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Union Bank of India.

BSE: 532477 Sector: Financials
NSE: UNIONBANK ISIN Code: INE692A01016
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OPEN 45.60
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VOLUME 2466697
52-Week high 54.80
52-Week low 26.70
P/E 6.27
Mkt Cap.(Rs cr) 29,868
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
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Union Bank of India. (UNIONBANK) - Director Report

Company director report

Dear Shareholders

The Board of Directors are pleased to present the 102nd Annual Report of theBank for the Financial Year 202021 together with the ‘Audited Balance Sheet'‘Profit & Loss Account' ‘Cash-Flow Statement' and the report on‘Management Discussion & Analysis'. The ‘Corporate Governance Report' and‘Business Responsibility Report' also form part of the Annual Report 2020-21.

1. Highlights:

1.1 The year 2020-21 was dominated by the COVID-19 pandemic and the resultant globaleconomic downturn the most severe one since the Global Financial Crisis. The lockdownsand social distancing norms brought the already slowing global economy to a standstill. Asper the latest World Economic Outlook of International Monetary Fund (IMF) the Globaleconomic output contracted by 3.3% in 2020.

1.2 Governments and central banks across the world deployed a range of policy tools tosupport their economies such as lowering key policy rates quantitative easing measuresloan guarantees cash transfers and fiscal stimulus measures. The global economy isprojected to grow at 6% in 2021 moderating to 4.4% in 2022. Among advanced economies theUnited States is expected to surpass its pre-COVID GDP level this year while many othersin the group will return to their pre-COVID levels only in 2022. For emerging anddeveloping market economies China had already returned to pre- COVID GDP in 2020 whereasmany others are not expected to do so until 2023.

1.3 For the Indian economy the year 2020-21 was challenging due to both supply anddemand side disruptions due to the pandemic. The Indian economy entered a technicalrecession in the first half of FY21 with GDP plunging by 24.4% in Q1 FY21 7.4% in Q2FY21. India recognized the disruptive impact of the pandemic and charted its own uniquepath amidst its huge population high population density and an overburdened healthinfrastructure. The intense lockdown implemented at the start of the pandemiccharacterized India's unique response in several ways. The Government has ramped up itsfiscal spending through Atmanirbhar scheme and a favorable monetary policy ensured supportfor the economy.

1.4 Union Budget 2021-22 has further provided a strong fillip to the capex momentumwith clear emphasis on infrastructure investment as a key focus area to revive demandand overall growth.

Setting up the National Bank for Financing Infrastructure and Development (NaBFID) asthe principal Development Financial Institution (DFIs) for infrastructure financing andaiming to achieve lending of Rs.5 lakh crore in 3 years to infrastructure projects is animportant measure. It will also dovetail with the ongoing efforts of the government toenhance capital for implementing infrastructure projects under National InfrastructurePipeline (NIP). Further the setting up of an Asset Reconstruction and Asset ManagementCompany (ARC&AMC) to clear off the bad loans privatization of two PSU banks and theenhancement of FDI limits in insurance from existing 49% to 74% are some of the importantreform measures announced by the Government in the Budget.

1.5 During the year 2020-21 the RBI undertook several conventional and unconventionalmeasures to ensure ample system-level liquidity as well as targeted liquidity to supportvulnerable sectors institutions and financial instruments. The RBI ensured immediaterelief to debtors via temporary loan moratorium while unclogging monetary policytransmission. Besides this the regulator has allowed a one-time restructuring scheme tohelp companies and individuals to manage the financial stress caused by the Covid 19pandemic.

1.6 Prospects for 2021-22 have strengthened with the progress of the vaccinationprogramme. High frequency indicators point to the growth momentum gaining strengthespecially in the fourth quarter of FY 2020-21. The GDP shrugged off the contractions inthe preceding quarters and moved into expansion zone in the third and fourth quarter of FY2020-21. However the recent surge in infections has imparted greater uncertainty to theoutlook especially as localized and regional lockdowns could dampen the improvement indemand conditions and may delay the return of normalcy.

2. Bank's Performance

Established in the year 1919 your Bank has 9312 branches and 3 overseas branches12957 ATMs across 29 States and 5 Union Territories and 78202 employees as on March312021.

Key achievements during FY 2020-21:

• Net Interest Income for FY 21 stood at Rs.24688 crore.

• Operating profit for FY 21 stood at Rs.19259 crore.

• PCR stood at 81.27% as on March 312021

• Net NPA ratio stood at 4.62% as on March 31 2021

During FY 2020-21 your Bank has undergone many transformations/ adopted new processesas given below.

2.1 Amalgamation:

As a part of mega consolidation of Public Sector Banks Government of India videgazette dated March 04 2020 provided approval for amalgamation of Corporation Bank andAndhra Bank into Union Bank of India (Anchor Bank) and announced the said Amalgamationwould be effective from April 01 2020.

The amalgamation has significantly resulted in improving the geographical penetrationof Union Bank across the country. With the amalgamation Union Bank became the 5thlargest public sector Bank in terms of business with extensive network of offerings.

The bank has recognized amalgamation as an exercise in change management and leveragedthis as an opportunity for such transformation. Accordingly a detailed integration planwas prepared to ensure smooth transition to Amalgamation Effective Date (AED) with minimumcustomer disturbance and employee grievances.

Dedicated programme management office in the name of Amalgamation Management Office(AMO) was set up for better coordination with various verticals and smooth drive ofAmalgamation process. The project under which entire amalgamation related exercise hasbeen carried out in the Bank is named as "Project Samarth".

Programme Management Consultant M/s Boston Consultancy Group (BCG) was on-boarded forplanning designing guiding and ensuring the implementation of all aspects required forsuccessful completion of the amalgamation. AMO in close coordination with BCG CorporateVerticals and field functionaries has initiated the amalgamation process with followingbroad objectives:

While initiating amalgamation process emphasis has been provided mainly on unlockingthe multiple levers having multiple inter-linked complexities.

After identification plan and road map for amalgamation has been defined andstrategized. Based on criticality of functions the amalgamation process was divided intoPre Amalgamation Effective Date (Pre-AED) AED and posts AED phases.

31 functional committees representing the functions of all verticals were created tohandle the basic work of harmonization of activities resolving issues and escalatingunresolved issues. Each committee was represented by members of all 3 Banks who met onregular frequency to arrive at a detailed Master Amalgamation Plan (MAP).

For ensuring branches are adequately supported in amalgamation process a peer basedprogram- Buddy Branch Program- is launched to handhold branches of erstwhile Andhra Bankand erstwhile Corporation Bank. This program was intended to build coordination acrossbranches quicker resolution of queries and people integration.

Creating awareness about the benefits of amalgamation to customers employees and otherstakeholders about the changes was important for the Bank to address the apprehensions.For this a robust communication plan was activated with multiple channels. Stakeholdersare categorised into 3 categories i.e. Customers Employees and other stakeholders.

Along with the above preparedness at corporate level various long term approaches werealso strategized to handhold branches to ensure AED readiness. Communication channels suchas Branch Handbooks Microsite etc. were set up to ensure single source of communicationfor all amalgamation updates. FAQs and Branch level dos and don'ts created and circulatedbased on field experience.

With the objective of getting employees to know each other as a team building a sharedunderstanding and foster culture of one Bank going forward a series of activities such asleadership summit "Triveni Sangam" People's survey value survey culturalintegration summit for all DGMs AGMs and Branch Managers has been conducted for cultureintegration and change management. Sessions of guest speakers has been arranged for changeworkforce profoundly on mental and emotional aspect.

Training Architecture for the Amalgamated entity was defined and various large scalefunctional training sessions Soft skills Training sessions and leadership workshops havebeen arranged for better understanding and working effectively. Key functional trainingsthrough e-learning portal have also been arranged.

With the above preparedness the Bank has achieved the AED transition smoothly withoutdisruption to customers as planned. The business was continued as usual.

However there are some of the initiatives which were deferred in view of the COVID-19pandemic but rolled out all the deferred activities by 30.06.2020.

Post AED bank has decided to continue with 4 tier Organization structure for effectivemonitoring and management. Future ready Organization structure for Central Office andfield has been designed to ensure high accountability and fulfilling strategic imperativesfor the bank.

Field organization structure footprint in the form of 18 FGMO (Field General ManagerOffice) and 125 RO (Regional Offices) planned to strengthen pan India presence.Structures of RO-FGMO at field are constituted as mirror image of Central Office. RO-FGMOlocations evaluated basis a number of dimensions such as Business footprint Branch spansBusiness potential Geographical layout Connectivity Strategic importance includingProximity to service credit centres and cost of establishment.

With roll out of field organization structure various specialized structure has alsobeen rolled out for focussed growth under identified areas.

After process unification a clear IT integration road map was formed much before AED.It inter alia included provisions of various hardware requirements on boarding vendorsdependencies availability of resources compatibility of systems etc. This advancedplanning helped the bank in concluding one of the fastest IT merger in banking history.

Core Banking Solutions (CBS) along with all CBS and non-CBS applications have beenintegrated in a structured and well defined manner to ensure minimal disruption to the endusers. Bank leveraged this opportunity to improve Bank's digital offerings to each segmentand ensuring better customer experience useful to lay down the foundation of furthergrowth.

Capturing synergy is one of the key rationale for amalgamation of banks. Multiplesynergy opportunities in terms of Revenue expansion cost reduction businessrationalization have been planned. The plan has identified both recurring and one-timeacross functions with estimated cumulative monetary value in the next 3 years.

Around 70+ initiatives were identified across verticals broadly the following subheads:

• Cost Synergy by way of optimization of physical distribution of network andrealization of resources such as Branch & ATM network rationalization employeealignment monetization of real estate assets Vendor rationalization and integration ofIT systems.

• Revenue synergy by way of cross sell & sales acceleration fee incomeimprovement and harmonization of service & penal charges. Thus the amalgamation haslaid the foundation for the Bank to fulfil the vision of "Future Ready Bank".

2.2 EASE (Enhanced Access and Service Excellence):

Enhanced Access and Service Excellence (EASE) was launched by Government of India inthe financial year 2018-19 to increase efficiency of PSBs across every domain and tomeasure the performance on a common index on quarterly basis.

EASE 3.0 an augmented version of EASE 1.0 and EASE 2.0 set the implementation roadmapfor FY 2020-21 with 5 Themes and 27 Action Points. Your bank with continuous improvementin performance secured 3rd position in overall ranking for the quarter ended December2020 as against 8th rank in the baseline quarter ended March 2020. You bank was among top3 banks in 4 out of 5 themes.

The Bank has taken several initiatives and implemented measures to improve efficiencyunder EASE agenda including:

• Implemented digital journey for lead generation through 5 channels (SMS MissedCall Internet Banking Mobile Banking and Call Centre) for 6 Products (Personal LoanHome Loan Vehicle Loan Credit Card MSMe loan and Shishu Mudra).

• Implemented analytical rule based engine to generate offers for Pre-ApprovedPersonal Loans Housing Loan take over Housing Loan top-up and working capitalenhancement for MSME with end to end digital journey.

• Launched end-to-end Straight Through Processing for Pre-approved Personal LoansShishu Mudra loans and renewal of MSME Loans.

• Implemented lead registration for KCC Loan through Mobile Banking app.

• Re-designed Performance Management System through digital & IT tools withfocus on talent management performance management and Rewards & Recognition.

EASE 4.0 reforms agenda sets implementation roadmap for FY 2021-22 with 6 Themes and 26Action Points with focus on Technology-Enabled Collaborative & Simplified Banking.Your bank has been fast adopting technology advancements to benefit its large customerbase. Your bank is also contributing in nation building through its improvisation inprocess and products ranging from financial inclusion to infrastructure lending. Your bankhas shown a significant improvement in its performance under EASE 3.0 parameters in FY2020-21 and will strive to continue its stride in coming days.

2.3 Online Sales of Union Mutual Fund Schemes- In order to promote digitization thebank has been working closely with respective channel partners to develop systemcapabilities which would enable customers to buy third party products like Insurance andMutual Fund online using the Bank's technology interfaces. Facility to buy Union MutualFund schemes through Bank's website and U-Mobile App has been commenced.

2.4 New UMobile App based services :

• Option to buy PMJJBY insurance cover through UMobile App has been enabled.

• Mobile Banking services enabled for NRIs.

• Under value added services new features such as Setting of Standing Instructions& Personalize Transaction Limits.

• New Credit Card module providing facility to Make payment Set PIN.

2.5 Launched the Treasury- FX Retail an electronic trading platform designed byClearing Corporation of India Ltd which provides for buying/selling of foreign exchange byretail customers of the bank.

During the current FY 2020-21 the Bank has added 88 new clients in this segment.

2.6 Specialization in Monitoring and Recovery:

Your Bank has taken many proactive steps for monitoring of loans like;

• Specialized cell for monitoring of accounts in the range of Rs.100.00 crore toRs.250.00 crore and above both headed by Senior Executives.

• A system of identifying Early Warning Signals(EWS) has been put in place toproactively identify the signals of Stress/ Warnings in the borrowal accounts tofacilitate taking timely corrective steps.

• Advanced analytical tools are being utilized to predict Early Stress Signalscovering non SMA and non NPA portfolio of the Bank's advances to facilitate initiatingnecessary measures to maintain the health of the Loan Book.

2.7 Your Bank is adopting the centralization /automation /integration of internalbusiness processes in order to enhance quality of IT services. It is taking substantialmeasures in securing the IT assets of the Bank by implementing best-in-class IT Securityand Risk Management Framework.

2.8 Your Bank is also thriving to streamline the banking services for customers withcutting edge technology. Door step Banking for Financial and Non-financial servicesincluding Jeevan Pramaan facility Government e-Marketplace for Corporate CustomersFASTag integration for individual and corporate customers Positive pay facilityReal-time integration with PMSVANidhi portal GREEN PIN facility for all customers of theBank at all the ATM terminals Automated e-stamping and e-signing through NSELDIAL-A-LOAN facility for various loan products uptoRs. 5 crore Straight throughprocessing of online retail and MSME loans implementation of E2E Digitisation for ShishuMudra Loans upto Rs.50000 Current account opening from Ministry of Corporate Affairs(MCA) Potal Mobile Banking for NRIs facility to apply for PMJJBY through Mobile BankingNCMC technology in PoS machines for accepting contactless RuPay debit cards Depositcalculator for calculating of maturity value of deposit UToken facility through separatemobile app for generation of OTP in addition to the existing mode of OTP on mobile Creditcard module are some of the major initiatives taken during the FY 2020-21.

During 2020-21 the overall digital transactions grew from 74.43% in Mar'20 to 79.11%in Mar'21 registering a growth of around 5% during the year.

2.9 As a part of business process transformation your Bank has envisaged technologyinnovations in providing hassle free services by launching HRMS mobile application onandroid and iOS platform for its valuable employees for immediate sanctioning anddisbursement of perks and allowances. This application is secured with OTP based loginauthentication mechanism to enable the employees 24*7 access to carry out their day-to-dayHR related activities on the fly. Bank's retired employees can also access this mobile appfor pension details and medical insurance scheme.

2.10 Cyber Security Operation Centre (CSOC):Bank has implemented cyber securityframework and instituted Cyber Security Operation Centre. A dedicated skilled team isdeployed to manage the CSOC. The CSOC helps to identify detect protect & prevent thecyber threats.

3. Business Highlights:

3.1 The global business of the Bank stood at Rs.1577490 crore as on March 312021.

3.2 Total Deposits increased to Rs.923805 crore as on March 31 2021. Out of thisCASA share (current account and saving account) stood at 36.33 % as on March 312021.

3.3 Gross Advances stood at Rs. 653684 crore as on March 312021.The RAM (RetailAgriculture and MSME) sector stood at Rs.367825crore as on March 31 2021 compared toRs. 339318crore as on March 31 2020. RAM Sector as a whole grew at an annual rate of8.40 %.

3.4 Overseas business of the Bank stood at Rs.18191 crore as on March 31 2021compared to Rs.24345 crore as on March 31 2020. Your Bank has three overseas branches atHong Kong DIFC (Dubai) and Sydney

(Australia). Your Bank also operates in the United Kingdom through its wholly ownedsubsidiary Union Bank of India (UK) Ltd

4. Income and Expenditure:

Table 1: Income and Expenditure Statement (Rs. in crore)

Sl. Parameter FY 2020-21 FY 2019-20*
1 Interest Earned 68767 37231
2 Other Income 11337 5261
3 Total Income (1+2) 80104 42492
4 Interest Expended 44079 25794
5 Net Interest Income (1-4) 24688 11437
6 Operating Expenses 16766 7516
w/w Establishment Expenses 9025 3359
7 Total Expenditure 60845 33311
8 Operating Profit (3-7) 19259 9181
9 Provisions 16353 12079
10 Net Profit/Loss 2906 -2898
11 Earnings per share (in Rs.) 4.54 -12.49

*Figures are related to standalone Union Bank of India financial results for preamalgamation period hence not comparable with post amalgamation financial results for theyear ended March 312021.

5. Profitability and Efficiency:

5.1 Your Bank reported an Operating Profit of Rs.19259 crore in FY 2020-21 as comparedto Rs.9181crore in FY 2019-20.

5.2 Netprofit of the Bank stood at Rs.2906 crore in FY 2020-21.

5.3 Cost-to-income ratio of your Bank stood at 46.54 % in FY 2020-21

5.4 During FY 2020-21 Return on Average Assets stood at 0.27% whereas Return onEquity stood at 6.68%.

Table 2: Efficiency Ratios

Parameter (%) FY 2020-21 FY 2019-20*
Return on Average Assets 0.27 (-) 0.53
Return on Equity 6.68 (-) 12.52

5.5 The following are the key productivity ratios of the Bank for FY 2020-21.

Table 3: Productivity Ratios

Parameter FY2020-21 FY2019-20*
Business per Employee (Rs. in crore) 20.17 21.37
Business per Branch (Rs. in crore) 169.35 186.18
Gross Profit per Employee (Rs. in lakh) 24.63 24.60

5.6 Dividend:

Board of the Bank has not recommended any dividend for FY 2020-21.

6. Shareholders' Return:

6.1 The Bank's net worth was Rs. 43507 crore as on March 312021*.

*Figures are realated to standalone Union Bank of India financial results for postamalgamation period hence not comparable with pre amalgamation financial results for theyear ended March 312020.

7. Asset Quality:

7.1 Gross Non-Performing Assets (GNPA) of the Bank stood at Rs.89788 crore as on March31 2021. GNPA as per cent to gross advances stood at 13.74 % as on March 312021.

8. Capital Adequacy :

8.1 The Capital Adequacy Ratio as per BASEL III norms stood at 12.56% as on March 312021.Common Equity Tier I (CET I) capital of the Bank stood at 9.07% in March 2021.

7.2 Net NPA of the Bank stood at Rs.27281 crore as on March 312021 and the Net NPAratio stood at 4.62 % as on March 312021.

Table 4: Capital Adequacy Ratios - B;

( Rs. in crore)

Parameters RBI Minimum Benchmark March 31 2021 March 31 2021 March 31 2020 (Pre amalgamation)
Total Risk Weighted Assets 551521 294984
Total Capital Funds NA 69262 37790
CET 1 Capital 50001 27714
Tier 1 Capital 57090 31714
CRAR (%) 10.875 12.56 12.81
CET 1 (%) 7.375 9.07 9.40
Tier 1 (%) 8.875 10.35 10.75
Tier 2 (%) NA 2.21 2.06

Note: RBI minimum benchmarks are including CCB (Capital Conservation buffer) of 1.875per cent in CRAR CET 1 and Tier 1 ratios. There is no minimum for Tier II ratio.

8.2 Capital raised by the Bank

The Bank has issued and allotted Basel III compliant Tier 1 Bonds of Rs.1705 crore andTier II Bonds of Rs.2000 crore during the FY 2020-21.

9. Network

Network of your Bank is spread across the country with 9312 branches as on March312021. The Bank also has threefull fledged overseas branches. Out of these 56% of thebranches are located in rural and semi-urban centres. The Bank has network of 12957 ATMsas on March 312021.

10. Awards & Accolades:

During FY 2020-21 your Bank received various awards for its new initiatives taken inDigitization Financial Inclusion HR management Customer Service etc.

Awarded By Category Year
National Feather Award Hall of Fame Award for MD & CEO

30-Apr-21

Best Advance in Competency Management
Best in Training & Organizational Development
CHRO of the year
Golden Peacock Golden Peacock HR Excellence Award - 2020 Apr-21
Apex India HR Excellence Awards & Business Excellence Awards Apex India Best Strategy in HR 2020

Apr-21

Apex India HR Oriented CEO Award 2020
Greentech HR Award Technology Excellence

Feb-2021

Leading CEO of the year
Global HR Excellence Award by World HRD Congress Best Service Provider in HR

Feb-2021

Award for Excellence in Learning & Development
CHRO of the Year
World CSR Congress CEO of the Year

Feb-2021

Best Training solutions during COVID 19 times
The Future of Tech Congress & Awards presents ‘The Internet Entrepreneur Awards The best Digital Transformation of a training programme in response to Covid 19 Oct-2020
Golden Peacock Golden Peacock National Training Award 2020 July-2020

11. Social Media:

11.1 Your Bank has expanded the reach across all the major social media platforms likeFacebook Twitter Instagram YouTube and LinkedIn under project Union Connect.Your Bank'sofficial pages are very responsive and reply within minutes.

11.2 As a part of Digital Marketing your Bank is also engaged in e-commerce businesstie-ups to promote Bank's products & services. Bank conducts campaigns through GoogleAds YouTube and LinkedIn to promote it's products and services and get more reach onCorporate Website.

The total followers on official Social Media handles of your Bank as at March 2021stood at 19.51 lakh.

12. Changes in the Directors on the Board of the Bank:

The following changes took place in the Board of directors of your Bank during thefinancial year 2020-21.

• Shri Nitesh Ranjan has been appointed as an Executive Director in the Board ofthe Bank on March 10 2021.

• Shri Birupaksha Mishra has been appointed as an Executive Director in the Boardof the Bank on April 01 2020 and completed his term in the office on January 31 2021upon superannuation.

• Shri Rajiv Kumar Singh Chartered Accountant Category Director of the Bank hascompleted his term in the office on February 5 2021.

• Dr. Madhura Swaminathan Part-Time NonOfficial Director of the Bank hascompleted her term in the office on December 26 2020.

• Shri Kewal Handa Non-Executive Chairman and Part-Time Non-Official Director ofthe Bank has completed his term in the office on July 5 2020.

13. Directors' Responsibility Statement

The Directors confirm that in the preparation of the annual accounts for the year ended31stMarch 2021:

• The applicable Accounting Standards had been followed along with properexplanation relating to material departures if any.

• Accounting Policies had been selected and applied them consistently and madejudgments and estimates that are reasonable and prudent so as to give a true and fair viewof the state of affairs of the Bank at the end of the financial year and of the profit andloss of the Bank for that period.

• Proper and sufficient care was taken for the maintenance of adequate AccountRecords in accordance with the provisions of the relevant Acts for safeguarding the assetsof the bank and for preventing and detecting fraud and other irregularities.

• The Annual Accounts were prepared on a going concern basis.

• Internal financial controls had been laid down to be followed by the bank andthat such internal financial controls are adequate and were operatingeffectively.Explanation.- For the purposes of this clause the term "internalfinancial controls" means the policies and procedures adopted by the Bank forensuring the orderly and efficient conduct of its business including adherence to Bank'spolicies the safeguarding of its assets the prevention and detection of frauds anderrors the accuracy and completeness of the accounting recods and the timely preparationof reliable financial information.

• Proper systems were in place to ensure compliance with the provisions of allapplicable laws and that such systems were adequate and operating effectively.

14. Corporate Governance

The Board of the Bank is committed to adopt good Corporate Governance practices inletter and spirit. A detailed report on Corporate Governance is given in a separatesection of the Annual Report. The Corporate Governance report for financial year 2020-21has no audit qualifications.

15. Corporate Social Responsibility (CSR):

15.1 Union Bank of India has been in the forefront in meeting its CSR commitments.Towards this the Bank has established Union Bank Social Foundation Trust (UBSFT) in theyear 2006 as an extended arm for carrying out the CSR activities of the Bank. The majorCSR activities of the Bank are now being carried out through the UBSFT. Its Board isheaded by the Bank's Managing Director & CEO with executive directors as Vice ChairmanTrustees other trustees include the Bank's General Managers and one independent trustee.The UBSFT Board provides directions in accordance with the Bank's thrust areas andundertakes review every quarter. The directions of the Board are executed by the ChiefExecutive of UBSFT. While the Registered office of UBSFT is at Bengaluru theadministrative office is at Mumbai.

Bank has also formed CSR committee of the directors of the Bank to monitor and guidethe CSR activity of the bank so also that of UBSFT on quarterly basis. The committee isHeaded by MD & CEO Executive directors and one part time nonofficial Directornominated under 9(3)(h) of the Banking Companies (Acquisition & transfer ofUndertaking) Act 1970 and one Share holder director elected under section 9(3)(i) of theBanking Companies (Acquisition & transfer of Undertaking) Act 1970.

UBSFT has been incorporated aiming to support initiatives towards Social upliftment& improving lives of underprivileged segments.

15.2 The CSR activities undertaken by the Bank in 2020-21

UBSFT has approved 6 projects involving an amount of Rs.78.09 lacs during the year2020-21 under various sectors like Education Health care Community DevelopmentSanitation etc. details of which are given below:

• Supported Narayana Hrudayalaya Bengaluru Karnataka for purchase of twoventilators at a cost of Rs. 11.20 lakh for treating COVID 19 patients.

• Supported Mulki Sunder Ram Shetty Memorial Charitable trust Mulki Karnatakafor purchasing of one generator set at a cost of Rs. 14.75 lakh for their conventioncentre.

• Supported 3 Government schools in Palghar district for construction of toiletblocks at a cost of Rs. 20.32 lakh. Project implemented through Rotary Club of BombayQueen City Foundation.

• Supported Municipal Corporation Machilipatanam for construction of one RCC Busshelter at a cost of Rs. 2.50 lakh.

• Supported Bhavita Special school Machilipatanam for construction of ironcompound wall and purchase of physio therapy equipments at a cost of Rs. 3.82 lakh.

• Approved for setting up of mini science laboratory at a cost of Rs. 25.50 lakhfor visually challenged students at NAB Worli centre.

16. Acknowledgement:

16.1 The Directors thank the shareholders valued customers well-wishers ShareTransfer Agent and correspondents of the Bank in India and abroad for their goodwillpatronage and support.

16.2 The Directors acknowledge with gratitude the valuable and timely advice guidanceand support received from Government of India Government of Maharashtra Reserve Bank ofIndia Securities & Exchange Board of India Insurance Regulatory and DevelopmentAuthority of India Central Vigilance Commission BSE NSE financial institutionscorrespondent Banks and Statutory Central Auditors of the Bank in the functioning of theBank.

16.3 The Directors place on record their deep appreciation for the dedicated serviceand valuable contribution made by members of staff in the overall performance of the Bankduring the year and look forward to their continued co-operation in the realisation of thecorporate goals of the Bank in the years ahead.

16.4 The Directors express deep condolences and gratitude for the members of the staffwho lost their precious lives during COVID-19 Pandemic. The Directors also express thatthe staff members stay safe healthy and maintain good health.

For and on behalf of the Board of Directors

Place : Mumbai (Rajkiran Rai G)
Date : 05.07.2021 Managing Director & CEO

.