I. PERFORMANCE OF THE BANK DURING 2018-19:

1. UCO’s Delivery Channels:

1.1 BRICK AND MORTAR NETWORK:

Bank has a geographically well-spread branch network in India and also has presence abroad. As of 31.03.2019, Bank has 42 Zones and 3086 domestic branches and 2 overseas branches (one each in Singapore and Hong-Kong). Bank’s representative office has been established in Tehran, Iran which is functional w.e.f. 25.03.2017.

The Global branch network over 5 years is as under:- (Global)

1.2 BRANCHES & OFFICES NETWORK:

The population category-wise break-up of domestic branches as of 31.03.2018 & 31.03.2019 is given below:

The domestic branches include 5 Flagship corporate branches, 7 AssetManagement branches, 4 service branches and 1 central processing centre, 1 integrated treasury branch. Further 27 Retail loan hubs, 1 SME hub, 72 currency chests are also functioning across the country attached to the major city branches of various centres.

2. BUSINESS PROFILE:

2.1. GLOBAL:

- Global business of the Bank stood at Rs.3,17,480 crore as of 31.03.2019 compared to Rs.3,05,838 crore showing an increase of 3.81% over March 2018.

- Global Deposits has increased by 8.83% as of 31.03.2019 and stood at Rs.1,97,906.78 crore. Global advances fell by 3.56% and stood at Rs.1,19,573.01 crore compared to Rs.1,23,990 crore as of 31.03.2018.

2.2. DOMESTIC:

- Overall domestic business of the Bank has increased by 8.28% reached at Rs.3,04,016.68crore as of 31.03.2019 from Rs.2,80,763.62 as of 31.03.2018.

- Total deposits increased by 11.78% and stood at Rs.1,92,278.15 crore.

- Advances registered a growth of 2.75% from Rs.108746.19 crore to Rs.111738.53 crore.

- CASA deposits increased by 33.53% on Y-O-Y and stood at Rs.85,559.42 crore, SB deposits grew by 8.35% and stood at Rs. 59,316 crore. Current deposits stood at Rs.26243.07 crore compared to Rs. 9329.68 as of 31.03.2018, showing a growth of 181.29% on Y-O-Y basis.

- Share of low cost deposits (CASA), in domestic deposits improved from 37.25% as of 31.03.2018 to 44.50% as of 31.03.2019.

2.3 FINANCIAL PERFORMANCE:

Bank has incurred loss of Rs.4321 core during FY 2019 as compared to Rs.4436 crore in FY 2018. The loss during FY19 is decreased and the operating Profit for FY 2019 is Rs.2760 crore as against Rs.1334 crore during FY 2018, thereby reflecting an increase of 106.89%. During the year FY 2019 Total income registered growth of 4.64% from Rs.15141 crore in FY 2018 to Rs.15844 crore in FY 2019. Total expenses of the Bank has declined by Rs.723 crore in FY 2019 against the previous year FY 2018. During the year Bank made provision of Rs.7081 crore against Rs.5771 crore in FY 2018.Cost of deposits has decreased from 5.37% in FY 2018 to 5.07% in FY 2019. Net interest income increased to Rs.4311 crore in FY 2019 from Rs.3125 crore in FY 2018. Capital Adequacy Ratio (CAR) under Basel lII stood at 10.70% as on March 2019. Govt. of India infused Capital to the tune of Rs.3330 crore during the quarter ended 31.3.2019.

3. TREASURY & INTERNATIONAL:

Domestic Investment of the Bank during the year 2018-19 increased by 15.20% from Rs.69987 crore as on 31.03.2018 to Rs.80622 crore as on 31.03.2019 largely due to allotment of recapitalization bond and purchase of Government securities.

The SLR investment of the Bank increased by 8.31% from Rs.52471 crore as on 31.03.2018 to Rs.56834 crore as on 31.03.2019 mainly due to purchase of high yielding Govt. Securities. The Non-SLR Investment (Domestic) grew by 35.81% from Rs.17516 crore as on 31.03.18 to Rs.23788 crore as on 31.03.19 mainly due to allotment of recapitalization bond from GoI amounting to Rs.6406 crores.

During the year 201 8-1 9, the bank has earned income from Treasury operations including profit from sale of investments amounting to Rs.6252.47 crore vis-a’- vis Rs.6005.45 crore during the year 2017-18, thereby registering a 4.11% increase in treasury income y-o-y basis mainly due to higher interest income from investments and profit from sale of investments.

During the year 2018-19, the bank has registered a growth of 2.97% in interest income from domestic investments which stands at Rs.5326.45 crore as on 31.03.19 as compared to Rs.5173.03 crore as on 31.03.18 thereby registering a growth of Rs.153.43 crore y-o-y basis mainly due to increase in domestic Investment portfolio.

3.1 Export Business:

“With 66 ‘B’ Category Branches across India, UCO Bank is committed to actively cater to the needs of its exporters. Total Merchant Turnover of the Bank during the Financial Year ended 31st March, 2019 stood at Rs.72,485.11 crore which is 78.82 % higher than previous year. Bank Export credit outstanding during 31st March, 2019 is 2,204.40 crore, registering a growth of 11.46% over 31st March, 2018.

‘UCO Bank’, has been facilitating Bi-lateral Banking Trade transactions with Iran under “Rupee Payment Mechanism” since Feb, 2012 as mandated by Govt. of India/RBI, thereby facilitating Indian Exporters, exporting permissible goods and services to Iran.

4. SOCIAL BANKING:

4.1. Priority Sector Advances:

The Bank has been showing significant performance in lending to Priority Sector over the years and has been effectively servicing the priority sector and agriculture sector with its vast network of rural and semi-urban branches.

As on 31.03.2019 the Priority Sector Advances of the Bank stood at Rs.54,849 crore constituting 43.48% of Adjusted Net Bank Credit (ANBC).

4.1.1. Agriculture Advances:

Total Agriculture Advances of the Bank stood at Rs.21,420 crore constituting 16.98% of ANBC. Direct Agriculture stood at Rs.16,452 crore constituting 13.04% of ANBC.

4.1.2. Advances to Weaker Sections:

Advances to Weaker Section stood at Rs.16479 crore as of 31st March, 2019 constituting 13.06% of ANBC.

4.1.3. Minority Community Advances:

Total Minority Community Advances of the Bank as on 31.03.2019 stood at Rs.7141 crore constituting 15.25% of Priority Sector Advances.

5. Unique Schemes:

The Bank has one unique scheme - “UCO Uthaan” for upliftment of BPL families & all-round development of adopted villages.

UCO Uthaan Scheme: Social-cum-Financial upliftment scheme for BPL families & all-round development of villages.

Under the Scheme, villages having large number of BPL families are adopted by the Bank through its nearest branch to bring the BPL families out of the clutches of poverty and to bring about a holistic change in the villages. Under the scheme, a holistic development plan of the villages is drawn and followed up for covering areas like education, financing for rural housing, formation of SHG and micro-financing, development of handicrafts & rural artisans and extending finance under DRI Scheme.

The Bank has adopted 31 villages in 10 states i.e. Assam, Bihar, Gujarat, Maharashtra, Odisha, Punjab, Rajasthan, Tamil Nadu, Uttar Pradesh & West Bengal under UCO Uthaan Scheme.

In these villages, Bank has conducted financial literacy camps to educate the villagers, extended financial support to them and has also initiated developmental activities under Corporate Social Responsibility. Under financial assistance, Bank has given General Credit Cards (GCC) to small traders, Artisan Credit Cards (ACC) to artisans, Kisan Credit Cards (KCC) to farmers, loan to SHGs, loan for doing animal husbandry activities, loan to women & SC/ST beneficiaries. Many small traders have started their own business with the support of Bank loan. Through CSR activities, Bank has given Ceiling Fans, Water purifiers to different schools, Steel Almirahs, Books for school library, School uniform for school going children, installation of hand pumps for drinking water in the villages, installation of Solar street lights in the villages, construction of metallic road.

In two villages, out of above 31 villages, Bank has provided doorstep banking facilities to the villagers of these unbanked villages through Mobile Van. The Van visits these two villages on a predetermined day and time during the week and provides all types of banking facilities to the villagers at their doorstep. There has been increase in the saving habits of the villagers due to this initiative. Through these vans, villagers are also being financially educated. By these activities, there is an all-round development in the adopted villages and the villagers are very much benefitted.

By these efforts, 6568 BPL families, in these 31 adopted villages have been provided with credit assistance by Bank to uplift their livelihood in better way during last 4 years. These BPL families are generating their income by adopting several activities like dairy farming, goat farming, betel leaf cultivation, vegetable growing, cycle repairing, shoe mending, fruit vending, grocery shop, tea stall, beedi making, trolley plying, mason jobs etc.

5.3 During the year 2018-19, Bank has introduced many new schemes to increase agriculture business. Some of the schemes are given below:

- UCO Food & Agro Processing Unit.- Financing new/existing Agro & Food Processing units.

- Two- wheeler, light &Medium Vehicle for farmer.- The scheme is specially designed to provide hassle free financial assistance for conveyance needs of farmer for farm activities.

- UCO FPC( Farmer Producer Company) & UCO NFPC(UCO Non- Farmer Producer Company) .

- UCO AMI - Agricultural Marketing Infrastructure.- The UCO AMI Scheme lays special focus on developing and upgrading Gramin Haats as Gramin Agricultural Markets (GrAMs) through strengthening of infrastructure.

- UCO BC PLUS - UCO Bank has entered in to tie up arrangement with M/s atyati Technologies Private Limited for increase of Credit linkage in Agriculture & Allied Activities under Business Correspondent (BC) Channel.

The Bank has signed MoU with M/s Atyati Technologies on 31-01-2019 in this regard. Following Loan products have been implementedon UCO BC PLUS scheme:

a) UCO BC PLUS - DAIRY.

b) UCO BC PLUS - CROP PRODUCTION.

c) UCO BC PLUS - RURAL BUSINESS CENTRE.

6. REGIONAL RURAL BANKS (RRBs):

UCO Bank sponsored RRB namely, Paschim Banga Gramin Bank (PBGB) is head quartered at Howrah, West Bengal with four regional offices and 230 branches as on 31.03.2019. Another sponsored RRB, Bihar Gramin Bank has been amalgamated with Madhya Bihar Gramin Bank(sponsored by Punjab National Bank) and a new RRB named Dakshine Gramin Bank (Sponsored by Punjab National Bank) has been formed w.e.f. 01.01.2019.

6.1 Capital Position of RRBs:

The total capital composition of Paschim Banga Gramin Bank as on 31.03.2019 stood at Rs.154.51 crore (Govt. Of India), Rs.108.16 crore (UCO) & Rs.46.35 crore (West Bengal State Govt.).

Performance of RRB during 2018-19:

6.1.1. Paschim Banga Gramin Bank:

As per unaudited financial results, total deposit of Paschim Banga Gramin Bank stood at Rs.5181.30 crore as on 31.03.2019, registering growth of 8.79 percent. Total advance reached a level of ‘.2739.53 crore with an annual growth of 13.25 percent as on 31.03.2019. CD ratio stood at 52.87% on 31.03.2019 as against 50.79% on 31.03.2018.

The gross NPA stood at Rs.373.45 crore as on 31.03.19 vis-a-vis Rs.474.54 crore as on 31.03.2018. Gross NPA to Gross Advance stood at 13.63% as on 31.03.2019 as against 19.62% as of 31.03.2018. The net NPA ratio of the RRB stood at 9.16% as on 31.03.2019 as against 14.85% as of 31.03.2018.

Paschim Banga Gramin Bank has recorded a net profit of Rs.25.57 crore as on 31.03.2019 as compared to net loss of Rs.39.40 crore as on 31.03.18, thereby decreasing accumulated loss from Rs.107.97 crore as on 31.03.2018 to Rs.82.40 crore as on 31.03.2019.

6.2. Corporate Social Responsibility:

Bank has taken several programmes/initiatives as a part of Corporate Social Responsibility. Few of these programmes/ initiatives are as under:

a) Our Bank has set up 27 Rural Self Employment Training Institutes in 7 States namely Assam, Bihar, Himachal Pradesh, Odisha, Punjab, Rajasthan and West Bengal. These 27 institutes, with dedicated infrastructures, are devoted to impart training and skill upgradation and to mitigate the unemployment and under employment problems for rural youths. These institutes are set up by the Bank as a part of the initiative taken up by the Ministry of Rural Development to establish dedicated training institutions for development of entrepreneurship skills in rural youth, under Corporate Social Responsibility (CSR). All RSETI trained 17883 candidates and 7792 beneficiaries have been provided Credit Linkage of Rs.98.72 crore during the Financial Year 2018-19.

b) Our RSETI, Goalpara, Assam was adjudged best performing RSETI among North Eastern & Hilly states for the year 2018-19 and was awarded certificate of excellence on Aajeevika Evam Kushal Vikas Mela held on 5th May, 2018 in Ranchi Jharkhand.

c) Bank under UCO Utthan scheme has adopted 31 villages falling under 26 UCO Branches in 19 Zones of the Bank for upliftment of BPL families and all-round development of adopted villages with financial & social intervention.

d) Under the initiative of Reserve Bank of India, bank has set up 10 CFLs (Centres for Financial Literacy) in 10 Blocks, 5 each in Bhadrak and Dhenkanal district of Odisha. The Bank and NABARD bear the cost of operationalisation of these CFLs in 40:60 ratios.

e) Bank has 34 Financial Literacy Centres across the country and has recruited 29 Financial Literacy Counsellors for conducting Financial Literacy Camps. During Financial Year 2018-19 the Financial Literacy Counsellors have conducted 6008 Financial Literacy Camps thereby spreading Financial Awareness to 353303 participants.

f) Under the initiative of NABARD, Financial Literacy Awareness Programme (FLAP) has been initiated in all Rural Branches of Our Bank for imparting financial literacy awareness for different target segments of population. Programmes were on digital literacy and safety measures to be adopted while doing e-transaction. Our Bank has 1075 Rural Branches where 9258 FLAPs were organised with contribution from our Bank in these programmes amounting to Rs.1.13 crore.

7. MICRO, SMALL & MEDIUM ENTERPRISES (MSME):

Bank recognizes importance of MSME sector in economic growth of the country. The advance under Micro, Small & Medium Enterprises (MSME) as on 31.03.2019 is Rs.23416.28 crore.

New Initiatives taken under MSME during FY 2018-19:

- Bank has taken Board approval for signing MOU with CGTMSE for participating as lender on the Udaan Portal. Since guarantees would be extended upfront, Bank can take credit decision right at the beginning.

- SME hubs proposed to be established in nine centres i.e. Kolkata, Mumbai, Hyderabad, Chennai, Bangalore, Ahmedabad, Chandigarh, Coimbatore and Surat. SME Hub at New Delhi has already been made functional to augment the business under MSME.

- New product on E-Rickshaw i.e. “E-Rickshaw under Mudra Scheme” has been launched on 28.06.2018.

- Bank introduced “Mukhya Mantri Swavalamban Yojana 2018” scheme for “Bonafide Himachali” i.e. resident of the State of Himachal Pradesh on 28.11.2018.

- New Schemes “UCO PM Credit Scheme for Powerloom Weavers under MUDRA” and “UCO PM Credit Scheme for Powerloom Weavers under Standup India” has been launched on 29.11.2018.

- Bank has tied-up with RXIL, one of the players at TReDS platform and is discounting online bill w.e.f. February 2019. A total of 656 bills were purchased amounting to Rs.35.45 crore during 05/02/2019 to 31/03/2019 on this platform.

- Scheme for financing “Two Wheeler under Mudra” launched w.e.f. 22.02.2019.

- Bank has tie-up with www.psbloansin59minutes.com, one of the fintech companies, for generation of leads and reduction of TAT.

8. RETAIL BANKING:

The performance highlights of the bank under retail banking during FY 2018-19 are furnished hereunder:

(Rs. in crore)

- Retail loan portfolio registered Y-o-Y growth of 2.46%. There is a growth of 6.70%, 0.07%, and 10.78% in Home loan, Car Loan, and Personal Loan Categories respectively during the FY 2018-19.

- NPA under Retail loan Portfolio (excluding Pool) reduced by Rs.91.88 crore during the year ended 31st March 2019 in comparison to 31st March 2018. During this period, NPA in all Retail Loan products, except UCO Property loan, has shown a downward trend.

- Pool account of Rs.500.00 crore under Home loan has been sourced during this Financial Year.

- Integration of Credit Information Report pulling through CIBIL and CRIF has been implemented in LAPS.

- Seven Retail loan Schemes have been customised for processing through LAPS.

- A new Education Loan Scheme “Chief Minister’s B.Ed. Anuprerna Yojna” is introduced to cater the financial needs of students domiciled in the State of Tripura who are pursuing B.Ed. course.

- UCO Gold Loan Scheme was modified and Processing & Documentation charges are completely waived in UCO Gold Loan Scheme to make it more competitive and in line with similar scheme of our peer Banks.

- An MOU was signed with M/s Prasar Bharti to provide Retail Loans at concessional rate to Employees/Deemed Employees of M/s Prasar Bharti.

- 100% waiver of processing charges was given to the Land Lords of our Bank’s Branch/ATM premises under UCO Rent Scheme till 31.03.2019.

- To streamline processing of Retail Loans and reduce the turnaround time, “Revised structure & Operational Guidelines of Retail Loan Hubs” were implemented. Three more RLHs at Bangalore, Shimla and Bhubaneswar were established during the current Financial Year.

- Bank has introduced “Monsoon Offer-2018” from 01.07.2018 to 30.09.2018 wherein 100% processing and documentation charges are waived in Home and Car Loans.

- Bank has also introduced “Grand festive offer-2018” from 01.11.2018 to 31.01.2019 which is further extended to 31.03.2019 wherein 100% processing and documentation charges are waived in Home and Car Loans.

9. BANCASSURANCE:

- Bank increased the number of Specified Persons (SPs) during the Fiscal 2018-19 for augmenting Bancassurance business. These Specified Persons are duly trained and certified by Insurance Regulatory & Development Authority of India (IRDAI). Number of Specified Persons posted in Branches/Zones is 316 in March 2018 and subsequently increased to 332 in March 2019.

- Bank is a Corporate Agent for Life and General Insurance Companies and Master Policy Holder for Group Life Insurance category.

1. Life Insurance Channel Partner:-

(a) M/s Life Insurance Corporation of India

2. General Insurance Channel Partners:-

(a) M/s Reliance General Insurance Company Co Ltd.

(b) M/s Future Generali India Insurance Co Ltd.

(c) M/s Liberty General Insurance Ltd.

3. Group Life Insurance Channel Partner:-(a) M/s Kotak Mahindra Old Mutual Life Insurance Co. Ltd.

- Bank also distributes units of the following Mutual Fund Channel Partners:-

1. M/s. Kotak Mahindra AMC Ltd.

2. M/s. Reliance Nippon Life Asset Management Limited,

3. M/s. SBI Funds Management Private Limited.

4. M/s. UTI AMC Limited

5. M/s. HDFC Mutual Fund

6. M/s. Baroda AMC India Limited

7. M/s. ICICI Prudential AMC Limited

8. M/s. Franklin Templeton Mutual Fund

9. M/s. Aditya Birla Sun Life AMC Limited

The total Commission earned from Bancassurance Business for FY 2018-19 is Rs 897.88 lakhs.

10. FINANCIAL INCLUSION:

10.1. Pradhan Mantri Jan Dhan Yojna (PMJDY):

Bank has been allotted with 16225 villages across the country to provide inclusive Banking Facility in unbanked / under banked areas. In line with DFS directives these villages were categorized into 4066 Sub Service Area (SSA). Out of these 4066 SSAs, 3600 SSAs are covered though BC agents and remaining 466 SSAs in tier 5 villages (Population above 5000) are covered through Branches for ensuring universal Financial Inclusion and to bring the entire population under ambit of structured Banking facility. Bank has deployed 3564 Bank Mitras in these allotted SSAs. During the FY 2018-19 total 167.78 lacs transactions amounting Rs.6281.55 crore averaging every month about 13.98 lacs transactions amounting Rs.523.46 crore carried out through Micro ATMs used by BC Agents.

By end of March 2019 Bank has Rs.2221.30 crore deposits in 76.43 lacs PMJDY Accounts with average balance of Rs.2906.08. We have distributed around 39.98 lacs RuPay Cards to the eligible PMJDY account holders. During the FY 2018-19 average transactions to the order of 1.50 lacs took place through Rupay Cards on Micro ATMs used by BC agents amounting to Rs.75.70 crore in aggregate.

10.2. Aadhaar Seeding & Authentication:

As per revised guidelines Aadhaar can be given voluntarily as identity proof for opening customer accounts. Aadhaar is required for availing benefits under various welfare schemes. By 31st March 2019, around 84% operative CASA have been seeded with Aadhaar number and Aadhaar authentication has been done in 52% of operative CASA. Aadhaar based Direct Benefit Transfer worth Rs.5905.90 crore was transferred to the accounts of beneficiaries.

10.3. Aadhaar Enrolment Centre:

A total no of 300 Aadhaar Enrolment centers has been set up covering 10% of the branches as per UIDAI guidelines in our Bank. So far, 1016 staff members (operators/supervisor) have passed the certification exam and 1016 User IDs are activated in our bank. At present Bank is doing about 8 enrolments/updations per day per centre.

10.4. Micro Credit-Overdraft Facility:

Detailed guidelines by IBA for providing Overdraft facility up to 10,000/- has been sent to all branches/zones. Number of PMJDY accounts using the OD facility in the bank as on 31.03.2019 is 161556 involving aggregating sanctioned amount of Rs.32.38 crore.

10.5. Social Security Schemes:

Working on the government’s theme of providing social security to hitherto unbanked masses, Bank has implemented Insurance and Pension products namely, Pradhan Mantri Jeevan Jyoti Bima Yojna (PMJJBY), Pradhan Mantri Suraksha Bima Yojna (PmSBY), Atal Pension Yojna (APY) through its Branch and BC network. Under PMJBY scheme, 7.95 lakh subscribers are insured and under PMSBY scheme 15.58 lakh lives are insured. So far a total of 3137 claims are settled under PMJJBY and 665claims are settled under PMSBY. Further, total subscribers under Atal Pension Yojna crossed 1.99 lac till year end.

10.6. Revenue generated through Financial Inclusion Project:

Consistent, efforts under Financial Inclusion have given good results and Bank has started gaining both tangible and intangible benefit out of these activities. While decongestion of branches, reduction of transaction cost and increase in CASA base are intangible benefits of FI Project. Tangible benefits have come in the form of commission earned under various products. Bank has earned Rs.193.13 lacs in PMJJBY, Rs.22.80 lacs in PMSBY and Rs.76.34 lacs in APY as commission during FY-2018-19. Similarly an aggregate amount of Rs.7.28 crore is earned against DBT / DBTL during the year.

11. GOVERNMENT BUSINESS:

Government Business Cell handle Small Saving deposit schemes, collection of direct and indirect taxes, Central and State Government Pension, Atal Pension Yojna (APY), Sovereign Gold Bonds (SGB) and National Pension System (NPS).

During the 2018-19 all Branches have been authorized for the opening of account under Public Provident Fund (PPF), Sukanya Samriddhi Accounts (SSA) and Senior Citizen Saving Scheme (SCSS). There was increase in the accounts opened under PPF -9984 (23%) and Sukanya Samriddhi Accounts scheme -14,675(71%) during the year 2018-19.

There was a substantial increase in accounts opened under APY Scheme, from 64730 during 2017-18 to 78745 during 2018-19 shows 22% Y-o-Y growth.

Bank earned Turn over Commission to the tune of Rs.20 crore during 2018-19 on various productsnamely different state tax collections, CBDT tax collections, CBEC tax collections, central and state government pensions, Atal pension Yojna(APY), PPF, Sukanya Samridhi Yojana , SCSS and Sovereign Gold Bond etc.

12. LEGAL MATTERS:

With the ever changing trend of the legal contours concerning the Banking industry, the significance of the role & responsibilities shouldered has been manifold. With the PCA looming over the Bank, the primary focus has been recovery & Law Department, Head Office has been working in tandem with the other departments’ viz. Recovery, Retail etc. in augmenting Bank’s recovery prospects.

The periphery work has been expanding entailing within its ambit framing of Policies as well as providing tangible assistance to other Departments for the same, rendering opinion as and when referred to from various Corporate Departments of Head Office as well as Zonal Offices / Branches from time to time, vetting, drafting, monitoring of cases (wherein Bank is a party) filed / pending before various fora of Law and adapting the various changes ushered in the legal spectrum involving the Banking Sector, thus ensuring protection of Bank’s interest in every step. As on 31st March, 2019, Law Department, Head Office has issued 20 Circulars, highlighting, all the amendments made to the recently enacted Insolvency and Bankruptcy Code, 2016 as well as its analogous Regulations / Rules issued thereunder in view of the various Gazette Notifications published in this regard by the Ministry of Corporate Affairs & insolvency and Bankruptcy Board of India (IBBI), Companies Act, 2013, Security Interest (Enforcement) Rules, 2002 etc.

Law Department, Head Office has also been instrumental in framing a policy on ‘Issuance of Look out Circulars’ after the Ministry of Home Affairs accorded authority to the MD & CEOs of PSBs for making requests for issuance of Look out Circulars. Further, necessary assistance has also been rendered for imparting effective training to Bank’s Staff on topics of banking pertinence viz. ‘Documentation’, Tendering Processes etc.,

Further, Law Department, Head Office has been regularly monitoring cases filed before various fora of Law (viz. Hon’ble Supreme Court, Hon’ble High Courts, Debts Recovery Tribunal, Debts Recovery Appellate Tribunal, Consumer Forum etc.) and has contributed towards ensuring protection of Bank’s interest therein.

13. RECOVERY:

The increasing trend of NPAs in the Banking Industry over last four years has become concern for the Bank. Gross NPA level of our Bank increased from 24.64% in March, 2018 to 25.00% in March, 2019 and the quantum of GNPAs has decreased from Rs.30549.92 crore to Rs.29888.33 crore respectively. The NNPA percentage decreased to 9.72% from 13.10% of previous year.

During the FY 2018-19 the Bank has witnessed fresh slippages of Rs.9082.44 crore. Cash Recovery for Rs.2991.52 crore for the year ended 31st March, 2019. The total reduction in Cash Recovery & Up-gradation of NPA during FY 2018-19 is Rs.5323.72 crore. Maintaining Bank’s Asset quality and recovery of Bad debts remain main focus area for the Bank.

13.1. Recovery performance:

Bank’s recovery mechanism is also geared up at all levels of the organization to take advantage of modified compromise settlement scheme, SARFAESI Act, DRTs, Lok Adalats, NCLT, Country wide mega Recovery Camps, Road Shows, MAO campaigns, declaration of willful defaulters etc. were organized for speedy recovery.

The details of GNPA, NNPA, Cash Recovery and upgradation for the last three years are as under:

(Rs. in crore)

The total cash recovery plus upgradation for the year ended 31st March, 2019 Rs.5323.72 crore as against Rs.4290.12 crore for the year ended 31st March, 2018. The recovery in written-off accounts is Rs.435.49 crore for the year ended 31st March, 2019 compared to Rs.181.56 crore for the previous year.

Recovery in Loss assets has a direct impact upon the profitability and the Bank giving priority in monitoring / follow-up for recovery in such accounts. A separate vertical in the Bank is monitoring consistently for recovery in loss assets including technically as well as prudentially written-off accounts.

13.2. Some Recovery initiatives:

Bank has liberal compromise Settlement scheme for NPA and ML accounts having O/s Balance up to Rs.25.00 Lac under which the branch heads are empowered to approve compromise proposal to ensure more NPA accounts are covered under the proposed non-discretionary/ non-discriminatory OTS Scheme.

- Bank has formed 144 clusters covering all the zones, with each cluster comprising of 4-5 branches of highly concentrated NPA to maintain contact with the borrowers, organize recovery camps at regular intervals and scout OTS proposals. Emphasis is also given for OTS/Compromise settlement for eligible NPA accounts under all categories.

- Bank has empanelled 513 Enforcement & Recovery Agents and 1267 Business Correspondents (BCs) for effective and time-bound enforcement of action under SARFAESI Act and early resolution of NPA accounts.

- Bank has implemented the Legal Management System with the objective to facilitate different departments at Head Office & Zonal Offices for monitoring legal matters, creating database of all cases pending before different courts for effective monitoring and early resolution of accounts.

- MAO (Many against One) approach is adopted against recalcitrant borrowers on a regular basis and being monitored at HO level.

- Countrywide Mega Recovery Camps are being organized on Two days every month.

- Mega e-auction of properties under SARFAESI is being condued on quarterly basis.

- Eligible properties put for auction are uploaded on ‘e-B-G-r a common web portal of IBA (https://ibapi.in) (Indian Banks Auction Properties Information) for meaningful search by the prospective buyers from 28.02.2019.

- Accounts eligible for NCLT are being explored vigorously. Bank is in liaison with other financial creditors on regular basis, for considering the way forward in respect of NCLT cases.

Most of the accounts under NCLT are consortium / multiple banking accounts which are being monitored for resolution on case to case basis in consultation with leader of consortium etc. Where we are the leader of the consortium, the department is meticulously following up each and every account for the purpose of resolution.

Where our Bank is a member of Consortium / JLF, we are taking up the critical issues from Head Office with the top management of the respective Leader Banks on regular basis, specifically to convene meeting of JLF at frequent intervals and ensuring our Bank’s participation at suitable levels in such meetings.

- Eligible NPA accounts are identified for Sale to ARCs from time to time at regular interval. A total of 434 A/cs amounting to Rs.6150.99 crores since inception and 2 accounts sold for Rs.46.24 crore during the year ending 31.03.2019.

- State specific Schemes were formulated to widen the scope of NPA recovery as per requirement under Debt Waiver at the State Level through the SLBC of the respective states such as 1) Kerala Govt. Educational Loan assistance, 2) Debt Redemption Scheme - U.P., 3) Chatrapati Shivaji Maharaj Swetkari Sanman Yojna (CSMSSY-2017) of Maharashtra Govt. etc.

14. CREDIT MONITORING:

Present economic situation has accentuated upsurge of bad loans in the banking industry and force banks to deal with NPA more proactively by stressed asset management for arresting fresh slippage. Bank has geared up mechanism of tracking by initiating measures as under:-

1. Bank has put in place framework for identification of Red Flagged Account (RFA) based on triggers known as Early Warning Signals (EWS) as per guidelines on Framework for dealing with loan frauds leading to the identification of the account as fraud or not within the period of six months from date of marking the account as RFA. Regarding System identification of EWS, Proof of Concept (POC) is completed and total process will be completed within 30.06.2019.

2. Considering severe stress in Micro, Small and Medium Enterprises (MSME) sectors, Framework for revival and rehabilitation ofMicro,Small and Medium Enterprises and one time restructuring of MSME, formulated in terms of RBI guidelines and has been put in place for resolution of stressed asset under these sectors.

3. As a part of stressed asset management, default assets Rs.5 crore and above weekly reporting done to RBI at Central Repository of Information on Large Credit (CRILC) platform and monitored on daily basis.

4. NPA Tracker through mobile application has been introduced for monitoring stressed and NPA accounts at base level.

To improve upon functioning at the grass root level,bank has devised furtherfollowingstrategic policy and guidelines:

a) Operational guidelines for Credit Monitoring has been updated and put in place on 27.07.2018 after obtaining approval of the Board.

b) Policy for empanelment of TEV consultants has been revised and put in place on 04.05.2018.

c) Based on the feedback received from field functionaries and following the guidelines of Reserve Bank of India (RBI), thirty Seven (37) numbers of circulars issued on effective credit monitoring during Financial Year (FY) 2018-19.

d) Engagement of Agencies for Specialized Monitoring and effective monitoring of Large Borrowal accounts with exposure above Rs.250.00 crore has been introduced on 15.02.2019 after obtaining approval of the Board.

e) Guidelines for empanelment and appointment of Stock & Book Debt auditors has been revised and put in place on 10.12.2018.

f) Stressed accounts of Rs.5.00 crore and above was directly monitored by High Power Committee (HPC), headed by Executive Director (ED) on fortnightly basis.

15. RISK MANAGEMENT:

The Score of our Bank under EASE index under PSB Reform Agenda has improved. As on 31.12.2018, our Bank’s position is 11th among all PSBs.

Bank has a Contingency Funding Plan to manage a range of scenarios of severe liquidity stress. The funding plan contains the details of potential contingency sources, estimated amount which can be drawn from these sources, lead time needed and procedure detailing when and how each of the actions will be activated.

In order to bring our Bank out of Prompt Corrective Action (PCA), the department in consultation with other Corporate Department, has initiated various Turn Around Strategies and Action Plans. The Strategies are being implemented by the functional Departments in a time bound manner.

The risk culture in Bank is being developed by the Department by conducting in- house Training / workshop programme related to Risk Management in Bank, from time to time.

The Department has come up with a monthly Bulletin namely “The Risk Mirror”, containing latest topics on Risk Management in Bank.

The Department has developed Standard Operating Procedure (SOP) on Fraud Risk, Risk Mitigation Plan (RMP) under Risk Based supervision by RBI, Credit Audit and PCA.

Best practices at Industry level in Credit & Operational risk areas have been identified and their implementation in the Bank in a time- bound manner has been initiated. All the Policies of our Bank have been revisited / reviewed.

Root cause analysis of frauds/ large value NPA accounts is being carried out. Necessary changes in the respective policies / system & procedures to curb the recurrences of fraud/slippage are being done.

Our pricing of loan to Corporate Borrowers is linked with RAROC document. The risk appetite of the Bank on different segments is also captured in ICAAP Document.

The online module for Credit Audit system has been implemented

16. INFORMATION TECHNOLOGY & ALTERNATIVE DELIVERY CHANNELS:

A. New Projects/Applications launched in Current Financial Year

1. Near Disaster Recovery (NDR)- Implementation of NDR site has been completed on 12th December, 2018 for zero data loss during exigencies and to enable quick recovery and continuity of critical business operations.

2. ATMs/Debit Cards -

- Introduction of NFC enabled Contactless Debit Card equipped with NCMC functionality.

- Implementation of Fraud Risk Management (FRM) Solution at ATM Switch level.

- SMS to customers on decline of Ecommerce transaction using new Debit Card with Printed PIN (as First time usage in ATM is required)

3. M-banking

- Introduction of UCO container app--having Mobile banking, UPI, UCOPay , mpassbook, UCOSecure together

- Implementation of Cluster app for assistance in Loan Recovery efforts

- BHIM UCO UPI app made available in Apple Store for iPhone / iPad users.

- BBPS pre-login implementation with URL https:// bbps.ucobank.com.

- Upgradation of UPI app to UPI 2.0

- Implementation of EASE features like FD Closure, RD closure, PAN seeding, submission of Form 15G/H, Enrolment for Pradhan Mantri Suraksha Bima/ Jeevan Jyoti Yojana, TDS/Form 16 certificate issuance etc.

4. E-Banking

- Implementation of EASE features like 15G/15H form submission, Issuance of loan interest certificate, launch/ follow up of compliants, TDS/Form 16 certificate issuance etc.

- Maharastra GRAS Treasury integration for collection of Maharashtra Tax

- Transactional Email alert to customer’s registered email id.

- Facility of online transaction to Sukanya Samridhi Yojna through e-banking

- Nomination facility feature implemented in e-banking for Online FD opened .

- 21 new college/school have been added in Smarty Pay module for collection of Fee/funds.

B. Performance/Feature enhancement of existing projects

1. In-house software development and CBS Customizations:

- Application Software Developments

- Implementation of ONLINE module for One Time Settlement (OTS) of bad loan through our Bank’s website for processing of OTS application of any amount.

- Whistle Blower Module under HRMS portal for employees to lodge financial and non-financial complains.

- The UCO Employee Share Purchase Scheme (ESPS) 2019 application was developed for processing of employees DEMAT a/c opening applications, processing of Equity share applications.

- Online Portal for customer for reporting unauthorized transaction by customers.

- Development of online application module for Retirees to apply Medical Insurance as per the guidelines provided by the IBA

- Development of Provident Fund (PF) Management module in HRMS application for settlement of PF/ Pension optee after retirement for Head Office PF Department with Dual authentication (Maker & Checker) system

- Customisations in CBS Environment

- Implementation of Motor Accident annuity deposit module in FINACLE towards disbursement of compensation to the beneficiaries of motor vehicle road accidents

- Incorporation of additional security features such as Random number (Secret Code) and Sequence number in each cheque leaf of personalized chequebook.

- Customizations for Dual Aadhaar authentication for AEPS SHG Transactions.

2. Grid Cheque Truncation System & NACH:

As on 31.03.2019, 465 centres are live under CTS under three Grids (Northern Grid - 132 centres, Southern Grid - 200 centres & Western Grid -124 centres).

3. Lending Automation Processing System (LAPS):

- Incorporation of 7 new retail schemes (UCO top-up/Gold/ Securities/Two Wheeler/Shopper/Rent/Property Loan) in LAPS.

- Implementation of facility to pull Credit Information Report (CIR) from CIBIL & CRIF Highmark of the customer thereby getting to know the credit history of the prospective borrower.

- Integration of LAPS with Vidya Lakshmi portal (VLP) for receiving education loans from online applications applied by the student/borrower.

- Implementation of multiple channels, multiple ports, multiple Accounts for ADC channel for smoother transaction to cater to increasing volume of data through ATM, UPI, IMPS, NPCI, NFS, PFMS channels.

4. Government Business Module (GBM):

- All the branches are enabled to handle Public Provident Fund (PPF) scheme with full functionality including Intersol transactions.

- CBDT is enabled in 308 branches and CBIC is enabled in 26 branches.

- State taxes of West Bengal and Odisha are enabled in both offline and online mode and the data put together is submitted to RBI in the e-kuber file format.

- Pensioner can submit his/her Life and other certificates from any branch as GBM has the inter sol certificate submission feature with acknowledgement.

- Aadhaar number can be seeded in GBM for Pension and PPF accounts.

5. ATM:

- As on 31.03.2019, Bank has 2,358 ATMs (Onsite - 2,047 and Offsite - 311). Department has taken below mentioned initiatives in the area of ATMs during FY 2018-19 -

- EMV Enabled ATMs migration completed

- Closure of all loss making/ low hit ATM sites to reduce operational cost

- Relocation of ATMs from low hit sites to new potential sites where more hit/ revenue can be achieved.

- Replacement of all obsolete ATMs ,which undergo frequent breakdown with new ATM machines with latest configuration

- Modification in existing ATMs to get them updated with latest Anti fraud measures

- To simplify the process for collecting reconciliation report from zones and branches a portal (name as Unified Portal For ATM Reconciliation Report) developed for submission of monthly ATM recon/ cash status.

- Procurement and installation of 500 ATMs

6. Network:

- Internet access in controlled environment using Proxy solution in all branches and offices

- Successfully provided network through 4G LTE (Wireless) for Mobile ATM during Kumbh Mela & Saras Mela.

- For improving connectivity of VSAT branches, pool Bandwidth has been increased.

7. Call Centre:

- Function of call centre improved by increasing number of agents. Abandoned call percentage decreased to markable point.

8. Official Facebook/Twitter:

- Creation of Bank’s official Facebook and Twitter pages and YouTube Channel for promotion of digital products of bank to customers

9. SWIFT/SFMS:

- Implementation of STP (Straight Through Processing) between SWIFT and Finacle

- Implementation of STP between Finacle and SFMS for outward LC/BG messages.

10. BHIM Aadhaar Pay:

- Bank has successfully implemented Payable and Receivables for BHIM Aadhaar Transactions.

- On boarding of Bank on “Auth 2.0” Platform for usage of Registered Devices after certification with NPCI.

11. Bharat QR:

- Bank has successfully implemented Bharat QR v 1.1 and subsequently v 4.0.

17. CISO OFFICE:

- Bank has Cyber Crisis Management Plan in place to ensure rapid identification, information exchange, swift response and remedial actions to mitigate and recover from cyber threats impacting critical business functions.

- Bank has Cyber Security Policy and Information Security Policy in place to provide direction and support for cyber security in accordance with business requirements, relevant laws and regulations.

- Cyber risk awareness workshops and programmes have been conducted for employees for disseminating awareness at different user level.

- Table top exercises and mock drills have been carried out to assess the preparedness and efficiency of Branches and Offices in reporting cyber incidents.

- Cyber security best practices and safety tipsare shared through Facebook and Twitter to help customers be aware of the challenges of cyber risks and threats.

- Cyber Security Handbook has been published to spread awareness amongst employees with different types of cyber security breaches, their consequences and best practices.

- Employee awareness has also been enhanced through various kind of advisory viz Cyber Security Thought of the Week series, Cyber Security words covering alphabets from A to Z, Be Aware Be Secure Series. Information Security Awareness Month has also been celebrated in August 2018 where regularly pictorial messages were circulated to all employees.

18. CUSTOMER SERVICE:

Standardised Public Grievance Redressal System (SPGRS) is available for the public to lodge complaints online. 98.30% of the total complaints received during the financial year 2018-19 have been redressed. Under RTI, a total of 1125 applications were received, during FY 2018-19. There were 220 appeals made under RTI.

19. MIS & ADF Cell:

Bank is having Management Information System (MIS) vertical for internal reporting as well as reporting to regulatory and various statutory bodies etc.

MIS-ADF is integrated with all the discrete systems available in our Bank, viz. Finacle (Domestic and Overseas), GBM, LAPS, Domestic Treasury, E-Banking, Mobile Banking, M-Wallet etc. and performing as a one stop solution for providing information to the organization for the purpose of data analysis, strategic planning, evolving the business plans, its implementations and TOP Management level decision making.

Bank has developed reporting system under MIS ADF for submission of RBI returns/data viz. BSR, SIBC, NRDCSR etc. without any manual intervention through XBRL platform. Internal reports made available for business verticals - Credit, Risk Management, Recovery, Treasury, International, Overseas and Finance for control, monitoring and reporting day to day business parameters.

Digital channel performance reporting to Ministry of Electronics & Technology, Govt. of India on daily basis. Bank is reporting data related to consumer, commercial and SHG segments on daily/ monthly basis to different Credit Bureau like CIBIL, CRIF Highmark, Equifax.

Implementation of Centralised Information Management System (CIMS) project launched by RBI is under process. Under this project 117 RBI returns to be automated in a time bound manner.

20. CORPORATE COMMUNICATION:

Bank reinforces strong corporate reputations through its high degree of transparency and consistency in communication with stakeholders and also disseminates timely information with clarity, coherence and credibility including information through the websites of the Bank on real-time basis. Bank aims to inform, persuade and involve one and all in the activities and growth through sustained, consistent and relevant messages and using a judicious mix of both external and internal communication tools.

Bank has taken up multiple initiatives through various channels namely Print Media, Outdoor Media, Sponsorship of different events, CSR activities and dissemination of requisite information to stakeholders to build and maintain the brand-image of a world class financial institution.

a) Publicity Campaigns : Print Media:

Print Media is an effective medium to connect to masses. Corporate Communications Department has utilized it effectively by carrying out intensified and vigorous publicity campaigns throughout the FY 2018-19. Liability products and Asset products viz. UCO Home Loan, UCO Car Loan, Monsoon Offer & Festival offer for UCO Home & Car loan, PMMY, Stand Up India, psbloanin59minutes, KCC etc. were prominently promoted during the period.

With a thrust on routing the transactions through Alternate Delivery Channels (ADC) and making banking more personalized and customer-oriented, UCO Pay , E-Banking etc. were widely publicized through Print Media during the period.

Publication of financial results in leading national and local dailies was also carried through Print Media.

Outdoor Media:

The contribution of Outward Media towards establishing a strong brand value in the market cannot be underestimated. Outdoor media publicity is basically done through hoardings, kiosks, wall paintings, banners, sponsorship and beautification of gardens/ parks etc. Proposals related to sponsorship of events, health check-up camps, sporting events etc. are also done from time to time.

Rural Publicity:

Rural publicity is an integral part of publicity-campaign for UCO Bank having pan-India and strong rural presence. Bank has promoted and monitored various rural publicity campaigns through zonal offices located across the country. Wall-Paintings, announcements by Rickshaw, Loan fairs etc. were carried out for promoting awareness about products and services offered by the Bank.

b) Celebration of 76th Foundation Day:

The Bank completed 75th glorious years of service to the nation on 6th January, 2019. The occasion was celebrated with much enthusiasm and vigor across the country and overseas centers. Employees and executives of the Bank jubilantly participated in a Walkathon from Head Office II, Salt Lake to Central Staff College. Zonal Offices and branches across the country organised different activities viz. planting saplings, blood-donation camp, health check-up camp etc. A booklet on Cyber Security & Updated M Banking App were also launched by the MD & CEO on this auspicious occasion.

c) Public Relations:

- Press Meet :

Dissemination of information and coverage of important events and occasions viz. Financial Results, Awards & Recognition, Opening of new branch is prerequisite for strengthening the public relations. During the FY 2018-19, Corporate Communications Department organised Press Meets for declaration of quarterly and yearly financial results and other important events.

Department has also arranged for press-release of financial results, AGM & EGMs and other important events in leading national and local newspapers throughout the Financial Year.

Corporate Social Responsibility :

Bank believes that carrying out CSR activities help in tangible value creation. Moreover, CSR creates a positive image in the mind of customers and society at large. This creates a sense of belongingness and loyalty in existing and prospective customers.

d) UCO TOWER :

Bank is also publishing the in-house magazine “UCO Tower” where all the constituents are encouraged to participate. UCO Tower also aims to create awareness of all happenings and activities of the Bank among all employees.

21. HUMAN RESOURCE:

Human resources Management Department Comprises of various Cells looking after different segments of the department. All these cells worked in tandem during FY 2018-19 to create a harmonious and productive work environment. Training and workshops were organised for improving/enhancing the skills and knowledge of the staff.

21.1. Manpower:

The total staff strength as on 31st March, 2019 stood at 23133, including employees serving overseas. The total staff strength comprises of 12088 Officers, 7456 Clerks, 1671 Subordinate Staff and 1918 House-keeping Staff. The percentage of Scheduled Castes (4759) & Scheduled tribes (1946) taken together in the total staff strength is 28.98%. Besides, there are 4261 OBC employees in service of the Bank as on 31st March, 2019. 1486 employees belong to the Minority Communities. The total workforce constitutes 25.02% women employees (5787) as of 31st March, 2019.

21.2. IR Negotiation Cell:

During the period, the Industrial Relations climate in the Bank remained cordial between the Management and the Unions/ Associations. Meetings and discussions were held with Unions/ Associations at periodic intervals through mutual co-operative attitude and respect during the financial year 2018-19.

21.3. Reservation Cell:

Bank has been implementing reservation policy of Government of India. Reservation and other relaxations and concessions extended to SC/ST/OBC / Differently Abled Persons and ExServicemen employees of our bank are strictly adhered. During internal promotion process for the FY 2018-19, as per GOI guidelines, Bank has imparted Pre-promotion Training to 928 employees (SC - 337, ST - 178, OBC - 391 and PH - 22) belonging to SC/ST/OBC and PWDA category. Our Bank, being the Nodal Agency in two state i.e. Shimla and Odisha, provides pre -recruitment training. In order to address the issues of SC/ST and OBC employees of the bank, regular periodical meetings are being held at Apex level as well as at Zonal office level (where reservation roster is maintained) with Welfare Association of such employees. The grievances of such category of employees are heard in such meetings and subsequently grievances are redressed as per Bank’s policy guidelines.

The reservation cell hosted a review meeting with Dr. Nand Kumar Sai, the Hon’ble Chairman (Status of Union Cabinet Minister), National Commission for Scheduled Tribes at Kolkata on 25.02.2019. Two officials from DFS along with other dignitaries also participated in the meeting.

21.4. Recruitment Cell:

Bank has recruited 465 Probationary Officers during the year 2018-19. These 465 Probationary Officers comprise of 77 SCs, 24 STs, 168 OBCs, 10 VIs, 2HIs and 6 OCs, out of which 131 are females. 541 clerks have also been recruited during the year 2018-19 of which 85 SCs, 60 STs, 112 OBCs, 4VIs, 1HIs, 5OCs and 57 EXSs out of which 156 are females.Bank also proposes to recruit 18 Probationary Officers and 46 Clerks under CRP VII reserve list for 2018-19 and 550 Probationary Officers and 600 clerks for 2019-20 under CRP VIII. Bank has initiated the process for appointment of Internal Ombudsman on contractual basis.

21.5. Training Cell:

Our Organization, being a part of one of the most dynamic industries, has to keep up with the constantly changing environment by continuously updating its workforce with various Training Programmes in the concerned Fields. Training programmes are held aligning the corporate vision, mission and fulfilling the expectations of the Top Management.

During the FY 2018-19, Several important modifications were carried out in Online Training Management Module in HRMS to stabilize the system and transforming it into a robust MIS platform. Policy on Capacity Building through Certified courses was formulated and being implemented with vigour to encourage our Staff members by payment of honorarium/incentives to them. In FY 2018-19, Total of 334 employees were paid honorarium/ incentive for passing Bank approved courses as per RBI guidelines on Capacity Building.

Bank has already initiated the process of implementing ELearning for its employees to ensure continuous development of Human Resources through effective learning process. In FY 2018-19, 197 Executives, 9058 Officers, 3085 Clerks and 402 SubStaffs were trained in Internal Training programmes conducted at our Central Staff College (CSC) situated at Kolkata and 7 Regional Training Centres situated at Durgapur, Bhubaneswar, Bhopal, Chennai, Ahmedabad, Jaipur and Chandigarh. Under Locational/Camp based Training programmes conducted at Zonal Level, 3857 employees were trained. This year also we continue to sponsor our Executives & Officers in reputed External Training Institutes like NIBM, ASCI, IIBM, etc.in which 565 employees were trained in External Training programmes which helped them in acquiring a global competitive edge.

FY 2018-19 witnessed the introduction of some important Training programmes like Cyber Security and Cyber Risk Awareness programmes for Senior Mgmt as well as Top Management, Risk Management programme for Risk Officers, Workshop for Officers/ Executives handling Iran Business, GST & MSME related Workshops. We are continuously evolving our Training Department with the adoption of latest inventions to develop sustainable solutions so as to fulfil the desired Corporate expectations.

22. AUDIT & INSPECTION:

After the introduction of Risk Based Supervision of Banks by RBI and adoption of Basel-III norms, the function of Inspection & Audit has undergone a sea change. Along with traditional functions of ensuring proper follow up of policies & procedures, strengthening the internal control, the Inspection & audit measures the risk the Bank faces in day to day operations. Hence the policies, process followed up by the Inspection & audit department have undergone significant changes.

The risk based regular inspection of branches and other service outlets have been adopted since 2014. The Bank has switched over to Risk based online Concurrent Audit and Management Audit Modules.

The department has achieved ZERO overdue reports in RBIA as on 31-03-2019.

The Offsite surveillance Cell in the Inspection Department has been strengthened. The system generated alerts are being generated in 21 parameters. The disposal of alerts by branches has reached 86%. Apart from alert generation this cell is also monitoring various internal accounts, suspicious transactions through back-end data mining.

During the year RBIA has been conducted in 2191 branches. 878 branches / offices are under Concurrent Audit.

23. VIGILANCE DEPARTMENT:

I. Preventive Vigilance initiative taken by the organisation

Following preventive vigilance initiatives have been taken by the Bank during the year 2018-19.

- Dormant accounts are made active by the respective BH/ ABH on receipt of application and KYC documents of customers and report on dormant accounts activation is generated on the next day for perusal of the Branch Head.

- The Balance sheets and other financial statements submitted by the borrower companies to the bank are compared with the one submitted with the Registrar of the Companies (ROC)

- Antecedents of the prospective/ existing borrowers checked with CFR portal of RBI before taking any credit decision.

- Periodic investigations are done in suspicious transaction/ activities at branch level by deploying Field Vigilance Officer.

- Programmes on vigilance awareness programs are undertaken at periodic interval at branches / offices to create awareness among the staff members/ customers/ general Public.

II. Systemic improvements undertaken by the organization

- Flash messages on preventive vigilance measures displayed as a ticker in CBS platform and on the intranet site of the bank to avert frauds.

- Use of Bio-metric access to office/ CBS system has been introduced to prevent possible fraud threat.

- Additional security features in CTS cheque is being incorporated to prevent unauthorised debit from customers account by cloned cheque.

- To further stem the possibility of fraud in the remittance through RTGS/ NEFT or payment of outstation cheques, the process of verification which used to take place at a later stage/ at the end of day, had been added with the process as a second tier confirmation only after which transaction will take place.

- Instructions were given to Strategic Planning Department for uploading the latest specimen card in Finacle System, masking the old specimen signature, so as to avoid any confusion about which card is the latest.

- Under our advice an offsite surveillance cell was constituted at Head Office, Inspection Department to look after the accounts of the staff for any suspicious transactions.

III. Initiative taken by the organization for strengthening Whistle Blower Mechanism

Whistle Blower portal has been introduced in bank’s internal HRMS portal (www.ucoonline.in) for staff members for uploading/ sharing of details of unethical/ malafide misconducts by any employee/ group of employees so that timely corrective action may be taken.

All the complaints made through Whistle Blower portal are accessible to the Chief Vigilance Officer of the Bank only and not to anyone else.

Confidentiality of the contents and identity of the complainant are not disclosed to anyone.

IV. Initiative taken by the organization for inculcating ethical behavior in the organization during the year 2018-19

Human Resource Department issues circulars/ notices from time to time advising all the staff members on ethical behavior within the officer premises.

V. Workshop/ training programmes undertaken in area of vigilance

The following workshops/ training programmes have been conducted in area of vigilance during the current year:

Apart from that Bank has introduced one session on preventive vigilance and case study in all the training programmes conducted at Central Staff College and other Regional Training Centres across the country.

In addition Bank has nominated officers/ executives to different training programmes on vigilance matters organised by CBI Academy, Ghaziabad, International Management School, Kolkata, NIBM Pune and in other organizations.

24. OFFICIAL LANGUAGE:

The Bank was proactive in implementation of the Official Language policy of the Union Government. The Bank also made suitable follow-up for implementation of the Annual Programme Hindi issued by Official Language Department, Ministry of Home Affairs, Government of India with regard to the use of official Language. During the period under review, the sub committees of the Parliamentary Committee on Official Language visited ourSri Nagar branch under our Deharadun Zone on 07.05.2018.

Town Official Language Implementation Committee, Kolkata was awarded First Prize amongst the TOLICs in Eastern Region by Official Language Department, Ministry of Home Affairs, Government of India for excellence in implementation of Official Language during the Year 2017-18. UCO Bank, Head Officeis the convener of this committee. Varanasi, Indore, Dharmshala, Hyderabad, Jodhpur, Pune, Begaluru, Raipur and Bhubaneswar Zonal Offices and Allahabad and Ghazipur branches under Varanasi Zone as well as Himatnagar branch, under Ahmedabad Zone bagged prizes for their commendable performance in the field of Official Languages implementation in their respective cities. Besides, Varanasi Zone’s e-magazine Kashi Amrit, Chandigarh Zone’s e-Magazine Sankalp, Indore Zone’s e-magazine Malavanchal and New Delhi Zone’s e-magazine UCO Indraprastha have been awarded by the respective TOLICs.

Under the aegis of Town Official Language Implementation Committee (Bank), Kolkata an Advanced Translation Training Programme was organised from 10.12.2018 to 14.12.2018 with support from Central Translation Bureau, Department of Official Language, Home Ministry, and Government of India. The programme was organised for the OL officers of the member Banks at our Central Staff College, Kolkata. A State-level Hindi seminar on “Role of Indian Languages in Digital India” was organized in Patna on 5.12.2018 by the Zonal Office, Patna.

An All India UCO Bank Inter-Bank Hindi Essay Competition was organized on “Contribution of PSU Banks to the Economy of India” in February, 2019. The Official Language Conference was organized in Kolkata on March 15, 2019 by the Town Official Language Implementation Committee (Bank). It is worth mentioning that UCO bank was the convener of this committee.

Zonal Office, Bhagalpur has been made Convener of Town Official Language Implementation Committee, Bhagalpur by Department of Official Language, Ministry of Home Affairs, and Government of India.

25. COMPLIANCE DEPARTMENT:

Our Bank carries out the Compliance Functions mandated by the Reserve Bank of India with enormous dedication. An enviable level of customer service is being ensured at all levels of Bank’s Network. Emphasis is being laid on continuous perfection in reporting of KYC/AML issues, STRs (Suspicious Transactions Report), CTRs (Cash Transaction Reports), CBWTRs (Cross Border Wire Transfer Reports, CFT (Combating of Finance for Terrorism), etc., to the Regulators, Govt. Of India Authorities, SEBI, FIU-IND, under PMLA Act 2002, as Reporting Entity (RE).

Compliance & KYC/AML Policies are being revisited / reviewed periodically and approved by the Board of Directors to mitigate breaches in Compliance Functions if any. During FY 2018-19, Compliance Test Checking (CTC) was undertaken in 843 Branches and all Branches/Offices have been sensitized about the need for ensuring timely Compliance functions. Critical issues are being discussed at appropriate levels before being reported to the Regulatory/Statutory Authorities, thus enhancing the system efficacy.

Periodic interactions with Risk Management Department and Audit & Inspection Department, is being done on critical control and compliance functions as a part of effective Risk Management and development of robust Compliance Culture.

26. FUTURE PLAN OF BANK:

Department of Financial Service is monitoring performance of all public sector Banks through Enhanced Access and Service Excellence (EASE) . To improve performance in EASE Index among other banks is the main objective of our bank. Bank has Sankalp for the year 2019-20 to come out of PCA and start earning Profit. For this Bank has prepared different strategies focussing more on i) Recovery ii) Resources & iii) Retail, Agriculture and MSME(RAM) .Recovery of at least Rs.2000 crore per quarter through relentless efforts, and Bank mantra is recovery, Recovery and recovery. Zero tolerance on customer complaints through, strict adherence to compliance and control system and deepening products per customer through cross selling our banking products and also marketing of Alternate delivery channels. The future Plan of bank is reflected in SANKALP Rs.2020’ which envisages turn around of the bank ensuring profitability this financial year.

Customer acquisition, Promoting Govt. Flagship programme through Financial Inclusion, Revamping Credit Monitoring System and restricting Slippages, through different measures are other important areas of Banks concern.

HR strategy through differentiated Banking, better employee relationship with better productivity and improved customer service will be the priority of the bank for 2019-20.

27. Board of Directors:

27.1. Corporate Governance:

Bank firmly believes in and has consistently practiced good corporate governance woven around its core values of transparency, professionalism and accountability. By constantly focusing on these aspects in its day-to-day operations, the Bank strives to enhance shareholders’ value. The Bank being committed to the principles of good governance, its Board of Directors has formed various committees of the Board to monitor every aspect of Bank’s business. The systems and business processes of the Bank are continuously reviewed at various levels for identifying and strengthening areas of weaknesses, if any. The Directors of the Bank believe that good governance is the key to earn trust, loyalty and goodwill of clients, business associates, employees and investors and also to have respectable position in the society at large.

27.2. Changes in the Board of Directors:

- Mr Atul Kumar Goel is appointed as Managing Director & CEO on the Board of UCO Bank w.e.f November 02, 2018 for a period of three years.

- Mr Anand Madhukar was nominated as Government Nominee Director on the Board of UCO Bank w.e.f December 04, 2018 till further orders.

- Mr Amit Chatterjee was nominated as Part-time Non-official Director on the Board of the Bank w.e.f March 01, 2019 for a period of one year.

27.3.Meetings of the Board of Directors:

During the FY 2018-19, fourteen meetings of the Board of Directors were held. The number of meetings of various Committees of the Board held during the period is given below:

27.4. Statement of Directors’ Responsibility:

The Board of Directors confirm that in the preparation of the annual accounts for the year ended March 31, 2019, the applicable accounting standards have been followed along with proper explanation relating to material departures, if any. The accounting policies framed in accordance with the guidelines of Reserve Bank of India, were consistently applied. Reasonable and prudent judgements and estimates were made so as to give a true and fair view of the state of affairs of the Bank at the end of the financial year and of the profit of the Bank for the year ended March 31, 2019. Proper and sufficient care was taken for the maintenance of adequate accounting records in accordance with the provisions of applicable laws governing banks in India; and the accounts have been prepared on an on-going basis. Internal financial controls have been laid down by the bank for ensuring orderly conduct of business.

28. Acknowledgements:

The Board welcomes the new Directors, Mr K Rajivan Nair, Dr. Asish Saha and looks forward to their valuable inputs towards the growth of the Bank. The Directors remain thankful to the Government of India, Reserve Bank of India and other regulatory authorities for their support and valuable guidance. The Board also thanks other financial institutions and correspondent banks for their co-operation.

The Board of Directors expresses its gratitude to the loyal customers for their trust and continuous patronage of the Bank. The Board also thanks the staff unions/associations and shareholders of the Bank for the support extended by them. The Directors place on record their deep appreciation of the dedication shown by each employee of the Bank.

By order of the Board of Directors

sd/-

(A. K Goel)

Place: Kolkata Managing Director &

Place: Kothlkata Chief Executive Officer

Date: 28th May, 2019