I. MANAGEMENT DISCUSSION AND ANALYSIS
1. GLOBAL ECONOMY:
Global economy grew at 3.6% in 2018 and projected to decline 3.3% in 2019 due tomoderations in economic activity international trade and softened investment tradetension remains elevated and substantial financial market pressure continues. In 2020global economy is expected to grow at 3.6%. US economy grew at 2.9% in the year 2018 andexpected to decline 2.3% in 2019. The unemployment rates in US have fallen and labourproductivity has shown sign of picking up. Japan economy growth slowed in 2018 due to badweather and natural disasters and is set to grow 1.0% in 2019. China's economy slowed in2018 mainly due to financial regulatory tightening to rein in shadow banking activity andwidening trade dispute with US further deceleration in growth is projected for 2019 andexpected to stick at 6.2% . The euro economy is expected to grow at 1.3% in 2019 and 1.5%in 2020. Growth rates expected to decline for many countries notably Germany Italy andFrance. Economic activity in Europe and central Asia remain sluggish and economy grew at3.1% in 2018. Softening exports and labour shortages restrained growth in BulgariaCroatia and Romania. The Russia federation and other oil exports in central Asiamaintained steady growth in 2018 supported by a rise in Oil prices. Russia experiencedlow and stable inflation and increased Oil production. As a result of robust domesticactivity the Russia economy expanded at a 1.6% in the year ended. Latin America economyexpected to grow at 1.4% in 2019 and 2.4% in 2020. The slow growth outcome reflectedsoftening global trade growth and tighter external financing condition.
In advanced economic inflation is stood at 1.6% in FY 2018-19 compared to the last year2.0% in 2017-18. US economy core inflation is expected to exceed the medium term target of2.0% . In Euro area core inflation is expected to gradually increase from 1.2% in 2018 to2% in 2022. Japan core inflation is projected to rise to 1.4% by the end of 2020.Inflation in emerging market and developing economics expected to firm to 4.9% this yearfrom 4.8% in 2018.
Global trade growth slowed considerably in 2018. Global current account deficit andsurpluses are estimated to have widened marginally in 2018 compared with the previousyear. Higher oil prices have been the main driver of this widening of trade. Financialconditions in advanced economies have eased since start of the year after tighteningsharply in the final month of 2018. US Federal Reserve used flexible approach in themeeting of the Federal Open Market Committee and signaled a pause in its interest ratehiked for this year. The European Central Bank which ended its net asset purchases inDecember announced in March postponed rise in policy rates to at least the end of thisyear. Central Banks in many emerging market economics have lifted policy rates because ofconcerns that inflation may rise. In exchange rate front US dollar was appreciatedexpecting monetary policy tightening. The euro depreciated by about 3% and yen appreciatedmodestly and the pound strengthened by about 3% on shifting expectations of the outcomeBrexit negotiations.
Global equity markets declined due to spike in bond yields. Bond yields edged lowerduring Dec 2018 reflecting increased risk aversion and volatility amidst uncertaintyrelating to trade tensions Brexit and political concerns in Italy. In US 10 year treasuryyields fell. In Europe bond yield fell through the ECB confirming in its December meetingthat it would end the bond purchase programme. Japanese bonds yield fell significantlytriggered by weak growth rate.
2. DOMESTIC ECONOMY:
As per the second advance estimate of Central Statistics Office (CSO) on nationalincome the growth of real Gross Domestic Product (GDP) for 2018-19 is estimated to be7.0%. Domestic economic activity decelerated due to slowdown in consumption both publicand private. However gross fixed capital formation growth remained in double digit. Thegrowth of Gross Value Added (GVA) at constant- basis prices for the year 2018-19 isestimated to be 6.8% .Agriculture industry and service sectors is estimated to grow at2.7% 7.7% and 7.4% respectively in 2018-19. Consumer Price Index (CPI) inflation stood at2.86% in 2018-19 as compared to 4.28% in the corresponding period of 2017-18. The uptickin inflation was driven by an increase in prices of items excluding food and fuel andweaker momentum of deflation in the food group. The inflation 2019-20 is likely to shapeby several factors such as low food inflation fall in the fuel group inflation andincrease in international crude oil prices. WPI inflation stood at 3.18% in 2018-19vis--vis 2.74% in 2017-18. The growth of Index of Industrial Production (IIP) slowdownto 3.6% during 2018-19 as compared to the previous year 4.4% . The growth of eight coreindustries remained sluggish in 2018-19 and stood at 4.3%. The second advance estimate offood grains production for 2018-19 at 281.4 million tonnes were 1.2% lower than the fourthadvance estimates of 2017-18 but 1.4% higher than the second advance estimates of2017-18. The value of merchandise exports and imports grew by 9.06% and 8.99%respectively. In absolute value it was $ 331.02 billion and $507.44 billion respectivelyas of March 2019.
Banking and Financial Markets:
Money Supply (M3) growth of M3 on Y-O-Y as of March 2019 stood at 10.6% as recorded inthe corresponding previous year at 9.2%. Aggregate deposit of scheduled commercial bankstood at 10.0% on Y-O-Y as of March 2019 as compared to 6.5% recorded the correspondingdate of previous year. Growth of bank credit was 13.2% as of March 2019 higher ascompared to 10.0% of the previous year. India's foreign exchange reserves were at $412.9billion on March 2019. The nominal exchange rate of Indian rupees vis--vis the US dollarhas appreciated from its October level after coming under sustained pressure during August- September 2018. Higher Crude Oil prices and volatility in portfolio flows could putdownward pressure on the Indian rupee. Fiscal deficit pegged at 3.4% of GDP for 2019-20and Target of 3% of fiscal deficit to be achieved by 2020-21. The Govt. decided to borrowless in H2 2018-19 which led to revision of market borrowing programme for 2018-19 from`6055 billion to `5710 billion. Thus central govt. completed its revised borrowing as onMarch 2019.Govt has invested `2.6 lakh crore for recapitalization of PSBs as per theinterim budget 2019-20. Divergent movement was observed in various segments of thedomestic financial markets as they reacted differently to be global in 2018-19. RBIinjected liquidity through a mix of instruments yields on treasury bills move in syncwith larger tenor G-sec yields in response to global spillover as well as domesticdevelopments including large infusion of liquidity through open market purchase operationand large borrowing programme of the govt. Lower inflation accompanied by sharp decline incrude oil prices resulted in decline in yield during November 2018. During December 2018yields on the benchmark paper fell to 7.37% after announcement of interim budget 2019-20led to firming up of the yield on the new benchmark paper 7.26% GS 2029 by 9 bps to 7.38%.The Indian equity market which was buoyant till Aug 2018 faced sharply during Septembertriggered by the unfolding of IL&FS episode. The downturn got exacerbated in Octoberas market sentiment was dented by the liquidity tightness in NBFC sector coupled withglobal trade tensions.
II. PERFORMANCE OF THE BANK DURING 2018-19:
1. UCO's Delivery Channels:
1.1 BRICK AND MORTAR NETWORK:
Bank has a geographically well-spread branch network in India and also has presenceabroad. As of 31.03.2019 Bank has 42 Zones and 3086 domestic branches and 2 overseasbranches (one each in Singapore and Hong-Kong). Bank's representative office has beenestablished in Tehran Iran which is functional w.e.f. 25.03.2017.
The Global branch network over 5 years is as under:- (Global)
| || March '15 || March '16 || March '17 || March '18 || March '19 |
|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 7AssetManagement branches 4 service branches and 1 central processing centre 1 integratedtreasury branch. Further 27 Retail loan hubs 1 SME hub 72 currency chests are alsofunctioning 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 `317480 crore as of 31.03.2019compared to `305838 crore showing an increase of 3.81% over March 2018. Global Depositshas increased by 8.83% as of 31.03.2019 and stood at `197906.78 crore. Global advancesfell by 3.56% and stood at `119573.01 crore compared to `123990 crore as of31.03.2018.
Overall domestic business of the Bank has increased by 8.28% reached at`304016.68crore as of 31.03.2019 from `280763.62 as of 31.03.2018.
Total deposits increased by 11.78% and stood at `192278.15 crore.
Advances registered a growth of 2.75% from `108746.19 crore to `111738.53 crore.
CASA deposits increased by 33.53% on Y-O-Y and stood at `85559.42 crore SB depositsgrew by 8.35% and stood at Rs. 59316 crore. Current deposits stood at `26243.07 crorecompared 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 of31.03.2018 to 44.50% as of 31.03.2019.
2.3 FINANCIAL PERFORMANCE:
Bank has incurred loss of `4321 core during FY 2019 as compared to `4436 crore in FY2018. The loss during FY19 is decreased and the operating Profit for FY 2019 is `2760crore as against `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 `15141 crore in FY2018 to `15844 crore in FY 2019. Total expenses of the Bank has declined by `723 crore inFY 2019 against the previous year FY 2018. During the year Bank made provision of `7081crore against `5771 crore in FY 2018.Cost of deposits has decreased from 5.37% in FY 2018to 5.07% in FY 2019. Net interest income increased to `4311 crore in FY 2019 from `3125crore in FY 2018. Capital Adequacy Ratio (CAR) under Basel lII stood at 10.70% as on March2019. Govt. of India infused Capital to the tune of `3330 crore during the quarter ended31.3.2019.
3. TREASURY & INTERNATIONAL:
Domestic Investment of the Bank during the year 2018-19 increased by 15.20% from `69987crore as on 31.03.2018 to `80622 crore as on 31.03.2019 largely due to allotment ofrecapitalization bond and purchase of Government securities. The SLR investment of theBank increased by 8.31% from `52471 crore as on 31.03.2018 to `56834 crore as on31.03.2019 mainly due to purchase of high yielding Govt. Securities. The Non-SLRInvestment (Domestic) grew by 35.81% from `17516 crore as on 31.03.18 to `23788 crore ason 31.03.19 mainly due to allotment of recapitalization bond from GoI amounting to `6406crores.
During the year 2018-19 the bank has earned income from Treasury operations includingprofit from sale of investments amounting to `6252.47 crore vis-a`- vis `6005.45 croreduring the year 2017-18 thereby registering a 4.11% increase in treasury income y-o-ybasis mainly due to higher interest income from investments and profit from sale ofinvestments.
During the year 2018-19 the bank has registered a growth of 2.97% in interest incomefrom domestic investments which stands at `5326.45 crore as on 31.03.19 as compared to`5173.03 crore as on 31.03.18 thereby registering a growth of `153.43 crore y-o-y basismainly due to increase in domestic Investment portfolio.
3.1 Export Business:
"With 66 'B' Category Branches across India UCO Bank is committed to activelycater to the needs of its exporters. Total Merchant Turnover of the Bank during theFinancial Year ended 31st March 2019 stood at `72485.11 crore which is 78.82 % higherthan previous year. Bank Export credit outstanding during 31st March 2019 is 2204.40crore registering a growth of 11.46% over 31st March 2018.
'UCO Bank' has been facilitating Bi-lateral Banking Trade transactions with Iran under"Rupee Payment Mechanism" since Feb 2012 as mandated by Govt. of India/RBIthereby 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 overthe years and has been effectively servicing the priority sector and agriculture sectorwith its vast network of rural and semi-urban branches.
As on 31.03.2019 the Priority Sector Advances of the Bank stood at `54849 croreconstituting 43.48% of Adjusted Net Bank Credit (ANBC).
4.1.1. Agriculture Advances:
Total Agriculture Advances of the Bank stood at `21420 crore constituting 16.98% ofANBC. Direct Agriculture stood at `16452 crore constituting 13.04% of ANBC.
4.1.2. Advances to Weaker Sections:
Advances to Weaker Section stood at `16479 crore as of 31st March 2019 constituting13.06% of ANBC.
4.1.3. Minority Community Advances:
Total Minority Community Advances of the Bank as on 31.03.2019 stood at `7141 croreconstituting 15.25% of Priority Sector Advances.
5. Unique Schemes:
The Bank has one unique scheme - "UCO Uthaan" 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 Bankthrough its nearest branch to bring the BPL families out of the clutches of poverty and tobring about a holistic change in the villages. Under the scheme a holistic developmentplan of the villages is drawn and followed up for covering areas like education financingfor 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 MaharashtraOdisha Punjab Rajasthan Tamil Nadu Uttar Pradesh & West Bengal under UCO UthaanScheme.
In these villages Bank has conducted financial literacy camps to educate thevillagers extended financial support to them and has also initiated developmentalactivities under Corporate Social Responsibility. Under financial assistance Bank hasgiven General Credit Cards (GCC) to small traders Artisan Credit Cards (ACC) to artisansKisan Credit Cards (KCC) to farmers loan to SHGs loan for doing animal husbandryactivities loan to women
& SC/ST beneficiaries. Many small traders have started their own business with thesupport of Bank loan. Through CSR activities Bank has given Ceiling Fans Water purifiersto different schools Steel Almirahs Books for school library School uniform for schoolgoing children installation of hand pumps for drinking water in the villagesinstallation of Solar street lights in the villages construction of metallic road.
In two villages out of above 31 villages Bank has provided doorstep bankingfacilities to the villagers of these unbanked villages through Mobile Van. The Van visitsthese two villages on a predetermined day and time during the week and provides all typesof banking facilities to the villagers at their doorstep. There has been increase in thesaving habits of the villagers due to this initiative. Through these vans villagers arealso being financially educated. By these activities there is an all-round development inthe adopted villages and the villagers are very much benefitted.
By these efforts 6568 BPL families in these 31 adopted villages have been providedwith credit assistance by Bank to uplift their livelihood in better way during last 4years. These BPL families are generating their income by adopting several activities likedairy farming goat farming betel leaf cultivation vegetable growing cycle repairingshoe mending fruit vending grocery shop tea stall beedi making trolley plying masonjobs etc.
5.3 During the year 2018-19 Bank has introduced many new schemes to increaseagriculture business. Some of the schemes are given below:
UCO Food & Agro Processing Unit.- Financing new/existing Agro & FoodProcessing units.
Two- wheeler light &Medium Vehicle for farmer.- The scheme is speciallydesigned to provide hassle free financial assistance for conveyance needs of farmer forfarm activities.
UCO FPC( Farmer Producer Company) & UCO NFPC(UCO
Non- Farmer Producer Company) .
UCO AMI - Agricultural Marketing Infrastructure.- The UCO AMI Scheme laysspecial 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 atyatiTechnologies Private Limited for increase of Credit linkage in Agriculture & AlliedActivities 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 - RURALBUSINESS CENTRE.
6. REGIONAL RURAL BANKS (RRBs):
UCO Bank sponsored RRB namely Paschim Banga Gramin Bank (PBGB) is head quartered atHowrah West Bengal with four regional offices and 230 branches as on 31.03.2019. Anothersponsored RRB Bihar Gramin Bank has been amalgamated with Madhya Bihar GraminBank(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`154.51 crore (Govt. Of India) `108.16 crore (UCO) & `46.35 crore (West Bengal StateGovt.).
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`5181.30 crore as on 31.03.2019 registering growth of 8.79 percent. Total advance reacheda level of `.2739.53 crore with an annual growth of 13.25 percent as on 31.03.2019. CDratio stood at 52.87% on 31.03.2019 as against 50.79% on 31.03.2018.
The gross NPA stood at `373.45 crore as on 31.03.19 vis-a-vis `474.54 crore as on31.03.2018. 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 against14.85% as of 31.03.2018.
Paschim Banga Gramin Bank has recorded a net profit of `25.57 crore as on 31.03.2019 ascompared to net loss of `39.40 crore as on 31.03.18 thereby decreasing accumulated lossfrom `107.97 crore as on 31.03.2018 to `82.40 crore as on 31.03.2019.
6.2. Corporate Social Responsibility:
Bank has taken several programmes/initiatives as a part of Corporate SocialResponsibility. Few of these programmes/ initiatives are as under:
a) Our Bank has set up 27 Rural Self Employment Training Institutes in 7 States namelyAssam Bihar Himachal Pradesh Odisha Punjab Rajasthan and West Bengal.
These 27 institutes with dedicated infrastructures are devoted to impart training andskill upgradation and to mitigate the unemployment and under employment problems for ruralyouths. These institutes are set up by the Bank as a part of the initiative taken up bythe Ministry of Rural Development to establish dedicated training institutions fordevelopment of entrepreneurship skills in rural youth under Corporate SocialResponsibility (CSR). All RSETI trained 17883 candidates and 7792 beneficiaries have beenprovided Credit Linkage of `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 onAajeevika 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 Branchesin 19 Zones of the Bank for upliftment of BPL families and all-round development ofadopted villages with financial & social intervention.
d) Under the initiative of Reserve Bank of India bank has set up 10 CFLs (Centres forFinancial Literacy) in 10 Blocks 5 each in Bhadrak and Dhenkanal district of Odisha. TheBank 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 29Financial Literacy Counsellors for conducting Financial Literacy Camps. During FinancialYear 2018-19 the Financial Literacy Counsellors have conducted 6008 Financial LiteracyCamps thereby spreading Financial Awareness to 353303 participants.
f) Under the initiative of NABARD Financial Literacy Awareness Programme (FLAP) hasbeen initiated in all Rural Branches of Our Bank for imparting financial literacyawareness for different target segments of population.
Programmes were on digital literacy and safety measures to be adopted while doinge-transaction. Our Bank has 1075 Rural Branches where 9258 FLAPs were organised withcontribution from our Bank in these programmes amounting to `1.13 crore.
7. MICRO SMALL & MEDIUM ENTERPRISES (MSME):
Bank recognizes importance of MSME sector in economic growth of the country. Theadvance under Micro Small & Medium Enterprises (MSME) as on 31.03.2019 is `23416.28crore.
New Initiatives taken under MSME during FY 2018-19:
Bank has taken Board approval for signing MOU with CGTMSE for participating as lenderon the Udaan Portal.
Since guarantees would be extended upfront Bank can take credit decision right at thebeginning.
SME hubs proposed to be established in nine centres i.e.
Kolkata Mumbai Hyderabad Chennai Bangalore Ahmedabad Chandigarh Coimbatore andSurat. SME Hub at New Delhi has already been made functional to augment the business underMSME.
New product on E-Rickshaw i.e. "E-Rickshaw under Mudra Scheme" has beenlaunched on 28.06.2018.
Bank introduced "Mukhya Mantri Swavalamban Yojana 2018" scheme for"Bonafide Himachali" i.e. resident of the State of Himachal Pradesh on28.11.2018.
New Schemes "UCO PM Credit Scheme for Powerloom Weavers under MUDRA" and"UCO PM Credit Scheme for Powerloom Weavers under Standup India" has beenlaunched on 29.11.2018.
Bank has tied-up with RXIL one of the players at TReDS platform and is discountingonline bill w.e.f. February 2019.
A total of 656 bills were purchased amounting to `35.45 crore during 05/02/2019 to31/03/2019 on this platform.
Scheme for financing "Two Wheeler under Mudra" launched w.e.f. 22.02.2019.
Bank has tie-up with www.psbloansin59minutes.com one of the fintech companies forgeneration of leads and reduction of TAT.
8. RETAIL BANKING:
The performance highlights of the bank under retail banking during FY 2018-19 arefurnished hereunder:
| || || ||(Rs in crore) |
|Product || || || |
| ||As on March 2018 ||As on March 2019 ||% Growth Y-o-Y |
|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 duringthe FY 2018-19.
NPA under Retail loan Portfolio (excluding Pool) reduced by `91.88 crore during theyear ended 31st March 2019 in comparison to 31st March 2018. During this period NPA inall Retail Loan products except UCO Property loan has shown a downward trend.
Pool account of `500.00 crore under Home loan has been sourced during this FinancialYear.
Integration of Credit Information Report pulling through CIBIL and CRIF has beenimplemented in LAPS.
Seven Retail loan Schemes have been customised for processing through LAPS.
A new Education Loan Scheme "Chief Minister's B.Ed.
Anuprerna Yojna" is introduced to cater the financial needs of students domiciledin the State of Tripura who are pursuing B.Ed. course.
UCO Gold Loan Scheme was modified and Processing & Documentation charges arecompletely waived in UCO Gold Loan Scheme to make it more competitive and in line withsimilar scheme of our peer Banks.
An MOU was signed with M/s Prasar Bharti to provide Retail Loans at concessional rateto Employees/Deemed Employees of M/s Prasar Bharti.
100% waiver of processing charges was given to the Land Lords of our Bank's Branch/ATMpremises under UCO Rent Scheme till 31.03.2019.
To streamline processing of Retail Loans and reduce the turnaround time "Revisedstructure & Operational Guidelines of Retail Loan Hubs" were implemented. Threemore RLHs at Bangalore Shimla and Bhubaneswar were established during the currentFinancial Year.
Bankhasintroduced"MonsoonOffer-2018"from01.07.2018 to 30.09.2018 wherein 100%processing and documentation charges are waived in Home and Car Loans.
Bank has also introduced "Grand festive offer-2018" from 01.11.2018 to31.01.2019 which is further extended to 31.03.2019 wherein 100% processing anddocumentation 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 Personsare duly trained and certified by Insurance Regulatory & Development Authority ofIndia (IRDAI). Number of Specified Persons posted in Branches/Zones is 316 in March 2018and subsequently increased to 332 in March 2019.
Bank is a Corporate Agent for Life and General Insurance Companies and Master PolicyHolder 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 IndiaInsurance 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)
|Name of the Company ||Premum Collected ||Commission Earned ||No of Policy/ 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 897.88lakhs.
10. FINANCIAL INCLUSION:
10.1. Pradhan Mantri Jan Dhan Yojna (PMJDY):
Bank has been allotted with 16225 villages across the country to provide inclusiveBanking Facility in unbanked / under banked areas. In line with DFS directives thesevillages were categorized into 4066 Sub Service Area (SSA). Out of these 4066 SSAs 3600SSAs are covered though BC agents and remaining 466 SSAs in tier 5 villages (Populationabove 5000) are covered through Branches for ensuring universal Financial Inclusion and tobring the entire population under ambit of structured Banking facility. Bank has deployed3564 Bank Mitras in these allotted SSAs. During the FY 2018-19 total 167.78 lacstransactions amounting `6281.55 crore averaging every month about 13.98 lacs transactionsamounting `523.46 crore carried out through Micro ATMs used by BC Agents.
By end of March 2019 Bank has `2221.30 crore deposits in 76.43 lacs PMJDY Accounts withaverage balance of `2906.08. We have distributed around 39.98 lacs RuPay Cards to theeligible PMJDY account holders. During the FY 2018-19 average transactions to the order of1.50 lacs took place through Rupay Cards on Micro ATMs used by BC agents amounting to`75.70 crore in aggregate.
10.2. Aadhaar Seeding & Authentication:
As per revised guidelines Aadhaar can be given voluntarily as identity proof foropening customer accounts. Aadhaar is required for availing benefits under various welfareschemes. By 31st March 2019 around 84% operative CASA have been seeded with Aadhaarnumber and Aadhaar authentication has been done in 52% of operative CASA. Aadhaar basedDirect Benefit Transfer worth `5905.90 crore was transferred to the accounts ofbeneficiaries.
10.3. Aadhaar Enrolment Centre:
A total no of 300 Aadhaar Enrolment centers has been set up covering 10% of thebranches as per UIDAI guidelines in our Bank. So far 1016 staff members(operators/supervisor) have passed the certification exam and 1016 User IDs are activatedin 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 10000/- has beensent to all branches/zones. Number of PMJDY accounts using the OD facility in the bank ason 31.03.2019 is 161556 involving aggregating sanctioned amount of `32.38 crore.
10.5. Social Security Schemes:
Working on the government's theme of providing social security to hitherto unbankedmasses Bank has implemented Insurance and Pension products namely Pradhan Mantri JeevanJyoti 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 areinsured and under PMSBY scheme 15.58 lakh lives are insured. So far a total of 3137 claimsare settled under PMJJBY and 665claims are settled under PMSBY. Further total subscribersunder 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 hasstarted gaining both tangible and intangible benefit out of these activities. Whiledecongestion of branches reduction of transaction cost and increase in CASA base areintangible benefits of FI Project. Tangible benefits have come in the form of commissionearned under various products. Bank has earned `193.13 lacs in PMJJBY `22.80 lacs inPMSBY and `76.34 lacs in APY as commission during FY-2018-19. Similarly an aggregateamount of `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 andindirect taxes Central and State Government Pension Atal Pension Yojna (APY) SovereignGold Bonds (SGB) and National Pension System (NPS).
During the 2018-19 all Branches have been authorized for the opening of account underPublic Provident Fund (PPF) Sukanya Samriddhi Accounts (SSA) and Senior Citizen SavingScheme (SCSS). There was increase in the accounts opened under PPF -9984 (23%) and SukanyaSamriddhi Accounts scheme -14675(71%) during the year 2018-19.
There was a substantial increase in accounts opened under APY Scheme from 64730 during2017-18 to 78745 during 2018-19 shows 22% Y-o-Y growth.
Bank earned Turn over Commission to the tune of `20 crore during 2018-19 on variousproductsnamely different state tax collections CBDT tax collections CBEC taxcollections central and state government pensions Atal pension Yojna(APY) PPF SukanyaSamridhi Yojana SCSS and Sovereign Gold Bond etc.
12. LEGAL MATTERS:
With the ever changing trend of the legal contours concerning the Banking industry thesignificance of the role & responsibilities shouldered has been manifold. With the PCAlooming over the Bank the primary focus has been recovery & Law Department HeadOffice has been working in tandem with the other departments' viz. Recovery Retail etc.in augmenting Bank's recovery prospects.
The periphery work has been expanding entailing within its ambit framing of Policies aswell as providing tangible assistance to other Departments for the same rendering opinionas and when referred to from various Corporate Departments of Head Office as well as ZonalOffices / Branches from time to time vetting drafting monitoring of cases (wherein Bankis a party) filed / pending before various fora of Law and adapting the various changesushered in the legal spectrum involving the Banking Sector thus ensuring protection ofBank's interest in every step. As on 31st March 2019 Law Department Head Office hasissued
20 Circulars highlighting all the amendments made to the recently enacted Insolvencyand Bankruptcy Code 2016 as well as its analogous Regulations / Rules issued thereunderin view of the various Gazette Notifications published in this regard by the Ministry ofCorporate Affairs & insolvency and Bankruptcy Board of India (IBBI) Companies Act2013 Security Interest (Enforcement) Rules 2002 etc.
Law Department Head Office has also been instrumental in framing a policy on 'Issuanceof Look out Circulars' after the Ministry of Home Affairs accorded authority to the MD& CEOs of PSBs for making requests for issuance of Look out Circulars. Furthernecessary assistance has also been rendered for imparting effective training to Bank'sStaff on topics of banking pertinence viz. 'Documentation' Tendering Processes etc.
Further Law Department Head Office has been regularly monitoring cases filed beforevarious fora of Law (viz. Hon'ble Supreme Court Hon'ble High Courts Debts RecoveryTribunal Debts Recovery Appellate Tribunal Consumer Forum etc.) and has contributedtowards ensuring protection of Bank's interest therein.
The increasing trend of NPAs in the Banking Industry over last four years has becomeconcern for the Bank. Gross NPA level of our Bank increased from 24.64% in March 2018 to25.00% in
March 2019 and the quantum of GNPAs has decreased from `30549.92 crore to `29888.33crore 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 `9082.44 crore. CashRecovery for `2991.52 crore for the year ended 31st March 2019. The total reduction inCash Recovery & Up-gradation of NPA during FY 2018-19 is `5323.72 crore. MaintainingBank's Asset quality and recovery of Bad debts remain main focus area for the Bank.
13.1. Recovery performance:
Bank's recovery mechanism is also geared up at all levels of the organization to takeadvantage of modified compromise settlement scheme SARFAESI Act DRTs Lok Adalats NCLTCountry wide mega Recovery Camps Road Shows MAO campaigns declaration of willfuldefaulters etc. were organized for speedy recovery.
The details of GNPA NNPA Cash Recovery and upgradation for the last three years areas 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 `5323.72crore as against `4290.12 crore for the year ended 31st March 2018. The recovery inwritten-off accounts is `435.49 crore for the year ended 31st March 2019 compared to`181.56 crore for the previous year.
Recovery in Loss assets has a direct impact upon the profitability and the Bank givingpriority in monitoring / follow-up for recovery in such accounts. A separate vertical inthe Bank is monitoring consistently for recovery in loss assets including technically aswell as prudentially written-off accounts.
13.2. Some Recovery initiatives:
Bank has liberal compromise Settlement scheme for NPA and ML accounts having O/sBalance up to `25.00 Lac under which the branch heads are empowered to approve compromiseproposal 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 of4-5 branches of highly concentrated NPA to maintain contact with the borrowers organizerecovery camps at regular intervals and scout OTS proposals. Emphasis is also given forOTS/Compromise settlement for eligible NPA accounts under all categories.
Bank has empanelled 513 Enforcement & Recovery Agents and 1267 BusinessCorrespondents (BCs) for effective and time-bound enforcement of action under SARFAESI Actand early resolution of NPA accounts.
Bank has implemented the Legal Management System with the objective to facilitatedifferent departments at Head Office
& Zonal Offices for monitoring legal matters creating database of all casespending before different courts for effective monitoring and early resolution of accounts.
MAO (Many against One) approach is adopted against recalcitrant borrowers on a regularbasis 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 e-B-G' a common webportal of IBA (https://ibapi.in) (Indian Banks Auction Properties Information) formeaningful 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 theway forward in respect of NCLT cases.
Most of the accounts under NCLT are consortium / multiple banking accounts which arebeing monitored for resolution on case to case basis in consultation with leader ofconsortium etc. Where we are the leader of the consortium the department is meticulouslyfollowing 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 issuesfrom Head Office with the top management of the respective Leader Banks on regular basisspecifically to convene meeting of JLF at frequent intervals and ensuring our Bank'sparticipation at suitable levels in such meetings.
Eligible NPA accounts are identified for Sale to ARCs from time to time at regularinterval. A total of 434 A/cs amounting to `6150.99 crores since inception and 2 accountssold for `46.24 crore during the year ending 31.03.2019.
State specific Schemes were formulated to widen the scope of NPA recovery as perrequirement under Debt Waiver at the State Level through the SLBC of the respective statessuch 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 industryand force banks to deal with NPA more proactively by stressed asset management forarresting fresh slippage. Bank has geared up mechanism of tracking by initiating measuresas 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 fordealing with loan frauds leading to the identification of the account as fraud or notwithin the period of six months from date of marking the account as RFA. Regarding Systemidentification of EWS Proof of Concept (POC) is completed and total process will becompleted within 30.06.2019.
2. Considering severe stress in Micro Small and Medium Enterprises (MSME) sectorsFramework for revival and rehabilitation ofMicroSmall and Medium Enterprises and one timerestructuring of MSME formulated in terms of RBI guidelines and has been put in place forresolution of stressed asset under these sectors.
3. As a part of stressed asset management default assets `5 crore and above weeklyreporting 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 stressedand NPA accounts at base level.
To improve upon functioning at the grass root levelbank has devisedfurtherfollowingstrategic policy and guidelines:
a) Operational guidelines for Credit Monitoring has been updated and put in place on27.07.2018 after obtaining approval of the Board.
b) Policy for empanelment of TEV consultants has been revised and put in place on04.05.2018. c) Based on the feedback received from field functionaries and following theguidelines of Reserve Bank of India (RBI) thirty Seven (37) numbers of circulars issuedon effective credit monitoring during Financial Year (FY) 2018-19.
d) Engagement of Agencies for Specialized Monitoring and effective monitoring of LargeBorrowal accounts with exposure above `250.00 crore has been introduced on 15.02.2019after obtaining approval of the Board.
e) Guidelines for empanelment and appointment of Stock & Book Debt auditors hasbeen revised and put in place on 10.12.2018.
f) Stressed accounts of `5.00 crore and above was directly monitored by High PowerCommittee (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 on31.12.2018 our Bank's position is 11th among all PSBs.
Bank has a Contingency Funding Plan to manage a range of scenarios of severe liquiditystress. The funding plan contains the details of potential contingency sources estimatedamount which can be drawn from these sources lead time needed and procedure detailingwhen and how each of the actions will be activated.
In order to bring our Bank out of Prompt Corrective Action (PCA) the department inconsultation with other Corporate Department has initiated various Turn Around Strategiesand Action Plans. The Strategies are being implemented by the functional Departments in atime bound manner.
The risk culture in Bank is being developed by the Department by conducting in- houseTraining / workshop programme related to Risk Management in Bank from time to time.
The Department has come up with a monthly Bulletin namely "The Risk Mirror"containing latest topics on Risk Management in Bank.
The Department has developed Standard Operating Procedure (SOP) on Fraud Risk RiskMitigation Plan (RMP) under Risk Based supervision by RBI Credit Audit and PCA.
Best practices at Industry level in Credit & Operational risk areas have beenidentified and their implementation in the Bank in a time- bound manner has beeninitiated. All the Policies of our Bank have been revisited / reviewed.
Root cause analysis of frauds/ large value NPA accounts is being carried out. Necessarychanges in the respective policies / system & procedures to curb the recurrences offraud/slippage are being done.
Our pricing of loan to Corporate Borrowers is linked with RAROC document. The riskappetite 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
A. New Projects/Applications launched in Current Financial Year
1. Near Disaster Recovery (NDR)- Implementation of NDR site has been completed on 12thDecember 2018 for zero data loss during exigencies and to enable quick recovery andcontinuity 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 PrintedPIN (as First time usage in ATM is required)
Introduction of UCO container app--having Mobile banking UPI UCOPay+ mpassbookUCOSecure 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 ofForm 15G/H Enrolment for Pradhan Mantri Suraksha Bima/ Jeevan Jyoti Yojana TDS/Form 16certificate issuance etc.
Implementation of EASE features like 15G/15H form submission Issuance of loan interestcertificate launch/ follow up of compliants TDS/Form 16 certificate issuance etc.Maharastra GRAS Treasury integration for collection of Maharashtra Tax Transactional Emailalert to customer's registered email id.
Facility of online transaction to Sukanya Samridhi Yojna through e-banking Nominationfacility feature implemented in e-banking for Online FD opened . 21 new college/schoolhave 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 SoftwareDevelopments
Implementation of ONLINE module for One Time Settlement (OTS) of bad loan through ourBank's website for processing of OTS application of any amount.
Whistle Blower Module under HRMS portal for employees to lodge financial andnon-financial complains.
The UCO Employee Share Purchase Scheme (ESPS) 2019 application was developed forprocessing of employees DEMAT a/c opening applications processing of Equity shareapplications.
Online Portal for customer for reporting unauthorized transaction by customers.
Development of online application module for Retirees to apply Medical Insurance as perthe guidelines provided by the IBA
Development of Provident Fund (PF) Management module in HRMS application for settlementof PF/ Pension optee after retirement for Head Office PF Department with Dualauthentication (Maker & Checker) system Customisations in CBS Environment
Implementation of Motor Accident annuity deposit module in FINACLE towards disbursementof compensation to the beneficiaries of motor vehicle road accidents
Incorporation of additional security features such as Random number (Secret Code) andSequence 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 - 132centres 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/TwoWheeler/Shopper/Rent/Property Loan) in LAPS. Implementation of facility to pull CreditInformation Report (CIR) from CIBIL & CRIF Highmark of the customer thereby getting toknow the credit history of the prospective borrower. Integration of LAPS with VidyaLakshmi portal (VLP) for receiving education loans from online applications applied by thestudent/borrower.
Implementation of multiple channels multiple ports multiple Accounts for ADC channelfor smoother transaction to cater to increasing volume of data through ATM UPI IMPSNPCI NFS PFMS channels.
4. Government Business Module (GBM):
All the branches are enabled to handle Public Provident Fund (PPF) scheme with fullfunctionality including Intersol transactions. CBDT is enabled in 308 branches and CBIC isenabled in 26 branches. State taxes of West Bengal and Odisha are enabled in both offlineand 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 theinter sol certificate submission feature with acknowledgement. Aadhaar number can beseeded in GBM for Pension and PPF accounts.
As on 31.03.2019 Bank has 2358 ATMs (Onsite - 2047 and Offsite - 311). Departmenthas taken below mentioned initiatives in the area of ATMs during FY 2018-19 -EMV EnabledATMs migration completed
Closure of all loss making/ low hit ATM sites to reduce operational cost Relocation ofATMs 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 machineswith latest configuration Modification in existing ATMs to get them updated with latestAnti fraud measures To simplify the process for collecting reconciliation report fromzones and branches a portal (name as Unified Portal For ATM Reconciliation Report)developed for submission of monthly ATM recon/ cash status. Procurement and installationof 500 ATMs
6. Network: Internet access in controlled environment using Proxy solutionin all branches and offices Successfully provided network through 4G LTE (Wireless) forMobile ATM during Kumbh Mela & Saras Mela. For improving connectivity of VSATbranches pool Bandwidth has been increased.
7. Call Centre: Function of call centre improved by increasing number ofagents. Abandoned call percentage decreased to markable point.
8. Official Facebook/Twitter:
Creation of Bank's official Facebook and Twitter pages and YouTube Channel forpromotion of digital products of bank to customers
Implementation of STP (Straight Through Processing) between SWIFT and FinacleImplementation of STP between Finacle and SFMS for outward LC/BG messages.
10. BHIM Aadhaar Pay:
Bank has successfully implemented Payable and Receivables for BHIM AadhaarTransactions. On boarding of Bank on "Auth 2.0" Platform for usage of RegisteredDevices 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 identificationinformation exchange swift response and remedial actions to mitigate and recover fromcyber threats impacting critical business functions. Bank has Cyber Security Policy andInformation Security Policy in place to provide direction and support for cyber securityin accordance with business requirements relevant laws and regulations. Cyber riskawareness workshops and programmes have been conducted for employees for disseminatingawareness at different user level. Table top exercises and mock drills have been carriedout to assess the preparedness and efficiency of Branches and Offices in reporting cyberincidents. Cyber security best practices and safety tipsare shared through Facebook andTwitter to help customers be aware of the challenges of cyber risks and threats. CyberSecurity Handbook has been published to spread awareness amongst employees with differenttypes of cyber security breaches their consequences and best practices. Employeeawareness has also been enhanced through various kind of advisory viz Cyber SecurityThought of the Week series Cyber Security words covering alphabets from A to Z Be AwareBe Secure Series. Information Security Awareness Month has also been celebrated in August2018 where regularly pictorial messages were circulated to all employees.
18. CUSTOMER SERVICE:
Standardised Public Grievance Redressal System (SPGRS) is available for the public tolodge complaints online. 98.30% of the total complaints received during the financial year2018-19 have been redressed. Under RTI a total of 1125 applications were received duringFY 2018-19. There were 220 appeals made under RTI.
19. MIS & ADF Cell:
Bank is having Management Information System (MIS) vertical for internal reporting aswell 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-Walletetc. and performing as a one stop solution for providing information to the organizationfor the purpose of data analysis strategic planning evolving the business plans itsimplementations and TOP Management level decision making.
Bank has developed reporting system under MIS ADF for submission of RBI returns/dataviz. BSR SIBC NRDCSR etc. without any manual intervention through XBRL platform.Internal reports made available for business verticals - Credit Risk ManagementRecovery Treasury International Overseas and Finance for control monitoring andreporting day to day business parameters.
Digital channel performance reporting to Ministry of Electronics & TechnologyGovt. 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 byRBI is under process. Under this project 117 RBI returns to be automated in a time boundmanner.
20. CORPORATE COMMUNICATION:
Bank reinforces strong corporate reputations through its high degree of transparencyand consistency in communication with stakeholders and also disseminates timelyinformation with clarity coherence and credibility including information through thewebsites of the Bank on real-time basis. Bank aims to inform persuade and involve one andall in the activities and growth through sustained consistent and relevant messages andusing a judicious mix of both external and internal communication tools.
Bank has taken up multiple initiatives through various channels namely Print MediaOutdoor Media Sponsorship of different events CSR activities and dissemination ofrequisite information to stakeholders to build and maintain the brand-image of a worldclass financial institution.
a) Publicity Campaigns :
Print Media is an effective medium to connect to masses. Corporate CommunicationsDepartment has utilized it effectively by carrying out intensified and vigorous publicitycampaigns throughout the FY 2018-19. Liability products and Asset products viz. UCO HomeLoan UCO Car Loan Monsoon Offer & Festival offer for UCO Home & Car loan PMMYStand Up India psbloanin59minutes KCC etc. were prominently promoted during the period.
With a thrust on routing the transactions through Alternate Delivery Channels (ADC) andmaking banking more personalized and customer-oriented UCO Pay+ E-Banking etc. werewidely publicized through Print Media during the period.
Publication of financial results in leading national and local dailies was also carriedthrough Print Media.
The contribution of Outward Media towards establishing a strong brand value in themarket cannot be underestimated. Outdoor media publicity is basically done throughhoardings kiosks wall paintings banners sponsorship and beautification of gardens/parks etc. Proposals related to sponsorship of events health check-up camps sportingevents etc. are also done from time to time.
Rural publicity is an integral part of publicity-campaign for UCO Bank having pan-Indiaand strong rural presence. Bank has promoted and monitored various rural publicitycampaigns through zonal offices located across the country. Wall-Paintings announcementsby Rickshaw Loan fairs etc. were carried out for promoting awareness about products andservices 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 overseascenters. Employees and executives of the Bank jubilantly participated in a Walkathon fromHead Office II Salt Lake to Central Staff College. Zonal Offices and branches across thecountry organised different activities viz. planting saplings blood-donation camp healthcheck-up camp etc. A booklet on Cyber Security & Updated M Banking App were alsolaunched 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 forstrengthening the public relations. During the FY 2018-19 Corporate CommunicationsDepartment organised Press Meets for declaration of quarterly and yearly financial resultsand other important events.
Department has also arranged for press-release of financial results AGM & EGMs andother important events in leading national and local newspapers throughout the FinancialYear.
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. Thiscreates a sense of belongingness and loyalty in existing and prospective customers.
d) UCO TOWER :
Bank is also publishing the in-house magazine "UCO Tower" where all theconstituents are encouraged to participate. UCO Tower also aims to create awareness of allhappenings and activities of the Bank among all employees.
21. HUMAN RESOURCE:
Human resources Management Department Comprises of various Cells looking afterdifferent segments of the department. All these cells worked in tandem during FY 2018-19to create a harmonious and productive work environment. Training and workshops wereorganised for improving/enhancing the skills and knowledge of the staff.
The total staff strength as on 31st March 2019 stood at 23133 including employeesserving overseas. The total staff strength comprises of 12088 Officers 7456 Clerks 1671Subordinate 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. 1486employees belong to the Minority Communities. The total workforce constitutes 25.02% womenemployees (5787) as of 31st March 2019.
21.2. IR Negotiation Cell:
During the period the Industrial Relations climate in the Bank remained cordialbetween the Management and the Unions/ Associations. Meetings and discussions were heldwith Unions/ Associations at periodic intervals through mutual co-operative attitude andrespect during the financial year 2018-19.
21.3. Reservation Cell:
Bank has been implementing reservation policy of Government of India. Reservation andother relaxations and concessions extended to SC/ST/OBC / Differently Abled Persons andEx-Servicemen employees of our bank are strictly adhered. During internal promotionprocess for the FY 2018-19 as per GOI guidelines Bank has imparted Pre-promotionTraining to 928 employees (SC - 337 ST - 178 OBC - 391 and PH - 22) belonging toSC/ST/OBC and PWDA category. Our Bank being the Nodal Agency in two state i.e. Shimla andOdisha provides pre -recruitment training. In order to address the issues of SC/ST andOBC employees of the bank regular periodical meetings are being held at Apex level aswell as at Zonal office level (where reservation roster is maintained) with WelfareAssociation of such employees. The grievances of such category of employees are heard insuch meetings and subsequently grievances are redressed as per Bank's policy guidelines.
The reservation cell hosted a review meeting with Dr. Nand Kumar Sai the Hon'bleChairman (Status of Union Cabinet Minister) National Commission for Scheduled Tribes atKolkata on 25.02.2019. Two officials from DFS along with other dignitaries alsoparticipated in the meeting.
21.4. Recruitment Cell:
Bank has recruited 465 Probationary Officers during the year 2018-19. These 465Probationary Officers comprise of 77 SCs 24 STs 168 OBCs 10 VIs 2HIs and 6 OCs out ofwhich 131 are females. 541 clerks have also been recruited during the year 2018-19 ofwhich 85 SCs 60 STs 112 OBCs 4VIs 1HIs 5OCs and 57 EXSs out of which 156 arefemales.Bank also proposes to recruit 18 Probationary Officers and 46 Clerks under CRP VIIreserve list for 2018-19 and 550 Probationary Officers and 600 clerks for 2019-20 underCRP VIII. Bank has initiated the process for appointment of Internal Ombudsman oncontractual basis.
21.5. Training Cell:
Our Organization being a part of one of the most dynamic industries has to keep upwith the constantly changing environment by continuously updating its workforce withvarious Training Programmes in the concerned Fields. Training programmes are held aligningthe corporate vision mission and fulfilling the expectations of the Top Management.
During the FY 2018-19 Several important modifications were carried out in OnlineTraining Management Module in HRMS to stabilize the system and transforming it into arobust MIS platform. Policy on Capacity Building through Certified courses was formulatedand being implemented with vigour to encourage our Staff members by payment ofhonorarium/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 E-Learning for its employees toensure continuous development of Human Resources through effective learning process. In FY2018-19 197 Executives 9058 Officers 3085 Clerks and 402 Sub-Staffs were trained inInternal Training programmes conducted at our Central Staff College (CSC) situated atKolkata and 7 Regional Training Centres situated at Durgapur Bhubaneswar BhopalChennai Ahmedabad Jaipur and Chandigarh. Under Locational/Camp based Training programmesconducted at Zonal Level 3857 employees were trained. This year also we continue tosponsor our Executives & Officers in reputed External Training Institutes like NIBMASCI IIBM etc.in which 565 employees were trained in External Training programmes whichhelped them in acquiring a global competitive edge.
FY 2018-19 witnessed the introduction of some important Training programmes like CyberSecurity and Cyber Risk Awareness programmes for Senior Mgmt as well as Top ManagementRisk Management programme for Risk Officers Workshop for Officers/ Executives handlingIran Business GST & MSME related Workshops. We are continuously evolving our TrainingDepartment with the adoption of latest inventions to develop sustainable solutions so asto fulfil the desired Corporate expectations.
22. AUDIT & INSPECTION:
After the introduction of Risk Based Supervision of Banks by RBI and adoption ofBasel-III norms the function of Inspection & Audit has undergone a sea change. Alongwith traditional functions of ensuring proper follow up of policies & proceduresstrengthening the internal control the Inspection & audit measures the risk the Bankfaces 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 beenadopted since 2014. The Bank has switched over to Risk based online Concurrent Audit andManagement 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. Thesystem generated alerts are being generated in 21 parameters. The disposal of alerts bybranches has reached 86%. Apart from alert generation this cell is also monitoring variousinternal accounts suspicious transactions through back-end data mining.
During the year RBIA has been conducted in 2191 branches. 878 branches / offices areunder 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 year2018-19.
Dormant accounts are made active by the respective BH/ ABH on receipt of applicationand KYC documents of customers and report on dormant accounts activation is generated onthe next day for perusal of the Branch Head.
The Balance sheets and other financial statements submitted by the borrower companiesto 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 RBIbefore taking any credit decision.
Periodic investigations are done in suspicious transaction/ activities at branch levelby deploying Field Vigilance Officer.
Programmes on vigilance awareness programs are undertaken at periodic interval atbranches / 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 platformand on the intranet site of the bank to avert frauds.
Use of Bio-metric access to office/ CBS system has been introduced to prevent possiblefraud threat.
Additional security features in CTS cheque is being incorporated to preventunauthorised debit from customers account by cloned cheque.
To further stem the possibility of fraud in the remittance through RTGS/ NEFT orpayment of outstation cheques the process of verification which used to take place at alater stage/ at the end of day had been added with the process as a second tierconfirmation only after which transaction will take place. Instructions were given toStrategic Planning Department for uploading the latest specimen card in Finacle Systemmasking the old specimen signature so as to avoid any confusion about which card is thelatest. Under our advice an offsite surveillance cell was constituted at Head OfficeInspection Department to look after the accounts of the staff for any suspicioustransactions.
III. Initiative taken by the organization for strengthening Whistle Blower Mechanism
Whistle Blower portal has been introduced in bank's 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 actionmay be taken.
All the complaints made through Whistle Blower portal are accessible to the ChiefVigilance Officer of the Bank only and not to anyone else.
Confidentiality of the contents and identity of the complainant are not disclosed toanyone.
IV. Initiative taken by the organization for inculcating ethical behavior in theorganization during the year 2018-19
Human Resource Department issues circulars/ notices from time to time advising all thestaff 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 vigilanceduring the current year:
|Name of the Program ||Institute ||Duration |
|One day Workshop for field Vigilance Officer (FVOs) ||Central Staff College Kolkata ||4th August 2018 |
|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 studyin all the training programmes conducted at Central Staff College and other RegionalTraining Centres across the country.
In addition Bank has nominated officers/ executives to different training programmes onvigilance matters organised by CBI Academy Ghaziabad International Management SchoolKolkata NIBM Pune and in other organizations.
24. OFFICIAL LANGUAGE:
The Bank was proactive in implementation of the Official Language policy of the UnionGovernment. The Bank also made suitable follow-up for implementation of the AnnualProgramme Hindi issued by Official Language Department Ministry of Home AffairsGovernment of India with regard to the use of official Language. During the period underreview the sub committees of the Parliamentary Committee on Official Language visitedourSri Nagar branch under our Deharadun Zone on 07.05.2018.
Town Official Language Implementation Committee Kolkata was awarded First Prizeamongst the TOLICs in Eastern Region by Official Language Department Ministry of HomeAffairs Government of India for excellence in implementation of Official Language duringthe Year 2017-18. UCO Bank Head Officeis the convener of this committee. VaranasiIndore Dharmshala Hyderabad Jodhpur Pune Begaluru Raipur and Bhubaneswar ZonalOffices and Allahabad and Ghazipur branches under Varanasi Zone as well as Himatnagarbranch under Ahmedabad Zone bagged prizes for their commendable performance in the fieldof Official Languages implementation in their respective cities. Besides Varanasi Zone'se-magazine Kashi Amrit Chandigarh Zone's e-Magazine Sankalp Indore Zone's e-magazineMalavanchal and New Delhi Zone's e-magazine UCO Indraprastha have been awarded by therespective TOLICs.
Under the aegis of Town Official Language Implementation Committee (Bank) Kolkata anAdvanced Translation Training Programme was organised from 10.12.2018 to 14.12.2018 withsupport from Central Translation Bureau Department of Official Language Home Ministryand Government of India. The programme was organised for the OL officers of the memberBanks at our Central Staff College Kolkata. A State-level Hindi seminar on "Role ofIndian Languages in Digital India" was organized in Patna on 5.12.2018 by the ZonalOffice Patna.
An All India UCO Bank Inter-Bank Hindi Essay Competition was organized on"Contribution of PSU Banks to the Economy of India" in February 2019. TheOfficial Language Conference was organized in Kolkata on March 15 2019 by the TownOfficial Language Implementation Committee (Bank). It is worth mentioning that UCO bankwas the convener of this committee.
Zonal Office Bhagalpur has been made Convener of Town Official Language ImplementationCommittee Bhagalpur by Department of Official Language Ministry of Home Affairs andGovernment of India.
25. COMPLIANCE DEPARTMENT:
Our Bank carries out the Compliance Functions mandated by the Reserve Bank of Indiawith enormous dedication. An enviable level of customer service is being ensured at alllevels of Bank's Network. Emphasis is being laid on continuous perfection in reporting ofKYC/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 2002as Reporting Entity (RE).
Compliance & KYC/AML Policies are being revisited / reviewed periodically andapproved 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 allBranches/Offices have been sensitized about the need for ensuring timely Compliancefunctions. Critical issues are being discussed at appropriate levels before being reportedto the Regulatory/Statutory Authorities thus enhancing the system efficacy.
Periodic interactions with Risk Management Department and Audit & InspectionDepartment is being done on critical control and compliance functions as a part ofeffective Risk Management and development of robust Compliance Culture.
26. FUTURE PLAN OF BANK:
Department of Financial Service is monitoring performance of all public sector Banksthrough Enhanced Access and Service Excellence (EASE) . To improve performance in EASEIndex among other banks is the main objective of our bank. Bank has Sankalp for the year2019-20 to come out of PCA and start earning Profit. For this Bank has prepared differentstrategies focussing more on i) Recovery ii) Resources & iii) Retail Agriculture andMSME(RAM) .Recovery of at least `2000 crore per quarter through relentless efforts andBank mantra is recovery Recovery and recovery. Zero tolerance on customer complaintsthrough strict adherence to compliance and control system and deepening products percustomer through cross selling our banking products and also marketing of Alternatedelivery channels. The future Plan of bank is reflected in SANKALP '2020' which envisagesturn around of the bank ensuring profitability this financial year.
Customer acquisition Promoting Govt. Flagship programme through Financial InclusionRevamping Credit Monitoring System and restricting Slippages through different measuresare other important areas of Banks concern.
HR strategy through differentiated Banking better employee relationship with betterproductivity 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 wovenaround its core values of transparency professionalism and accountability. By constantlyfocusing on these aspects in its day-to-day operations the Bank strives to enhanceshareholders' value. The Bank being committed to the principles of good governance itsBoard of Directors has formed various committees of the Board to monitor every aspect ofBank's business. The systems and business processes of the
Bank are continuously reviewed at various levels for identifying and strengtheningareas of weaknesses if any. The Directors of the Bank believe that good governance is thekey to earn trust loyalty and goodwill of clients business associates employees andinvestors 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 asManaging Director & CEO on the Board of UCO Bank w.e.f November 02 2018 for a periodof three years. Mr Anand Madhukar was nominated as Government Nominee Director on theBoard of UCO Bank w.e.f December 04 2018 till further orders. Mr Amit Chatterjee wasnominated as Part-time Non-official Director on the Board of the Bank w.e.f March 01 2019for 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. Thenumber of meetings of various Committees of the Board held during the period is givenbelow:
|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 holders' 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 Directors' Responsibility:
The Board of Directors confirm that in the preparation of the annual accounts for theyear ended March 31 2019 the applicable accounting standards have been followed alongwith proper explanation relating to material departures if any. The accounting policiesframed in accordance with the guidelines of Reserve Bank of India were consistentlyapplied. Reasonable and prudent judgements and estimates were made so as to give a trueand fair view of the state of affairs of the Bank at the end of the financial year and ofthe profit of the Bank for the year ended
March 31 2019. Proper and sufficient care was taken for the maintenance of adequateaccounting records in accordance with the provisions of applicable laws governing banks inIndia; and the accounts have been prepared on an on-going basis. Internal financialcontrols have been laid down by the bank for ensuring orderly conduct of business.
The Board welcomes the new Directors Mr K Rajivan Nair Dr. Asish Saha and looksforward to their valuable inputs towards the growth of the Bank. The Directors remainthankful to the Government of India Reserve Bank of India and other regulatoryauthorities for their support and valuable guidance. The Board also thanks other financialinstitutions and correspondent banks for their co-operation.
The Board of Directors expresses its gratitude to the loyal customers for their trustand continuous patronage of the Bank. The Board also thanks the staff unions/associationsand shareholders of the Bank for the support extended by them. The Directors place onrecord their deep appreciation of the dedication shown by each employee of the Bank.
By order of the Board of Directors
| ||sd/- |
| ||(A. K Goel) |
| ||Managing Director & |
|Place: Kolkata ||Chief Executive Officer |
|Date: 28th May 2019 || |