The Board of Directors has the pleasure in presenting the Director's Report 2025-26 together with the Audited Statement of Accounts
of UCO Bank for the financial year ended March 31,2026.

executive summary:

UCO Bank delivered a strong financial performance in FY 2025-26, driven by disciplined credit growth, robust asset quality
improvement, and a deepening digital transformation agenda. The Bank's key achievements for the year are summarised below.

• Global business crossed Rs. 5.90 lakh crore, registering a year-on-year growth of 14.95%.

• Net Profit grew by 13.21% to Rs. 2,767.86 crore; Operating Profit grew 6.49% to Rs. 6,428.94 crore.

• Gross NPA declined to a multi-year low of 2.17%; Net NPA stood at 0.27%, reflecting significantly improved asset quality.

• Priority Sector Advances constituted 52.52% of ANBC, well above the mandatory target of 40%.

• Agriculture credit grew at 26.24% YoY, reaching Rs. 37,336 crore.

• MSME business grew 19.36% YoY; total MSME loan sanctions crossed Rs. 15,000 crore in FY 2025-26.

• Retail portfolio grew 26.62% YoY, with Vehicle Loans up 71.12% and Gold Loans up 72.61%.

• 31 digital lending journeys operationalised; digital balance sheet totalled Rs. 25,350 crore.

• UCO Bank bagged four prestigious Cyber Security Awards at the IBA CISO Summit 2025.

• Total staff strength stood at 20,984, with women comprising 29.54% of the workforce.

1. economic scenario:

In a volatile global environment marked by escalating trade tensions and persistent geopolitical uncertainties, the Indian economy
demonstrated remarkable resilience and sustained growth. India's growth trajectory has been supported by robust domestic
consumption, increased government expenditure on capital formation, and moderating inflation. Proactive policy measures have
helped stabilise market liquidity, though foreign portfolio outflows, currency depreciation, and rising energy costs remain key risk
factors.

1.1 Gross Domestic Product:

The Reserve Bank of India's (RBI) first Monetary Policy Committee (MPC) meeting for FY 2026-27 projected India's real GDP growth
at 6.9 per cent for the year. This projection implicitly accounts for a degree of geopolitical risk, though it does not isolate the West Asia
conflict as a discrete variable. This compares favourably with the International Monetary Fund's global growth projection of 3.2 per
cent for 2026.

The Second Advance Estimate of the National Statistical Office (NSO) for FY 2025-26 pegs India's real GDP growth at 7.6 per cent
(under the new 2022-23 base series). The escalation of geopolitical tensions in West Asia introduces a downside risk to India's near¬
term growth trajectory, the full impact of which remains incompletely captured in current official estimates.

The West Asia conflict is transmitting across the Indian economy through four primary stress pathways: energy cost inflation, supply
chain disruption, fiscal strain, and external sector pressure. The most acute near-term risks are concentrated in aviation, tourism,
FMCG, and agriculture. The medium-term threat to remittance flows, manufacturing competitiveness, and the current account deficit
poses potentially more structural challenges.

1.2 Consumer Price Index:

The RBI has projected retail inflation (CPI) for FY 2026-27 at 4.6 per cent, reflecting upside risks from elevated global energy prices
linked to the West Asia conflict. India's CPI inflation stood at 3.40 per cent in March 2026.

The moderation in headline CPI through most of FY 2025-26 was aided by softer fuel prices and a correction in food prices. However,
food prices showed renewed pressure in early FY 2026-27 due to geopolitical spillovers. Year-on-year inflation based on the All
India Consumer Food Price Index (CFPI) for March 2026 over March 2025 stood at 3.87 per cent (provisional).

The Index of Industrial Production (IIP) recorded 4.1 per cent year-on-year growth in March 2026 (Quick Estimate), declining from 5.2
per cent (Final Estimate) in February 2026. Growth in the Mining, Manufacturing, and Electricity sectors for March 2026 stood at 5.5
per cent, 4.3 per cent, and 0.8 per cent respectively. The Quick Estimate of IIP stands at 173.2 against 166.3 in March 2025.

2. banking sector overview;

The Indian banking industry has maintained an upward trajectory, aided by strong economic growth, rising disposable incomes,
increasing consumerism, and improved credit access.

As of March 2026, the twelve Public Sector Banks (PSBs) are positioned strongly with an average year on year growth of 9.83
percent in Domestic Deposit and 16.61 percent in Domestic Advance. RAM (Retail, Agriculture and MSME) Advance constitutes 63.42
percent of the total Domestic Advance with an annual growth rate of 20.10 percent. Retail advance provided the thrust with a growth
rate of 23.78 percent in this period.

Additionally, GNPA of the twelve PSBs have cumulatively declined by Rs. 38,018 crores or 13.20 percent in March 2026 over March
2025. The present position of GNPA of the twelve Bank stands at 2.09 percent of their Total Advance, which is a significant decline
from 2.84 percent a year ago. With an average Provision Coverage Ratio of 95.41 percent, the PSBs are well provided for in their
stressed book.

The PSBs have cumulatively earned a net profit of about Rs. 1,97,604 crore during FY26, which is a healthy rise of 10.79 percent
over the previous year. Banks' balance sheets have continued to strengthen, with multi-year low NPA ratios, higher provisioning,
stronger capital positions, and robust earnings developments that are collectively facilitating a broad-based and sustained credit
expansion. This signals good health of the PSBs and reflects strongly on their soundness and resilience.

3. UCO BANK; DELIVERY CHANNEL AND NETWORK;

3.1 Branch and Office Network

UCO Bank operates a geographically well-spread branch network across India, complemented by an international presence. As on
31st March 2026, the Bank had 49 Zonal Offices, 3,412 domestic branches, 2 overseas branches (Singapore and Hong Kong), and
one representative office in Iran, bringing its global branch network to 3,414.

The growth of the Bank's global branch network over the past five years is presented below:

The population category-wise break-up of domestic branches as of 31.03.2025 & 31.03.2026 is given below:

The domestic branch network comprises 6 Flagship Corporate Branches, 8 Asset Management Branches, 4 Service Branches, 1
Central Pension Processing Centre, 1 Integrated Treasury Branch, and 42 Mid-Corporate Unit (MCU) branches. In addition, the Bank
operates 50 Retail Loan Hubs, 49 SME & Agri Loan Hubs, 9 Integrated Loan Hubs, and 70 Currency Chests attached to major city
branches across various centres.

4. BUSINESS PERFORMANCE:

4.1 Global Business:

• Global business of the Bank stood at Rs. 5,90,314 crore as on 31st March 2026, registering a year-on-year growth of 14.95 per
cent over Rs. 5,13,527 crore as on 31st March 2025.

• Global deposits grew by 11.59 per cent to Rs. 3,27,563 crore as on 31st March 2026, from Rs. 2,93,542 crore as on 31st March
2025.

• Global advances increased by 19.44 per cent to Rs. 2,62,752 crore as on 31st March 2026, from Rs. 2,19,985 crore as on 31st March
2025.

4.2 Domestic Business:

• Overall domestic business grew by 14.28 per cent to Rs. 5,39,052 crore as on 31st March 2026, from Rs. 4,71,683 crore as on
31st March 2025.

• Domestic deposits grew by 10.30 per cent to Rs. 3,04,668 crore as on 31st March 2026.

• Domestic advances registered a growth of 19.91 per cent to Rs. 2,34,384 crore as on 31st March 2026.

• CASA deposits grew by 12.46 per cent year-on-year to Rs. 1,17,752 crore. Savings Bank deposits grew 11.78 per cent to
Rs. 1,01,025 crore, while Current deposits grew 16.77 per cent to Rs. 16,727 crore.

• The share of CASA in total domestic deposits improved from 37.91 per cent as on 31st March 2025 to 38.65 per cent as on 31st
March 2026.

5. FINANCIAL PERFORMANCE:

The Bank delivered a steady financial performance during FY 2025-26. Operating Profit increased by 6.49 per cent to Rs. 6,428.94
crore from Rs. 6,037.29 crore in the previous year. Net Profit grew by 13.21 per cent to Rs. 2,767.86 crore, compared to Rs. 2,444.96
crore in FY 2024-25. In compliance with the Banking Regulation Act, 1949, the Bank transferred Rs. 691.96 crore, representing 25
per cent of current year profit to the Statutory Reserve Fund.

Gross NPA declined to Rs. 5,690.20 crore (2.17 per cent) as on 31st March 2026, from Rs. 5,918.54 crore (2.69 per cent) as on 31st
March 2025. Total income stood at Rs. 29,740.98 crore for the year, registering a growth of 0.91 per cent over the previous year. The
Provision Coverage Ratio improved to 97.79 per cent from 96.69 per cent, reflecting the Bank's continued commitment to prudent
provisioning.

5.1 Financial Highlights:

5.3 Capital Adequacy:

5.4 Treasury Operations:

Gross investments grew by 4.67 per cent to Rs. 99295 crore in FY 2025-26. Overseas Investment increased by 13.82 per cent to Rs. 3458
crore and Domestic Investment increased by 4.36 per cent to Rs. 95837 crore. Share of SLR in Domestic investment grew from 72.38%
in March 2025 to 74.94% in March 2026.

5.5 Overseas Business:

As on 31st March 2026, the Bank's total business from its overseas branches at Singapore and Hong Kong stood at Rs. 51,262 crore,
constituting 8.68 per cent of global business. This comprised total deposits of Rs. 22,895 crore and total advances of Rs. 28,367 crore.

The Bank's 66 Category B branches across India cater to the forex requirements of exporters, importers, and remittance customers. Total
merchant forex turnover for FY 2025-26 stood at Rs. 1,00,378 crore.

6. social and priority sector banking:

6.1 Agriculture Credit

Agriculture credit grew at 26.24 per cent year-on-year from Rs. 29,575 crore as on 31st March 2025 to Rs. 37,336 crore as on 31st March
2026. The segment-wise details are presented below:

6.2 Priority Sector Performance

UCO Bank has demonstrated significant improvement in priority sector lending and effectively serves this segment through its extensive
rural and semi-urban branch network. Key achievements for FY 2025-26 against mandatory targets are as follows:

UCO Bank serves as the Convener of the State Level Bankers' Committee (SLBC) in two states of Odisha and Himachal Pradesh and
shoulders Lead Bank responsibility across 35 districts, including one newly formed district in Assam.

6.3 Self Help Group Credit

Self Help Groups (SHGs) represent one of the most effective mechanisms for women's empowerment and rural microenterprise promotion
in India. Outstanding credit to SHGs stood at Rs. 5,313 crore, covering 1.88 lakh SHGs as on March 2026, registering an annual growth of
27.78 per cent.

The Bank introduced the 'Bank Sakhi' channel for sourcing SHG business and onboarding SHG-NRLM accounts, as well as the 'Nari
Samriddhi' scheme for financing individual SHG members and the 'SHG Samriddhi' scheme for urban SHGs.

6.4 Corporate Social Responsibility

The Bank continued to pursue its CSR mandate through multifaceted initiatives in skill development, financial literacy, and community
engagement. Some major programmes include:

• 28 Rural Self Employment Training Institutes (RSETIs) across 7 states in Assam, Bihar, Himachal Pradesh, Odisha, Punjab, Rajasthan,
and West Bengal conducted 865 training programmes involving 25,456 candidates. Of these, 13,537 beneficiaries received credit
linkage aggregating Rs. 59.09 crore during FY 2025-26.

• 127 Customer Financial Literacy (CFL) centres conducted 58,858 camps with 18,44,043 participants; 4,14,487 beneficiaries received
bank linkage.

• 35 Financial Literacy Centres conducted 5,286 camps, reaching 1,79,538 participants during FY 2025-26.

• Three UCO RSETIs in Dhubri, Dhenkanal, and Bilaspur obtained ISO 9001:2015 certification during the year.

• A record RSETI claim amount of Rs. 21.93 crore was received in FY 2025-26, representing over 57 per cent growth over the previous
year.

7. FINANCIAL INCLUSION:

7.1 Pradhan Mantri Jan Dhan Yojana

UCO Bank has been allotted 16,281 villages across the country for providing inclusive banking facilities in unbanked and underbanked
areas. These have been categorised into 4,122 Sub-Service Areas (SSAs), of which 3,656 are served through Business Correspondent
(BC) agents and 466 through branch-based coverage for tier-5 settlements (population above 5,000).

The Bank has 11,136 BCs deployed as on 31st March 2026, with 936 new BCs added during FY 2025-26. During the year, total transactions
through Micro ATMs operated by BC agents stood at 304.68 lakh, aggregating Rs. 13,148.42 crore.

UCO Bank holds deposits of Rs. 8,081.15 crore in 156.45 lakh PMJDY accounts as on March 2026, registering a growth of 5.43 per cent
in PMJDY deposits. The average per-account balance was Rs. 5,165. The Bank opened 6.48 lakh new PMJDY accounts during the year
and has issued approximately 64.49 lakh RuPay Cards to eligible account holders.

7.2 Social Security Schemes

The Bank has implemented the Government's flagship insurance and pension schemes including PMJJBY, PMSBY, and APY through its
branch and BC network. Under PMJJBY, 37.46 lakh subscribers are enrolled for life cover of Rs. 2 lakh each, while 84.90 lakh customers
have enrolled for accidental insurance under PMSBY. Claims settled during FY 2025-26:

Under APY, 3.42 lakh eligible customers were enrolled during FY 2025-26, enabling the Bank to secure 3rd position among PSBs with 105
per cent target achievement. Total APY beneficiaries stand at 16.83 lakh.

Enrolment of PMJJBY and PMSBY is also available in UCO E-Banking and UCO M- Banking app. Enrolment of PMJJBY & PMSBY can be done
through SMS facility also in which, customers can self-enrol by sending SMS from their registered mobile numbers. Incentive for digital
enrolment is being passed on to the customers by the way of reduced premium.

As on 31st March 2026, approximately 91 per cent of operative savings accounts have been seeded with Aadhaar numbers, in line with
UIDAI guidelines.

8. MSME BANKING:

8.1 Key Initiatives in FY 2025-26

• 58 Loan Processing Hubs (49 SME & Agri Hubs and 9 Integrated Loan Hubs) are now operational across the country to enhance credit
underwriting quality and reduce turnaround time.

• Cumulative outstanding Mudra loans stood at Rs. 7,043 crore as on 31st March 2026, achieving 101 per cent of the allocated target of
Rs. 7,000 crore.

• 12 new MSME-focused schemes were launched, including Product specific Schemes like UCO Sanjeevani Plus, UCO MSME Smart
Professional, UCO Solar Project Finance; Cluster Schemes like UCO Hospitality Plus, UCO Iron and Steel Cluster Finance, UCO
Automotive Component Manufacturer and UCO Ceramic Cluster; Straight Through Processes and a purpose-built digital lending
platform for PM SVANidhi beneficiaries. A dedicated Centralised Credit Guarantee Cell was established at the Head Office to accelerate
guarantee-covered lending.

• A dedicated Centralised Credit Guarantee Cell was established at Head Office to accelerate guarantee-covered lending.

• A Supply Chain Finance (SCF) Vertical was established to capture market share in supply chain financing.

• TReDS business grew 47.47 per cent year-on-year to Rs. 2,336 crore as on 31st March 2026.

• 69 start-up loans aggregating Rs. 135.05 crore (Fund-Based and Non-Fund-Based) were sanctioned through dedicated Start-up
Desks at 8 SME & Agri Hubs.

8.2 MSME Business Growth:

MSME business grew by Rs. 7,508 crore in FY 2025-26, registering a year-on-year growth of 19.36 per cent. Total MSME loan sanctions
exceeded Rs. 15,000 crore during the year. Average daily MSME loan sanctions improved to Rs. 41.56 crore from Rs. 33.49 crore in FY
2024-25. Average ticket size improved to Rs. 16.96 lakh from Rs. 13.61 lakh in the previous year. Additionally, 12,129 digital MSME loans
(excluding renewals) aggregating Rs. 625 crore were sanctioned through end-to-end digital processes.

The Bank launched a fortnightly 'UCO Carnival' from 21st April 2025 to 24th March 2026 across the country to accelerate MSME loan
origination. Total MSME loans sanctioned through this campaign stood at Rs. 11,703 crore during the year.

9. RETAIL BANKING:

9.1 Portfolio Performance:

The retail portfolio recorded an overall growth of 26.62 per cent year-on-year in FY 2025-26. Key segment-wise growth rates are:

• Home Loans: 19.11 per cent

• Vehicle Loans: 71.12 per cent

• Personal Loans: 11.07 per cent

• Education Loans: 8.00 per cent

• Gold Loans: 72.61 per cent

9.2 New Products and Scheme Modifications:

• UCO Aashray: Offers home loans up to Rs. 35 lakh (metros) and Rs. 25 lakh (other centres) with tenures up to 25 years, catering to
the EWS, LiG, and MIG segments.

• UCO Aanchal: Personal loans for women covering perinatal healthcare, IVF treatment, childbirth, adoption-related expenses, and post¬
natal care.

• UCO Aashiyana: A differentiated home loan product for individuals in areas governed by special land reform legislation.

• UCO Home Plus: A home loan product targeting young salaried and high-income customers with higher loan eligibility and flexible
repayment structures.

• PM Vidyalaxmi Education Loan Scheme: Modifications implemented to improve accessibility for students across diverse socio-eco¬
nomic backgrounds.

• UCO Suryodaya: Vendor expansion and automated lead generation for solar loan adoption.

• Reimbursement facility introduced under both Home Loan and Car Loan schemes for properties/vehicles purchased from own funds
within defined timelines.

9.3 Marketing and Sales Channel:

• The Sales Force Team comprising Retail Loan Sales Teams (RLST, HLST) and MSME Loan Sales Team (MLST) sanctioned Rs. 3,295
crore through internally generated leads in FY 2025-26.

• Direct Selling Agents (DSAs) contributed Rs. 8,612 crore in sanctions, registering 88 per cent year-on-year growth. The Bank also
expanded its digital lead generation capabilities through its partnership with Maruti Suzuki Smart Finance, sanctioning more than 2,500
car loans via this channel during the year.

10. RESOURCES:

During FY 2025-26, the Bank recorded healthy growth across all major deposit segments, reflecting sustained customer confidence and
effective resource mobilisation efforts. Current Deposits registered a robust year-on-year growth of 16.77%, while Savings Deposits
increased by 11.78% over the previous year. CASA Deposits as a whole grew by 12.46% on a year-on-year basis, demonstrating
continued strengthening of the low-cost deposit base. Overseas Deposits also witnessed significant growth of 32.09%, contributing to an
overall increase of 11.59% in Total Deposits during the year.

During FY 2025-26, the Bank undertook several targeted initiatives aimed at increasing the overall deposit base, improving customer
engagement, and strengthening institutional partnerships.

10.1 New Product Initiatives Implemented During FY 2025-26

The Bank introduced a range of specialised products catering to diverse customer segments and contributed towards broadening the
Bank's customer base while addressing the evolving financial requirements of emerging market segments. The new products include 'UCO
Rising Star' Savings Scheme for Children, 'UCO Gig' Savings Scheme, 'UCO Aarambh' Current Account Scheme for Start-ups and 'UCO ICCL
eFDR' Scheme for ICCL Members.

10.2 Strategic Agreements and Tie-ups Undertaken During FY 2025-26

During the year, the Bank entered into multiple strategic partnerships and technology integrations with government bodies, public sector
entities, financial institutions, and corporate organisations to strengthen transaction banking, collection services, digital integration, and
institutional business opportunities. These collaborations strengthened the Bank's digital ecosystem, enhanced institutional business
opportunities, and expanded its service delivery capabilities across multiple sectors.

10.3 Process Initiatives Undertaken During FY 2025-26

To improve operational efficiency, customer convenience, and account management processes, the Bank implemented the following
process initiatives during the year:

• Centralisation of CASA back-office operations for streamlined authorisation and processing of Current and Savings Accounts.

• Introduction of an online Savings Bank account opening facility to enhance customer accessibility and digital onboarding.

• Formation of a dedicated Customer Retention Squad to strengthen customer engagement and improve retention of the existing
customer base.

ii. recovery and npa management:

11.1 Recovery Framework:

UCO Bank's recovery mechanism has been comprehensively strengthened through a structured, technology-enabled, and multi-channel
approach designed to maximise recovery from stressed assets. The strategy encompasses legal enforcement, compromise settlements,
borrower engagement, ongoing monitoring, and institutional accountability.

11.2 Legal and Enforcement-Driven Recovery

• Timely initiation of SARFAESI actions, including enforcement and auction of secured assets through the BAANKNET (eBikray) platform,
with special focus on DM permissions for physical possession.

• Filing of DRT applications, Civil Suits, and Section 138 NI Act cases to accelerate legal recovery timelines.

• Deployment of Detective Agencies to trace absconding borrowers and guarantors, and initiation of attachment proceedings through
DRT where eligible.

• Referral of eligible accounts to NCLT and invocation of personal guarantees under the IBC framework.

• Declaration of Wilful Defaulters in accordance with regulatory guidelines as a deterrent measure.

11.3 Resolution and Compromise Measures

• Restructuring and handholding support extended to viable accounts for revival and improved recovery prospects.

• Resolution through One Time Settlement (OTS) under the Bank's Special OTS Scheme ('Lakshya-Rin Mukti 2025-26') and Normal OTS
Scheme, for NPA/PWO accounts with ledger balance up to Rs. 1.00 crore.

• Introduction of 'UCO Adalat', a structured negotiation platform enabling one-to-one engagement with borrowers through senior Head
Office and Zonal Office executives.

• Active participation in National Lok Adalats for settlement of small-ticket NPA accounts.

11.4 Recovery Performance:

(Amount in Rs. crore)

Total cash recovery and upgradation during FY 2025-26 stood at Rs. 2,944.30 crore. Recovery from technically written-off accounts
stood at Rs. 1,415.61 crore.

12. RISK MANAGEMENT:

UCO Bank operates within a comprehensive Risk Management framework that addresses Credit Risk, Market Risk, Liquidity Risk, and
Operational Risk - the principal categories of risk inherent in banking operations. All products, processes, and policies are routed through
Executive-Level Risk Committees (CRMC, ORMC, ALCO, and MRMC) and the Risk Management Committee of the Board (RMCB) prior to
Board approval. The Bank has also engaged a dedicated Risk Advisor with extensive regulatory and risk management experience.

12.1 Credit Risk Management:

Credit risk is managed through a Board-approved framework encompassing policies, procedures, and reporting structures aligned with
best practices. The Bank has established prudential exposure caps across industries, sectors, borrowers, countries, state governments,
and group borrowers to build portfolio resilience and mitigate concentration risk. Quarterly reviews of key exposures, segments, and
industries are conducted by a dedicated Credit Risk Management Cell.

The Bank has made computation of Risk-Adjusted Return on Capital (RAROC) mandatory for all credit proposals of Rs. 1.00 crore and
above (excluding retail schematic loans), ensuring prudent capital deployment. An independent credit risk evaluation process classifies
borrowers as low, medium, or high risk through the Credit Risk Evaluation Process (CREP).

12.2 Operational Risk Management:

The Bank's Operational Risk Management Framework (ORMF) encompasses organisational structure, governance, policies, procedures,
and monitoring systems for the effective management of operational risk. A repository of Internal Loss Data has been established, with Root
Cause Analysis conducted for significant loss events. Risk Control and Self-Assessment (RCSA) and Key Risk Indicator (KRI) matrices are
automated and integrated into real-time monitoring systems. Risk Officers are designated across all Zonal Offices for coordination with the
Risk Management Department at Head Office.

12.3 Market Risk Management:

Market risk - arising from adverse movements in interest rates, exchange rates, and other market variables - is monitored daily through
Modified Duration, PV01, and Value at Risk (VaR) for the trading book. Foreign Exchange Risk is managed through Net Overnight Open
Position (NOOP) limits, VaR limits, and Aggregate Gap Limits (AGL). Back-testing and stress testing are conducted on a regular basis. The
Enterprise-level VaR and Stressed VaR are calculated and back-tested daily under a Board-approved Stress Testing Policy. Market Risk
Capital Charge is computed using the Standardised Measurement Method (SMM).

12.4 Liquidity Risk Management:

The Bank monitors liquidity risk through both flow-based and stock-based approaches under a Board-approved ALM Policy. The Basel III
Liquidity Coverage Ratio (LCR) framework has been implemented, with adequate levels of unencumbered High Quality Liquid Assets
(HQLA) maintained at all times. The Net Stable Funding Ratio (NSFR) is maintained above the regulatory minimum, ensuring a stable long-term
funding profile. Interest Rate Risk in the Banking Book (IRRBB) is measured and monitored through Traditional GAP Analysis, Earnings at Risk
(EaR), and Modified Duration of Equity frameworks.

12.5 Credit Rating Systems:

The Bank undertakes internal credit rating for all borrowers with exposure greater than Rs. 25.00 lakh (MSME) and Rs. 50.00 lakh
(Agriculture). The credit rating model, upgraded with effect from October 2023, offers enhanced default predictability and closer alignment
with external rating agencies. Retail, MSME (up to Rs. 25 lakh), and Agriculture (up to Rs. 50 lakh) borrowers are assessed through 19
calibrated scorecard models, periodically validated by external agencies.

12.6 Fraud Risk Management:

The Fraud Risk Management Cell, operating under the Risk Management Department, ensures timely reporting of fraud incidents to the RBI
and law enforcement agencies. The Committee of Executives - Fraud Risk Reporting and Management (CoE-FRRM) oversees fraud
declarations. Two Fraud Management Groups (FMGs) analyse Early Warning Signals for potential Red Flag Account identification. The
Enterprise Fraud Risk Management System (EFRMS), incorporating a Risk-Based Transaction Monitoring System (RTMS), operates on a
24x7 basis for real-time fraud detection.

12.7 Credit Monitoring:

The Bank has significantly strengthened its credit monitoring infrastructure during the year:

• Early Warning Signal (EWS) system: Enhanced governance with maker-checker mechanisms, role-based authorisation, and centralised
alert closure at Head Office. The efficacy of EWS alerts is reviewed quarterly by the Risk Management Committee of the Board.
System-driven auto-closure was implemented for select alerts during FY 2025-26.

• eDCAAM Module: A single-window digital platform for end-to-end asset account document management, enabling digital scrutiny of
security documents, seamless disbursement approvals, and centralised archival.

• NPA Tracker mobile application deployed for real-time branch-level monitoring of stressed and NPA accounts.

• Accounts with exposure of Rs. 5 crore and above are reported weekly to RBI through the CRILC platform and monitored daily.

• High Power Committees (HPCs) continue to provide structured senior management oversight of stressed assets, with monthly reviews
at GM and Executive Director levels.

12.8 Sustainable Finance and ESG:

In alignment with the RBI's directions on climate risk and sustainable finance, the Bank has mobilised green deposits and expanded its green
lending portfolio. The Bank has adopted PCAF standards for assessing financed emissions (Scope 3, Category 15) and has developed a
comprehensive Net Zero Transition Plan, committing to net-zero carbon emissions across its operational and financed portfolio by 2056.

Energy-efficiency initiatives include the installation of rooftop solar panels, motion-sensor LED lighting in branch premises, and active water
harvesting at Bank-owned buildings.

13. digital banking and technology:

13.1 Customer Experience Enhancements

• Beneficiary Lookup Facility implemented in Mobile Banking and Internet Banking for NEFT, RTGS, and IMPS transactions.

• Branch Visit Slot Booking feature launched in Mobile Banking.

• Badge icons (Silver, Gold, Platinum) introduced for improved customer engagement.

• UPI face authentication and OS-native biometric authentication introduced for UPI transactions.

• Re-KYC through ATM introduced for ease of customer verification.

• Digital FD receipt format revamped; Green FD Certificate sent to registered email ID as part of the Bank's paperless initiative.

• Pay-to-Contacts: Customers can transfer funds to UCO Bank users using only their mobile number.

• Multi-Account Access enabled for corporate customers across Current and Cash Credit accounts in a single platform.

13.2 Straight Through Processing Journeys

• The Bank operationalised 31 end-to-end digital lending journeys in FY 2025-26, including:

• STP Pre-Qualified Vehicle Loan (PQVL), UCO Select Plus, STP Car Loan, STP Gold Loan, STP KCC Fresh (in collaboration with RBIH),
STP SHG Loan, STP Dairy Loan, STP Home Loan, UCO Aashray, Digital UCO Cash Loan, and Pre-Qualified Business Loan.

• Total digital balance sheet reached Rs. 25,350 crore as on 31st March 2026 (Rs. 11,132 crore in advances; Rs. 14,218 crore in
liabilities).

13.3 Debit Card and WhatsApp Banking

• Launched the 'Aparajita Debit Card' for women customers, a 'Metal Debit Card' for premium customers, and a 'Braille Debit Card' for
visually impaired customers.

• WhatsApp Banking expanded with 9 additional regional languages and new features including CC Renewal, Account Debit Freeze, and
ADC Block.

13.4 CBDC and Infrastructure

• CBDC application launched for Android users; Subhadra scheme disbursements routed through CBDC.

• UPI Interoperability feature enables seamless transactions between CBDC wallets and the UPI ecosystem.

• CBDC Offline feature introduced to enable transactions without internet connectivity, particularly relevant for rural areas.

• Application Performance Monitoring (APM) tool implemented for real-time application health and performance insights.

• Migration of the Bank's website to the .bank.in domain to enhance security and authenticity.

13.5 Exceptional Achievements in FY 2025-26

• 1,718 gold loans sanctioned on a single day aggregating Rs. 59.33 crore.

• 163 digital vehicle loans sanctioned on a single day aggregating Rs. 14.99 crore.

• 906 digital CC renewals processed on a single day aggregating Rs. 24.46 crore.

• 12,283 mobile banking activations in a single day.

• 27,014 fresh debit cards issued to customers in a single day.

14. CYBER SECURITY:

UCO Bank has established a state-of-the-art Cyber Security Operations Centre (CSOC) operational on a 24x7 basis. The Bank's CBS,

RTGS, and UPI systems have been identified by NCIIPC as part of India's critical financial infrastructure. The Bank is directly integrated with

the Threat Dissemination Platform (TDP) of CERT-In and NCIIPC, and has forged a partnership with the Cyber Security Centre of Excellence,
Government of West Bengal.

14.1 Key Initiatives:

• Implementation of Security Orchestration, Automation, and Response (SOAR) with SIEM for improved threat response.

• Database Activity Monitoring (DAM) enhanced with Database Risk Analytics (DRA) and Database Security Fabric (DSF).

• Migration to ISO 27001:2022 standard for the Bank's Data Centres and support functions.

• SSL Offloader deployed to enhance traffic management across security devices.

• Dedicated Cyber Awareness Corner on the Bank's website; monthly Cyber Jagrookta Diwas observed across the branch network.

• Cyber awareness booklets, e-learning modules, monthly quizzes, and cyber drills conducted for staff and customers.

15. ANALYTICS and data management:

• 171 critical data elements identified for regulatory reporting; control validations implemented in Finacle, LOS, and other source systems.

• Centralised Enterprise Data Warehouse (EDW) established on a SAS-based architecture as a Single Source of Truth, consolidating
legacy MIS systems.

• Business LIVE Dashboard deployed with a concurrency capacity of 10,000 simultaneous users, providing real-time business
intelligence across Branches, Zonal Offices, and Head Office.

• In-house AI and Generative AI applications built and deployed across multiple business domains - including RAG-based Knowledge
Assistants, HR use cases, and business intelligence tools - on indigenous open-source Large Language Models within the Bank's air-
gapped on-premises environment.

• Digital Personal Data Protection (DPDP) Act implementation: data redaction implemented on 30 identified PII data elements; consultant
appointment in progress for comprehensive gap analysis.

• CIBIL DQI improved to 98 per cent (Consumer) and 94 per cent (Commercial); submission frequency transitioning to daily as per revised
RBI guidelines from 1st July 2026.

16. operations and services:

During FY 2025-26, the Bank undertook a comprehensive set of initiatives focused on customer-centricity, fraud prevention, grievance
redressal, and operational resilience.

• UCO Sampark 2.0: Redesigned IVR tree reducing call drops and improving navigation efficiency.

• UDAY Chatbot: Services extended to cheque book requests, Stop Cheque, Re-KYC, balance enquiry, and mini statements; Live Agent
support introduced.

• UCO Samwaad Kiosks: Rolled out for Divyang (Persons with Disabilities) customers.

• UCO Pink Line: Dedicated routing of female customers to female agents introduced.

• OGRS 2.0 launched, powered by AI/ML for faster complaint categorisation and resolution.

• MuleHunter.AI deployed for real-time detection of mule accounts; integration with I4C Suspect Registry and DoT portals for proactive
fraud prevention.

• VIGIL-PULSE platform introduced, screening accounts against 200 risk sources.

• Dedicated Unclaimed Deposits Portal launched for online customer claims.

• Record settlement ofRs. 144.24 crore across 34,644 DEAF/inoperative accounts - the highest in any financial year. The Bank
secured Rs. 9.28 crore RBI incentive under the Accelerated Payout Scheme.

17. HUMAN RESOURCES:

17.1 Manpower

The total staff strength as on 31st March 2026 stood at 20,984, comprising 13,717 Officers, 5,514 Clerks, and 1,753 Sub-Staff. Women
employees number 6,199, constituting 29.54 per cent of the total workforce. The Bank employs 518 Persons with Benchmark Disability
(PwBD) and 1,451 employees from Minority Communities, along with 1,289 Ex-Servicemen.

17.2 Recruitment

During FY 2025-26, the Bank recruited 649 employees across key roles including IT Officers, Agricultural Field Officers, Chartered
Accountants, Law Officers, Local Bank Officers, and Customer Service Associates. Women constituted 35 per cent of new recruits. An
additional 228 apprentices were engaged during the year. For FY 2026-27, recruitment has been initiated for 100 Probationary Officers,
190 Specialist Officers (including AI/ML, Cyber Security, Data Science, and CA profiles), and 419 Customer Service Associates.

17.3 PMS Cell:

Performance Management System is a vital tool for any organization to assess employee's contribution, drive continuous improvement,
create a positive and productive work environment. As per PMS Policy all Officers/ Executives upto scale VIII have to submit Quarterly as
well as Annual Performance Appraisal.

• Appraisals based on allocated Roles through Samsiddhi application.

• Role allocations as per allocated work improve transparency, job satisfaction and reduce confusion or conflicts.

• With continuous improvement in KRAmeasurability, helps in improving PMS objectivity.

• Clear goal setting with regular monitoring of progress through monthly score card.

• Scientific Manpower Planning Tool for Officers and automation of Transfer process.

• Samsiddhi Performance Leader Board, Employee of Month in different categories like Home Loan, Car Loan, Compliance Officer, Hindi
Officer etc.

• Samsiddhi based Bio data for all Interview Process in Bank.

• Policy on Rewards and Recognition Framework for Officers/Executives to suitably recognize Officers/ Executive Performance at
Branch, Zonal Office and Head Office level through Performance Linked (Both Monetary/Non-monetary) Rewards in Business
generating roles.

• Succession Planning covering different critical roles across multiple verticals as per the identified requirements, covering eligible
officers in scale III to VII.

• Job Family Allocation to eligible officers by obtaining inputs/preferences from the respective Officer/Executive along with their
Reporting Authority in Samsiddhi.

internal Complaints Committee (ICC):

Our Bank is committed to promote gender equality and women's empowerment which result in economic development and inclusive growth
and benefit the nation as a whole.

In terms of creating safe workplace environment for women our Bank has constituted Internal Complaints Committees at Apex level as well
as Local Level enforcing the rules as laid out in the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act,
2013 for quick redressal of such complaints, if any.

17.4 Reservation Cell:

Bank has been implementing reservation, relaxation and other concessions extended to SC/ST/OBC/Differently abled Persons and Ex¬
Servicemen employees as per instruction/direction of the Government of India. The overall representation as on 31/12/2025 of SC/ST/OBC/
EWS employees is19.80%, 8.31%, 24.38% and 1.68% respectively. Separate roster registers are maintained for direct recruitment as well
as for promotion.

For SC/ST employees, reservation cell and separate OBC cell for OBC/EWS employees are set up at HO level and across all ZO level as
per DFS guidelines, functioning under the direct control of Chief Liaison Officer as well as Ex-officio Liaison Officer respectively. Separate
Grievance Redressal officer for PwBD and EWS employees has already been appointed to look after their grievance.

During FY 2025-26, Bank imparted training to 11978 employees out of SC-4062, ST-1738, OBC-5314, EWS-384 and PWD-480. Bank has
imparted pre-promotional training to 1731 employees (SC-585, ST-293, OBC-790 and PWD-63) for inter-scale promotion of officers, 189
employees (SC-84 ST-15, OBC-85 and PWD-5) for promotion from Clerical to Officers and 175 employees (SC-101, ST-19, OBC-48 and
PWD-7) for promotion from Sub-ordinate to Clerical cadre belonging to SC/ST/OBC and PWD Category. In order to address the issues of SC/
ST & OBC employees of the Bank, meetings are called at Apex level as well as at Zonal office level quarterly basis (Where reservation
roster is maintained) with Welfare Association of such employees. An Internal Grievance Committee is functioning at Head office level for
monitoring the grievances redressal of the employees belonging to SC/ST/OBC/Ex-SM/PWD, which are handled and subsequently
redressed by the respective cell, as per Bank's extant policy and guidelines.

The Annual Statement in the prescribed format showing the representation of SCs, STs, OBCs, EWSs and PWDs as on 31-12-2025 are
given in Annexure-I & Annexure-II

17.5 Learning and Development

A total of 20,729 employees comprising 954 Executives, 12,334 Officers, and 7,441 Sub-Staff were trained in FY 2025-26 through
internal and external programmes. Key training themes included EASE Awareness, ESG Financing, AML/CFT, Cyber Security, Digital
Banking, AI in Banking, Priority Sector Lending, and International Banking. Smart Classrooms were implemented across all Staff
Training Centres.

The Bank sponsored executives and officers at premier external institutions including NIBM Pune, BIRD Lucknow, CAB (RBI), IIBF,
CAFRAL, IIM Indore, and SBIL Hyderabad. Management Development Programmes for promotee executives in Scale IV and V were
conducted at IIM Indore and SBIL Hyderabad.

18. AUDIT AND INSPECTION:

• Risk-Based Internal Audit (RBIA) conducted in 2,815 branches and 108 Loan Processing Hubs during FY 2025-26. Audit
frequency is calibrated to risk level: Low Risk (15-16 months), Medium Risk (12-13 months), High Risk (9-10 months), Very High
Risk (8-9 months), and Extremely High Risk (6-7 months).

• Concurrent Audit covers 809 branches, 114 specialised branches, and 6 Head Office departments - covering 76.87 per cent of
advances, 52.72 per cent of deposits, and 63.10 per cent of total business.

• Management Audit completed for 35 Zonal Offices, 25 Head Office Departments, and 7 Staff Training Centres during the year.

• Revenue Audit conducted at 1,558 branches; detected revenue leakages have been recovered.

• IS Audit covers Application, Source Code, Process, Vendor, Database, Network, VA & PT audits, supplemented by new audit
areas: Change Log Audit, Change Request Audit, and Batch Job Audit (conducted on T 1 basis).

19. VIGILANCE:

UCO Bank maintains a robust vigilance administration framework aligned with its overall management functions, guided by the Central
Vigilance Commission (CVC). Vigilance functions are headed by the Chief Vigilance Officer (CVO), with emphasis on Participative,
Proactive, and Preventive Vigilance as the cornerstones of transparency and accountability.

• 215 complaints received from DFS, CVC, RBI, CBI, and other sources during FY 2025-26; all complaints with vigilance overtones
disposed of within CVC-prescribed timelines.

• In-house quarterly vigilance magazine 'UCO VIGIL' continued publication to promote integrity and transparency.

• Monthly inter-departmental Coordination Meetings held under CVO chairmanship, covering fraud reporting, investigations, com¬
plaints, and ABBFF matters.

• 'Mission Jagriti' preventive vigilance initiative: Head Office officials conducted visits to Zonal Offices for awareness sessions
and interactive discussions.

• Vigilance Awareness Week observed from 27th October to 2nd November 2025 on the theme 'Vigilance: Our Shared Respon¬
sibility.'

20. COMPLIANCE:

UCO Bank's Compliance Department, headed by the General Manager and Chief Compliance Officer, serves as the single point of
contact with the Reserve Bank of India and ensures seamless implementation of Risk-Based Supervision (RBS) the SPARC frame¬
work. The Board-approved Compliance Function Policy, reviewed annually, articulates the Bank's compliance philosophy and
organisational structure. Key compliance initiatives during FY 2025-26:

• Individual-level compliance self-certification tool introduced, with quarterly self-certifications by employees based on their
specific role profiles.

• Compliance by Design Toolkit launched - a checklist-driven, modular guidance system embedding compliance controls into
product and process rollouts.

• Overseas branches at Singapore and Hong Kong maintain dedicated Compliance Officers who ensure adherence to host-
country regulations, KYC, AML, and CFT standards, and submit regular compliance sustainability reports.

21. OFFICIAL LANGUAGE:

UCO Bank has been proactive in implementing the Official Language Policy of the Government of India. During FY 2025-26, the Bank
achieved full compliance with directives from the Department of Financial Services, Ministry of Finance, and the Third Sub-Committee
of the Committee of Parliament on Official Language.

Notable distinctions received during the year:

• Rajbhasha Kirti Puraskar - Second Prize (Magazine Category) for 'UCO Anugoonj', conferred by the Government of India.

• TOLIC (NARAKAS) Rajbhasha Samman - Second Prize, for TOLIC (Banks), Kolkata, under UCO Bank's convenership.

• Regional Official Language Award - First Prize (Eastern Region) for Zonal Office, Bhagalpur, conferred by the Hon'ble Union
Home Minister.

• Department of Financial Services Second Prize for UCO Bank Head Office for outstanding Official Language implementation in FY
2024-25.

• 172 Hindi workshops conducted at Head Office and Zonal levels, covering approximately 4,577 officers and clerical staff.

• Book on 'Viksit Bharat @ 2047' released at Gandhinagar on 14th September 2025 in the presence of senior Government
dignitaries.

22. awards and recognition

During the Fy 2025-26 UCO Bank has received several Awards and Recognitions.

• SKOCH Award winner for Gold category in BFSI- FY 2025-26 for Project Parivartan.

• The Bank was also conferred the BFSI Fraud Risk Management Award 2025 by Fin Crime Expert, and was ranked 5th nationally
among Public Sector Banks for grievance redressal.

• Silver Award at IBEX India BFSAI Tech Awards FY 2025-26 in Digital Trailblazer Category.

• At the 4th IBA CISO Summit & Citations 2025, the Bank bagged four prestigious Cyber Security Awards in the Public Sector:
Medium Bank category, including the Cyber Security Transformation of the Year (Winner), Cyber Security Team of the Year
(Runner-Up), Cyber Incident Response Maturity (Runner-Up), and Cyber Security Compliance Champion (Special Prize).

• Achieved a top rank under the {jVff, twt Vtet®" campaign for settlement of unclaimed deposits.

• In the domain of Official Language, UCO Bank, Head Office, received special distinction from the Department of Official Lan¬
guage, Ministry of Home Affairs; our quarterly Hindi journal 'UCO Anugoonj' was awarded the Rajbhasha Kirti Puraskar - Second
Prize; TOLIC (Banks), Kolkata, under our convener ship, received the NARAKAS Rajbhasha Samman - Second Prize; and the
Zonal Office, Bhagalpur, was conferred the Regional Official Language Award - First Prize (Eastern Region) from the hands of
the Hon'ble Union Minister of Home Affairs, Shri Amit Shah.

23. CORPORATE GOVERNANCE:

UCO Bank remains steadfast in its commitment to strong Corporate Governance, guided by its core values of transparency,

professionalism, and accountability. The Board believes that sound governance is the cornerstone of building trust, loyalty, and

goodwill among clients, business partners, employees, and investors.

23.1 Board Committees:

Eleven meetings of the Board of Directors were held during FY 2025-26. The number of meetings of various Board Committees held

during the period is as follows:

23.2 Changes in the Board of Directors:

Ms. Rachna Khare, Shareholder Director, tendered her resignation from the Board with effect from 25th December 2025, consequent
to her appointment as Insurance Ombudsman, Pune. Shri Rajesh Kumar Ailawadi was nominated as Shareholder Director with effect
from 8th March 2026. His extensive experience across Marketing, Administration, Actuarial, Personnel, Industrial Relations, and Legal
functions will further strengthen the Bank's governance framework.

23.3 Directors' Responsibility Statement:

The Board of Directors confirms that:

• In the preparation of the Annual Accounts for FY 2025-26, all applicable accounting standards have been followed, with proper
explanation for material departures, if any.

• Accounting policies have been framed in accordance with RBI guidelines and consistently applied.

• Reasonable and prudent judgements and estimates have been made to present a true and fair view of the state of affairs of the
Bank as at 31st March 2026.

• Proper and sufficient care has been taken for maintenance of adequate accounting records in accordance with applicable laws.

• Accounts have been prepared on a going concern basis; adequate internal financial controls are in place.

23.4 Acknowledgements

The Board of Directors warmly welcomes Shri Rajesh Kumar Ailawadi as Shareholder Director and places on record its sincere
appreciation for the valuable contributions of Ms. Rachna Khare during her tenure on the Board.

The Board extends its heartfelt gratitude to the Bank's customers, staff, vendors, shareholders, business associates, and corre¬
spondent banks for their unwavering support throughout the year. The Board remains deeply thankful to the Government of India, the
Reserve Bank of India, and all regulatory authorities for their continued guidance and co-operation.

The Board expresses its appreciation to staff unions and associations for their constructive engagement, and places on record its
deep appreciation for the dedication, commitment, and solidarity demonstrated by every employee across all levels of the organisation.
The collective efforts of UCO Bank's employees remain the cornerstone of the Bank's sustained progress and success.