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United Bank of India.

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52-Week high 13.25
52-Week low 6.50
Mkt Cap.(Rs cr) 5,571
Buy Price 7.50
Buy Qty 1375.00
Sell Price 7.54
Sell Qty 1070.00

United Bank of India. (UNITEDBNK) - Director Report

Company director report

The Board of Directors have pleasure in presenting the 69thAnnual Report of the Bankalong with the Audited Balance Sheet Profit and Loss

Account and the report on Business and Operations for the year ended March 31 2019(FY2018-19).


The Board of Directors have pleasure in presenting the 69thAnnual Report of the Bankalong with the Audited Balance Sheet Profit and Loss

Account and the report on Business and Operations for the year ended March 31 2019(FY2018-19).

Global Economic Outlook:

The Global Economy had a strong growth in 2017 and early 2018. However global economicactivity slowed significantly in the second half of 2018 reflecting a various factorsaffecting major economies. Global growth is now projected to slow from 3.6 % in 2018 to3.3 % in 2019. As Global growth is expected to hover around 3.0 % in 2019 and 2020 itmasks an increase in downside risks that could potentially threaten development challengesin many parts of the world. The global economy is facing a confluence of risks whichcould severely disrupt economic damage on longer-term development prospects. These risksinclude an escalation of trade disputes an abrupt activity and inflict significanttightening of global financial conditions and intensifying climate risks. In manydeveloped countries growth rates have risen close to their potential while unemploymentrates have dropped to historical lows. Among the developing economies the East and SouthAsia regions remain on a relatively strong growth trajectory amid robust domestic demandconditions. While economic activity in the commodity-exporting countries notably fuelexporters is gradually recovering growth remains susceptible to volatile commodityprices. For these economies the sharp drop in global commodity prices has continued toweigh on fiscal and external balances while leaving a legacy of higher levels of debt.

The global growth outlook for 2019 remains steady although the underlying downsiderisks have risen. The gradual monetary policy normalisation in advanced economies (AEs) asalso the uncertainty in global trade regime may adversely affect capital flows to emergingmarkets (EMs) and exert upward pressure on EM interest rates and corporate spreads. In themeanwhile commodity prices particularly oil have softened mostly driven by excesssupply of US shale oil uncertainty about Chinese demand and on supply concerns from Iranturning out softer than anticipated. In India growth of gross domestic product (GDP)showed slight moderation while inflation remains contained. Fiscal consolidation remainsimportant for financial financialconditions turn adverse. The impact of oil prices feedinginto input costs remains uncertain stabilityasglobal with potential implications forIndia's terms of trade. In the domestic financial markets structural shifts in creditintermediation and the evolving interconnectivity between banks and the non-banks call forgreater vigilance

The performance of PSBs in the MSME segment trails that of other intermediaries viz.private sector banks and nonbanking financialcompanies

(NBFC). This is both in terms of inherent as well as realised credit risk underscoringthe need to improve credit appraisal skills.

The global financialcrisis (GFC) bank capital regime appears to have increasedsystemic resilience. In the global financial to a post-LIBOR world remains a work inprogress. On the domestic front the Reserve Bank initiated several policy measures todeepen the government securities (G-Sec) and Repo markets. In the capital marketinvestment through Systematic Investment plans (SIPs) in mutual funds remains a brightspot.

Bad Debts in Banks:

The gross NPA ratio might decline from 10.8% in September 2018 to 10.3% in March 2019and 10.20 % in September 2019. Bad loans of public sector banks (PSBs) declining by overRs 23000 Crore from a peak of Rs 9.62 Lakh crore in March 2018.

The Government of India has promulgated an ordinance which amends section 35A of theBanking Regulation Act 1949 and inserts section 35AA and section 35AB in the BankingRegulation Act. The ordinance authorises the "Reserve Bank of India to issuedirections to any banking company or banking companies to initiate insolvency resolutionprocess in respect of a default under the provisions of the Insolvency and Bankruptcy Code(IBC) 2016".

It also empowers RBI to set up sector related oversight panels that will shield bankersfrom later action by probe agencies looking into loan recasts. The government had earlierenacted the IBC to consolidate and amend the laws relating to reorganization andinsolvency resolution of corporate persons partnership firms and individuals in a timebound manner. It was aimed at maximizing the value of assets to promote entrepreneurshipavailability of credit and balance the interest of all stakeholders.

Government has recently announced PSBs reforms agenda for responsive and responsiblebanking which encapsulates a synergistic approach for ensuring prudential and cleanlending better customer service enhanced credit availability focus on micro small andmedium enterprises. The performance of the reforms agenda is being monitoring andsupervision by BCG through a project by the name "Digital Interface for PerformanceAssessment of Key Action Points" i.e. "DIPAK".

These are steps in the right direction to reduce NPA of banks in general and our Bankin particular.


Gross Value Added (GVA) at basic prices in agriculture and allied activitiesdecelerated in H2: 2018-19 on account of a number of factors operating in conjunctionviz. the poor performance of the southwest and northeast monsoons lower water reservoirlevels in the eastern and western regions. Factor like the poor performance of thesouthwest and northeast monsoons lower water reservoir levels in the eastern and westernregions; unremunerative prices for farm produce and the lack of traction in foodmanagement policies to deal with large excess supplies led to a shortfall of (-) 3.8% intotal rabi sowing from the previous year's acreage.

Consequent upon the release of the SAE of crop production for 2018-19 which indicateda minor upward revision in the production of kharif food grains but a lower-than targetedrabi harvest agricultural GVA growth for the year was revised downwards to 2.7% from 3.8%in the CSO's first advance estimates

Horticultural crop production was at a record level of 315 million tonnes during2018-19 driven mainly by spices aromatics and medicinal flowers and vegetables. In therecent period allied activities which include livestock forestry and fishing havecontributed around three-fourth of overall GVA growth of the sector


The Index of Industrial production (IIP) cumulative growth slow April 2018 to March2019 at 3.6% over corresponding the year-ago period. The growth for Index ofManufacturing Mining and Electricity was (-) 0.4% 0.8% & 2.2% respectively duringMar'2019. Slower growth is mainly seen in the manufacturing sector where sub-sectors suchas refinery products basic metals chemical and leather products saw weakness. Theuse-based classification the Index for Primary goods Infrastructure/ construction goods& Consumer non-durables registered positive growth of 2.5%6.4% & 0.3%respectively while the index for Capital goods Intermediate goods & Consumer durablesregistered negative growth of (-)8.7%(-)2.5%& 5.1% respectively Mar'2019.


The all India Consumer Price Index-Combined (CPI-C) inflation declined to 2.86% inMarch 2019 from 4.28% in March 2018. Food inflation based on Consumer Food Price Index(CFPI) decreased to 0.30% in March 2019 from 2.81% in March 2018.

India's Wholesale Price Index (WPI):

Wholesale price-based inflation stood at 3.18% for the month of March 2019 against2.74% in March 2018. The Wholesale Price Index (WPI) based inflation was 2.93% inFebruary 2018. The spike in WPI inflation comes on the back of costlier food and fuelproducts. Vegetables inflation came at 28.13% in March 2019 increased from 6.82 % in themonth of February. The inflation in fuel and power category rose to 5.41% in March 2019from 2.23 % in February.

Capital Market:

India's current account deficit (CAD) stood at $16.9 billion (or 2.6% of GDP) in thethird quarter of fiscal 2019 (Q3 FY19) lower than $19.1 billion (2.9% of GDP) in theprevious quarter but higher than $13.7 billion (2.1% of GDP) in the same quarter lastyear.CAD moderated as total trade deficit reduced $1.6 billion on-quarter to $28.1 billionin Q3 FY19. The rise in services trade surplus was the main contributor to this decline.Goods trade deficit also reduced but to a lesser extent.

Money and Credit

Based on trend estimates banknotes in circulation could potentially reach around Rs20.9 trillion by FY19 (or 11.1% of GDP); it was Rs 20.4 trillion at end-January 2019.

Growth of Aggregate Deposits of Scheduled Commercial Banks (SCBs)

Banking credit continued to post double-digit growth registering 14.1% increaseon-year as of March 15 2019. However growth was still not broad-based as industrialcredit growth continued to remain anaemic. As of February 2018 industrial credit (whichaccounts for ~33% of gross bank credit) grew at ~5.6% on-year while the services sector(which accounts for ~27% of gross bank credit) and retail segment (which accounts for ~26%of gross credit) registered strong growth of ~23% and ~17% on-year respectively drivenby strong consumption demand and higher credit requirement by non-banks. Deposit growthtoo improved up ~9.5% on-year as of March 15 2019.

Foreign Trade

India's overall exports (Merchandise and Services combined) in April-March 2018-19 areestimated to be USD 535.45 Billion exhibiting a positive growth of 7.97% over the sameperiod last year. Overall imports in April-March 2018-19 are estimated to be USD 631.29Billion exhibiting a positive growth of 8.48% over the same period last year.

Cumulative value of exports for the period April-March 2018-19 was USD 331 Billion (Rs2314429 Cr) as against USD304 Billion (Rs 1956515 Cr) during the period April-March2017-18 registering a positive growth of 9.06% in Dollar terms (18.29% in Rupee terms).

Cumulative value of imports for the period April-March 2018-19 was USD 507 Billion (Rs3548004 Cr) as against USD 466 Billion (Rs 3001033 Cr) during the period April-March2017-18 registering a positive growth of 8.99% in Dollar terms (18.23% in Rupee terms).

Future Prospects

For the fiscal 2020 relatively low oil prices and the slowing pace of policynormalisation in the US will likely check the rupee's depreciation. Therefore we expectthe rupee to weaken modestly and average 72/$ on average by March 2020. Our forecast forMarch 2019 is average 71/$. However given India is a current-account-deficit country therupee is vulnerable to volatility from oil prices tariff wars and monetary policysurprises from advanced countries


Bank's performance during the year was delimited by setting of priorities forgaining desired results in the fields of asset quality and recovery of bad assets. Due tocapital constraint and in compliance with direction of the Govt. of India as Bank'sadvance was restricted based on the Risk Weighted Assets of the Bank. The main performanceindicators of growth profitability efficiency Bank has registered an Operating Profitof Rs 1412 crore during the financial year 2018-19 compared to Rs1024 crore in thefinancial year 2017-18 registering a growth of Rs 388 crore (37.89 %). Due to high NPA& higher provisioning of NCLT referred accounts Bank's bottom line was squeezed andthe Bank suffered a net loss of Rs 2316 crore in FY 2018-19 compared to a Net Loss of Rs1454 crore in FY 2017-18. Gross Profitper employee increased from Rs 6.91 lakh as onMar'18 to Rs 10.23 lakh as on Mar'19.

Key Financial Ratios (%) March 2018 March 2019
Cost of Funds 5.38 5.07
Yield on Funds 9.29 9.10
Cost of Deposits 5.30 4.96
Yield on Advances 7.35 7.49
Yield on Investments 7.62 7.66
Spread as a % of AWF 1.07 1.36
Net Interest Margin (NIM) 1.66 2.10
Operating Expenses to AWF* 1.92 2.03
Return on Avg. Assets (RoAA) (1.04) (1.60)
Return on Equity (33.06) (49.29)
Business per Employee (Rs In Crore) 13.22 14.96
Profit per Employee ( Rs In Lakh) 6.91 10.23
Profit per Branch ( Rs In Lakh) 49.78 68.69
Book Value per share 14.64 6.73

*AWF Average Working Fund

Income and Expenditure Analysis

Interest income of the Bank increased to Rs 8560 crore in 2018-19 compared to Rs 8342crore earned during the year 2017-18. Interest income being a direct function of growth inadvances and the rate of interest charged. Bank revised its MCLR four times during theyear 2018-19. Non-interest income increased by Rs 170 crore from Rs 2215 crore in thefinancial year 2017-18 to Rs 2385 crore in the financial year 2018-19. Yield on Advancesincreased to 7.49 % as at March 2019 compared to 7.35 % as at March 2018.

Interest Expenditure declined by Rs 264 crore to Rs 6585 crore in 2018-19 compared toRs 6849 crore in 2017-18. Lower interest expenditure was ensured by slashing of therate of interest on retail term deposits in all the brackets. The Cost of Deposit camedown from 5.30% in 2017-18 to 4.96% in 2018-19. Operating expenses increased from Rs 2683Crore in March 2018 to Rs 2948 crore in March 2019.


Deposits of the Bank reached to Rs 134983 crore as on 31st March 2019 registering aY-o-Y growth of 4.37 %. Bank's Savings deposits grew by 10.48 % to reach a level of Rs58272 Crore as on March 31 2019. Share of CASA deposits to total deposits stood at 51.45% as on March 31 2019. Bank's retail term deposit stood at Rs 63681 crore with a declinedby Rs 242 Crore (0.38% ) on Y-o-Y. Share of Bulk Deposits further declined to reach at1.37 % as on March 2019 from 2.13 % as on March 2018.

The customer base of the Bank has reached to 3.88 core as on 31March 2019.


Gross Advances of the Bank Increased by Rs 4431 crore (6.45 %) and reached at Rs 73123crore as on March 31 2019. Credit deposit ratio stood at 54.17 % as on March 2019. Bankachieved the PRISEC Advance target of 40 % of ANBC. Intensive marketing of retail creditproducts brought considerable growth in Retail Advances supported by increase in HousingLoan.

Bank's non-food credit increased from Rs 68111 crore to Rs 71549 Crore and food creditalso increased from Rs 581crore as on March 31 2018 to 1574 Crore at the end of 31March2019.

Total Business:

The total business of the Bank reached to Rs 208106 crore at the end of the currentfinancial year 2018-19.

Productivity as measured by business per employee increased from

Rs 13.22 crore as on 31.03.2018 to Rs 14.96 crore as on 31.03.2019.


Retail Credit has been one of the major thrust areas of the bank during FY 2018-19.Bank has laid emphasis on sanctioning Retail Loans with focus on Housing Loan & carloan which are major contributors to growth under Retail credit & comprised 82.99 % oftotal Retail Credit portfolio of the Bank.

Steps taken for growth of business in Retail Loan segment:

• A contest in the name and style "United Retail League- Maha FestiveDhamaka" was launched for the period from 01.10.2018 to 31.03.2019. 4698 number ofHousing Loans proposals amounting to Rs 778.50 Crore were sanctioned during the contest.

• Home loan Counselors were engaged for mobilizing housing loan for ticket size ofRs30 lakh & Above.

• Bank has executed MoU with Assam Govt for extending Housing Loan under thescheme "APON GHAR" to the employees of Assam Govt. a Bank has launcheda new variant of Housing Loans under "United Home Advantage" scheme.

The Bank has launched United Combo Loan Scheme (Housing Loan + Car Loan) on20.10.2018 for eligible Housing Loan Customers (both existing & new) for availing CarLoan with relaxation in Interest Rate NIL Processing Fee and Reduced Margin for boostingCar Loan Portfolio of the bank.

• A special scheme under "Chief Minister's B.Ed. Anuprerna Yojana forInterest Subsidy on Education Loans availed by meritorious students domiciled in Tripurafor Pursuing B. Ed course" has been launched wherein Interest Subsidy will beprovided by Govt. of Tripura.

• The Retail Credit has witnessed a growth of Rs 1443 Crore from Rs11255 Crore ason 31st March 2018 to Rs12698 Crore as on 31st March 2019 registering a y-o-y growth of12.82%. a The Housing Loan Segment increased by Rs 1023 Crore from Rs 8615 Crore ason 31.03.2018 to Rs 9638 Crore as on 31.03.2019 registering a y-o-y growth of 11.87%.

• Loan under Auto Sector increased by Rs 117 Crore from Rs 783 Crore as on31.03.2018 to Rs 900 Crore as on 31.03.2019 registering a y-o-y growth of 14.94%.

• Loans under Other Retail Sector has increased by Rs 350 crore from Rs 1440crore as on 31.03.2018 to Rs 1790 crore as on 31.03.2019 registering a y-o-y growth of24.31%. The major contribution of growth has come from personal loan to salaried accountholders of our bank.


The Bank for augmenting its non interest income has been undertaking Bancassurancebusiness since 2004 for both Life and Non Life insurance segment. The Bank has obtainedfresh Certificate of Registration (Composite) from IRDAI with effect from 01-04-2019 whichis valid upto 31-03-2022.

In this financial year under Corporate Agency Arrangement Bank has further tied with upwith HDFC Life Insurance Co.Ltd. in addition to LIC of India as a new insurance partnerunder Life vertical and two partners Bajaj Allianz General Insurance Co.Ltd. and TATA AIGGeneral Insurance Co.Ltd. under Non Life vertical and Star Health and Allied Insurance Co.Ltd. under Standalone Health vertical.

The Bank has earned the total Commission Rs15.26 Crore from insurance business of whichRs 6.92 Crore from life insurance business and Rs8.34 Crore from non- life insurancebusiness during the FY 2018-19.


The investment portfolio of the Bank increased from Rs51200.67 Cr as on 31.03.2018 toRs62263.02 Cr as on 31.03.2019 registering a increase of 21.61%. The SLR investmentportfolio decreased from Rs33899.57 Cr as on 31.03.2018 to Rs30569.31 Cr as on 31.03.2019.Portfolio modified duration has decreased to 4.15 as at March 2019 compared to 4.66 a yearago. The modified duration of the Available for Sale (AFS) portfolio has also decreased to1.38 as at March 2019 from 2.80 as at March 2018.

The Bank has earned a total Trading profit of Rs1273.28 Cr from domestic segment ofTreasury during the financial year 2018-19 as compared to Rs1444.14 Cr. for the financialyear 2017-18 registering a decline of 11.83%. The average return on investment during theyear 2018-19 was 7.39 % and Yield on Investment during the year 2018-19 was 7.66%.

Foreign exchange Business turnover of the bank aggregated to Rs14147.27 crorecomprising of Rs3303.75 Cr under Exports Rs1805.98 Cr under Imports and Rs 9037.54 Crunder remittances during the year ended 31.03.2019.

Outstanding export credit of the bank stood at Rs895.15 crore as at 31.03.2019.Bankearned exchange profit ofRs146.47 Cr during the year 2018-19 against Rs136.14 Cr during2017-18.

The bank's overseas presence covered two countries namely Myanmar and Bangladesh withone Representative Office each at Dhaka Bangladesh and Yangon Myanmar respectively.Indo-Bangladesh and India-Myanmar trade based payments LC business etc are routed throughour Bank. Twenty nine (29) banks of Bangladesh maintain forty three (43) Vostro account inUSD and EUR and twenty one (21) banks of Myanmar maintain thirty one (31) Vostro accountsin EUR USD and INR with our Bank. Global IME bank Ltd. Nepal has been maintaining Vostroaccounts in INR & USD with our Bank.

The bank's International operations are well supported by a wide network of more than620 correspondent relationships and 16 Nostro accounts opened with overseas banks in 7currencies being maintained abroad.


Bank has also redeemed AT1 Bonds (Series I to IV) amounting to Rs940.00Cr byexercising Call Option on 11.04.2018 and redeemed Tier-2 Bond (Series VI) amounting toRs250.00 Cr on 25.03.2019. of Registration issued Bankholdscertificate by SEBI on Bankerto an Issue Debenture Trustee and Merchant Banker under which it continues to dischargedefined duties and responsibilities as per regulatory norms.


Government Transaction Department undertakes different types of Government BusinessActivities as following:-

• Collection of Central government revenues viz. Direct and Indirect Taxes (CBDT)Goods and Services Tax (GST) Collection of CBEC (Custom Central Excise etc.) through allthe branches. a Collection of State Revenues and Taxes of different states.

• Mobilisation of Govt. deposits under small savings like Public Provident Fund(PPF) Senior Citizens' Saving Scheme (SCSS) Sukanya Samridhi Accounts (SSA) differenttranches of Sovereign Gold Bonds Savings Bond etc.

• Handling of Govt.Fund (Departmentalized Ministerial Accounts State Govt.Treasury Operation in different states.)

• Disbursement of different types of pensions to Central Govt. State govt.pensioners and pensioners of different autonomous organizations like EPFO Kolkata PortTrust Damodar Valley Corporation WBSEDCL etc.

• Undertakes National Pension System (NPS) as an Aggregator of Pension FundRegulatory and Development Authority (PFRDA).

• Implementation of other govt. sponsored schemes as and when announced by thegovernment.

• Dissemination of information to the Pensioners through ‘Pensioners charter'being displayed in the banks 'website and on-line pensioners' Grievance portal and display& downloading of Pensioners' Pay Slip have been customized in the bank's website.Digitization of Life Certificate for pensioners through Jeevan Praman have been in popularuse.

• The total turnover in respect of Government Business handled by the bank and theagency commission earned on such business during this financial year(2018-19)amounts to -

(Rs in crore)
Business Type Turnover Commission Earned
Tax 6615.17 3.35
Pension 5678.58 22.76
Treasury DMA Others 8398.38 5.14
PPF SCSS SSA BOND & SDS 1864.96 1.13
Total 22557.09 32.38


Bank has taken multiple corrective measures to arrest fresh slippage and boost uprecovery. Use of Information Technology in NPA Management & Monitoring adopted forautomatic identification & categorization of stress assets to take prompt andproactive steps for arresting

Fresh slippages as well as quick upgradation of slipped accounts.

Monitoring and recovery Departments were strengthened by pooling dedicated manpowerofficers from different Departments /Sections/Branches for streamlining effectivemonitoring and recovery mechanism of stressed assets in SMA /NPA categories at fieldlevel.

The daily status was placed before Top Executives/Controlling General Managers foreffective and close follow up stressed assets.

Major Initiatives undertaken to Boost Recovery in 2018-19


• Launched Special OTS Scheme 2018-19 (for small ticket loan upto Rs 25 lac ) andUnited Special OTS Scheme 2018-19 (Ticket size above Rest Rs 25 lac to Rs 10 cr) launchedto boost up recovery through OTS.

• Implemented Online Processing of OTS Proposals on automated online platform. aIntroduction of Rewarding Schemes for motivating our field employees in Recovery. aOrganized Mega e-auctions of charged securities on PAN India Basis.

• Conducted sale of assets to ARC etc in 5 tranches during the year.

• Undertaken Special drive for improvement of Recovery from NPA in doubtful-3 andShadow accounts .

Each General Manager had monitored NPA management of 2/3 Regions under his / hercontrol.

Regular interaction of Top Management from HO with Field staff and borrowers throughVideo Conferencing for prop up scouting OTS proposal and spot approval As a result ofthese systematic efforts the fresh slippages in FY 2018-19 had come down to Rs 2870.52 cragainst that of Rs 8606.26 Cr in previous year and the Gross NPA had declined to Rs12053.38 cr. (16.48%) as on 31.03.2019 from Rs16552.11cr ( 24.10 %) as on 31.03.2018.

The cash recovery from NPAs during the year jumped to Rs 1264.80 cr against Rs 501.35cr in previous year. In FY 2018-19 three big corporate NPA loans with total outstandingbalance of Rs 1223.07 cr had been resolved through NCLT and 7 (seven) corporate loans(total outstanding balance

Rs 696.97 cr) were sold to ARCs.

The Net NPA ratio of the Bank had declined to 8.67 % as on 31.03.2019 against 16.49% ason 31.03.2018. In absolute terms the Net NPA stood at Rs 5785.61 cr as on 31.03.2019which was Rs10316.30 cr as on 31.03.2018. The provision coverage ratio of the Bank was72.94 % as on 31.03.2019.

During the year 2018-19 the cash recovery in technically written off accounts shoot upto Rs 342.27 crore against Rs 99.53 crore in previous year. In the current financialyear2018-19 a number of cases has been referred to NCLT under IBC-2016 where our exposure isRs 4171.09 crore under consortium / multiple banking arrangement and Rs 657.24 crore insole banking arrangement. It is expected that our bank will receive a good chunk from theresolution of the cases in the FY 2019-20.


Networth of the Bank was assessed at Rs 4999 crore as on March 31 2019. Total paid-upcapital of the Bank was Rs 7428 crore. The Government shareholding in the Bank stood at96.83 % at March 2019.

(Rs in crore)
Particulars March 2018 March 2019
Basel-III Norms Basel-III Norms
Risk Weighted Assets 63543 59432
CET 1 capital 5331 6028
Tier 1 capital 6271 6028
Tier 2 capital 1748 1700
Total Capital 8019 7728
CET1 ratio (%) 8.39 10.14
Tier 1 ratio (%) 9.87 10.14
CRAR (%) 12.62 13.00

Capital Adequacy Ratio under Basel-III norms assessed at 13.00% with Tier-1 Ratio at10.14% and Tier2 ratio at 2.86% as at March 2019. The

Bank has adequate headroom available under both Tier-1 and Tier-2 options to raisecapital to support business growth momentum.

Risk Management Structure:

The overall responsibility of setting the Bank's risk appetite and effective riskmanagement rests with the Board of Directors apex level management of the Bank. Bank hasconstituted a Board Level Committee named as Risk Management Committee of Board ofDirectors (RMCBOD) to monitor the implementation of the Risk Management systems of theBank. There are other internal committees of Top Executives like Credit Risk

Management Committee (CRMC) Operational Risk Management Committee (ORMC) and AssetLiability Management Committee (ALCO) to supervise various risk management functions andactivities of the Bank.

Bank's Asset Liability Management Committee (ALCO) is a decision making unitresponsible for the strategic management of interest rate and liquidity risks. ALCO met 18times during the year to review various issues namely interest rates scenario productpricing for both deposits and advances desired maturity profile of the incremental assetsand liabilities demand for Bank funds fixation of Bank's MCLR cash flows of the Bankprofit planning and overall balance sheet management.

The Operational Risk Management Committee (ORMC) has the responsibility ofmonitoring the operational risk of the Bank and the responsibility of evaluating andtaking necessary steps for mitigation of operational risk by designing and maintaining anexplicit operational risk management process. It also ensures that the norms policies andguidelines laid down in Operational Risk Management Policy are strictly adhered to. ORMCmet 11 times during the year to discuss various issues from operational risk point ofview. The Credit Risk Management Committee (CRMC) monitors various credit riskaspects relating to credit policy procedures and to analyse manage and control creditrisk on a bank wide basis The Committee met 12 times during the year to discuss variousissues from credit risk point of view.

Risk Management Policies:

To address various risks like credit risk market risk operational risk liquidityrisk forex risk and other Pillar-2 risks the Bank has formulated various risk managementpolicies to identify manage and mitigate such risks that the Bank is exposed to. Themajor policies formulated and approved by the Board of Directors of the Bank to addresssuch risks are Lending Policy Policy on ICAAP Operational Risk Management PolicyBusiness Line Mapping Policy Asset Liability Management Policy Market Risk ManagementPolicy Integrated Treasury Policy Disclosure Policy Floating Provision Policy CreditAudit Policy Stress Testing Policy and Policy on Credit Risk Mitigation Technique &Collateral Management etc.

Credit Risk:

To address the Credit risk Bank has formulated a Lending Policy which lays down policyguidelines for Credit Management covering all areas of operation where credit Risk isinvolved. The policy enables the Bank to enhance the risk management capabilities byundertaking lending decisions guided by the policy framework for a steady and healthygrowth in its loan portfolio.

The Bank has set various prudential limits to individual borrowers group borrowersentry level exposure norms substantial exposure limits benchmark financial ratiosborrower standards exposure limits/ceilings to industries sensitive sectors directives.The Board has reviewed such limits during the year.

During the year analysis of various exposure norms has been undertaken on half yearlybasis to ensure Bank's various exposures are within the exposure limits/ceilings fixed byRBI/ Bank's Board.

Bank has made its loan appraisal function independent of Risk Rating function. Internalrisk rating of loan accounts is carried through a software based rating model to assessthe credit proposal and rating of a borrower.

During the year Bank conducted the credit portfolio analysis on quarterly interval tostudy the impact of a particular industry / sector on the credit portfolio of the Bank andadopt strategies to improve the quality of credit portfolio and reduce the potentialadverse impact of concentration risk. During the year Bank has also undertaken the ratingmigration analysis of its borrowers on half yearly interval to analyze the stability rateup gradation rate down gradation rate and default rate for a one year two years threeyears and four years time horizons and appropriate corrective actions are initiated toprotect the portfolio quality.

Market Risk:

For management of Market Risk the Bank has given emphasis on measuring monitoring andmanaging liquidity interest rates foreign exchange and equity risk of the Bank. TheMarket Risk in trading book is monitored and managed as per appropriate control mechanismin place. Market position funding patterns duration counterparty limits and varioussensitive parameters are also monitored by the Bank on regular basis. The advanced RiskManagement tools such as Value at Risk (VaR) Earnings at Risk (EaR) Net Overnight OpenPosition Limits (NOOPL) and modified duration limits are used in managing Market Risk.

The Bank measures and monitors liquidity risk for all items of balance sheet throughstructural liquidity statements and stock ratios on regular basis. The Bank also monitorsits Interest rate risk through interest rate sensitivity gap reports. The Bank hasformulated and reviewed its Integrated Treasury Policy to set operating guidelines for itstreasury functions. The Bank has also put in place an Asset Liability Management Policyand Market Risk Management Policy to address the liquidity risk interest rate risk andmarket risk etc. These policies comprise management practices procedures prudential risklimits review mechanisms and reporting systems etc. These policies are reviewedperiodically in line with changes in financial and market conditions.

Bank has an "Integrated Treasury Management System (ITMS)" software tomonitor its investment and treasury portfolio on an ongoing basis along with automatedcomputation of capital charge for Market Risk as well as strengthening the internalcontrol system of investment portfolio of the Bank.

Operational Risk:

The Bank has framed an Operational Risk Management Policy for managing the OperationalRisk in an effective manner. The Bank has also formulated Business Line Mapping Policy formapping various products activities and income into different business lines.

Bank's Operational Risk Management Committee (ORMC) has the responsibility ofmonitoring the operational risk of the Bank. ORMC also reviews the operational risk lossevent data new products process and systems adopted by the Bank and provides suggestionsfor taking corrective/ preventive measures to strengthen the internal systems andprocedures.

Basel-III Compliance:

In line with guidelines of the Reserve Bank of India the Bank has successfullymigrated to Basel-II framework w.e.f 31st March 2009 by adopting Standardized Approach(SA) for Credit Risk Basic Indicator Approach (BIA) for Operational Risk and StandardizedDuration Approach (SDA) for Market Risk for computing the capital adequacy ratio.

The Bank has also followed Basel-III capital regulation norms w.e.f 1st April 2013 inline with RBI guidelines. The Bank has been computing the Capital to Risk Weighted AssetsRatio (CRAR) under Basel-III norms at quarterly interval. To comply with Pillar 2guidelines of RBI the Bank has formulated a Policy on Internal Capital AdequacyAssessment Process (ICAAP) for the assessment of all material risks the Bank is exposed toand the risk management processes which are put in place to manage and mitigate thoserisks and also to evaluate its capital adequacy commensurate with such risks.

In line with the ICAAP policy the Bank prepares the ICAAP Document on yearly basis andsubmits to RBI after internal validation and approval by the Board of Directors of theBank. The ICAAP document of the Bank for 2018-19 has been submitted to RBI.

The Bank has reviewed its capital requirement under Basel-III norms and taken necessarysteps for strengthening its capital base. The Bank also reviewed its concentration riskunder ICAAP on quarterly basis for monitoring both risks and capital requirement of theBank. In line with RBI guidelines and as per the Stress Testing Policy of the Bank theBank conducted Stress Testing analysis on quarterly interval on various risks likeLiquidity Risk Interest Rate Risk Forex Risk Credit Risk Market Risk and Operationalrisk and assessed the impact on capital adequacy & profitability. For skilldevelopment in Risk Management area the Bank also nominates its officers on regular basisfor various trainings/seminars on Risk Management conducted by reputed institutions likeCAFRAL NIBM IBA IDRBT CAB etc.


Bank's lending to the Priority Sector has reached a level of Rs35406 crore as at31stMarch 2019 which is 50.20 % of ANBC against the stipulated target of 40%. Bank hasgiven special thrust on financing Small & Marginal Farmers Micro Enterprise segmentunder MSME apart from exploring other potential avenues of increasing PRISEC advances likeSHG credit linkage KCC financing to Small Tea Growers financing Food & AgroProcessing Units financing large size Dairy & Poultry units vegetable and flowerproduction under controlled condition (Poly House) Plantation etc.

Agriculture Lending:

Bank has disbursed Rs 4040 crore during the FY 2018-19 against a target of Rs 6417crore recording an achievement of target to the tune of 63%. Lending to Agriculture Sectorstands at Rs13258 crore as on 31st March 2019 which is 18.80 % of ANBC against thestipulated target of 18 % of ANBC. Lending to Small & Marginal Farmers stands at Rs7108 crore which is 10.08 % of ANBC against the stipulated target of 8% of ANBC for theyear 2018-19.

Lending to Weaker Section:

Lending to weaker section reached to Rs10443 crore as on 31 March 2019 which is 14.81%of ANBC against the stipulated target of 10%.

Lending to Minority Community:

Bank's lending to Minority Communities reached to Rs 5331 crore as at end of March 2019which is 15.05 % of PSL conforming to the stipulation.

Kisan Credit Card:

Bank has organized several special camps and one contest in the name of "KishanSanjog Aviyan" from 01.12.2018 to 30.03.2019 for issuance of Kisan Credit Cards tobring more number of new farmers under KCC net as per revised scheme. Bank has disbursed19995 fresh KCCs during 2018-19 with credit limits of Rs150 crore. Total number ofoutstanding KCCs as on 31st March 2019 stands at 595828 with aggregate outstanding balanceof Rs 3042 crore. In line with the Government guidelines on issuance of Rupay based ATMenabled cards to all the KCC holders Bank has issued 5.68 lakh ATM cards to the KCCholders (excluding the NPA KCCs) till 31.03.2019 achieving the target of full conversionof entire operative KCCs to RUPAY KCC within the time frame set by the Government.

Self Help Group:

Bank has credit linkages with 121427 SHGs with an outstanding balance of Rs1095 croreas on 31st March 2019. Bank has been implementing NRLM programme for SHGs by providinginitial credit limit of Rs1.50 lakh on 1st grading of SHGs as per the decision of SLBCWest Bengal. Bank has started participating in Community Based Recovery Mechanism (CBRM)with the assistance from State Rural Livelihood Mission (SRLM) which has placed BankSakhi/ Bank Mitra at the branches.

Bank has been appreciated by MoRD GOI for outstanding performance by way of exceedingthe targets set under the scheme for the FY 2018-19.

Corporate Social Responsibility:

As part of corporate social responsibility Bank has undertaken activities under theprogramme through United Bank Socio-Economic Development Foundation (UBSEDF) asmentioned here under.

United Bank Rural Self-Employment Training Institute (UBRSETI):

Bank has so far set up 16 RSETIs in the states of West Bengal (6) Assam (8) andTripura (2) to impart training to the potential entrepreneurs from the financially weaksections of the society. RSETIs have been actively engaged themselves in number of specialtraining programmes such as VCI under SHG mode Agriculture and Allied Activities otheremployment generation programmes and Govt. programmes like PMEGP Skill Development etc.

During the FY 2018-19 these institutes have imparted training to 9853 ruralyouths/women mostly from weaker sections against the target of 9450 candidates of which42% trainees have been settled by establishing own economic venture. These institutes areproviding post training hand holding support to the trainees including arrangement of loanfrom our bank branches to enable them to set up their own ventures.


Bank has also set up 38 Financial Literacy Centre (FLCs) in the states of West BengalAssam Tripura and Manipur to extend financial literacy and credit counseling services tothe poorer section of the society. In the Financial Year 2018-19 these FLCs haveconducted regular outreach programmes which include Outdoor Activities for impartingfinancial literacy.

United Bank Socio-Economic Development Foundation (UBSEDF):

United Bank Socio Economic Development Foundation (UBSEDF) was established on 30thMarch 2007 with the objective of promoting and carrying out social and economicdevelopmental activities and rendering assistance to weaker and under privileged sectionof the society in terms of decision taken by the Board of Directors of the Bank. Bank hasextended financial assistance in 93 various welfare activities involving a total sum of Rs327.43 Lakh towards its CSR activities till 31.03.2019. During the financial year 2018-19focus was on extending assistance to the proposals under Health care (specially for seniorcitizens and girl students) Library room construction distribution of e-slates blanketsand vehicle for social activities and other social activities concerning general public.In the current year Bank has disbursed Rs 30.28 Lakh for 5 projects for implementation bythe respective organizations towards cause of the society.

Policy Matters:

The Dept. initiates and implements all policies relating to Priority sector rural andagricultural credit portfolio and issues circulars thereof. It also administers the fundsinvested/ extended in RIDF and IBPC route and implements interest and incentive subventionschemes for different categories of borrowers under production credit. Besides the dept.has the responsibilities of implementation of PMFBY and other security schemes concerningthe agriculturists linked to the Bank through credit.


During FY 2018-19 MSME advances of the Bank increased to Rs 12522 Crore as on31-03-2019 from Rs. Rs 11852 Crore as on 31-03-2018. Considering the overall creditscenario prevailing in 2018-19 Y-o-Y growth in MSME portfolio of the Bank of 5.65% may betermed as reasonable.

MSME being one of the thrust areas of lending of the Bank following initiatives havebeen undertaken to give a boost to MSME portfolio of the Bank:-a Bank registereditself with TReDS (Trade Receivables electronic Discount System) platform and started theBusiness Operation by factoring of Invoices.

• Several MSME customer meets have been held in different parts of the country inpresence of top executives to promote MSME business of the Bank during MSME outreachprogramme.

• Branch Managers have been provided training on lending to MSME to maintain thequality of MSME portfolio.

• Bank has also encouraged collateral free loans to MSE sector up to Rs 10.00 lacunder MUDRA category and above Rs10.00 lac up to Rs 200 lac under CGTMSE guaranteecoverage.

• The Bank has implemented "Stand up India" Scheme by providing creditto target group SC/ST and women entrepreneurs in true spirit.

• The Bank started 10 MSME verticals to cater to the need of the MSMEs and boostthe credit flow to this sector to speed up sanction of loans to MSME. 15 new MSMEverticals started functioning w.e.f. 07.05.2019 at other business centers. With this thetotal number of MSME verticals stand at 25.

• Bank has started Co-origination of loans with SREI equipment finance Limited forlending to priority sector as per RBI guidelines.


The Lead Bank Scheme was introduced by Reserve Bank of India in December 1969. The LeadBank Scheme envisages assignment of lead bank responsibilities to individual banks (bothin public sector and private sector) for the districts allotted to the respective banks.The lead banks will strive to promote inclusive credit growth in consonance with nationalgoals through concerted effort of member banks .

The Bank is the Convener of State Level Bankers Committee (SLBC) in the State of WestBengal and Tripura. It has assumed Lead Bank responsibility in 43 districts spread over 4states comprising of 11 Districts in West Bengal 16 Districts in Assam 8 Districts inManipur and 8

Districts in Tripura.

As Lead Bank in the States of West Bengal & Tripura the bank has been activelyinvolved in formulation and finalization of Annual Credit Plans

(ACP) for both the States and has been taking up suitable action plans forimplementation of different socio economic activities Government

Schemes etc. apart from maintaining close liaison with Govt of India Reserve Bank ofIndia NABARD and State Government Authorities. SLBC was also actively involved with themajor GOI initiatives namely Gram Swaraj Abhiyan and MSME Support & Outreachprogramme in both the States during the year. The Lead District Managers are similarlyinvolved in preparation of District Credit Plans and implementation of the same at Blocklevel.

SLBC meetings for performance review of the branches are regularly held on quarterlybasis. The 144th SLBC meeting for West Bengal was held on 12-03-2019 while the 128th SLBCmeeting for Tripura was held on 15-03-2019. The SLBC meeting for the West Bengal was heldunder the Co-Chairmanship of MD & CEO of Bank along with Addn Chief Secretary Financewhile MD & CEO along with Chief Secretary Co-Chaired the meeting for Tripura. TheHon'ble Finance Minister of GoWB and Hon'ble Chief Manager of Tripura also attendedrespective SLBC meetings twice during the financial year.

As SLBC Convener for the States of West Bengal and Tripura United Bank of India isresponsible for monitoring successful implementation of Annual credit Plan differentGovernment Sponsored Schemes viz DAY-NRLM DAY-NULM Pradhan Manti Mudra Yojona Stand UpIndia Social Security Schemes such as Pradhan Mantri Jeevan Jyoti Bima Yojona PradhanMantri Suraksha Bima Yojona and Atal Pension Yojona.

Performance of the Bank in SHG Bank linkage was noted at different fora. Besides theBank was instrumental in setting up of Aadhar Enrolment

Centers at different Bank Branches in both the States and also helped in spreadingdigital banking through various Financial Literacy Programmes. SLBC desk has beeninstrumental in opening of Banking Outlets in Unbanked Rural Centers (URC) in line withthe guidelines of RBI as well as DFS. In 2018-19 Banks have opened Banking Outlets in 47out of 72 URCs in West Bengal as identified through a process of survey by the LeadDistrict Managers. Similar efforts have also been undertaken for the State of Tripura bySLBC. The latest landmark decision taken by the SLBC West Bengal was formulating amodality and allowing procurement of potatoes by the State

Govt. at a pre-determined price from the farmers who were forced to sell the potatoesat distressed price due to bumper production in the season

2018-19. The potatoes so procured were stored into the Cold Stores by earmarking 15% ofthe space of all cold stores of the State for this purpose. The action so taken led toautomatic adjustment of the price of the potatoes to the cheer of the producer farmers.


With the evolution of digital payment and mobile technology there are means now todeliver advanced products to the hitherto unbanked population. Fintech is changing theface of financial inclusion at an unprecedented pace. This in conjunction with largenetwork of 4252 Bank

Mitras established across 13381 un-banked villages equipped with the latest and best oftechnology has enabled the Bank to deliver various banking services to the excludedpopulation right at their door step.

The highlights of achievements for implementation of Financial Inclusion and PradhanMantri Jan DhanYojana (PMJDY) during the F.Y. ended 2018-19 are enumerated hereunder:

• The Bank Mitra mobilized SB deposits grew from Rs 1365.66 Crore to Rs 1856.41Crore during the FY 2018-19 thereby registering a growth of over Rs 490.75 Crore duringthe period (35.94% growth Y-o-Y). The number of SBFIS accounts grew from 103.37 Lakh to113.1 Lakh in the same period thereby registering a growth of 9.45% Y-o-Y.

• FI Recurring Deposit (RDFIS) scheme registered a growth of 233.95% in terms ofnumbers (106485 accounts as on 31.03.2019) and 154.78% in terms of amount (Rs 1416.39 Lakhas on 31.03.2019).

• The total sanctions under United JLG Micro Finance increased to Rs 434.84 Croreas on 31.03.2019 (a growth of 53.61% Y-o-Y) with negligible NPAs.

• Bank focused on the newly launched "United Samriddhi" scheme underwhich small loans were given to 8002 individuals and the portfolio increased from Rs 45.69Crore as on 31.03.2018 to Rs 86.33 Crore as on 31.03.2019. Bank has also launched newvariants of "United Samriddhi" scheme in new geographical areas with focus onspecific MSME clusters.

• Bank made steady progress under the flagship PMJDY scheme wherein the number ofaccounts increased to 1.30 Crore as on 31.03.2019 a Net registrations under PradhanMantri Jeevan Jyoti Bima Yojana (PMJJBY) increased to 4.48. Lakh as on 31.03.2019 where asregistrations under Pradhan Mantri Suraksha Bima Yojana (PMSBY) rose to 26.29 Lakh as on31.03.2019. Out of the 2273 claims lodged by the Bank with LIC under PMJJBY 2063 weresettled as on 31.03.2019 and in case of PMSBY 116 out of 314 claims were settled by NIC.

• Under Atal Pension Yojna (APY) the net registrations stood at 212304 as on31.03.2019.

• Aadhaar has been seeded in 136.14 Lakh operative CASA accounts as on 31.03.2019(up from 132.95 Lakh as on 31.03.2018). Further the number of Aadhaar authenticatedthrough UIDAI's CIDR stood at 117.84 Lakh as on 31.03.2019 which is one of the highest inthe industry. a Bank also launched BHIM Aadhaar Pay merchant POS during thefinancial year and had a Bank entered into the field of Aadhaar Enrolment andUpdate as Registrar to UIDAI and implemented Aadhaar Enrollment Centers at 297 branches ofBank and RRBs as on 31.03.2019. Bank has trained and completed certification of over 515individuals for acting as Aadhaar Enrolment Operators and Supervisors.


During the year 2018-19 the Bank has opened a Retail Hub at Vesu (Surat) on 23.10.2018and five SAMB (Stressed Asset Management Branch) were opened and Penlong Branch was openedon 25.06.2018.

Branches & Offices Opened during the period 01.04.2018 to 31.03.2019

Sl. Name of Branch / No Office Region State Date of Opening Type of Branch/Office
1 Penlong North Bengal West Bengal 25.06.2018 General Branch
2 SAMB Guwahati Guwahati Assam 25.07.2018 SAMB
3 SAMB Siliguri North bengal West Bengal 27.07.2018 SAMB
4 SAMB Ranchi Jharkhand Jharkhand 27.07.2018 SAMB
5 SAMB Cuttak Bhubaneswar Odisha 30.07.2018 SAMB
6 SAMB Chennai Southern Tamilnadu 19.09.2018 SAMB
7 Retail Hub VESU (Surat) Ahmedabad Gujrat 23.10.2018 Retail Hub

Bank has sought RBI's prior permission for opening 250 General Branches and 39 branchesin Unbanked Villages during 2018-19. However RBI has yet to accord permission for openingnew branches on account of PCA.

Out of total 2055 branches as on 31.03.2019 902 (43.89 %) are located in 85 MinorityConcentration Districts (MCDs) throughout the country. In order to streamline businessactivity and to curtail cost the Bank had undertaken the process of rationalization /consolidation of branch network during the year 2018-19 and the bank has merged 9 branchesduring the year.

Branches & Offices Merged/ Closed during the period 01.04.2018 to 31.03.2019

Sl. No Branch Merged Sol ID Merged with Region Sol ID Date of Merger
01 Sashibhusan Dey Street 0479 Koley Market KolkataSouth 0075 14.04.2018
02 Lohapatty 0110 Posta Kolkata South 0556 15.04.2018
03 Survey Park 1562 Santoshpur Behala 0146 22.04.2018
04 Syed Amir Ali Avenue 0674 Park Circus Kolkata South 0066 28.04.2018
05 J. N Road 0668 New Market Kolkata South 0107 29.04.2018
06 Muktaram Babu Street (Kol North) 0672 Jorasanko KolkataSouth 0080 06.05.2018
07 Shyampukur 0871 Bagbazar Kolkata North 0090 12.05.2018.
08 Sukanta More 2105 Netaji Market Malda 0678 13.05.2018
09 Hiland Park (Behala R.O) 2211 Peerless Hospital Kolkata South 1513 29.05.2018

As on 31.03.2019 the total number of branches/ offices of the Bank stands at2055.Besides the Bank has 36 Regional Offices 3 Staff Training Centres 5 ExtensionCounters 3 Link offices and 2 Overseas Representative Offices at Dhaka in BangladeshandYangon in Myanmar.

Population group-wise Composition of total Branch/office Network:


Number of Branches (% of total)

31.03.2018 31.03.2019
Metropolitan 375 (18.23%) 372 (18.10%)
Urban 481 (23.38 %) 481 (23.41%)
Semi-Urban 424 (20.62%) 424 (20.63%)
Rural 777 (37.77%) 778 (37.86%)
Total 2057 2055

Geographical location-wise Branch Network:


Number of Branches (% of total)

31.03.2018 31.03.2019
Eastern Region 1182 (57.46%) 1176 (57.23%)
North Eastern Region 364 (17.70%) 365 (17.76%)
Western Region 88 (4.28%) 90 (4.38%)
Northern Region 126 (6.13%) 126 (6.13%)
Southern Region 139 (6.76%) 140 (6.82%)
Central Region 158 (7.67%) 158 (7.69%)
Total 2057 2055

The Bank has 246 specialized branches catering to the specific clientele segment.

Categories of Specialised Branches 31.03.2019
1. MSME 180
2. Asset Recovery Management 9
3. Retail Hub 26
4. Corporate Finance Branch 4
5. Service Branch 19
6. Women Branch 4
7. Treasury Branch 1
8. Central Pension Processing Centre 1
9. Cash Management Service Hub 1
10. Inward cheques Processing centre 1
Total 246

Information Technology:

All the branches of the Bank are covered under Core Banking System and various othersurround applications such as Human Resources

Management System Government Business Module Asset Liability Management Anti MoneyLaundering and Lending Automation Processing

System etc have also been implemented to facilitate better customer service andeffective management. The facility of interbank remittance through RTGS and NEFT isavailable at all the branches of the Bank. This facility is also available through ourinternet banking and mobile banking platform. The Bank also offers cross border remittancethrough SWIFT network at 1 ‘A' Category AD Branch and 41 ‘B' Category ADBranches. The Core Banking System has also been integrated with SFMS platform to offerinland Letter of Credit (LC) and inland Bank Guarantee operation using Straight ThoroughProcessing (STP). To prevent incidences of fraud Biometric Authentication System has beenimplemented across all its branches for accessing Core Banking System.

The Bank has revamped its corporate network architecture to next generation MPLStechnology and also upgraded network bandwidth for high availability & betterperformance. Bank has deployed VSATs with dedicated bandwidth and High Speed DataConnectivity using 3G as back up connectivity at Branches to provide network connectivityin the event of cable cut. Bank is also in the process of implementing secondary MPLSconnectivity in order to provide seamless customer services in the event of outage ofprimary link and vice versa.

The Bank conducts Information Security (IS) audit for its Core Banking applicationsurround applications and other infrastructure at the Data

Centre. The IS audit also includes VAPT (Vulnerability Assessment & PenetrationTesting) for public facing applications at certain intervals.

Periodic DR (Disaster Recovery) drill is also conducted as part of Business ContinuityPlan (BCP). As part of our other technology initiatives the following systems have beenput in place.

Centralized Payment Hub solution has been implemented to process all transactionsinitiated through NACH and APBS platform with host to host connectivity of NPCI. MandateManagement Services are also enabled in this platform. In future all corporate Collectionand Payment services and IMPS gateway will be integrated to this centralized hub.

The Bank has boarded Public Fund Management Services (PFMS) platform and disbursing DBTpayments for various sponsored schemes of Central and State Governments. AdditionallyDepartmental Ministerial Accounts for two ministries are also being handled in thisplatform.

As a part of Green initiative Bank has implemented Board Information System (BIS) forconducting Board level meetings in paperless mode. All agenda and minutes of various Boardlevel committees are uploaded in this portal.

The MIS solution has been revamped with a new solution and architecture for easy andquick availability of requisite information. Regulatory reports are also being automatedthrough this system.

The Bank has an intranet portal which is used extensively for information sharingknowledge management and online examinations.

Self Service Kiosks to offer services like Passbook printing Cash deposit and Chequedeposit have been installed at selected branches. Bank has also introduced electronicPassbook (United e-Passbook) facility for the customers as a mobile application to viewaccount transactions. Bank has deployed some of the next generation tools to preventvarious kinds of cyber attacks and engaged professional agencies to provide Anti-

Phishing Anti-Pharming Anti-Trojan and Anti-Malware Managed Services.

Bank has implemented state of the art Security Operations Centre (SOC) which providescentralized view of Information Security status and command centre for IS Securityoperations.

Bank is continuously upgrading its technology and information security products withthe aim to provide better seamless and safe banking experience to its esteemed customers.

Information security:

Bank is continuously upgrading its technology and information security products withthe aim to provide better seamless and safe banking experience to its esteemed customers.

Bank has implemented state of the art Security Operations Centre (SOC) which providescentralized view of Information Security status and command centre for IS Securityoperations.

In this financial year Bank have deployed/refreshed various technologies to enhanceCyber Security posture of the Bank. Along with internal control system United PerimeterShield has been deployed to further strengthen to defence to prevent various Internetbased attacks. Based on above work Bank had participated in an award program conducted byThe International Council of Electronic Commerce Consultants (EC-Council) India. Bank'sproject was shortlisted and awarded on Excellence in IT Infrastructure (Network SecurityProject). Award was received by the Bank during a ceremony on March 26 2019 in Mumbai.

United Bank of India always pledges to cater secured banking services to its customers.

Centralized Payment HUB:

The Bank has set up a Centralised Payment Hub (CPH) at Head Office to handle theenormous volume of e-transactions in a secured and reliable manner. The CentralisedPayment HUB has started its operation w.e.f. 3.11.2014.


The department is catering the following services:-

a) NACH Debit

b) NACH Credit c) APBS (Aadhar Payment Bridge System)

d) Mandate Management System of NPCI as Destination Bank e) Mandate Management Systemof NPCI as Sponsor Bank

f) DBTL (Direct Benefit Transfer to LPG Customers) & DBT(Direct Benefit Transfer)

g) ECS Debit as Destination Bank h) Digidhan Payment

i) Reconciliation of all Settlement Accounts RBI Accounts 4 RRB Accounts ServiceBranch Accounts Payment Gateway System Pool Accounts etc. related to NACH inward &outward transactions.

j) BHIM Incentive Payment k) Affecting Income & Expenditure to P/L Accounts afteraccounting for GST.

l) Generation & presentation of Invoice related to all products of NACH todifferent Banks.


i) CMS Payment Services a) Corporate Bulk Payment.

ii) CMS Collection Services a) Corporate Mandate Based Direct Debit Service b)Corporate cash Collection Service. iii) ASBA (Application Supported By Blocked Amount) a)Core ASBA b) Syndicate ASBA c) e-ASBA (through e-banking / Net banking platform) iv) IndoNepal Remittance Service

HR Details:

The total staff strength comprises 52% officers 28% clerks and 20% Sub-Staff. Womenemployees numbering 3283 constitute 23% of the Bank's total staff strength.

To meet the emerging challenges in the banking sector the importance of skill upgradation of all categories of employees was keenly felt and as a sequel to this Bankinitiated the following steps in arranging various training programs during the year2018-19. i) In-House Training: The training courses organized by the Staff TrainingCollege Kolkata and other four Training centers in which 4317 employees were given inhouse training. ii) External Training: During the period under review bank hasroped in professional training institutes for imparting various training programmers &workshop in which 422 employees have been trained externally.

Customer Orientation:

The bank has taken several initiatives to remain customer friendly by providing promptservice bringingindiversifiedtechnology supported products/ services quickly respondingto customer queries/ suggestions and redressal of customer complaints. The"code ofcommitment to customers" issued by BCSBI has been made available at the Bank'swebsite and also sent to all the Branches and Regional Offices across the country. Forimproving the quality of the customer service atoll free contact facility at customerservices Department is provided to facilitate the customers to represent their grievance/suggestions.The toll free facility is available from 8am to 10 pm. For ATM related issuesa separate toll free contact facility at head office has been provided and is available24*7.The bank has put in place online grievances redressal system through the bankswebsite where the customers can lodge and track the status of theircomplaints/suggestions.

In order to ensure quicker and non-discriminatory redressal of grievances Bank hasintroduced a portal named Comprehensive Complaint Management System (CCMS) by leveragingtechnology. Under this system the complaint received by branches Regional offices anddepartments at Head office are acknowledged on real time basis and status of redressal /settlement is also uploaded on the portal till final redressal. Customer can also lodgecomplaint on the CCMS Portal directly which is automatically added to the outstandingdatabase of CCMS by the system.

The Comprehensive Complaint Management System helps us to track the status of eachcomplaint and to take a comprehensive look with regard to the total complaints received bythe Bank during the period and status thereof. The necessary follow-up measures areimmediately taken up for expeditious disposal of the complaints and grievances withconcerned Branches/RO/Department at Head Office. The system enables the officials of theCustomer Service Department to classify the nature of complaints with respect to theproducts and services to which the complaints are related. The analysis of data aims tohelp the Bank management to take appropriate action to improve service in the areas whichare found deficient.

The complaints from various sources like those received through mails and by post etc.are also entered in the CCMS portal. The consolidation of complaints from all sources onthe CCMS portal helps the management to identify the nature of complaints areas fromwhich maximum complaints are received and also to take account of the time taken for theredressal. Such analysis is aimed at improving the standard of customer service andidentifying the areas where staff members are to be trained modification of products andservices are required and remedial actions are to be taken for strengthening of system.

As per recommendation of the Damodaran Committee setup by Reserve Bank of India ourBank has appointed Internal Ombudsman with effect from 07/12/15 to enhance the customerconfidence level.

To have direct feel of the quality of the customer service in the Kolkata basedbranches incognito visits by the officials of Head Office are conducted whichadditionally cover several areas such as ambience discipline punctuality and mattersrelated preventive vigilance to safeguard the interest of Bank and customers.

Besides to educate the young officers of the Bank about its products and service and tohelp them render quick and improved customer services online application titled"Quest" was started in June 2015.Quest is an application accessible to allmembers of award staff and officers of the Bank for clearing doubts related to bankingoperations The queries are replied by the selected HO officials within a deadline of 24hours. The process of questioning and answering has been going on since inception onregular basis and the response of the officials to quest is overwhelming and stronglypositive.

In financial year 2018-19 customer complaints redressal percentage is 99% 1274 numbersof complaints remained outstanding at the end of year out of which 10 numbers ofcomplaints were outstanding for more than one month.

The ADC related complaints are resolved within the stipulated period. Out of 1058 Nosof complaints lodged in Government of India Portal (CPGRAM) for the financial year endingMar'20191034 Nos complaints got resolved and 24 Nos complaints remain pending forredressal as on 31/03/2019.

Internal Control:

Internal Audit of all the operational units of Bank is a continuous process to ensureeffectiveness of internal control mechanism and to provide high quality counsel tomanagement on the effectiveness of risk management and internal controls includingregulatory compliance by the Bank.

The bank undertakes Risk Based Internal Audit (RBIA). The scope of RBIA shall encompassthe examination and evaluation of the adequacy and effectiveness of the Bank's system ofinternal control.

Organization structure of Audit & Inspection department comprises Audit Committeeof the Board (ACB) Audit of Committee of Executives (ACE) Audit & InspectionDepartment (along with seven Regional Inspection Units (RIUs) reporting to Audit &Inspection Department HO) and Regional Audit Committee of Executives. The team ofinternal Inspectors/External Auditors (CA Firms) at field level is continuously engaged ininspection of Branches /Offices of the Bank as per Board approved Audit & InspectionPolicy for evaluating the level of implementation and adherence to the prescribedprocedures and norms and for identification measurement and mitigation of risk involvedin different functional areas. In order to align with changing scenario of the BankingSystem and dynamic global economic environment inspection process is updated andnecessary changes are incorporated in Audit & Inspection policy of the Bank from timeto time. To achieve these objectives various types of Audits like Risk Based InternalAudit Concurrent Audit Credit Audit Information System Audit Snap Audit RevenueAudit Inspection of H.O. departments and Management Audit of Regional offices areconducted.

Risk Based Internal Audit (RBIA) of branches have been carried out to focus oneffective Risk Management and internal controls in respect of areas of potential risk andfor protecting the Bank from various risks. System based online RBIA has already beenstarted since 1st November 2016. During the year 2018-19 Risk Based Internal Audit of1662 branches have been conducted against the target of 1645 branches. Concurrent audit isconceived as systematic examination of all financial transaction at a authenticity and duecompliance with the internal systems procedures and guidelines of the Bank. During theyear 2018-19 Concurrent Audit of 548 branches have been completed covering total depositof 50.09 % total advance of 79.72 % of the Bank and the overall Bank's business coverageof 60.36 % as on 31.03.2019.

Credit Audit has been undertaken as an effective monitoring tool by identifying thegaps in the credit delivery process at branches and suggesting ways to bridge the gaps andalso monitoring the compliances. During the year 2018-19 Credit Audit has covered 60 % ofthe total credit portfolio as on 31st March 2019 of the Bank.

Technology has augmented the scope reach and coverage of banking through significantnetworking and availability of a wide variety of new delivery channels. With the increasedtechnology adoption by Banks the complexities within the IT environment have given riseto considerable technology related risks. The information System Audit of Bank's ITinfrastructure is being conducted to mitigate and effectively manage these technologicalrisks.

Anti Money Laundering (AML) / Know Your Customer (KYC):

The Bank continues to take appropriate measures for strict adherence to KYC norms incase of all the customers and monitor transactions closely for implementation of AML (AntiMoney Laundering) and KYC Standards.

Steps taken to ensure compliance of KYC/AML guidelines are as follows:

• The Bank has put in place an effective AML programme by establishing appropriateprocedures and ensures its strict implementation. a Cash Transaction Reports(CTRs) Suspicious Transaction Reports (STRs) Non-Profit Organization TransactionReports(NTRs) Cross Border Wire Transfer Report (CWTRs) and Counterfeit Currency NoteReports (CCRs) are filed with FIU-IND in prescribed formats within the time limits.

• The generation of daily alerts for offsite surveillance through our internalweb-based application has been started and monitored by our AML Cell. At present dailyalerts are generated on 13 types of alert parameters.

• Numerous STRs on continuous basis and various reports as and when required byFIU-IND Ministry of Finance was totally taken care by the AML Cell during the period ofdemonetization.

• Officially Valid Documents (OVDs) are being obtained from all the customerstowards identity and address proof. These documents are being captured in CBS system.

• Risk categorization of all the customers and their profile updation is beingdone through the system.

• The Bank has completed the process of allotment of Unique CustomerIdentification Code (UCIC) to all individual customers on the basis of PAN Passport andAadhar number.

• Overall KYC compliance of our bank is more than 99%.

• Upload of KYC data in CKYCR portal has been started.

Security Arrangements:

The Bank has taken necessary steps to strengthen the security arrangement in branchesby installing security gadgets from time to time in conformity to the guidelines issued bythe Reserve Bank of India. With passage of time security arrangements at branches requirereview & further strengthening through additional coverage with modern electronicgadgets. Therefore considering need of the time additional security gadgets / servicesprovided at our Bank's branches are as follows:-

(a) Installation of CCTV - Security of Branches is being strengthened byinstalling CCTV surveillance system in phased manner. All the currency chest branches havealready been equipped with CCTV system. Since 2009 to 2012 total 835 Branches includingCurrency Chests were equipped with CCTV surveillance system. Process of installation ofCCTV system at 1143 Non-CC branches is in progress. On completion of project altogether1978 CC & Non-CC Branches would be equipped with CCTV for round the clocksurveillance.

(i) Head Office premise at United Tower is a high rise building consisting of Ground +16 floors & Basement. Sensitive nature of offices of all Top Executives e.g. officesMD & CEO ED's and GM's including Bank data Center are situated in this building. Inaddition approx.650 numbers of employees of different scales & categories are postedin Head Office. Therefore considering the sensitive nature of offices Data Center highnumber of employees & hundreds of visitor's effective security arrangements of HeadOffice building became of prime importance. Hence in order to ensure proper control &surveillance all floors including ground floor is recently covered with CCTV system withinstallation of 113 numbers of Cameras.

(ii) Remaining branches & offices would also be equipped with CCTV surveillancesystem in due course of time in phased manner. (iii) As an additional safety measure allthe Currency Chest branches within the jurisdiction of Kolkata Police have been broughtunder the Integrated Security Solution (ISS) which has a control monitor at LalbazarPolice Control Room (Kolkata) for live viewing of the activities inside the currencychests round the clock.

(b) Implementation of Clean Note Policy - In order to implement the Reserve Bankof India Clean note policy Non-CC branches are being equipped with (1+1) pocket Desk TopAuthenticator cum Note Sorter to help the branch to identify the Forged Indian CurrencyNotes (FICN) at the counter itself. This will also enable the branches to sort thecurrency notes into issuable non-issuable currency notes for redistribution of issuablenotes amongst the customers and members of public at the counter itself & also throughATMs. Our 1153 numbers of Non- CC branches are already equipped with(1+1) pocket Desk TopAuthenticator cum Sorter. Remaining 839 Non-CC branches would also be provided with (1+1)pocket Desk Top Authenticator cum Sorter in phased manner in due course of time.

(i) All 79 Currency Chests are already equipped with Heavy Duty Note Sorting Machines.

(ii) An in house softwareSDMS (Security Data Management System) has been developedfor real time reporting of the FICN Detection Adjudication of soiled/ mutilated notesdistribution of coins & fresh currency notes related activities of the branches incompliance with the Reserve Bank of India guidelines.

(c) Cash Management of Branches - In house software is developed for closemonitoring of day to day cash holding of the branches with regular MIS related to theexcess cash management. Each day the excess cash holding of branches is auto generatedthrough the system and an e-mail is triggered to each Regional Head with details of theexcess cash holding branches and the amount of excess cash held to facilitate theregional office to closely monitor the Excess cash position of each branch.

(d) In order to lift excess cash from the branches and also to feed cash to needybranches remittance teams of private security agency (PSA) consisting of 01 cash van withdriver 02 armed guards and 01 custodian of cash has been hired for currency chestbranches. Approval for deployment of remittance teams of PSA at 27 CC branches wasobtained. By now 25 Cash remittance teams of (PSA) are deployed at 24 CC branches.Deployment of remaining PSA remittance teams at CC branches considering their requirement& financial viability is in process. (e) In order to regulate and monitor visitors tothe Bank's Head Office a Computerized Visitors' Management System has been installed atthe Main Entrance gate of the Head Office.


• Acquisition of premises for Bank's use on lease/rental basis by outrightpurchase and by new construction usually on leasehold land. a Construction onBank's freehold / long-term Lease hold premises.

• Refurbishment of Bank's Lease hold / Rented premises.

• Construction/installation of Currency Chest and periodic issuance of fitnesscertificate thereof.

• Overhauling general maintenance and annual maintenance of pumps waterpurifiers Water Treatment Plants air-conditioners generators transformers CentralAir-conditioning Plants lifts solar plants etc.

• Shifting / Reconstruction of office furniture partitions LAN connectionsTelephone Connections Electrical connections Head Office.

• Shifting acquisition of additional space surrender renewal of lease revisionof rent etc. in respect of Bank's hired premises. Maintaining inventory of Bank's hiredpremises issuance of notices to landlords for renewal of lease at the appropriate timeand follow-up with regard to realization of rent from defaulting branches.

• Procurement of furniture & fixtures etc. in H.O. and Bank's own premisesunder the direct control of H.O.

• Matters relating to maintenance and disposal of non-banking assets.

• Annual Budgetary Planning of Capital and Revenue Expenditure related topremises.

• Co-ordinate and Convene the Expenditure Committee I & II meetings forrecommendation of Capital & Revenue Expenditure under the Financial DiscretionaryPower of MD & CEO and ED respectively.

• Empanelment of Architects/ Consultants/ Contractors/ Vendors/ Suppliers.

• Revaluation of Bank's own / freehold / Long term leasehold property (Land &Building) for Recapitalization. Payments of rates / taxes for Bank's own / freehold / longterm leasehold premises at Kolkata.

• Settlement of insurance claims in respect of Bank's own / freehold / leaseholdpremises installations equipment furniture and all other fixed assets dealt with by thedepartment with the assistance of Corporate Accounts Department.

• Scrutiny and Noting of Discretionary Power exercised by Chief Regional Managersof the preceding month for Capital / Revenue Expenditure related to Premises.

• Maintenance of Inventory Register and charging of depreciation in respect ofBank's own buildings furniture Office equipment Electrical installations AirConditioners etc.of Bank's own / long term lease hold premises.

• Functioning & Maintenance of Terrace Gardens at H.O. and Lawn Garden at UBIHouse.

• Preparation and Review of Premises Policy for Acquisition of Accommodation onLease / Rental basis from time to time.

Preparation and Review of Manual on Policy and Procedures for procurement ofGoods and Services for Bank from time to time.

• Construction of Strong Rooms for Safe Deposit Lockers at branches.

• Carrying out and Implementation of energy and electrical audit recommendation ina phased manner.

• Matters relating to installation of EPABX shifting of telephone linesco-ordination and billing of corporate mobile connections and landline telephones followup for fault rectification for Telephones and other communication system and AMC issue(s)purchase maintenance and servicing of Photocopier machinesat Head Office.

• Engagement/Renewal/Review of rent in respect of Residential Accommodationssought by Officers posted at Head Office.

Implementation of Official Language:

• With a view to implement the Official Language Policy of theGovernment74Officerswere trained in regular Hindi courses of Praveen & Pragya at HeadOffice/Regions. Hindi workshops and Unicode based computer training in Hindi wereorganized for the officers & employees of the Bank in each quarter at the StaffTraining College Kolkata. The quarterly meetings of Official Language ImplementationCommittee of Head Office were held under the chairmanship of the Managing Director &CEO and Executive Directors. The different issues of in-house Hindi magazine of the Bank"United Darpan" were released during the year. Inspection of all the RegionalOffices and departments of Head Office were carried out with regard to implementation ofOfficial Language.

• Our Bank convened the regular meetings of TOLICs namely Krishnagar PuruliaKatihar and Hoogly as assigned to us by Department of Official Language Ministry of HomeAffairs Govt. of India. a Hindi Day was observed on 14th Sept 2018 by HeadOffice Regional Offices and Branches of the bank. Our Head Office observed Hindi Weekfrom 14th Sept 2018 to 20th Sept 2018 and during the week various Hindi competitions andseminar were organized.

• The third sub-committee of parliamentary committee on Official language visitedour Indore Branch under Raipur Region and Margaon

Branch under Mumbai Region in the month of August 2018 and March 2019 respectively.The bank received appreciations by the committee for our better performance.

• Inspection of our New Delhi Region and Gurgaon Mehrauli Road Branch under NewDelhi Region were carried out by Department of financial Services Govt. of India.

• Our Head Office received third prize from the Town Official LanguageImplementation Committee (Bank) Kolkata for better performance in implementation ofofficiallanguage policy. Besides different Regional offices like Meerut & New Delhiand branches like Kanpur Faizabad Haridwar Deharadun Agra and Bareily also baggedprizes from their respective TOLICs for their excellent implementation of OfficialLanguage policy.

• First time our Bank received a prize from Reserve Bank of India for publicationof in-house Hindi magazine "United Darpan".

Regional Rural Banks (RRB):

• We have 4 sponsored Regional Rural Banks in 4 states-Bangiya Gramin Vikash Bank(BGVB) in West Bengal Assam Gramin Vikash Bank

(AGVB) in Assam Tripura Gramin Bank ( TGB) in Tripura and Manipur Rural Bank( MRB) inManipur. The total network of branches of the four RRBs as on 31.03.2019 was 1174.

• Combined Total Business of the four RRBs as on 31.03.2019 was Rs 44405.90 corewith Total Deposit of Rs 31725.91 crore & Total Advance of Rs 12679.99 crore. CombinedGross NPA was 26.30 % and combined Net Profit for the last FY was Rs 82.46 crore. BGVB& TGB registered

Net Profit ofRs 9.10 crore & Rs125.05 crore respectively and AGVB & MRBregistered Net Loss of Rs 49.85 crore & Rs 1.84 crore respectively during the FY2018-19. (The above position is based on unaudited figures).

• All the four RRBs are working on CBS platform and are NEFT RTGS PFMS AEPSenabled. The RRBs are also offering various technology driven product & services likeRupay Card/ ATM / POS machines CTS based clearing etc.

• It may be mentioned here that Langpi Dehangi Rural Bank (LDRB) an RRB sponsoredby State Bank of India was to be amalgamated with the Assam Gramin Vikash Bank (AGVB)under the sponsorship of our Bank w.e.f. the 1st of April 2019 as per Gazette Notificationof the Govt of India dated 22nd February 2019 and the amalgamation has taken placeaccordingly on the 1st April 2019.

The LDRB was having a network of 59 branches and the business position of the LDRB ason 31.03.2019 based on unaudited figures was Total Business Rs 1378.95 crore TotalDeposit Rs 889.76 crore Total Advance Rs 489.19 crore Gross NPA 2.28 % and Net Profitduring the FY 2018-19 was Rs 15.31 crore.

United Demat:

The depository services to the Bank's customers are provided on the CDSL and NSDLplatform under the umbrella of "United Demat" which aims at providinghassle-free fast and accurate transactions under depository environment. The benefitsare:

• Easy and convenient way of holding securities

• Immediate transfer of securities without any stamp duty on transfer

• Safer than paper-shares (no chances of bad delivery fake securities delaysthefts etc. are eliminated) a Reduced paperwork on transfer of securities aAuto-credit into Demat account

• Expeditious credit of securities and fund resulting from corporate actions anddistribution of corporate benefits;Online access through easiest and speedy aPeriodic statement of holding and transaction

• Convenience of changing client account details including nomination as and whenrequired hassle-free transmission.

Direct credit of shares allotted in IPO in Demat Account and credit ofDividend in linked bank account.

• A single Demat account can hold investments in both Equity and Debt instruments.Even Mutual Fund Units Sovereign Gold Bonds Insurance

Policies etc can be held in Demat form in the same Demat Account.

Demat Services are made available touching all aspects of share trading. The Servicesoffered are:

• Opening of Demat account

• Purchase and Sale of Securities

• Dematerialization & Rematerialization

• Destatementization & Restatementization / Redemption of Mutual Fund Unit

• Pledge / Unpledge / Hypothecation /Confiscation

• Freeze & Unfreeze

• Transfer Transmission & Transposition

U-Connect - Bank's Share Trading Services

United Bank of India facilitates share trading for its customers through product"U-Connect Trio" in association with Kotak Securities Limited. In this productthe client opens its Bank and Demat account with United Bank of India whereas the tradingaccount is opened with Kotak Securities. The products are feature-rich with facilities ofinvestment trading exposure margin trading funding IPO applications through ASBAsystematic investment placing aftermarket orders and future orders all being madeavailable at an extremely competitive pricing. The investors have flexibility of puttingtheir trades online offline mobile app and through dealer. Apart from equitiesinvestors can also trade in bonds ETFs and MF through trading platform. The investorswill also have access to the research reports and trading tips from the award winningresearch team.

DIGITAL BANKING: Mobile Banking New Services:

To improve service offering and enhance customer experience mobile banking applicationhas been revamped/ upgraded. The upgraded mobile banking app have the self on-boardingfacility which attracts more customers and help in the growth of the channel. Apart fromregular services like funds transfer bill payment IMPS mobile recharge cheque bookrequest etc following additional features have been added:

(a) Self On-boarding: Self on-boarding process require authentication throughdebit card and PIN or e-banking user-id and Password. In case the customer is notregistered on debit card platform core-Banking system then customer may get registeredmanually at branch.

(b) Biometric Application login: User will have the option to log-in into theapplication through either application PIN or registered finger biometric.

(c) Bharat QR: Customer can pay any on-line/offline merchant displaying BharatQR by debiting to his/her account through linked debit card. (d) Card Services:Allows customer to set daily withdrawal limits enable/disable international transactionand temporary/permanent blocking of debit cards.

(e) Account Statement: Customer can view / generate statement for a date range(maximumsixmonths)pre-definedperiod or desired number of last transactions. The same canalso be fetched in customers registered e-mail ID.

(f) Bharat Bill Pay: Customer can pay bills to all merchants available on BharatBill pay system.

(g) Credit Card Payment: This service will enable the customer to pay CreditCard bills of various banks. (h) Debit card Pin generation: Customer can set /reset debit card PIN which is further authenticated by OTP.

(i) Availability of Locker: Customer can check the availability of lockers inany branch using mobile baking and apply for the same.

(j) Introduction of new Regional Language: With introduction of Odia &Malayalam language mobile Banking is now available in 6 languages i.e English HindiBangla Odia Tamil & Malayalam.

(k) United Voice Assist (UVA): UVA is one of the innovative features in mobilebanking where customer may avail banking services using voice based commands only.Presently Balance inquiry Mini Statement Last Transaction detail & cheque bookrequest are available and more services are in the offing.

The UVA service is initially rolled out to android devices only.

(m) Facility of Mutual Funds: Customer may visit various mutual funds site fromthe app and purchase Mutual funds. (n) Request of Demat Account: Customer can placea request for demat account opening.

New Debit cards Launched

Bank has launched additional variant of debit cards under Master & VISA network.These cards are NFC (Near Field communication) which will enable customers to purchase byjust placing the card near the swipe machine at merchant outlets.

Online Application of Debit Cards

Customers are now able to apply for any variant of debit cards online at no extra cost

Introduction of Cash @ POS at our Merchant Outlets

Bank has entered into Merchant Acquiring Business and has deployed around 5400 Point ofSale (PoS) terminals as on date. As part of our endeavour to improve digital transactiongrowth and provide value added services Bank has introducing Cash @ POS services. Underthis facility Merchants having PoS terminals of our Bank may offer additional service ofproviding cash to cardholders by swiping the cards issued by any Bank under Rupay Visaand Master Card Network.

Introduction of Bharat QR at our Merchant Outlets

To acquire different segments/class of merchants specially the lower segment merchantswho cannot afford to pay high monthly rentals for POS Bank has introduced Quick Response(QR) based soft terminals namely Bharat QR and BHIM QR. This will enable the customers tomake payments by scanning the static QR code. Bharat QR has the option to debit anyvariant of Credit/Debit Card or a VPA (UPI) linked to the account of thecustomer whereasBHIM QR will enable the customers to make payment only through linked VPA (UPI) account.

Introduction of United Gift Card (RuPay)

The Bank has introduced United Gift Card under RuPay network for the purpose of giftingon any occasion like birthdays weddings festivals anniversaries farewell etc. It wasissued to limited branches on a pilot basis and will be rolled out gradually at allbranches. The Gift card holders can spend the amount loaded on the card for purchases atretail stores and online shopping. The Gift cardholders also have the advantage ofavailing self-service at portal.

Replacement of Magnetic Stripe Card by Chip Based Cards

To ensure more secured card based transactions and also to comply with RBI directivesBank had replaced all its active 35 lac magstripe based cards with EMV cards.

New Initiatives/services in Internet Banking

1. Online seeding of nomination details Internet Banking Users can now add / modifynominee details for accounts having mode of operations as self.

2. Implementation of online Locker Request- Internet Banking Users now searchavailability of lockers in their preferred branch and submit the request for lockeronline. Subsequently Branch will get the lead and contact the customer for completing thenecessary documentation and formalities.

Bank is presently having a total ATM network of 2017 & 5400 POS outlets. All thedigital Banking channels viz: ATMS debit cards Internet / Mobiile banking UPI etc arewell accepted by all segment of our customers and as on date 71 % of the total bankingtransactions are through digital channels.


The Bank has set up a Compliance Department for identification of compliance issuesassessment and mitigation of Compliance Risks to ensure adherence of Risk Mitigation Planprescribed by Reserve Bank of India in its Risk Based Supervisory Process.

Board of Directors of the Bank have approved Compliance Policy for the Bank. The policycovers compliance issues of areas like deposit & services advances KYC-AML BCSBICodes Data Information Security compliance issues as identified and remedial measurestaken Roles & Responsibilities as regards to compliance functions is defined for everydepartment in the Bank. The following mechanism has been introduced to ensure complianceof Regulatory & Statutory issues .

• Self certification

• Random compliance testing of branches by Officials from Compliance DepartmentH.O.

• Compliance Testing of Branches by Designated Compliance Officers (DCO) atRegional Offices.

• Compliance of the direction issued by GoI /RBI / IBA from the functionaldepartments of Head Office.

• Quarterly reporting through on line compliance system by Branches and RegionalOfficeswith details of compliance rules covering the important areas.

Under Corporate Governance compliance status of the directions issued by GoI /RBI /IBA and other applicable provisions of law rules & guidelines are reviewedperiodically by Board Level Committees.


Reserve Bank of India has recognized the Hindi Griha Patrika of United Bank of India"United Darpan" for its excellence:

Reserve Bank of India has recognized the Hindi Griha Patrika of United Bank of India"United Darpan" for its excellence for the Financial Year 2016-17 with a trophyand certificate of appreciation. The award was given on 26.06.2018 at the Head Office ofReserve Bank of India.

United Bank of India wins Excellence in IT Infrastructure Award (Network SecurityProject):

United Bank of India won Excellence in IT Infrastructure Award (Network SecurityProject). The Bank has deployed various technologies to enhance Cyber Security posture ofthe Bank. Along with internal control system United Perimeter Shield has been deployed toprevent various

Internet based attacks.

Based on above work Bank had participated in an award program conducted by theInternational Council of Electronic Commerce Consultants (EC-Council) India. Bank'sproject was shortlisted and awarded on Excellence in IT Infrastructure (Network SecurityProject). The award was received on on March 26 2019.

Details of fraud committed:

During the financial year 2018-19 fraud committed by officers/ employees of theBankamountsto Rs 19.09 lakh which has been duly reported to the concerned regulatoryauthority.

Corporate Social Responsibility:

The Bank undertakes activities under CSR through trust viz. United Bank Socio-EconomicDevelopment Foundation (UBSEDF). UBSEDF was established on March 30 2007 with theobjective of promoting and carrying out social and economic development activities andrendering assistance to weaker and under privileged sections of the society in terms ofdecision taken by the Board of Trustees. The Board of Trustees of UBSEDF comprises of thefollowing members as on March 31 2019 -

1. Shri Ashok Kumar Pradhan Managing Director & Chief Executive Officer 2. ShriSanjay Kumar Executive Director 3. Sri Ajit Kumar Das Executive Director 4. Sri VinayGandotra General Manager (HR & FI) 5. Sri Mukti Ranjan Ray General Manager (PrioritySector & LBD)

Till March 31 2019 the Bank has extended financial assistance to 93 various welfareactivities involving a total sum ofRs 327.43 lakhs. The focus has been on extendingassistance to the activities under Health care Education Go-Green project SoilConservation Social Welfare activities. In the year under review the Bank has disbursedRs 30.28 Lakh for implementation of 5 projects by the respective organizations towardscause of the society.


In view of the loss incurred the Board of Directors has not recommended any dividendfor financial year 2018-19.

Dividend Distribution Policy:

In terms of Regulation 43A of the SEBI (Listing Obligations and DisclosureRequirements) 2015 the Bank has formulated a Dividend Distribution

Policy governing criteria quantum and circumstances governing distribution of dividendto its shareholders. The Policy is attached as Annexure

I and forms part of this Report and is also available on the Bank's website at


Directors Responsibility Statement:

In terms of Section 134(3)(c) of the Companies Act 2013 (to the extent applicable)your Directors confirm that

(a) in the preparation of the Annual Accounts for the financial year ended March 312019 the applicable accounting standards have been followed and there are no materialdepartures;

(b) the Directors have selected such accounting policies and applied them consistentlyand made judgments and estimates that are reasonable and prudent so as to give a true andfair view of the state of affairs of the Bank as at March 31 2019 and the profit of theBank for the year ended on that date;

(c) the Directors have taken proper and sufficient care in maintaining adequateaccounting records in accordance with the provisions of the Act for safeguarding theassets of the Bank and for preventing and detecting fraud and irregularities;

(d) the Annual Accounts have been prepared on a ‘going concern' basis;

(e) the Directors have laid downinternalfinancialcontrols to be followed by the Bankand we consider such internal financial controls to be adequate and effectivelyoperational; and

(f) the Directors have devised proper systems to ensure compliance with the provisionsof all applicable laws and we consider such systems to be adequate and effectivelyoperational.

Compliance of Secretarial Standards:

The Bank a Body Corporate in terms of the Banking Companies (Acquisition and Transferof Undertakings) Act 1970 read with Nationalised

Banks (Management and Miscellaneous Provisions) Scheme 1970 has complied with theSecretarial Standards issued by the Institute of Company Secretaries of India asapplicable.

Secretarial Audit:

Pursuant to Regulation 24A of SEBI (Listing Obligations and Disclosure Requirements)Regulations 2015 (including any amendment thereto or modification thereof) the Bank hasappointed M/s. T. Chatterjee & Associates Practicing Company Secretaries to undertakethe Secretarial Audit of the Bank for the financialyear 2018-19. The SecretarialAuditReportforthefinancialyear 2018-19 is attached as Annexure II and forms a part of thisReport. The Secretarial Audit Report does not contain any qualification reservationadverse remark or disclaimer.

Employee Share Purchase Scheme:

With a view to motivate the potential and dynamic employees and reward and recognizethe experienced hands as well as augment Bank's equity capital the Bank with the approvalof the shareholders at the Extra-ordinary General Meeting held on February 27 2018 hasformulated a Scheme viz. United Bank of India Employee Share Purchase Scheme 2018(UBI-ESPS 2018/ Scheme) in accordance with the SEBI (Share Based EmployeeBenefits)Regulations2014includinganyamendmenttheretoormodificationthereof (SEBI SBEBRegulations). UBI-ESPS 2018 enabled the Bank to grant up to a maximum of 50000000equity shares in one or more tranches to the ‘Eligible Employees' of the Bank. The

Bank with the approval of the competent authority revised the lock-in requirements ofthe shares allotted under the Scheme in line with Regulation 22(2) of SEBI SBEBRegulations.

The Issue was open for subscription by the ‘Eligible Employees' on and from July30 2018 till August 31 2018. The price of shares under the Scheme was determined at adiscount of 5% on the average of the weekly high and low of the closing prices of equityshares of the Bank as quoted on the Stock Exchanges recording higher volume of trading inBank's shares during the two weeks preceding the date of offer i.e. July 30 2018 roundedoff to the nearest multiple of 5 paisa. The Bank on September 13 2018 issued and allotted29202589 equity shares of Face Value of Rs10/- each at an Issue Price of Rs10.55/- perequity share to the Eligible Employees of the Bank under the said Scheme. The applicabledisclosures as stipulated under the SEBI SBEB Regulations read with relevant SEBI Circulardated June 16 2015 pertaining to the said Issue is provided as Annexure III to thisReport. Post allotment and listing of the 29202589 Equity Shares issued under theUBI-ESPS 2018 the balance equity shares (i.e. 20797411 Equity Shares) not offered/subscribed under the Scheme stand cancelled and UBI-ESPS 2018 stands terminated.

Pursuant to Regulation 13 of SEBI SBEB Regulations Mookherjee Biswas & PathakArun K. Agarwal & Associates SBA Associates and Dinesh Jain & AssociatedChartered Accountants Statutory Central Auditors of the Bank have certified that theUBI-ESPS 2018 have been implemented in accordance with the SEBI SBEB Regulations and theresolutionpassedbytheShareholdersinthisregard(Certificateannexed as Annexure IV to thisReport).

Corporate Governance:

The report on Corporate Governance is covered in a separate section (Page 46) of thisAnnual Report.

Annexures forming part of this Report:

The Annexures referred to in this Report and other information which are required to bedisclosed are annexed herewith and form part of this Report:

Annexure Particulars
I Dividend Distribution Policy
II Secretarial Audit Report
III Details of UBI-ESPS 2018
IV Auditors Certificate on UBI-ESPS 2018



The Dividend Distribution Policy of the United Bank of India (hereinafter referred toas ‘the Bank') is being framed as per Securities and Exchange Board of India'sNotification No. SEBI/LAD-NRO/GN/2016-17/008 dated July 8 2016. The Bank being among thetop 500 listed entities based on market capitalization is required to formulate thepolicy.


The Policy may be named as the United Bank of India Dividend Distribution Policy andshall come into effect from the date of adoption of the same by the Board of Directors ofthe Bank.


The Bank through this Policy would endeavor to maintain a consistent approach todividend pay-out plans and to strike the right balance between the quantum of dividendpaid and amount of profits retained in the business.


(a) The Banking Regulation Act 1949

(b) The Banking Companies (Acquisition & Transfer of Undertakings) Act 1970

(c) RBI Circular RBI/2004-05/451 DBOD.NO.BP.BC. 88 / 21.02.067 / 2004-05 dated04.05.2005 (d) RBI Master Circular dated July 1 2015 (e) Ministry of Finance LetterF.No.10/3/2010-BOA dated April 13 2010 (f) Ministry of Finance Letter F.No.10/3/2010-BOAdated January 18 2013 (g) SEBI (Listing Obligations & Disclosure Requirements)Regulations 2015 (h) United Bank of India (Shares & Meetings) Regulation 2010 (i)Secretarial Standard - 3 issued by the Institute of Company Secretaries of India onDividend


(a) Dividends are the pay-outs that organisations make to their shareholders as areturn on their investments. It is one of the simplest ways for companies to communicatefinancial well-being and shareholder value. Dividends send a clear and powerful messageabout future prospects and performance of an organisation.

(b) According to the generally accepted definition "dividend" means theprofit of an organisation which is not retained in the business and is distributed amongits shareholders in proportion to the amount paid-up on the shares held by them. Dividendalso includes any interim dividend.


(a) Dividends are declared by the Bank as per the guidelines issued from time to timeby Reserve Bank of India (RBI) and Government of India (GoI). The Board of Directors(hereinafter referred to as ‘the Board') at its discretion while approving theannual accounts in each financial year may also recommend the dividend for approval ofthe shareholders after taking into account the free cash flow position the profit earnedduring that year the Capex requirements and applicable taxes. (b) Dividend other thandividend on cumulative preference shares issued by the Bank if any not declared in anyfinancial year shall not accrue for payment in subsequent financial year.

(c) The Board shall have the absolute discretion subject to the Reserve Bank of India(RBI) guidelines and Ministry of Finance (MoF) Notification/Direction if any to declareinterim dividend in between the Annual General Meetings.


(a) As per the RBI Circular RBI/2004-05/451 DBOD.NO.BP.BC. 88 / 21.02.067 / 2004-05dated 04.05.2005 read with RBI Master Circular dated July 1 2015 the Bank shall complywith the following minimum prudential requirements to be eligible to declare dividends:-(b) CET 1 Ratio shall not be less than 6.125%.

(c) The Bank should have Capital to Risk weighted Assets Ratio (CRAR) of at least 10%for preceding two completed years and at least 10.25% for the accounting year for which itproposes to declare dividend (d) The Bank shall be in compliance with the provisions ofSection 15 (Restrictions as to payment of dividend) and Section 17 (transfer sum not lessthan 20% of profit to reserve fund) of the Banking RegulationAct 1949 prior todistribution of dividend.

(e) The Bank shall be in compliance with the prevailing regulations/guidelines issuedby RBI including creating adequate provisions for impairment of assets and staffretirement benefits transfer of profits to Statutory Reserves etc.

(f) The proposed dividend shall be payable out of the Current year's profit.

(g) There shall not be explicit restrictions imposed by RBI on the Bank for declarationof dividends.


(a) If the eligibility criteria are fulfilledthe Bank may declare and pay dividendsubjecttothefollowing ceilings

CET-1 ratio after including current yr's retained earnings Minimum Capital Conservation Ratios Payment by way of dividend/bonus
5.5% - 6.125% 100% Nil
6.125% - 6.75% 80% 20%
6.75% - 7.375% 60% 40%
7.375% - 8.0% 40% 60%
>8.0% 0% 100%

(b) In case theprofits/incomethe pay-out ratio shall be computed afterexcluding for relevantperiodincludesanyextra-ordinary such extra-ordinary items forreckoning compliance with the prudential pay-out ratio.

(c) The financial statements pertaining to the financial year for which the bank isdeclaring dividend should be free of any qualifications from the Statutory Auditors whichhave an adverse bearing on the profit during that year. In case of any qualification netprofit should be suitably adjusted while computing the dividend payout ratio.

(d) As per MoF Notification F. No. 10/3/2010 BOA Bank shall pay a minimum dividend of20% of paid-up capital or 20% of post-tax profits whichever is higher for a financialyear. In case the Bank is not able to pay the minimum dividend as stated above the Bankshall seek special permission from the Central Government for not paying dividend orpaying dividend at a rate lesser than the minimum rate prescribed.


The decision regarding dividend pay-out is an important decision as it determines theamount to be distributed among the shareholders and the amount of profit to be retained inbusiness. The interest of the Organisation and all its stakeholders backdrop of followinginternal and external factors while deliberating and deciding on the proposal ondeclaring dividends:- (a) EXTERNAL FACTORS i. STATE OF ECONOMY in case of uncertainor recessionary economic and business conditions Board will endeavor to retain largerportion of profits to build up reserves to absorb future shocks. ii. CAPITAL MARKETS whenthe markets are favourable dividend pay-out can be liberal. However in case ofunfavourable market conditions Board may resort to a conservative dividend pay-outapproach in order to conserve cash flows. iii. STATUTORY RESTRICTIONS The decision onpay-out of dividend shall be in accordance with regulatory restrictions imposed if any.

(b) INTERNAL FACTORS i. Profits earned during the year ii. Interim dividendpaid if any iii. the Annual Financial Inspection findings by the Reserve Bank of Indiawith regard to divergence in asset quality or provisioning etc. iv. the auditors'qualifications pertaining to the statement of accounts v. the Basel III capitalrequirements vi. Business growth plans of the Bank for 5 years vii. Replacementrequirements of capital assets viii. Fresh Investments or Additional investments insubsidiaries/associates of the Bank ix. Any other factor as may be deemed fit by theBoard.


(a) The factors and parameters for declaration of dividend to different classes ofshares shall be same as mentioned in Clause 9 above. The payment of dividend shall bebased on the respective rights attached to each class of shares as per their terms ofissue and guidelines as applicable.

(b) Dividend on Equity shares shall be paid out of current year's profit only.Dividends are paid only after all legal and contractual obligations have been met andpayments on senior capital instruments have been made. This means that there are nopreferential distributions including in respect of other elements classified as thehighest quality issued capital.


(a) Dividend once declared becomes a debt to the Bank.

(b) The Bank shall have full discretion at all times to cancel distributions/payments.

(c) Cancellation of discretionary payments must not be an event of default.

(d) The Bank shall have full access to cancelled payments to meet obligations as theyfall due.

(e) Cancellation of distribution/payments shall not impose restriction on the bankexcept in relation to distribution to shareholders.

(f) The instrument cannot have any credit sensitive coupon feature i.e. a dividend thatis reset periodically based in whole or in part on the

Bank's credit standing.


(a) Dividends shall be declared on a par share basis as a percentage of the face valueof the shares.

(b) Stock Exchanges shall be notified at least 2 working days prior to the date of themeeting of the Board of Directors at which the recommendation of final dividend is to beconsidered and shall be intimated within 30 minutes of the conclusion of the BoardMeeting about the recommendation of dividend.

(c) The Board of Directors at its meeting shall recommend dividend finalize the bookclosure/ record date authorize opening of bank accounts designate signatories foroperating accounts/ issuing dividend warrants and engage such intermediaries as may berequired in connection with the declaration and payment of Dividend.

(d) The dates of closure of the register of members and the share transfer register orthe Record Date as the case shall be intimated to the Stock Exchanges at least 7 workingdays prior to the closure of register of members and share transfer book and published inan English newspaper having nationwide circulation and one Bengali newspaper.

(e) All share transfer requests received before the closure of the register of members/Record Date shall be processed by the Registrar & Share Transfer Agent and approved bythe Board/ Committee of the Board.

(f) The declaration of dividend shall be placed at the Annual General Meetings as anordinary business agenda and approved by simple majority (ordinary resolution). (g) Theshareholders cannot declare the final dividend at a rate higher than the one recommendedby the Board however they may declare the final dividend at a rate lower than the raterecommended by the Board. (h) Once the Dividend is declared at the Annual General Meetingin respect of a financial year the Bank shall not declare further dividend at anExtraordinary General Meeting in relation to the same financial year.

(i) The dividend declared for each financial year shall be transferred to separate bankaccounts and the Bank shall ensure that the entire amount of dividend payable afterpayment of Dividend Distribution Tax is transferred to the designated account within fivedays after the declaration of dividend.

(j) The Bank shall make the necessary arrangements for transfer of the dividend amountto the shareholder by electronic modes and ensure dispatch of the dividend warrants within30 days of declaration of dividend.

(k) The amount remaining unpaid or unclaimed shall be transferred to the UnpaidDividend Account for the particular financial year within 7 days of expiry of the 30 days'period.

(l) The Bank shall prepare a shareholder wise statement of unpaid dividend and uploadthe same on Bank's website within 90 days of transferring to the Unpaid Dividend Account.


(a) The Board at its meeting for declaring interim dividend must satisfy itself thatthe Bank's financial position justifies The Interim Dividend shall be paid out of thesurplus in the Profit & Loss Account and profit for the financial dividend is proposedto be declared. Interim Dividend shall not be paid out of the reserve fund of the Bank.

(b) The interim dividend shall not be declared in case the Bank has incurred net lossduring the current financial year up to the end of the quarter immediately preceding thedate of declaration of interim dividend.

(c) The interim dividend shall not be declared at a rate higher than the average rateof dividend declared by the Bank during immediately 3 preceding years.

(d) The Board of Directors at its meeting shall declare interim dividend finalize thebook closure/ record date authorize opening of bank accounts designate signatories foroperating accounts/ issuing dividend warrants and engaging such intermediaries as may berequired for declaration and payment of Dividend. The Bank shall deposit the amount ofInterim Dividend within five days of declaration. (e) The interim dividend declared shallbe confirmed at the next Annual General Meeting.


(a) If preference shares have not been redeemed then no Dividend should be declareduntil dividend on such preference shares is paid or the preference shares are redeemed.

(b) Preference shareholders should be paid dividend before dividend is paid to equityshareholders of the Bank.

(c) Dividend payable on Perpetual Non-cumulative Preference Shares (PNCPS) shall bepaid out of the current years' profit.

(d) In the case of Interim Dividend while preference shareholders need not necessarilybe paid dividend before interim dividend is paid to equity shareholders the Board shallset aside such sum as would be necessary to pay dividend to preference shareholders at thecontracted rate.

(e) Arrears of dividend on cumulative preference shares issued should be paid beforepaying any dividend.


(a) Amount of dividend remaining unpaid or unclaimed for a period of 7 years from thedate of transfer of such dividend to Unpaid Dividend

Account shall be transferred along with interest if any by the Bank to the Investors'Education & Protection Fund (IEPF) established by the Central Government.

(b) The Bank shall file with the Ministry of Corporate Affairs (MCA) the details ofunclaimed/unpaid dividend each year and the amount of unpaid/unclaimed dividendstransferred to IEPF each year and shall maintain the details thereof.


(a) The application for payment of dividend out of the Unpaid Dividend Account shall beaccompanied by indemnity bond in prescribed amount where the amount of dividend is morethan Rs.10000/- proof of identity proof of residence dividend warrant/lettersuccession certificate/probate/letter of administration (in case of deceased person)provided that the requirement of indemnity bond shall be dispensed with in case ofstate/central government government company public sector undertaking or a publicfinancial institution. (b) Unclaimed dividend transferred to IEPF shall be claimed bymaking an application to IEPF Authority.


(a) All dividends paid by the Bank on its equity shares and preference shares shall bereported in the Directors' Report to the shareholders. (b) Details of dividend declaredduring the accounting year shall be reported to RBI as per the proforma furnished in Annex2 to the RBI

Circular RBI/2004-05/451 DBOD.NO.BP.BC.88/ 21.02.067/2004-05 dated 04.05.2005. Thereport shall be furnished within a fortnight after declaration of dividends.

(c) All instances of non-payment of dividends shall be notified by the issuing banks tothe Chief General Managers-in-Charge of Department of Banking Regulation and Department ofBanking Supervision of RBI Mumbai.


The Board shall have the authority to retain the Bank's earnings as may be in theopinion of the Board required for business expansion improvement of capital adequacydiversification or such other purposes as may be deemed fit by the Board for ensuringoptimum utilization of available resources and enhancement of the shareholder value.


(a) In case where any specific provision of this policy is in conflict with anydirection notification guidelines of the Central Government and RBI the said directionnotification guidelines would prevail.

(b) The Board of Directors of the Bank shall be the competent authority to allow anydeviation from this policy in the matter related to dividend. 20. IMPLEMENTATION

This Policy shall become effective from the date of its adoption by the Board and shallremain in force till the time it is not amended or revoked by the Board or amendments inthe relevant provisions of RBI GOI SEBI and other regulators if any.


This policy shall be uploaded on the website of the Bank anda web link shall be provided in the Annual Report. The Bank shall update the Policy on itswebsite as and when any change is made in the Policy.