2023-24, , Bank has imparted pre-promotional training to 1910 candidates for inter-scale promotion of officers; 199 candidates for promotion from clerical to officers; and 252 candidates for promotion from sub - ordinate to clerical cadre belonging to SC/ST/OBC and PWD category.
For SC/ST employees, reservation cell is set up at HO level and across all ZO level as per Govt norms, functioning under the direct control of Chief Liaison Officer as well as Ex-officio Liaison Officer. Bank has imparted training to 640 SC & 245 ST candidates for inter-scale promotion of officers; 70 SC & 38 ST candidates from clerical to officers cadre and 149 SC & 27 ST candidates from sub staff to clerical cadre.
Bank has also formed separate OBC cell at HO level headed by Chief Manager at HO level as well as across all ZO which is functioning under the control of Chief Liaison Officer as well as Ex-officio Liaison officer. Bank has imparted training to 962 OBC candidates in inter-scale promotion of officers, 89 OBC candidates from clerical to officers and 72 OBC candidates from sub staff to clerical cadre.
Moreover Separate Grievance Redressal officer for PwBD and EWS employees has been created to look after their grievance. Bank has imparted pre- promotional training to 63 PwBD employees in inter-scale promotion of officers; 2 PwBD employee for promotion from clerical to officers; 4 PwBD candidates for promotion from sub staff to clerical.
In order to address the issues of SC/ST & OBC employees of the Bank, meetings are called at Apex level as well as at Zonal office level (Where reservation roster is maintained) with Welfare Association of such employees. An Internal Grievance Committee is functioning at Head office level for monitoring the grievances redressal of the employees belonging to SC/ST/ OBC/Ex-SM/PWD, which are handled and subsequently redressed by the respective cell, as per Bank's extant policy and guidelines. Bank Employee can submit their grievance through Online in HRMS module under Self Service- Raise Issue.
The Annual Statement in the prescribed format showing the representation of SCs, STs, OBCs, EWS and PWD as on 3112-2023 is given in Annexure-I & Annexure-II .
Note:
(i)    VH stands for visually Handicapped (Persons suffering from blindness or low vision).
(ii)    HH stands for Hearing Handicapped (persons suffering from hearing impairment).
(iii)    OH stands for Orthopedically Handicapped (persons suffering from locomotors disability or cerebral Palsy)
(iv) Â Â Â ID stands for Intellectual Disability
23. AUDIT AND INSPECTION23.1 Â Â Â Risk Based Internal Audit (RBIA):
The periodicity of RBIA has been revised to make it more robust and Risk Rating of Branches are being analysed on regular intervals. In case of downgrade of Risk Rating of Branches (Low to Medium, Medium to High), necessary action is being initiated on the basis of Risk Rating parameters in order to protect the interest of the Bank. All Loan Processing Hubs (RLHs, ALHs & SMEs) have been brought under the purview of RBIA.
A new type of Audit has been introduced and named as "Short Audit" which is carried out for such Branches not covered under any form of Audit (Concurrent, RBIA & Statutory Audit) in a Financial Year.
The coverage of Management Audit has been expanded. Now all the Corporate Head Office Departments and Staff Training Colleges are covered under Risk Based Management Audit along with all the Zonal Offices.
Branch/Offices/Hubs and Asset Management Branches (AMBs) are covered under Concurrent Audit. In addition, Critical Departments of Head Office are also covered under the purview of Concurrent Audit.
23.5 Â Â Â Offsite Control & Surveillance (OCAS):
OCAS Cell under Audit & Inspection Department has been monitoring alerts generated by the system and accordingly compliance is submitted by the Branches to their respective Zonal Offices and Field Inspectorates. OCAS Cell is also monitoring transactions in various Office Accounts/Suspense Accounts through backend data mining.
23.6 Â Â Â Information System (IS) Audit:
An internal IS Audit Team has been formed to conduct Vendor, Site, Process & Change Management Audit in its initial phase.
In order to bridge the knowledge gap of personnel dealing with Inspection works, trainings were imparted to Mobile Inspectors/Â Stationary Staffs, and Executives of the Department.
In the annually published CVC booklet on Preventive Vigilance Initiatives, certain select initiatives submitted by various organizations under CVC jurisdiction were published. It is a matter of pride that the initiative by UCO Bank found a place in the booklet for 'e-SAR-Online Tracking of Staff Accountability'. e-SAR leverages technology for end-to-end monitoring of staff accountability cases. Some of the benefits envisaged are (a) promotion of transparency and non-discretion, the pillars of effective vigilance administration-all cases will be examined without any preferential treatment and identification (b) Mitigation of Compliance Risk-adherence to time norms as set by regulatory authorities with regards to examination of staff accountability. (c) Employee Engagement-through protection of employee morale as no employee will be subjected to an agonizing long wait, while staff-accountability is being examined.
Several other preventive vigilance initiatives and systemic improvements were introduced through the year, as delineated below:
⢠   Transparency and monitoring of auction of pledged gold loan ornaments through systemic improvements like (a) Gold loan auction proceeds not to be received in cash, such that KYC of a customer is captured (b) introduction of an account closure menu to capture valuation amount with date, sanctioned amount, reserve price fixed and details of winning bidder (c) video recording of auction proceedings and its preservation.
⢠   Systemic improvements for cash management through (a) record of movement of the cash keys in Finacle with mandatory acknowledgement of key holder (b) manual feeding of cash balance at the end of the day into Finacle system after the cash register is signed (c) maintenance of record of surprise inspection in Finacle with central accessibility to monitoring authorities for real-time tracking.
⢠   Monitoring mechanism for issuance of show-cause through generation of a unique reference number for tracking to prevent resurfacing of a show-cause after an inordinate delay/ at the time of retirement because it was not brought to its logical conclusion.
⢠   Proposed systemic improvements to root out conflict of interest during empanelment of TPEs through declaration (b) one time option of providing family details in HRMS for easy access.
115 training programmes/ sessions on the subject of preventive vigilance were conducted during this FY. Vigilance Officers conducted 763 routine inspections of branches. 58 CTE procurement inspections were also conducted by the Vigilance Officers.
The theme given by the Commission for Vigilance Awareness Week for the Year 2023 [30.10.2023 to 05.11.2023] was 'Say no to corruption; commit to the Nation' and several outreach and in-house activities were undertaken by the Corporate Departments, Zonal offices and branches across the country.
Certain activities/ initiatives were:
⢠   2 Special outreach campaigns for wide publicity of (a) PIDPI (b) mobile number registration/ updation to prevent frauds. A special dashboard was launched to track mobile numbers registered during the campaign period. In-house videos on the same were displayed across electronic display boards, including at metro stations.
⢠   Seminar was held at Zonal Office, New Delhi, graced by Shri P. Daniel, Secretary Central Vigilance Commission and Dr. MP Tangirala, Additional Secretary, DFS.
⢠   In-house essay competition on the theme chosen by the Commission for VAW 2023, which saw 189 entries, and inhouse quiz competition on preventive vigilance and VAW themes wherein 1357 employees participated.
⢠   Walkathons and human chains were organized across the country including one at Bhubaneswar Zone which saw the participation of over 800 students and members of Odisha Police and Odisha Vigilance.
⢠   Outreach programmes were conducted in 171 schools and 37 colleges involving approximately 16600 students.
⢠   More than 217 Financial Literacy Camps/ Awareness Gram Sabhas were held across all Zones which saw the participation of approximately 13350 people, majority of them being women.
⢠   57 seminars/ customer meets were also held on the themes of preventive vigilance, cyber-security and banking awareness which saw very enthusiastic participation.
The Bank has always been proactive in the implementation of the Official Language Policy of the Government of India. The Bank has taken appropriate follow up action to implement various items of the Annual Programme 2023-24 issued by the Government of India, Ministry of Home Affairs, Department of Official Language to transact the official work of the Union in Hindi and has made concerted efforts to achieve the targets set therein. The Bank complied with the directions given by the Third Sub-Committee of Parliamentary Committee on Official Language in course of Official Language inspection of branches/ offices in this financial year.
The Bank has been awarded the Rajbhasha Kirti Puraskar for the third consecutive year by the Department of Official Language, Ministry of Home Affairs, Government of India for its outstanding work in the field of progressive use of Official Language Hindi. During the financial year, many of our Zonal Offices also received the Regional Official Language Award from Govt. of India. Zonal Offices including Head Office organized UCO Bank G.D. Birla Smiriti Vyakhyanmala on various appropriate topics. UCO Rajbhasha Samman was given to the rank holders in Post-Graduation Hindi Examination. Popular Hindi programmes were also sponsored in various colleges/ universities by Zonal Offices with the objective of promoting Hindi and building the brand of the Bank.
⢠   The Government of India, Department of Official Language awarded the Rajbhasha Kirti Puraskar- Third to the Bank for the Financial Year 2022-23. The Managing Director and Chief Executive Officer of the Bank Shri Ashwani Kumar received the award on the occasion of Hindi Divas programme organized in Pune.
⢠   During the period, our 06 Zonal Offices received Regional Official Language Award from the Department of Official Language, Government of India for progressive use of Official language in different linguistic areas.
⢠   Our 05 Officers received awards in All India Inter-Bank Hindi Essay Writing Competitions organized by other nationalized banks including Reserve Bank of India.
25.2 Â Â Â Official Language Activities:
⢠   All India UCO Bank Official Language Officers Conference- A three-day 11th All India UCO Bank Official Language Officers Conference has been organized at the Regional Training Centre, Bhopal for the Official Language Officers of the Bank.
⢠   Hindi Training: Officers and employee were trained in Hindi through Hindi workshops organized by Head Office and Zonal Offices. Additionally, Official Language training has been provided to the Official Language Officers of Scale-1 and 2 at the Bank's Training Centre.
⢠   UCO Bank VIth All India Inter Bank Hindi Essay Competition- Panel Discussion cum Award Distribution Ceremony: The Bank organized the All India Inter Bank Hindi Essay Writing Competition-2023 on the topic 'Value and Ethics in Business' with the aim of promoting the use of the Official Language Hindi. The Panel Discussion cum Award Distribution program has been organized at the Bank's Training Centre.
⢠   A seminar on the topic 'Vishva-Bharati: Hindi: Hazari Prasad Dwivedi': A seminar was organized by TOLIC (Bank), Kolkata (Convenor-UCO Bank, Head Office) at Vishva-Bharati University, Shanti Niketan, Bolpur.
⢠   On the occasion of International Day of Disability-2023, an essay competition on the topic 'Social Service of Disabled Persons' was organized for the disabled employees of the Bank.
Publication of the Bank's Hindi in-house magazine 'Anugoonj' on quarterly basis; publication of 'souvenir' on the occasion of Hindi Divas 3rd All India Official Language Conference, Pune; seminar organized at Vishva-Bharati University, Santiniketan; souvenir on Value Ethics in Business was published on the occasion of UCO Bank VI All India Inter Bank Hindi Essay Competition- 2023.
25.4 Â Â Â Official Language Inspection:
⢠   During the Financial Year 2023-24 the third sub-committee of Parliamentary Committee on Official Language visited eight of our Zonal Offices for Official Language inspection. The committee appreciated the efforts being made by the Bank for the progressive use of the Official Language Hindi.
⢠   An Official language inspection of a total of 34 member offices including TOLIC (Bank), Kolkata was conducted by the Drafting and Evidence Sub-Committee of the Parliamentary Committee on Official Language. The responsibility of coordination of this inspection program was undertaken by UCO Bank, Head Office.
⢠   Department of Financial Services, Ministry of Finance, Government of India conducted Official Language Inspection of Head Office. The Official Language related work of the Bank was appreciated by the Ministry.
⢠   Apart from this, 10 Zonal Offices and 14 Branches were inspected by the Regional Implementation Offices, Department of Official Language, Ministry of Home Affairs, Government of India.
26. Â Â Â GENERAL ADMINISTRATION DEPARTMENT
Our Bank is committed towards promotion of renewable energy. As part of our commitment, we have installed Roof Top Solar panel of 30 KWP capacity at Executive Training Centre, NewTown. We have identified 30 Bank owned Building across the country for installation of roof top solar energy.
At UCO Bank, we recognize the importance of upholding strong relationships with regulatory bodies. We engage with regulators through various channels and activities to ensure compliance, promote transparency, and build trust. By aligning our strategic priorities, we aim to uphold fair customer treatment, mitigate risks, and promote a strong risk and compliance culture.
Regular meetings with regulatory bodies form an integral part of our engagement strategy. These meetings provide a platform for open dialogue, allowing us to address regulatory concerns, seek guidance, and share updates on our operations.
An independent Compliance Department headed by General Manager & Chief Compliance Officer has been set up by the bank which monitors adherence to various statutory and regulatory guidelines governing the bank's functioning.
The core function of the department is to ensure compliance of statutory, regulatory and Bank's internal guidelines for both domestic as well as overseas operations. The department is the single point of contact for RBI and ensures smooth conduct of Risk Based Supervision (RBS) as per prevalent SPARC framework.
Bank has a Board approved Compliance Function Policy which is framed in line with Reserve Bank of India guidelines and is reviewed & updated annually. The policy outlines the compliance philosophy of the Bank, role and set-up of the compliance vertical, composition of its staff and their specific responsibilities.
Compliance Department is also conducting periodic testing exercise to conform adherence and sustenance of RBIÂ guidelines/instructions.
Bank has launched - UCO Focus (Framework for Offsite Compliance & Surveillance) - An offsite tool to improve quality of compliance to various regulatory/ statutory / internal policy based guidelines and also to improve data quality & integrity.
The Compliance Department is also overseeing compliance function of overseas establishments who follow their respective territory based compliance policies as well as KYC-AML-CFT Policies. Each overseas branch has a compliance officer to look after the respective compliance function. Overseas branches comply with the applicable regulatory requirements host country regulatory guidelines and submit confirmations / compliance sustainability reports.
28. BOARD OF DIRECTORS28.1 Â Â Â Corporate Governance
The Bank has a strong commitment to good Corporate Governance, which is based on its core values of transparency, professionalism, and accountability. By consistently emphasizing these values in its daily operations, the Bank seeks to increase shareholders' value. The Bank's Board of Directors has established various Committees of the Board to oversee every aspect of the Bank's business. The Bank's systems and business processes are regularly reviewed at different levels to identify and address any potential areas of weakness. The Board of Directors believes that good governance is essential for building trust, loyalty, and goodwill with clients, business partners, employees, and investors, as well as to have a respectable position in society at large.
28.2 Â Â Â Changes in the Board of Directors
⢠   Shri Subhash Shankar Malik has been appointed as parttime Non-Official Director w.e.f. 08.05.2023.
⢠   Shri Ashwani Kumar, joined as the MD and CEO of the Bank w.e.f. 01.06.2023.
⢠   Shri Vijaykumar Nivrutti Kamble joined as the Executive Director of the Bank w.e.f. 09.10.2023.
⢠   Shri. Pramoda Ranjan Mishra has been elected as the Shareholder Director of the Bank and has assumed office w.e.f. 01.02.2024
⢠   Shri Aravamudan Krishna Kumar has been appointed as Part-time Non-Official Director as well as Non-Executive Chairman, on the Board of UCO Bank w.e.f. 21.02.2024.
⢠   Shri Ishraq Ali Khan, Executive Director, retired from office on 30.04.2023.
⢠   Shri Soma Sankara Prasad, MD & CEO, retired from office on 31.05.2023.
⢠   The tenure of Shri K Rajivan Nair, Shareholder Director of the Bank, ended on 31.01.2024
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28.4 Statement of Directors' Responsibility
The Board of Directors confirm that in the preparation of the annual accounts for the year ended March 31, 2024, the applicable accounting standards have been followed along with proper explanation relating to material departures, if any. The accounting policies framed in accordance with the guidelines of Reserve Bank of India, were consistently applied. Reasonable and prudent judgments and estimates were made so as to give a true and fair view of the state of affairs of the Bank at the end of the financial year and of the profit of the Bank for the year ended March 31, 2024. Proper and sufficient care was taken for the maintenance of adequate accounting records in accordance with the provisions of applicable laws governing banks in India; and the accounts have been prepared on an on-going basis. Internal financial controls have been laid down by the bank for ensuring orderly conduct of business.
The Board of Directors of the Bank welcomes Shri Aravamudan Krishna Kumar, Chairman, Shri Ashwani Kumar, MD and CEO, Shri Vijaykumar Nivrutti Kamble, Executive Director, Shri Subhash Shankar Malik, Part Time Non Official Director and Shri Pramoda Ranjan Mishra, Shareholder Director, nominated on the Board during the year 2023-24 and look forward for their valuable inputs towards the growth of the Bank. The Board acknowledges the valuable contributions of Shri Soma Sankara Prasad, Managing Director & CEO, Shri Ishraq Ali Khan, Executive Director & Shri K Rajivan Nair, Shareholder Director of the Bank, whose tenure completed during the financial year 2023-24.
The Board thank our customers, vendors, shareholders, business associates and correspondent banks for their continued support during the year. The Board remain thankful to the Government of India, Reserve Bank of India and other regulatory authorities for their support and valuable guidance and look forward to their continued support in the future.
The Board also thanks the staff unions/associations for the support extended by them. The Board place on record their deep appreciation for the dedication and contribution made by each employee at all levels. Our resilience to meet challenges was made possible by their hard work, solidarity, co-operation and support.
   Tie Up with M/s Fino Payment Bank Limited for Collection where bank has customized UCO Care Plus Scheme.
   Marketing and Wealth Management Department has identified lists of prospective customers by analytical study of Bank's existing customer base including identification of 3.40 lakhs priority customers as HNI segment. The prospective lists have been provided to branches and Zonal Offices from time to time for cross-selling of third party Products.
b) Â Â Â Wealth Management:
Bank is having arrangements with one Fintech Company for providing online mode of Wealth Management transactions including opening of Mutual Fund, Demat A/c & Trading A/c for our customers. The facility is also available under UCO-Mbanking Plus App.
Department is also trying to introduce new Wealth Management Products for the benefit of our customers and to improve generation of non-interest income.
c) Â Â Â Credit Card:
Bank is providing Credit Card facility to its customer on referral basis under tie up arrangement with SBI cards and payment services limited.
   Continuous follow up with ZO / Branches for CIBIL updation of the default borrowers.
   Applicant can check vacant locker status along with their annual rent before applying for a locker in a selected Branch.
   Installation of 500 new Passbook Printing Kiosks in phased manner
   Bank has Cyber Security Policy, Information Security Policy and Cyber Incident Response & Recovery Management Policy & Cyber Crisis Management Plan, to provide direction and support for cyber security related functions and operations within the Bank. The policies are updated on periodic basis as per guidelines received from the Regulatory Authorities.
Mar 31, 2019
I. PERFORMANCE OF THE BANK DURING 2018-19:
1. UCOâs Delivery Channels:
1.1 BRICK AND MORTAR NETWORK:
Bank has a geographically well-spread branch network in India and also has presence abroad. As of 31.03.2019, Bank has 42 Zones and 3086 domestic branches and 2 overseas branches (one each in Singapore and Hong-Kong). Bankâs representative office has been established in Tehran, Iran which is functional w.e.f. 25.03.2017.
The Global branch network over 5 years is as under:- (Global)
|
Marchâ15 |
Marchâ16 |
Marchâ17 |
Marchâ18 |
Marchâ19 |
|
SUT/Branch 3020 |
3077 |
3104 |
3108 |
3088 |
1.2 BRANCHES & OFFICES NETWORK:
The population category-wise break-up of domestic branches as of 31.03.2018 & 31.03.2019 is given below:
The domestic branches include 5 Flagship corporate branches, 7 AssetManagement branches, 4 service branches and 1 central processing centre, 1 integrated treasury branch. Further 27 Retail loan hubs, 1 SME hub, 72 currency chests are also functioning across the country attached to the major city branches of various centres.
2. BUSINESS PROFILE:
2.1. GLOBAL:
- Global business of the Bank stood at Rs.3,17,480 crore as of 31.03.2019 compared to Rs.3,05,838 crore showing an increase of 3.81% over March 2018.
- Global Deposits has increased by 8.83% as of 31.03.2019 and stood at Rs.1,97,906.78 crore. Global advances fell by 3.56% and stood at Rs.1,19,573.01 crore compared to Rs.1,23,990 crore as of 31.03.2018.
2.2. DOMESTIC:
- Overall domestic business of the Bank has increased by 8.28% reached at Rs.3,04,016.68crore as of 31.03.2019 from Rs.2,80,763.62 as of 31.03.2018.
- Total deposits increased by 11.78% and stood at Rs.1,92,278.15 crore.
- Advances registered a growth of 2.75% from Rs.108746.19 crore to Rs.111738.53 crore.
- CASA deposits increased by 33.53% on Y-O-Y and stood at Rs.85,559.42 crore, SB deposits grew by 8.35% and stood at Rs. 59,316 crore. Current deposits stood at Rs.26243.07 crore compared to Rs. 9329.68 as of 31.03.2018, showing a growth of 181.29% on Y-O-Y basis.
- Share of low cost deposits (CASA), in domestic deposits improved from 37.25% as of 31.03.2018 to 44.50% as of 31.03.2019.
2.3 FINANCIAL PERFORMANCE:
Bank has incurred loss of Rs.4321 core during FY 2019 as compared to Rs.4436 crore in FY 2018. The loss during FY19 is decreased and the operating Profit for FY 2019 is Rs.2760 crore as against Rs.1334 crore during FY 2018, thereby reflecting an increase of 106.89%. During the year FY 2019 Total income registered growth of 4.64% from Rs.15141 crore in FY 2018 to Rs.15844 crore in FY 2019. Total expenses of the Bank has declined by Rs.723 crore in FY 2019 against the previous year FY 2018. During the year Bank made provision of Rs.7081 crore against Rs.5771 crore in FY 2018.Cost of deposits has decreased from 5.37% in FY 2018 to 5.07% in FY 2019. Net interest income increased to Rs.4311 crore in FY 2019 from Rs.3125 crore in FY 2018. Capital Adequacy Ratio (CAR) under Basel lII stood at 10.70% as on March 2019. Govt. of India infused Capital to the tune of Rs.3330 crore during the quarter ended 31.3.2019.
3. TREASURY & INTERNATIONAL:
Domestic Investment of the Bank during the year 2018-19 increased by 15.20% from Rs.69987 crore as on 31.03.2018 to Rs.80622 crore as on 31.03.2019 largely due to allotment of recapitalization bond and purchase of Government securities.
The SLR investment of the Bank increased by 8.31% from Rs.52471 crore as on 31.03.2018 to Rs.56834 crore as on 31.03.2019 mainly due to purchase of high yielding Govt. Securities. The Non-SLR Investment (Domestic) grew by 35.81% from Rs.17516 crore as on 31.03.18 to Rs.23788 crore as on 31.03.19 mainly due to allotment of recapitalization bond from GoI amounting to Rs.6406 crores.
During the year 201 8-1 9, the bank has earned income from Treasury operations including profit from sale of investments amounting to Rs.6252.47 crore vis-aâ- vis Rs.6005.45 crore during the year 2017-18, thereby registering a 4.11% increase in treasury income y-o-y basis mainly due to higher interest income from investments and profit from sale of investments.
During the year 2018-19, the bank has registered a growth of 2.97% in interest income from domestic investments which stands at Rs.5326.45 crore as on 31.03.19 as compared to Rs.5173.03 crore as on 31.03.18 thereby registering a growth of Rs.153.43 crore y-o-y basis mainly due to increase in domestic Investment portfolio.
3.1 Export Business:
âWith 66 âBâ Category Branches across India, UCO Bank is committed to actively cater to the needs of its exporters. Total Merchant Turnover of the Bank during the Financial Year ended 31st March, 2019 stood at Rs.72,485.11 crore which is 78.82 % higher than previous year. Bank Export credit outstanding during 31st March, 2019 is 2,204.40 crore, registering a growth of 11.46% over 31st March, 2018.
âUCO Bankâ, has been facilitating Bi-lateral Banking Trade transactions with Iran under âRupee Payment Mechanismâ since Feb, 2012 as mandated by Govt. of India/RBI, thereby facilitating Indian Exporters, exporting permissible goods and services to Iran.
4. SOCIAL BANKING:
4.1. Priority Sector Advances:
The Bank has been showing significant performance in lending to Priority Sector over the years and has been effectively servicing the priority sector and agriculture sector with its vast network of rural and semi-urban branches.
As on 31.03.2019 the Priority Sector Advances of the Bank stood at Rs.54,849 crore constituting 43.48% of Adjusted Net Bank Credit (ANBC).
4.1.1. Agriculture Advances:
Total Agriculture Advances of the Bank stood at Rs.21,420 crore constituting 16.98% of ANBC. Direct Agriculture stood at Rs.16,452 crore constituting 13.04% of ANBC.
4.1.2. Advances to Weaker Sections:
Advances to Weaker Section stood at Rs.16479 crore as of 31st March, 2019 constituting 13.06% of ANBC.
4.1.3. Minority Community Advances:
Total Minority Community Advances of the Bank as on 31.03.2019 stood at Rs.7141 crore constituting 15.25% of Priority Sector Advances.
5. Unique Schemes:
The Bank has one unique scheme - âUCO Uthaanâ for upliftment of BPL families & all-round development of adopted villages.
UCO Uthaan Scheme: Social-cum-Financial upliftment scheme for BPL families & all-round development of villages.
Under the Scheme, villages having large number of BPL families are adopted by the Bank through its nearest branch to bring the BPL families out of the clutches of poverty and to bring about a holistic change in the villages. Under the scheme, a holistic development plan of the villages is drawn and followed up for covering areas like education, financing for rural housing, formation of SHG and micro-financing, development of handicrafts & rural artisans and extending finance under DRI Scheme.
The Bank has adopted 31 villages in 10 states i.e. Assam, Bihar, Gujarat, Maharashtra, Odisha, Punjab, Rajasthan, Tamil Nadu, Uttar Pradesh & West Bengal under UCO Uthaan Scheme.
In these villages, Bank has conducted financial literacy camps to educate the villagers, extended financial support to them and has also initiated developmental activities under Corporate Social Responsibility. Under financial assistance, Bank has given General Credit Cards (GCC) to small traders, Artisan Credit Cards (ACC) to artisans, Kisan Credit Cards (KCC) to farmers, loan to SHGs, loan for doing animal husbandry activities, loan to women & SC/ST beneficiaries. Many small traders have started their own business with the support of Bank loan. Through CSR activities, Bank has given Ceiling Fans, Water purifiers to different schools, Steel Almirahs, Books for school library, School uniform for school going children, installation of hand pumps for drinking water in the villages, installation of Solar street lights in the villages, construction of metallic road.
In two villages, out of above 31 villages, Bank has provided doorstep banking facilities to the villagers of these unbanked villages through Mobile Van. The Van visits these two villages on a predetermined day and time during the week and provides all types of banking facilities to the villagers at their doorstep. There has been increase in the saving habits of the villagers due to this initiative. Through these vans, villagers are also being financially educated. By these activities, there is an all-round development in the adopted villages and the villagers are very much benefitted.
By these efforts, 6568 BPL families, in these 31 adopted villages have been provided with credit assistance by Bank to uplift their livelihood in better way during last 4 years. These BPL families are generating their income by adopting several activities like dairy farming, goat farming, betel leaf cultivation, vegetable growing, cycle repairing, shoe mending, fruit vending, grocery shop, tea stall, beedi making, trolley plying, mason jobs etc.
5.3 During the year 2018-19, Bank has introduced many new schemes to increase agriculture business. Some of the schemes are given below:
- UCO Food & Agro Processing Unit.- Financing new/existing Agro & Food Processing units.
- Two- wheeler, light &Medium Vehicle for farmer.- The scheme is specially designed to provide hassle free financial assistance for conveyance needs of farmer for farm activities.
- UCO FPC( Farmer Producer Company) & UCO NFPC(UCO Non- Farmer Producer Company) .
- UCO AMI - Agricultural Marketing Infrastructure.- The UCO AMI Scheme lays special focus on developing and upgrading Gramin Haats as Gramin Agricultural Markets (GrAMs) through strengthening of infrastructure.
- UCO BC PLUS - UCO Bank has entered in to tie up arrangement with M/s atyati Technologies Private Limited for increase of Credit linkage in Agriculture & Allied Activities under Business Correspondent (BC) Channel.
The Bank has signed MoU with M/s Atyati Technologies on 31-01-2019 in this regard. Following Loan products have been implementedon UCO BC PLUS scheme:
a) UCO BC PLUS - DAIRY.
b) UCO BC PLUS - CROP PRODUCTION.
c) UCO BC PLUS - RURAL BUSINESS CENTRE.
6. REGIONAL RURAL BANKS (RRBs):
UCO Bank sponsored RRB namely, Paschim Banga Gramin Bank (PBGB) is head quartered at Howrah, West Bengal with four regional offices and 230 branches as on 31.03.2019. Another sponsored RRB, Bihar Gramin Bank has been amalgamated with Madhya Bihar Gramin Bank(sponsored by Punjab National Bank) and a new RRB named Dakshine Gramin Bank (Sponsored by Punjab National Bank) has been formed w.e.f. 01.01.2019.
6.1 Capital Position of RRBs:
The total capital composition of Paschim Banga Gramin Bank as on 31.03.2019 stood at Rs.154.51 crore (Govt. Of India), Rs.108.16 crore (UCO) & Rs.46.35 crore (West Bengal State Govt.).
Performance of RRB during 2018-19:
6.1.1. Paschim Banga Gramin Bank:
As per unaudited financial results, total deposit of Paschim Banga Gramin Bank stood at Rs.5181.30 crore as on 31.03.2019, registering growth of 8.79 percent. Total advance reached a level of â.2739.53 crore with an annual growth of 13.25 percent as on 31.03.2019. CD ratio stood at 52.87% on 31.03.2019 as against 50.79% on 31.03.2018.
The gross NPA stood at Rs.373.45 crore as on 31.03.19 vis-a-vis Rs.474.54 crore as on 31.03.2018. Gross NPA to Gross Advance stood at 13.63% as on 31.03.2019 as against 19.62% as of 31.03.2018. The net NPA ratio of the RRB stood at 9.16% as on 31.03.2019 as against 14.85% as of 31.03.2018.
Paschim Banga Gramin Bank has recorded a net profit of Rs.25.57 crore as on 31.03.2019 as compared to net loss of Rs.39.40 crore as on 31.03.18, thereby decreasing accumulated loss from Rs.107.97 crore as on 31.03.2018 to Rs.82.40 crore as on 31.03.2019.
6.2. Corporate Social Responsibility:
Bank has taken several programmes/initiatives as a part of Corporate Social Responsibility. Few of these programmes/ initiatives are as under:
a) Our Bank has set up 27 Rural Self Employment Training Institutes in 7 States namely Assam, Bihar, Himachal Pradesh, Odisha, Punjab, Rajasthan and West Bengal. These 27 institutes, with dedicated infrastructures, are devoted to impart training and skill upgradation and to mitigate the unemployment and under employment problems for rural youths. These institutes are set up by the Bank as a part of the initiative taken up by the Ministry of Rural Development to establish dedicated training institutions for development of entrepreneurship skills in rural youth, under Corporate Social Responsibility (CSR). All RSETI trained 17883 candidates and 7792 beneficiaries have been provided Credit Linkage of Rs.98.72 crore during the Financial Year 2018-19.
b) Our RSETI, Goalpara, Assam was adjudged best performing RSETI among North Eastern & Hilly states for the year 2018-19 and was awarded certificate of excellence on Aajeevika Evam Kushal Vikas Mela held on 5th May, 2018 in Ranchi Jharkhand.
c) Bank under UCO Utthan scheme has adopted 31 villages falling under 26 UCO Branches in 19 Zones of the Bank for upliftment of BPL families and all-round development of adopted villages with financial & social intervention.
d) Under the initiative of Reserve Bank of India, bank has set up 10 CFLs (Centres for Financial Literacy) in 10 Blocks, 5 each in Bhadrak and Dhenkanal district of Odisha. The Bank and NABARD bear the cost of operationalisation of these CFLs in 40:60 ratios.
e) Bank has 34 Financial Literacy Centres across the country and has recruited 29 Financial Literacy Counsellors for conducting Financial Literacy Camps. During Financial Year 2018-19 the Financial Literacy Counsellors have conducted 6008 Financial Literacy Camps thereby spreading Financial Awareness to 353303 participants.
f) Under the initiative of NABARD, Financial Literacy Awareness Programme (FLAP) has been initiated in all Rural Branches of Our Bank for imparting financial literacy awareness for different target segments of population. Programmes were on digital literacy and safety measures to be adopted while doing e-transaction. Our Bank has 1075 Rural Branches where 9258 FLAPs were organised with contribution from our Bank in these programmes amounting to Rs.1.13 crore.
7. MICRO, SMALL & MEDIUM ENTERPRISES (MSME):
Bank recognizes importance of MSME sector in economic growth of the country. The advance under Micro, Small & Medium Enterprises (MSME) as on 31.03.2019 is Rs.23416.28 crore.
New Initiatives taken under MSME during FY 2018-19:
- Bank has taken Board approval for signing MOU with CGTMSE for participating as lender on the Udaan Portal. Since guarantees would be extended upfront, Bank can take credit decision right at the beginning.
- SME hubs proposed to be established in nine centres i.e. Kolkata, Mumbai, Hyderabad, Chennai, Bangalore, Ahmedabad, Chandigarh, Coimbatore and Surat. SME Hub at New Delhi has already been made functional to augment the business under MSME.
- New product on E-Rickshaw i.e. âE-Rickshaw under Mudra Schemeâ has been launched on 28.06.2018.
- Bank introduced âMukhya Mantri Swavalamban Yojana 2018â scheme for âBonafide Himachaliâ i.e. resident of the State of Himachal Pradesh on 28.11.2018.
- New Schemes âUCO PM Credit Scheme for Powerloom Weavers under MUDRAâ and âUCO PM Credit Scheme for Powerloom Weavers under Standup Indiaâ has been launched on 29.11.2018.
- Bank has tied-up with RXIL, one of the players at TReDS platform and is discounting online bill w.e.f. February 2019. A total of 656 bills were purchased amounting to Rs.35.45 crore during 05/02/2019 to 31/03/2019 on this platform.
- Scheme for financing âTwo Wheeler under Mudraâ launched w.e.f. 22.02.2019.
- Bank has tie-up with www.psbloansin59minutes.com, one of the fintech companies, for generation of leads and reduction of TAT.
8. RETAIL BANKING:
The performance highlights of the bank under retail banking during FY 2018-19 are furnished hereunder:
(Rs. in crore)
|
As on March 2018 |
As on March 2019 |
% Growth Y-o-Y |
||
|
Product |
||||
|
Home Loan |
12694 |
13545 |
6.70% |
|
|
Car Loan |
1356 |
1357 |
0.07% |
|
|
Personal Loan |
464 |
514 |
10.78% |
|
|
Other Retail Loan |
7439 |
7076 |
-4.88% |
|
|
Total Retail |
21953 |
22492 |
2.46% |
|
- Retail loan portfolio registered Y-o-Y growth of 2.46%. There is a growth of 6.70%, 0.07%, and 10.78% in Home loan, Car Loan, and Personal Loan Categories respectively during the FY 2018-19.
- NPA under Retail loan Portfolio (excluding Pool) reduced by Rs.91.88 crore during the year ended 31st March 2019 in comparison to 31st March 2018. During this period, NPA in all Retail Loan products, except UCO Property loan, has shown a downward trend.
- Pool account of Rs.500.00 crore under Home loan has been sourced during this Financial Year.
- Integration of Credit Information Report pulling through CIBIL and CRIF has been implemented in LAPS.
- Seven Retail loan Schemes have been customised for processing through LAPS.
- A new Education Loan Scheme âChief Ministerâs B.Ed. Anuprerna Yojnaâ is introduced to cater the financial needs of students domiciled in the State of Tripura who are pursuing B.Ed. course.
- UCO Gold Loan Scheme was modified and Processing & Documentation charges are completely waived in UCO Gold Loan Scheme to make it more competitive and in line with similar scheme of our peer Banks.
- An MOU was signed with M/s Prasar Bharti to provide Retail Loans at concessional rate to Employees/Deemed Employees of M/s Prasar Bharti.
- 100% waiver of processing charges was given to the Land Lords of our Bankâs Branch/ATM premises under UCO Rent Scheme till 31.03.2019.
- To streamline processing of Retail Loans and reduce the turnaround time, âRevised structure & Operational Guidelines of Retail Loan Hubsâ were implemented. Three more RLHs at Bangalore, Shimla and Bhubaneswar were established during the current Financial Year.
- Bank has introduced âMonsoon Offer-2018â from 01.07.2018 to 30.09.2018 wherein 100% processing and documentation charges are waived in Home and Car Loans.
- Bank has also introduced âGrand festive offer-2018â from 01.11.2018 to 31.01.2019 which is further extended to 31.03.2019 wherein 100% processing and documentation charges are waived in Home and Car Loans.
9. BANCASSURANCE:
- Bank increased the number of Specified Persons (SPs) during the Fiscal 2018-19 for augmenting Bancassurance business. These Specified Persons are duly trained and certified by Insurance Regulatory & Development Authority of India (IRDAI). Number of Specified Persons posted in Branches/Zones is 316 in March 2018 and subsequently increased to 332 in March 2019.
- Bank is a Corporate Agent for Life and General Insurance Companies and Master Policy Holder for Group Life Insurance category.
1. Life Insurance Channel Partner:-
(a) M/s Life Insurance Corporation of India
2. General Insurance Channel Partners:-
(a) M/s Reliance General Insurance Company Co Ltd.
(b) M/s Future Generali India Insurance Co Ltd.
(c) M/s Liberty General Insurance Ltd.
3. Group Life Insurance Channel Partner:-(a) M/s Kotak Mahindra Old Mutual Life Insurance Co. Ltd.
- Bank also distributes units of the following Mutual Fund Channel Partners:-
1. M/s. Kotak Mahindra AMC Ltd.
2. M/s. Reliance Nippon Life Asset Management Limited,
3. M/s. SBI Funds Management Private Limited.
4. M/s. UTI AMC Limited
5. M/s. HDFC Mutual Fund
6. M/s. Baroda AMC India Limited
7. M/s. ICICI Prudential AMC Limited
8. M/s. Franklin Templeton Mutual Fund
9. M/s. Aditya Birla Sun Life AMC Limited
|
Business Performance under Bancassurance Life, Non-Life & Mutual Fund |
Business: |
|||
|
(01/04/2018 to 31/03/2019) |
||||
|
Sl |
Name of the Company |
Premum |
Commission |
No of Policy/ |
|
Collected |
Earned |
Folio |
||
|
(Rs. in Lakhs) |
(Rs. in Lakhs) |
(Rs. in Lakhs) |
||
|
1. |
||||
|
M/s Life Insurance Corporation of India |
4577.00 |
274.87 |
2899 |
|
|
2. |
||||
|
M/s Reliance General Insurance Co. Ltd. |
1667.00 |
197.45 |
283387 |
|
|
3. |
||||
|
M/s Future Generali India Insurance Co. Ltd. |
803.65 |
121.83 |
44859 |
|
|
4. |
||||
|
M/s Liberty General Insurance Co. Ltd. |
1758.39 |
270.49 |
79222 |
|
|
5. |
||||
|
M/s. Kotak Mahindra Old Mutual Life Insurance Co. Ltd. |
1279.11 |
N/A |
8896 |
|
|
6. |
||||
|
Mutual Fund Business |
228.72 |
33.24 |
798 |
|
|
Total Business |
10313.86 |
897.88 |
420061 |
|
The total Commission earned from Bancassurance Business for FY 2018-19 is Rs 897.88 lakhs.
10. FINANCIAL INCLUSION:
10.1. Pradhan Mantri Jan Dhan Yojna (PMJDY):
Bank has been allotted with 16225 villages across the country to provide inclusive Banking Facility in unbanked / under banked areas. In line with DFS directives these villages were categorized into 4066 Sub Service Area (SSA). Out of these 4066 SSAs, 3600 SSAs are covered though BC agents and remaining 466 SSAs in tier 5 villages (Population above 5000) are covered through Branches for ensuring universal Financial Inclusion and to bring the entire population under ambit of structured Banking facility. Bank has deployed 3564 Bank Mitras in these allotted SSAs. During the FY 2018-19 total 167.78 lacs transactions amounting Rs.6281.55 crore averaging every month about 13.98 lacs transactions amounting Rs.523.46 crore carried out through Micro ATMs used by BC Agents.
By end of March 2019 Bank has Rs.2221.30 crore deposits in 76.43 lacs PMJDY Accounts with average balance of Rs.2906.08. We have distributed around 39.98 lacs RuPay Cards to the eligible PMJDY account holders. During the FY 2018-19 average transactions to the order of 1.50 lacs took place through Rupay Cards on Micro ATMs used by BC agents amounting to Rs.75.70 crore in aggregate.
10.2. Aadhaar Seeding & Authentication:
As per revised guidelines Aadhaar can be given voluntarily as identity proof for opening customer accounts. Aadhaar is required for availing benefits under various welfare schemes. By 31st March 2019, around 84% operative CASA have been seeded with Aadhaar number and Aadhaar authentication has been done in 52% of operative CASA. Aadhaar based Direct Benefit Transfer worth Rs.5905.90 crore was transferred to the accounts of beneficiaries.
10.3. Aadhaar Enrolment Centre:
A total no of 300 Aadhaar Enrolment centers has been set up covering 10% of the branches as per UIDAI guidelines in our Bank. So far, 1016 staff members (operators/supervisor) have passed the certification exam and 1016 User IDs are activated in our bank. At present Bank is doing about 8 enrolments/updations per day per centre.
10.4. Micro Credit-Overdraft Facility:
Detailed guidelines by IBA for providing Overdraft facility up to 10,000/- has been sent to all branches/zones. Number of PMJDY accounts using the OD facility in the bank as on 31.03.2019 is 161556 involving aggregating sanctioned amount of Rs.32.38 crore.
10.5. Social Security Schemes:
Working on the governmentâs theme of providing social security to hitherto unbanked masses, Bank has implemented Insurance and Pension products namely, Pradhan Mantri Jeevan Jyoti Bima Yojna (PMJJBY), Pradhan Mantri Suraksha Bima Yojna (PmSBY), Atal Pension Yojna (APY) through its Branch and BC network. Under PMJBY scheme, 7.95 lakh subscribers are insured and under PMSBY scheme 15.58 lakh lives are insured. So far a total of 3137 claims are settled under PMJJBY and 665claims are settled under PMSBY. Further, total subscribers under Atal Pension Yojna crossed 1.99 lac till year end.
10.6. Revenue generated through Financial Inclusion Project:
Consistent, efforts under Financial Inclusion have given good results and Bank has started gaining both tangible and intangible benefit out of these activities. While decongestion of branches, reduction of transaction cost and increase in CASA base are intangible benefits of FI Project. Tangible benefits have come in the form of commission earned under various products. Bank has earned Rs.193.13 lacs in PMJJBY, Rs.22.80 lacs in PMSBY and Rs.76.34 lacs in APY as commission during FY-2018-19. Similarly an aggregate amount of Rs.7.28 crore is earned against DBT / DBTL during the year.
11. GOVERNMENT BUSINESS:
Government Business Cell handle Small Saving deposit schemes, collection of direct and indirect taxes, Central and State Government Pension, Atal Pension Yojna (APY), Sovereign Gold Bonds (SGB) and National Pension System (NPS).
During the 2018-19 all Branches have been authorized for the opening of account under Public Provident Fund (PPF), Sukanya Samriddhi Accounts (SSA) and Senior Citizen Saving Scheme (SCSS). There was increase in the accounts opened under PPF -9984 (23%) and Sukanya Samriddhi Accounts scheme -14,675(71%) during the year 2018-19.
There was a substantial increase in accounts opened under APY Scheme, from 64730 during 2017-18 to 78745 during 2018-19 shows 22% Y-o-Y growth.
Bank earned Turn over Commission to the tune of Rs.20 crore during 2018-19 on various productsnamely different state tax collections, CBDT tax collections, CBEC tax collections, central and state government pensions, Atal pension Yojna(APY), PPF, Sukanya Samridhi Yojana , SCSS and Sovereign Gold Bond etc.
12. LEGAL MATTERS:
With the ever changing trend of the legal contours concerning the Banking industry, the significance of the role & responsibilities shouldered has been manifold. With the PCA looming over the Bank, the primary focus has been recovery & Law Department, Head Office has been working in tandem with the other departmentsâ viz. Recovery, Retail etc. in augmenting Bankâs recovery prospects.
The periphery work has been expanding entailing within its ambit framing of Policies as well as providing tangible assistance to other Departments for the same, rendering opinion as and when referred to from various Corporate Departments of Head Office as well as Zonal Offices / Branches from time to time, vetting, drafting, monitoring of cases (wherein Bank is a party) filed / pending before various fora of Law and adapting the various changes ushered in the legal spectrum involving the Banking Sector, thus ensuring protection of Bankâs interest in every step. As on 31st March, 2019, Law Department, Head Office has issued 20 Circulars, highlighting, all the amendments made to the recently enacted Insolvency and Bankruptcy Code, 2016 as well as its analogous Regulations / Rules issued thereunder in view of the various Gazette Notifications published in this regard by the Ministry of Corporate Affairs & insolvency and Bankruptcy Board of India (IBBI), Companies Act, 2013, Security Interest (Enforcement) Rules, 2002 etc.
Law Department, Head Office has also been instrumental in framing a policy on âIssuance of Look out Circularsâ after the Ministry of Home Affairs accorded authority to the MD & CEOs of PSBs for making requests for issuance of Look out Circulars. Further, necessary assistance has also been rendered for imparting effective training to Bankâs Staff on topics of banking pertinence viz. âDocumentationâ, Tendering Processes etc.,
Further, Law Department, Head Office has been regularly monitoring cases filed before various fora of Law (viz. Honâble Supreme Court, Honâble High Courts, Debts Recovery Tribunal, Debts Recovery Appellate Tribunal, Consumer Forum etc.) and has contributed towards ensuring protection of Bankâs interest therein.
13. RECOVERY:
The increasing trend of NPAs in the Banking Industry over last four years has become concern for the Bank. Gross NPA level of our Bank increased from 24.64% in March, 2018 to 25.00% in March, 2019 and the quantum of GNPAs has decreased from Rs.30549.92 crore to Rs.29888.33 crore respectively. The NNPA percentage decreased to 9.72% from 13.10% of previous year.
During the FY 2018-19 the Bank has witnessed fresh slippages of Rs.9082.44 crore. Cash Recovery for Rs.2991.52 crore for the year ended 31st March, 2019. The total reduction in Cash Recovery & Up-gradation of NPA during FY 2018-19 is Rs.5323.72 crore. Maintaining Bankâs Asset quality and recovery of Bad debts remain main focus area for the Bank.
13.1. Recovery performance:
Bankâs recovery mechanism is also geared up at all levels of the organization to take advantage of modified compromise settlement scheme, SARFAESI Act, DRTs, Lok Adalats, NCLT, Country wide mega Recovery Camps, Road Shows, MAO campaigns, declaration of willful defaulters etc. were organized for speedy recovery.
The details of GNPA, NNPA, Cash Recovery and upgradation for the last three years are as under:
(Rs. in crore)
|
Particulars |
31.03.2017 |
31.03.2018 |
31.03.2019 |
|
Cash Recovery |
2038.66 |
1680.04 |
2991.52 |
|
Up gradation |
4300.45 |
2610.08 |
2332.20 |
|
Total |
6339.11 |
4290.12 |
5323.72 |
|
Recovery in Loss Assets |
|||
|
(ML & Technical Write-off accounts) |
139.81 |
181.56 |
435.49 |
|
Gross NPA |
22540.95 |
30549.92 |
29888.33 |
|
Gross NPA % |
17.12% |
24.64% |
25.00% |
|
Net NPA |
10703.39 |
14082.07 |
9649.92 |
|
Net NPA % |
8.94% |
13.10% |
9.72% |
The total cash recovery plus upgradation for the year ended 31st March, 2019 Rs.5323.72 crore as against Rs.4290.12 crore for the year ended 31st March, 2018. The recovery in written-off accounts is Rs.435.49 crore for the year ended 31st March, 2019 compared to Rs.181.56 crore for the previous year.
Recovery in Loss assets has a direct impact upon the profitability and the Bank giving priority in monitoring / follow-up for recovery in such accounts. A separate vertical in the Bank is monitoring consistently for recovery in loss assets including technically as well as prudentially written-off accounts.
13.2. Some Recovery initiatives:
Bank has liberal compromise Settlement scheme for NPA and ML accounts having O/s Balance up to Rs.25.00 Lac under which the branch heads are empowered to approve compromise proposal to ensure more NPA accounts are covered under the proposed non-discretionary/ non-discriminatory OTS Scheme.
- Bank has formed 144 clusters covering all the zones, with each cluster comprising of 4-5 branches of highly concentrated NPA to maintain contact with the borrowers, organize recovery camps at regular intervals and scout OTS proposals. Emphasis is also given for OTS/Compromise settlement for eligible NPA accounts under all categories.
- Bank has empanelled 513 Enforcement & Recovery Agents and 1267 Business Correspondents (BCs) for effective and time-bound enforcement of action under SARFAESI Act and early resolution of NPA accounts.
- Bank has implemented the Legal Management System with the objective to facilitate different departments at Head Office & Zonal Offices for monitoring legal matters, creating database of all cases pending before different courts for effective monitoring and early resolution of accounts.
- MAO (Many against One) approach is adopted against recalcitrant borrowers on a regular basis and being monitored at HO level.
- Countrywide Mega Recovery Camps are being organized on Two days every month.
- Mega e-auction of properties under SARFAESI is being condued on quarterly basis.
- Eligible properties put for auction are uploaded on âe-B-G-r a common web portal of IBA (https://ibapi.in) (Indian Banks Auction Properties Information) for meaningful search by the prospective buyers from 28.02.2019.
- Accounts eligible for NCLT are being explored vigorously. Bank is in liaison with other financial creditors on regular basis, for considering the way forward in respect of NCLT cases.
Most of the accounts under NCLT are consortium / multiple banking accounts which are being monitored for resolution on case to case basis in consultation with leader of consortium etc. Where we are the leader of the consortium, the department is meticulously following up each and every account for the purpose of resolution.
Where our Bank is a member of Consortium / JLF, we are taking up the critical issues from Head Office with the top management of the respective Leader Banks on regular basis, specifically to convene meeting of JLF at frequent intervals and ensuring our Bankâs participation at suitable levels in such meetings.
- Eligible NPA accounts are identified for Sale to ARCs from time to time at regular interval. A total of 434 A/cs amounting to Rs.6150.99 crores since inception and 2 accounts sold for Rs.46.24 crore during the year ending 31.03.2019.
- State specific Schemes were formulated to widen the scope of NPA recovery as per requirement under Debt Waiver at the State Level through the SLBC of the respective states such as 1) Kerala Govt. Educational Loan assistance, 2) Debt Redemption Scheme - U.P., 3) Chatrapati Shivaji Maharaj Swetkari Sanman Yojna (CSMSSY-2017) of Maharashtra Govt. etc.
14. CREDIT MONITORING:
Present economic situation has accentuated upsurge of bad loans in the banking industry and force banks to deal with NPA more proactively by stressed asset management for arresting fresh slippage. Bank has geared up mechanism of tracking by initiating measures as under:-
1. Bank has put in place framework for identification of Red Flagged Account (RFA) based on triggers known as Early Warning Signals (EWS) as per guidelines on Framework for dealing with loan frauds leading to the identification of the account as fraud or not within the period of six months from date of marking the account as RFA. Regarding System identification of EWS, Proof of Concept (POC) is completed and total process will be completed within 30.06.2019.
2. Considering severe stress in Micro, Small and Medium Enterprises (MSME) sectors, Framework for revival and rehabilitation ofMicro,Small and Medium Enterprises and one time restructuring of MSME, formulated in terms of RBI guidelines and has been put in place for resolution of stressed asset under these sectors.
3. As a part of stressed asset management, default assets Rs.5 crore and above weekly reporting done to RBI at Central Repository of Information on Large Credit (CRILC) platform and monitored on daily basis.
4. NPA Tracker through mobile application has been introduced for monitoring stressed and NPA accounts at base level.
To improve upon functioning at the grass root level,bank has devised furtherfollowingstrategic policy and guidelines:
a) Operational guidelines for Credit Monitoring has been updated and put in place on 27.07.2018 after obtaining approval of the Board.
b) Policy for empanelment of TEV consultants has been revised and put in place on 04.05.2018.
c) Based on the feedback received from field functionaries and following the guidelines of Reserve Bank of India (RBI), thirty Seven (37) numbers of circulars issued on effective credit monitoring during Financial Year (FY) 2018-19.
d) Engagement of Agencies for Specialized Monitoring and effective monitoring of Large Borrowal accounts with exposure above Rs.250.00 crore has been introduced on 15.02.2019 after obtaining approval of the Board.
e) Guidelines for empanelment and appointment of Stock & Book Debt auditors has been revised and put in place on 10.12.2018.
f) Stressed accounts of Rs.5.00 crore and above was directly monitored by High Power Committee (HPC), headed by Executive Director (ED) on fortnightly basis.
15. RISK MANAGEMENT:
The Score of our Bank under EASE index under PSB Reform Agenda has improved. As on 31.12.2018, our Bankâs position is 11th among all PSBs.
Bank has a Contingency Funding Plan to manage a range of scenarios of severe liquidity stress. The funding plan contains the details of potential contingency sources, estimated amount which can be drawn from these sources, lead time needed and procedure detailing when and how each of the actions will be activated.
In order to bring our Bank out of Prompt Corrective Action (PCA), the department in consultation with other Corporate Department, has initiated various Turn Around Strategies and Action Plans. The Strategies are being implemented by the functional Departments in a time bound manner.
The risk culture in Bank is being developed by the Department by conducting in- house Training / workshop programme related to Risk Management in Bank, from time to time.
The Department has come up with a monthly Bulletin namely âThe Risk Mirrorâ, containing latest topics on Risk Management in Bank.
The Department has developed Standard Operating Procedure (SOP) on Fraud Risk, Risk Mitigation Plan (RMP) under Risk Based supervision by RBI, Credit Audit and PCA.
Best practices at Industry level in Credit & Operational risk areas have been identified and their implementation in the Bank in a time- bound manner has been initiated. All the Policies of our Bank have been revisited / reviewed.
Root cause analysis of frauds/ large value NPA accounts is being carried out. Necessary changes in the respective policies / system & procedures to curb the recurrences of fraud/slippage are being done.
Our pricing of loan to Corporate Borrowers is linked with RAROC document. The risk appetite of the Bank on different segments is also captured in ICAAP Document.
The online module for Credit Audit system has been implemented
16. INFORMATION TECHNOLOGY & ALTERNATIVE DELIVERY CHANNELS:
A. New Projects/Applications launched in Current Financial Year
1. Near Disaster Recovery (NDR)- Implementation of NDR site has been completed on 12th December, 2018 for zero data loss during exigencies and to enable quick recovery and continuity of critical business operations.
2. ATMs/Debit Cards -
- Introduction of NFC enabled Contactless Debit Card equipped with NCMC functionality.
- Implementation of Fraud Risk Management (FRM) Solution at ATM Switch level.
- SMS to customers on decline of Ecommerce transaction using new Debit Card with Printed PIN (as First time usage in ATM is required)
3. M-banking
- Introduction of UCO container app--having Mobile banking, UPI, UCOPay , mpassbook, UCOSecure together
- Implementation of Cluster app for assistance in Loan Recovery efforts
- BHIM UCO UPI app made available in Apple Store for iPhone / iPad users.
- BBPS pre-login implementation with URL https:// bbps.ucobank.com.
- Upgradation of UPI app to UPI 2.0
- Implementation of EASE features like FD Closure, RD closure, PAN seeding, submission of Form 15G/H, Enrolment for Pradhan Mantri Suraksha Bima/ Jeevan Jyoti Yojana, TDS/Form 16 certificate issuance etc.
4. E-Banking
- Implementation of EASE features like 15G/15H form submission, Issuance of loan interest certificate, launch/ follow up of compliants, TDS/Form 16 certificate issuance etc.
- Maharastra GRAS Treasury integration for collection of Maharashtra Tax
- Transactional Email alert to customerâs registered email id.
- Facility of online transaction to Sukanya Samridhi Yojna through e-banking
- Nomination facility feature implemented in e-banking for Online FD opened .
- 21 new college/school have been added in Smarty Pay module for collection of Fee/funds.
B. Performance/Feature enhancement of existing projects
1. In-house software development and CBS Customizations:
- Application Software Developments
- Implementation of ONLINE module for One Time Settlement (OTS) of bad loan through our Bankâs website for processing of OTS application of any amount.
- Whistle Blower Module under HRMS portal for employees to lodge financial and non-financial complains.
- The UCO Employee Share Purchase Scheme (ESPS) 2019 application was developed for processing of employees DEMAT a/c opening applications, processing of Equity share applications.
- Online Portal for customer for reporting unauthorized transaction by customers.
- Development of online application module for Retirees to apply Medical Insurance as per the guidelines provided by the IBA
- Development of Provident Fund (PF) Management module in HRMS application for settlement of PF/ Pension optee after retirement for Head Office PF Department with Dual authentication (Maker & Checker) system
- Customisations in CBS Environment
- Implementation of Motor Accident annuity deposit module in FINACLE towards disbursement of compensation to the beneficiaries of motor vehicle road accidents
- Incorporation of additional security features such as Random number (Secret Code) and Sequence number in each cheque leaf of personalized chequebook.
- Customizations for Dual Aadhaar authentication for AEPS SHG Transactions.
2. Grid Cheque Truncation System & NACH:
As on 31.03.2019, 465 centres are live under CTS under three Grids (Northern Grid - 132 centres, Southern Grid - 200 centres & Western Grid -124 centres).
3. Lending Automation Processing System (LAPS):
- Incorporation of 7 new retail schemes (UCO top-up/Gold/ Securities/Two Wheeler/Shopper/Rent/Property Loan) in LAPS.
- Implementation of facility to pull Credit Information Report (CIR) from CIBIL & CRIF Highmark of the customer thereby getting to know the credit history of the prospective borrower.
- Integration of LAPS with Vidya Lakshmi portal (VLP) for receiving education loans from online applications applied by the student/borrower.
- Implementation of multiple channels, multiple ports, multiple Accounts for ADC channel for smoother transaction to cater to increasing volume of data through ATM, UPI, IMPS, NPCI, NFS, PFMS channels.
4. Government Business Module (GBM):
- All the branches are enabled to handle Public Provident Fund (PPF) scheme with full functionality including Intersol transactions.
- CBDT is enabled in 308 branches and CBIC is enabled in 26 branches.
- State taxes of West Bengal and Odisha are enabled in both offline and online mode and the data put together is submitted to RBI in the e-kuber file format.
- Pensioner can submit his/her Life and other certificates from any branch as GBM has the inter sol certificate submission feature with acknowledgement.
- Aadhaar number can be seeded in GBM for Pension and PPF accounts.
5. ATM:
- As on 31.03.2019, Bank has 2,358 ATMs (Onsite - 2,047 and Offsite - 311). Department has taken below mentioned initiatives in the area of ATMs during FY 2018-19 -
- EMV Enabled ATMs migration completed
- Closure of all loss making/ low hit ATM sites to reduce operational cost
- Relocation of ATMs from low hit sites to new potential sites where more hit/ revenue can be achieved.
- Replacement of all obsolete ATMs ,which undergo frequent breakdown with new ATM machines with latest configuration
- Modification in existing ATMs to get them updated with latest Anti fraud measures
- To simplify the process for collecting reconciliation report from zones and branches a portal (name as Unified Portal For ATM Reconciliation Report) developed for submission of monthly ATM recon/ cash status.
- Procurement and installation of 500 ATMs
6. Network:
- Internet access in controlled environment using Proxy solution in all branches and offices
- Successfully provided network through 4G LTE (Wireless) for Mobile ATM during Kumbh Mela & Saras Mela.
- For improving connectivity of VSAT branches, pool Bandwidth has been increased.
7. Call Centre:
- Function of call centre improved by increasing number of agents. Abandoned call percentage decreased to markable point.
8. Official Facebook/Twitter:
- Creation of Bankâs official Facebook and Twitter pages and YouTube Channel for promotion of digital products of bank to customers
9. SWIFT/SFMS:
- Implementation of STP (Straight Through Processing) between SWIFT and Finacle
- Implementation of STP between Finacle and SFMS for outward LC/BG messages.
10. BHIM Aadhaar Pay:
- Bank has successfully implemented Payable and Receivables for BHIM Aadhaar Transactions.
- On boarding of Bank on âAuth 2.0â Platform for usage of Registered Devices after certification with NPCI.
11. Bharat QR:
- Bank has successfully implemented Bharat QR v 1.1 and subsequently v 4.0.
17. CISO OFFICE:
- Bank has Cyber Crisis Management Plan in place to ensure rapid identification, information exchange, swift response and remedial actions to mitigate and recover from cyber threats impacting critical business functions.
- Bank has Cyber Security Policy and Information Security Policy in place to provide direction and support for cyber security in accordance with business requirements, relevant laws and regulations.
- Cyber risk awareness workshops and programmes have been conducted for employees for disseminating awareness at different user level.
- Table top exercises and mock drills have been carried out to assess the preparedness and efficiency of Branches and Offices in reporting cyber incidents.
- Cyber security best practices and safety tipsare shared through Facebook and Twitter to help customers be aware of the challenges of cyber risks and threats.
- Cyber Security Handbook has been published to spread awareness amongst employees with different types of cyber security breaches, their consequences and best practices.
- Employee awareness has also been enhanced through various kind of advisory viz Cyber Security Thought of the Week series, Cyber Security words covering alphabets from A to Z, Be Aware Be Secure Series. Information Security Awareness Month has also been celebrated in August 2018 where regularly pictorial messages were circulated to all employees.
18. CUSTOMER SERVICE:
Standardised Public Grievance Redressal System (SPGRS) is available for the public to lodge complaints online. 98.30% of the total complaints received during the financial year 2018-19 have been redressed. Under RTI, a total of 1125 applications were received, during FY 2018-19. There were 220 appeals made under RTI.
19. MIS & ADF Cell:
Bank is having Management Information System (MIS) vertical for internal reporting as well as reporting to regulatory and various statutory bodies etc.
MIS-ADF is integrated with all the discrete systems available in our Bank, viz. Finacle (Domestic and Overseas), GBM, LAPS, Domestic Treasury, E-Banking, Mobile Banking, M-Wallet etc. and performing as a one stop solution for providing information to the organization for the purpose of data analysis, strategic planning, evolving the business plans, its implementations and TOP Management level decision making.
Bank has developed reporting system under MIS ADF for submission of RBI returns/data viz. BSR, SIBC, NRDCSR etc. without any manual intervention through XBRL platform. Internal reports made available for business verticals - Credit, Risk Management, Recovery, Treasury, International, Overseas and Finance for control, monitoring and reporting day to day business parameters.
Digital channel performance reporting to Ministry of Electronics & Technology, Govt. of India on daily basis. Bank is reporting data related to consumer, commercial and SHG segments on daily/ monthly basis to different Credit Bureau like CIBIL, CRIF Highmark, Equifax.
Implementation of Centralised Information Management System (CIMS) project launched by RBI is under process. Under this project 117 RBI returns to be automated in a time bound manner.
20. CORPORATE COMMUNICATION:
Bank reinforces strong corporate reputations through its high degree of transparency and consistency in communication with stakeholders and also disseminates timely information with clarity, coherence and credibility including information through the websites of the Bank on real-time basis. Bank aims to inform, persuade and involve one and all in the activities and growth through sustained, consistent and relevant messages and using a judicious mix of both external and internal communication tools.
Bank has taken up multiple initiatives through various channels namely Print Media, Outdoor Media, Sponsorship of different events, CSR activities and dissemination of requisite information to stakeholders to build and maintain the brand-image of a world class financial institution.
a) Publicity Campaigns : Print Media:
Print Media is an effective medium to connect to masses. Corporate Communications Department has utilized it effectively by carrying out intensified and vigorous publicity campaigns throughout the FY 2018-19. Liability products and Asset products viz. UCO Home Loan, UCO Car Loan, Monsoon Offer & Festival offer for UCO Home & Car loan, PMMY, Stand Up India, psbloanin59minutes, KCC etc. were prominently promoted during the period.
With a thrust on routing the transactions through Alternate Delivery Channels (ADC) and making banking more personalized and customer-oriented, UCO Pay , E-Banking etc. were widely publicized through Print Media during the period.
Publication of financial results in leading national and local dailies was also carried through Print Media.
Outdoor Media:
The contribution of Outward Media towards establishing a strong brand value in the market cannot be underestimated. Outdoor media publicity is basically done through hoardings, kiosks, wall paintings, banners, sponsorship and beautification of gardens/ parks etc. Proposals related to sponsorship of events, health check-up camps, sporting events etc. are also done from time to time.
Rural Publicity:
Rural publicity is an integral part of publicity-campaign for UCO Bank having pan-India and strong rural presence. Bank has promoted and monitored various rural publicity campaigns through zonal offices located across the country. Wall-Paintings, announcements by Rickshaw, Loan fairs etc. were carried out for promoting awareness about products and services offered by the Bank.
b) Celebration of 76th Foundation Day:
The Bank completed 75th glorious years of service to the nation on 6th January, 2019. The occasion was celebrated with much enthusiasm and vigor across the country and overseas centers. Employees and executives of the Bank jubilantly participated in a Walkathon from Head Office II, Salt Lake to Central Staff College. Zonal Offices and branches across the country organised different activities viz. planting saplings, blood-donation camp, health check-up camp etc. A booklet on Cyber Security & Updated M Banking App were also launched by the MD & CEO on this auspicious occasion.
c) Public Relations:
- Press Meet :
Dissemination of information and coverage of important events and occasions viz. Financial Results, Awards & Recognition, Opening of new branch is prerequisite for strengthening the public relations. During the FY 2018-19, Corporate Communications Department organised Press Meets for declaration of quarterly and yearly financial results and other important events.
Department has also arranged for press-release of financial results, AGM & EGMs and other important events in leading national and local newspapers throughout the Financial Year.
Corporate Social Responsibility :
Bank believes that carrying out CSR activities help in tangible value creation. Moreover, CSR creates a positive image in the mind of customers and society at large. This creates a sense of belongingness and loyalty in existing and prospective customers.
d) UCO TOWER :
Bank is also publishing the in-house magazine âUCO Towerâ where all the constituents are encouraged to participate. UCO Tower also aims to create awareness of all happenings and activities of the Bank among all employees.
21. HUMAN RESOURCE:
Human resources Management Department Comprises of various Cells looking after different segments of the department. All these cells worked in tandem during FY 2018-19 to create a harmonious and productive work environment. Training and workshops were organised for improving/enhancing the skills and knowledge of the staff.
21.1. Manpower:
The total staff strength as on 31st March, 2019 stood at 23133, including employees serving overseas. The total staff strength comprises of 12088 Officers, 7456 Clerks, 1671 Subordinate Staff and 1918 House-keeping Staff. The percentage of Scheduled Castes (4759) & Scheduled tribes (1946) taken together in the total staff strength is 28.98%. Besides, there are 4261 OBC employees in service of the Bank as on 31st March, 2019. 1486 employees belong to the Minority Communities. The total workforce constitutes 25.02% women employees (5787) as of 31st March, 2019.
21.2. IR Negotiation Cell:
During the period, the Industrial Relations climate in the Bank remained cordial between the Management and the Unions/ Associations. Meetings and discussions were held with Unions/ Associations at periodic intervals through mutual co-operative attitude and respect during the financial year 2018-19.
21.3. Reservation Cell:
Bank has been implementing reservation policy of Government of India. Reservation and other relaxations and concessions extended to SC/ST/OBC / Differently Abled Persons and ExServicemen employees of our bank are strictly adhered. During internal promotion process for the FY 2018-19, as per GOI guidelines, Bank has imparted Pre-promotion Training to 928 employees (SC - 337, ST - 178, OBC - 391 and PH - 22) belonging to SC/ST/OBC and PWDA category. Our Bank, being the Nodal Agency in two state i.e. Shimla and Odisha, provides pre -recruitment training. In order to address the issues of SC/ST and OBC employees of the bank, regular periodical meetings are being held at Apex level as well as at Zonal office level (where reservation roster is maintained) with Welfare Association of such employees. The grievances of such category of employees are heard in such meetings and subsequently grievances are redressed as per Bankâs policy guidelines.
The reservation cell hosted a review meeting with Dr. Nand Kumar Sai, the Honâble Chairman (Status of Union Cabinet Minister), National Commission for Scheduled Tribes at Kolkata on 25.02.2019. Two officials from DFS along with other dignitaries also participated in the meeting.
21.4. Recruitment Cell:
Bank has recruited 465 Probationary Officers during the year 2018-19. These 465 Probationary Officers comprise of 77 SCs, 24 STs, 168 OBCs, 10 VIs, 2HIs and 6 OCs, out of which 131 are females. 541 clerks have also been recruited during the year 2018-19 of which 85 SCs, 60 STs, 112 OBCs, 4VIs, 1HIs, 5OCs and 57 EXSs out of which 156 are females.Bank also proposes to recruit 18 Probationary Officers and 46 Clerks under CRP VII reserve list for 2018-19 and 550 Probationary Officers and 600 clerks for 2019-20 under CRP VIII. Bank has initiated the process for appointment of Internal Ombudsman on contractual basis.
21.5. Training Cell:
Our Organization, being a part of one of the most dynamic industries, has to keep up with the constantly changing environment by continuously updating its workforce with various Training Programmes in the concerned Fields. Training programmes are held aligning the corporate vision, mission and fulfilling the expectations of the Top Management.
During the FY 2018-19, Several important modifications were carried out in Online Training Management Module in HRMS to stabilize the system and transforming it into a robust MIS platform. Policy on Capacity Building through Certified courses was formulated and being implemented with vigour to encourage our Staff members by payment of honorarium/incentives to them. In FY 2018-19, Total of 334 employees were paid honorarium/ incentive for passing Bank approved courses as per RBI guidelines on Capacity Building.
Bank has already initiated the process of implementing ELearning for its employees to ensure continuous development of Human Resources through effective learning process. In FY 2018-19, 197 Executives, 9058 Officers, 3085 Clerks and 402 SubStaffs were trained in Internal Training programmes conducted at our Central Staff College (CSC) situated at Kolkata and 7 Regional Training Centres situated at Durgapur, Bhubaneswar, Bhopal, Chennai, Ahmedabad, Jaipur and Chandigarh. Under Locational/Camp based Training programmes conducted at Zonal Level, 3857 employees were trained. This year also we continue to sponsor our Executives & Officers in reputed External Training Institutes like NIBM, ASCI, IIBM, etc.in which 565 employees were trained in External Training programmes which helped them in acquiring a global competitive edge.
FY 2018-19 witnessed the introduction of some important Training programmes like Cyber Security and Cyber Risk Awareness programmes for Senior Mgmt as well as Top Management, Risk Management programme for Risk Officers, Workshop for Officers/ Executives handling Iran Business, GST & MSME related Workshops. We are continuously evolving our Training Department with the adoption of latest inventions to develop sustainable solutions so as to fulfil the desired Corporate expectations.
22. AUDIT & INSPECTION:
After the introduction of Risk Based Supervision of Banks by RBI and adoption of Basel-III norms, the function of Inspection & Audit has undergone a sea change. Along with traditional functions of ensuring proper follow up of policies & procedures, strengthening the internal control, the Inspection & audit measures the risk the Bank faces in day to day operations. Hence the policies, process followed up by the Inspection & audit department have undergone significant changes.
The risk based regular inspection of branches and other service outlets have been adopted since 2014. The Bank has switched over to Risk based online Concurrent Audit and Management Audit Modules.
The department has achieved ZERO overdue reports in RBIA as on 31-03-2019.
The Offsite surveillance Cell in the Inspection Department has been strengthened. The system generated alerts are being generated in 21 parameters. The disposal of alerts by branches has reached 86%. Apart from alert generation this cell is also monitoring various internal accounts, suspicious transactions through back-end data mining.
During the year RBIA has been conducted in 2191 branches. 878 branches / offices are under Concurrent Audit.
23. VIGILANCE DEPARTMENT:
I. Preventive Vigilance initiative taken by the organisation
Following preventive vigilance initiatives have been taken by the Bank during the year 2018-19.
- Dormant accounts are made active by the respective BH/ ABH on receipt of application and KYC documents of customers and report on dormant accounts activation is generated on the next day for perusal of the Branch Head.
- The Balance sheets and other financial statements submitted by the borrower companies to the bank are compared with the one submitted with the Registrar of the Companies (ROC)
- Antecedents of the prospective/ existing borrowers checked with CFR portal of RBI before taking any credit decision.
- Periodic investigations are done in suspicious transaction/ activities at branch level by deploying Field Vigilance Officer.
- Programmes on vigilance awareness programs are undertaken at periodic interval at branches / offices to create awareness among the staff members/ customers/ general Public.
II. Systemic improvements undertaken by the organization
- Flash messages on preventive vigilance measures displayed as a ticker in CBS platform and on the intranet site of the bank to avert frauds.
- Use of Bio-metric access to office/ CBS system has been introduced to prevent possible fraud threat.
- Additional security features in CTS cheque is being incorporated to prevent unauthorised debit from customers account by cloned cheque.
- To further stem the possibility of fraud in the remittance through RTGS/ NEFT or payment of outstation cheques, the process of verification which used to take place at a later stage/ at the end of day, had been added with the process as a second tier confirmation only after which transaction will take place.
- Instructions were given to Strategic Planning Department for uploading the latest specimen card in Finacle System, masking the old specimen signature, so as to avoid any confusion about which card is the latest.
- Under our advice an offsite surveillance cell was constituted at Head Office, Inspection Department to look after the accounts of the staff for any suspicious transactions.
III. Initiative taken by the organization for strengthening Whistle Blower Mechanism
Whistle Blower portal has been introduced in bankâs internal HRMS portal (www.ucoonline.in) for staff members for uploading/ sharing of details of unethical/ malafide misconducts by any employee/ group of employees so that timely corrective action may be taken.
All the complaints made through Whistle Blower portal are accessible to the Chief Vigilance Officer of the Bank only and not to anyone else.
Confidentiality of the contents and identity of the complainant are not disclosed to anyone.
IV. Initiative taken by the organization for inculcating ethical behavior in the organization during the year 2018-19
Human Resource Department issues circulars/ notices from time to time advising all the staff members on ethical behavior within the officer premises.
V. Workshop/ training programmes undertaken in area of vigilance
The following workshops/ training programmes have been conducted in area of vigilance during the current year:
|
Name of the Program |
Institute |
Duration |
|
One day Workshop for field Vigilance Officer (FVOs) |
Central Staff College |
4th August 2018 |
|
Kolkata |
||
|
Workshop on Vigilance Awareness |
Regional Training Centre Bhubaneswar |
3rd November 2018 |
|
Positive Approach to Vigilance |
Central Staff College |
9th -10th February 2018 |
|
One Day work shop on Preventive |
||
|
Vigilance and Disciplinary matters |
Central Staff College |
7th Jan 2019 |
Apart from that Bank has introduced one session on preventive vigilance and case study in all the training programmes conducted at Central Staff College and other Regional Training Centres across the country.
In addition Bank has nominated officers/ executives to different training programmes on vigilance matters organised by CBI Academy, Ghaziabad, International Management School, Kolkata, NIBM Pune and in other organizations.
24. OFFICIAL LANGUAGE:
The Bank was proactive in implementation of the Official Language policy of the Union Government. The Bank also made suitable follow-up for implementation of the Annual Programme Hindi issued by Official Language Department, Ministry of Home Affairs, Government of India with regard to the use of official Language. During the period under review, the sub committees of the Parliamentary Committee on Official Language visited ourSri Nagar branch under our Deharadun Zone on 07.05.2018.
Town Official Language Implementation Committee, Kolkata was awarded First Prize amongst the TOLICs in Eastern Region by Official Language Department, Ministry of Home Affairs, Government of India for excellence in implementation of Official Language during the Year 2017-18. UCO Bank, Head Officeis the convener of this committee. Varanasi, Indore, Dharmshala, Hyderabad, Jodhpur, Pune, Begaluru, Raipur and Bhubaneswar Zonal Offices and Allahabad and Ghazipur branches under Varanasi Zone as well as Himatnagar branch, under Ahmedabad Zone bagged prizes for their commendable performance in the field of Official Languages implementation in their respective cities. Besides, Varanasi Zoneâs e-magazine Kashi Amrit, Chandigarh Zoneâs e-Magazine Sankalp, Indore Zoneâs e-magazine Malavanchal and New Delhi Zoneâs e-magazine UCO Indraprastha have been awarded by the respective TOLICs.
Under the aegis of Town Official Language Implementation Committee (Bank), Kolkata an Advanced Translation Training Programme was organised from 10.12.2018 to 14.12.2018 with support from Central Translation Bureau, Department of Official Language, Home Ministry, and Government of India. The programme was organised for the OL officers of the member Banks at our Central Staff College, Kolkata. A State-level Hindi seminar on âRole of Indian Languages in Digital Indiaâ was organized in Patna on 5.12.2018 by the Zonal Office, Patna.
An All India UCO Bank Inter-Bank Hindi Essay Competition was organized on âContribution of PSU Banks to the Economy of Indiaâ in February, 2019. The Official Language Conference was organized in Kolkata on March 15, 2019 by the Town Official Language Implementation Committee (Bank). It is worth mentioning that UCO bank was the convener of this committee.
Zonal Office, Bhagalpur has been made Convener of Town Official Language Implementation Committee, Bhagalpur by Department of Official Language, Ministry of Home Affairs, and Government of India.
25. COMPLIANCE DEPARTMENT:
Our Bank carries out the Compliance Functions mandated by the Reserve Bank of India with enormous dedication. An enviable level of customer service is being ensured at all levels of Bankâs Network. Emphasis is being laid on continuous perfection in reporting of KYC/AML issues, STRs (Suspicious Transactions Report), CTRs (Cash Transaction Reports), CBWTRs (Cross Border Wire Transfer Reports, CFT (Combating of Finance for Terrorism), etc., to the Regulators, Govt. Of India Authorities, SEBI, FIU-IND, under PMLA Act 2002, as Reporting Entity (RE).
Compliance & KYC/AML Policies are being revisited / reviewed periodically and approved by the Board of Directors to mitigate breaches in Compliance Functions if any. During FY 2018-19, Compliance Test Checking (CTC) was undertaken in 843 Branches and all Branches/Offices have been sensitized about the need for ensuring timely Compliance functions. Critical issues are being discussed at appropriate levels before being reported to the Regulatory/Statutory Authorities, thus enhancing the system efficacy.
Periodic interactions with Risk Management Department and Audit & Inspection Department, is being done on critical control and compliance functions as a part of effective Risk Management and development of robust Compliance Culture.
26. FUTURE PLAN OF BANK:
Department of Financial Service is monitoring performance of all public sector Banks through Enhanced Access and Service Excellence (EASE) . To improve performance in EASE Index among other banks is the main objective of our bank. Bank has Sankalp for the year 2019-20 to come out of PCA and start earning Profit. For this Bank has prepared different strategies focussing more on i) Recovery ii) Resources & iii) Retail, Agriculture and MSME(RAM) .Recovery of at least Rs.2000 crore per quarter through relentless efforts, and Bank mantra is recovery, Recovery and recovery. Zero tolerance on customer complaints through, strict adherence to compliance and control system and deepening products per customer through cross selling our banking products and also marketing of Alternate delivery channels. The future Plan of bank is reflected in SANKALP Rs.2020â which envisages turn around of the bank ensuring profitability this financial year.
Customer acquisition, Promoting Govt. Flagship programme through Financial Inclusion, Revamping Credit Monitoring System and restricting Slippages, through different measures are other important areas of Banks concern.
HR strategy through differentiated Banking, better employee relationship with better productivity and improved customer service will be the priority of the bank for 2019-20.
27. Board of Directors:
27.1. Corporate Governance:
Bank firmly believes in and has consistently practiced good corporate governance woven around its core values of transparency, professionalism and accountability. By constantly focusing on these aspects in its day-to-day operations, the Bank strives to enhance shareholdersâ value. The Bank being committed to the principles of good governance, its Board of Directors has formed various committees of the Board to monitor every aspect of Bankâs business. The systems and business processes of the Bank are continuously reviewed at various levels for identifying and strengthening areas of weaknesses, if any. The Directors of the Bank believe that good governance is the key to earn trust, loyalty and goodwill of clients, business associates, employees and investors and also to have respectable position in the society at large.
27.2. Changes in the Board of Directors:
- Mr Atul Kumar Goel is appointed as Managing Director & CEO on the Board of UCO Bank w.e.f November 02, 2018 for a period of three years.
- Mr Anand Madhukar was nominated as Government Nominee Director on the Board of UCO Bank w.e.f December 04, 2018 till further orders.
- Mr Amit Chatterjee was nominated as Part-time Non-official Director on the Board of the Bank w.e.f March 01, 2019 for a period of one year.
27.3.Meetings of the Board of Directors:
During the FY 2018-19, fourteen meetings of the Board of Directors were held. The number of meetings of various Committees of the Board held during the period is given below:
|
Sl.No |
Name of the Committee |
No. of meetings held |
|
1. |
Management Committee of the Board |
11 |
|
2. |
Audit Committee of the Board |
8 |
|
3. |
Risk Management Committee of Board |
4 |
|
4. |
Stake holdersâ Relationship Committee of the Board |
2 |
|
5. |
Share Transfer Committee of the Board |
2 |
|
6. |
||
|
Special Committee of the Board for Monitoring Large Value Frauds |
3 |
|
|
7. |
Customer Service Committee of the Board |
4 |
|
8. |
Committee on HR Related Issues of the Bank (HR Committee) |
1 |
|
9. |
Remuneration Committee of the Board |
1 |
|
10. |
IT Strategy Committee of the Board |
4 |
|
11. |
||
|
Board Level Committee for Monitoring Recovery in NPA Accounts |
6 |
|
|
12. |
||
|
Committee of the Board for Disposal of Appeal Cases |
6 |
|
|
13. |
||
|
Review Committee (Wilful Defaulters) |
5 |
|
|
14. |
||
|
Committee of Directors on ESPS |
1 |
|
|
15. |
||
|
Nomination Committee of the Board |
0 |
27.4. Statement of Directorsâ Responsibility:
The Board of Directors confirm that in the preparation of the annual accounts for the year ended March 31, 2019, the applicable accounting standards have been followed along with proper explanation relating to material departures, if any. The accounting policies framed in accordance with the guidelines of Reserve Bank of India, were consistently applied. Reasonable and prudent judgements and estimates were made so as to give a true and fair view of the state of affairs of the Bank at the end of the financial year and of the profit of the Bank for the year ended March 31, 2019. Proper and sufficient care was taken for the maintenance of adequate accounting records in accordance with the provisions of applicable laws governing banks in India; and the accounts have been prepared on an on-going basis. Internal financial controls have been laid down by the bank for ensuring orderly conduct of business.
28. Acknowledgements:
The Board welcomes the new Directors, Mr K Rajivan Nair, Dr. Asish Saha and looks forward to their valuable inputs towards the growth of the Bank. The Directors remain thankful to the Government of India, Reserve Bank of India and other regulatory authorities for their support and valuable guidance. The Board also thanks other financial institutions and correspondent banks for their co-operation.
The Board of Directors expresses its gratitude to the loyal customers for their trust and continuous patronage of the Bank. The Board also thanks the staff unions/associations and shareholders of the Bank for the support extended by them. The Directors place on record their deep appreciation of the dedication shown by each employee of the Bank.
By order of the Board of Directors
sd/-
(A. K Goel)
Place: Kolkata Managing Director &
Place: Kothlkata Chief Executive Officer
Date: 28th May, 2019
Mar 31, 2018
I PERFORMANCE OF THE BANK DURING 2017-18
1. UCOâs Delivery Channels
1.1. BRICK AND MORTAR NETWORK:
Bank has a geographically well - spread branch network in India and also has presence Abroad. As of 31.03.2018, Bank has 3 Circle Offices, 42 Zones and 3104 domestic branches and 4 overseas branches (two each in Singapore and Hong-Kong). Bankâs representative Office has been established in Tehran, Iran which is functional w.e.f. 25.03.2017.
The Global branch network over 5 years is as under:- (Global)
|
March, Rs.14 |
March Rs.15 |
March Rs.16 |
March Rs.17 |
/March Rs.18 |
|
Branch 2894 |
3020 |
3077 |
3104 |
3108 |
The population category-wise break-up of domestic branches as of 31.03.2017 and 31.03.2018 is given below.
1.2. The domestic branches include 5 Flagship Corporate branches, 7 Asset Management branches, 4 Service branches functioning independently and 1 Central Pension Processing Centre, 1 Integrated Treasury Branch. Further, 28 Retail Loan Hubs and 72 Currency Chests, 54 City Back offices are also functioning across the country, attached to the major city branches of various centres.
2. Business Profile
2.1 GLOBAL
Bankâs Global Deposits stood at Rs.1,81,849 crore and gross global advances at Rs.1,23,990 crore as on 31.3.2018. Total Business of Bank was Rs.3,05,838 crore as on 31.3.2018 compared to Rs.3,32,940 crore on 31.3.2017.
2.2 DOMESTIC
Domestic Deposits of bank were Rs.1,72,017 crore as on 31.3.2018 against Rs.1,85,102 crore as on 31.3.2017, Gross advances were Rs.1,08,746 crore compared to Rs.1,12,917crore during the above period. Total deposits of the bank declined due to the shedding of bulk deposits and advances declined because of some selective infrastructure sectors declared as stress.
Saving deposits have grown by 6.39% from Rs.51,456 crore to Rs.54,746 crore as on 31.3.2018 . Current Deposits stood at Rs.9330 crore compared to Rs.11323 as on 31.3.2017. Decline in Current deposits is due to decline in Iran deposits of the Bank. The share of CASA deposits to total domestic deposits has increased from 33.92% in 31.3.2017 to 37.25% in 31.3.2018.CASA deposits of the Bank have improved from Rs.62,779 crore to Rs.64,076 crore as of 31.3.2018.
2.3 Financial Performance:
During the FY 2017-18, Bank posted a Net loss of Rs.4436 crore compared to Rs.1851 crore for the previous year FY 2016-17. Net loss of the bank increased due to increase in provisioning in FY 2017-18. Operating profit of Bank stood at Rs.1334 crore. Total income declined by Rs.3299 crore while total expenses of the bank also declined by Rs.1707 crore in FY 17-18. During the year Bank made provision of Rs.5771 crore as compared to Rs.4777 crore in FY16-17. Cost of deposits declined to 5.37% in FY 17-18 from 5.83% in FY 16-17. Interest income of the Bank declined by Rs.2306 crore. Cost income ratio of the Bank stood at 68.57% in FY 17-18 as against 50.67% in FY 16-17.CD ratio has improved from 65.41% to 68.18% during the period.
3. TREASURY & INTERNATIONAL
Bank has been performing its Treasury & Investment Operations by keeping track of the macroeconomic scenario and market developments in accordance with the regulatory guidelines issued by Reserve Bank of India from time to time as also the Bankâs Domestic Investment Policy approved by the Board. In the changed scenario, where state of the art technology is providing the cutting-edge in Treasury & Risk Management, Bank has also embarked upon a globally deployable Integrated Treasury Management Solution for an effective and efficient way to optimize resource utilization and maximize returns on investment and trading. In order to mitigate risk and proper balance sheet management, the bank has gone for interest rate swap transactions.
The Domestic Investment of the Bank during the year 2017-18 declined by 3.64% from Rs.72628 crore as on 31.03.2017 to Rs.69987 crore as on 31.03.2018.The SLR Investment of the Bank declined by 12.43% from Rs.59921 crore as on 31.03.2017 to Rs.52471 crore as on 31.03.2018 mainly due to sale of Govt. securities to manage market risk. The Non SLR Investment (Domestic) grew by 37.85% from Rs.12707 crore as on 31.03.2017 to Rs.17516 crore as on 31.03.2018 mainly due to Recapitalization Bonds to the tune of Rs.5132 crore received from Govt. of India. During the year 2017-18, the bank has earned profit from investment operations amounting to Rs.6005.45 crore vis-a-vis Rs.7507.47 crore during the year 2016-17, thereby registering a decrease of 20% y-o-y basis due to adverse market movement on account of rise in yield.
During the year 2017-18, the Interest Income from domestic investment declined by 9.82% from Rs.5736.41 crore as on 31.03.2017 to Rs.5173.03 crore as on 31.03.2018 mainly due to decrease in the domestic Investment portfolio.
3.1 Export Finance:
With 66 âBâCategory Branches across India, UCO Bank is committed to actively cater to the needs of its Exporters. Total Merchant Turnover of the Bank during the Financial Year ended 31st March, 2018 stood at Rs.40,535 crore which is 18.61 % higher than the previous year. Bankâs Export credit outstanding during 31st March, 2018 is Rs.1,977.66 crore, registering a decline of 7.32% over 31st March, 2017. âUCO Bank,âhas been facilitating Bi-lateral Banking Trade transactions with Iran under âRupee Payment Mechanismâ since Feb, 2012 as mandated by Govt. of India/RBI, thereby facilitating Indian Exporters, exporting permissible goods and services to Iran.
4. SOCIAL BANKING
4.1 Priority Sector Advances:
The Bank has been showing significant performance in lending to Priority Sector over the years and has been effectively servicing the priority sector and agriculture sector with its vast network of rural and semi-urban branches.
As on 31.03.2018, the Priority Sector Advances of the Bank stood at Rs.54,698 crore constituting 41.45% of Adjusted Net Bank Credit (ANBC).
4.1.1 Agriculture Advances:
Total Agriculture Advances of the Bank stood at Rs.20,876 crore constituting 15.82% of ANBC. Direct Agriculture stood at Rs.13,019 crore constituting 9.87% of ANBC.
4.1.3 Advances to Weaker Sections:
Advances to Weaker Section stood at Rs.15396 crore as of 31st March, 2018 constituting 11.66% of ANBC.
4.1.4 Minority Community Advances:
Total Minority Community Advances of the Bank as on 31.03.2018 stood at Rs.8208 crore constituting 15% of Priority Sector Advances.
5. Unique Schemes:
The Bank has two unique schemes - (1) âUCO Uthaanâ for upliftment of BPL families of adopted villages & (2) âUCO Samagra Gramin Vikas Yojnaâ - Adoption of villages for all-round development.
5.1 UCO Uthaan Scheme: Social-cum-Financial upliftment scheme for BPL families.
Under the Scheme, villages having large number of BPL families are adopted by the Bank through its nearest branch to bring the BPL families out of the clutches of poverty and to bring about a holistic change in the villages. Under the scheme, a holistic development plan of the villages is drawn and followed up for covering areas like education, financing for rural housing, formation of SHG and micro-financing, development of handicrafts & rural artisans and extending finance under DRI Scheme.
The Bank has adopted 31 villages in 10 states i.e. Assam, Bihar, Gujarat, Maharashtra, Odisha, Punjab, Rajasthan, Tamil Nadu, Uttar Pradesh & West Bengal under UCO Uthaan Scheme.
Bank has conducted several financial literacy camps in these villages and has provided financial assistance particularly to BPL families to improve their livelihood, to generate more income so that they come above the poverty line.
By these efforts, 6568 BPL families, in these 31 adopted villages have been provided with credit assistance by Bank to uplift their livelihood in a better way during last 4 years. These BPL families are generating their income by adopting several activities like dairy farming, goat farming, betel leaf cultivation, vegetable growing, cycle repairing, shoe mending, fruit vending, grocery shop, tea stall, beedi making, trolley plying, mason jobs etc.
5. 2 UCO Samagra Gramin Vikas Yojna : For all-round development of villages
The Bank has adopted 10 villages in 6 states i.e. Gujarat, Himachal Pradesh, Odisha, Kerala, Uttar Pradesh & West Bengal for its all-round development under UCO Samagra Gramin Vikas Yojna.
In these villages, Bank has conducted financial literacy camps to educate the villagers, extended financial support to them and has also initiated developmental activities under Corporate Social Responsibility. Under financial assistance, Bank has given General Credit Cards (GCC) to small traders, Artisan Credit Cards (ACC) to artisans, Kisan Credit Cards (KCC) to farmers, loan to SHGs, loan for doing animal husbandry activities, loan to women & SC/ST beneficiaries. Many small traders have started their own business with the support of Bank loan. Through CSR activities, Bank has given Ceiling Fans, Water purifiers to different schools, Steel Almirahs, Books for school library, School uniform for school going children, installation of hand pumps for drinking water in the villages, installation of Solar street lights in the villages, construction of metallic road.
In two villages, out of above 10 villages, Bank has provided doorstep banking facilities to the villagers of these unbanked villages through Mobile Van. The Van visits these two villages on a predetermined day and time during the week and provides all types of banking facilities to the villagers at their doorstep. There has been an increase in the saving habits of the villagers due to this initiative. Through these vans, villagers are also being financially educated.
By these activities, there is an all-round development in the adopted villages and the villagers are very much benefitted.
6.REGIONAL RURAL BANKS (RRBs)
UCO Bank has sponsored two RRBs namely, Bihar Gramin Bank(BGB) head quartered at Begusarai, Bihar and Paschim Banga Gramin Bank (PBGB) head quartered at Howrah, West Bengal with four regional offices each. The RRBs have a total of 606 branches as on 31.03.2018.
6.1 Capital position of RRBs
The total capital composition of Paschim Banga Gramin Bank as on 31.03.2017 stood at Rs.154.51 crore (Govt. Of India), Rs.108.16 crore (UCO) & Rs.46.35 crore (West Bengal State Govt.). Similarly, for Bihar Gramin Bank, it stood at Rs.109.07 crore (Govt. Of India), Rs.76.35 crore (UCO) & Rs.32.73 crore (Bihar State Govt.)
The capital requirement of both the RRBs sponsored by the Bank, to maintain regulatory CRAR of 9% as on 31.3.2018 (unaudited) is estimated to be Rs.178 crore (approximately) . Out of which Bankâs share @35% comes to Rs.62.30 crore. Bank will take up the issue suitably at an appropriate time.
Performance of RRBs as under during 2017-18
6.1 Paschim Banga Gramin Bank:
As per unaudited financial results, total deposits of Paschim Banga Gramin Bank stood at Rs.4762.79 crore as on 31.03.2018, registering growth of 5.17 percent. Total advances reached a level of Rs.2419.01 crore with an annual growth of 8.74 percent as on 31.03.2018. CD ratio stood at 50.79% on 31.03.2018 as against 49.12% on 31.03.2017.
The gross NPAs stood at Rs.474.54 crore as on 31.03.18 vis-a-vis Rs.183.17 crore as on 31.03.2017. Gross NPA ratio stood at 19.62% as on 31.03.2018 as against 8.23% as of 31.03.2017. The net NPA ratio of the RRB stood at 15.63% as on 31.03.2018 as against 5.89% as of 31.03.2017.
Paschim Banga Gramin Bank has registered a net loss of Rs.31.99 crore as on 31.03.2018 as compared to net profit of Rs.14.49 crore as on 31.03.2017, thereby increasing accumulated loss from Rs.68.57 crore to Rs.100.56 crore as on 31.03.2018.
6.1.2 Bihar Gramin Bank:
As per unaudited financial results, total deposits of Bihar Gramin Bank stood at Rs.5367.07 crore as on 31.03.2018, registering growth of 13.13 percent. Total advances reached a level of Rs.3533.78 crore with an annual growth of 12.42 percent as of 31.03.2018. CD ratio stood at 65.84% on 31.03.2018 as against 66.26% on 31.03.2017.
The gross NPAs of the bank stood at Rs.909.99 crore as on 31.03.2018 vis-a-vis Rs.257.16 crore as on 31.03.2017. Gross NPA ratio increased from 8.18 percent as on 31.03.2017 to 25.75 percent as on 31.03.2018. The net NPA ratio has also increased from 6.64 percent as on 31.03.2017 to 20.92 percent as on 31.03.2018.
Bihar Gramin Bank has registered a net loss of Rs.70.26 crore as on 31.03.2018 as compared to net profit of Rs.4.22 crore as on 31.03.2017.
6.1.3 Inclusive Growth
In addition to various initiatives on financial inclusion, the Bank took part in the Pradhan Mantri Awas Yojna launched by Government of India to extend central assistance for the economically weaker section and the low income group for acquiring affordable houses. Bank has signed memorandum of understanding with National Housing Bank for implementation of this scheme. An assistance of Rs.1500 lac is being extended to the eligible borrowers and concession in interest rate @ 6.5% per annum is being provided upfront to reduce EMI and principal loan amount. Our Bank assisted 305 beneficiaries to the tune of Rs.1500.78 lac upto March, 2018.
6.1.4 Corporate Social Responsibility : Bank has taken several programmes/initiatives as a part of Corporate Social Responsibility. Few of these programmes/initiatives are as under:
a) Twenty Seven Rural Self Employment Training Institutes are set up by the Bank in seven states namely Himachal Pradesh, Odisha, Assam, Bihar, Punjab, West Bengal and Rajasthan to impart training and skill up gradation for rural youth with dedicated infrastructure. These institutes are set up by the Bank as a part of the initiative taken up by the Ministry of Rural Development to establish dedicated training Institutions for development of entrepreneurship skills in rural youth. All RSETIs trained 17900 candidates and 7067 beneficiaries have been provided Credit linkage of Rs.1.33 crore during the Financial Year 2017-18.
b) RSETI, Goalpara, Assam was adjudged best performing RSETI among North Eastern & Hilly states for the year 2017-18 and was awarded certificate of excellence on Aajeevika Evam Kushal Vikas Mela held on 5th May, 2018 in Ranchi Jharkhand.
c) Bank under UCO Utthan scheme has adopted 31 villages falling under 26 UCO Branches in 19 Zones of the Bank for the upliftment of BPL families with financial & social intervention.
d) Under the initiative of Reserve Bank of India, the bank has set up 10 CFLs (Centres for Financial Literacy) in 10 Blocks, 5 each in Bhadrak and Dhenkanal district of Odisha. The Bank and NABARD bear the cost of operationalisation of these CFLs in 40:60 ratios.
e) Bank has 34 Financial Literacy Centres across the country and has recruited 28 Financial Literacy Counsellors for conducting Financial Literacy Camps. During Financial Year 2017-18 the Financial Literacy Counsellors have conducted 4755 Financial Literacy Camps thereby spreading Financial Awareness to 259706 participants.
7. Micro, Small & Medium Enterprises (MSME)
Bank recognizes the important role of MSME sector in the economic development of the Country which is also supporting in generating employment opportunities in the Country. The advances under Micro & Small Enterprises (MSE) as on 31.03.2018 stood at Rs.20603 crore and under Micro, Small & Medium Enterprises (MSME), the advances are Rs.23982 crore as on 31.03.2018.
Award to Bank:
UCO Bank was awarded by ASSOCHAM âFifth ASSOCHAM SMEs Excellence Award - 2017â under the below mentioned category during Dec Rs.17:
UCO Bank, Micro Lending 7.1. New Initiative taken under MSME during FY 2017-18:
- Under different schemes of MSME, the Working Capital limits sanctioned to MSME units shall be assessed at minimum 25% of projected annual sales.
- The working capital limits sanctioned to MSME units that transact digitally with their customers shall be assessed at minimum 30% of projected annual sales. The same has been extended to all GST registered MSMEs units.
- Modification in UCO Commercial Vehicle Loan Scheme for financing taximen, for the purchase of New Taxis, under Mumbai Zone in MOU with M/s Mumbai taximen Unions.
- UCO Trader login day was celebrated on 21st to 23rd Jun 2017 to improve the credit under MSME and credit proposals amounting to Rs.28.74 Crore were sanctioned during the campaign period.
- Department organized a MUDRA Loan campaign from 01.12.2017 to 06.01.2018. With an overwhelming response from the field functionaries, the target of sanctioning of 75000 MUDRA Loan accounts was not only achieved but was surpassed also and the Bank sanctioned 95436 MUDRA loan accounts during the campaign period.
- Implemented the guidelines of RBI to provide relief for MSME Borrowers registered under Goods and Services Tax (GST).
- The Bank has tie-up with RXIL on TReDS platform to finance the loans against Trade receivables.
- Bank is in the process of tie-up with several FINTECH Companies to generate the leads under MSME, streamlining the appraisal and processes of MSMEs applications including monitoring and recovery
8.Financial Inclusion
8.1 Pradhan Mantri Jan Dhan Yojna (PMJDY)
Bank has been allotted with 16161 villages across the country to provide inclusive Banking Facility in unbanked / underbanked areas. These 16161 villages were re-organised in clusters of 3-4 villages comprising 1000-1500 households called Sub Service Area (SSA). Bank is implementing mission mode project PMJDY in these 3966 SSAs for ensuring universal Financial Inclusion and to bring the entire population under the ambit of structured Banking facility. By end of March 2018 Bank has opened more than 66 Lakh Accounts under PMJDY and distributed around 40 lakh RuPay Cards to the eligible account holders. Total deposits as of 31.03.2018 in these PMJDY Account is Rs.1661.68 crore.
Further, Bank has deployed 3500 Bank Mitrs in the SSAs allotted to it while remaining 466 SSAs with population more than 5000 are being covered through Branches itself. Every month more than 11 lakh Aadhaar Enabled financial transactions are being carried out through Micro ATMs used by BC Agents.
8.1.2 Aadhaar Seeding & Authentication
As notified by the government of India in PMLA Rule on 1 st June 2017 the Bank has initiated process of Aadhaar Seeding and authentication in operative CASA. By the end of March 2018 around 84% operative CASA have been seeded with Aadhaar number. Bank further introduced eKYC facility in Branches, BC Points and through its website for authentication of the Aadhaar. Aadhaar based Direct Benefit Transfer worth Rs.4779.46 crore was transferred to the accounts of beneficiaries. Aadhaar based DBT has helped in ensuring benefit transfer to the right person.
8.1.3 Social Security Schemes
Working on the governmentâs theme of providing social security to hitherto unbanked masses, Bank has implemented Insurance and Pension products namely, Pradhan Mantri Jeevan Jyoti Bima Yojna (PMJJBY), Pradhan Mantri Suraksha Bima Yojna (PMSBY), Atal Pension Yojna (APY) through its Branch and BC network. Under PMJBY scheme, there are 6.72 lakh subscribers insured whereas under PMSBY scheme more 12.51 lakh lives are insured. So far a total of2228 claims were settled under PMJBY and 523 under PMSBY. Further, total subscribers under Atal Pension Yojna crossed 1.17 lac till year end.
Revenue generated through Financial Inclusion Project
Gradually, efforts under Financial Inclusion are showing results and Bank has started gaining both tangible and intangible benefit out of these activities. While decongestion of branches, reduction of transaction cost and increase in CASA base are intangible benefits of FI Project; tangible benefits have come in the form of commission earned under various products. Bank has earned Rs.198.98 lac in PMJJBY, Rs.24.18 lac in PMSBY and Rs.74 lac in APY. Rs.3.05 crore commission is earned against DBT / DBTL during the year.
9. Retail Banking:
The performance highlights of the bank under retail banking during FY 2017-18 are furnished hereunder:
(Rs.in crore)
|
As on March 2017 |
As on March 2018 |
% Growth Y-o-Y |
|
|
Product |
|||
|
Home Loan |
13049 |
12698 |
-2.69% |
|
Car Loan |
1197 |
1356 |
13.29% |
|
Personal Loan |
424 |
464 |
9.43% |
|
Other Retail |
6426 |
7449 |
15.92% |
|
Total Retail |
21096 |
21967 |
4.13% |
- Total Retail loan portfolio on Y-o-Y growth is 4.13%.
- NPAs under Retail loan Portfolio have reduced by Rs.26.06 crore during year ended March2018 in comparison to March17. During this period NPA in all Retail Loan products, except UCO Property loan, has shown a downward trend.
- Modification under UCO Rent scheme has been carried out to make the Rate of Interest more competitive and in line with the market.
- Modifications have been made in UCO Car loan scheme, with regard to guarantee criteria and sanctioning authority powers, to make the scheme more attractive & viable.
- Bank has further extended UCO Grand Festive Offer till 31.03.2018 where 100% waiver of processing fee is available on Home Loans & Car Loans sanctioned during the period.
- UCO Home Loan Campaign was organised from 06.11.2017 to 08.12.2017 & Home loans amounting to Rs.471.08 crore were sanctioned during the campaign.
- UCO Car Loan Campaign was organised from 12.10.2017 to 21.10.2017 & Car loans amounting to Rs.38 crore were sanctioned during the campaign.
- To enhance the performance under RETAIL & MSME portfolio of the Bank & to bring essence of competitive environment among field functionaries, the bank has launched âRetail and MSME Loan Dhamakaâ Campaign from 01.02.2018 to 03.03.2018.
- Provision to capture vetting of Credit Rating of various loan products in finacle system, has been implemented.
- Bank has tied Up with M/s DYS Impex Private limited to finance Commercial Electric Vehicle E-Rickshaw and variants thereof, for transportation of goods and passengers to increase our MSME Loan Portfolio under Priority Sector.
- Bank has tied up with Coolwinks.com for discounted promotional offers on online purchase. Coolwinks, is offering Discount to our valued customers upon usage of UCO Bank Debit Card only.
- Bank has tied up with Ferns N Petals Private Limited for discounted promotional offer on online purchases. Ferns N Petals is offering a discount to our valued customers upon the usage of UCO Bank Debit Card and Net Banking facility.
- Bank has tied up with NPCI for different promotional offers on UCO Rupay Debit Cards. NPCI has given various offers to our valued customers upon usage of UCO Bank Rupay Debit Cards. A Circular has been issued in December 2017 to all the branches, incorporating the updated discounting offers on usage of UCO Rupay Debit Card.
- Bank has tied up with Foodpanda & Cleartrip, for discounted promotional offers on online purchases. Foodpanda & Cleartrip have offered discounts to our valued customers upon usage of UCO Bank Debit Card only.
10. Bancassurance:
- At present, our Bank is a Corporate Agent for Life Insurance Corporation of India (LICI) for selling Life Insurance policies under Corporate Agency tie-up arrangement. During the Financial Year, Bank canvassed Rs.26.35 crore of First Premium by selling new Life Insurance policies.
- In General Insurance Business our Bank is Corporate Agent for three General Insurance Companies. These Companies are: 1) M/s. Reliance General Insurance Company Ltd. 2) M/ s. Future Generali India Insurance Company Ltd. 3) M/s. Liberty Videocon General Insurance Company Ltd. During the Financial Year, Bank canvassed Rs.34.19 crores premium by selling insurance policies of above mention General Insurance Companies. These Insurance Companies provided a wide choice of Insurance products to our customers to meet their insurance needs at reasonable premium, which resulted in increase in premium collection and commission income for the Bank during the Financial Year.
- Under tie up agreement with M/s. Kotak Mahindra Life Insurance Company Ltd for Group Credit Life Insurance Bank covered life risk of about 8,700 Home, Education and Retail Loan borrowers during the year and secured the risk of loan default in case of any eventuality. Total premium collected by the Insurance Company during the Financial Year under Group Credit Life Insurance was Rs.11.64 crore.
- Bank increased the number of Specified Persons (SPs) substantially during the Financial Year for doing Bancassurance business. These Specified Persons are duly trained and certified by Insurance Regulatory & Development Authority of India (IRDAI) and are posted at different Branches across the Country for generating bancassurance business for the Bank.
11.LEGAL MATTERS
Bank, with utmost diligence ensures protection of its interest at every step through formulating policies, adapting the recent changes ushered in the legal fraternity. Bank issued guidelines to its branches on the Insolvency and Bankruptcy Code, 2016 highlighting, inter - alia, all the amendments made in the recently enacted Insolvency and Bankruptcy Code, 2016 in view of the various Gazette Notifications issued in this regard by the Ministry of Corporate Affairs & Insolvency and Bankruptcy Board of India (IBBI). Further, the recent developments in law (affecting the Banking Sector) steered in through the Maharashtra Stamps (Second Amendment) Act, 2017, the Companies Act, 2013, Debts Recovery Tribunal (Procedure) Rules, 1993 etc. have been intimated to the field functionaries through various Circulars issued from time to time.
Bank regularly monitors cases filed before various fora of law (viz., Honâble Supreme Court, Honâble High Courts, Debts Recovery Tribunal, Consumer Forum etc.) for speedy disposal of cases.
12. Recovery
The increasing trend of NPAs in the Banking Industry over last four years has become a concern for the Bank. Gross NPA level of our Bank increased from 17.12% in March, 2017 to 24.64% in March, 2018 and the quantum of GNPAs has increased from Rs.22540.95 crore to Rs.30549.92 crore respectively. The NNPA percentage increased to13.10% from 8.94% during the previous year.
During the FY 2017-18, the Bank has witnessed fresh slippages of Rs.15033.80 crore. Cash Recovery for Rs.1680.04 crore for the year ended 31st March, 2018. The total reduction in Cash Recovery & Up-gradation of NPA during FY 2017-18 is Rs.4290.12 crore. Maintaining Bankâs Asset quality and recovery of Bad debts remain the focus area for the Bank.
12.1. Recovery performance:
Bankâs recovery mechanism is also geared up at all levels of the organization to take advantage of modified compromise settlement scheme, SARFAESI Act, DRTs, Lok Adalats, NCLT, Country wide mega Recovery Camps, Road Shows, MAO campaigns, declaration of willful defaulters etc. were organized for a speedy recovery.
The details of GNPA, NNPA, Cash Recovery and upgradation for the last three years are as under:
(Rs.in crore)
|
Particulars |
31.03.2016 |
31.03.2017 |
31.03.2018 |
|
Cash Recovery |
1368.58 |
2038.66 |
1680.04 |
|
Up gradation |
1357.86 |
4300.45 |
2610.08 |
|
Total |
2726.44 |
6339.11 |
4290.12 |
|
Recovery in Loss Assets |
|||
|
(ML & Technical Write-off accounts) |
131.01 |
139.81 |
181.56 |
|
Gross NPA |
20907.73 |
22540.95 |
30549.92 |
|
Gross NPA % |
15.43% |
17.12% |
24.64% |
|
Net NPA |
11443.59 |
10703.39 |
14082.07 |
|
Net NPA % |
9.09% |
8.94% |
13.10% |
The total cash recovery plus upgradation for the year ended 31st March, 2018 is Rs.4290.12 crore as against Rs.6339.11 crore for the year ended 31 st March, 2017. The recovery in written-off accounts is Rs.181.56 crore for the year ended 31st March, 2018 compared to Rs.139.81 crore for the previous year.
Recovery in Loss assets has a direct impact upon the profitability and the Bank giving priority in monitoring / follow-up for recovery in such accounts. A separate vertical in the Bank is monitoring consistently for recovery in loss assets including technically as well as prudentially written-off accounts.
For portfolio reduction in GNPA, the Bank has also given special emphasis to Sale of Assets to ARCs for the year ended 31st March, 2018 for Rs.1764.29 crore as compared to Rs.1123.41 crore in previous year.
12.2. Some Recovery initiatives:
- Bank has liberal compromise Settlement scheme for NPA and ML accounts having O/s Balance up to Rs.10.00 Lac under which the branch heads are empowered to approve so that more NPA accounts are covered under the proposed non-discretionary/ non-discriminatory OTS Scheme.
- Bank has formed 216 clusters in all the zones comprising of 4-5 branches of highly concentrated NPAs in each cluster to maintain contact with the borrowers, organize recovery camps at regular intervals and scout OTS proposals. Emphasis is also given for OTS/Compromise settlement for eligible NPA accounts under all categories.
- Bank has empanelled 547 Enforcement & Recovery Agents and 84 Business Correspondents (BCs) for effective and time-bound enforcement of action under SARFEASI Act and early resolution of NPA accounts.
- The Bank is in the process of implementing the Legal Management System with the objective to facilitate different departments at Head Office & Zonal Offices for monitoring legal matters, creating database of all cases pending before different courts for effective monitoring and early resolution of accounts.
- MAO (Many Against One) approach is adopted against recalcitrant borrowers on a regular basis and being monitored at HO level.
- Countrywide Mega Recovery Camps are being organized Two days in every month.
- Mega auction is being conducted on quarterly interval with common auction dates on all India basis for commercial vehicle/Cars/Tractors etc. accounts.
- Mega e-auction of properties under SARFAESI Act being conducting on quarterly basis.
- Accounts eligible for NCLT are being explored vigorously. Bank closely remained in touch with other Lenders/ operational creditors, on regular basis, for discussion on way forward in respect of filing NCLT cases. Most of the accounts under NCLT are consortium / multiple banking accounts and are monitored for resolution on case to case basis in consultation with leader of consortium etc. Where the Bank is leader of the consortium, the Bank is meticulously following up each and every account for the purpose of resolution.
Where the Bank is a member of Consortium / JLF, Bank is taking up the critical issues with the top management of the respective Leader Banks on regular basis, specifically to convene the meeting of JLF at frequent intervals and ensuring Bankâs participation at suitable levels in such meetings.
- Eligible NPA accounts are identified for Sale to ARCs from time to time on a regular interval. Accounts sold to ARCs of 432 A/cs amounting to Rs.6104.75 crore since inception and 20 accounts amounting Rs.1764.29 crore during the year ended 31.03.2018.
- State- specific Schemes were formulated to widen the scope of NPA recovery as per requirement under Debt Waiver at the State Level through the SLBC of the respective states such as 1) Kerala Govt. Educational Loan assistance, 2) Debt Redemption Scheme - U.P., 3) Chatrapati Shivaji Maharaj Swetkari Sanman Yojna (CSMSSY-2017) of Maharashtra Govt. etc.
13. CREDIT MONITORING
Continued volatility and uncertainty in the economic situation have accentuated upsurge of bad loans in the banking industry. In the backdrop of prompt corrective action (PCA) advised by RBI and Reform Agenda for responsive and responsible PSBs as advised by Government of India, bank has geared up in tackling the situation by initiating measures as under.
- Bank has formed High Power Committee comprising top executives of Bank to review SMA-2 accounts with total credit exposure of Rs.5.00 crores and above fortnightly basis and directsfield functionaries for proper steps to resolve the stress,
- A separate Stressed Asset Vertical has been created at Head Office level for monitoring, follow up and resolution of all special Mentioned Accounts above Rs.20.00 crores under SMA-1 and SMA-2 categories to focus recovery effort through a dedicated specialised and motivated team for enhanced and timely recovery.
- On dispensation of earlier frameworks viz.CDR, SDR, S4A, change in management outside SDR Flexible Restructuring etc. for resolution of stress, policy for resolution of stressed assets under revised framework has been formulated and put in place.
- Workshop at Zonal Office Level has been conducted for Credit Auditors to enhance quality of the credit audit report vis-a-vis health of credit portfolio.
- Entrusting executive as Nodal Officer to oversee enforcing credit discipline by continuous monitoring to check opening current accounts by borrower companies with other Banks.
- Top 20 branches with higher delinquencies under each of 42 zones of Bank have been followed up continuously for resolution of stress
Apart from the above, some of the other initiatives taken by the bank to improve the functioning at the grass root level include:
- Bank is in process of capturing early warning signals (EWS) along with root cause analysis from system to identify the delinquent borrowers for identification of Red Flagged Accounts (RFA) for early detection of loan fraud and preventive measures thereafter,
- Monthly Credit Monitoring Report (MCMR) has been made system driven to ensure real -time monitoring by the monitoring authority.
- Based on feedback from the field functionaries and as per directions from RBI and top management of Bank ,20 (Twenty) no.of circulars issued for effective credit monitoring during 2017-18
14.RISK MANAGEMENT
- Introduced well-defined Contingency Funding Plan to manage a range of scenarios of severe liquidity stress. The funding plan contains the details of potential contingency sources, estimated amount which can be drawn from these sources, lead time needed and procedure detailing when and how each of the actions will be activated.
- To diversify the funding sources, we have defined an internal limit for sources of fund and tenor of funding; funding from different counterparties and funding from types of Instruments.
- Best practices at Industry level in Credit & Operational risk areas have been identified and their implementation in the Bank in a time- bound manner has been initiated.
- Development of Software package for Self-Assessment of controls in existing processes and new products before their introduction has been initiated.
- Root cause analysis of frauds is being carried out and necessary changes in the respective policies / system & procedures to curb the recurrences of fraud are being done.
- Policy for determination of spread for different types of products, borrower and tenor over the MCLR has been introduced.
- For effective determination of the risk appetite, policies on moratorium limits for different types of products / facilities and tenor wise exposure limits for different types of funded facilities have also been implemented.
- Be aware Be Secureâ - a new initiative in pictorial format has been designed and is being circulated amongst the Branches / Offices for increasing awareness relating to Cyber Security.
- To increase Information Security awareness among staff, a mandatory session has been introduced in all in-house training programs.
- The process has been initiated for making the Credit Audits system driven.
15. INFORMATION TECHNOLOGY, BPR and BTD
15. 1. New Projects/Applications launched in Current Financial Year
- eKYC - Both biometric based and OTP based eKYC facility is made available.
- GST (Goods and Services Tax) Collection Module:
As per directions from GOI/GSTN/RBI, GST Collection Module (both Online/Offline mode), GST determination module and GST Compliance module is implemented in the Bank.
- Document Management System (DMS): Bank has initiated implementation of the centralized Document Management branches.
- UCOPay (e-wallet) - On the auspicious occasion of Bankâs 75th Foundation Day, Bank launched UCOPAY mobile application with Instant Online Account Opening features and UCO Secure app to disable/enable digital banking services anytime, anywhere 24x7.
- BHIM Aadhaar Pay& Bharat QR: Bank is promoting digitalization by facilitating retail payments through Bhim Aadhaar Pay which will allow the customer to perform a purchase transaction using his/her Aadhaar Number and biometric (Finger print/IRIS) upon the device of the merchant. Bharat QR code provides customers with an easy scan and pay option irrespective of their card types for payments across merchant outlets. UCO bank is live on Bharat QR code (issuer mode) for BHIM UCO UPI and mobile banking app and Bharat QR code (Card) in acquirer mode through POS vendor
- Bharat Bill Payment System (BBPS): Bank is now LIVE in the BBPS platform developed by the National Payments Corporation of India (NPCI) for all kinds of bill payments.
- Digital Village Adoption: On the occasion of 75th Foundation Day, UCO Bank has proudly adopted 75 villages spread across 19 States under Digital Village Adoption Program - UCO Digi-Gram.
15. 2. Performance/Feature enhancement of existing projects
15.2.1. In-house software development:
The following feature enhancements are made in HRMS
- Pension Slip for Retired Employees has been made available in HRMS.
- Implementation of Discomfort Allowance module is there in HRMS. Claim, Verification & payment through monthly salary.
- Raise Issue module in HRMS package has been implemented to address different functional Issues faced by the employees.
- Online system for Risk Control Self-Assessment (RCSA) for Branches has been implemented.
- JSON Creation Toolis generated as per the requirement of Pune/Mumbai Zonal office. JSON file was generated from FINACLE data to RBI for providing subsidy to farmers.
15.2. 2. Grid Cheque Truncation System & NACH:
90 centres were brought under CTS under the three Grids (Northern Grid - 28 centres, Southern Grid - 31 centres & Western Grid -31 centres).
E-Mandate with e-Sign facility has been implemented in the month of October 2017. Till date, total 663 e-Mandates have been processed.
15.2. 3. Core Banking System: To improve the functionality and to cater the requirements raised due to regulatory authorities, Bank has implemented various modules such as cash Denomination Module, Centralized Locker Rent recovery module, Centralized Cash handling charge recovery module, capturing details of Form 60, implementation of system generated reference no. for 15G/
15 H submission; seven different important daily reports have been merged into a single Finacle menu âDAILYRPâ for effective monitoring at branch level, NPA module has been successfully implemented. Bank has also implemented Capturing SMA0 module.
Bank has introduced new functionalities in Finacle, the major ones are as below:
- Automatic reschedule in interest capitalization scheme on moratorium period.
- Senior Citizen saving scheme has been implemented.
15.2.4. Lending Automation Processing System (LAPS)
Six retail loan products such as Home Loan, Car Loan, Education Loan, Pension Loan, Property Loan and Cash Loan are processed through LAPS. Bank is in the process of bringing few more schemes under LAPS.
15.2.5. Government Business Module (GBM):
- Processing of pension record in case of revision orders for CPAO treasury has been enabled under the e-PPO project.
- Pensionerâs Certificates submission across the CBS branches (Inter-sol Certificates submission) is enabled.
15.2.6. ATM - As on 31.03.2018, Bank has 2,769 ATMs. From 01.04.2017 to 31.03.2018, total 155 ATMs have been installed, 107 ATMs have been closed and 46 ATMs have been shifted to feasible sites.
15.2.7. Debit Card - As on 31.03.2018,Bank has issued 1.04 crore of Debit/ATM cards as compared to 0.97crore cards as on 31.03.2017. Out of 1.03 crore of debit/ATM cards, total number of active cards is 0.78 crore, out of which 0.40 crore cards are with EMV chip. Bank is in the process of replacing all magstripe cards issued earlier.
Bank has recently implemented Green PIN initiatives enabling customers to set their Debit Card PIN at Bankâs ATM on their own and thus not requiring waiting for the physical PIN mailer.
15.2.8. Pre-paid Card - To encourage and divert customers more towards digital payment, Bank has introduced RuPay EMV chip based pre-paid card âsuvidha (e) Pre paidâ. This card is reloadable and card holder can spend upto the loaded amount at ATM, POS (point of sale) & e-commerce. As on 31.03.2018, number of pre-paid cards issued is 5,066 as against 608 as on 31.03.2017.
15.2.9. Internet Banking - Facility is available to customers for utility bills payment, for air ticket booking, online shopping, inter- bank and intra bank fund transfer etc. Bank is also providing services like balance enquiry, account statement, transaction related SMS alerts, payment of indirect taxes, Direct taxes and many other banking services. The total e-banking users as on 31.03.2018 are 8.14 lac as against 6.89 lac as on 31.03.2017 recording an increase of 18.14% Y-o-Y.
15.2.10. Mobile Banking - Bank has introduced Mobile Banking services during the year 2011-12, whereby customers can take advantage of conducting their banking transactions through mobile phones. With new version (version 1.1.2),m-banking application has various new features like Bharat QR (RuPay card), OTP auto-fetch, mobile recharge through contact book, mobile recharge receipt generation, password protected account statement etc. .The total M-banking users as on 31.03.2018 are 8.42 lac as against 5.34 lac as on 31.03.2017 recording an increase of 57.68% Y-o-Y.
15.2.11. Digital Passbook (m-Passbook) - Digital Passbook application (mpassbook) is also developed for enabling customers to view all their accounts & manage finances effectively. Besides Hindi and English both the applications are available in 10 different regional languages. As on 31.03.2018, total number of m-passbook users is 6.35 lac as against 2.70 lac as on 31.03.2017 recording an increase of 135.19% Y-o-Y.
15.2.12. BHIM UCO-UPI -. Bankâs UPI solution empowers multiple bank accounts to be linked into a single mobile application (of any participating bank), merging several banking features, seamless fund routing & merchant payments into one hood. It also caters to the âPeer to Peerâ collect request, which can be scheduled and paid as per requirement and convenience. The number of users (as on 31.03.2018) is 1.18 lac as against 0.47 lac as on 31.03.2017 recording an increase of 151.06% Y-o-Y.
15.2.13. BHIM-BHIM (Bharat Interface for Money - BHIM App) is a Mobile App developed by National Payments Corporation of India (NPCI), based on the Unified Payment Interface (UPI). BHIM allow users to send or receive money to other UPI payment addresses or scanning QR code or account number with IFSC code or MMID (Mobile Money Identifier) Code to users who do not have a UPI-based bank account. The number of merchant on-boarding (as on 31.03.2018) is 6,802.
15.2.14. USSD-The innovative payment service *99# works on Unstructured Supplementary Service Data (USSD) channel. This service allows mobile banking transactions using basic feature mobile phone,
15.2.15. Network:
- Bank has replaced Network and security device at data centres
- 980 no. of alternative MPLS links has been commissioned at branches and admin offices.410 no. of BSNL MPLS links has been upgraded
- Centralized antivirus has been installed in the Bank.
- Active Directory has been implemented in the Bank
- Internet access is controlled through Centralized proxy at HO. The same will be extended to branches in second phase.
15.2.16. SWIFT - SWIFT system is operational in the Bank since 26.06.1989.
15.3. New projects
- Near Disaster Recovery (NDR):. As per RBI guidelines, to reduce loss during exigencies, Bank is in the process of setting up Near DR Site to enable quick recovery and continuity of critical business operations.
15.4. Awards
During FY 2017-18, Bank has crossed several milestones in Information Technology area, some of which are -
- Finacle Innovation Award by M/s Infosys - Bank acquired 1st position under Project Management category for Gen-Script.
- IDRBT Innovative Mobile App 2017 - Bank was selected in the list of Top 10 Banks for UCO MIS Dashboard and became 2nd Runner Up for UCO HRMS Plus mobile app.
- IBA Payment Initiative Award- Bank was honoured with this award as Best Bank among Mid-sized Banks.
- Skotch Award for Technology Innovation Mobile Application-UCO MIS Dashboard was selected in Best 100 projects and Bank won Silver Award for UCO HRMS mobile application.
- IDRBT Banking innovative Technology Award 2018: Our Bank has been shortlisted in Top 10 Banks for UCO Secure app and NetAssist app (a Software application for Network Management).
16 Customer Service
Standardised Public Grievance Redressal System (SPGRS) is available for the public to lodge complaints online. 97.87% of the total complaints received during the financial year 2017-18 have been redressed . Under RTI, a total of 1207 applications were received, during FY2017-18 and 21 applications were yet to be replied as on 31.03.2018. There were 284 appeals made under RTI, and 16 appeals were yet to be disposed of as on 31.3.2018
17. CORPORATE COMMUNICATIONS
Bank reinforces strong corporate reputations through its high degree of transparency and consistency in communication with stakeholders and also disseminates timely information with clarity, coherence and credibility including information through the websites of the Bank on real- time basis. Bank aims to inform, persuade and involve all in the activities and growth through sustained, consistent and relevant messages and using a judicious mix of both external and internal communication tools. Apart from CSR activities, Publicity campaign of various Retail Assets and Liabilities, IT and MSME products through different media has been main thrust of the Bank in the Financial Year 2017-18. Bank takes pride in sponsoring Honorable Prime Ministerâs â Mann Ki Baatâ programme wherein the Bankâs various products namely UCO Pay, UCO Suvidha, Prepaid Cards, Government Insurance schemes and Atal Pension Yojana were broad casted regularly.
Keeping in view the Bankâs commitment towards Financial inclusion, Publicity in Rural areas had been given special attention during the FY 2017-18 like all previous years.
To commemorate our Bankâs âPlatinum Jubilee Foundation Dayâ on 06.01.2018, Celebrations were organized in all States. No stones were left unturned to make the Celebrations a grand success. Our honorable Finance Minister Shri Arun Jaitley consented and graced the celebrations at New Delhi as Chief Guest and launched our bankâs new Applicationsâ UCO Securities âand âUCO Pay â. Postal Stamps were released to mark the Platinum Jubilee Foundation Day by Chief Postmaster General and Finance Secretary, Government of India Mr Rajiv Kumar also graced the occasion as Guest of Honour. Bank also distributed 25000 silver coins to all its employees and bank Board approved a total Expenditure of Rs.3.25 Crores towards the same.
Aggressive Publicity was made befitting the occasion and Greetings of Our MD and CEO and Executive Directors were published/ broadcast/telecast in all media.
Bank is also publishing the in-house magazine âUCO Towerâ where all the constituents are encouraged to participate. UCO Tower also aims to create awareness of all happenings and activities of the Bank among all employees.
Bank will continue to utilize all available Publicity tools to the maximum extent to enhance its Brand Image and will establish itself as a World-Class Customer Centric Financial Institution.
Bank has been actively engaging itself in various CSR activities and social causes from time to time. Fulfilment of SocioEconomic obligation is part of the Bankâs Mission. In order to ameliorate and become inseparable part & parcel of Nationâs Socio-economic development process, the bank has contributed a substantial amount for CSR activities during the Financial Year 2017-18.
18. Human Resources
Human Resource Management Department comprises of various cells looking after different segments of the department. All these cells worked in tandem during FY2017-18 to create a harmonious and productive work environment. Training and workshops were organized for improving/ enhancing the skills and knowledge of the staff.
18.1 Manpower
The Total staff strength as on 31st March, 2018 stood at 23943 including employees serving overseas. The total staff comprises of 11968 Officers, 8149 Clerks,1830 subordinate Staff and 1996 House - keeping Staff. The percentage of Scheduled Castes (4942) & Scheduled tribes (1960) taken together in the total staff strength is 28.83%. Besides, there are 3984 OBC employees in Service of the Bank as on 31.03.2018. 1945 belong to the Minority Communities. Woman employees (5731) constitute 23.94%of the total Workforce as on 31st, March 2018.
18.2 IR Negotiation
During the period, the industrial Relations climate in the Bank remained by and large cordial between the Management and the Unions/ Associations. Meetings and discussions were held with Unions/ Associations at periodic intervals through mutual cooperative attitude and respect during the financial year 2017 - 18.
18.3 Reservation cell of Head Office, HRM Department
The Bank has been implementing reservation policy of Government of India. Reservation and other relaxation and concessions extended to SC/ST/OBC/Persons with Disability (PWD) and Ex-Servicemen employees is strictly adhered to in the Bank. As per GOI guidelines, Bank has imparted Prepromotion Training to 2052 candidates ( SC-805, ST-342, OBC-883 and PWD - 22) belonging to SC/ST/OBC and PWD category in this financial year 2017-18.
In order to address the issues of SC/ST and OBC employee of the Bank, regular periodical meetings are being called, held at Apex level as well as Zonal Office level (where reservation roster is maintained) with Welfare Association of such employees. The grievance of such category of employees is heard in such meetings and subsequently, grievances are redressal as per Bankâs policy guidelines.
During the period, review meetings on welfare of Safai Karamcharis has been held at three centres including HO with National Commission for Safai Karamcharis with satisfaction.
18.4 Recruitment Cell
Bank has recruited 430 Officers during the year 2017-18. These 430 officers comprise of 78 SC, 32 ST, 106 OBC and 110 women. 762 clerks have also been recruited during the year 2017-18 of which 119 are SC, 102 ST, 164 OBC and 219 females. Bank has reviewed and extended the service of International Ombudsman for further one year on contractual basis.
18.5 Training Cell
The Bank, being a part of one of the most dynamic industries, has to keep up with the constantly changing environment by continuously updating its workforce with various Training Programmes in the concerned Fields. In the FY 2017-18, Bank has introduced user- friendly Online Training Management Module in HRMS. All Zones, CSC Kolkata and all RTCs worked in tandem for successful execution of the Module. Now, meaningful information can be extracted from the Online Training Management Module which helps in facilitating proper decisionmaking process and reducing redundant errors. Bank has organized exclusive Training programmes for 1st Time Branch Heads as well as Branch Heads to develop a talent pool.
In the FY 2017-18, 55 Executives, 8598 Officers, 4042 Clerks and 610 Sub- staffs were trained in our Training Centres. A total of 4282 Officers, 961 Clerks and 97 Sub - staffs were trained at Zonal Level through Locational/ Camp Based Training Programmes. Bank has also sponsored Executives & Officers for training in reputed External Training Institutes like CAFRAL, BIRD, ASCI, etc. In FY 2017-18, total of 508 Executives & Officers attended the External training programmes which helped in acquiring a global competitive edge. The Bank is continuously evolving the Training Department with the adoption of latest inventions to develop a sustainable solution and so as to fulfill the desired corporate expectations.
19. Government Business
Government Business Cell handles Small Savings Deposit Schemes, Collection of Direct and Indirect Taxes, Central and State Government Pension, Atal Pension Yojana (APY), Sovereign Gold Bonds (SGB) and National Pension System (NPS).
During the FY 2017-18 all Branches have been authorised for the opening of account under Public Provident Fund (PPF), Sukanya Samriddhi Accounts (SSA) and Senior Citizen Saving Scheme (SCSS). Senior Citizen Saving Scheme was successfully implemented and operationalised through Finacle. There was an increase in the accounts opened under PPF - 10,639 (33%) and Sukanya Samriddhi Accounts Scheme - 12,420 (158%).
There was a substantial increase in the accounts opened under APY Scheme. It increased three fold from 21073 to 64730 in the year 2017-18.
Achieved 15% (Rs.3.60 Crore) Y-O-Y growth in Turnover commission on Government Business which includes commission in Sovereign Gold Bonds (SGB) and Atal Pension Yojana (APY).
Goods & Service Tax (GST) collection module was successfully implemented and operationalised in all Branches of the Bank.
20. AUDIT & INSPECTION
To ensure strict adherence to bankâs system & procedure, Risk Based Internal Audit has been conducted at 2210 branches and 1147 branches have been covered under concurrent audit. In pursuance of audit findings, prompt corrective action has been initiated for rectification of irregularities including recovery of revenue leakages.
The Offsite Concurrent Audit Surveillance (OCAS) has been strengthened and extended to all branches of the Bank. At present alerts are generated in 15 critical items.
A new IS Audit Policy in line with the observation made by RBS team of RBI has been approved by the Board of Directors of the Bank. The Concurrent Audit Module and Management Audit Module are being made risk- based and system driven.
A training programme has been conducted to update the knowledge and skill of newly inducted inspecting officers. More focus was given to make the mobile inspecting officers familiar with the e-THIC package of Risk Based Internal Audit.
21. VIGILANCE DEPARTMENT
During the year 2017-18, our Field vigilance Officers posted at various Zones/ Circles of the Bank have conducted preventive vigilance inspection at 422 branches to ensure that preventive vigilance measures are being taken up at the branches.
A number of preventive vigilance programmes were conducted at different centres of the Bank to increase awareness among staff on various aspects of misconducts and works associated with non - adherence to rules & regulation of the Bank. A two -day workshop for the Disciplinary Authorities was conducted at CSC - Kolkata during FebRs.2018 on the subject âPositive approach to Vigilanceâ.
This year Vigilance Awareness Week was celebrated across the country with the theme âMy Vision - Corruption Free Indiaâ. Various public meetings and seminars have been organized across the branches and administrative offices to make both staff and the public more vigilant and encourage them for a corruption- free India. Various competitions like essay, debates, art, story writing etc. have been organized amongst the staff members and school/ college children. A Magazineâ Eternal Vigilanceâ was also launched to increase awareness amongst staff members.
22. Compliance of Official Language Policy:
The bank took proactive approach to implement the Official Language Policy of the Union Government. The Bank also took appropriate follow-up-action to implement the directives as contained in the Annual Program with regard to the use of Official Language Hindi issued by Official Language Department, Ministry of Home Affairs, Government of India.
During this period third Sub - Committees of the Parliamentary Committee on Official Language visited Pathankot Branch under Jallandhar Zone on 14.06.2017, Falodi Branch under Jodhpur Zone on 19.09.2017 and Kavaratti Branch of Lakshwadeep under Ernakulam Zone on 14.10.2017
UCO Bank Head Office, the Convenor of Town Official Language Implementation Committee (Banks), Kolkata was awarded First Prize of TOLIC of Eastern Region by Official Language Department, Ministry of Home Affairs, Govt. of India for excellence in implementation of Official Language during the year 2016-17. Our Zonal Offices at Varanasi, Jorhat & Patna received First Prize from concerned TOLIC for their performance in their respective towns.
23. COMPLIANCE DEPARTMENT
Bank has emphasized on compliance issues mandated by RBI. Bank has been ensuring the level of customer service, functions and compliance of rules of deposits, advances, KYC/AML, other services, submission of statutory/regulatory reports, information and data asked by RBI, GOI, SEBI & IBA, etc. through a strict compliance system. Compliance policy was prepared incorporating necessary changes to prevent breaches in compliance and the same has been circulated throughout the bank after board approval. Test checking of compliance functions was undertaken in 842 branches. Deficiencies observed are being rectified. Branches/offices have been sensitized to compliance functions so as to avoid breaches. Critical issues were reported and discussed at appropriate level to enhance system efficacy. Interactions are also being held with Inspection & Risk management departments periodically to discuss compliance issues to arrive at measures to avoid recurrence thereof.
24. FUTURE PLAN OF BANK
The performance of the Banking sector, PSBs in particular, continued to be subdued in the current financial year. GNPA ratio of SCBs increased to more than 10%. Stressed Advances ratio rose. In this scenario, Bank future Plan and strategies are to reduce NPA and check further slippages. Bank has put all its efforts to recover the bad loans. Moreover, containment in expenses and increase in non-interest income will be also in focus for a turnaround.
To reduce the expenses, the Bank has dismantled Circles offices and 18 Service Branches.The biggest challenges before the bank are to maintain RWA and CRAR as per the requirement of Govt. guidelines/Regulatory Standard. So the focus has been given on low capital requirement advances such as LCBD business. Retail, MSME and Agriculture are the core area of the advances of the Bank.
Bank has already decided not to go for high-cost deposit so that low-cost deposit (CASA) will be more.Among the other strategy enhancing non- interest income, reduction in expenses and promoting e-product is also important.
25.BOARD OF DIRECTORS
25.1. Corporate Governance
Bank firmly believes in and has consistently practised good corporate governance woven around its core values of transparency, professionalism and accountability. By constantly focusing on these aspects of its day-to-day operations, the Bank strives to enhance shareholdersâvalue. The Bank is committed to the principles of good governance, its Board of Directors has formed various committees of the Board to monitor every aspect of Bankâs business. The systems and business processes of the Bank are continuously reviewed at various levels for identifying and strengthening areas of weaknesses, if any. The Directors of the Bank believe that good governance is the key to earn trust, loyalty and goodwill of clients, business associates, employees and investors and also to have a respectable position in the society at large.
25.2 Changes in the Board of Directors
- Mr K Rajivan Nair was elected as Director on the Board of UCO Bank under shareholder category w.e.f. 02.12.2017 for a period of three years.
- Dr Asish Saha was appointed as Part-time Non-official Director on the Board of UCO Bank w.e.f. 27.12.2017 for a period of three years.
25.3 Meetings of the Board of Directors
During the FY 2017-18, ten meetings of the Board of Directors were held. The number of meetings of various committees of the Board held during the period is given below:
|
Sl.No |
Name of the Committee |
No. of meetings held |
|
1. |
Management Committee of the Board |
9 |
|
2. |
Audit Committee of the Board |
6 |
|
3. |
Risk Management Committee of Board |
2 |
|
4. |
Stake holdersâRelationship Committee of the Board |
1 |
|
5. |
Share Transfer Committee of the Board |
2 |
|
6. |
Special Committee of the Board for Monitoring Large Value Frauds |
3 |
|
7. |
Customer Service Committee of the Board |
2 |
|
8. |
Committee on HR Related Issues of the Bank (HR Committee) |
Nil |
|
9. |
Nomination Committee of the Board |
1 |
|
10. |
Remuneration Committee of the Board |
1 |
|
11. |
Strategy Committee of the Board |
4 |
|
12. |
Board Level Committee for Monitoring Recovery in NPA Accounts |
3 |
|
13. |
Committee of the Board for Disposal of Appeal Cases |
2 |
|
14. |
Review Committee (Wilful Defaulters) |
3 |
|
|
|
|
25.4 Statement of Directorsâ Responsibilities
The Board of Directors confirm that in the preparation of the annual accounts for the year ended March 31, 2018, the applicable accounting standards have been followed along with proper explanation relating to material departures, if any. The accounting policies framed in accordance with the guidelines of Reserve Bank of India, were consistently applied. Reasonable and prudent judgements and estimates were made so as to give a true and fair view of the state of affairs of the Bank at the end of the financial year and of the profit of the Bank for the year ended March 31, 2018. Proper and sufficient care was taken for the maintenance of adequate accounting records in accordance with the provisions of applicable laws governing banks in India; and the accounts have been prepared on an on-going basis. Internal financial controls have been laid down by the bank for ensuring orderly conduct of business.
25.5 Acknowledgements
The Board welcomes the new Directors, Mr K Rajivan Nair, Dr. Asish Saha and looks forward to their valuable inputs towards the growth of the Bank. The Directors remain thankful to the Government of India, Reserve Bank of India and other regulatory authorities for their support and valuable guidance. The Board also thanks other financial institutions and correspondent banks for their co-operation.
The Board of Directors expresses its gratitude to the loyal customers for their trust and continuous patronage of the Bank. The Board also thanks the staff unions/associations and shareholders of the Bank for the support extended by them. The Directors place on record their deep appreciation of the dedication shown by each employee of the Bank.
By Order of the Board of Directors
sd/-
(R.K. Takkar)
Date: 29th May, 2018 Managing Director &
Place : Kolkata Chief Executive Officer
Mar 31, 2017
18.3. Reservation Cell of Head office, HRM Department
Bank has been implementing reservation policy of Governments of India. Reservation and other relaxations and concessions extended to SC/ST/OBC / Differently abled persons and Ex-servicemen employees of our bank are strictly adhered. As per GOI guidelines, Bank has imparted Pre-promotion Training to 146 candidates (SC-62, ST-13, OBC-68 and PH-3) belonging to SC/ST and OBC category. In order to address the issues of SC/ ST and OBC employees of the bank, regular periodical meetings are being held at Apex level as well as at Zonal office level (where reservation roster is maintained) with Welfare Association of such employees. The grievances of such category of employees is heard in such meetings and subsequently grievances are redressed as per Bank''s policy guidelines.
The reservation cell participated in two review meetings with Shri Raju Parmar, the Hon''ble member, National Commission for Scheduled Castes at Raipur and Ahmadabad on 04.05.2016 and 05.11.2016 respectively. The observations were noted and Action Taken report was submitted to the Commission in time. The cell also participated in two review meetings with the Parliamentary Committee on welfare of OBC at Gangtok on 27.06.2016 and Parliamentary Committee on welfare of SC and ST at Kolkata on 21.10.2016.
Department of Financial Services (DFS) of Ministry of Finance examined the implementation of Reservation Policy of our bank for the year 2014 and 2015 along with Reservation Rosters/ Registers pertaining to SC/ST/OBC, Complaint Register and Guard file of our bank on 11.01.2017 at New Delhi. They found the implementation of reservation Policy in our bank as satisfactory.
18.4.Recruitment Cell
Bank has recruited 735 Officers during the year 2016-17. These 735 Officers (Including Specialist Officers as IT, AFO, Security, Law etc) comprise of 126 SC''s, 42 ST''s, 175 OBC''s and 221 women. Bank has reviewed and extended the service of Chief Customer Service Officer (Internal Ombudsman) for further one year on contractual basis. 1181 clerks have also been recruited during the year 2016-17 of which 163 are SC''s, 93 are ST''s, 306 are OBC''s, 336 are females and 14 clerks are Persons with Disabilities individuals.
18.5. TRAINING Cell
Our organization, being a part of one of the most dynamic industries, has to keep up with the constantly changing environment by continuously updating its workforce with various Training programmes in the concerned field. Bank has reviewed Training Policy with latest updates and infused value addition. During Financial Year 2016-17, emphasis was given for imparting Training to all sections of employees and organizing Vocational and Camp Based Training Programmes which are organized at Zonal Office level. 9433 Officers, 3615 Clerks and 504 Sub-staffs were Trained under in-house training programmes in CSC, Kolkata and Seven (7) RTCs of the Bank. Besides 647 Officers, 929 sub staffs were trained Vocationally at ZO Level across the country. This year a special one day training for newly promoted/converted HKPs (Housekeeper cum peon) were arranged.
Apart from general topics viz Credit Appraisal, NPA Management, Priority Sector Lending, LAPS, Unicode, CBS, Security Aspects, Managerial Skills, Operation in Finacle, Leadership Development etc, special topics viz Soft skills, Documentation, ADC, KYC, HR Issues etc. have been introduced in Training System. This year, complying with direction of the Competent Authority, specially designed Soft Skill Training has been introduced for Officers up to Scale III and Award Staffs at CSC/RTCs.
Bank has nominated 165 Officers/Executives to outside Training Institutes like NIBM PUNE, CAB PUNE, IIBM Guwahati, BIRD Luck now, IIBF Mumbai, IDRBT Hyderabad and many other Institutes for External Training. Specially designed Training Programmes on Leadership Development were conducted for newly promoted DGMs, AGMs & Chief Managers with External Training Institutes viz. IICA Manesar, ASCI Hyderabad and NIBM etc. Overseas Training also given to three of our Top Executive. Special programmes on Forex Management, Public Procurement, IFRS also conducted to create talent pool on the respective subjects. A system has also been designed for better capacity utilization of Training colleges. Bank has given utmost importance for nomination of right persons in Training. The selection of new Faculty Members for Training Colleges is under process.
19.AUDIT & INSPECTION
To ensure strict adherence to bank''s system & procedure, Risk Based Internal Audit has been conducted at 2331 branches and 995 branches have been covered under concurrent audit. In pursuance of audit findings, prompt corrective action has been initiated for rectification of irregularities including recovery of revenue leakages. A new policy termed as "Policy on Audit Committee of the Board" has been formulated to re-define specific functioning of the Audit Committee of the Board.
Amendments have been made in the current Inspection policy, for optimum utilization of inspection man days and as a cost control measure, to utilize 40% of man days to conduct offsite inspection of the allotted branch from the Head Quarter and rest 60% of the man days to be utilized for onsite inspection by the field inspectors.
Two training programmes have been conducted to update the knowledge and skill of newly inducted inspecting officers. More focus was given to make the mobile inspecting officers familiar with e-THIC package of Risk Based Supervision."
20.VIGILANCE DEPARTMENT
During the year Field Vigilance Officers posted at various Circle Offices have conducted Surprise Inspection at 396 branches to ensure that staff working at these branches is vigilant in following the Bank''s guidelines in their daily routine.
In May 2016, Hindi version of Bank Vigilance Manual called "SatarkataAnudesh" has been launched.
A number of preventive vigilance programmes were conducted at different centreâs to increase the awareness of staff on various aspects of misconduct and pitfalls associated with non adherence to rules and regulations of the Bank. This included a two days workshop for Vigilance officers at CSC - Kolkata during January 2017 which covered Vigilance Officers of all Circle and Zonal Offices.
This year the theme of Vigilance Awareness Week (celebrated in October/ Nov. 2016) was "Public Participation in promoting integrity and eradicating corruption". Various public meetings and seminars have been organized across the branches and administrative offices to make both the staff and public more vigilant and encourage them to counter corruption. Various competitions like essay debates etc. have been organized amongst staff members and school/College children. A Magazine "Victory of Vigilance" was also launched to increase awareness among staff members."
21.COMPLIANCE OF OFFICIAL LANGUAGE POLICY:
The Bank took proactive steps to implement the Official Language Policy of Govt. of India and took actions to comply with the provisions of the Official Language Act and the Rules made there under on continual basis. The Bank has also taken appropriate follow-up action to implement the directives as contained in the Annual Program with regard to the use of Official Language Hindi issued by Government of India, Ministry of Home Affairs, Dept. of Official Language and has regularly channelized its efforts to achieve the various targets involved. Taking a decision at top level in the first Quarter of this financial year, the Official Language officers posted at Official Language Dept., Head Office were given the responsibility of overseeing and guidance with regards to Official Language related assignments of the Departments of Head Office. The result of this approach was encouraging and an increased awareness has been evident in Departments as far as doing official work in Hindi is concerned.
The Third sub-Committee of the Parliamentary Committee on Official Language, during its Kolkata visit, conducted inspection with regard to the state of Official Language implementation at the Head Office of our Bank. It appreciated the efforts of our Bank for enhancement of usage of Hindi. The Drafting and Evidence Sub-Committee of the Parliamentary Committee on Official Language also conducted discussion with the Chairman (UCO Bank) of Town Official Language Implementation Committee (Banks), Kolkata and a few other Member Banks on 27th May, 2016. Being the Convener Bank of the TOLIC (Banks), Kolkata, many Official Language and other competitions were organized under the aegis of UCO Bank, Head Office and assistance was also provided to other Banks in organizing Hindi Programs.
UCO BANK, Head Office, the Convener of Town Official Language Implementation Committee (Banks), Kolkata has been awarded Third Prize of Eastern Region for excellent implementation of Official Language during the year 2015-16. Our Zonal Offices at Jorhat and Varanasi received First Prize while Zonal Office at Patna received Second Prize, awarded by the respective TOLICs for successful implementation of Official Language.
During the period under reference, the Circle / Zonal Offices organized Hindi workshops in the whole of India in which a great number of officers/staff were trained for work in Official Language, which involved a session on utilization of UNICODE and Lingua Bank. Along with the issues of the quarterly house-magazine "Anugoonj" published by Head Office, many Hindi e-magazines were also published by circles/zones. Besides, the Official Language officers posted at Circle and Zonal Offices conducted Official Language inspections of 903 branches/offices.
A five-day "Banking Oriented Training Programme" was organized at Central Staff College, Kolkata for the Official Language officers of the Bank from 30th May to 03rd June, 2016 in which the officers were acquainted with the modes of operation of general banking. Also, an All India Official Language Officers Conference was organized on 06th and 07th March, 2017 in the same premises. Moreover, an Official Language Awareness Programme was organized on 22.12.2016 for the executives posted at Head Office. Zonal Office, Pune conducted a Official Language Conference on DIGITAL INDIA on 02.03.2017. The Department consistently worked for making the Bank''s website in bilingual, duly updated according to the changes made in it from time to time.
Different programmes were conducted during the Hindi Month in the offices and branches of the Bank including Head Office. The Hindi Diwas Celebration at Head Office involved dance and musical presentations.
22.COMPLIANCE DEPARTMENT
Bank has emphasized on compliance issues mandated by RBI. Bank has been ensuring the level of customer service, functions and compliance of rules of deposits, advances, KYC/AML, STR CTR under PMLA Act, other services, submission of statutory/ regulatory reports, information and data asked by RBI, GOI, SEBI & IBA, etc. through a strict compliance system. Compliance policy was prepared incorporating necessary changes to prevent breaches in compliance and the same has been circulated throughout the bank after board approval. Test checking of compliance functions was undertaken in844 branches. Deficiencies observed are being rectified on the spot. Branches/ offices have been sensitized about compliance functions so as to avoid breaches. Critical issues were reported and discussed at appropriate level to enhance system efficacy. Interactions are also being held with Inspection & Risk management departments periodically to discuss compliance issues to arrive at measures to avoid recurrence thereof.
23.LEGAL MATTERS
Law Department has ensured with utmost diligence effective legal assistance in preparation of legal opinions, legal vetting, research and correspondence as required by bank from time to time. Policies on ''Settlement of Claims in respect of deceased account holders and missing persons'' and ''Schedule of Advocate Fees'' have been reviewed in line with industry standards and circularized. Policy on ''Empanelment of Advocates'' has been reviewed to include nomination of Standing Counsel and engagement of legal retainer as well. Twenty five (25) Circulars have been issued highlighting, inter alia, the recent and important judgments of the Hon''ble Supreme Court and various other High Courts in relation to its applicability for the Bank, recent amendments in SARFAESI Act 2002, establishment of Special Courts under Section 435 of Companies Act, 2013, constitution of the National Company Law Tribunal (NCLT) and the National Company Law Appellate Tribunal (NCLAT), information on the Insolvency and Bankruptcy Code, 2016 (IBC,2016). The claim lodged against the Bank before various fora of law are defended by the Bank meticulously. Branches/Zonal Offices/Circle Offices have been sensitized using step by step guide to take action under SARFAESI Act, 2002, strategies and guidelines for effective monitoring and follow-up of DRT cases in order to augment Bank''s recovery. Cases filed against various defaulting borrowers/ guarantors are closely followed up by the Bank.
24. Government Business:
Successfully implemented and operationalised Pradhan Mantri Garib Kalyan Yojana (PMGKY) and Pradan Mantri Garib Kalyan Deposit Scheme(PMGKYDS) in our Bank. Under PMGKDS 185 Declarants have deposited 6.43 Crores through our Bank. There is an increase of 8930 (38%) accounts in PPF and 6334 (420%) accounts in SukanyaSamriddhi Scheme in the FY2016-17.
Successfully operational zed Sovereign Gold Bond Scheme (SGB) Tranche IV, V, VI and VII at all our Branches. Our Bank earned Non-interest income of Rs,55.11 lacs by mobilizing 179.43 Kgs worth of Sovereign Gold Bonds amounting to Rs,55.11 crores in FY 2016-17. Achieved 19% (3.91Crore) Y-O-Y growth in Turnover commission on Government Business along with commission on SGB and APY.
Very old outstanding Pension Paid entries substantially reduced through consistent follow-up with Branches/Zones. Achieved 86% Aadhaar seeding in Central Pensioner''s accounts. Provision to accept Digital Life Certificates (DLC) from Pensioners have been successfully implemented at all Central Pension paying Branches. 20638 DLCs received during the FY 2016-17.
Online Subscriptions facility through internet Banking for Sovereign Gold Bonds & APY has been implemented. Facility of downloading SGB certificate by Branches through UCO Online has been implemented. 1851 Branches have been registered with PFRDA for National Pension System (NPS) All Citizen model. Regular updating of Corporate website with respect to all Govt. of India Schemes. LTA (Life Time Arrears) &Aadhaar seeding field have been integrated in GBM module.
25.Awards to Bank:
- UCO Bank was awarded "MSME EXCELLENCE AWARDS-2016" by CIMSME under the below mentioned category during Jan''17:
- Best Bank for Promotional Scheme under Mid-Sized Bank-Winner.
- UCO BANK has been conferred with Special Award by National Payments Corporation of India (NPCI), recognizing excellent performance of the Bank in in select parameters of various NPCI products.
- UCO BANK has been awarded the runners-up under the category of "Best Payments Initiatives" amongst mid-sized banks for the year ended 2016, by Indian Banks'' Association (IBA).
- UCO Bank has been awarded Skoch Order of Merit Award -2016 for MIS Dashboard App.
- UCO Bank has been awarded Skoch Order of Merit Award - 2016 for HRMS Mobile App.
26.FUTURE PLAN:
FY 2016-17 had been a testing year for the banking industry. The bank, honed its resources, devised its strategies to achieve sustainable and progressive business for the future years. Bank will continue its emphasis on retail business, mobilization of CASA, and NPA recovery. Bank intends to improve its momentum in priority sector advances, including Agriculture and MSME advances. To increase Non-interest income, Bank is aiming to mobilize more non-fund based business and aggressive sale of banc assurance. Bank, would also take all measures to reduce other operating expenses.
Reserve Bank of India (RBI), through its letter dated 05.05.2017, communicated its decision to put Bank under Prompt Corrective Action (PCA) in view of high Net NPA ad negative ROA. Under the PCA framework, the bank will take steps to reduce NPA and improve profitability. As a part of action plan to improve profitability, Bank strives to reduce cost of deposits by increasing CASA. Customer service will be improved and standardized. Bank''s competitive CASA and technology products will be instrumental in the process of improving deposit mix and hence in increasing NIM (Net Interest Margin).
Bank, emphasizes on rigorous follow-up of overdue accounts to avoid slippage. Capturing and analysis of Early Warning Signals (EWS) and initiating corrective measures in a time bound manner, Judicious use of tools like NPA Tracker (android based app), DAILYRP (finale report) etc by the field functionaries, and formation of dedicated team for credit monitoring at each tier will improve asset quality. Bank will also use Many Against One (MAO) approach to use collective strength to speed up NPA recovery. Soft NPAs will be targeted for speedy resolution.
Bank will focus on these key areas, by involving all staff members to contribute with rigour, for the bright future of Bank.
27.BOARD OF DIRECTOR
27.1. Corporate Governance
Bank firmly believes in and has consistently practiced good corporate governance woven around its core values of transparency, professionalism and accountability. By constantly focusing on these aspects in its day-to-day operations, the Bank strives to enhance shareholders'' value. The Bank being committed to the principles of good governance, its Board of Directors has formed various committees of the Board to monitor every aspect of Bank''s business. The systems and business processes of the Bank are continuously reviewed at various levels for identifying and strengthening areas of weaknesses, if any. The Directors of the Bank believe that good governance is the key to earn trust, loyalty and goodwill of clients, business associates, employees and investors and also to have respectable position in the society at large.
27.2. Changes in the Board of Directors
- Mr Sunil Kumar Maheshwari served as Part-time Non-official Director in the Board from 21.06.2013 to 20.06.2016.
- Mr Salahuddin Ansari served as Part-time Non-official Director in the Board from 26.06.2013 to 25.06.2016
- Mr Anil Sharma has been nominated as Part-time Non-official Director under CA Director category w.e.f.30.07.2016.
27.3. Meetings of the Board of Directors
During the financial year 2016-17, Bank had 10 meetings of the Board of Directors. The number of meetings of various other committees of the Board held during the year 2016-17 is given below:
|
Sl.No |
Name of the Committee |
No. of meetings held |
|
1. |
Management Committee of the Board |
13 |
|
2. |
Audit Committee of the Board |
8 |
|
3. |
Risk Management Committee of Board |
4 |
|
4. |
Stake holders'' Relationship Committee of the Board |
2 |
|
5. |
Share Transfer Committee of the Board |
4 |
|
6. |
||
|
Special Committee for Monitoring Large Value Frauds |
5 |
|
|
7. |
Customer Service Committee of the Board |
4 |
|
8. |
Committee on HR Related Issues of the Bank |
Nil |
|
9. |
Nomination Committee of the Board |
2 |
|
10. |
Remuneration Committee of the Board |
Nil |
|
11. |
Strategy Committee of the Board |
5 |
|
12. |
||
|
Board Level Committee for Monitoring Recovery in NPA Accounts |
5 |
|
|
13. |
||
|
Committee of the Board for Disposal of Appeal Cases |
3 |
27.4. Statement of Directors'' Responsibilities
The Board of Directors confirm that in the preparation of the annual accounts for the year ended March 31, 2017, the applicable accounting standards have been followed along with proper explanation relating to material departures, if any. The accounting policies framed in accordance with the guidelines of Reserve Bank of India, were consistently applied. Reasonable and prudent judgments and estimates were made so as to give a true and fair view of the state of affairs of the Bank at the end of the financial year and of the profit of the Bank for the year ended March 31, 2017. Proper and sufficient care was taken for the maintenance of adequate accounting records in accordance with the provisions of applicable laws governing banks in India; and the accounts have been prepared on an on-going basis. International financial controls have been laid down by the bank for ensuring orderly conduct of business.
27.5. Acknowledgements
The Board of Directors places on record its deep appreciation of the contributions made by outgoing Directors namely, Mr. Sunil Kumar Maheshwari and Mr Salahuddin Ansari. The Board welcomes the new Director, Mr Anil Sharma and looks forward to his valuable inputs towards growth of the Bank. The Directors remain thankful to the Government of India, Reserve Bank of India and other regulatory authorities for their support and valuable guidance. The Board also thanks other financial institutions and correspondent banks for their co-operation.
The Board of Directors expresses its gratitude to the loyal customers for their trust and continuous patronage of the Bank. The Board also thanks the staff unions/associations and shareholders of the Bank for the support extended by them. The Directors place on record their deep appreciation of the dedication shown by each employee of the Bank.
(R.K.Takkar)
Date: 3°,h May, 2017 Managing Director &
Place : Kolkata Chief Executive Officer
Mar 31, 2015
Dear Members,
The Bank firmly believes in and has consistently practiced good
corporate governance which is woven around its core values of
transparency, professionalism and accountability. By constantly
focusing on these aspects in its day-to-day operations, the Bank
strives to enhance shareholders' value. The Bank being committed to the
principles of good governance, its Board of Directors has formed
various committees of the Board to monitor every aspect of Bank's
business. The systems and business processes of the Bank are
continuously reviewed at various levels for identifying and
strengthening areas of weaknesses, if any. The Directors of the Bank
believe that good governance is the key to earning trust, loyalty and
goodwill of clients, business associates, employees and investors and
respect from the society at large.
1.2. Changes in the Board of Directors
Mr. S. Chandrasekharan served as Executive Director in the Board from
01.10.2011 to 30.06.2014.
Mr. Charan Singh has been appointed as Executive Director with effect
from 10.03.2015.
Mr. B.P. Vijayendra served as RBI Nominee Director in the Board from
06.09.2012 to 22.02.2015.
Dr. Arvind Sharma has been appointed as RBI Nominee Director in the
Board w.e.f.23.02.2015.
Mr. Manoj Kumar Gupta served as CA Director in the Board from
02.08.2011 to 01.08.2014.
1.3. Meetings of the Board of Directors
During the financial year 2014-15, the Bank had 14 meetings of the
Board of Directors. The number of meetings of various other committees
of the Board held during the year 2014-15 is given below:
Name of the Committee No.of meetings held
Management Committee of the Board 14
Audit Committee of the Board 7
Risk Management Committee 4
Shareholders' Grievance Redressal Committee 2
Share Transfer Committee 4
Special Committee for Monitoring Large Value Frauds 4
Customer Service Committee 3
Committee on HR Related Issues of the Bank 5
Nomination Committee of the Board 3
Remuneration Committee of the Board 1
IT Strategy Committee of the Board 2
Board Level Committee for Monitoring Recovery
in NPA Accounts 4
Committee for Disposal of Appeal Cases 2
1.4. Statement of Directors' Responsibilities
The Directors confirm that in the preparation of the annual accounts
for the year ended March 31, 2015, the applicable accounting standards
have been followed along with proper explanation relating to material
departures, if any. The accounting policies framed in accordance with
the guidelines of Reserve Bank of India, were consistently applied.
Reasonable and prudent judgements and estimates were made so as to give
a true and fair view of the state of affairs of the Bank at the end of
the financial year and of the profit of the Bank for the year ended
March 31, 2015. Proper and sufficient care was taken for the
maintenance of adequate accounting records in accordance with the
provisions of applicable laws governing banks in India; and the
accounts have been prepared on an on-going basis. Internal financial
controls have been laid down by the bank for ensuring orderly conduct
of business.
1.5. Acknowledgements
The Board of Directors places on record its deep appreciation of the
contributions made to the deliberations of the Board by outgoing
Directors namely, Shri S. Chandrasekharan, Shri B. P. Vijayendra and
Shri Manoj Kumar Gupta. The Board would like to welcome the new
Directors and looks forward to their valuable inputs towards growth of
the Bank. The Directors remain thankful to the Government of India,
Reserve Bank of India and other regulatory authorities for their
support and valuable guidance. The Board also thanks other Financial
Institutions and correspondent banks for their sincere cooperation.
The Directors express their gratitude to the loyal customers for their
trust and continuous patronage of the Bank. The Board also thanks the
Staff Unions/Associations and shareholders of the Bank for the support
extended by them. The Directors place on record their deep appreciation
of the dedication shown by each employee of the Bank due to which the
Bank could achieve so many milestones.
For and on behalf of Board of Directors.
Date: May 21,2015 (Arun Kaul)
Kolkata Chairman & Managing Director
Mar 31, 2014
I. PERFORMANCE OF THE BANK 2013-14:
3. UCO''S DELIVERY CHANNELS:
BRICK and MORTAR Network/ USBs / Bank on Wheels :
The Bank has a geographically well spread branch network in India and
abroad. The Bank has 10 Circle Offices, 45 Zones and 2894 branches as
on 31.3.2014, which includes four overseas branches,( two each in
Singapore and Hong Kong). The Bank has two Extension Counters as of
March, 2014.
The Bank has strengthened its PAN-India network by opening 280 branches
during the year 2013-14, which takes the total number from 2610 in
March, 2013 to 2890 in March, 2014. During the year 2013-14, 33
branches in Tier-V and 70 in Tier-VI centres were opened.
March, ''10 March ''11 March ''12 March ''13 March ''14
Branch 2152 2206 2394 2614 2894
In the year 2013-14, 482 Ultra Small Branches (USBs) were opened by the
Bank to enhance Financial Inclusion in the unbanked regions. The total
number of Ultra Small Branches stood at 1245 as of 31st March, 2014.
The Bank has 24 "UCO Bank-on-Wheels" operating in 19 Zones covering 11
states.
To have a better focus and monitoring over the performance of branches,
the Bank had opened four more Zones namely, Agartala, Solan, Hooghly,
and Vijayawada in the year 2013-14. It takes the total number of Zones
of the Bank from 41 in March, 2013 to 45 in March, 2014.
The population category-wise break-up of branches is given be- low.
Specialized Branches :
As of March, 2014, the Bank had six Flagship Corporate branches, 15
Mid-Corporate branches, 23 Service branches, 8 Asset Management
branches and one Integrated Treasury Management Branch at Mumbai. The
Bank continues to have 27 Retail Loan Hubs and 12 SME Hubs as of March,
2014.
As at the end of 31st March, 2014, the Bank had 76 City Back Offices
covering 911 branches.
The Bank has a customer base of 25.84 million as at 31st March, 2014,
as against 22.36 million at the end of the previous fiscal registering
a growth of 16 percent.
Alternative Delivery Channels:
The Bank has joined National Financial Switch (NFS) which enables
customers to access more number of ATMs across the country. As on
31.3.2014, we had 2085 ATMs, out of which 1450 were onsite and 635 were
offsite. Bank has issued Debit Âcum  ATM card through VISA. There has
been good increase in the issuance of Debit Cards. We have issued
42,52,965 Debit cum ATM cards as on 31.3.2014 as compared to 27,43,543
cards during the financial year as on March 2013. The bank is issuing
Rupay cards under financial inclusion and ATM enabled Kisan Cards
linked to Kisan account. Internet banking facility is available to
customers for utility bill payments, air and rail ticket booking, on
line shopping, inter- bank and intra-bank fund transfer etc. Bank is
also providing services like balance enquiry, account statement,
transaction related SMS alerts, payment of Indirect taxes, Direct taxes
and many other banking services.
31 March 2013 31 March 2014
Y-o-Y increase
Onsite Offsite Total Onsite Offsite Total
CAPEX 587 225 812 712 224 936 15.27%
OPEX - 137 137 - 102 102 -
CPP 263 299 412 738 309 1047 154.12%
Total 886 475 1361 1450 635 2085 53.20%
Alternative Delivery Channel (ADC) --
Debit Card
as on March 2013 March 2014 Y-o-Y increase
Debit Card 27,43,543 41,52,965 51.3%
Type INTERNET BANKING USERS REGISTERED
RETAIL Users 155652 222438 42.9%
CORPORATE Users 36500 47790 30.9%
Total e-Banking Users 192152 270228 40.6%
Number of
registered users
for Mobile-Banking 26628 41803 57.0%
MOBILE BANKING :
The Bank has implemented Mobile Banking services during the year
2011-12, whereby customers can take advantage of conducting their
banking transactions through mobile phones. Customers through this
mobile banking facility are now performing banking activities like
balance enquiry, account statement, mobile recharge, intra & inter-bank
funds transfer with their mobile handset using SMS/GPRS modes of
connection.
4. BUSINESS PROFILE :
The global business of the Bank grew by 15.64 percent from Rs.305000
crore in 2012-13 to Rs.352697 crore in 2013-14, whereas Bank''s domestic
business rose by 16.34 percent from Rs.277591 crore in 2012-13 to Rs.322958
crore in 2013-14. Global Deposits of the bank grew by 15.05 percent from
Rs.173431 crore in 2012- 13 to Rs.199534 crore in 2013-14. Domestic
Deposits grew by 15.37 percent from Rs.158386 crore in 2012-13 to Rs.182730
crore in 2013-14 .
The Bank''s global advances rose to Rs.153163 crore in 2013-14 from
Rs.131569 crore in 2012-13 registering a growth of 16.41 percent.
Domestic advances of the bank registered a growth of 17.64 percent from
Rs.119205 crore in 2012-13 to Rs.140228 in 2013- 14.The global credit
deposits ratio stood at 76.76 in 2013-14 as compared to 75.86 of the
last year.
The overseas business of the Bank showed an increase of 8.50 percent
and stood at Rs.29738 crore as on 31st March 2014. The total deposits of
the overseas branches increased from Rs.15,045 crore as of March 2013 to
Rs.16803 crore as of March 2014, thereby showing an increase of 11.69
percent. The overseas advances increased by Rs.571 crore and reached at
Rs.12,935 crore as of 31st March, 2014 registering Y-O-Y growth of 4.62
percent.
CASA Deposits:
Domestic CASA deposits of the bank increased from Rs.55374 crore in
2012-13 to Rs.58884 crore registering a growth of 6.34 percent.
Percentage of domestic CASA to domestic deposits stood at 32.14. The
bank''s Saving deposits reached at Rs.33530 crore as of March 2014
compared to Rs.29680 crore, registering a growth of 12.97 percent and
Current deposits stood at Rs.25353 crore as at March 2014 .
Employee''s Productivity:
Business per employee of the Bank improved from Rs.13.43 crore as at
March 31, 2013 to Rs.15.28 crore as at 31st March 2014. Net Profit per
employee also improved from Rs.2.72 crore as of March 31, 2013 to Rs.6.55
crore as of March, 31, 2014.
Profitability:
The Bank earned an operating Profit of Rs.4940 crore during the year
2013-14 from Rs.3357 crore during the financial year 2012-13 and recorded
a growth of 47.16 percent. Net profit of the Bank rose by 144.34
percent from Rs.618 crore in 2012-13 to Rs.1511 crore in 2013-14.
Income and Expenditure:
The Bank''s total income rose by 10.43 percent from Rs.17704 crore in
2012-13 to Rs.19550 crore in 2013-14. The Bank''s interest income rose by
8.82 percent from Rs.16752 crore in 2012-13 to Rs.18230 crore in 2013-14.
The non- Interest income of the Bank improved by Rs.369 crore from Rs.952
crore in 2012-13 to Rs.1321 crore in 2013- 14. The interest expenditure
of the bank increased by 0.01 percent from Rs.12170 crore as at 31.3.2013
to Rs.12171 crore as at 31.3.2014. Operating expenditure of the bank
increased by 12.03 percent from Rs.2177 crore as on 31st March 2013 to
Rs.2439 crore as on 31st March 2014. Net Interest Income grew by 32.23
percent from Rs.4582 crore in 2012-13 to Rs.6059 crore in 2013-14.
5. CAPITAL :
Net worth of the Bank has increased to Rs.10284.89 crore during the
financial year ending 2013-14 from Rs.8869.17crore. During the year. Bank
has issued 262080580 Equity Share of Rs.10 each at price of Rs.77.19
amounting to Rs.262.08 crore to Government of India.
Capital Adequacy Ratio:
As per Basel III framework, the Bank''s Capital Adequacy Ratio of 12.68
percent which was higher than the regulatory requirement of 9 percent.
Details of Capital Adequacy (Basel-III) are shown as under.
(in Rs. crore)
Particular 31.03.2014
CRAR(%) Amount
Tier- I 8.71 10157.22
Tier- I 3.97 4627.31
Total Capital 12.68 14784.53
Risk Weight assets - 116636.78
6. TREASURY & INVESTMENT MANAGEMENT
The Bank has been performing its Treasury & Investment Operations
keeping track of the macroeconomic scenario and market developments in
accordance with the regulatory guidelines issued by the Reserve Bank of
India from time to time as also the Bank''s Corporate Investment Policy
approved by the Board of Directors. In the changed scenario, where
state of the art technology is providing cutting edge in Treasury &
Risk Management, the Bank has also embarked upon a globally deployable
Integrated Treasury Management Solution for an effective and efficient
way to optimize resource utilization and maximize returns on
investment/trading.
In order to mitigate risk and balance sheet management, the bank has
gone for interest rate swap transactions. During the year 2013-14, the
Bank toiled through the hostility of severe market volatility and
despite all odds the bank could significantly improve the yield of its
Investment portfolio.
The global investment (Gross) of the Bank during the year 2013- 14 grew
by 29.19 percent from Rs.52, 515 crore as on 31.03.2013 to Rs.67,845 crore
as on 31.03.2014. The domestic investment grew by 28.32 percent from
Rs.51, 335 crore as on 31.03.2013 to Rs.65,875 crore as on 31.03.2014. SLR
investment registered a growth of 22.30 percent during the year 2013-14
touching the level of Rs.53,017 crore compared to Rs.43,347 crore in March
2013. Non SLR investment (domestic) registered a growth of 60 percent to
reach a level of Rs.12, 782 crore from Rs.7,988 crore in 2012-13, mainly
on account of State Govt Bonds for DISCOMs. The yield on domestic
investment improved significantly from 7.59 percent as on 31.03.2013 to
7.79 percent as on 31.03.2014. Total investment income has registered an
average growth of 20.66 percent recording Rs.4,386 crore in 2013-14
compared to Rs.3635 crore in 2012-13.
EXPORT FINANCE:
With 74 ''B'' Category Branches, across India, UCO Bank is committed to
actively cater to the needs of its Exporters. Export Turnover of the
Bank during the Financial Year ended March, 2014 stood at Rs.33,226.97
crore which is 67.96 percent higher than previous year. Our Bank''s
Export credit outstanding during 31st March, 2014 is Rs.2,519.40 crore,
registering a growth of 3.78 percent over 31st March, 2013.
''UCO Bank,'' is the sole Bank to facilitate bi-lateral trade with Iran
by agreeing to receive payment in INR for Iranian oil exports to India.
Simultaneously, to boost exports under this Rupee Payment mechanism,
''UCO BANK'' negotiated 524 export bills amounting to Rs.6127 crore
cumulative from April, 2013 to March, 2014. The Export Credit
outstanding as of 31st March, 2014 on account of Iran Trade is Rs.450.45
crore.
In order to promote exports, during FY 2013-14, Bank organised around
125 exporter meet/ workshop/ seminar at important export- originating
centres in the country. Bank is also catering to ECB needs of the
customers.
7. SOCIAL BANKING:
Priority Sector Advances:
The Bank has been showing significant performance in lending to
Priority sector over the years and has been effectively servicing to
the priority sector and agriculture with its vast network of rural and
semi-urban branches.
i) Priority Sector Lending:
During the year 2013-14, the Priority Sector Advance of the Bank stood
at Rs.51965 crore constituting thereby 42.71 percent of Adjusted Net Bank
Credit(ANBC). The Y-o-Y growth of Priority Sector advances stood at
48.63 percent.
ii) Agriculture Advances:
Total Agriculture advances of the Bank stood at Rs.16642 crore
constituting 13.68 percent of ANBC. Direct Agriculture Credit stood at
Rs.11166 crore constituting 9.18 percent of ANBC and Indirect Agriculture
credit stood at Rs.5476 crore constituting 4.50 percent of ANBC. The
Y-o-Y growth of total Agriculture Advances stood at 31.82 percent and
under Direct Agriculture 11.82 percent.
iii) Micro, Small & Medium Enterprises(MSME)
Bank recognizes the important role of MSME in the economic development
of the country and helping in generating employment opportunities in
the country .The Bank has recorded a healthy growth in MSME Sector
during 2013-14. Under Micro & Small Enterprises (MSE) Bank advance
stood at Rs.26389 crore and under Micro, Small & Medium Enterprises
(MSME) Rs.30828 crore as of 31st March 2014. The Y-o-Y growth of MSE
Advances stood at 60.71 percent.
iv) Advances to Weaker Sections:
Advances to Weaker Section stood at Rs.14319 crore as of 31st March 2014,
with percentage to ANBC being 11.77. The Y-o-Y growth of advance to
Weaker Section stood at 38.66 percent.
v) Minority Community Advances:
Total Minority Community Advances of the Bank stood at Rs.7285 crore
constituting 14.02 percent of Priority Sector Advances.
The Bank has two unique schemes - (1) "UCO Uthaan"-for upliftment of
BPL families & (2) "UCO Samagra Gramin Vikas Yojna" Â Adoption of
villages for its all round development.
UCO Uthaan Scheme: Social-cum-Financial upliftment scheme for BPL
families
Under the Scheme, villages having a large number of BPL families are
adopted by the Bank through its nearest branch to bring the BPL
families out of the clutches of poverty and bring about a holistic
change in the villages. Under the scheme, a holistic development plan
of the villagers is drawn up and followed for covering areas like
education, financing for rural housing, formation of SHG and
micro-financing, development of handicrafts and rural artisans,
extending finance under DRI Scheme.
The Bank has adopted 12 villages in 4 states i.e. Odisha, Rajasthan,
Uttar Pradesh & West Bengal for upliftment of BPL families under UCO
Uthaan Scheme.
The Bank has conducted several financial literacy camps in these
villages and has provided financial assistance particularly to BPL
families to improve their livelihood, to generate more income so that
they come out from Poverty line.
By these efforts, out of 2968 BPL families in these 12 villages, 1821
families have come out above Poverty Line and are earning their
livelihood in a better way with the assistance provided by the Bank
during last 2 years. In 3 villages all 636 BPL families have come out
above Poverty Line. These uplifted families in 12 such villages are
generating their income by adopting several activities like Dairy
farming, Goatery, Betel leaf cultivation, vegetable growing, Cycle
repairing, Shoe mending, Fruit vending, Grocery shop, Tea stall, Bidi
making, Trolley plying, Mason Jobs etc. By these activities household
income has increased by 20- 25 percent.
UCO Samagra Gramin Vikas Yojna : For all-round development of village.
The Bank has adopted 10 villages in 6 states i.e. Gujarat, Himachal
Pradesh, Odisha, Kerala, Uttar Pradesh & West Bengal for its alround
development under UCO Samagra Gramin Vikas Yojna.
In these villages, the Bank has conducted financial literacy camps to
educate the villagers, extended financial support to them and has also
initiated developmental activities under Corporate Social
Responsibility. Under financial assistance, the Bank has given General
Credit Cards (GCC) to small traders, Artisan Credit Cards (ACC) to
artisans, Kisan Credit Cards (KCC) to farmers, loan to SHGs, loan for
doing animal husbandry activities, loan to women & SC/ST beneficiaries.
With the help of Bank loan many small traders have started their own
business. Under CSR activities in these villages, the Bank has given
Ceiling Fans, Water purifiers to different schools, Steel almirah,
Books for school library, School uniform to school going children,
installation of hand pumps for drinking water in the villages,
installation of Solar street lights in the villages, construction of
metallic road.
In 2 villages, out of above 10 villages, the Bank has provided doorstep
banking facilities to the villagers of these unbanked villages through
Mobile Van. The Van visits these 2 villages on a predetermined day and
time during the week and provides all types of banking facilities to
the villagers at their doorstep. There has been increase in the saving
habits of the villagers due to this initiative. Through these vans,
villagers are also being financially educated.
By these activities, there is an all round development in the adopted
villages and the villagers are very much benefited.
Awards to Bank
- Ministry of MSME, Govt. of India awarded National Award to UCO Bank
for implementation of PMEGP scheme in the North-East Zone for the year
2012-13.
- UCO Bank bagged "MSME BANKING EXCELLENCE AWARDS-2013 from CIMSME
under following categories.
- Jury Award for New Initiative
- Best Branding Award
- UCO Bank received SKOCH RENAISSANCE AWARD 2013
for Development.
Ministry of Rural Development, Govt. of India awarded UCO Bank as 3rd
Best Bank for nurturing the RSETI movement in the country for the year
2012-13.
UCO Bank received Global Sustainability Award from World CSR Congress
under the category "Outstanding Social Impact".
8. FINANCIAL INCLUSION:
Financial inclusion plays a critically important role in poverty
reduction, reducing income disparities and enhancing economic growth.
If broadly defined, refers to universal access to a wide range of
financial services at a reasonable cost. These include not only banking
products but also other financial services such as insurance and equity
products. The essence of financial inclusion is to ensure delivery of
financial services which include bank accounts for savings and
transactional purposes, low cost credit for productive, personal and
other purposes, financial advisory services, insurance facilities etc.
Under the financial inclusion plan, bank has followed three models: i)
BC Model ii) 24 Mobile vans with CBS connectivity iii) Brick and Motor
branches opened in the unbanked villages. Bank has also introduced
Kiosk Banking Model and it was launched on the foundation day of the
bank. Kiosk banking model was developed with an intention to make
financial inclusion more of a business promotive than obligatory
through individual BC, individual grocery / medical / fair price shop
owners / PCO operators and to engage CSC e- governance.
Under the financial inclusion bank has covered 5528 unbanked villages
during the year and cumulative figure reached at 9635 villages with
banking facility to the people. During the year 2013- 14, Bank has
opened 14.60 lakhs of Basic Saving Bank deposits accounts and
cumulatively touched at 40.23 lakhs as on 31st March 2014. The Bank has
established 482 USBs during the year and total reached at 1245 as on
March 2014. Bank is the pioneer in implementation of Mobile van banking
for providing banking facility in the unbanked villages. It has
deployed 24 Mobile Vans with Core Banking connectivity for online
banking. Our Mobile vans cover 132 unbanked villages with population of
2000 and above and nearby small villages with population of less than
2000.
Direct Benefit transfer (DBT) and Direct Transfer for LPG (DBTL) :
The Bank has taken a number of steps for smooth roll out of Direct
benefit Transfer in the 117 districts out of 121 districts identified
for implementation of the schemes. Our branches in these districts have
opened accounts of 43,429 beneficiaries.
Direct Benefit transfer for LPG (DBTL) :
Our Bank has been assigned with lead bank responsibilities in 16
districts out of 293 districts under the DBTL scheme which the Bank has
implemented and monitoring the progress of implementation of the scheme
by opening the account of the LPG consumer and seeding their Aadhar
number in their accounts in all banks operating in these 16 districts.
As our Bank is a lead bank, hence the responsibilities of our District
Manager is to monitor the progress of all banks operating in the
district and ensure that Aadhar number has been seeded in 12.65 lakhs
of LPG consumers.
New initiatives for implementation of Financial Inclusion:
1. Financial Inclusion Gateway: Bank has Commissioned FI Gateway &
Central Biometric Authentication Server to introduce interoperability
of transactions through the BC Agents. This will create an avenue for
the Bank to give an opportunity to the customers to transact with BCs
of the Bank and BCs of other Banks.
2. Bank has developed Kiosk Banking solution named as UCO Samaveshan
Sarathi with its launching on 6th January, 2014 on Bank''s foundation
day as an alternative model to bring progress in Financial Inclusion in
the villages allotted to the Bank. It is a Web Based Kiosk Banking
Solution; a noble initiative of Bank; is a part of FI Gateway Project
to open new avenue of Secure and hassle free Banking Services for the
financially excluded group in the society, who are covered through our
Financial Inclusion Project.
9. RETAIL BANKING
The year 2013-14 being the year of Retail Business, the Bank''s focused
efforts resulted in good performance. In this direction, the Bank came
out with various competitive and innovative products in both asset and
liability side and also several modifications were done in existing
asset products.
Retail Liability Portfolio
Under Liability portfolio, the Bank had launched special term deposit
schemes to boost growth of term deposits of (Rs.5 crore) such as UCO
Dhan Laxmi Scheme, UCO Century Scheme, UCO Double Century Scheme, UCO
Monthly Income Scheme, UCO Triple One, which significantly added to our
deposit portfolio. Department re-launched UCO Sowbhagya Scheme, a
Recurring Deposit Scheme which was a great success. Bank also launched
a special saving scheme for paramilitary armed forces named UCO Veer
Shakti. These schemes were a huge success and contributed to the growth
of the Retail Portfolio of the bank.
Schematic Retail Lending
Under Asset portfolio, the Bank had launched new loan schemes such as
UCO CA scheme, UCO Top Up Home Loan Scheme, UCO Corporate Home Loan
Scheme. Also, the Bank modified existing retail asset products such as
UCO Home loan Scheme, UCO Pension Loan scheme, UCO Shopper loan, UCO
Property Loan in line with market demand.
The Bank introduced the concept of having business facilitator in the
branches to increase the retail business of the bank. UCO HOME loan
scheme registered a growth of 57 percent and UCO Car loan scheme 275
percent during 2013-14.
Actuals Growth
Parameters FY13
(in Crs) FY14
(In Crs) Absolute
(In Crs) Percentage (%)
UCO Home 5196 8176 2980 57
UCO Car 772 2896 2124 275
UCO Gold 1805 2384 579 32
UCO EDUCATION 1141 1262 121 11
10. BANCASSURANCE
In Bancassurance  Life, Bank is the Corporate Agent of Life Insurance
Corporation of India, the only Public Sector Life Insurance Company,
since August 2003.
During the Financial Year 2013-14, Bank mobilized 33358 Policies and
First Premium of Rs.62 crore registering a YOY growth of 21 percent.
In Group Credit Life Insurance, Bank has a group credit life insurance
cover for the educational loan borrowers since July 2009 in tie-up with
Kotak Mahindra Old Mutual Life Insurance Ltd. During the current
Financial Year, Bank introduced other two Group Credit Life Insurance
Cover Schemes for Home Loan and other Retail Loan Borrowers (UCO Cash,
UCO Two Wheeler, UCO Car, UCO Doctor and UCO Properties) in tie up with
the same Kotak Life Insurance.
In Banc assurance - Non-Life, Bank initially was the Corporate Agent of
National Insurance Company Ltd, from September 2003 to end of April
2009. Since 30th September 2009, Bank has entered into a Corporate
Agency tie-up with Reliance General Insurance Company Ltd. (RGICL) for
its Non-Life Insurance Business. During this Financial Year, Bank
mobilised 89503 Policies and Premium of Rs.35 crore registering a YOY
growth of 10 percent. Besides, there are other three insurance products
viz. (1) ''UCO Griha Raksha Policy'' to cover the House Properties/
Assets, (2) ''UCO Griha Raksha Plus'', a Home Loan Protector offering
cover to the Home Loan borrowers against default in repayment of loan
in the event of death/permanent total disability arising out of
accident and being diagnosed for contracting any of the listed critical
illness and (3) ''Reliance Healthy Family Policy'' a medi claim insurance
scheme in tie up with the same RGICL.
In Mutual Fund Business, Bank continues its distributorship tie- up
relation with eight Mutual Fund Houses of good repute viz. Franklin
Templeton, ICICI Prudential, Kotak, Reliance, UTI, Birla Sun Life,
Baroda Pioneer and SBI Mutual Fund.
11. RECOVERY:
The increasing trend of NPAs in the Banking Industry over last
two-three years has become a great challenge to the banks. In our bank
also Gross NPA has increased substantially during the period and as on
31.03.2013 GNPA had increased to Rs.7130 crore from Rs.4086 crore as on
31.03.2012. The increase in volume of impaired assets over previous
years was due to fresh slippages during the period over its previous
years on account of various reasons which include legacy angle.
However, in the current FY 2013-14, the Gross NPA of the Bank has
reduced to Rs.6621 crore from Rs.7130 crore in the corresponding period of
previous year due to higher recovery/up-gradation during the period.
Main reason of high level of NPA is due to the global recession coupled
with economic slowdown in the country. Large number of big borrowal
accounts across the country have suffered slippage in the recent past
due to non fulfillment of the repayment obligations in time. Besides,
the bank''s earlier policy of concentration on bulk business was also
one of the reasons of higher slippages.
Due to various recovery actions against the defaulting borrowers
coupled with close monitoring of borrowable accounts, the quality of
assets have started improving in the FY2013-14. Moreover, the Bank has
changed its business model from its earlier Bulk business to Retail
business for last two-three years which has likely helped in arresting
higher slippages in the Bank. The result has also started forthcoming
and as on 31.03.2014, GNPA ratio of the Bank is reduced to 4.32 percent
from a high of 5.53 percent as on 31.12.2012 and 5.42 percent as on
31.03.2013. Consequently the NNPA ratio has also come down to 2.38
percent in the current FY 2013-14 from its 3.17 percent in the
corresponding period of the last year. Maintaining Bank''s asset quality
and recovery of dues are engaging the attention of top management and
are being monitored practically on daily basis.
Recovery performance :
The performance of recovery & up gradation in NPA accounts during the
FY 2013-14 has substantially improved over the previous years. Recovery
performance in the current FY is more than double the figure of
corresponding period of the last year. The robust performance of
recovery in the current year is due to the various recovery measures
being undertaken by the bank including assignment of impaired assets to
the SCs/RCs for early resolution of the cases. During the FY 2013-14,
bank assigned 133 NPA accounts to ARCs involving Rs.1869 crore as against
sale of Rs.2.96 crore in 1 account in the last FY 2012-13.
(In Rs. Crores)
Particulars 31.03.2012 31.03.2013 31.03.2014
Cash Recovery 658 828 2015
Up gradation 417 673 1032
Total 1075 1501 3047
Loss assets
(ML & tech w/off
a/as) 83 117 295
Recovery in loss assets has a direct bearing in the profitability and
Bank is attaching priority in monitoring/follow up in such accounts.
There has been substantial increase in recovery in loss assets in the
current FY over the previous years and Bank has created a separate
vertical in Recovery department for effective monitoring of loss assets
and its recovery.
Committee approach for follow up & monitoring of recovery in NPA
accounts.
For the purpose of strengthening the monitoring mechanism of recovery
performance, a committee approach is adopted by the Bank for different
purposes.
i) Board Level Committee has been constituted in our Bank where CMD,
EDs & Govt. nominee Director are members of the Committee for
monitoring of recovery Performance of NPA accounts. Progress of
recovery in all such NPA accounts is being monitored by this Committee
periodically and report is being submitted to the Board accordingly.
ii) CMD/EDs of the Bank are personally monitoring the large NPA
accounts particularly top 30 NPAs through personal meeting the
borrowers at different centers or through video conferencing at our
Circle Office level. This attempt has at least created a psychological
pressure on them.
iii) General Manager, Recovery is visiting Circles/Zones with high
concentration of NPAs to take first hand stock of situation and
conducting meetings with Branch Heads, Advocates, EAs/ RAs in order to
remove the bottlenecks of recovery.
iv) for effective monitoring of the NPAs, Asset Management Branches
(AMBs) are in operation in various centers of the country depending
upon the concentration of NPAs. The performance of AMBs is reviewed by
various controlling offices at regular intervals.
Other Recovery actions initiated by the Bank for effective recovery:
Various recovery measures have been adopted by the Bank for boosting up
recovery in NPA/ML accounts and to bring down the GNPA of the Bank. We
enumerate our action plans as under:
- ABC analysis of NPA portfolio is done for minimizing NPAs through
up-gradation and cash recovery, particularly for freshly generated NPAs
wherever immediate scope of recovery is there.
- In case of viable units, Bank extends its hand holding approach
towards them by way of restructuring/ reschedulement for its revival.
- Initiation of actions under SARFAESI Act immediately in case the unit
is not viable after the account becomes NPA in all eligible accounts
followed by taking possession and auction sale of the property(ies).
- Filing of Recovery suits in DRT/ Civil courts and identification &
declaring borrowers with outstanding balance of Rs.25.00 lacs and above
as ''Wilful Defaulters'' as per RBI guidelines.
- Decreed cases, where details of assets of borrowers and/or guarantors
are not available, are being handed over to the detective agency for
identification of their other unencumbered assets, if any.
- In deserving cases, Bank is filing application with DRTs/ Civil
Courts to direct the Borrowers / Guarantors for surrender of their
Passports with Passport authority especially in large NPA cases.
- Bank is filing caveat in SARFAESI cases of all big NPA accounts in
apprehension of filing SA by the borrowers/guarantors to stop bank''s
actions under SARFAESI act.
- Wherever needed, winding up petitions are filed for early/effective
recovery.
- For effective monitoring the performance of AMBs, review meetings
with Branch Heads of AMBs have been conducted at Head Office, Recovery
Department in addition to regular reviews through video conferencing.
- Country wide Lok Adalat being held periodically by the Bank to boost
up recovery in NPA accounts and during the FY 2013-14 recovery made
through this channel is Rs.15.39 crore against recovery of Rs.9 crore
during the last year. Bank also participated in the country wide
National Lok Adalat held on 23.11.2013 in which recovery of Rs.5.89 crore
was made.
12. CREDIT MONITORING
System based monitoring mechanism of advances has been put in place and
Special Watch Reports and Reports on Overdue are generated and posted
on UCO Online where from all concerned i.e., Branches, Zones and
Circles can have the access to the reports so that focused monitoring
for timely recovery of over dues can be effected. The frequency of
generating Annexure V has been increased and now this important
monitoring report is generated every week so as to know the overdue
position and has been found useful for launching swift drives of
recovery.
There are various monitoring tools used as obtaining of MSOD, QMR and
HMR in large borrowal accounts, stock statement and conducting stock
inspections for maintaining asset quality. Conducting Legal Audit,
Stock Audit and Credit Audit as per extant policy guidelines has been
ensured and especially Credit Audit reports are being used as one of
the important tools for early warning signals.
Credit Audits are being conducted by Specialist Officers (Chartered
Accountants) posted at Circle Offices /Zonal Offices and in Credit
Monitoring Department, HO.
A separate vertical for monitoring of retail loans has been formed in
the department with a view to prevent slippages under this segment.
Bank has switched over to 100 percent system driven identification of
NPAs as on 31st March 2014. More thrust has been given pertaining to
branch officers meeting the borrowers for effecting timely recovery.
Department has also geared up to provide information as per the revised
reporting system on large borrowal accounts with aggregate exposure of
Rs.10.00 crores and above to CRILC data base maintained by RBI in order
to bring about discipline among the borrowers.
13. RISK MANAGEMENT
During the financial year 2013-14, Bank has put in place a few new
initiatives in the area of risk management. A new score card model for
all Retail, MSE and agriculture loans up to one crore has been
developed in house and implementation on pilot basis is going on in one
Zone. Enhancement in our existing Rating Models for big advances has
been effected and the testing of the efficiency of the new models
vis-a-vis the existing models in predicting the probability of default
is in progress at user level. Market Risk Management Policy has been
comprehensively revised. Stress testing policy is put in place and is
implemented for liquidity position under various stress scenarios.
Dynamic Liquidity Statement is being prepared every month with time
horizon of three months and Back Testing of Dynamic Liquidity
projections has been implemented. Under operational Risk Management a
separate Loss Data Management Policy is put in place.
14. REGIONAL RURAL BANKS:
There are two RRBs sponsored by our Bank. Those two are Bihar Gramin
Bank having its Head Office at Begusarai (Bihar) and Paschim Banga
Gramin Bank having its Head Office at Howrah (West Bengal). All RRBs
taken together have a network of 519 branches as on 31st March 2014.
Recapitalisation of RRBs:
The total amount of Recapitalisation of Paschim Banga Gramin Bank as on
31.03.2014 stood at Rs.153.01 crore (Govt. of India), Rs.107.11 crore
(Sponsor Bank) & Rs.45.90 crore (Govt. of West Bengal). Similarly, in
Bihar Gramin Bank, it stood at Rs.107.07 crore (Govt. of India), Rs.74.95
crore (Sponsor Bank) & Rs.32.12 crore (Govt. of Bihar).
Performance of RRBs (Unaudited)
In respect of performance under key business parameters , total deposit
of RRBs sponsored by the Bank stood at Rs.6245 crore as on 31.03.2014,
registering growth of 14.09 percent. Total advance reached a level of
Rs.3437 crore with an annual growth of 48.17 percent as of 31.03.2014. CD
ratio of RRBs improved from 42.09 to 55.03 as on 31.03.2014.
The gross NPA of the RRBs stood at Rs.149 crore as on 31.03.2014
vis-Ã -vis Rs. 168 crore as on 31.03.2013. Gross NPA to Gross Advance
reduced from 7.29 percent as on 31.03.2013 to 4.34 percent as on
31.03.2014. The net NPA ratio of the RRBs (NNPA) as on 31.03.2014 stood
at 2.68 percent.
Bihar Gramin Bank has recorded a net profit of Rs.79 crore as on
31.03.2014 as compared to Rs.42.71 crore as on 31.03.2013 and Paschim
Banga Gramin Bank has also reported a net profit of Rs.19 crores thereby
reducing accumulated loss to Rs.98 crore as on 31.03.2014.
15. INFORMATION TECHNOLOGY
1. Biometric Authentication for CBS Application:
- Biometric authentication has been implemented in 1273 branches for
logging to Finacle application. As of 31.03.2014, 9052 users of the
above 1273 branches are allowed to log in to CBS application only after
Bio-metric authentication.
- By April 2014, it is expected that biometric authentication would be
completed in 1974 branches with 15000 users covering 96 percent of
Bank''s business.
2. CBS Migration of Overseas Branches:
- Two branches in Hong Kong were successfully migrated to CBS on 4th
Feb 2013.
- The Singapore Centre has been migrated to Finacle on 03/03/2014.
3. Unique Customer Identification Code (UCIC)
- Based on PAN number, Mobile number, Aadhar number & Passport number,
multiple CUST ids available in the database, has been identified for
merging.
Technological Upgradation During April, 2013 - March, 2014
1. Grid CTS:
Northern Grid
- NPCI has identified 21 centers from the states of Delhi, Uttar
Pradesh, Uttarakhand, Bihar, Jharkhand, Jammu & Kashmir, Punjab and
Rajasthan for implementation of CTS under Northern Grid. NPCI has
directed bank to complete the CTS implementation in a phased manner.
The Centers to be covered under the first phase are Jaipur, Amritsar,
Agra and Jalandhar. Implementation of CTS at Jaipur, Amritsar, Agra
and Jalandhar has been completed. The timeline set by NPCI for
completion of the project is extended to 30th April 2014.
Southern Grid:
MICR centres:
- Total 29 MICR centres have been migrated to CTS in Southern Grid
comprising of 23 MICR centers from Southern states and 6 centres
Kolkata, Chandigarh, Ludhiana, Bhubaneswar, Guwahati and Cuttack.
NON-MICR centres:
- 4 Non MICR centres in Tamil Nadu have been migrated to CTS Southern
Grid.
Western Grid:
- CBO Mumbai went live on CTS Western Grid on 26th August 2013 on pilot
basis. CBO Mumbai is processing all the inward instruments centrally.
21 CBO centres from the States of Maharashtra, Goa, Rajasthan, Madhya
Pradesh, Chhattisgarh, Gujrat are participating in CTS Western Grid.
2. SFMS:
- SFMS platform is available for all the branches for sending/receiving
LC.
3. Integrated Treasury Management Solution (ITMS) Project :
Money Market Modules has been made on-line w.e.f. 16.12.2013 with
Call/Term/Notice Money - Borrowing/ Lending, Mutual Fund
equity/Preference Shares and Venture Capital Fund.
Fixed Income Modules (except CSGL) has been made parallel w.e.f. 10th
March 2014 comprising of a) Treasury Bills b)Central Govt Securities c)
State Development Loans d) Bonds e) Debentures f) Security General
Ledger g) STP with NDS Systems.
Remaining Money Market Modules have also been made parallel w.e.f.
10.03.2014 to take care of -
1. Liquidity Adjustment Facility (LAF):a) Repo b) Term Repo c) Marginal
Standing Facility (MSF) d) Reverse Repo and
2. Collateralized Borrowing & Lending Obligation (CBLO).
4. In-House Software Development:
The Bank has developed following software in house-
- Electronic Voucher Checking System (EVCS) for supplementary checking
has been developed and made live since 21st September 2013.
- Conducted Computer Literacy Exam for promotion process.
- Branch Visit Report for Zonal Managers has been made live from 16th
August 2013.
- Legacy to CBS (14 digit) Account Number Conversion Utility (ANCU) for
NACH-ECS Credit Clearing files as per the advice of NPCI done. The
package has been live since last week of November, 2013.
- Online facility module for "submission of monthly progress report of
probationary officers (PO/MBA) is developed and is live.
- Online Annual Property Return (APR) module is developed and is live.
The following softwares are in development phase:
- Visitor Management module has been developed and tested. It is under
trial run.
- Iranian Vostro Management Solution is being developed to manage/
monitor Iranian Vostro Account Transactions. All the masters
(Applicant, Beneficiary, User etc) have been made live for data feeding
purpose. Module for Swift Message MT103 & MT202 has been developed &
tested. Developments of remaining LC related modules are in progress.
- A module has been developed for ''Inclusion of statements pertaining
to Law department in Bank''s MIS and deployed for testing by Law
department.
- Bank has developed and integrated a module in Finacle for issuance of
''Inflation Indexed National Saving Securities- Cumulative, 2013("The
Bonds") issued by RBI in consultation with Govt of India.
- A new menu ''DUPCUST'' is provided in Finacle for use by branches at
pre account opening stage to ascertain if customer is already having
account with Bank.
- The Bank has developed a module for submission of online application
form for the promotion of Sub-staffs, & Clerks.
- Loss Data Management System & Letter Tracking System is under
development by Bank''s in-house development team.
- Bank has developed a module to capture the details of Fixed assets
purchased prior to 01.04.2012.
16. OPERATION AND SERVICES :
During the year 2013-14, the Bank has come out with Business Continuity
Plan Policy. "UCO Sujhav" a webpage in UCO online provide opportunity
for the staff member to give their suggestions to improve the
procedures and processes. The same has been operationalized during 1st
quarter of 2013-14.
i) ATM Switch and Finacle Cash Tally - Development of In-house package.
An in-house package has been developed to check the differences, if
any, in the cash balance between ATM Switch and respective ATM cash A/c
in Finale (GL A/c). Automatic e-mails will be generated and sent to
the branches having difference in aforesaid heads for immediate
rectification with a copy of the said e-mail to Zone and Circle
concerned for monitoring.
ii) Use of ADMIN Cards - Development of In-house package. For ensuring
usage of ADMIN Cards properly by the branches while loading cash in
ATMs to match the cash position, Bank has developed a system (package )
to check whether the branches are using the ADMIN Cards while loading
cash.
iii) Monitoring of reconciliation between CBO and branches in their
jurisdiction - Software is developed in-house to compare the balances
of Service Branch and balances of branches. If balances are not brought
to zero on every Friday day-end/Saturday day beginning, automatic
e-mail is being sent to CBOs and respective branches with a copy to
Zonal/Circle Office concerned for immediate rectification.
Customer Grievances Redressal :
There is a well defined Grievances Redressal Mechanism in the Bank and
efforts are made to resolve the complaints within the time frame.
Customer complaints are resolved completely to the satisfaction of
customers. The standardized Public Grievance Redressal System, a
completely system based grievance management system, facilitating a
customer to lodge on-line complaint by visiting Bank''s Website was
successfully launched w.e.f 01.11.2013. The system has auto
acknowledgement facility. The same system provides the facility to
different administrative set-ups as well as branches to enter and
maintain the complaints received through other modes.
Government Business:
- Revised procedure has been implemented for receipt of challans and
payment of cheques issued by Geological Survey of India (GSI) and
Indian Bureau of Mines (IBM) and thereby claiming reimbursement from
link cell Sitabuildi Branch Nagpur (0296).
- Tamil Nadu State Government Tax collection scheme has been integrated
with our internet banking for all types of tax collection of Tamil Nadu
Government from Dec 2013 onwards.
National Pension System (NPS): The Swavlamban Scheme under National
Pension System was successfully customized under Government Business
Module of Finacle and made operational in the month of January, 2014
for use by the branches for enrolment of subscribers under the scheme.
Frequency of Branch Visits by Zonal Managers has improved . Bank has
reviewed the a) Compensation Policy b) Deposit Policy c) Unclaimed
Deposit Policy and d) Grievances Redressal Policy in order to
incorporate the RBI Guidelines.
17. CORPORATE COMMUNICATIONS :
Bank has taken up various initiatives through various channels namely
Print Media, Outdoor Media, Digital and sponsorship for publicity,
public relations, CSR activities and dissemination of requisite
information to customers and common public at large ultimately to build
and maintain a brand-image that is relevant, customer-oriented and
trustworthy.
a) Publicity Campaigns:
Print Media:
Print media is an effective medium to connect to masses, and Corporate
Communications has utilised it effectively by carrying out intensified
and vigorous publicity campaigns throughout the FY 2013-14. Liability
products, viz, UCO Double, UCO Triple One, UCO Double Century,
Dhanvarsha, Dhanlaxmi, UCO Tax-Saver, Sowbhagya, UCO Savings Account
were publicized through print media. Asset products, viz., UCO Home
Loan, CAR Loan, CA Loan and Festival Bonanza scheme for UCO Home and
Car loan were also promoted during the period.
With a thrust on routing the transactions through alternate channels
and making banking more personalized and customer- oriented, E-Banking,
M-banking, Online FDR facility were publicized through Print media
during the period.
Publication of financial results in leading national and local dailies
was also carried through Print Media.
Radio Jingles and Television Commercials:
Electronic media aided by technological development has widened its
reach to remotest corner of country. Campaigns through Television were
carried for promoting bank''s debit card facility. Radio jingles were
carried out during Foundation Day for spreading its message to its
customers and common public at large after completion of 71 glorious
years of its existence.
Rural Publicity:
Rural publicity is an integral part of publicity-campaign for Bank
having pan-India and strong rural presence and can not be overlooked.
Bank has promoted and monitored various rural publicity campaigns
through circle offices located across the country. Wall-Paintings,
announcements by Rickshaw, Loan- Fairs, etc were carried out for
promoting awareness about products and services offered by bank.
b) Celebration of 72nd Foundation Day:
On occasion of completion of 71 glorious years of its existence, bank
celebrated foundation day on 6th January 2014 with great zeal and
enthusiasm. Employees and executives of the Bank participated in the
Road Show from Founder''s Branch to General Administration Department,
Russel Street, Kolkata. During the celebration, Asset and Liability
products viz, UCO Home Loan, UCO Car Loan, MIS, Sowbhagya were
publicized through Banners and standees at venue and road-show. Circle
and Zonal offices across the country organised various events viz,
plant sapling, blood-donation and free health check-up camps on the
occasion. Super achievers under different categories were felicited at
Head Office and Circle Offices. Also, Customers having log-term
relationship with Bank were honoured by the Bank.
c) Public Relations:
l Press Meet:
Dissemination of information and coverage of important events and
occasions viz, Financial Results, Awards & Recognition, Opening of new
branch & ATMs is prerequisite for strengthening the public relations.
During the FY 2013-14, Corporate Communications department of the Bank,
organised press meets for declaration of quarterly and yearly financial
results and as required from time to time.
l Press Release:
Timely coverage of important events plays an integral role in creating
awareness about important events and achievements of Bank. Corporate
Communications department of the Bank arranged for press-release of
financial results, foundation day celebrations, annual business meet
and other important events in leading national and local newspapers
throughout the FY 2013-14.
d) Corporate Social Responsibility:
Bank believes that carrying out CSR activities helps in creating
tangible value-creation and ultimately contributing to brand- image.
Moreover, CSR creates a positive image in the mind of customers and
society at large. This creates a sense of belongingness and loyalty in
existing and prospective customers. During the financial year 2013-14,
following CSR activities were carried out by the Bank :
- Financial assistance of Rs.100 lacs to the Prime Minister''s Relief fund
for the victims of Uttarakhand Floods-2013.
- Financial assistance of Rs.155 lacs to 1204 number of schools adopted
by our Rural and Semi-Urban branches in form of Fans/Water
Purifiers/Toilet Blocks.
- Financial assistance of Rs.4.62 lacs to "Aim for Seva" for its Free
Student Homes, Jeypore, Odisha.
- Financial assistance of Rs.15.69 lacs to Akal Charitable Hospital for
procuring Ambulance Van in service of tribal/ rural underprivileged
critical patients.
- Financial assistance of Rs. 3.13 lacs to Kamakhya Debutter Board,
Guwahati for purchase of one ambulance for assisting primary health
care service.
- Financial assistance of Rs.2.54 lacs to Ramakrishna Mission Ashrama,
Kothar, Bhadrak, Odisha.
- Financial assistance of Rs.15 lacs to Chief Minister''s Relief Fund for
rehabilitation of cyclonic storm "Phalin" affected people, under
Bhubaneswar Circle.
- Financial assistance of Rs.3.5 lacs to the Prisons Department of
Himachal Pradesh Government for procurement of one vehicle for use
as"mobile canteen" for prisoners.
- Financial assistance of Rs.22 lacs for installation of 100 solar lights
towards development of 23 villages adopted during centralised
inauguration of 7 branches under Circle office lucknow at Rae Bareli.
- Financial assistance of Rs.10.72 lacs for procurement of Tipper to
Panaji Muncipal Corporation, Mumbai, under Mumbai circle office.
18. HUMAN RESOURCE MANAGEMENT:
Human Resources play an important role in the growth of an
organization. Human resources department is instrumental in creating a
vibrant organisational culture in which employees are encouraged and
motivated to perform their best. Human Capital plays a vital role in
accomplishment of corporate goals. Banking is a service oriented
industry and achievement of business goal of Bank depends on good
service provided to customers . In order to provide efficient customers
service, recruitment of talented people is essential.
MANPOWER
The total Staff Strength as on 31st March,2014 stood at 24557,
including employees serving overseas, 14 of which are expatriate
officers. The total domestic staff strength of 24543 comprises of 11580
Officers, 8421 Clerks and 2785 Subordinate staff and 1757 Sweepers.
The percentage of Scheduled castes (4827) and Scheduled Tribes (1583)
taken together In the total domestic staff strength is 26.09. Besides,
there are 2435 OBC employees in service of the Bank at the end of
March, 2014 and 1126 employees belong to Minority Communities. The
total work force constitutes 17.80% women employees (4371) as of March,
2014.
During the year 2013-14 pre-promotion trainings were imparted to SC/ST
candidates as per Government of India directives.
Recruitment
Bank has recruited 1209 officers during the year 2013-14, which
comprises of 186 SCs, 87 STs and 299 OBCs and 408 Women. 889 Clerks
have also been recruited during the year 2013-14, of which includes 112
SCs 87 STs, and 271 OBCs,304 women, 37 Ex-servicemen,4 dependents of
Ex-servicemen and 23 persons with disabilities and 67 persons belonging
to Minority Communities. Moreover, the Bank has also initiated the
process of recruitment of 2100 Clerks, 1300 Probationary Officers and
600 Generalist Officers in Scale-II (CA-150 , MBA Â 300, ICWA -100 and
CFA-50) during the year 2014-15.
Promotions
During the year 2013-14, Bank promoted 5 Executives to Top Executives
Grade scaleVII, 8 Executives were promoted from ScaleV to Top
Exewcutive Grade ScaleVI and 7 Executives were promoted from Scale IV
to Scale V. Besides 67 officers were promoted to ScaleIV, 433 to
ScaleIII and 342 to Scale II. In addition, under specialist category, 4
officers were promoted from Scale III to Scale IV, 8 officers were
promoted to Scale III and 6 officers to Scale II. Further, during the
period 374 Clerical Staff were promoted to Officers Cadre. Promotion
from sub-ordinate to clerical cadre was also completed. Permission was
granted to Zones for recruitment of 323 peons and 292 sweeper during
the financial year.
Industrial Relations
During the period, the Industrial Relations climate in the Bank
remained healthy and cordial between the Management and the
Unions/Associations. IR meetings and discussions were held with
Unions/Associations at periodic intervals through mutual co- operative
attitude and respect during the financial year 2013-14.
Personnel Services
A separate Pensioners Grievance Cell for retired Staff members has been
established. Simplified Family Pension format for Family Pension
introduced. Pensioners Corner for our Pensioners has been put in our
Bank''s Website. In Group Medi claim Insurance, the individual Buffer
coverage has been increased from Rs.2.00 Lac to Rs. 3.00 lac for 5
in-service employees. Holiday Home facility at Shirdi, Tirupati and
Mussourie is extended for the year 2014- 15.
Training
Top Management of the Bank gives due weighage to training because
human resources in the Bank is the most valuable asset and this asset
not only require proper care but also skill development and upgradation
of knowledge. Concept paper on Training policy of the Bank has been
prepared by Training Department. Emphasis was given to conduct more and
more locational and camp based training programmes that are organized
at Zonal Office level, taking care of current problems faced by the
staff at grass root level. A total of 1077 clerks, 8766 officers and 139
sub-staffs were trained under in house training programmes in Central
Staff College and Regional Training Centers of the Bank across the
country upto Feb 2014.
A special training called CHETNA-III was conducted where 7286 clerical
and 2100 subs-staffs were trained at Zonal Office level, where every
aspects like basic retail products, behavioral science ,motivation etc
were covered. 634 Field Officers were specially trained on Priority
Sector Lending. More than 5560 officers and 1100 subs-staffs were
trained location ally at Circle level. The detail of the topics covered
for respective employee categories were Credit Appraisal, NPA
Management, Priority Sector Lending, LAPS, Unicode, CBS, Security
Aspects, Managerial Skills, Finacle Operation, Leadership Development
etc.
Bank has sent 264 Officers/Executives to other Training Institutes like
NIBM (Pune), CAB (Pune),IIBM (Guwahati), BIRD (Lucknow), IIBF (Mumbai),
IDRBT (Hyderabad) and many other Institutes. During the financial
year, Bank has sent six executives for overseas training programme
also. Training schedule for women employees was also prepared by
Training Department. One training per employee per year is the ultimate
goal of the Bank.
The Bank is going to open 3 new Regional Training Centres at Durgapur,
Pondicherry and Shillong. Bank is constructing additional classrooms
/accommodation at their Central Staff College and Regional Training
Centres for optimum capacity utilisation of faculty, space and quality
time.
Initiatives by HRM Department
Launch of UCO Sadasya on Facebook.
UCO Sadasya is the name given to the profile exclusively for UCO bank
staff members. It''s an initiative to connect all our staff members at
once by overcoming the geographical barriers. This medium is best
suited for the staff members who need to communicate, talk, discuss,
and share their activities /concerns. As Facebook is very commonly
used by most of the existing staff members for social interaction with
their friends, relatives, other staff members, etc., UCO SADASYA was
launched on 14.03.2014 in Facebook.
Attractions for staff members:
Facebook would be used to share information and data relevant and
useful to the employees in their day to day office work. It would be
used as a platform to share information on various retail products,
divided into two broad categories, deposit products and other relating
to loans and advances. Through this medium various staff related
queries regarding retail products, job profile, branch performance,
targets, etc. will be answered.
Through UCO Sadasya, various outperforming staff, branches, Zones and
Circles will get recognition and their achievements will be shared with
the entire UCO family. It will work as a medium to upload pictures,
videos, news relating to any event or functions organized at the Head
Office level, Zonal level or at the Branch level, etc. This initiative
would be available at all time for all staff members, with an option to
share or even download at their end for personal use. The Human
Resource Management department will manage/monitor UCO Sadasya at
present.
Annual Property Return Package  2014
In terms of Regulation 20 (2) UCO Bank Officer Employees'' (Conduct)
Regulation 1976 as amended, every Officer is required to submit Annual
Property Return Statement (Form B, C, D & E) as on 31st March every
year. As per the directives of the Central Vigilance Commission (CVC)
Govt. of India, the Chief Vigilance Officer of the Bank is required to
furnish a compliance certificate to this effect to CVC by 30th June
every year.
In order to have better monitoring and timely completion of Annual
Property Return (APR) submission process, the Bank decided that for the
year ending 31.03.2014 onwards APRs up to Scale VII will have to be
filled up Online. After development of APR Â 2014 package, it was made
live in UCO Online.
Achievements of SC/ST/OBC Cell of Head Office, HRM Department
The Bank has been implementing reservation policy of Government of
India. Reservation and other relaxation and concessions extended to
SC/ST/OBC/Persons With Disability (PWD) and Ex-Servicemen employees of
our Bank is strictly adhered. As per GOI guidelines the Department
imparted Pre- Promotion Training to 840 candidates (SC-590 and ST-250)
belonging to SC/ST category. The motive behind organizing such training
was to bring such SC/ST candidates up to the level of other candidates.
Also, in order to educate HR functionaries working at various Zonal
Offices regarding Reservation Policy of Government of India and
maintenance of Reservation Rosters, the Department arranged training
programmes in Varanasi and New Delhi. 17 officers working in different
Zonal Offices participated in the training programme. Further, a
separate workshop on writing of Reservation Roster and Reservation
Policy of Government of India was organized at Central Staff College,
Kolkata on 3rd and 4th March, 2014 on the above subject in which 17
officers representing various Zonal Offices participated in the
programme. Also, in order to address the issues of SC/ST and OBC
employees of the Bank periodical meetings are being held at Apex level
as well as at Zonal Office level with welfare association of such
employees.
19. AUDIT & INSPECTION
The Bank has a well-established Audit and Inspection Department that
examines adherence to the Systems and Procedures. Bank has
comprehensive Inspection and Audit Policy for undertaking Internal
Inspections, Concurrent Audit, Revenue Audit, Risk Based Internal
Audit, and information System Audit. The guidelines received on various
issues of Internal Control from Reserve Bank of India. Government of
India, Board and Audit Committee of the Board have become part of the
internal control system for better risk management.
During the year 2013-14, the Bank has given focused attention to close
overdue inspection reports outstanding for more than 3 months by
rectification of major & other irregularities. The regular branch
inspection report is the most comprehensive feed-back to the management
about compliance of the Bank''s systems and procedure and guidelines at
operational level.
A focused attention is given to bridge the knowledge gap of Inspecting
Officers (Mobile) by imparting periodical training to them for putting
the system and procedure of the Bank at a desired / better level.
The major achievements during 2013-14 was that the Bank has
successfully implemented System based Risk Based Internal Audit in
compliance to Basant Seth Committee recommendation and also out of
total revenue leakage detected Rs.55.50 crore, Rs.48.38 Crore was recovered
on the spot by internal/external auditors concerned.
20. VIGILANCE:
Vigilance Department of the Bank is headed by the Chief Vigilance
Officer (CVO) of the rank of General Manager who is on deputation from
State Bank of Travencore. The Vigilance Department focuses on
initiation and dissemination of preventive vigilance measures.
During the year 2013-14, CVO has visited 112 branches and quite a few
administrative offices to create awareness among staff members. In the
field level, field vigilance officers also visited 285 branches to plug
the loopholes in the existing system to prevent recurrence of similar
frauds and to strengthen the preventive vigilance. The Vigilance
Department also conducted four training programmes for EOS and POS
covering more than 135 officers all over the country for imparting
knowledge for expeditious conclusion of RDA cases. It also conducted
training programme for officers of CBI to acquaint them with Bank''s
system and procedures for investigation of bank frauds. The department
has also compiled Vigilance Manual for the Bank and unveiled it in the
Annual Business Meet of the bank held on 21st & 22nd April, 2014.
21. MANAGEMENT AUDIT AND HR AUDIT:
During the year 2013-14 the department has conducted Management Audit
in 13 Zonal Offices, 6 Circle Offices, and Four Corporate Departments.
The Reports have been closed in all cases after getting the
irregularities rectified by the concerned Authorities. So far
Performances related to HR Audit is concerned, H R Audit (Manpower
Assessment) of 6 Specialised Branches (FCC, Treasury and CBO) and 11
Corporate Departments were conducted during the period under Review.
Observations/directions of the Competent Authority in respect of such
Reports have been forwarded to the respective departments for taking
necessary action.
22. MANAGEMENT INFORMATION SYSTEM:
To ensure timely and consistent submission of returns, RBI had proposed
for automation of the data flow from the Banks ,since most of the
reports were being submitted manually. Under the aegis of Core Banking
Platform our Bank has implemented Automated Data Flow (ADF) to comply
to the direction of RBI.
The Automated Data Flow has been implemented and within the stipulated
time frame, Bank has delivered 132 RBI reports applicable to us and are
ready for online submission to RBI through ADF portal. At present 132
RBI Reports are available and as per XBRL taxonomy supplied by RBI, 13
reports are ready for online submission to the RBI in XBRL format.
To reap the additional benefit of ADF under CBS environment, Bank is
also utilizing the ADF platform for single source of data to cater to
all the concerns both external (RBI , Government, etc) & internal
authorities (Corporate Departments) steps have been taken to remove
data inconsistency.
Bank has taken steps for integrating discrete systems like GBM, ATM,
e-Banking , ALM , Treasury & International Division and Overseas
Branches to have all information in the palm for proper control &
monitoring of business & draw meaningful business continuity plan .
Bank has also initiated action for Business intelligence ( BI) tool for
effectively monitoring the business growth & taking timely corrective
action wherever necessary. Training on BI tool has been imparted to all
IT skilled officials of Circles, who can utilize the benefit of BI tool
for monitoring & accessing business performances of Zones & Branches.
23. COMPLIANCE OF OFFICIAL LANGUAGE POLICY
The Bank has taken proactive steps to implement the Official Language
Policy of Govt. of India and has meticulously taken steps to comply
with the provisions of the Official Languages Act and the Rules made
there- under. The Bank has also taken appropriate follow-up action to
implement the directives as contained in the Annual programme with
regard to the use of Official Language Hindi issued by Government of
India, Ministry of Home Affairs, Dept. of Official Language and also
endeavored to achieve various targets prescribed in the said
programme. The Bank has also given preferred attention to comply with
the instructions of Financial Services Department, Ministry of Finance
and Reserve Bank of India regarding the use of Hindi in official work.
Ninety Seven Hindi Workshops were organised by the Bank for the
Officers and employees to motivate them to do their work in Hindi.
Total 2199 Officers / employees were trained through these Hindi
Workshops. In view of the directives of Govt. of India to promote
''UNICODE'' application on all the computers, a session was allotted in
these workshops to acquaint all Officers and employees with its
application and activation. Apart from this, Officers/employees were
nominated to attend 5 days Basic computer training programme conducted
by Dept. of Official Language, Ministry of Home Affairs, Govt. of
India.
449 branches were inspected by Official Language Officers posted at
different Zonal offices, 4 Zonal offices, and one department of Head
Office were also inspected by Chief Manager(O.L.) posted at Head Office
during the period under review to evaluate the performance in the area
of implementation of Official Language Policy of Govt. of India and
necessary remedial measures were also taken to remove the deficiencies
observed in such inspections.
During the period under review a seminar on the subject was
successfully organized by Zonal Office, Lucknow and Dharamshala.
During the period under review 5 day Translation training programme for
Hindi Officers was organized at our Central Staff College, Kolkata
under the aegis of Central Translation Bureau, Govt of India. Our Bank
successfully organised ''HINDI UNICODE WORKSHOP'' for the Executives of
all Public Sector Banks & Financial Institutions posted in the Kolkata
Pin Code area under the auspices of Kolkata Town Official Language
Implementation Committee (Banks'').
In view of the requirement to accelerate the pace of implementation and
effective compliance of Official Language Policy of Govt. of India at
Head Office, a two day motivation programme for the Official Language
Officers and Nodal Officers posted in various departments of Head
Office was organised at our Central staff College, Kolkata. In
addition, monthly meeting is also held to review the progress made and
difficulties being faced in compliance of the OL Policy of the Union at
HO.
Zonal Office Jaipur, Raipur, Mumbai, Indore, Jodhpur, Ahmedabad,
Ranchi, Pune, Chandigarh, Coimbatore and Bhopal continued to publish
Hindi e-magazines during the period under review.
Our Bank successfully organised various competitions, rendered
editorial assistance to other Public Sector Banks & Financial
Institutions in conducting ''HINDI UNICODE WORKSHOP'' & ''Hindi workshop''
under the auspices of different TOLIC''s.
Various forms / publicity materials / procedural booklets and report of
Annual General meeting of Shareholders, Manual of Instructions, Minutes
of various Board Committees were prepared in bilingual form. Hindi text
of the materials for our Bank''s Website was also prepared. Sufficient
amount was allocated by the Bank for the purchase of classic literary
Hindi books, dictionaries, technical glossaries, Hindi books on
computer/banking etc. and famous literary books in regional languages
written by renowned litterateurs.
In view of effective monitoring of the work with regard to the use of
Hindi in official work, the position of our Bank was vividly reviewed
in the meetings of Apex Official Language Implementation Committee of
the Bank.
"Hindi Month", "Hindi Fortnight", "Hindi Week" was celebrated
enthusiastically at Head Office as well as Zonal Offices, Central Staff
College, Regional Training Centers and Branches.
During the period under review Zonal Office, Patna and Zonal Office,
Jalandhar were awarded 1st Prize / Shield and Zonal Office, Ranchi,
Zonal Office, Bhubaneswar and Zonal Office, Dharamshala were awarded
2nd Prize by TOLIC Patna, Jalandhar, Ranchi, Bhubaneswar and
Dharmashala respectively
The Third Sub-Committee of the Committee of Parliament during their
visit to Kolkata inspected our Head Office on 4th October, 2013 in
respect of implementation of Official Language Policy in our Bank and
expressed their satisfaction on observing the steps taken by our Bank
for augmenting the use of Official Language Hindi in official work. The
Drafting and Evidence sub Committee of the Committee of Parliament also
discussed regarding about implementation of Official Language Policy
with the Chairman and few member Banks of TOLIC, New Delhi including
our Zonal Office, Delhi on 11.01.2014.
24. COMPLIANCE:
The Bank has emphasized on compliance issues as mandated by RBI. The
Bank has been ensuring the level of customer service, functions and
compliance of rules of deposit, advances, KYC/AML, other services,
prompt submission of statutory/ regulatory reports, information and
data asked by RBI, GOI, etc. through a strict compliance system.
Compliance Policy  2013 was prepared incorporating necessary changes
to prevent breaches in the areas of compliance functions and the same
has been circulated to all branches and offices of the Bank after due
approval by the Board of Directors in its meeting held on 10.04.2013.
During the year, Test Checking of compliance functions has been
undertaken in 333 branches and 8 corporate offices. Deficiencies
observed are being rectified on the spot and branches/offices have been
sensitised about compliance functions so as to avoid compliance
breaches. Critical issues were reported and discussed at the
appropriate level to enhance efficacy of the system. Interactions are
also being held with Inspection Department & Risk Management Department
periodically to discuss issues relating to compliance functions and to
suggest measures to avoid recurrence thereof.
25. LEGAL MATTERS :
The Law Department of the Bank plays a significant role in the various
legal matters of the Bank. It is acting as a facilitator and attends to
various matters covering opinion, documentation, litigation etc.,
emanating from various functional departments at Head Office,
Circles/Zones, branches and overseas branches. The department has
organized a 3-day workshop for Law Officers during 2013-14. Hand Book
on SARFAESI was prepared and sent to all branches/offices for reference
and exhaustive guidelines issued for filing and handling of DRT cases.
Bank conducted various workshops at Circle Offices to streamline
monitoring and follow up of cases filed by and against the Bank.
The department regularly advises the Circle and Zonal offices about
further course of action to be taken in DRT and SARFAESI cases, BIFR,
CGIT, NI Act and other cases filed by and against the Bank.
Exhaustive guidelines including latest amendments in various Acts and
Case Laws affecting bankers have been issued on topics covering DRT,
SARFAESI, Indian Registration Act, Maharashtra Stamp Act, liabilities
of legal heirs as borrower, New Companies Act, Lok Adalat etc,. Matters
pertaining to agreement for sale & assignment of assets, finalisation
and execution. Loan document for UCO Pensioners'' Scheme was also
introduced by the department.
26. FUTURE PLAN:
During the year, Bank has further strengthened its retail base on both
Liability & Assets side. Bank''s focus will continue to remain towards
Retail business model and credit flow other than retail advances will
mainly constitute potential segments/sectors which have low risk
weights. However, with the improvement in Economic Scenario and with
Govt''s intervention to create a favorable investment climate for
development of Infrastructure facilities in the country, bank will take
a call to participate in New large projects. Keeping in view the
significant performance in priority sector lending and inclusion of
large number of rural population into the bank''s fold through direct
agriculture, allied activities & MSE advances, Bank will continue to
strive for maintaining the sustainability of providing small loans to
rural & semi urban population.
Another area of focus shall remain the customer acquisition campaigns
in all geographical regions of the country through branch network
spread, through Ultra small branches and other out - reach programms.
Leveraging the technology to provide convenient & safe banking for
customers will continue to remain focused. Technology upgradation with
changing times and in sync with new business initiatives/opportunities
will always remain the facilitator for delivery & control tool for the
management. Keeping in view the sentiment of consolidation of Retail
business across various sectors of the economy, Bank will sum up the
year 2014-15 for third time in succession as "Retail Business Year".
27. BOARD OF DIRECTORS:
Corporate Governance
The Bank firmly believes in and has consistently practiced good
corporate governance which is woven around its core values of
transparency, professionalism and accountability. By constantly
focusing on these aspects in its day-to-day operations, the Bank
strives to enhance shareholders'' value. The Bank being committed to the
principles of good governance, its Board of Directors has formed
various committees of the Board to monitor every aspect of Bank''s
business. The systems and business processes of the Bank are
continuously reviewed at various levels for identifying and
strengthening areas of weaknesses, if any. The Directors of the Bank
believe that good governance is the key to earning trust, loyalty and
goodwill of clients, business associates, employees and investors and
respect from the society at large.
Changes in the Board of Directors
Mr. N.R.Badrinarayanan served as Executive Director in the Board from
01.09.2010 to 30.06.2013.
Mr. J.K.Garg has been appointed as Executive Director with effect from
05.08.2013.
Prof. S.L.Morris served as Shareholder Director in the Board from
13.07.2010 to 12.07.2013.
Mr. Sunil Kumar Maheshwari has been appointed as Part Time Non-Official
Director in the Board w.e.f.21.06.2013.
Mr. Salahuddin Ansari has been appointed as Part Time Non- Official
Director in the Board w.e.f. 26.06.2013.
Meetings of the Board of Directors
During the financial year 2013-14, the Bank had 13 meetings of the
Board of Directors, 14 meetings of the Management Committee of the
Board, 9 meetings of the Audit Committee of the Board. The number of
meetings of various other Committees of the Board held during the year
2013-14 is given below:
Sl
No. Name of the Committee No. of meetings held
1. Management Committee of the Board 14
2. Audit Committee of the Board 9
3. Risk Management Committee 5
4. Shareholders Grievance Redressal
Committee 3
5. Share Transfer Committee 5
6. Special Committee for Monitoring
Large Value Frauds 3
7. Customer Service Committee 4
8. Committee on HR Related Issues of the
Bank 2
9. Nomination Committee of the Board 1
10. Remuneration Committee of the Board 1
11. IT Strategy Committee of the Board 3
12. Board Level Committee for Monitoring
Recovery in NPA Accounts 4
13. Committee for Disposal of Appeal Cases 3
Statement of Directors'' Responsibilities
The Directors confirm that in the preparation of the annual accounts
for the year ended March 31, 2014, the applicable accounting
standards have been followed along with proper explanation relating
to material departures, if any. The accounting policies framed in
accordance with the guidelines of Reserve Bank of India, were
consistently applied. Reasonable and prudent judgements and estimates
were made so as to give a true and fair view of the state of affairs of
the Bank at the end of the financial year and of the profit of the
Bank for the year ended March 31, 2014. Proper and sufficient care was
taken for the maintenance of adequate accounting records in
accordance with the provisions of applicable laws governing banks in
India and the accounts have been prepared on an on-going basis.
Acknowledgements
The Board of Directors places on record its deep appreciation of the
contributions made to the deliberations of the Board by out- going
Directors namely, Shri N.R.Badrinarayanan, and Shri S.L
.Morris. The Board would like to welcome the new Directors and
looks forward to their valuable inputs towards growth of the Bank. The
Directors remain thankful to the Government of India, Re- serve Bank of
India and other regulatory authorities for their sup- port and valuable
guidance. The Board also thanks other Financial Institutions and
correspondent banks for their sincere co-operation. The Directors
express their gratitude to the loyal customers for their trust and
continuous patronage of the Bank. The Board also thanks the Staff
Unions/Associations and shareholders of the Bank for the support
extended by them. The Directors place on record their deep appreciation
of the dedication shown by each employee of the Bank due to which the
Bank could achieve so many milestones.
For and on behalf of Board of Directors,
Date: May 29, 2014 (Arun Kaul)
Chairman & Managing
Kolkata
Director
Mar 31, 2013
1. BUSINESS PROFILE:
The Bank has crossed Rs. 3,00,000 lakh crore of business as of 31st
March, 2013, which is a milestone in Bank''s history.
The year 2012-13 was ''Retail Business Year'' for the Bank. The Bank has
been successfully able to transform itself in following retail business
model. On Asset side, the focus which the Bank laid on retail advances,
particularly financing of ''UCO Home'', ''UCO Car'' and ''UCO Gold'' resulted
into a growth of 22.30 per cent during the year 2012-13.
The emphasis on portfolio of LC Bill discounting resulted in
reducing the dependence on corporate credit. LC bill discounting
portfolio increased from Rs. 4215 crore as of 31.03.2012 to Rs. 12615
crore as of 31.03.2013, thereby showing an increase of Rs. 8400
crore. In fact, the major growth of incremental advances during
the year 2012-13 was from Retail and Priority Sectors along with
LC bill discounting portfolio.
On Liability side, the increase in CASA portfolio, particularly that
of Iranian funds as also increase in term deposits portfolio of
less than Rs. 5 crore brought down the dependence on bulk
deposits, thereby the proportion of bulk deposits C-D getting
reduced from 46 per cent as of 31st March, 2012 to 28 per cent
as of 31st March, 2013.
During the year 2012-13, the Bank showed a respectable growth in all
business parameters. The global business of the Bank increased from
Rs.2,71,507 crore as of 31st March, 2012 to Rs. 3,05,000 crore as of
31st March, 2013, with a growth of 12.34 per cent. In deposits, the
growth was 12.62 per cent, increasing from Rs. 1,54,003 crore as of
31st March, 2012 to Rs. 1,73,431 crore as of 31st March, 2013. In
advances, the growth was 11.97 per cent.
SL
NO. Particulars FY 12 FY 13 GROWTH
Global - (In Rs. Cr) A bsolute Percentage
(i) Deposits 154003 173431 19428 12.62
(ii) Advances 117504 131569 14065 11.97
(iii) Total
Business 271507 305000 33493 12.34
The domestic business of the Bank showed an increase of 11.10 per
cent or in absolute terms Rs. 27734 crore and stood at Rs. 277591
crore as of 31st March, 2013. The total domestic deposits increased
from Rs. 142017 crore as on 31st March, 2012 to Rs. 158386 crore
as on March 31,2013; thereby showing an increase of Rs. 16369
crore or 11.53 per cent. Total domestic advances increased by
10.54 per cent with an absolute growth of Rs. 11365 crore and
stood at Rs. 119205 crore.
SL
NO.Particulars FY 12 FY 13 GROWTH
Domestic - (In Rs. Cr) Absolute Percentage
(i) Deposits 142017 158386 16369 11.53
(ii) Advances 107840 119205 11365 10.54
(iii)Total Business 249857 277591 27734 11.10
Per branch business improved from Rs. 104.54 crore as of March, 2012 to
Rs. 106.36 crore as of March, 2013. In terms of Per branch deposits, it
increased from Rs. 59.42 crore as of March, 2012 to Rs. 60.68 crore as
of March, 2013. Per branch advances also improved from Rs. 45.12 crore
as of March, 2012 to Rs. 45.67 crore as of March, 2013.
The Bank''s CASA deposit to total domestic deposit ratio stood at 34.96
per cent up from 23.85 per cent last year. The Bank''s Savings deposits
reached Rs. 29680 crore as at March, 2013 compared to Rs. 26267 crore
as on March, 2012, registering a growth of 12.99 per cent and current
deposits at Rs. 25694 crore as at March, 2013 showed a growth of 238.08
per cent from Rs. 7600 crore as at March, 2012.
SL
NO. Particulars FY 12 FY 13 GROWTH
In Rs. Cr) Absolute Percentage
(i) Current 7600 25694 18094 238.08
(ii) Savings 26267 29680 3413 12.99
(iii Domestic 33867 55374 21507 63.50
(iv) CASA Ratio 23.85 34.96
During the year, the Bank added over 25.10 lakh CASA customers.
The overseas business of the Bank showed an increase of 26.60 per cent
and stood at Rs. 27409 crore. The total deposits of the overseas
branches increased from Rs. 11986 crore as of March, 2012 to Rs. 15045
crore as of March, 2013; thereby showing an increase of 25.52 per cent
or in absolute terms Rs. 3059 crore. The overseas advances increased
by Rs. 2700 crore or 27.94 per cent and stood at Rs. 12364 crore as of
31st March, 2013.
The global per employee business of the Bank has increased from Rs.
12.47 crore as of March, 2012 to Rs. 13.43 crore as of March, 2013.
SL
NO. Particulars FY 12 FY 13 GROWTH
In Rs. Cr) Absolute Percentag
(i) Deposits 11986 15045 3059 25.52
(ii) Advances 9664 12364 2700 27.94
(iii Total Business 21650 27409 5759 26.60
2. PROFITABILITY:
The operating profit of the Bank, during the year 2012-13, increased by
19.41 per cent from Rs. 2811.42 crore during 2011-12 to Rs. 3357.09
crore in 2012-13. However, the net profit of the Bank showed a decline
by 44.24 per cent from Rs. 1108.67 crore during 2011-12 to Rs. 618.20
crore in 2012-13. The decrease in net profit has been primarily due to
heavy provisioning on account of NPAs. Total provision requirement for
the entire financial year was at Rs. 2739 crore, compared to earlier
year''s provision of Rs. 1703 crore. The provision for only NPAs during
the year 2012-13 was Rs. 1779 crore vis-a-vis Rs. 756 crore in 2011-12.
Net Interest Income of the Bank showed a healthy growth of 17.41 per
cent during 2012-13 with Cost to Income Ratio coming down by 2.91
percentage points in the same period.
Total Income for the full year FY 2013 was Rs. 17704 crore compared to
Rs. 15598 crore for FY 2012. The Bank''s interest income for the whole
year was at Rs.16752 crore compared to
Parameter 31.03.12 31.03.13 Change(%)
As on 31.03.12 As on 31.03.13
Net Interest
Income 3902.10 4581.53 17.41
Variation
Cost of Income 42.24 39.33 (-) 2.91
Rs.14632 crore for FY''12. Total expenses for the whole year was Rs.
14347 crore compared to Rs. 12787 crore for FY12. Operating expenses
reached Rs.2177 crore during the entire year compared to Rs.2056 crore
for FY12.
Parameter 31.03.12 31.03.13
As on 31.03.12 As on 31.03.13
Book Value
per Share 94.72 97.19
Net Interest
Margin (Global) 2.77 2.34
Return on Assets 0.69 0.33
3. CAPITAL :
During the year, the Bank allotted 8,79,16,343 equity shares to
Government of India on preferential basis at an issue price of Rs.
77.46 per share determined in accordance with SEBI ICDR Regulations,
2009. Bank had received Rs. 681 crore from Government of India against
allotment of above equity shares.
The total capital of the Bank as on 31st March, 2013 stood at Rs.
2575.63 crore. The Reserves and Surplus stood at Rs. 7106.78 crore as
on 31st March, 2013.
4. CAPITAL ADEQUACY RATIO:
The Bank continues to maintain healthy capital base. As at March, 2013,
Capital Adequacy Ratio as per Basel-II norm stood at 14.15 per cent (as
against a mandatory requirement of 9 per cent) with a Tier I capital
ratio at 9.05 per cent (as against mandatory requirement of 6 per
cent). Adequate headroom is now available under both Tier-I and Tier-II
options to raise capital to support business growth. Government
shareholding as at 31st March, 2013 stood at 69.25 per cent. The Bank
has a strong Common Equity Capital to meet the stringent Basel III
norms during the current year.
(Rs. in Crore)
2011-12 2012-13
Sl.
No. Capiital Adequacy Ratio (%)
1. Tier I (Absolute) 7890.76 9157.13
2. Tier II (Absolute) 4151.46 5140.94
3. Total Capital (I II) (Absolute) 12042.22 14298.07
4. Tier I (%) 8.09 9.05
5. Tier II (%) 4.26 5.10
6. Basel-II (%) 12.35 14.15
7. Basel-I (%) 11.03 12.43
5. TREASURY & INVESTMENT MANAGEMENT:
The Bank has been performing its Treasury & Investment Operations
keeping track of the macroeconomic and market developments in
accordance with the guidelines issued by the Reserve Bank from time to
time as also the Bank''s Corporate Investment Policy approved by the
Board of Directors. In the changed scenario, where state of the art
technology is providing cutting edge in Treasury and Risk Management,
the Bank has also embarked upon a globally deployable Integrated
Treasury management Solution for an effective and efficient way to
optimize resource utilization and maximize returns on investment/
trading.
In order to mitigate risk and balance sheet management the Bank has
gone for interest rate swap transactions. During the year 2012-13, the
Bank has concentrated a lot on improving its M - Duration by investing
in short term highly liquid instruments such as the Treasury Bills.
Total global Investment (Gross) of the Bank during the year 2012-13
grew by 13.71 per cent from Rs. 46185 crore as on 31.03.2012 to Rs.
52515 crore as on 31.03.2013. The Domestic Investment grew by 13.98 per
cent from Rs 45038 crore as on 31.03.2012 to Rs 51335 crore as on
31.03.2013. SLR investment increased by 8.09 per cent during the year
2012-13 by registering the level of Rs. 43347 crore in March 2013 as
compared to Rs. 40102 crore in March 2012. Non-SLR investment
(Domestic) registered a robust growth of 61.83 per cent to rise from
Rs. 4936 crore in 2012 to Rs. 7988 crore in 2013. The yield on domestic
investment increased from 7.45 per cent as on 31.03.2012 to 7.59 per
cent as on 31.03.2013. Total Investment income has registered a
reasonable growth of 15.15 per cent to reach the level of Rs 3635 crore
in March 2013 from Rs 3156 crore in March 2012.
SL
NO. Particulars FY 12 FY 13 GROWTH
(in Rs. cr) Absolute Percentage
(i) Global 46185 52515 6330 13.71
(ii) Domestic 45038 51336 6297 13.98
(iii) Overseas 1147 1180 33 2.88
6. SOCIAL BANKING:
i) Priority Sector Lending:
During the year 2012-13, the Priority Sector advances of the Bank stood
at Rs. 34962 crore constituting thereby 32.13 per cent of Adjusted Net
Bank Credit (ANBC). The Y-O-Y growth of Priority Sector advances stood
at 23.54 per cent.
ii) Agriculture Advances:
Total agriculture advances of the Bank stood at Rs. 12625 crore
constituting 11.60 per cent of ANBC. Direct agricultural credit stood
at Rs.9986 crore constituting 9.18 per cent of ANBC and Indirect
agricultural credit stood at Rs. 2639 crore constituting 2.42 per cent
of ANBC. The Y-O-Y growth of total Agriculture Advances was 30.79 per
cent.
iii) Advances to Weaker Sections:
Advances to Weaker Sections stood at Rs.10327 crore as of 31st March,
2013, with percentage to ANBC being 9.49%. The Y-O-Y growth of advances
to Weaker Sections stood at 31.37 per cent.
iv) Micro, Small & Medium Enterprises (MSME) and Micro & Small
Enterprises (MSE):
In order to focus on MSME segment of advances, the Bank created a
separate vertical for MSME during the year 2012-13. The Bank had
recorded a healthy growth in MSME and MSE sectors with advances under
MSME and Micro & Small Enterprises (MSE) standing at Rs. 20871 crore
and Rs. 16421 crore, respectively. The Y-O-Y growth of MSE Advances
stood at 22.20 per cent.
v) Minority Community Advances:
Total Minority Community advances of the Bank stood at Rs. 5256 crore
constituting 15.03 per cent of Priority Sector Advances, thereby
achieving the stipulated target.
vi) Other Activities:
The Bank had put emphasis on Government Sponsored Schemes like PMEGP
(Prime Minister a Employment Generation Programme), SGSY (Swarnajayanti
Gram Swarozgar Yojana), SJSRY (Swarna Jayanti Shahari Rozgar Yojana),
SHG (Self Help Group), JLG (Joint Liability Group), etc.
The Bank''s outstanding credit to Self-Help Groups (SHGs) stood at Rs.
483 crore, with 69877 accounts. 26 Financial Literacy Centres in 26
Lead Districts provided financial education to 30803 persons. The Bank
also conducted Financial Literacy programmes for children studying in
government schools. During the year, the Bank had set up 1812 Farmers''
Clubs all over the country.
The Bank assisted 3.74 lakh women beneficiaries to the tune of Rs.
5637.41 crore, constituting 5.18 per cent of ANBC as against the RBI
norm of 5 per cent.
vii) Initiatives to boost Priority Sector financing:
The Bank had organized a large number of credit camps throughout the
country to boost advances under Agriculture and MSE Sectors.
During the year 2012-13, the Bank had entered into MOUs with different
organizations like M/s. Mahindra & Mahindra Ltd., Action Construction
Equipment Ltd., Gujarat Mahindra Tractor Ltd., HMT Ltd. to lend
Commercial Vehicles under MSE and Tractors under Agriculture Sector.
The Bank has launched several new Schemes during the year 2012-13:
1. UCO KISAN BHOOMI VRIDHI Scheme:
The Scheme was launched for financing Small/Marginal farmers, Share
Croppers/Tenant farmers for purchase of land for agricultural purpose
(Maximum Loan amount Rs.10.00 lac).
2. UCO KISAN TATKAL Scheme:
It has been launched based on the guidelines received from Department
of Financial services, Ministry of Finance, Government of India for
providing instant credit to the farmers to meet their emergency
financial requirements (minimum Rs.1000/- to maximum Rs.50000/-) for
Agriculture and Domestic purposes.
3. UCO ESTATE PURCHASE LOAN Scheme:
A new scheme named "UCO Estate Purchase Loan" was launched based on the
guidelines received from Department of Financial services, Ministry of
Finance, Government of India to extend financial assistance for
purchase of Estates growing traditional crops like coffee, tea, rubber,
cardamom, cashew nut, pepper, coconut and other perennial crops.
4. Scheme for Solar Irrigation Pump set:
A new scheme named "Solar Irrigation Pumpset" has been launched to
extend Financial Assistance to the farmers for purchase of Solar
Irrigation Pumpset which is cost effective. The Scheme has been
prepared based on the guidelines received from department of Financial
Services, Ministry of Finance, Govt. of India to help the farmers in
saving their crop from erratic rainfall.
5. UCO KISAN ALL PURPOSE TERM LOAN SCHEME:
The scheme has been formulated for hassle-free single term loan limit
to farmers for all term loan requirements. The limit granted shall not
be a part of the Kisan Credit Card Limit and it shall be a separate
single transaction account, based on the investment plan given by the
farmer to be undertaken in next 2- 3 years. The scheme will be a
combination of Investment/ development activities relating to
agriculture and allied activities.
6. Scheme for relending to individual borrowers having settled their
Direct Agriculture loan dues under Compromise/ One time settlement
scheme (OTS)/legal action:
To help bona-fide farmers, who are not able to repay their loans in due
course, settle their dues under various compromise schemes, Bank has
formulated a scheme for relending to individual borrowers (singly or
jointly) who have settled their Direct Agriculture loan dues under
various compromise/One time settlement schemes/legal action. Fresh loan
under the scheme will be considered only for Direct Agriculture
activities both for production and investment credit.
7. FINANCIAL INCLUSION
The Bank has adopted 3-way Approach to implement the Financial
Inclusion Programme which constitutes;
(i) Opening of Brick & Mortar branches in unbanked villages,
(ii) Launching of UCO Bank on Wheels (Mobile Van)
(iii) Implementation of ICT based BC Model.
During the year 2012-13 the Bank has covered 645 villages each with
population below 2000. Further, the Bank has also covered 936 villages
under Direct Benefit Transfer (DBT) Programme of Government of India
launched from 01.01.2013. Thus the Bank has covered 3284 number of
villages as on 31.03.2013 including 1703 villages each with a
population over 2000 covered during 2011-12.
Basic Savings Bank accounts to the tune of 25.63 lac have been opened
in these villages; out of which 6.25 lac accounts are opened under ICT
based BC Model and 240139 no. of Smart Cards have been issued to these
customers. Overdraft facility is also built in for the customers in the
Basic Savings accounts opened under Financial Inclusion.
The Bank has opened till 31st March, 2013, 19 branches & 763 Ultra
Small Branches (UCO MITRA SAKHA) in the unbanked villages in compliance
with the guidelines of Government of India on Financial Inclusion. Out
of these 763 Ultra Small branches, 178 USBs have been opened in the
villages each with a population over 5000.
The Bank has 24 "UCO Bank on Wheels" (Mobile Vans) operating in 12
states. These Mobile vans move to the villages all the six days in a
week and offer all banking services as available in a regular branch
under CBS environment.
Under Direct Benefit Transfer (DBT) Programme of Government of India,
launched from 01.01.2013 in 43 districts, the Bank has presence in 39
districts. Out of 18968 beneficiaries allotted to the Bank in these
districts, the Bank opened accounts of all the 18968 beneficiaries.
8. RETAIL BANKING:
The year 2012-13 being the year of Retail business, the Bank focussed
on retail business both on asset and liability sides. In this
direction, the Bank had came out with several new repackaged liability
products both under term deposits as well as in current deposits and,
on asset side, made several modifications in existing asset products
such as UCO Home, UCO Education, UCO CAR etc. to make the asset
products competitive and marketable.
Under liability portfolio, the Bank had launched a new customized
Current Account Product titled ''UCO CARE'' to cater to the needs of
business class society with add-on facility of overdraft. Further, the
Bank launched special repackaged Term deposit schemes to boost growth
of term deposits of (< Rs. 5 crore), such as UCO Dhan Varsha (444
days), UCO Double, UCO Triple One, UCO 999, UCO 222, UCO 111 and UCO
66. These schemes had gone very well with the public.
On asset side, besides modifications under UCO Home and UCO CAR, the
Bank launched a new Special Educational Loan Scheme titled ''UCO Premier
Educational Loan Scheme'' for financing under preferential terms to
students securing admission in premier educational institutes of the
country.
The retail lending of the Bank had shown a healthier growth of 22.30
per cent during the year 2012-13. UCO CAR registered a growth of 101.04
per cent and UCO Home 17.30 per cent growth.
SL
NO. Particulars FY 12 FY 13 GROWTH
(In Rs. Cr) Absolute Percentage
(i) Total Retail 7228 8840 1612 22.30
(ii) Home 4235 4968 733 17.30
(iii) UCO Car 384 772 388 101.04
(iv) UCO Education 996 1141 145 14.56
9. BANCASSURANCE:
The Bank showed a y-o-y growth of 29 per cent under Life Insurance
business and 52 per cent in non-Life Insurance business. 12 Zones of
the Bank was declared as Bima Zones during the year 2012-13.
10. RECOVERY:
The performance of recovery & upgradation in NPA accounts during the FY
2012-13 has substantially improved over the previous years. The Bank
has undertaken vigorous recovery efforts in NPA accounts for early
recovery in the accounts and there has been substantial improvement in
the recovery and upgradation during the current FY over the previous
two years.
Particulars 31.03.2011 31.03.2012 31.03.2013
Cash Recovery 434 658 828
Upgradation 226 417 673
Total Redemption 660 1075 1501
However, the gross NPA as on 31.03.2013 of the Bank has increased to
Rs.7130 crore from Rs.4086 crore as on 31.03.2012 and this is mainly
due to the slippage of a large number of borrowal accounts to NPA in
the FY 2012-13, particularly some high value group accounts. This
sudden slippage is mainly due to the effect of global recession which
affected domestic economic activity also to a large extent; and large
projects could not either be completed or generate sufficient cash flow
as anticipated, hence failed to fulfil their repayment obligations to
the Bank. Similarly, SME accounts also got affected badly. The sudden
slippage has resulted in increase in GNPA/NNPA Ratios in the FY 2012-13
as compared to the FY 2011-12.
(Rs. in Crore)
SL.
NO. Parameter FY 12 FY 13
(i) (%)/Gross NPA (%) 3.48 5.42
(ii) Net NPA (%) 1.96 3.17
(iii NPA Provision
Coverage Ratio (%) 54.39 52.08
Committee approach for follow-up & monitoring of recovery in NPA
accounts.
In order to strengthen the monitoring mechanism of recovery, a
Committee approach was adopted by the Bank.
i) In terms of the direction of Ministry of Finance, DFS, GOI, Board
Level Committee has been constituted in the Bank where CMD, EDs & Govt.
nominee Director are members of the Committee for monitoring of
recovery Performance of NPA accounts. Progress of recovery in all such
NPA accounts is being monitored by the Committee periodically and the
report being submitted to the Board accordingly.
ii) For monitoring/follow-up of high value borrowal accounts in regard
to the recovery and prevention of fresh slippage, a Committee
comprising of five Corporate GMs was set up at HO level, and the
Committee is meeting on weekly basis.
iii) Committees were also constituted at Zonal & Circle Office level
for effective monitoring of recovery in NPA accounts as well as for
containment of slippage.
iv) For effective monitoring of the recovery performance in technically
written-off accounts a Task Force/dedicated team at HO level is formed
consisting of a DGM, AGM, CM and 4 other officers for close follow up
with the circles regarding the development of recovery in such
accounts.
v) Bank extended the modified compromise settlement scheme for small
NPA/ML accounts with outstanding balance up to Rs.10 lac during the FY
2012-13 to give benefit to the small NPA borrowers and thus recovered
through this channel Rs. 58.78 crore in FY 2012-13 as against recovery
of Rs. 34.96 crore in corresponding period of last year. Bank also
introduced a separate scheme for compromise settlement in MSME
borrowers.
Various other recovery measures that have been adopted by the Bank for
boosting Recovery in NPA/ML accounts and bring down the GNPA of the
Bank include:
- Immediate initiation of action under SARFAESI Act where the unit is
not viable after the account becomes NPA in all eligible accounts
followed by taking possession and auction sale of the property(ies).
- Filing of Recovery suits in DRT/Civil courts and identification &
declaring borrowers with outstanding balance of Rs. 25.00 lac and above
as ''Willful Defaulters'' as per RBI guidelines.
- Monitoring and follow up in regard to development in each account
with balance of Rs. 5 crore and above with the Circle Offices on
fortnightly basis through video conference.
- Close follow-up of all NPA A/cs of Rs. 1 Crore & above by Circle
Heads of Chennai, Kolkata & Mumbai and Rs.50 Lac & above by Circle
Heads of other Circles.
- Decreed cases, where details of assets of Borrowers / Directors &
Guarantors are not available, to be handed over to reputed Detective
Agencies for identification of their assets within the stipulated time
schedule.
- Steps for timely execution of Decrees issued by the Court /
Certificate of Recovery issued by the DRTs through Recovery Officers of
DRTs.
- Number of Asset Management Branches (AMBs) of the Bank were
increased to eleven from earlier five for effective monitoring and
follow up of NPA accounts through the specialized branches across the
country.
11. CREDIT MONITORING:
In order to be proactive in monitoring of all borrowal accounts on real
time basis, the Bank has put in place a robust System to generate
reports on Dues and sensitized all concerned to start follow up from
Day one, Intensify after 30 days and get regularized within 60 days.
For hassle-free monitoring and follow up of all big borrowal accounts
for Rs. 1 crore and above under stress, the Bank takes the leverage of
the system in generation of one customized Report (CCMR) containing
Financial and Non-Financial irregularities/ deficiencies, in addition
to few other regular Reports available every month. To further
accentuate the thrust on maintenance of asset qualities, meeting with
borrowers by the branch and other field functionaries is being ensured.
Realising the importance of Credit Audit in ensuring the quality of
assets, the Bank has identified 1345 borrowal accounts during 2012-13
for Credit Audit. Audit reports for the previous years from 2009-10 to
2011-12, barring a few for 2011-12 have since been closed during
2012-13.
To safeguard the security interest of the Bank, the Bank registered all
cases numbering more than 1.30 lac pertaining to the period before
01-04-2011 with CERSAI. Security Interest created on or after
01-04-2011 is being registered with CERSAI on an ongoing basis.
12. RISK MANAGEMENT:
During the year 2012-13, the Bank has put in place several new
initiatives in the area of Risk Management. Implementation of Advanced
approaches under Basel II is in progress. Diagnostic Gap study in all
the risk areas has been completed and separate Market Risk Management
policy has been put in place. CIBIL helpdesks in all Zones have been
formed, CIBIL workshops involving all Nodal officers of Zones and
Circle offices along with Branch officials have been conducted. The
percentage of credit data acceptance by CIBIL and pulling of CIBIL
reports have increased substantially. CIBIL reports pulled has
increased from 19 per cent as on March 2012 to 78 per cent as on March
2013. In absolute terms the number of CIBIL reports pulled has
increased five fold from 3370 in the month of March 2012 to 15741 in
the month of March 2013.
13. REGIONAL RURAL BANKS:
Of the five RRBs sponsored by the Bank as at the end of March, 2012,
the Bank has two RRBs namely, Bihar Gramin Bank and Paschim Bangla
Gramin Bank as on 31.03.2013.
Two important developments that took place in the year 2012-13 in terms
of decision of the Government of India were namely, amalgamation of the
RRBs as well as recapitalization of RRBs.
(I) Amalgamation of RRBs:
The amalgamation, thus, effected during the year are as detailed below:
- In the state of Madhya Pradesh, Mahakaushal Ksh. Gramin Bank was
amalgamated with Satpura Narmada Gramin Bank and Vidisha Bhopal KGB to
form Central Madhya Pradesh Gramin Bank under the sponsorship of
Central Bank of India w.e.f. 08.10.12.
- In the state of Bihar the erstwhile Bihar Ksh. Gramin Bank &
Samastipur Ksh. Gramin Bank got amalgamated to a single RRB as Bihar
Gramin Bank w.e.f. 15.10.12 under the sponsorship of UCO Bank.
- In the state of Odisha, Odisha Gramya Bank is formed on
amalgamation of Kalinga Gramya Bank, Neelachal Gramya Bank and
Baitarani Gramya Bank under sponsorship of Indian Overseas Bank w.e.f.
07.01.13.
- In the state of Rajasthan, Jaipur Thar Gramin Bank has been
amalgamated with Marudhara Gramin Bank to form a new entity as
Marudhara Gramin Bank under the sponsorship of State Bank of Bikaner &
Jaipur w.e.f. 25.02.13.
(II) Recapitalisation of RRBs:
Paschim Banga Gramin Bank has been recapitalised during the period
2012-13 to the tune of Rs. 25800 lakh in the ratio of 50% by Government
of India, 35% by Sponsor Bank and 15% by State Government amounting to
Rs. 129.00 crore, Rs. 90.30 crore & Rs. 38.70 crore, respectively.
Thus the total amount of recapitalisation of PBGB at present stood at
Rs. 153.01 crore (Government of India), Rs. 107.11 crore (Sponsor Bank)
& Rs. 45.90 crore (Government of West Bengal). Similarly, Bihar Gramin
Bank had already received amounts of Rs. 107.07 crore (Government of
India), Rs. 74.95 crore (Sponsor Bank) & Rs. 32.12 crore (Government of
Bihar).
Performance of RRBs (Unaudited):
The total number of branches of the Bank''s two sponsored RRBs stood at
487 as on 31.03.2013. The total deposits of two RRBs have increased
from Rs. 4927 crore as on 31st March, 2012 to Rs. 5476 crore as on
31st March, 2013; thereby showing a growth of Rs. 547 crore or 11.15
per cent. The total advances recorded a growth of 23.94 per cent or Rs.
445 crore from Rs. 1859 crore as on 31st March, 2012 to Rs. 2304 crore
as on 31st March, 2013. The C-D ratio of the RRBs improved from 37.74
per cent as on 31st March, 2012 to 42.08 per cent as on 31st March,
2013.
The gross NPAs of the RRBs was Rs. 154 crore as on 31st March,
2013 vis-a-vis Rs. 153 crore as of 31st March, 2012. The gross NPA
ratio, however, reduced from 8.27 per cent as on 31st March, 2012 to
6.67 per cent as of 31st March, 2013. The net non- performing assets
ratio (NNPA) of the RRBs as on 31.03.2013 stood at 3.59 per cent.
Bihar Gramin Bank recorded a net profit of Rs. 41.05 crore after having
wiped out its accumulated losses. Paschim Banga Gramin Bank also
reported a net profit of Rs. 2 crore vis-a-vis the loss incurred over
the previous year.
13. INFORMATION TECHNOLOGY:
After the migration of all its domestic branches into CBS, way back in
March 2010, the Bank has migrated two of its overseas branches in Hong
Kong centre to CBS-Finacle on 4th Feb 2013 successfully. A separate
helpdesk is formed at Head Office for providing continuous support to
Hong Kong users. The Bank is in the process of migrating two other
branches in Singapore centre to CBS shortly.
The Automated Data Flow (ADF) project, is a regulatory project wherein
the MIS data pertaining to the Bank are presented as per formats
finalised by RBI. Automated data flow ensures submission of various
reports to the regulator without any manual intervention from Bank. The
Bank is in the advanced stage of implementation of the project.
Online filing and tracking of loan applications was introduced by the
Bank through its website. Facility for online filing of applications,
MSME scheme and selected retail products are being made available
through Bank''s Website. Customers can submit loan application online
and track status online.
Government pension for the treasuries such as CPAO, Defence, Telecom is
being paid centrally from CPPC Nagpur Branch. Centralised payment of
pension for railways is being explored. Pension for State Govt depts.
are paid from various branches. Payment of West Bengal state tax has
been introduced in GBM (Counter Payment). New Pension Payment Module
has since been implemented.
As an additional safeguard Bank has introduced a second factor
authentication mechanism to login to CBS - Finacle. All staff are now
required to authenticate themselves through finger print based
authentication in addition to their user-id and password to gain access
to Finacle software.
As of 31.03.2013, credentials of around 10,000 users are enrolled under
Biometric authentication covering 1275 branches. 2200 fingerprint
scanner devices delivered and installed in 239 branches. Another 2000
devices are being installed. Integration is completed with Finacle and
has been made operational.
The Bank has implemented Cheque Truncation System (CTS) in NCR, Delhi
from 2007. Later NPCI has expanded the project to Southern States such
as Kerala, Tamilnadu, Karnataka, Andhra Pradesh & Pondicherry. Later
centres like Kolkata, Chandigarh and Ludhiana were also added to the
southern grid. The highlights of CTS implementation in the southern
grid include:
- 17 out of 26 MICR centres across five southern states and Kolkata,
Ludhiana & Chandigarh centres are participating in CTS Southern Grid.
- Out of the remaining 9 MICR centres, 5 centres are ready to be
migrated to CTS and the migration is expected to be completed by 2nd
week of April 2013. Site readiness for remaining 4 centres is
in-process.
- NPCI has initiated CTS implementation in the Western grid. System
Integrator has been identified to implement Grid CTS in the Western
Grid. The project is expected to commence shortly.
The Bank had earlier connected all its branches using point to point
leased line network in order to bring all the branches under CBS. To
take advantage of the fault tolerant architecture offered by Multi
Protocol Label Switching (MPLS) networks, the Bank has moved all its
branches to MPLS network offered by BSNL. In addition to the Finacle
software various other applications such as Video conference system are
extensively used in the Bank using the MPLS network.
The in-house development team of the Bank has developed and deployed
following two application software in production environment during the
year 2012-13:
(1)Online Computer literacy test, first of its kind in the Bank was
successfully conducted on 24.06.2012, as a part of promotion process
from scale III to IV and from scale IV to V. Around 600 candidates
across the country, involving 34 Inland Centers and two Overseas
Centers have taken part in the test. (2) Online PAR Management System:
Online PAR Management System has been successfully implemented for
submission of APAR for all officers. This will enable submission of PAR
(Performance Appraisal Report) online and evaluation online.
14. OPERATIONS & SERVICES:
i) Know Your Customer (KYC) & Anti-Money Laundering (AML):
During the year 2012-13, the Bank continued to focus on strengthening
of KYC compliance and overseeing the Anti-Money Laundering (AML)
activities. During the year, the Bank made System based KYC compliance
through KYC (#) menu in CBS system. The installation of AML software
for daily processing and monitoring of all transactions in the Bank to
generate (a) Suspicious Transaction Reports (STRs) and (b) Cash
Transaction Reports (CTRs) has been streamlined further and the Bank is
able to effectively process and monitor all transactions particularly
through new alerts. CTRs, STRs, CCRs and NIRs had been submitted
regularly to FIU-IND, New Delhi.
ii) Customer Service:
Towards improving the Customer Service in the Bank, dedicated branches
were identified for exchange of soiled notes and distribution of coins.
Further, an independent RTGS-NEFT Cell has been created at Mumbai. The
Bank continues to be committed in maintaining best customer service and
keeps on aligning its practices in line with customer expectations,
through continued process of review and evaluation.
The executives of the Bank, during the year 2012-13, interacted with
the customers of the Bank at frequent intervals of different centres
across the country at all tiers viz. Head Office, Circle Office, Zonal
Office and branches through meetings of different Committees consisting
of Customer Members, to have complete feedback and understanding of
needs and grievances of the customers of the Bank. The meetings of
Standing Committee on Customer Service at Corporate level of the Bank
under the chairmanship of Executive Director were held as per schedule
and were attended by Senior Executives of the Bank as well as customer
representatives. Apart from this, Nodal Officers had been appointed at
all the Zonal Offices to take care of customer grievances. Through
adoption of effective grievance redressal mechanism the Bank was able
to redress more number of grievances during this fiscal year than the
previous one.
Transparency had been maintained by the Bank by hosting on Bank''s
website the documents relating to (i) Policy on Customer Grievance
Redressal, (ii) Cheque Collection, (iii) Compensation, (iv) Collection
of dues and repossession of security.
iii) Right to Information (RTI) Act:
In terms of Right to Information (RT) Act, Bank''s commitments towards
customers are well defined and published in the Bank''s website. The
Bank is in continuous process of strengthening of review under Right to
Information (RT) Act. The Bank had designated Central and Zonal Nodal
Officers to cater to the queries of different customers and other
stakeholders regarding RTI matters. Names and contact details of nodal
offiers are mentioned in the Bank''s website. As per RTI Act 2005, the
Bank has appointed 41 PIOs and APIOs, one at each Zonal Office level
and two CPIOs and two CAPIOs at Head Office level to facilitate
disposal of RTI applications seeking information and one Appellate
Authority at each Circle Office and Head Office for disposal of appeals
filed under their jurisdiction.
iv) New Pension Scheme (NPS) :
The corporate model of New Pension Scheme (NPS) has been
operationalised by enabling the Personnel Services Department of the
Bank to bring all Bank''s new recruits (since 01.04.2010) into the New
Pension Scheme fold. The Bank has been registered as POP with PFRDA
under ''Swavalamban'' (New Pension Scheme). Further, the Bank has been
registered as a Corporate with PFRDA under New Pension Scheme as also
with NSDL as Oversight Office.
v) Other Activities:
The Bank has successfully completed CTS - Southern Grid implementation
in the year 2012-13. The Bank has also received authorization
(Accredition by Govt. of India) for CPPC, Nagpur to act as a Single
Window System for Payment/Disbursement of Central Civil Pension,
Defence Pension, Postal and Telecom Pension. Further, tax collection of
Govt. of West Bengal, both online and offline have been made
GRIPS-enabled.
The Bank has started two new Clearing Houses at Mecheda and Barakar
centres. During the year 2012-13, all 72 Currency Chests branches of
the Bank have been made Bio-metric Access Control- enabled. The Bank
has also installed 174 Account vending machines in line with RBI
guidelines for catering to the general needs of the public. Further,
high capacity note sorting machines were also installed in all 72
Currency Chest branches and also at 60 identified non-Currency Chest
branches having daily cash receipt of Rs. 50 lakh and above.
15. CORPORATE COMMUNICATION:
With the aim of bringing about a quantum shift in the field of customer
communications, the Bank, under the supervision of its Corporate
Communications Department had taken up a number of initiatives through
various channels namely electronic media, print media, internet,
sponsorship, outdoor media, etc.
Publicity Campaigns:
- Campaigns in Print Media:
During the year 2012-13 vigorous publicity campaigns were launched in
leading national and regional newspapers for mobilization of CASA
deposits, Festival Bonanza scheme on Home & Car loans, launching of
Customer-centric products such as UCO Double, UCO Dhan Varsha, UCO
Triple One, UCO Triple Nine, UCO Triple Two, UCO Kisan Rupay Card, UCO
Tax Saver Deposit Scheme, UCO 66, UCO CARE - Current Account. The Bank
also conducted extensive publicity campaign on Gold Loan and e-banking
products.
- Radio Jingles and Television Commercials:
In order to boost Bank''s brand image, and to propagate product
information among the target customers, radio jingles were released
through different radio stations. Intensive publicity on e-banking
products was also done by way of television commercials on various news
channels. Our bank received good publicity mileage out of all these
publicity campaigns carried throughout the year.
- Rural Publicity:
As the Bank has a good number of branches in rural area, Corporate
Communications Department through different Zonal Offices has conducted
rural publicity campaign across the country. In order to extract
maximum publicity mileage, the Bank has also participated in various
rural fairs and festivals as sponsor.
- Customer Meets:
Since customers are of paramount importance to the Bank, a number of
customer meets have been organized from time-to- time by all Zones and
Circles. Corporate Communications Department at Head Office took the
initiative to co-ordinate with all Zones and Circles for arrangement of
such meets at regular intervals.
- Awards:
Internal Communication plays a vital role in transmitting messages in
respect of Bank''s overall functioning and other relevant information
among employees of the Bank. The Bank''s house journal, UCO Tower has
been playing a key role in this aspect. The house journal has
established itself as one of the effective conduits for spreading
Bank''s Vision and Mission, as is evident from the fact that it has been
awarded the Certificate of Merit at ''ICE Awards'' (In-House
Communication Excellence), 2012 initiated by Shailaja Nair Foundation,
Mumbai.
- Celebration of 71st Foundation Day:
In keeping with the tradition, the Bank during the year celebrated its
71st Foundation Day with the main function held at Science City
Auditorium, Kolkata. To mark the occasion, the Bank planned to reach
out to citizens at large and undertook some new customer centric
initiatives. The Bank''s branded tableau was flagged off from Head
Office and it moved across different places in and around Kolkata
touching designated branches. Pamphlets on CASA, Retail loans with the
prime focus on educating the people on Bank''s different products and
services were distributed from the tableau. On the same day, towards
fulfilling social commitments, the Bank handed over education kits to
70 specially abled children. To mark the anniversary celebration, the
Bank made a donation of Rs. 10 lac in favour of Ramkrishna Sarada
Mission Sister Nivedita Girls'' School for underprivileged girl
children.
16. CORPORATE SOCIAL RESPONSIBILITY:
The Bank believes that carrying out Corporate Social Responsibility
(CSR) helps in tangible value-creation. Moreover, CSR, creates a
positive image in the society and inculcates essence of loyalty for the
Bank among a cross-section of countrymen.
In tune with this perception, the Bank made separate donations for
deserving as well as noble causes during the year.
- An amount of Rs. 4.90 lakh to Shivaji University, Kolhapur,
Maharashtra under environment protection category for installation of
Solar Plant Device.
- Rs. 2 lakh to Ramakrishna Math, Nattarampalli, Vellore, Tamilnadu
for construction of building for an orphanage.
- Rs. 10 lakh to Mahaveer Viklang Sahayata Samity, Jaipur for helping
the physically challenged.
- To facilitate education & women empowerment a sum of Rs. 10 lakh
was donated to Ramakrishna Mission Sister Nivedita Girls'' School.
- Rs. 6 lakh to Rajiv Gandhi Foundation, New Delhi for purchasing
vehicles with disabled-friendly attachment.
- Rs. 10 lakh was extended to Chief Minister''s Relief Fund, Sikkim
for assistance during natural calamity.
- Under health care category Thalassaemia Society of India was
provided with Bank''s donation of Rs. 6 lakh for treatment of
Thalassaemic children belonging to BPL category.
- A van costing Rs. 7.90 lakh was donated to Disha Foundation, Jaipur
for the physically and mentally retarded.
- Rs. 5.00 lakhs as donation was awarded to Kharda Janakalyan
Rognirnoy Kendra, Kharda for running a diagnostic clinic for the weaker
sections.
17. HUMAN RESOURCE MANAGEMENT:
MANPOWER
The total Staff Strength of the Bank as on 31st March, 2013 stood at
24,201, including 106 employees serving overseas, 14 of which are
expatriate officers. The total domestic staff strength of 24,095
comprises of 10,807 Officers, 8,768 Clerks and 4,520 Subordinate staff.
The percentage of Scheduled castes (4809) and Scheduled Tribes (1355)
in the total domestic staff strength is 25.58. Besides there are 1759
OBC employees in service of the Bank at the end of FY 12-13 and 1192
employees belong to Minority Communities. Out of the total work force
16.16 percent constitutes women employees as of March, 2013 compared to
14.33 percent in 2012.
During the year 2012-13 initiatives were taken by the Bank for
development of SCs, STs, OBCs, Persons with Disabilities, Ex-
Servicemen and Women; and pre-promotion/recruitment trainings were
imparted to SC/ST candidates as per Government of India directives.
RECRUITMENT
A total number of 1791 Officers have been recruited during the year
2012-13 including 258 SCs, 105 STs and 477 OBCs. 575 of these Officers
are Women, 26 are Persons with Disabilities and 82 belong to Minority
Communities. 592 Clerks have also been recruited during the year
2012-13. These include 87 SCs, 53 STs and 167 OBCs, 30 Ex-Servicemen,
35 persons with Disabilities and 27 persons belong to Minority
Communities. Moreover, the Bank has also initiated the process of
recruitment for 1000 Clerks, 1000 Probationary Officers and 200
Specialist officers during the year 2013-14.
PROMOTIONS
During the year, 4 Executives were promoted to Top Executive Grade
scale VII, 14 Executives were promoted from Scale V to Top Executive
Grade Scale VI and 36 Executives were promoted from Scale IV to Scale
V. Besides, 229 Officers were promoted to Scale IV, 675 to Scale III
and 357 to Scale II. In addition, under specialist category, 8 Officers
were promoted from Scale III to Scale IV, 27 Officers were promoted to
Scale III and 19 Officers to Scale II. Further, during the period, 690
Clerical Staff were promoted to Officers Cadre and 257 Sub-ordinate
Staff were promoted to Clerical Cadre.
INDUSTRIAL RELATIONS
During the period, the Industrial Relations climate in the Bank
remained healthy and cordial between the Management and the
Unions/Associations. IR meetings and discussions were held with
Unions/Associations at periodic intervals sharing co-operative attitude
and mutual respect during the financial year 2012-13.
PERSONNEL SERVICES
During the year 2012-13, several new Schemes were Implemented by the
Bank under Staff Welfare Scheme which include
- Assistance by way of reimbursement of expenses on account of Health
Check-up enhanced to Rs. 2,500/- from Rs. 1,500/- for employees and
Rs. 1,500/- from Rs. 1,000/- for spouse - every year instead of earlier
rule of once in two years. For employees, age criterion has also been
reduced to 30 from 40.
- Coverage under Group Mediclaim Insurance Scheme for Retired
Employees with Spouse has been enhanced from Rs. 1 lac to Rs. 2 lac on
floater basis.
- Three Holiday Homes for Inservice as well as Retired employees have
been started at SHIRDI, TIRUPATI and MUSSOORIE.
- CANTEEN SUBSIDY @ Rs. 250/- per employee per month is being
disbursed to all employees across the country from January 2013.
- Reimbursement of further Hospitalization Expenses against uncovered
Hospitalization Bills with a maximum limit of Rs.
25,000/- in case of Retired employees & Rs. 10,000/- in case of Spouse
of Retired employees in connection with treatment of Heart Surgery,
Brain Tumor, Kidney failure, Cancer & major Surgery in the event of any
accident has been initiated.
- Lump sum Financial Assistance of Rs. 5,000/- every month to the
Pre-1986 Retirees has been introduced.
- Bank started Centralized payment of pension to the staff pensioners
w.e.f. November, 2012 through the Staff Pension Processing Centre of
Personnel Service Department.
TRAINING
During the financial year 2012-13, more emphasis was given on training
by the Bank. A separate vertical as Training Department had been
created. One of the major highlights, during the year 2012-13, was
delegation of authority and association of Circle and Zonal Offices in
training of staff members upto Scale-III. The focus was on locational
training to be conducted at branch level. Further, Camp Training was
also given focus to be conducted at convenient centres to be decided by
the Circe Heads. The Board of Directors has approved the decision for
setting up of five new Regional Training Centres by the Bank.
During the year 2012-13, 8167 officers and 750 clerks were given
class-room training. 263 Executives & Officers were nominated for
different training at apex Training Institutions of India like NIBM,
CAB, BIRD, IIBF, IIBM, NIRD, IDRBT, IIM Indore & IIM Lucknow, etc. 6
Officers were sent for overseas training & exposure. 5427 Officers,
1373 Clerks & 210 Sub-staff (Total 7010) have been imparted need-based
training locationally. Training on Specialized Subjects like vigilance
on public procurement, Disciplinary Proceedings, Security Officers,
Forex Business, Inspecting Officers have been organized at Central
Staff College, Kolkata. Managers Handbook and Handbook on Retail Loan
Products have been published by CSC, Kolkata & RTC. Bhubaneswar.
Incompany Training Programmes have been organized for Executives at
ASCI-Hyderabad & IIM - Indore, for Faculty Members at NIBM-Pune , for
Branch Heads at IIBM-Guwahati & NIRD-Hyderabad.
18. AUDIT & INSPECTION:
The Bank has a well-established Audit and Inspection Department that
examines adherence to the Systems and Procedures. Bank has a
comprehensive Inspection and Audit Policy for undertaking Internal
Inspections, Concurrent Audit, Revenue Audit, Risk Based Internal
Audit, and Information System Audit. The guidelines received on various
issues of Internal Control from Reserve Bank of India, Government of
India, Board and Audit Committee of the Board have become part of the
internal control system for better risk management.
During the year 2012-13 the Bank has given focussed attention to close
overdue inspection reports outstanding for more than 3 months by
rectification of major & other irregularities. As a result of impetus
given by the Bank there was no Annual Financial Inspection Report
pending for closure as on 31st March, 2013. The regular branch
inspection report is the most comprehensive feed-back to the management
about compliance of the Bank''s systems and procedure and guidelines at
operational level.
One of the major achievements during 2012-13 was that out of total
revenue leakage of Rs. 46.60crore, Rs. 40.98 crore was recovered on the
spot by internal/external auditors concerned.
19. VIGILANCE:
The Bank believes in adopting a Positive Approach in Vigilance
Administration. During the year, emphasis was given to sensitizing the
staff, mainly the new entrants with Vigilance measures in day to day
operations. For this a number of Workshops & Training programmes were
held at various centres.
With consistent follow up, the number of RDA cases reduced considerably
except in matters where proceedings have been stopped by the
intervention of Court/Police.
The earlier CVO, completed his tenure on 2nd November 2012 and a new
CVO has been appointed. He took over on 18th February 2013.
There was a review of Vigilance functioning of the Bank by CVC in the
month of March 2013.
20. MANAGEMENT AUDIT AND HR AUDIT:
In terms of the extant guidelines of the Bank, all the Corporate
Departments, Circles Offices, Zonal Offices and Field Inspectorates are
put to Management Audit once in every two years. The Bank has
successfully conducted Management Audit in 18 Zonal Offices, 2 Circle
Offices, 7 Field Inspectorates and one Corporate Department during the
period from 01/04/2012 to 31/03/2013. The Reports have been closed in
all eligible cases after getting the irregularities rectified by the
Authorities concerned.
A snap Audit of the Transfer Policy being handled by HRM was conducted
as instructed by the Competent Authority. H R Audit(assessment) of 8
Zonal Offices and 4 Circle Offices were conducted.
21. COMPLIANCE OF OFFICIAL LANGUAGE POLICY:
The Bank has taken proactive steps to implement the Official Language
Policy of Govt. of India and has meticulously taken steps to comply
with the provisions of Official Languages Act and the Rules made
there-under. The Bank has also taken appropriate follow-up action to
implement the directives as contained in the Annual programme with
regard to the use of Official Language Hindi issued by Government of
India, Ministry of Home Affairs, Dept. of Official Language and also
endeavoured to achieve various targets prescribed in the said
programme. Bank has also given preferred attention to comply with the
instructions of Financial Services Department, Ministry of Finance and
Reserve Bank of India regarding the use of Hindi in official work.
Sixty Nine Hindi Workshops were organised by the Bank for the Officers
and employees to motivate them to do their work in Hindi. Total 1451
Officers / employees were trained through these Hindi Workshops. In
view of the directives of Govt. of India to promote ''UNICODE''
application on all the computers, a session was allotted in these
workshops to acquaint all Officers and employees with its application
and activation.
481 branches were inspected by Official Language Officers posted at
different Zonal offices, 3 Circle Offices, 9 Zonal offices.
One Regional Training Centre and four departments of Head Office were
also inspected by Official Language Officers posted at Head Office
during the period under review to evaluate the performance in the area
as
of implementation of Official Language Policy of Govt. of India.
Necessary remedial measures were also taken to remove the deficiencies
observed in such inspections.
During the period under review a National Seminar on the subject
"Rajbhasha Implementation - Role of the executives" was successfully
organized by the Bank on 17th May, 2012 in Kolkata. Prizes were also
distributed to the winner of the Inter-bank and Intra-bank Hindi Essay
Writing Competition organized by UCO Bank on the subject "Rajbhasha
Implementation - Role of the executives" in this seminar.
In view of the requirement to accelerate the pace of implementation and
effective compliance of Official Language Policy of Govt. of India in
the Bankm 17 more Official Language Officers were recruited during the
period under review.
On the occasion of "HINDI MONTH" celebration at Head Office a grand
cultural evening was organized by the Bank in Science City Auditorium
at Kolkata. Eminent Hindi poets from various cities of the country viz.
Shri Surendra Sharma, Smt. Sita Sagar, Shri Ved Prakash, and Shri
Sampat Saral recited their poems and songs in two sessions in this
programme. Shri Ajoy Roy of Kolkata also presented songs penned by
popular Hindi lyricists and poets. Dr. Amit Kumar Verma and Dr.
Ravindra Kumar Das accompanied him on Tabla & Synthesizers. The
programme was inaugurated by the CMD of the Bank. All the executives of
the Bank posted at Kolkata, Howrah and Salt Lake and a large number of
our valued customers along with their families were present on this
occasion.
Zonal Offices, Jaipur, Raipur, Mumbai, Indore, Jodhpur, Ahmedabad,
Ranchi, Pune and Bhopal have published Hindi e- magazines during the
period under review.
The Bank successfully organised various competitions, rendered
editorial assistance to other Public Sector Banks & Financial
Institutions in conducting ''HINDI UNICODE WORKSHOP'' & ''Hindi workshop''
under the auspices of different TOLIC''s.
Various forms / publicity materials / procedural booklets and report of
Annual General meeting of Shareholders, Manual of Instructions, Minutes
of various Board Committees were prepared in bilingual form. Hindi text
of the materials for our Bank''s Website was also prepared. Sufficient
amount was allocated by the Bank for the purchase of classic literary
Hindi books, dictionaries, technical glossaries, Hindi books on
computer/banking, etc. and famous literary books in regional languages
written by renowned litterateurs.
In view of effective monitoring of the work with regard to the use of
Hindi in official work, the position of our Bank was vividly reviewed
in the meetings of Apex Official Language Implementation Committee of
the Bank.
"Hindi Month", "Hindi Fortnight", "Hindi Week" was celebrated
enthusiastically at Head Office as well as Zonal Offices, Central Staff
College, Regional Training Centres and Branches.
During the period under review Zonal Office, Patna and Zonal Office,
Jalandhar were awarded 1st Prize / Shield and Zonal Office, Ranchi and
Zonal Office, Dharamshala were awarded 2nd Prize respectively by TOLIC
Patna, Jalandhar, Ranchi and Dharmashala.
Jt. Director (O.L.), Govt. of India, Ministry of Finance, Financial
Services Dept., New Delhi inspected the Bank''s Head Office on 11th
July, 2012 in respect of implementation of Official Language Policy in
the Bank and expressed his satisfaction to observe the steps taken by
the Bank for augmenting the use of Official Language Hindi in official
work. In addition, on 18th July, 2012 the Dy. Director (Imp.), Govt. of
India, Ministry of Home Affairs, Regional Implementation Office (East),
Kolkata also reviewed the position of compliance of various aspects of
the Official Languages Act and Official Languages Rules at the Head
Office of the Bank on the basis of the Quarterly Progress Report for
the quarter ended 31st March, 2012 submitted to them.
22. COMPLIANCE:
The Bank has emphasized on compliance issues as mandated by RBI. The
Bank had ensured the level of customer service, functions and rules of
deposit, advance, KYC/AML, other services, prompt submission of
statutory/regulatory reports, information and data asked by RBI, GOI,
etc. through a strict compliance system. Compliance Policy has been
revised, reviewed and the same is being placed for approval of the
Board of Directors in its meeting scheduled to be held on 10.4.2013.
The revised Compliance Policy has been prepared incorporating necessary
changes to prevent breaches in the areas of compliance functions.
Compliance testing of operations at branches was introduced during the
year 2011-12 to render deficiencies observed and rectified them on the
spot to improve operational efficiency. Critical issues were reported
and discussed at the appropriate level to enhance efficacy of the
system.
23. Legal Matters
The Bank had delivered legal advice on various matters referred to it
by all sections of stakeholders. The Bank had focused on the
expeditious disposal of such matters for enhancing the efficiency of
operational tiers. To ensure this, a continuous Monitoring System was
in place. The Bank had extended its legal service to cater to the need
of recovery issues, personal and industrial disputes filed by different
sources, premises matters, legal audits, documentations, tribunal
requirements, Ombudsman Compliance, etc. Empanelment of good lawyers
was done successfully to set and maintain benchmark for legal issues.
24. FUTURE PLAN:
During the year 2013-14, the Bank will further strengthen its retail
base, both on liability and assets sides. The Bank shall continue to
focus on retail advances such as, ''UCO Home'', ''UCO CAR'', ''UCO
Education'' and ''UCO Gold Loan''. Besides, the Bank will continue to lay
emphasis on Priority Sector Advances with focus on Direct Agriculture
and MSE. The endeavour of the Bank shall be to reduce its dependence on
bulk deposits and advances further during the course of the current
year 2013-14. The Bank will be strengthening its delivery channels by
opening at least 400 branches to touch the Bank''s branch network to
3000 branches by the end of March, 2014 as also to double the number of
ATM which will increase the Bank''s alternative delivery channel
network.
The Bank''s focus on customer acquisition will further be increased by
targeting at least 40 lakh new CASA accounts by March, 2014.
To sum up, the year 2013-14 shall be the ''Retail Business Year'', second
time in succession.
25. BOARD OF DIRECTORS:
Corporate Governance
The Bank firmly believes in and has consistently practiced good
corporate governance which is woven around its core values of
transparency, professionalism and accountability. By constantly
focusing on these aspects in its day-to-day operations, the Bank
strives to enhance shareholders'' value. The Bank being committed to the
principles of good governance, its Board of Directors has formed
various committees of the Board to monitor every aspect of Bank''s
business. The systems and business processes of the Bank are
continuously reviewed at various levels for identifying and
strengthening areas of weaknesses, if any. The Directors of the Bank
believe that good governance is the key to earning trust, loyalty and
goodwill of clients, business associates, employees and investors and
respect from the society at large.
Changes in the Board of Directors
Smt. Uma Shankar served as the RBI nominee Director in the Board from
30.07.2010 to 06.09.2012. With effect from 06.09.2012, Shri B.P.
Vijayendra has been appointed as RBI nominee Director.
Shri R. A. Sharma served as the Workman Employees Director in the Board
from 15.02.2010 to 14.02.2013. With effect from 15.02.2013, Shri Partha
Chanda has been appointed as Workman Employees Director.
Shri Diptendra Narayan Thakur was appointed as Officers'' employee
Director in the Board w.e.f.12.12.2012.
Meetings of the Board of Directors
During the financial year 2012-13, the Bank had 14 meetings of the
Board of Directors, 19 meetings of the Management Committee of the
Board, 8 meetings of the Audit Committee of the Board. The number of
meetings of various other Committees of the Board held during the year
2012-13 is given below:
Sl
No. Name of the Committee No. of Meetings held
1. Risk Management Committee 3
2. Shareholders'' Grievance
Redressal Committee 1
3. Share Transfer Committee 8
4. Special Committee for
Monitoring Large-value Frauds 3
5. Customer Service Committee
of the Board 4
6. Committee on HR-related
issuesof the Bank 2
7. Nomination Committee of the Board -
8. Remuneration Committee of the Board 1
9. Committee of the Board on IT Management 4
Statement of Directors'' Responsibilities
The Directors confirm that in the preparation of the annual accounts
for the year ended March 31, 2013, the applicable accounting standards
have been followed along with proper explanation relating to material
departures, if any.The accounting policies framed in accordance with
the guidelines of Reserve Bank of India, were consistently applied.
Reasonable and prudent judgements and estimates were made so as to give
a true and fair view of the state of affairs of the Bank at the end of
the financial year and of the profit of the Bank for the year ended
March 31, 2013. Proper and sufficient care was taken for the
maintenance of adequate accounting records in accordance with the
provisions of applicable laws governing banks in India; and the
accounts have been prepared on an on-going basis.
Acknowledgements
The Board of Directors places on record its deep appreciation of the
contributions made to the deliberations of the Board by outgoing
Directors namely, Smt. Uma Shankar,and Shri R.A.Sharma. The Board would
like to welcome the new Directors and looks forward to their valuable
inputs towards growth of the Bank. The Directors remain thankful to the
Government of India, Reserve Bank of India and other regulatory
authorities for their support and valuable guidance. The Board also
thanks other Financial Institutions and correspondent banks for their
sincere co-operation. The Directors express their gratitude to the
loyal customers for their trust and continuous patronage of the Bank.
The Board also thanks the Staff Unions/Associations and shareholders of
the Bank for the support extended by them. The Directors place on
record their deep appreciation of the dedication shown by each employee
of the Bank due to which the Bank could achieve so many milestones.
For and on behalf of Board of Directors,
Dated: 07th May, 2013 (Arun Kaul)
Place: Kolkata Chairman & Managing Director
Mar 31, 2012
1. BUSINESS PROFILE:
During the year 2011-12, the Bank showed a respectable growth in all
the business parameters. Advances figures had shown a steady upward
growth with global advances growing by 16.85 per cent during the year
2011-12 to reach the level of Rs 117504 crore as of March, 2012 from Rs
100561 crore as of March, 2011. Global deposit had also shown a
positive growth of 6.01per cent to reach the level of Rs 154003 crore as
of March, 2012 from Rs 145278 crore as of March, 2011. Global business
had registered the volume of Rs 271507 crore as of March, 2012 from Rs
245839 crore as of March, 2011 by securing a respectable growth of
10.44per cent.
FY 11 FY 12 GROWTH
SL
NO. Particulars (InRs.Cr) Absolute(PER CENT)
III GLOBAL
(i) Deposits 145278 154003 8725 6.01
(ii) Advances 100561 117504 16943 16.85
(iii)Total Business 245839 271507 25668 10.44
In case of domestic advances also bank had shown a steady growth of
15.65per cent to reach the level of Rs 107840 crore by March, 2012.
Domestic deposit grew by 4.11per cent and reached the level of Rs 142017
crore by March, 2012. Domestic business also registered a respectable
growth of 8.79per cent to reach the level of Rs 249857 crore as of
March, 2012.
FY 11 FY 12 GROWTH
SL NO. Particulars (In Rs.Cr) Absolute(PER CENT)
I DOMESTIC
(i) Deposits 136415 142017 5602 4.11
(ii)Advances 93246 107840 14594 15.65
(iii)Total Business 229661 249857 20196 8.79
During the year 2011-12, the overseas centres of the Bank performed
exceedingly well, with growth in deposits and advances at 35.24 per
cent and 32.11 per cent, respectively to reach the level of Rs 11986
crore and Rs 9664 crore, respectively. Overseas business had shown a
sharp upward trend to reach the level of Rs 21650 crore and recorded a
33.82 per cent growth during the financial year 2011-12.
FY 11 FY 12 GROWTH
SL NO. Particulars (InRs.Cr) Absolute (PER CENT)
II OVERSEAS
(i) Deposits 8863 11986 3123 35.24
(ii)Advances 7315 9664 2349 32.11
(iii)Total Business 16178 21650 5472 33.82
Per branch domestic business of the Bank has reached Rs 105 crore as of
March, 2012. Per branch domestic deposits has reached Rs 59 crore in the
year 2011-12. Per branch advances figure has improved from Rs 42 crore
to Rs 45 crore during the year 2011-12.
2. PROFITABILITY:
During the year 2011-12, the Bank had shown a higher growth in net
profit, which increased from Rs 907 crore in March, 2011 to Rs 1109 crore
in March, 2012 by recording a growth of 22.27 per cent over the
previous financial year. The net profit in the year 2011-12 was highest
in the history of the Bank. The reason behind the respectable
performance was basically the increase in interest income from Rs 11371
crore in March, 2011 to Rs 14632 crore in March, 2012 by recording a
Y-O-Y growth of 28.68 per cent. Operating profit of the Bank had
increased from Rs 2695 crore in March, 2011 to 2811 crore in March,
2012, thereby registering a y-o-y growth of 4.30 per cent. The
declining Y-O-Y growth figure of operating profit was predominantly due
to 42.57 per cent increase in interest paid during FY 11-12.
Important Ratios:
Sr Ratios Mar'2011 March, 2012
1 Return on Assets (per cent) 0.66 0.69
2 Cost to Income Ratio (per cent) 43.51 42.24
3 Book Value per Share (Rs.) 83.16 94.72
4 Earnings per Share (Rs.) 14.29 15.02
5 Net Interest Margin (per cent) 3.07 2.77
3. OPERATIONAL PERFORMANCE:
3.1. Investment:
Gross investment of the Bank has increased from Rs 43124 crore in March,
2011 to Rs 46185 crore in March, 2012 by registering a growth of 7 per
cent in the year 2011-12. The Domestic investments (gross) of the Bank
during the year 2011-12 grew by 8.82 per cent from Rs 41388 crore as of
31.03.2011 to Rs 45038 crore as of 31.03.2012. SLR investment (domestic)
increased by 15 per cent during the year 2011-12 by registering the
level of Rs 40102 crore in March,12 from Rs 34963 crore in March, 2011.
Non-SLR investment (domestic) declined by 23 per cent from Rs 6425 crore
in March, 2011 to Rs 4936 crore in March, 2012. Total income has also
registered a reasonably good growth of 15.43per cent over the previous
financial year to reach the level of Rs 3474 crore in March, 2012 from Rs
3009 crore in March,2011. Net profit on sale of investment (domestic)
had shown a significant increase of (more than doubled) 115per cent by
recording a level of Rs 191 crore in March, 2012 from Rs 89 crore in
March, 2011.
3.2. Retail and CASA:
The Bank put considerable emphasis on strengthening its retail
portfolio during the year 2011-12. There had been several initiatives
to improve bank's liability portfolio like several CASA and Total
Freedom campaigns throughout the country, launch of different deposit
schemes, promoting salary account UCO Suvidha, etc. Attractive
deposit schemes like Rd scheme UCO Sowbhagya, TD scheme UCO
Vasanth Bonanza were launched at the later part of 2011-12 to boost
the deposit volumes.
In order to improve the asset portfolio of the Bank and improve credit
delivery to the retail customers by cutting down delays in processing
of Retail Loan Applications as also to serve customer in a better
manner, the bank had taken several initiatives during the year 2011-12.
The Bank had opened 13 new Retail Loan Hubs in the year 2011-12, which
takes the total number of RLHs to 39 as of March, 2012 from 26 as of
March, 2011. Several existing schemes meant for retail customers
namely, UCO Home Loan, UCO Trader, UCO Education, UCO Pension, etc.,
had been modified to remain competitive in the market as well as to
suit niche clientele. Gold Loan scheme had been modified and new UCO
Gold Loan Scheme had been launched for financing Retail Asset Products
on 31st January, 2012 under both Priority and Non-Priority Sectors at
all branches. Online application facility launched since 11th August,
2011 for UCO Home and Car Loans in addition to existing facility for
UCO Education Loan.
Banc assurance:
In order to facilitate marketing of Mutual Fund Investments by the
Branches through the Systematic Investment Plan (SIP) route, auto debit
facility has been introduced on 16th January, 2012 in tie up with Bill
Desk as our Aggregator.
The Bank during the year 2011-12, focused on marketing more
traditional products rather than the single premium products to
increase the fee based income.
3.3. Mid Corporate:
The Bank had given special attention to SME advances and accordingly a
dedicated channel; SME Loan Hubs were launched at SME concentrated
areas. During FY 2011-12, the Bank had opened 12 SME Loan Hubs at
Ahmedabad, Bangalore, Bhubaneswar, Chandigarh, Chennai, Hyderabad,
Jaipur, Kolkata, Mumbai, Nagpur, New Delhi and Raipur, under Mid
Corporate supervision. These loan processing Hubs take up proposals in
the range of Rs 25 lac to Rs 25 crore. Total loan sanctioned by the SME
Hubs were Rs 1512 crore including renewal and enhancement as on
31.03.2012.
3.4. Agriculture & Rural business: Priority Sector Lending
During the year 2011-12, the priority sector advances of the Bank stood
at Rs 28301 crore constituting thereby 33.56 per cent of Adjusted Net
Bank Credit (ANBC).
Agricultural Advances
The total agricultural advances of the Bank stood at Rs 9653 crore
constituting 11.45 per cent of ANBC. Direct agricultural credit stood
at Rs 7632 crore constituting 9.05 per cent of ANBC and Indirect
agriculture credit stood at Rs 2021 crore constituting 2.40 per cent of
ANBC.
Advances to Weaker Sections
Advances to Weaker Sections stood at Rs 7861 crore as of 31st March,
2012, with percentage to ANBC being 9.32.
Medium, Small & Micro Enterprises (MSME) and Micro & Small Enterprises
(MSE)
The Bank had recorded a phenomenal growth in these sections with
advances under MSME and Micro & Small Enterprises (MSE) standing at Rs
17860 crore and Rs 13437 crore, respectively with growth rates of 20.76
per cent and 12.22 per cent, respectively over the previous financial
year.
Minority Community Advances
Total Minority Community advances of the Bank stood at Rs 4113 crore
constituting 4.88 per cent of ANBC.
Other Developments
The Bank had organized several credit camps throughout the country to
boost advances related to agriculture business. During the year 2011-12
the Bank had entered into MOU with different organizations like Ashok
Leyland, Bajaj Auto Ltd., National Collateral Management Services Ltd.,
etc. to lend commercial vehicles and finance farmers against their
Storage receipts. The Bank had put serious emphasis on Govt. sponsored
schemes like PMEGP (Prime Minister Employment Guarantee Programme),
SGSY (Swarnajayanti Gram Swarozgar Yojana), SJSRY (Swarnajayanti
Shahari Rozgar Yojana), PMRY (Prime Minister Rozgar Yojana), SHG (Self
Help Group), JLG (Joint Liability Groups), etc. Gold loan scheme was
also revised and launched with a competitive structure to boost finance
under Priority Sector and Agriculture Business. Famers had been
facilitated with credit facilities through tie-up arrangement with
sugar companies.
3.5. Financial Inclusion:
In compliance with the directions given by the Government of India and
Reserve Bank of India, the Bank had taken up implementation of the
project under Financial Inclusion'. The Bank had adopted 3-way
Approach to implement the Financial Inclusion Programme which
constitutes (i) Brick & Mortar branches, (ii) UCO Bank on Wheels
(Mobile Van) and (iii) Business Correspondent (BC) Model using
ICT-based financial inclusion.
The Bank had achieved a rare milestone in the field of Financial
Inclusion. During the year 2011-12, the target for the Bank was to
cover 1703 unbanked villages having a population of 2000 plus each. The
Bank had covered all the villages within the stipulated time. In
addition to that the bank has covered 107 villages with a population of
1000-2000 each. Thus the Bank has covered 1810 number of villages; and
639149 number of no -frill accounts were opened in these villages.
The Bank has 24 UCO Bank on Wheels operating in 18 Zones. Under
ICT based BC Model, 47984 Smart cards had been issued to the customers.
To extend business in the field of Financial Inclusion the Bank had
also opened 62 Ultra Small Branches (UCO MITRA SAKHA) in the unbanked
villages under 11 Zones in compliance with the latest guidelines of
Government of India on Financial Inclusion.
3.6. Recovery:
Financial year 2011-12 has been declared as YEAR OF RECOVERY and
there is substantial improvement in Recovery and Up gradation in NPA
accounts during the financial year 2011- 12 over the last year.
(Rs.in Crore)
per cent
Particulars 31.03.2011 31.03.2012 per cent Increase
Cash Recovery 434 658 51.61
Upgradation 226 417 84.51
Total 660 1075 62.88
Recovery made in Written-Off accounts during the year ended 31.03.2012
was Rs 23 crore. Recovery made during the year 2011- 12 through
Compromise settlement is Rs 104 crore comprising of more than 5000
accounts.
The Bank had completed 100per cent system based identification and
collation of NPAs as of the quarter ended 30.09.2011, in compliance
with the directives of Government of India, Ministry of Finance. The
Bank had decided that the Circle Heads would personally monitor all NPA
accounts of Rs 1.00 crore and above under their jurisdiction and Zonal
Heads would personally monitor NPA accounts of Rs 10 lac and above in the
Zone on an on-going' basis. Periodic Monitoring of recovery performance
of Zones/ Circles through VIDEO CONFERENCING had been done throughout
the year.
As on 31.03.2012, 340 cases has been identified as willful defaulters
and reported to CIBIL/RBI as against the corresponding figure of 134 as
on 31.03.2011.
Number of Lok Adalats conducted during the year was 359 from which
recovery of Rs 6.26 crore was achieved; and recovery made through
Special Compromised Settlement Scheme in small loan accounts up to Rs
5.00 lakh was Rs 30.47 crore. The scheme had been further extended up to
31.03.2013, in order to boost up the recovery in small NPA accounts.
SARFAESI action being initiated immediately after the account became
NPA; and as on 31.03.2012, total recovery made through SARFAESI action
is Rs 210 crore as against Rs 108 crore during 2010-11.
4. BOLSTERING ACTIVITIES:
4.1. Risk Management:
During the year 2011-12 the Bank had put serious efforts to take
several new initiatives under the guidelines of Risk Management. Fraud
Risk Management Cell and Centralized Credit Rating System were put in
place to strengthen monitoring system. Individual Borrower wise
Exposure Ceiling based on the Constitution of the Borrowers had been
fixed. Daily Structural Liquidity Report, Mid Office Report & Dynamic
Liquidity Report were introduced and were being placed to the Top
Management as per schedule. Computation of market risk on the trading
book on a daily basis had been done successfully. Training on CIBIL for
all the nodal officers in the Circle level had been provided to improve
the data acceptance /pulling.
Capital Adequacy Basel II)
Particulars Mar'11 March, 2012
Capital Fund : Amt in Rs.Cr.
I / Tier I 7,012 7,891
I / Tier II 4,266 4,151
Total (Tier I Tier II) 11,278 12,042
Risk Weighted Assets 82,272 97,550
Capital Adequacy Ratio (per cent) 13.71 12.35
Tier I (per cent) 8.52 8.09
Tier II (per cent) 5.19 4.26
4.2. Corporate Communication:
During the year 2011-12, the Bank had taken several unities under
the guidance of Corporate Communications through various media namely
electronic media, print media, internet, publicity material,
sponsorship, outdoor media, etc. Widespread publicity campaigns were
carried out for mobilization of CASA deposits, celebrating Festival
Bonanza Offer, launching of new schemes such as, 'UCO Sunshine
Recurring Deposit Scheme, 'UCO Vasant Bonanza Fixed Deposit', 'UCO
Sowbhagya Recurring Deposit', etc. The Bank also organized "Campaign
for Gold Loan", "Campaign for Advantage UCO - Home Loan and Car Loan"
etc. Payment of State Commercial Tax through the Bank in various
states was one of the achievements during the year 2011-12.
In order to improve the brand name of the Bank, various campaigns were
undertaken for different products through various jingles on different
radio stations. Intensive campaigns were undertaken by the Bank for
popularizing its brand name during the presentation of Union Finance
Budget for the year 2011-12 through Radio jingle and telecast of Bank's
promos on different television channels. Internet advertisement had
been organized through different sites. The Bank had also displayed and
installed banners at the entrance/exit points during various important
activities/happenings like sports, festivals, musical programmes, etc.
in the city of Kolkata to propagate various products and brand name of
the Bank. Sponsorship of Gates, pillars, hoardings to various Puja
Committees, display of 500 banners at various Puja Committees,
distribution of UCO Bank branded T-shirts and caps, etc. had been
arranged to promote different products during Durga Puja.
The Bank had celebrated its 70th foundation day with the main function
held at Science City on 6th January, 2012. A branded canter/tableau was
flagged off from Head Office and roamed for 7 days in Kolkata.
Pamphlets on CASA, Retail loans, Education Loan, Home Loan were also
distributed. School bags, school stationary were given to 69 needy
students on the auspicious occasion of Foundation Day celebration.
4.3. Information Technology:
The Bank had become fully CBS enabled by February, 2011. As of March,
2012, all the new branches, CBOs and extension counters were made CBS
enabled. Total number of 843 branches (100per cent) of Bank sponsored 5
RRB's migrated to CBS. RTGS/NEFT facility extended to Bank sponsored 5
RRBs.
On the technology front the Bank had held its flag high by taking
several new initiatives during the year 2011-12. Some of these
initiatives are stated below.
- Govt. Business Module implemented in all designated branches.
- Two factor Authentication implemented for e-banking customers.
- Anti-Phishing Services implemented to protect customer's data from
going to the wrong hands.
- Collection of State Taxes for West Bengal, Orissa, Delhi, UP made
live. In the previous financial year, Maharashtra's tax collection was
made live.
- Online Payment facility of customs duty is available through
e-Banking.
- Instant Fund Transfer to RD and Loan accounts through e-Banking.
- Bulk salary upload facility for Chhattisgarh Govt. activated.
- New e-products introduced in the Bank in the current year is given
below:
Products Introduction Date
UCO e-trade 25th April, 2011
IMPS (Instant Mobile payment service) 22nd July, 2011
Personalized UCO VISA Debit Card 6th January, 2012
4.4. Operations & Services: Know Your Customer (KYC) & Anti Money
Laundering (AML)
System Based KYC Monitoring has been put in place for KYC compliance
through KYC menu in CBS System. The installation of AML software for
daily processing and monitoring of all transactions in the Bank to
generate (a) Suspicious Transaction Reports (STRs) and (b) Cash
Transaction Reports (CTRs) has been streamlined further and the Bank is
able to effectively process and monitor all transactions particularly
through new alerts. KYC compliance had been achieved to the extent of
98.29per cent . CTRs, STRs, CCRs and NTRs had been submitted regularly
to FIU-IND, New Delhi.
Customer Service
The Bank continues to attach utmost importance to the customer service
and is constantly reviewing its business practices to provide the best
possible services to the customers.
Top executives of the Bank, during the year 2011-12, interacted with
the customers of the Bank at frequent intervals at different centres
across the country to have complete feedback and understanding of the
needs and grievances of the customers of the Bank. Apart from this,
nodal officers had been appointed at all the Zonal Offices to look into
the grievances. Effective steps were taken by the Bank to redress
grievances of the customers; and accordingly, the Bank has brought down
the number of customer complaints to a very low level through its
prompt redressal mechanism. The meeting of the Standing Committee on
Customer Service at corporate level of the Bank was held as per
schedule and was attended by senior executives of the Bank as well as
customer representatives.
Transparency had been maintained by the Bank by hosting at Bank's
website: (1) Policies on Customer Grievance Redressal (2) Cheque
Collection, (3) Compensation & (4) Collection Of Dues and Repossession
Of Security.
Awards passed by Banking Ombudsman were being implemented by the Bank
and as of date no Award is pending for implementation.
Right to Information (RTI) Act
Under the light of Right to Information (RTI) Act Bank's commitments
for our customers are well defined and published in the Bank's website.
The Bank is in continuous process of strengthening of review under
Right to Information (RTI) Act. The Bank had designated central and
zonal nodal officers to cater to the queries of different customers and
other stake holders regarding RTI matters. Names and contact details of
nodal officers are mentioned in the Bank's website. As per RTI Act
2005, the Bank has appointed 36 PIOs and APIOs, one at each Zonal
Office level and two CPIOs and two CAPIOs at Head Office level to
facilitate disposal of RTI applications seeking information and one
Appellate Authority at each Circle Office and Head Office for disposal
of appeals filed under their jurisdiction.
4.5. Credit Monitoring:
The Bank, in order to maintain and improve the quality of assets,
strengthened its Credit Monitoring Mechanism through implementation of
several measures particularly having a Graded system of monitoring of
accounts at various levels by assigning responsibility of monitoring of
accounts based on sanctioned credit limits with the objective to
intensify the credit monitoring and have focused attention to critical
accounts. In addition, the bank has also streamlined the information
system by directly obtaining information from the CBS system for
facilitating prompt decision making at various levels. The Bank has
envisaged creation of a pool of dedicated Executives and Officers, with
track record on handling large borrowal accounts & well versed in
handling of credit at the operational level, for undertaking credit
audits.
The Bank has done a commendable work in getting registered with the
Central Registry of Securitization Asset Reconstruction and Security
Interest of India (CERSAI) particulars of security interest over
property created on or before 31/03/2011. Such registration under
Central Registry Rules 2011 under section 20 (1) of the SARFAESI Act
2002 was permitted by the Central Government with retrospective effect
to be completed within 31.03.2012. The Bank could ensure uploading of
over 1.17 lac particulars of security interest over property created on
or before 31.03.2011.
4.6. Inspection:
The Bank has a well-established Audit and Inspection Department that
examines adherence to the Systems. Bank has a comprehensive Inspection
and Audit Policy for undertaking Internal Inspections, Concurrent
Audit, Revenue Audit, Risk Based Internal Audit, IS (Information
System) Audit and Management Audit. The guidelines received on various
issues of Internal Control from Reserve Bank of India, Government of
India, Board and Audit Committee of the Board have become part of the
internal control system for better risk management.
During the year 2011-12 the Bank had focused attention to close
overdue inspection reports outstanding for more than 3 months by
rectification of major/other irregularities. As a result of impetus
taken by the Bank there was no Annual Financial Inspection Report
pending overdue as on March, 2012. The regular branch inspection report
is the most comprehensive feed-back to the management about compliance
of the Bank's systems and procedure and guidelines at operational
level.
One of the major achievements during the year 2011-12 was the
restoration of original rating of downgraded branches. From December,
2011 to February, 2012 number of Unsatisfactory/ Downgraded branches
has decreased due to regular follow up with Disciplinary
Authorities/Controlling Offices and branches to expedite initiation of
RDA and ensure restoration of original rating of all the downgraded
branches. Similarly, status of unsatisfactory rated branches has been
upgraded through fresh inspection within an interval of 9 months.
4.7. Vigilance:
The Bank has shifted its focus towards preventive vigilance and
participatory vigilance from punitive vigilance. Extensive training
programme had been organized for imparting training of employees at all
level.
A separate 'Investigation Cell' has been carved out to ensure timely
and effective follow up of vigilance complaints. A Fraud Risk
Management Department was also created to monitor and maintain the
centralized data of fraud. Policies regarding field functionaries have
been updated and sensitized to regulatory requirements and guidelines
issued with a view to improve compliance.
Some of the Preventive Vigilance Measures undertaken during the year
2011-12 include:
- All withdrawals of money should be informed to the customers, if
possible, through SMS without delay.
- Every large amount of withdrawal should be verified with supporting
documents. Cheque should be examined with UV & IR rays.
- If post withdrawal balance is negligible, cheque should be
scrutinized.
- No blank cheque should be handed over by the customer to any
unknown person.
7.8.Compliance:
The Bank has emphasized on compliance issues as mandated by RBI. The
Bank had ensured the level of customer service, functions and rules of
deposit, advance, KYC/AML, other services, prompt submission of
statutory/regulatory reports, information and data asked by RBI, GOI,
etc. through a strict compliance system. During the year 2011-12 the
Compliance Policy was revised, reviewed and the same was adopted by
Board of Directors in its meeting held on 11.5.2011. The revised
Compliance Policy incorporating necessary changes to prevent deviations
from standard norms was circularized to all sections of the Bank
thereafter. Compliance testing of operations at branches was introduced
during the year 2011-12 to render deficiencies observed and rectified
them on the spot to improve operational efficiency. Critical issues
were reported and discussed at the appropriate level to enhance
efficacy of the system.
4.9. Legal Matters:
The Bank had delivered legal advice on various matters referred to it
by all sections of stakeholders. The Bank had focused on the
expeditious disposal of such matters for enhancing the efficiency of
operational tiers. To ensure this, a continuous Monitoring System was
in place. The Bank had extended its legal service to cater to the need
of recovery issues, personal and industrial disputes filed by different
sources, premises matters, legal audits, documentations, tribunal
requirements, Ombudsman compliance, etc. Empanelment of good lawyers
was done successfully to set and maintain benchmark for legal issues.
5. HUMAN RESOURCES MANAGEMENT:
Manpower
The total staff strength of the Bank as on 31st March, 2012 stood at
23,259 including 112 employees serving overseas, 15 of which are
expatriate officers. The total domestic staff strength of 23,147
comprises of 9059 Officers, 9171 Clerks and 4917 Subordinate staff.
The percentage of Scheduled castes (4716) and Scheduled Tribes (1179)
in the total domestic staff strength is 25.46. Besides there are 1309
OBC employees in service of the Bank at the end of FY 11-12 and 1148
employees belong to Minority Communities. Out of the total work force
14.33per cent constitutes women employees compared to 13per cent in
2011.
During the year 2011-12 initiatives were taken by the bank for
development of SCs, STs, OBCs, Persons with Disabilities, Ex-
Servicemen and Women; and pre-promotion/recruitment trainings were
imparted to SC/ST candidates as per Government of India directives.
Recruitment
A total number of 768 Officers have been recruited during the year
2011-12 which includes 102 SCs, 51 STs and 216 OBCs. 243 of these
Officers are Women, 11 are Persons with Disabilities and 46 belong to
Minority Communities. 867 Clerks have also been recruited during the
Year 11-12 which include 134 SCs, 117 STs, and 242 OBCs, 52
Ex-Servicemen, 43 Persons with Disabilities and 42 Persons belong to
Minority Communities. Moreover the Bank has also initiated the process
of recruitment for 1000 Clerks and 1100 probationary Officers during
the year 2012-13.
Promotions
During the year, 8 Executives were promoted to Top Executive Grade
Scale VII. 41 Executives were promoted from Scale-V to Top Executive
Grade Scale-VI and 114 Executives were promoted from Scale-IV to
Scale-V. Besides, 130 Officers were promoted to Scale-IV, 574 to
Scale-III and 1040 to Scale- II. In addition, under specialist
category, 2 Officers were promoted from Scale- IV to Scale-V, 3
Officers were promoted from Scale-III to Scale- IV, 12 Officers to
Scale-III and 3 Officers to Scale- II. Further, during the period, 8
Sub-ordinate Staff got promoted to Clerical Cadre under Graduate
channel and process for other 2 channels for promotion to Clerical
Cadre is in progress.
Staff Welfare Measures
During Financial Year 2011-12, the Bank has implemented the following
Staff Welfare Measures:
MODIFICATIONS/CHANGES IN THE EXISTING SCHEMES:
1) UCO Diamond Jubilee Prize Scheme - This scheme has also been
extended to the meritorious wards of permanent subordinate staff
members (including PT Sweepers in scale wages) in recognition of their
merits for securing higher marks in 12th Standard & Graduation level
(10 prizes- i.e. 5 each for 12th Standard & Graduation).
2) Reimbursement of cost of spectacles to the employees in the age
group of 40 years and above - Increase in amount from Rs 500.00 to
Rs 1000.00.
3) Educational assistance to the school/college going dependent
son/daughter of the deceased employees where no compassionate
appointment has been offered - Financial assistance of Rs 5000.00 p.a.
has been extended till completion of the Course of the children.
4) Financial assistance of Rs 5000.00 to the mentally retarded child/ Rs
3000/- to physically challenged child of the employee and one time
assistance for purchase of certain artificial aid/accessories - In
respect of the scheme of financial assistance for physically challenged
& mentally retarded children of employees, the age bar has been
extended from 21 year to 25 years in cases of mentally retarded
children of the employees.
5) Group Med claim Insurance Scheme for in-service employees and their
dependents with M/s United India Insurance Co. Ltd. - Renewed with
enhancement in sum assured from Rs 1.50 lac to Rs 2.00 lac which has
further been enhanced from Rs 2.00 lac to Rs 5.00 lac with effect from
31.03.2012 valid up 31.10.2012.
6) Renewal of Group Mediclaim Insurance Scheme for retired employees
and their spouse with M/s United India Insurance Co. Ltd. - Enhancement
in sum assured from Rs 1 lac to Rs 2 lac - which is effective from
31.03.2012 and valid up to 30.03.2013.
NEW SCHEMES
1) Payment of funeral expenses to the family of retired employees from
the staff welfare fund - Scheme for payment of funeral expenses has
also been extended to family members (spouse/son/daughter) of retired
employees in the event of death of the retired employee up to a maximum
amount of Rs.5000.00 (one time).
2) Bank has decided to initiate a Holiday Home at Shirdi (Maharashtra).
3) Blood Donation & Preliminary Health Check-up camps have been
organized at Zonal Office levels during the foundation week of the bank
beginning with 6th January - Maximum permissible expenses were limited
to Rs 10000.00 for each Zone.
Industrial Relations
During the period, the Industrial Relations climate in the Bank
remained healthy and cordial between the Management and the Unions/
Associations. IR meetings and discussions were held with Unions /
Associations at periodic intervals sharing co- operative attitude and
mutual respect during the financial year 2011-12.
Training
During the year 2011-12, a total number of 8,160 participants
comprising of Officers, Clerks and Sub-staff were trained in the Banks'
Central Staff College and five Regional Training Centres through a
total of 18 channels.
Over and above this, 243 Officers were nominated for specialized
training in Credit, IT, Risk management, Forex, and Leadership
programmes to Institutes such as NIBM, IIBM, IDBRT, BIRD, CAB, NIRD,
and FEDAI. 7 Executives attended overseas training programmes.
6.COMPLIANCE OF OFFICIAL LANGUAGE POLICY:
The Bank has taken proactive steps to implement the Official Language
Policy of Govt. of India and has meticulously taken steps to comply
with the provisions of Official Languages Act and the Rules made
there under. The Bank has also taken appropriate follow-up action to
implement the directives as contained in the Annual programme with
regard to the use of Official Language Hindi issued by Government of
India, Ministry of Home Affairs, Dept. of Official Language and also
endeavored to achieve various targets prescribed in the said
programme. Bank has also given preferred attention to comply with the
instructions of Financial Services Department, Ministry of Finance and
Reserve Bank of India regarding the use of Hindi in official work.
Eighty six Hindi Workshops, including workshops for Chief Officers/
Senior Officers were organized by the Bank for the Officers and
employees to motivate them to do their work in Hindi. Total 1711
Officers / employees were trained through these Hindi Workshops. 472
branches were inspected by Official Language Officers posted at
different Zonal Offices, 10 Zonal Offices and 5 depts. of Head Office
were also inspected by Official Language Officers posted at Head Office
during the period under review to evaluate the performance in the area
of implementation of Official Language Policy of Govt. of India and
necessary remedial measures were also taken to remove the deficiencies
observed in such inspections.
The Bank successfully organized various competitions, rendered
editorial assistance to other Public Sector Banks & Financial
Institutions in conducting 'HINDI UNICODE WORKSHOP' & 'Hindi workshop'
under the auspices of different TOLICs. During the period under review
Zonal Office, Luck now and Zonal Office, Dharamshala were awarded 1st
Prize /Shield and 2nd Prize, respectively by TOLIC Luck now and
Dharmashala. In addition, Members of staff of our Bank working at H.O.,
Kolkata won 10 prizes, Luck now 6 prizes, Ranchi 2 prizes, Jaipur 2
prizes, Raipur 1 prize, Bhagalpur 1 prize, Ahmadabad 2 prizes, Nagpur 2
prizes, Chennai 1prize, respectively at various competitions organized
on the occasion of "HINDI DIWAS" under the aegis of different TOLICs.
"Hindi Month", "Hindi Fortnight", "Hindi Week" were celebrated
enthusiastically at Head Office as well as Zonal Offices, Central Staff
College, Regional Training Centres and Branches. During " Hindi Month "
at Head Office, Hindi Competitions and various Official Language
awareness programmes for the Executives/ Officers, Clerks and
Sub-Staffs were organized.
During the period under review Our Bank successfully hosted the
meetings of Official Language Implementation Committee of Financial
Services Dept., Ministry of Finance (for Public Sector Banks and
Financial Institutions) and Public Sector Banks under the auspices of
Reserve Bank of India in Kolkata on 16th July, 2011. In view of the
requirement to accelerate the pace of implementation of Official
Language Policy of Govt. of India, All India UCO Bank Official Language
Officers' Conference was organized in Mumbai on 29th and 30th December,
2011.
Various forms / publicity materials / procedural booklets viz. report
of Annual General meeting of Shareholders, Manual of Instructions and
Minutes of various Board Committees were prepared in bilingual form.
Hindi text of the materials for our Bank's Website was also prepared
and in ATM Screen of the Bank information /guidelines, as the case may
be, were made available in trilingual form i.e. in Regional Language,
Hindi and English. Sufficient amount was allocated by the Bank for the
purchase of classic literary Hindi books, dictionaries, technical
glossaries, Hindi books on computer/banking etc. and famous literary
books in regional languages written by renowned litterateurs.
7.FUTURE PLANS:
The year 2012-13 shall be the year of Retail Banking in both asset and
liability category for the Bank. However, the Bank shall continue to
focus on Recovery. The Bank shall be aiming at crossing two major
milestones such as total business of more than three lac crore rupees
and branch network of more than 2500 by March, 2013. The Bank shall
also be focusing on more leveraging technologies to make the Bank more
user friendly by working through business reengineering processes.
I. BOARD OF DIRECTORS:
8. CORPORATE GOVERNANCE:
The Bank firmly believes in and has consistently practiced good
corporate governance which is woven around its core values of
transparency, professionalism and accountability. By constantly
focusing on these aspects in its day-to-day operations, the Bank
strives to enhance shareholders' value. The Bank being committed to the
principles of good governance, its Board of Directors has formed
various committees of the Board to monitor every aspect of Bank's
business.
The systems and business processes of the Bank are continuously
reviewed at various levels for identifying and strengthening areas of
weaknesses, if any. The Directors of the Bank believe that good
governance is the key to earning trust, loyalty and goodwill of
clients, business associates, employees and investors and respect from
the society at large.
Changes in the Board of Directors
On being appointed by the Government of India, Shri S. Chandrasekhar an
took over as the Executive Director of the Bank w.e.f. 01.10.2011. Shri
S. K. Sinha served as the Government Nominee Director in the Board from
10.06.2008 to 21.07.2011. Thereafter, Dr. K. L. Prasad served as the
Government Nominee Director of the Bank from 22.07.2011 to 01.12.2011.
With effect from 02.12.2011, Shri Pravin Rawal has been appointed as
Government Nominee Director. Shri Manoj Kumar Gupta was appointed as
Chartered Accountant Director on 02.08.2011.
Shri Ajai Kumar relinquished the charge of Executive Director of the
Bank on 30.09.2011on his appointment as Chairman & Managing Director of
Corporation Bank. Md. Akhruzzaman who joined the Board on 14.7.2010,
resigned as Director of the Bank on 18.05.2011. Another Director Shri
Jai Dev Gupta resigned from the Board on 13.06.2011. Shri Sanjeev Jain,
on completion of his tenure ceased to be a Director from 02.03.2012.
Meetings of the Board of Directors
During the financial year 2011-12, the Bank had 15 meetings of the
Board of Directors, 21 meetings of the Management Committee of the
Board, 11 meetings of the Audit Committee of the Board. The number of
meetings of various other Committees of the Board held during the year
2011-12 are given below.
Sl No. Name of the Committee No. of Meetings held
1. Risk Management Committee 4
2. Shareholders' Grievance Redressal Committee 2
3. Share Transfer Committee 12
4. Special Committee for Monitoring Large-value Frauds 4
5. Customer Service Committee of the Board 4
6. Committee on HR-related issues of the Bank 5
7. Nomination Committee of the Board 2
8. Remuneration Committee of the Board 1
9. Committee of the Board on IT Management 1
Statement of Directors' Responsibilities
The Directors confirm that in the preparation of the annual accounts
for the year ended March 31, 2012
The applicable accounting standards have been followed along with
proper explanation relating to material departures, if any.
The accounting policies framed in accordance with the guidelines of
Reserve Bank of India, were consistently applied.
Reasonable and prudent judgments and estimates were made so as to give
a true and fair view of the state of affairs of the Bank at the end of
the financial year and of the profit of the Bank for the year ended
March 31, 2012.
Proper and sufficient care was taken for the maintenance of adequate
accounting records in accordance with the provisions of applicable laws
governing banks in India; and the accounts have been prepared on an
on-going basis.
Acknowledgements
The Board of Directors places on record its deep appreciation of the
contributions made to the deliberations of the Board by outgoing
Executive Director, Shri Ajai Kumar and other outgoing Directors
namely, Md. Akhruzzaman, Dr. K. L. Prasad, Shri Jai Dev Gupta, Shri S.
K. Sinha and Shri Sanjeev Jain.
The Board would like to welcome the new Directors and looks forward to
their valuable inputs towards growth of the Bank. The Directors remain
thankful to the Government of India, Reserve Bank of India and other
regulatory authorities for their support and valuable guidance.
The Board also thanks other Financial Institutions and correspondent
banks for their sincere co-operation. The Directors express their
gratitude to the loyal customers for their trust and continuous
patronage of the Bank. The Board also thanks the Staff
Unions/Associations and shareholders of the Bank for the support
extended by them. The Directors place on record their deep appreciation
of the dedication shown by each employee of the Bank due to which the
Bank could achieve so many milestones.
For and on behalf of Board of Directors,
Dated: 05th May, 2012 (Arun Kaul)
Place: Kolkata Chairman & Managing Director
Mar 31, 2011
The Board of Directors presents the 42nd Annual Report on the working
of the Bank. The Audited Balance Sheet as on 31.03.2011 and the Profit
& Loss Account for the year ended 31.03.2011 appended with the
Auditors Report are enclosed.
1. BOARD OF DIRECTORS
Corporate Governance :
The Bank firmly believes in and has consistently practiced good
corporate governance which is woven around its core values of
transparency, professionalism and accountability. By constantly
focussing on these aspects in its day-to-day operations, the Bank
strives to enhance shareholders value. The Bank being committed to the
principles of good governance, its Board of Directors has formed
various committees of the Board to monitor every aspect of Banks
business.
The systems and business processes of the Bank are continuously
reviewed at various levels for identifying and strengthening areas of
weaknesses, if any. The Directors of the Bank believe that good
governance is the key to earning trust, loyalty and goodwill of
clients, business associates, employees and investors and respect from
the society at large.
Changes in the Board of Directors:
During the year 2010-11, Shri Arun Kaul was appointed as the Chairman &
Managing Director w.e.f. 01.09.2010. Shri S K Goel, on his appointment
as Chairman & Managing Director of IIFCL Ltd., relinquished the charge
as the Chairman & Managing Director of the Bank on 30th June, 2010.
Shri Ajai Kumar, Executive Director of the Bank held the charge during
the
intervening period till the new Chairman & Managing Director was
appointed. Shri N R Badrinarayanan was appointed as Executive Director
of the Bank on 01.09.2010. Smt. Uma Shankar was inducted into the Board
as the Nominee of Reserve Bank of India on 30.07.2010. Two more
Directors were inducted to the Board namely, Shri Sebastian Luckose
Morris on 13.07.2010 and Md. Akhruzzaman on 14.07.2010.
During the year, Shri V K Dhingra, on completion of his tenure,
relinquished the charge as Executive Director on 30.04.2010. Four more
Directors namely, Shri N. P. Sinha, Shri J C Shandil, Shri S C Gupta
and Shri R N Jain, on completion of their tenure, relinquished the
charge on 29.07.2010, 07.10.2010, 12.03.2011 and 12.03.2011,
respectively.
Meetings of the Board of Directors:
During the financial year 2010-11, the Bank had 13 meetings of the
Board of Directors, 21 meetings of the Management Committee of the
Board, 9 meetings of the Audit Committee of the Board. The number of
meetings of various other Committees of the Board were Ã
Sl
No. Name of the Committee No. of Meetings held
1 Risk Management Committee 4
2 Shareholders Grievance
Redressal Committee 2
3 Share Transfer Committee 12
4 Special Committee for Monitoring
Large-value Frauds 4
5 Customer Service Committee
of the Board 3
6 Committee on HR-related
issue of the Bank 5
7 Nomination Committee of the Board 1
8 Remuneration Committee of the Board 1
9 Committee of the Board on IT and
Financial Inclusion 1
Statement of Directors Responsibilities:
The Directors confirm that in the preparation of the annual accounts
for the year ended March 31, 2011 -
The applicable accounting standards have been followed along with
proper explanation relating to material departures, if any.
The accounting policies framed in accordance with the guidelines of
Reserve Bank of India, were consistently applied.
Reasonable and prudent judgements and estimates were made so as to give
a true and fair view of the state of affairs of the Bank at the end of
the financial year and of the profit of the Bank for the year ended
March 31, 2011.
Proper and sufficient care was taken for the maintenance of adequate
accounting records in accordance with the provisions of applicable laws
governing banks in India; and the accounts have been prepared on an
on-going basis.
Acknowledgements:
The Board of Directors places on record its deep appreciation of the
contributions made to the deliberations of the Board by outgoing
Chairman & Managing Director and Executive Director namely, Shri S K
Goel and Shri V K Dhingra and other outgoing Directors namely, Shri N.
P. Sinha, Shri J C Shandil, Shri S C Gupta and Shri R N Jain.
The Board would like to welcome the new Directors and looks forward to
their valuable inputs towards growth of the Bank. The Directors remain
thankful to the Government of India, Reserve Bank of India and other
regulatory authorities for their support and valuable guidance.
The Board also thanks other Financial Institutions and correspondent
banks for their sincere co-operation. The Directors are also grateful
to the loyal customers for their trust and continuous patronage of the
Bank. The Board remains thankful for the support extended by the Staff
Unions/Associations and shareholders of the Bank. The Directors place
on record their deep appreciation of the dedication shown by each
employee of the Bank due to which the Bank could achieve so many
milestones.
For and on behalf of Board of Directors,
(Arun Kaul)
Chairman & Managing Director
Kolkata :
30.05.2011
Mar 31, 2010
The Board of Directors presents the 41st Annual Report on the working
of the Bank. The Audited Balance Sheet as on 31.03.2010 and the Profit
& Loss Account for the year ended 31.03.2010 appended with the
Auditors Report, are enclosed.
Corporate Governance :
The Bank firmly believes in and has consistently practiced good
corporate governance which is woven around its core values of
transparency, professionalism and accountability. By constantly
focusing on these aspects in its day-to-day operations, the Bank
strives to enhance shareholders value. The Bank being committed to the
principles of good governance, its Board of Directors has formed
various committees of the Board to monitor every aspect of Banks
business.
The systems and business processes of the Bank are continuously
reviewed at various levels for identifying and strengthening areas of
weaknesses, if any. The Directors of the Bank believe that good
governance is the key to earning trust, loyalty and goodwill of
clients, business associates, employees and investors and respect from
the society at large.
Changes in the Board of Directors:
During the FY09-10, Shri Ajai Kumar, Executive Director was inducted
into the Board of Directors on 07.12.09 in place of Sri B M Mittal,
Executive Director who demifted office on 01.1 1.09 on superannuation.
Sri P L Mittal, Chartered Account Director retired from the Board
w.e.f. 02.1.10. Sri Ram Avtar Sharma was inducted into the Board on 1
5.2.1 0 as Workman Director.
Meeting of the Board of Directors :
During the FY09-1 0, the Bank had 1 2 meetings of the Board of
Directors, 22 meetings of the Management Committee and 8 meetings of
the Audit Committee of the Board. The number of meetings held by
various other Committees of the Board are as under:
SI. No. Name of the Committee No. of Meet
ings held
1 Management Committee 4
2 Shareholders Grievance
Redressal Committee 2
3 Share Transfer Committee 12
4 Remuneration Committee 1
5 Special Committee for
Monitoring Large-value Frauds 3
6 Fhret/Customer Service Committee 4
7 Committee on HR Related issues
of the Bank 3
8 Committee of Joint Insurance
Venture (Non-life) 1
Statement of Directors Responsibilities:
The Directors confirm >haf in the preparation of the annual accounts
for the year ended March 31, 201 0:
The applicable accounting standards have been followed along with
proper explanation relating to material departures, if any.
The accounting policies framed in accordance with the guidelines of
Reserve Bank of India, were consistently applied.
Reasonable and prudent judgements and estimates were made so as to give
a true and fair view of the state of affairs of the Bank at the end of
the financial year and of the profit of the Bank for the year ended
March 31, 2010.
Proper and sufficient care was taken for the maintenance of adequate
accounting records in accordance with the provisions of applicable laws
governing banks in India; and the accounts have been prepared on an
on-going concern basis.
Acknowledgements:
The Board of Directors places on record its deep appreciation of the
contributions made by Sri B M Mittal and Sri P L Mittal to the
deliberations of the Board. The Board would like to welcome the new
Directors and looks forward to their valuable inputs in running of the
Bank. The Directors remain thankful to the Government of India, Reserve
Bank of India and other regulatory authorities for their support and
valuable guidance. The Board also thanks other Financial Institutions
and correspondent banks for their sincere co-operation. The Directors
are also grateful to the loyal customers for their trust and continuous
patronage of the Bank. The Board remains thankful for the support
extended by the Staff Unions/ Associations and shareholders of the
Bank. The Directors place on record their deep appreciation of the
dedication shown by each employee of the Bank because of which the Bank
could achieve so many milestones.
For and on behalf of Board of Directors
Kolkata (S K Goel)
30.04.2010 Chairman & Managing Director
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