united bank of india Directors report
The Board of Directors have pleasure in presenting the 69thAnnual Report of the Bank along with the Audited Balance Sheet, Profit and Loss
Account and the report on Business and Operations for the year ended March 31, 2019 (FY2018-19).
MANAGEMENT DISCUSSION AND ANALYSIS:
The Board of Directors have pleasure in presenting the 69thAnnual Report of the Bank along with the Audited Balance Sheet, Profit and Loss
Account and the report on Business and Operations for the year ended March 31, 2019 (FY2018-19).
Global Economic Outlook:
The Global Economy had a strong growth in 2017 and early 2018. However, global economic activity slowed significantly in the second half of 2018, reflecting a various factors affecting major economies. Global growth is now projected to slow from 3.6 % in 2018 to 3.3 % in 2019. As Global growth is expected to hover around 3.0 % in 2019 and 2020, it masks an increase in downside risks that could potentially threaten development challenges in many parts of the world. The global economy is facing a confluence of risks, which could severely disrupt economic damage on longer-term development prospects. These risks include an escalation of trade disputes, an abrupt activity and inflict significant tightening of global financial conditions, and intensifying climate risks. In many developed countries, growth rates have risen close to their potential, while unemployment rates have dropped to historical lows. Among the developing economies, the East and South Asia regions remain on a relatively strong growth trajectory, amid robust domestic demand conditions. While economic activity in the commodity-exporting countries, notably fuel exporters, is gradually recovering, growth remains susceptible to volatile commodity prices. For these economies, the sharp drop in global commodity prices has continued to weigh on fiscal and external balances, while leaving a legacy of higher levels of debt.
The global growth outlook for 2019 remains steady although the underlying downside risks have risen. The gradual monetary policy normalisation in advanced economies (AEs) as also the uncertainty in global trade regime may adversely affect capital flows to emerging markets (EMs) and exert upward pressure on EM interest rates and corporate spreads. In the meanwhile, commodity prices, particularly oil, have softened mostly driven by excess supply of US shale oil, uncertainty about Chinese demand and on supply concerns from Iran turning out softer than anticipated. In India, growth of gross domestic product (GDP) showed slight moderation while inflation remains contained. Fiscal consolidation remains important for financial financialconditions turn adverse. The impact of oil prices feeding into input costs remains uncertain stabilityasglobal with potential implications for Indias terms of trade. In the domestic financial markets, structural shifts in credit intermediation and the evolving interconnectivity between banks and the non-banks call for greater vigilance
The performance of PSBs in the MSME segment trails that of other intermediaries viz., private sector banks and nonbanking financialcompanies
(NBFC). This is both in terms of inherent as well as realised credit risk underscoring the need to improve credit appraisal skills.
The global financialcrisis (GFC), bank capital regime appears to have increased systemic resilience. In the global financial to a post-LIBOR world remains a work in progress. On the domestic front, the Reserve Bank initiated several policy measures to deepen the government securities (G-Sec) and Repo markets. In the capital market, investment through Systematic Investment plans (SIPs) in mutual funds remains a bright spot.
Bad Debts in Banks:
The gross NPA ratio might decline from 10.8% in September 2018 to 10.3% in March 2019 and 10.20 % in September 2019. Bad loans of public sector banks (PSBs) declining by over Rs 23000 Crore from a peak of Rs 9.62 Lakh crore in March 2018.
The Government of India has promulgated an ordinance, which amends section 35A of the Banking Regulation Act, 1949 and inserts section 35AA and section 35AB in the Banking Regulation Act. The ordinance authorises the "Reserve Bank of India to issue directions to any banking company or banking companies to initiate insolvency resolution process in respect of a default under the provisions of the Insolvency and Bankruptcy Code (IBC), 2016".
It also empowers RBI to set up sector related oversight panels that will shield bankers from later action by probe agencies looking into loan recasts. The government had earlier enacted the IBC to consolidate and amend the laws relating to reorganization and insolvency resolution of corporate persons, partnership firms and individuals in a time bound manner. It was aimed at maximizing the value of assets to promote entrepreneurship, availability of credit and balance the interest of all stakeholders.
Government has recently announced PSBs reforms agenda for responsive and responsible banking, which encapsulates a synergistic approach for ensuring prudential and clean lending, better customer service, enhanced credit availability, focus on micro, small and medium enterprises. The performance of the reforms agenda is being monitoring and supervision by BCG through a project by the name "Digital Interface for Performance Assessment of Key Action Points" i.e. "DIPAK".
These are steps in the right direction to reduce NPA of banks in general and our Bank in particular.
Agriculture:
Gross Value Added (GVA) at basic prices in agriculture and allied activities decelerated in H2: 2018-19 on account of a number of factors operating in conjunction, viz., the poor performance of the southwest and northeast monsoons, lower water reservoir levels in the eastern and western regions. Factor like the poor performance of the southwest and northeast monsoons, lower water reservoir levels in the eastern and western regions; unremunerative prices for farm produce and the lack of traction in food management policies to deal with large excess supplies, led to a shortfall of (-) 3.8% in total rabi sowing from the previous years acreage.
Consequent upon the release of the SAE of crop production for 2018-19, which indicated a minor upward revision in the production of kharif food grains but a lower-than targeted rabi harvest, agricultural GVA growth for the year was revised downwards to 2.7% from 3.8% in the CSOs first advance estimates
Horticultural crop production was at a record level of 315 million tonnes during 2018-19, driven mainly by spices, aromatics and medicinal, flowers and vegetables. In the recent period, allied activities, which include livestock, forestry and fishing, have contributed around three-fourth of overall GVA growth of the sector
Industry:
The Index of Industrial production (IIP) cumulative growth slow April 2018 to March 2019 at 3.6% over corresponding the year-ago period. The growth for Index of Manufacturing, Mining and Electricity was (-) 0.4%, 0.8% & 2.2% respectively during Mar2019. Slower growth is mainly seen in the manufacturing sector, where sub-sectors such as refinery products, basic metals, chemical and leather products, saw weakness. The use-based classification, the Index for Primary goods, Infrastructure/ construction goods & Consumer non-durables registered positive growth of 2.5%,6.4% & 0.3% respectively while the index for Capital goods, Intermediate goods & Consumer durables registered negative growth of (-)8.7%,(-)2.5%& 5.1% respectively Mar2019.
Inflation:
The all India Consumer Price Index-Combined (CPI-C) inflation declined to 2.86% in March 2019 from 4.28% in March 2018. Food inflation based on Consumer Food Price Index (CFPI) decreased to 0.30% in March 2019 from 2.81% in March 2018.
Indias Wholesale Price Index (WPI):
Wholesale price-based inflation stood at 3.18% for the month of March, 2019 against 2.74% in March 2018. The Wholesale Price Index (WPI) based inflation was 2.93% in February, 2018. The spike in WPI inflation comes on the back of costlier food and fuel products. Vegetables inflation came at 28.13% in March 2019, increased from 6.82 % in the month of February. The inflation in fuel and power category rose to 5.41% in March 2019 from 2.23 % in February.
Capital Market:
Indias current account deficit (CAD) stood at $16.9 billion (or 2.6% of GDP) in the third quarter of fiscal 2019 (Q3 FY19), lower than $19.1 billion (2.9% of GDP) in the previous quarter, but higher than $13.7 billion (2.1% of GDP) in the same quarter last year.CAD moderated as total trade deficit reduced $1.6 billion on-quarter to $28.1 billion in Q3 FY19. The rise in services trade surplus was the main contributor to this decline. Goods trade deficit also reduced, but to a lesser extent.
Money and Credit
Based on trend estimates, banknotes in circulation could potentially reach around Rs 20.9 trillion by FY19 (or 11.1% of GDP); it was Rs 20.4 trillion at end-January 2019.
Growth of Aggregate Deposits of Scheduled Commercial Banks (SCBs)
Banking credit continued to post double-digit growth, registering 14.1% increase on-year as of March 15, 2019. However, growth was still not broad-based as industrial credit growth continued to remain anaemic. As of February 2018, industrial credit (which accounts for ~33% of gross bank credit) grew at ~5.6% on-year, while the services sector (which accounts for ~27% of gross bank credit) and retail segment (which accounts for ~26% of gross credit) registered strong growth of ~23% and ~17%, on-year, respectively, driven by strong consumption demand and higher credit requirement by non-banks. Deposit growth, too, improved, up ~9.5% on-year as of March 15, 2019.
Foreign Trade
Indias overall exports (Merchandise and Services combined) in April-March 2018-19 are estimated to be USD 535.45 Billion, exhibiting a positive growth of 7.97% over the same period last year. Overall imports in April-March 2018-19 are estimated to be USD 631.29 Billion, exhibiting a positive growth of 8.48% over the same period last year.
Cumulative value of exports for the period April-March 2018-19 was USD 331 Billion (Rs 2314429 Cr) as against USD304 Billion (Rs 1956515 Cr) during the period April-March 2017-18, registering a positive growth of 9.06% in Dollar terms (18.29% in Rupee terms).
Cumulative value of imports for the period April-March 2018-19 was USD 507 Billion (Rs 3548004 Cr) as against USD 466 Billion (Rs 3001033 Cr) during the period April-March 2017-18, registering a positive growth of 8.99% in Dollar terms (18.23% in Rupee terms).
Future Prospects
For the fiscal 2020, relatively low oil prices and the slowing pace of policy normalisation in the US will likely check the rupees depreciation. Therefore, we expect the rupee to weaken modestly and average 72/$ on average by March 2020. Our forecast for March 2019 is average 71/$. However, given India is a current-account-deficit country, the rupee is vulnerable to volatility from oil prices, tariff wars, and monetary policy surprises from advanced countries
FINANCIAL PERFORMANCE
Banks performance during the year was delimited by setting of priorities for gaining desired results in the fields of asset quality and recovery of bad assets. Due to capital constraint and in compliance with direction of the Govt. of India, as Banks advance was restricted based on the Risk Weighted Assets of the Bank. The main performance indicators of growth, profitability, efficiency, Bank has registered an Operating Profit of Rs 1412 crore during the financial year 2018-19 compared to Rs1024 crore in the financial year 2017-18, registering a growth of Rs 388 crore (37.89 %). Due to high NPA & higher provisioning of NCLT referred accounts, Banks bottom line was squeezed and the Bank suffered a net loss of Rs 2316 crore in FY 2018-19 compared to a Net Loss of Rs 1454 crore in FY 2017-18. Gross Profitper employee increased from Rs 6.91 lakh as on Mar18 to Rs 10.23 lakh as on Mar19.
| Key Financial Ratios (%) | March 2018 | March 2019 |
| Cost of Funds | 5.38 | 5.07 |
| Yield on Funds | 9.29 | 9.10 |
| Cost of Deposits | 5.30 | 4.96 |
| Yield on Advances | 7.35 | 7.49 |
| Yield on Investments | 7.62 | 7.66 |
| Spread as a % of AWF | 1.07 | 1.36 |
| Net Interest Margin (NIM) | 1.66 | 2.10 |
| Operating Expenses to AWF* | 1.92 | 2.03 |
| Return on Avg. Assets (RoAA) | (1.04) | (1.60) |
| Return on Equity | (33.06) | (49.29) |
| Business per Employee (Rs In Crore) | 13.22 | 14.96 |
| Profit per Employee ( Rs In Lakh) | 6.91 | 10.23 |
| Profit per Branch ( Rs In Lakh) | 49.78 | 68.69 |
| Book Value per share | 14.64 | 6.73 |
*AWF Average Working Fund
Income and Expenditure Analysis
Interest income of the Bank increased to Rs 8560 crore in 2018-19 compared to Rs 8342 crore earned during the year 2017-18. Interest income being a direct function of growth in advances and the rate of interest charged. Bank revised its MCLR four times during the year 2018-19. Non-interest income increased by Rs 170 crore from Rs 2215 crore in the financial year 2017-18 to Rs 2385 crore in the financial year 2018-19. Yield on Advances increased to 7.49 % as at March 2019 compared to 7.35 % as at March 2018.
Interest Expenditure declined by Rs 264 crore to Rs 6585 crore in 2018-19 compared to Rs 6849 crore in 2017-18. Lower interest expenditure was ensured by slashing of the rate of interest on retail term deposits in all the brackets. The Cost of Deposit came down from 5.30% in 2017-18 to 4.96% in 2018-19. Operating expenses increased from Rs 2683 Crore in March 2018 to Rs 2948 crore in March 2019.
BUSINESS GROWTH: Deposits:
Deposits of the Bank reached to Rs 134983 crore as on 31st March, 2019 registering a Y-o-Y growth of 4.37 %. Banks Savings deposits grew by 10.48 % to reach a level of Rs 58272 Crore as on March 31, 2019. Share of CASA deposits to total deposits stood at 51.45 % as on March 31, 2019. Banks retail term deposit stood at Rs 63681 crore with a declined by Rs 242 Crore (0.38% ) on Y-o-Y. Share of Bulk Deposits further declined to reach at 1.37 % as on March 2019 from 2.13 % as on March 2018.
The customer base of the Bank has reached to 3.88 core as on 31March 2019.
Advances:
Gross Advances of the Bank Increased by Rs 4431 crore (6.45 %) and reached at Rs 73123 crore as on March 31, 2019. Credit deposit ratio stood at 54.17 % as on March 2019. Bank achieved the PRISEC Advance target of 40 % of ANBC. Intensive marketing of retail credit products brought considerable growth in Retail Advances supported by increase in Housing Loan.
Banks non-food credit increased from Rs 68111 crore to Rs 71549 Crore, and food credit also increased from Rs 581crore as on March 31, 2018 to 1574 Crore at the end of 31March, 2019.
Total Business:
The total business of the Bank reached to Rs 208106 crore at the end of the current financial year 2018-19.
Productivity, as measured by business per employee, increased from
Rs 13.22 crore as on 31.03.2018 to Rs 14.96 crore as on 31.03.2019.
RETAIL LENDING OPERATIONS:
Retail Credit has been one of the major thrust areas of the bank during FY 2018-19. Bank has laid emphasis on sanctioning Retail Loans with focus on Housing Loan & car loan which are major contributors to growth under Retail credit & comprised 82.99 % of total Retail Credit portfolio of the Bank.
Steps taken for growth of business in Retail Loan segment:
• A contest in the name and style "United Retail League- Maha Festive Dhamaka" was launched for the period from 01.10.2018 to 31.03.2019. 4698 number of Housing Loans proposals, amounting to Rs 778.50 Crore, were sanctioned during the contest.
• Home loan Counselors were engaged for mobilizing housing loan for ticket size of Rs30 lakh & Above.
• Bank has executed MoU with Assam Govt for extending Housing Loan , under the scheme "APON GHAR" , to the employees of Assam Govt. a Bank has launched a new variant of Housing Loans under "United Home Advantage" scheme.
• The Bank has launched United Combo Loan Scheme (Housing Loan + Car Loan) on 20.10.2018 for eligible Housing Loan Customers (both existing & new) for availing Car Loan with relaxation in Interest Rate, NIL Processing Fee and Reduced Margin for boosting Car Loan Portfolio of the bank.
• A special scheme under "Chief Ministers B.Ed. Anuprerna Yojana for Interest Subsidy on Education Loans availed by meritorious students domiciled in Tripura for Pursuing B. Ed course" has been launched wherein Interest Subsidy will be provided by Govt. of Tripura.
• The Retail Credit has witnessed a growth of Rs 1443 Crore from Rs11255 Crore as on 31st March, 2018 to Rs12698 Crore as on 31st March, 2019 registering a y-o-y growth of 12.82%. a The Housing Loan Segment increased by Rs 1023 Crore from Rs 8615 Crore as on 31.03.2018 to Rs 9638 Crore as on 31.03.2019, registering a y-o-y growth of 11.87%.
• Loan under Auto Sector increased by Rs 117 Crore from Rs 783 Crore as on 31.03.2018 to Rs 900 Crore as on 31.03.2019, registering a y-o-y growth of 14.94%.
• Loans under Other Retail Sector has increased by Rs 350 crore, from Rs 1440 crore as on 31.03.2018 to Rs 1790 crore as on 31.03.2019, registering a y-o-y growth of 24.31%. The major contribution of growth has come from personal loan to salaried account holders of our bank.
BANCASSURANCE BUSINESS:
The Bank, for augmenting its non interest income, has been undertaking Bancassurance business since 2004 for both Life and Non Life insurance segment. The Bank has obtained fresh Certificate of Registration (Composite) from IRDAI with effect from 01-04-2019 which is valid upto 31-03-2022.
In this financial year under Corporate Agency Arrangement Bank has further tied with up with HDFC Life Insurance Co.Ltd. in addition to LIC of India as a new insurance partner under Life vertical and two partners Bajaj Allianz General Insurance Co.Ltd. and TATA AIG General Insurance Co.Ltd. under Non Life vertical and Star Health and Allied Insurance Co. Ltd. under Standalone Health vertical.
The Bank has earned the total Commission Rs15.26 Crore from insurance business of which Rs 6.92 Crore from life insurance business and Rs8.34 Crore from non- life insurance business during the FY 2018-19.
TREASURY AND INTERNATIONAL OPERATIONS:
The investment portfolio of the Bank increased from Rs51200.67 Cr as on 31.03.2018 to Rs62263.02 Cr as on 31.03.2019 registering a increase of 21.61%. The SLR investment portfolio decreased from Rs33899.57 Cr as on 31.03.2018 to Rs30569.31 Cr as on 31.03.2019. Portfolio modified duration has decreased to 4.15 as at March 2019 compared to 4.66 a year ago. The modified duration of the Available for Sale (AFS) portfolio has also decreased to 1.38 as at March 2019 from 2.80 as at March 2018.
The Bank has earned a total Trading profit of Rs1273.28 Cr from domestic segment of Treasury during the financial year 2018-19 as compared to Rs1444.14 Cr. for the financial year 2017-18 registering a decline of 11.83%. The average return on investment during the year 2018-19 was 7.39 % and Yield on Investment during the year 2018-19 was 7.66%.
Foreign exchange Business turnover of the bank aggregated to Rs14147.27 crore comprising of Rs3303.75 Cr under Exports, Rs1805.98 Cr under Imports and Rs 9037.54 Cr under remittances during the year ended 31.03.2019.
Outstanding export credit of the bank stood at Rs895.15 crore as at 31.03.2019.Bank earned exchange profit ofRs146.47 Cr during the year 2018-19 against Rs136.14 Cr during 2017-18.
The banks overseas presence covered two countries namely Myanmar and Bangladesh with one Representative Office each at Dhaka, Bangladesh and Yangon, Myanmar respectively. Indo-Bangladesh and India-Myanmar trade based payments, LC business etc are routed through our Bank. Twenty nine (29) banks of Bangladesh maintain forty three (43) Vostro account in USD and EUR and twenty one (21) banks of Myanmar maintain thirty one (31) Vostro accounts in EUR, USD and INR with our Bank. Global IME bank Ltd., Nepal has been maintaining Vostro accounts in INR & USD with our Bank.
The banks International operations are well supported by a wide network of more than 620 correspondent relationships and 16 Nostro accounts opened with overseas banks in 7 currencies being maintained abroad.
OTHER SERVICES:
Bank has also redeemed AT1 Bonds (Series I to IV) amounting to Rs940.00Cr, by exercising Call Option on 11.04.2018 and redeemed Tier-2 Bond (Series VI) amounting to Rs250.00 Cr on 25.03.2019. of Registration issued Bankholdscertificate by SEBI on Banker to an Issue, Debenture Trustee and Merchant Banker under which it continues to discharge defined duties and responsibilities as per regulatory norms.
GOVERNMENT BUSINESS:
Government Transaction Department undertakes different types of Government Business Activities as following:-
• Collection of Central government revenues viz. Direct and Indirect Taxes (CBDT), Goods and Services Tax (GST), Collection of CBEC (Custom, Central Excise etc.) through all the branches. a Collection of State Revenues and Taxes of different states.
• Mobilisation of Govt. deposits under small savings like Public Provident Fund (PPF), Senior Citizens Saving Scheme (SCSS), Sukanya Samridhi Accounts (SSA), different tranches of Sovereign Gold Bonds, Savings Bond etc.
• Handling of Govt.Fund (Departmentalized Ministerial Accounts, State Govt. Treasury Operation in different states.)
• Disbursement of different types of pensions to Central Govt. State govt. pensioners and pensioners of different autonomous organizations like EPFO, Kolkata Port Trust, Damodar Valley Corporation, WBSEDCL etc.
• Undertakes National Pension System (NPS) as an Aggregator of Pension Fund Regulatory and Development Authority (PFRDA).
• Implementation of other govt. sponsored schemes as and when announced by the government.
• Dissemination of information to the Pensioners through ‘Pensioners charter being displayed in the banks website and on-line pensioners Grievance portal and display & downloading of Pensioners Pay Slip have been customized in the banks website. Digitization of Life Certificate for pensioners through Jeevan Praman have been in popular use.
• The total turnover in respect of Government Business handled by the bank and the agency commission earned on such business during this financial year(2018-19) amounts to -
| (Rs in crore) | ||
| Business Type | Turnover | Commission Earned |
| Tax | 6615.17 | 3.35 |
| Pension | 5678.58 | 22.76 |
| Treasury, DMA, Others | 8398.38 | 5.14 |
| PPF, SCSS, SSA, BOND & SDS | 1864.96 | 1.13 |
| Total | 22557.09 | 32.38 |
ASSET QUALITY AND RISK MANAGEMENT: ASSET QUALITY:
Bank has taken multiple corrective measures to arrest fresh slippage and boost up recovery. Use of Information Technology in NPA Management & Monitoring adopted for automatic identification & categorization of stress assets to take prompt and proactive steps for arresting
Fresh slippages as well as quick upgradation of slipped accounts.
Monitoring and recovery Departments were strengthened by pooling dedicated manpower officers from different Departments /Sections/Branches for streamlining effective monitoring and recovery mechanism of stressed assets in SMA /NPA categories at field level.
The daily status was placed before Top Executives/Controlling General Managers for effective and close follow up stressed assets.
Major Initiatives undertaken to Boost Recovery in 2018-19
• Formed three tire separate vertical "STRESSED ASSET MANAGEMENT VERTICAL (SAMV)" and Opened 9 STRESSED ASSET MANAGEMENT BRANCH (SAMB)
• Launched Special OTS Scheme 2018-19 (for small ticket loan upto Rs 25 lac ) and United Special OTS Scheme 2018-19 (Ticket size above Rest Rs 25 lac to Rs 10 cr) launched to boost up recovery through OTS.
• Implemented Online Processing of OTS Proposals on automated online platform. a Introduction of Rewarding Schemes for motivating our field employees in Recovery. a Organized Mega e-auctions of charged securities on PAN India Basis.
• Conducted sale of assets to ARC etc in 5 tranches during the year.
• Undertaken Special drive for improvement of Recovery from NPA in doubtful-3 and Shadow accounts .
Each General Manager had monitored NPA management of 2/3 Regions under his / her control.
Regular interaction of Top Management from HO with Field staff and borrowers through Video Conferencing for prop up scouting OTS proposal and spot approval As a result of these systematic efforts, the fresh slippages in FY 2018-19 had come down to Rs 2870.52 cr against that of Rs 8606.26 Cr in previous year and the Gross NPA had declined to Rs 12053.38 cr. (16.48%) as on 31.03.2019 from Rs16552.11cr ( 24.10 %) as on 31.03.2018.
The cash recovery from NPAs during the year jumped to Rs 1264.80 cr against Rs 501.35 cr in previous year. In FY 2018-19, three big corporate NPA loans with total outstanding balance of Rs 1223.07 cr had been resolved through NCLT and 7 (seven) corporate loans (total outstanding balance
Rs 696.97 cr) were sold to ARCs.
The Net NPA ratio of the Bank had declined to 8.67 % as on 31.03.2019 against 16.49% as on 31.03.2018. In absolute terms, the Net NPA stood at Rs 5785.61 cr as on 31.03.2019 which was Rs10316.30 cr as on 31.03.2018. The provision coverage ratio of the Bank was 72.94 % as on 31.03.2019.
During the year 2018-19, the cash recovery in technically written off accounts shoot up to Rs 342.27 crore against Rs 99.53 crore in previous year. In the current financialyear 2018-19 a number of cases has been referred to NCLT under IBC-2016 where our exposure is Rs 4171.09 crore under consortium / multiple banking arrangement and Rs 657.24 crore in sole banking arrangement. It is expected that our bank will receive a good chunk from the resolution of the cases in the FY 2019-20.
CAPITAL & RESERVES:
Networth of the Bank was assessed at Rs 4999 crore as on March 31, 2019. Total paid-up capital of the Bank was Rs 7428 crore. The Government shareholding in the Bank stood at 96.83 % at March 2019.
| (Rs in crore) | ||
| Particulars | March 2018 | March 2019 |
| Basel-III Norms | Basel-III Norms | |
| Risk Weighted Assets | 63543 | 59432 |
| CET 1 capital | 5331 | 6028 |
| Tier 1 capital | 6271 | 6028 |
| Tier 2 capital | 1748 | 1700 |
| Total Capital | 8019 | 7728 |
| CET1 ratio (%) | 8.39 | 10.14 |
| Tier 1 ratio (%) | 9.87 | 10.14 |
| CRAR (%) | 12.62 | 13.00 |
Capital Adequacy Ratio under Basel-III norms assessed at 13.00% with Tier-1 Ratio at 10.14% and Tier2 ratio at 2.86% as at March 2019. The
Bank has adequate headroom available under both Tier-1 and Tier-2 options to raise capital to support business growth momentum.
Risk Management Structure:
The overall responsibility of setting the Banks risk appetite and effective risk management rests with the Board of Directors, apex level management of the Bank. Bank has constituted a Board Level Committee named as Risk Management Committee of Board of Directors (RMCBOD) to monitor the implementation of the Risk Management systems of the Bank. There are other internal committees of Top Executives like Credit Risk
Management Committee (CRMC), Operational Risk Management Committee (ORMC) and Asset Liability Management Committee (ALCO) to supervise various risk management functions and activities of the Bank.
Banks Asset Liability Management Committee (ALCO) is a decision making unit responsible for the strategic management of interest rate and liquidity risks. ALCO met 18 times during the year to review various issues namely interest rates scenario, product pricing for both deposits and advances, desired maturity profile of the incremental assets and liabilities, demand for Bank funds, fixation of Banks MCLR, cash flows of the Bank, profit planning and overall balance sheet management.
The Operational Risk Management Committee (ORMC) has the responsibility of monitoring the operational risk of the Bank and the responsibility of evaluating and taking necessary steps for mitigation of operational risk by designing and maintaining an explicit operational risk management process. It also ensures that the norms, policies and guidelines laid down in Operational Risk Management Policy are strictly adhered to. ORMC met 11 times during the year to discuss various issues from operational risk point of view. The Credit Risk Management Committee (CRMC) monitors various credit risk aspects relating to credit policy, procedures and to analyse, manage and control credit risk on a bank wide basis The Committee met 12 times during the year to discuss various issues from credit risk point of view.
Risk Management Policies:
To address various risks like credit risk, market risk, operational risk, liquidity risk, forex risk and other Pillar-2 risks, the Bank has formulated various risk management policies to identify, manage and mitigate such risks that the Bank is exposed to. The major policies formulated and approved by the Board of Directors of the Bank to address such risks are Lending Policy, Policy on ICAAP, Operational Risk Management Policy, Business Line Mapping Policy, Asset Liability Management Policy, Market Risk Management Policy, Integrated Treasury Policy, Disclosure Policy, Floating Provision Policy, Credit Audit Policy, Stress Testing Policy, and Policy on Credit Risk Mitigation Technique & Collateral Management etc.
Credit Risk:
To address the Credit risk, Bank has formulated a Lending Policy which lays down policy guidelines for Credit Management covering all areas of operation where credit Risk is involved. The policy enables the Bank to enhance the risk management capabilities by undertaking lending decisions guided by the policy framework for a steady and healthy growth in its loan portfolio.
The Bank has set various prudential limits to individual borrowers, group borrowers, entry level exposure norms, substantial exposure limits, benchmark financial ratios, borrower standards, exposure limits/ceilings to industries, sensitive sectors, directives. The Board has reviewed such limits during the year.
During the year, analysis of various exposure norms has been undertaken on half yearly basis to ensure Banks various exposures are within the exposure limits/ceilings fixed by RBI/ Banks Board.
Bank has made its loan appraisal function independent of Risk Rating function. Internal risk rating of loan accounts is carried through a software based rating model to assess the credit proposal and rating of a borrower.
During the year, Bank conducted the credit portfolio analysis on quarterly interval, to study the impact of a particular industry / sector on the credit portfolio of the Bank and adopt strategies to improve the quality of credit portfolio and reduce the potential adverse impact of concentration risk. During the year, Bank has also undertaken the rating migration analysis of its borrowers on half yearly interval to analyze the stability rate, up gradation rate, down gradation rate and default rate for a one year, two years, three years and four years time horizons and appropriate corrective actions are initiated to protect the portfolio quality.
Market Risk:
For management of Market Risk, the Bank has given emphasis on measuring, monitoring and managing liquidity, interest rates, foreign exchange and equity risk of the Bank. The Market Risk in trading book is monitored and managed as per appropriate control mechanism in place. Market position, funding patterns, duration, counterparty limits and various sensitive parameters are also monitored by the Bank on regular basis. The advanced Risk Management tools such as Value at Risk (VaR), Earnings at Risk (EaR), Net Overnight Open Position Limits (NOOPL) and modified duration limits are used in managing Market Risk.
The Bank measures and monitors liquidity risk for all items of balance sheet through structural liquidity statements and stock ratios on regular basis. The Bank also monitors its Interest rate risk through interest rate sensitivity gap reports. The Bank has formulated and reviewed its Integrated Treasury Policy to set operating guidelines for its treasury functions. The Bank has also put in place an Asset Liability Management Policy and Market Risk Management Policy to address the liquidity risk, interest rate risk and market risk etc. These policies comprise management practices, procedures, prudential risk limits, review mechanisms and reporting systems etc. These policies are reviewed periodically in line with changes in financial and market conditions.
Bank has an "Integrated Treasury Management System (ITMS)" software to monitor its investment and treasury portfolio on an ongoing basis along with automated computation of capital charge for Market Risk as well as strengthening the internal control system of investment portfolio of the Bank.
Operational Risk:
The Bank has framed an Operational Risk Management Policy for managing the Operational Risk in an effective manner. The Bank has also formulated Business Line Mapping Policy for mapping various products, activities, and income into different business lines.
Banks Operational Risk Management Committee (ORMC) has the responsibility of monitoring the operational risk of the Bank. ORMC also reviews the operational risk loss event data, new products, process and systems adopted by the Bank and provides suggestions for taking corrective/ preventive measures to strengthen the internal systems and procedures.
Basel-III Compliance:
In line with guidelines of the Reserve Bank of India, the Bank has successfully migrated to Basel-II framework w.e.f 31st March 2009 by adopting Standardized Approach (SA) for Credit Risk, Basic Indicator Approach (BIA) for Operational Risk and Standardized Duration Approach (SDA) for Market Risk for computing the capital adequacy ratio.
The Bank has also followed Basel-III capital regulation norms w.e.f 1st April 2013 in line with RBI guidelines. The Bank has been computing the Capital to Risk Weighted Assets Ratio (CRAR) under Basel-III norms at quarterly interval. To comply with Pillar 2 guidelines of RBI, the Bank has formulated a Policy on Internal Capital Adequacy Assessment Process (ICAAP) for the assessment of all material risks the Bank is exposed to and the risk management processes which are put in place to manage and mitigate those risks and also to evaluate its capital adequacy commensurate with such risks.
In line with the ICAAP policy, the Bank prepares the ICAAP Document on yearly basis and submits to RBI after internal validation and approval by the Board of Directors of the Bank. The ICAAP document of the Bank for 2018-19 has been submitted to RBI.
The Bank has reviewed its capital requirement under Basel-III norms and taken necessary steps for strengthening its capital base. The Bank also reviewed its concentration risk under ICAAP on quarterly basis for monitoring both risks and capital requirement of the Bank. In line with RBI guidelines and as per the Stress Testing Policy of the Bank, the Bank conducted Stress Testing analysis on quarterly interval on various risks like Liquidity Risk, Interest Rate Risk, Forex Risk, Credit Risk, Market Risk and Operational risk and assessed the impact on capital adequacy & profitability. For skill development in Risk Management area, the Bank also nominates its officers on regular basis for various trainings/seminars on Risk Management conducted by reputed institutions like CAFRAL, NIBM, IBA, IDRBT, CAB etc.
PRIORITY SECTOR ADVANCES:
Banks lending to the Priority Sector has reached a level of Rs35406 crore as at 31stMarch 2019 which is 50.20 % of ANBC against the stipulated target of 40%. Bank has given special thrust on financing Small & Marginal Farmers, Micro Enterprise segment under MSME apart from exploring other potential avenues of increasing PRISEC advances like SHG credit linkage, KCC, financing to Small Tea Growers, financing Food & Agro Processing Units, financing large size Dairy & Poultry units, vegetable and flower production under controlled condition (Poly House), Plantation etc.
Agriculture Lending:
Bank has disbursed Rs 4040 crore during the FY 2018-19 against a target of Rs 6417 crore recording an achievement of target to the tune of 63%. Lending to Agriculture Sector stands at Rs13258 crore as on 31st March 2019, which is 18.80 % of ANBC against the stipulated target of 18 % of ANBC. Lending to Small & Marginal Farmers stands at Rs 7108 crore, which is 10.08 % of ANBC against the stipulated target of 8% of ANBC for the year 2018-19.
Lending to Weaker Section:
Lending to weaker section reached to Rs10443 crore as on 31 March 2019 which is 14.81% of ANBC against the stipulated target of 10%.
Lending to Minority Community:
Banks lending to Minority Communities reached to Rs 5331 crore as at end of March 2019 which is 15.05 % of PSL conforming to the stipulation.
Kisan Credit Card:
Bank has organized several special camps and one contest in the name of "Kishan Sanjog Aviyan" from 01.12.2018 to 30.03.2019 for issuance of Kisan Credit Cards to bring more number of new farmers under KCC net as per revised scheme. Bank has disbursed 19995 fresh KCCs during 2018-19 with credit limits of Rs150 crore. Total number of outstanding KCCs as on 31st March 2019 stands at 595828 with aggregate outstanding balance of Rs 3042 crore. In line with the Government guidelines on issuance of Rupay based ATM enabled cards to all the KCC holders, Bank has issued 5.68 lakh ATM cards to the KCC holders (excluding the NPA KCCs) till 31.03.2019 achieving the target of full conversion of entire operative KCCs to RUPAY KCC within the time frame set by the Government.
Self Help Group:
Bank has credit linkages with 121427 SHGs with an outstanding balance of Rs1095 crore as on 31st March 2019. Bank has been implementing NRLM programme for SHGs by providing initial credit limit of Rs1.50 lakh on 1st grading of SHGs as per the decision of SLBC, West Bengal. Bank has started participating in Community Based Recovery Mechanism (CBRM) with the assistance from State Rural Livelihood Mission (SRLM) which has placed Bank Sakhi/ Bank Mitra at the branches.
Bank has been appreciated by MoRD, GOI for outstanding performance by way of exceeding the targets set under the scheme for the FY 2018-19.
Corporate Social Responsibility:
As part of corporate social responsibility, Bank has undertaken activities under the programme through United Bank Socio-Economic Development Foundation (UBSEDF) as mentioned here under.
United Bank Rural Self-Employment Training Institute (UBRSETI):
Bank has so far set up 16 RSETIs in the states of West Bengal (6), Assam (8) and Tripura (2) to impart training to the potential entrepreneurs from the financially weak sections of the society. RSETIs have been actively engaged themselves in number of special training programmes such as VCI under SHG mode, Agriculture and Allied Activities, other employment generation programmes and Govt. programmes like PMEGP, Skill Development etc.
During the FY 2018-19, these institutes have imparted training to 9853 rural youths/women, mostly from weaker sections, against the target of 9450 candidates, of which 42% trainees have been settled by establishing own economic venture. These institutes are providing post training hand holding support to the trainees including arrangement of loan from our bank branches to enable them to set up their own ventures.
FLCC:
Bank has also set up 38 Financial Literacy Centre (FLCs) in the states of West Bengal, Assam, Tripura and Manipur to extend financial literacy and credit counseling services to the poorer section of the society. In the Financial Year 2018-19, these FLCs have conducted regular outreach programmes which include Outdoor Activities for imparting financial literacy.
United Bank Socio-Economic Development Foundation (UBSEDF):
United Bank Socio Economic Development Foundation (UBSEDF) was established on 30th March 2007 with the objective of promoting and carrying out social and economic developmental activities and rendering assistance to weaker and under privileged section of the society in terms of decision taken by the Board of Directors of the Bank. Bank has extended financial assistance in 93 various welfare activities involving a total sum of Rs 327.43 Lakh towards its CSR activities till 31.03.2019. During the financial year 2018-19, focus was on extending assistance to the proposals under Health care (specially for senior citizens and girl students), Library room construction, distribution of e-slates, blankets and vehicle for social activities and other social activities concerning general public. In the current year, Bank has disbursed Rs 30.28 Lakh for 5 projects for implementation by the respective organizations towards cause of the society.
Policy Matters:
The Dept. initiates and implements all policies relating to Priority sector, rural and agricultural credit portfolio and issues circulars thereof. It also administers the funds invested/ extended in RIDF and IBPC route and implements interest and incentive subvention schemes for different categories of borrowers under production credit. Besides, the dept. has the responsibilities of implementation of PMFBY and other security schemes concerning the agriculturists linked to the Bank through credit.
MSME:
During FY 2018-19 MSME advances of the Bank increased to Rs 12522 Crore as on 31-03-2019 from Rs. Rs 11852 Crore as on 31-03-2018. Considering the overall credit scenario prevailing in 2018-19, Y-o-Y growth in MSME portfolio of the Bank of 5.65% may be termed as reasonable.
MSME being one of the thrust areas of lending of the Bank, following initiatives have been undertaken to give a boost to MSME portfolio of the Bank:-a Bank registered itself with TReDS (Trade Receivables electronic Discount System) platform and started the Business Operation by factoring of Invoices.
• Several MSME customer meets have been held in different parts of the country in presence of top executives to promote MSME business of the Bank during MSME outreach programme.
• Branch Managers have been provided training on lending to MSME to maintain the quality of MSME portfolio.
• Bank has also encouraged collateral free loans to MSE sector up to Rs 10.00 lac under MUDRA category and above Rs10.00 lac up to Rs 200 lac under CGTMSE guarantee coverage.
• The Bank has implemented "Stand up India" Scheme by providing credit to target group SC/ST and women entrepreneurs in true spirit.
• The Bank started 10 MSME verticals to cater to the need of the MSMEs and boost the credit flow to this sector to speed up sanction of loans to MSME. 15 new MSME verticals started functioning w.e.f. 07.05.2019 at other business centers. With this the total number of MSME verticals stand at 25.
• Bank has started Co-origination of loans with SREI equipment finance Limited for lending to priority sector as per RBI guidelines.
LEAD BANK DIVISION AND STATE LEVEL BANKERS COMMITTEE:
The Lead Bank Scheme was introduced by Reserve Bank of India in December 1969. The Lead Bank Scheme envisages assignment of lead bank responsibilities to individual banks (both in public sector and private sector) for the districts allotted to the respective banks. The lead banks will strive to promote inclusive credit growth in consonance with national goals through concerted effort of member banks .
The Bank is the Convener of State Level Bankers Committee (SLBC) in the State of West Bengal and Tripura. It has assumed Lead Bank responsibility in 43 districts spread over 4 states comprising of 11 Districts in West Bengal, 16 Districts in Assam, 8 Districts in Manipur and 8
Districts in Tripura.
As Lead Bank in the States of West Bengal & Tripura, the bank has been actively involved in formulation and finalization of Annual Credit Plans
(ACP) for both the States and has been taking up suitable action plans for implementation of different socio economic activities, Government
Schemes etc. apart from maintaining close liaison with Govt of India, Reserve Bank of India, NABARD and State Government Authorities. SLBC was also actively involved with the major GOI initiatives, namely, Gram Swaraj Abhiyan and MSME Support & Outreach programme in both the States during the year. The Lead District Managers are similarly involved in preparation of District Credit Plans and implementation of the same at Block level.
SLBC meetings for performance review of the branches are regularly held on quarterly basis. The 144th SLBC meeting for West Bengal was held on 12-03-2019 while the 128th SLBC meeting for Tripura was held on 15-03-2019. The SLBC meeting for the West Bengal was held under the Co-Chairmanship of MD & CEO of Bank along with Addn Chief Secretary ,Finance while MD & CEO along with Chief Secretary Co-Chaired the meeting for Tripura. The Honble Finance Minister of GoWB and Honble Chief Manager of Tripura also attended respective SLBC meetings twice during the financial year.
As SLBC Convener for the States of West Bengal and Tripura, United Bank of India is responsible for monitoring successful implementation of Annual credit Plan, different Government Sponsored Schemes viz DAY-NRLM, DAY-NULM, Pradhan Manti Mudra Yojona, Stand Up India, Social Security Schemes such as Pradhan Mantri Jeevan Jyoti Bima Yojona, Pradhan Mantri Suraksha Bima Yojona and Atal Pension Yojona.
Performance of the Bank in SHG Bank linkage was noted at different fora. Besides, the Bank was instrumental in setting up of Aadhar Enrolment
Centers at different Bank Branches in both the States and also helped in spreading digital banking through various Financial Literacy Programmes. SLBC desk has been instrumental in opening of Banking Outlets in Unbanked Rural Centers (URC) in line with the guidelines of RBI as well as DFS. In 2018-19, Banks have opened Banking Outlets in 47 out of 72 URCs in West Bengal as identified through a process of survey by the Lead District Managers. Similar efforts have also been undertaken for the State of Tripura by SLBC. The latest landmark decision taken by the SLBC, West Bengal was formulating a modality and allowing procurement of potatoes by the State
Govt. at a pre-determined price from the farmers who were forced to sell the potatoes at distressed price due to bumper production in the season
2018-19. The potatoes so procured were stored into the Cold Stores by earmarking 15% of the space of all cold stores of the State for this purpose. The action so taken led to automatic adjustment of the price of the potatoes to the cheer of the producer farmers.
FINANCIAL INCLUSION:
With the evolution of digital payment and mobile technology there are means now to deliver advanced products to the hitherto unbanked population. Fintech is changing the face of financial inclusion at an unprecedented pace. This in conjunction with large network of 4252 Bank
Mitras established across 13381 un-banked villages equipped with the latest and best of technology has enabled the Bank to deliver various banking services to the excluded population right at their door step.
The highlights of achievements for implementation of Financial Inclusion and Pradhan Mantri Jan DhanYojana (PMJDY) during the F.Y. ended 2018-19 are enumerated hereunder:
• The Bank Mitra mobilized SB deposits grew from Rs 1365.66 Crore to Rs 1856.41 Crore during the FY 2018-19, thereby registering a growth of over Rs 490.75 Crore during the period (35.94% growth Y-o-Y). The number of SBFIS accounts grew from 103.37 Lakh to 113.1 Lakh in the same period thereby registering a growth of 9.45% Y-o-Y.
• FI Recurring Deposit (RDFIS) scheme registered a growth of 233.95% in terms of numbers (106485 accounts as on 31.03.2019) and 154.78% in terms of amount (Rs 1416.39 Lakh as on 31.03.2019).
• The total sanctions under United JLG Micro Finance increased to Rs 434.84 Crore as on 31.03.2019 (a growth of 53.61% Y-o-Y) with negligible NPAs.
• Bank focused on the newly launched "United Samriddhi" scheme under which small loans were given to 8002 individuals and the portfolio increased from Rs 45.69 Crore as on 31.03.2018 to Rs 86.33 Crore as on 31.03.2019. Bank has also launched new variants of "United Samriddhi" scheme in new geographical areas with focus on specific MSME clusters.
• Bank made steady progress under the flagship PMJDY scheme wherein the number of accounts increased to 1.30 Crore as on 31.03.2019 a Net registrations under Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) increased to 4.48. Lakh as on 31.03.2019 where as registrations under Pradhan Mantri Suraksha Bima Yojana (PMSBY) rose to 26.29 Lakh as on 31.03.2019. Out of the 2273 claims lodged by the Bank with LIC under PMJJBY, 2063 were settled as on 31.03.2019 and in case of PMSBY, 116 out of 314 claims were settled by NIC.
• Under Atal Pension Yojna (APY), the net registrations stood at 212304 as on 31.03.2019.
• Aadhaar has been seeded in 136.14 Lakh operative CASA accounts as on 31.03.2019 (up from 132.95 Lakh as on 31.03.2018). Further, the number of Aadhaar authenticated through UIDAIs CIDR stood at 117.84 Lakh as on 31.03.2019, which is one of the highest in the industry. a Bank also launched BHIM Aadhaar Pay merchant POS during the financial year and had a Bank entered into the field of Aadhaar Enrolment and Update as Registrar to UIDAI and implemented Aadhaar Enrollment Centers at 297 branches of Bank and RRBs as on 31.03.2019. Bank has trained and completed certification of over 515 individuals for acting as Aadhaar Enrolment Operators and Supervisors.
ORGANIZATION & SUPPORT SERVICES: Branch Network:
During the year 2018-19, the Bank has opened a Retail Hub at Vesu (Surat) on 23.10.2018 and five SAMB (Stressed Asset Management Branch) were opened and Penlong Branch was opened on 25.06.2018.
Branches & Offices Opened during the period 01.04.2018 to 31.03.2019
| Sl. Name of Branch / No Office | Region | State | Date of Opening | Type of Branch/Office |
| 1 Penlong | North Bengal | West Bengal | 25.06.2018 | General Branch |
| 2 SAMB Guwahati | Guwahati | Assam | 25.07.2018 | SAMB |
| 3 SAMB Siliguri | North bengal | West Bengal | 27.07.2018 | SAMB |
| 4 SAMB Ranchi | Jharkhand | Jharkhand | 27.07.2018 | SAMB |
| 5 SAMB Cuttak | Bhubaneswar | Odisha | 30.07.2018 | SAMB |
| 6 SAMB Chennai | Southern | Tamilnadu | 19.09.2018 | SAMB |
| 7 Retail Hub VESU (Surat) | Ahmedabad | Gujrat | 23.10.2018 | Retail Hub |
Bank has sought RBIs prior permission for opening 250 General Branches and 39 branches in Unbanked Villages during 2018-19. However, RBI has yet to accord permission for opening new branches on account of PCA.
Out of total 2055 branches as on 31.03.2019, 902 (43.89 %) are located in 85 Minority Concentration Districts (MCDs) throughout the country. In order to streamline business activity and to curtail cost, the Bank had undertaken the process of rationalization / consolidation of branch network during the year 2018-19 and the bank has merged 9 branches during the year.
Branches & Offices Merged/ Closed during the period 01.04.2018 to 31.03.2019
| Sl. No Branch Merged | Sol ID | Merged with | Region | Sol ID | Date of Merger |
| 01 Sashibhusan Dey Street | 0479 | Koley Market | KolkataSouth | 0075 | 14.04.2018 |
| 02 Lohapatty | 0110 | Posta | Kolkata South | 0556 | 15.04.2018 |
| 03 Survey Park | 1562 | Santoshpur | Behala | 0146 | 22.04.2018 |
| 04 Syed Amir Ali Avenue | 0674 | Park Circus | Kolkata South | 0066 | 28.04.2018 |
| 05 J. N Road | 0668 | New Market | Kolkata South | 0107 | 29.04.2018 |
| 06 Muktaram Babu Street (Kol North) | 0672 | Jorasanko | KolkataSouth | 0080 | 06.05.2018 |
| 07 Shyampukur | 0871 | Bagbazar | Kolkata North | 0090 | 12.05.2018. |
| 08 Sukanta More | 2105 | Netaji Market | Malda | 0678 | 13.05.2018 |
| 09 Hiland Park (Behala R.O) | 2211 | Peerless Hospital | Kolkata South | 1513 | 29.05.2018 |
As on 31.03.2019 the total number of branches/ offices of the Bank stands at 2055.Besides the Bank has 36 Regional Offices, 3 Staff Training Centres, 5 Extension Counters, 3 Link offices and 2 Overseas Representative Offices at Dhaka in Bangladesh andYangon in Myanmar.
Population group-wise Composition of total Branch/office Network:
| Location | Number of Branches (% of total) |
|
| 31.03.2018 | 31.03.2019 | |
| Metropolitan | 375 (18.23%) | 372 (18.10%) |
| Urban | 481 (23.38 %) | 481 (23.41%) |
| Semi-Urban | 424 (20.62%) | 424 (20.63%) |
| Rural | 777 (37.77%) | 778 (37.86%) |
| Total | 2057 | 2055 |
Geographical location-wise Branch Network:
| Location | Number of Branches (% of total) |
|
| 31.03.2018 | 31.03.2019 | |
| Eastern Region | 1182 (57.46%) | 1176 (57.23%) |
| North Eastern Region | 364 (17.70%) | 365 (17.76%) |
| Western Region | 88 (4.28%) | 90 (4.38%) |
| Northern Region | 126 (6.13%) | 126 (6.13%) |
| Southern Region | 139 (6.76%) | 140 (6.82%) |
| Central Region | 158 (7.67%) | 158 (7.69%) |
| Total | 2057 | 2055 |
The Bank has 246 specialized branches, catering to the specific clientele segment.
| Categories of Specialised Branches | 31.03.2019 |
| 1. MSME | 180 |
| 2. Asset Recovery Management | 9 |
| 3. Retail Hub | 26 |
| 4. Corporate Finance Branch | 4 |
| 5. Service Branch | 19 |
| 6. Women Branch | 4 |
| 7. Treasury Branch | 1 |
| 8. Central Pension Processing Centre | 1 |
| 9. Cash Management Service Hub | 1 |
| 10. Inward cheques Processing centre | 1 |
| Total | 246 |
Information Technology:
All the branches of the Bank are covered under Core Banking System and various other surround applications such as Human Resources
Management System, Government Business Module, Asset Liability Management, Anti Money Laundering and Lending Automation Processing
System etc have also been implemented to facilitate better customer service and effective management. The facility of interbank remittance through RTGS and NEFT is available at all the branches of the Bank. This facility is also available through our internet banking and mobile banking platform. The Bank also offers cross border remittance through SWIFT network at 1 ‘A Category AD Branch and 41 ‘B Category AD Branches. The Core Banking System has also been integrated with SFMS platform to offer inland Letter of Credit (LC) and inland Bank Guarantee operation using Straight Thorough Processing (STP). To prevent incidences of fraud, Biometric Authentication System has been implemented across all its branches for accessing Core Banking System.
The Bank has revamped its corporate network architecture to next generation MPLS technology and also upgraded network bandwidth, for high availability & better performance. Bank has deployed VSATs with dedicated bandwidth and High Speed Data Connectivity using 3G as back up connectivity at Branches to provide network connectivity in the event of cable cut. Bank is also in the process of implementing secondary MPLS connectivity in order to provide seamless customer services in the event of outage of primary link and vice versa.
The Bank conducts Information Security (IS) audit for its Core Banking application, surround applications and other infrastructure at the Data
Centre. The IS audit also includes VAPT (Vulnerability Assessment & Penetration Testing) for public facing applications at certain intervals.
Periodic DR (Disaster Recovery) drill is also conducted as part of Business Continuity Plan (BCP). As part of our other technology initiatives, the following systems have been put in place.
Centralized Payment Hub solution has been implemented to process all transactions initiated through NACH and APBS platform with host to host connectivity of NPCI. Mandate Management Services are also enabled in this platform. In future, all corporate Collection and Payment services and IMPS gateway will be integrated to this centralized hub.
The Bank has boarded Public Fund Management Services (PFMS) platform and disbursing DBT payments for various sponsored schemes of Central and State Governments. Additionally, Departmental Ministerial Accounts for two ministries are also being handled in this platform.
As a part of Green initiative, Bank has implemented Board Information System (BIS) for conducting Board level meetings in paperless mode. All agenda and minutes of various Board level committees are uploaded in this portal.
The MIS solution has been revamped with a new solution and architecture for easy and quick availability of requisite information. Regulatory reports are also being automated through this system.
The Bank has an intranet portal which is used extensively for information sharing, knowledge management and online examinations.
Self Service Kiosks to offer services like Passbook printing, Cash deposit and Cheque deposit have been installed at selected branches. Bank has also introduced electronic Passbook (United e-Passbook) facility for the customers as a mobile application to view account transactions. Bank has deployed some of the next generation tools to prevent various kinds of cyber attacks and engaged professional agencies to provide Anti-
Phishing, Anti-Pharming, Anti-Trojan and Anti-Malware Managed Services.
Bank has implemented state of the art Security Operations Centre (SOC) which provides centralized view of Information Security status and command centre for IS Security operations.
Bank is continuously upgrading its technology and information security products with the aim to provide better, seamless and safe banking experience to its esteemed customers.
Information security:
Bank is continuously upgrading its technology and information security products with the aim to provide better, seamless and safe banking experience to its esteemed customers.
Bank has implemented state of the art Security Operations Centre (SOC) which provides centralized view of Information Security status and command centre for IS Security operations.
In this financial year, Bank have deployed/refreshed various technologies to enhance Cyber Security posture of the Bank. Along with internal control system, United Perimeter Shield has been deployed to further strengthen to defence to prevent various Internet based attacks. Based on above work, Bank had participated in an award program conducted by The International Council of Electronic Commerce Consultants (EC-Council) India. Banks project was shortlisted and awarded on Excellence in IT Infrastructure (Network Security Project). Award was received by the Bank during a ceremony on March 26, 2019, in Mumbai.
United Bank of India always pledges to cater secured banking services to its customers.
Centralized Payment HUB:
The Bank has set up a Centralised Payment Hub (CPH) at Head Office to handle the enormous volume of e-transactions in a secured and reliable manner. The Centralised Payment HUB has started its operation w.e.f. 3.11.2014.
NACH SERVICES:
The department is catering the following services:-
a) NACH Debit
b) NACH Credit c) APBS (Aadhar Payment Bridge System)
d) Mandate Management System of NPCI as Destination Bank e) Mandate Management System of NPCI as Sponsor Bank
f) DBTL (Direct Benefit Transfer to LPG Customers) & DBT(Direct Benefit Transfer)
g) ECS Debit as Destination Bank h) Digidhan Payment
i) Reconciliation of all Settlement Accounts, RBI Accounts, 4 RRB Accounts, Service Branch Accounts, Payment Gateway System Pool Accounts, etc. related to NACH inward & outward transactions.
j) BHIM Incentive Payment k) Affecting Income & Expenditure to P/L Accounts after accounting for GST.
l) Generation & presentation of Invoice related to all products of NACH to different Banks.
CMS SERVICES:
i) CMS Payment Services a) Corporate Bulk Payment.
ii) CMS Collection Services a) Corporate Mandate Based Direct Debit Service b) Corporate cash Collection Service. iii) ASBA (Application Supported By Blocked Amount) a) Core ASBA b) Syndicate ASBA c) e-ASBA (through e-banking / Net banking platform) iv) Indo Nepal Remittance Service
HR Details:
The total staff strength comprises 52% officers, 28% clerks and 20% Sub-Staff. Women employees numbering 3283 constitute 23% of the Banks total staff strength.
To meet the emerging challenges in the banking sector, the importance of skill up gradation of all categories of employees was keenly felt and as a sequel to this, Bank initiated the following steps in arranging various training programs during the year 2018-19. i) In-House Training: The training courses organized by the Staff Training College, Kolkata and other four Training centers in which 4317 employees were given in house training. ii) External Training: During the period under review bank has roped in professional training institutes for imparting various training programmers & workshop in which 422 employees have been trained externally.
Customer Orientation:
The bank has taken several initiatives to remain customer friendly by providing prompt service, bringingindiversifiedtechnology supported products/ services, quickly responding to customer queries/ suggestions and redressal of customer complaints. The"code of commitment to customers" issued by BCSBI has been made available at the Banks website and also sent to all the Branches and Regional Offices across the country. For improving the quality of the customer service, atoll free contact facility at customer services Department is provided to facilitate the customers to represent their grievance/ suggestions.The toll free facility is available from 8am to 10 pm. For ATM related issues, a separate toll free contact facility at head office has been provided and is available 24*7.The bank has put in place online grievances redressal system through the banks website, where the customers can lodge and track the status of their complaints/suggestions.
In order to ensure quicker and non-discriminatory redressal of grievances, Bank has introduced a portal named Comprehensive Complaint Management System (CCMS) by leveraging technology. Under this system the complaint received by branches, Regional offices and departments at Head office, are acknowledged on real time basis and status of redressal / settlement is also uploaded on the portal till final redressal. Customer can also lodge complaint on the CCMS Portal directly which is automatically added to the outstanding database of CCMS by the system.
The Comprehensive Complaint Management System helps us to track the status of each complaint and to take a comprehensive look with regard to the total complaints received by the Bank during the period and status thereof. The necessary follow-up measures are immediately taken up for expeditious disposal of the complaints and grievances with concerned Branches/RO/Department at Head Office. The system enables the officials of the Customer Service Department to classify the nature of complaints with respect to the products and services to which the complaints are related. The analysis of data aims to help the Bank management to take appropriate action to improve service in the areas which are found deficient.
The complaints from various sources like those received through mails and by post etc. are also entered in the CCMS portal. The consolidation of complaints from all sources on the CCMS portal helps the management to identify the nature of complaints, areas from which maximum complaints are received and also to take account of the time taken for the redressal. Such analysis is aimed at improving the standard of customer service and identifying the areas where staff members are to be trained, modification of products and services are required and remedial actions are to be taken for strengthening of system.
As per recommendation of the Damodaran Committee setup by Reserve Bank of India, our Bank has appointed Internal Ombudsman with effect from 07/12/15 to enhance the customer confidence level.
To have direct feel of the quality of the customer service in the Kolkata based branches, incognito visits by the officials of Head Office are conducted which additionally cover several areas such as ambience, discipline, punctuality and matters related preventive vigilance to safeguard the interest of Bank and customers.
Besides to educate the young officers of the Bank about its products and service and to help them render quick and improved customer services online application titled "Quest" was started in June 2015.Quest is an application accessible to all members of award staff and officers of the Bank for clearing doubts related to banking operations, The queries are replied by the selected HO officials within a deadline of 24 hours. The process of questioning and answering has been going on since inception on regular basis and the response of the officials to quest is overwhelming and strongly positive.
In financial year 2018-19, customer complaints redressal percentage is 99% 1274 numbers of complaints remained outstanding at the end of year, out of which 10 numbers of complaints were outstanding for more than one month.
The ADC related complaints are resolved within the stipulated period. Out of 1058 Nos of complaints lodged in Government of India Portal (CPGRAM) for the financial year ending Mar2019,1034 Nos complaints got resolved and 24 Nos complaints remain pending for redressal as on 31/03/2019.
Internal Control:
Internal Audit of all the operational units of Bank is a continuous process to ensure effectiveness of internal control mechanism and to provide high quality counsel to management on the effectiveness of risk management and internal controls including regulatory compliance by the Bank.
The bank undertakes Risk Based Internal Audit (RBIA). The scope of RBIA shall encompass the examination and evaluation of the adequacy and effectiveness of the Banks system of internal control.
Organization structure of Audit & Inspection department comprises Audit Committee of the Board (ACB), Audit of Committee of Executives (ACE), Audit & Inspection Department (along with seven Regional Inspection Units (RIUs) reporting to Audit & Inspection Department, HO) and Regional Audit Committee of Executives. The team of internal Inspectors/External Auditors (CA Firms) at field level is continuously engaged in inspection of Branches /Offices of the Bank as per Board approved Audit & Inspection Policy, for evaluating the level of implementation and adherence to the prescribed procedures and norms, and for identification, measurement and mitigation of risk involved in different functional areas. In order to align with changing scenario of the Banking System and dynamic global economic environment, inspection process is updated and necessary changes are incorporated in Audit & Inspection policy of the Bank from time to time. To achieve these objectives, various types of Audits like Risk Based Internal Audit, Concurrent Audit, Credit Audit, Information System Audit, Snap Audit, Revenue Audit, Inspection of H.O. departments and Management Audit of Regional offices are conducted.
Risk Based Internal Audit (RBIA) of branches have been carried out to focus on effective Risk Management and internal controls in respect of areas of potential risk and for protecting the Bank from various risks. System based online RBIA has already been started since 1st November, 2016. During the year 2018-19 Risk Based Internal Audit of 1662 branches have been conducted against the target of 1645 branches. Concurrent audit is conceived as systematic examination of all financial transaction at a authenticity and due compliance with the internal systems, procedures and guidelines of the Bank. During the year 2018-19, Concurrent Audit of 548 branches have been completed covering total deposit of 50.09 %, total advance of 79.72 % of the Bank and the overall Banks business coverage of 60.36 % as on 31.03.2019.
Credit Audit has been undertaken as an effective monitoring tool by identifying the gaps in the credit delivery process at branches and suggesting ways to bridge the gaps and also monitoring the compliances. During the year 2018-19, Credit Audit has covered 60 % of the total credit portfolio as on 31st March, 2019 of the Bank.
Technology has augmented the scope, reach and coverage of banking through significant networking and availability of a wide variety of new delivery channels. With the increased technology adoption by Banks, the complexities within the IT environment have given rise to considerable technology related risks. The information System Audit of Banks IT infrastructure is being conducted to mitigate and effectively manage these technological risks.
Anti Money Laundering (AML) / Know Your Customer (KYC):
The Bank continues to take appropriate measures for strict adherence to KYC norms in case of all the customers and monitor transactions closely for implementation of AML (Anti Money Laundering) and KYC Standards.
Steps taken to ensure compliance of KYC/AML guidelines are as follows:
• The Bank has put in place an effective AML programme by establishing appropriate procedures and ensures its strict implementation. a Cash Transaction Reports (CTRs), Suspicious Transaction Reports (STRs), Non-Profit Organization Transaction Reports(NTRs), Cross Border Wire Transfer Report (CWTRs) and Counterfeit Currency Note Reports (CCRs) are filed with FIU-IND in prescribed formats within the time limits.
• The generation of daily alerts for offsite surveillance through our internal web-based application has been started and monitored by our AML Cell. At present, daily alerts are generated on 13 types of alert parameters.
• Numerous STRs on continuous basis and various reports as and when required by FIU-IND, Ministry of Finance was totally taken care by the AML Cell during the period of demonetization.
• Officially Valid Documents (OVDs) are being obtained from all the customers towards identity and address proof. These documents are being captured in CBS system.
• Risk categorization of all the customers and their profile updation is being done through the system.
• The Bank has completed the process of allotment of Unique Customer Identification Code (UCIC) to all individual customers on the basis of PAN, Passport and Aadhar number.
• Overall KYC compliance of our bank is more than 99%.
• Upload of KYC data in CKYCR portal has been started.
Security Arrangements:
The Bank has taken necessary steps to strengthen the security arrangement in branches by installing security gadgets from time to time in conformity to the guidelines issued by the Reserve Bank of India. With passage of time security arrangements at branches require review & further strengthening through additional coverage with modern electronic gadgets. Therefore, considering need of the time, additional security gadgets / services provided at our Banks branches are as follows:-
(a) Installation of CCTV - Security of Branches is being strengthened by installing CCTV surveillance system in phased manner. All the currency chest branches have already been equipped with CCTV system. Since 2009 to 2012 total 835 Branches, including Currency Chests, were equipped with CCTV surveillance system. Process of installation of CCTV system at 1143 Non-CC branches is in progress. On completion of project altogether 1978 CC & Non-CC Branches would be equipped with CCTV for round the clock surveillance.
(i) Head Office premise at United Tower is a high rise building consisting of Ground + 16 floors & Basement. Sensitive nature of offices of all Top Executives e.g. offices MD & CEO, EDs and GMs including Bank data Center, are situated in this building. In addition, approx.650 numbers of employees of different scales & categories are posted in Head Office. Therefore, considering the sensitive nature of offices, Data Center, high number of employees & hundreds of visitors effective security arrangements of Head Office building became of prime importance. Hence, in order to ensure proper control & surveillance all floors including ground floor is recently covered with CCTV system with installation of 113 numbers of Cameras.
(ii) Remaining branches & offices would also be equipped with CCTV surveillance system in due course of time in phased manner. (iii) As an additional safety measure all the Currency Chest branches within the jurisdiction of Kolkata Police have been brought under the Integrated Security Solution (ISS) which has a control monitor at Lalbazar Police Control Room (Kolkata) for live viewing of the activities inside the currency chests round the clock.
(b) Implementation of Clean Note Policy - In order to implement the Reserve Bank of India Clean note policy Non-CC branches are being equipped with (1+1) pocket Desk Top Authenticator cum Note Sorter to help the branch to identify the Forged Indian Currency Notes (FICN) at the counter itself. This will also enable the branches to sort the currency notes into issuable, non-issuable currency notes for redistribution of issuable notes amongst the customers and members of public at the counter itself & also through ATMs. Our 1153 numbers of Non- CC branches are already equipped with(1+1) pocket Desk Top Authenticator cum Sorter. Remaining 839 Non-CC branches would also be provided with (1+1) pocket Desk Top Authenticator cum Sorter in phased manner in due course of time.
(i) All 79 Currency Chests are already equipped with Heavy Duty Note Sorting Machines.
(ii) An in house software,SDMS (Security Data Management System), has been developed for real time reporting of the FICN Detection, Adjudication of soiled/ mutilated notes, distribution of coins & fresh currency notes related activities of the branches in compliance with the Reserve Bank of India guidelines.
(c) Cash Management of Branches - In house software is developed for close monitoring of day to day cash holding of the branches with regular MIS related to the excess cash management. Each day the excess cash holding of branches is auto generated through the system and an e-mail is triggered to each Regional Head with details of the excess cash holding branches and the amount of excess cash held, to facilitate the regional office to closely monitor the Excess cash position of each branch.
(d) In order to lift excess cash from the branches and also to feed cash to needy branches, remittance teams of private security agency (PSA) consisting of 01 cash van with driver, 02 armed guards and 01 custodian of cash has been hired for currency chest branches. Approval for deployment of remittance teams of PSA at 27 CC branches was obtained. By now 25 Cash remittance teams of (PSA) are deployed at 24 CC branches. Deployment of remaining PSA remittance teams at CC branches considering their requirement & financial viability is in process. (e) In order to regulate and monitor visitors to the Banks Head Office a Computerized Visitors Management System has been installed at the Main Entrance gate of the Head Office.
Premises:
• Acquisition of premises for Banks use on lease/rental basis, by outright purchase and by new construction, usually on leasehold land. a Construction on Banks freehold / long-term Lease hold premises.
• Refurbishment of Banks Lease hold / Rented premises.
• Construction/installation of Currency Chest and periodic issuance of fitness certificate thereof.
• Overhauling, general maintenance and annual maintenance of pumps, water purifiers, Water Treatment Plants, air-conditioners, generators, transformers, Central Air-conditioning Plants, lifts, solar plants etc.
• Shifting / Reconstruction of office furniture, partitions, LAN connections, Telephone Connections, Electrical connections etc.at Head Office.
• Shifting, acquisition of additional space, surrender, renewal of lease, revision of rent etc. in respect of Banks hired premises. Maintaining inventory of Banks hired premises, issuance of notices to landlords for renewal of lease, at the appropriate time and follow-up with regard to realization of rent from defaulting branches.
• Procurement of furniture & fixtures, etc. in H.O. and Banks own premises under the direct control of H.O.
• Matters relating to maintenance and disposal of non-banking assets.
• Annual Budgetary Planning of Capital and Revenue Expenditure related to premises.
• Co-ordinate and Convene the Expenditure Committee I & II meetings for recommendation of Capital & Revenue Expenditure under the Financial Discretionary Power of MD & CEO and ED respectively.
• Empanelment of Architects/ Consultants/ Contractors/ Vendors/ Suppliers.
• Revaluation of Banks own / freehold / Long term leasehold property (Land & Building) for Recapitalization. Payments of rates / taxes for Banks own / freehold / long term leasehold premises at Kolkata.
• Settlement of insurance claims in respect of Banks own / freehold / leasehold premises, installations, equipment, furniture and all other fixed assets dealt with by the department with the assistance of Corporate Accounts Department.
• Scrutiny and Noting of Discretionary Power exercised by Chief Regional Managers of the preceding month for Capital / Revenue Expenditure related to Premises.
• Maintenance of Inventory Register and charging of depreciation in respect of Banks own buildings, furniture, Office equipment, Electrical installations, Air Conditioners etc.of Banks own / long term lease hold premises.
• Functioning & Maintenance of Terrace Gardens at H.O. and Lawn Garden at UBI House.
• Preparation and Review of Premises Policy for Acquisition of Accommodation on Lease / Rental basis from time to time.
• Preparation and Review of Manual on Policy and Procedures for procurement of Goods and Services for Bank from time to time.
• Construction of Strong Rooms for Safe Deposit Lockers at branches.
• Carrying out and Implementation of energy and electrical audit recommendation in a phased manner.
• Matters relating to installation of EPABX, shifting of telephone lines, co-ordination and billing of corporate mobile connections and landline telephones, follow up for fault rectification for Telephones and other communication system and AMC issue(s), purchase, maintenance and servicing of Photocopier machinesat Head Office.
• Engagement/Renewal/Review of rent in respect of Residential Accommodations sought by Officers posted at Head Office.
Implementation of Official Language:
• With a view to implement the Official Language Policy of the Government,74Officerswere trained in regular Hindi courses of Praveen & Pragya at Head Office/Regions. Hindi workshops and Unicode based computer training in Hindi were organized for the officers & employees of the Bank in each quarter at the Staff Training College, Kolkata. The quarterly meetings of Official Language Implementation Committee of Head Office were held under the chairmanship of the Managing Director & CEO and Executive Directors. The different issues of in-house Hindi magazine of the Bank "United Darpan" were released during the year. Inspection of all the Regional Offices and departments of Head Office were carried out with regard to implementation of Official Language.
• Our Bank convened the regular meetings of TOLICs namely, Krishnagar, Purulia, Katihar and Hoogly as assigned to us by Department of Official Language, Ministry of Home Affairs, Govt. of India. a Hindi Day was observed on 14th Sept, 2018 by Head Office, Regional Offices and Branches of the bank. Our Head Office observed Hindi Week from 14th Sept, 2018 to 20th Sept, 2018 and during the week various Hindi competitions and seminar were organized.
• The third sub-committee of parliamentary committee on Official language visited our Indore Branch under Raipur Region and Margaon
Branch under Mumbai Region in the month of August, 2018 and March, 2019 respectively. The bank received appreciations by the committee for our better performance.
• Inspection of our New Delhi Region and Gurgaon Mehrauli Road Branch under New Delhi Region were carried out by Department of financial Services, Govt. of India.
• Our Head Office received third prize from the Town Official Language Implementation Committee (Bank), Kolkata for better performance in implementation of officiallanguage policy. Besides, different Regional offices like Meerut & New Delhi, and branches like, Kanpur, Faizabad, Haridwar, Deharadun, Agra and Bareily also bagged prizes from their respective TOLICs for their excellent implementation of Official Language policy.
• First time our Bank received a prize from Reserve Bank of India for publication of in-house Hindi magazine "United Darpan".
Regional Rural Banks (RRB):
• We have 4 sponsored Regional Rural Banks in 4 states-Bangiya Gramin Vikash Bank (BGVB) in West Bengal, Assam Gramin Vikash Bank
(AGVB) in Assam, Tripura Gramin Bank ( TGB) in Tripura and Manipur Rural Bank( MRB) in Manipur. The total network of branches of the four RRBs as on 31.03.2019 was 1174.
• Combined Total Business of the four RRBs as on 31.03.2019 was Rs 44405.90 core with Total Deposit of Rs 31725.91 crore & Total Advance of Rs 12679.99 crore. Combined Gross NPA was 26.30 % and combined Net Profit for the last FY was Rs 82.46 crore. BGVB & TGB registered
Net Profit ofRs 9.10 crore & Rs125.05 crore respectively and AGVB & MRB registered Net Loss of Rs 49.85 crore & Rs 1.84 crore respectively during the FY 2018-19. (The above position is based on unaudited figures).
• All the four RRBs are working on CBS platform and are NEFT, RTGS, PFMS, AEPS enabled. The RRBs are also offering various technology driven product & services like Rupay Card/ ATM / POS machines, CTS based clearing etc.
• It may be mentioned here that Langpi Dehangi Rural Bank (LDRB), an RRB sponsored by State Bank of India, was to be amalgamated with the Assam Gramin Vikash Bank (AGVB) under the sponsorship of our Bank w.e.f. the 1st of April 2019 as per Gazette Notification of the Govt of India dated 22nd February 2019 and the amalgamation has taken place accordingly on the 1st April 2019.
The LDRB was having a network of 59 branches and the business position of the LDRB as on 31.03.2019, based on unaudited figures was, Total Business Rs 1378.95 crore, Total Deposit Rs 889.76 crore, Total Advance Rs 489.19 crore, Gross NPA 2.28 % and Net Profit during the FY 2018-19 was Rs 15.31 crore.
United Demat:
The depository services to the Banks customers are provided on the CDSL and NSDL platform under the umbrella of "United Demat", which aims at providing hassle-free, fast and accurate transactions under depository environment. The benefits are:
• Easy and convenient way of holding securities
• Immediate transfer of securities without any stamp duty on transfer
• Safer than paper-shares (no chances of bad delivery, fake securities, delays, thefts etc. are eliminated) a Reduced paperwork on transfer of securities a Auto-credit into Demat account
• Expeditious credit of securities and fund resulting from corporate actions and distribution of corporate benefits;Online access through easiest and speedy a Periodic statement of holding and transaction
• Convenience of changing client account details including nomination as and when required hassle-free transmission.
• Direct credit of shares allotted in IPO in Demat Account and credit of Dividend in linked bank account.
• A single Demat account can hold investments in both Equity and Debt instruments. Even Mutual Fund Units, Sovereign Gold Bonds, Insurance
Policies etc can be held in Demat form in the same Demat Account.
Demat Services are made available touching all aspects of share trading. The Services offered are:
• Opening of Demat account
• Purchase and Sale of Securities
• Dematerialization & Rematerialization
• Destatementization & Restatementization / Redemption of Mutual Fund Unit
• Pledge / Unpledge / Hypothecation /Confiscation
• Freeze & Unfreeze
• Transfer, Transmission & Transposition
U-Connect - Banks Share Trading Services
United Bank of India facilitates share trading for its customers through product "U-Connect Trio" in association with Kotak Securities Limited. In this product, the client opens its Bank and Demat account with United Bank of India whereas the trading account is opened with Kotak Securities. The products are feature-rich with facilities of investment, trading, exposure, margin trading, funding, IPO applications through ASBA, systematic investment, placing aftermarket orders and future orders, all being made available at an extremely competitive pricing. The investors have flexibility of putting their trades online, offline, mobile app and through dealer. Apart from equities, investors can also trade in bonds, ETFs and MF through trading platform. The investors will also have access to the research reports and trading tips from the award winning research team.
DIGITAL BANKING: Mobile Banking New Services:
To improve service offering and enhance customer experience, mobile banking application has been revamped/ upgraded. The upgraded mobile banking app have the self on-boarding facility which attracts more customers and help in the growth of the channel. Apart from regular services like funds transfer, bill payment, IMPS, mobile recharge, cheque book request etc, following additional features have been added:
(a) Self On-boarding: Self on-boarding process require authentication through debit card and PIN or e-banking user-id and Password. In case the customer is not registered on debit card platform core-Banking system, then customer may get registered manually at branch.
(b) Biometric Application login: User will have the option to log-in into the application through either application PIN or registered finger biometric.
(c) Bharat QR: Customer can pay any on-line/offline merchant displaying Bharat QR by debiting to his/her account through linked debit card. (d) Card Services: Allows customer to set daily withdrawal limits, enable/disable international transaction and temporary/permanent blocking of debit cards.
(e) Account Statement: Customer can view / generate statement for a date range (maximumsixmonths),pre-definedperiod or desired number of last transactions. The same can also be fetched in customers registered e-mail ID.
(f) Bharat Bill Pay: Customer can pay bills to all merchants available on Bharat Bill pay system.
(g) Credit Card Payment: This service will enable the customer to pay Credit Card bills of various banks. (h) Debit card Pin generation: Customer can set / reset debit card PIN which is further authenticated by OTP.
(i) Availability of Locker: Customer can check the availability of lockers in any branch using mobile baking and apply for the same.
(j) Introduction of new Regional Language: With introduction of Odia & Malayalam language, mobile Banking is now available in 6 languages i.e English, Hindi, Bangla, Odia, Tamil & Malayalam.
(k) United Voice Assist (UVA): UVA is one of the innovative features in mobile banking where customer may avail banking services using voice based commands only. Presently Balance inquiry, Mini Statement , Last Transaction detail & cheque book request are available and more services are in the offing.
The UVA service is initially rolled out to android devices only.
(m) Facility of Mutual Funds: Customer may visit various mutual funds site from the app and purchase Mutual funds. (n) Request of Demat Account: Customer can place a request for demat account opening.
New Debit cards Launched
Bank has launched additional variant of debit cards under Master & VISA network. These cards are NFC (Near Field communication), which will enable customers to purchase by just placing the card near the swipe machine at merchant outlets.
Online Application of Debit Cards
Customers are now able to apply for any variant of debit cards online at no extra cost
Introduction of Cash @ POS at our Merchant Outlets
Bank has entered into Merchant Acquiring Business and has deployed around 5400 Point of Sale (PoS) terminals as on date. As part of our endeavour to improve digital transaction growth and provide value added services, Bank has introducing Cash @ POS services. Under this facility, Merchants having PoS terminals of our Bank may offer additional service of providing cash to cardholders by swiping the cards issued by any Bank under Rupay ,Visa and Master Card Network.
Introduction of Bharat QR at our Merchant Outlets
To acquire different segments/class of merchants specially the lower segment merchants who cannot afford to pay high monthly rentals for POS, Bank has introduced Quick Response (QR) based soft terminals namely Bharat QR and BHIM QR. This will enable the customers to make payments by scanning the static QR code. Bharat QR has the option to debit any variant of Credit/Debit Card or a VPA (UPI) linked to the account of thecustomer whereas BHIM QR will enable the customers to make payment only through linked VPA (UPI) account.
Introduction of United Gift Card (RuPay)
The Bank has introduced United Gift Card under RuPay network for the purpose of gifting on any occasion like birthdays, weddings, festivals, anniversaries, farewell etc. It was issued to limited branches on a pilot basis and will be rolled out gradually at all branches. The Gift card holders can spend the amount loaded on the card for purchases at retail stores and online shopping. The Gift cardholders also have the advantage of availing self-service at portal.
Replacement of Magnetic Stripe Card by Chip Based Cards
To ensure more secured card based transactions and also to comply with RBI directives, Bank had replaced all its active 35 lac magstripe based cards with EMV cards.
New Initiatives/services in Internet Banking
1. Online seeding of nomination details Internet Banking Users can now add / modify nominee details for accounts having mode of operations as self.
2. Implementation of online Locker Request- Internet Banking Users now search availability of lockers in their preferred branch and submit the request for locker online. Subsequently, Branch will get the lead and contact the customer for completing the necessary documentation and formalities.
Bank is presently having a total ATM network of 2017 & 5400 POS outlets. All the digital Banking channels viz: ATMS, debit cards, Internet / Mobiile banking, UPI etc are well accepted by all segment of our customers and as on date 71 % of the total banking transactions are through digital channels.
Compliance:
The Bank has set up a Compliance Department for identification of compliance issues, assessment and mitigation of Compliance Risks to ensure adherence of Risk Mitigation Plan prescribed by Reserve Bank of India in its Risk Based Supervisory Process.
Board of Directors of the Bank have approved Compliance Policy for the Bank. The policy covers compliance issues of areas like deposit & services, advances, KYC-AML, BCSBI Codes, Data Information Security compliance issues as identified and remedial measures taken Roles & Responsibilities as regards to compliance functions is defined for every department in the Bank. The following mechanism has been introduced to ensure compliance of Regulatory & Statutory issues .
• Self certification
• Random compliance testing of branches by Officials from Compliance Department, H.O.
• Compliance Testing of Branches by Designated Compliance Officers (DCO) at Regional Offices.
• Compliance of the direction issued by GoI /RBI / IBA from the functional departments of Head Office.
• Quarterly reporting through on line compliance system by Branches and Regional Officeswith details of compliance rules covering the important areas.
Under Corporate Governance, compliance status of the directions issued by GoI /RBI / IBA and other applicable provisions of law, rules & guidelines are reviewed periodically by Board Level Committees.
Awards/Accolades:
Reserve Bank of India has recognized the Hindi Griha Patrika of United Bank of India, "United Darpan" for its excellence:
Reserve Bank of India has recognized the Hindi Griha Patrika of United Bank of India, "United Darpan" for its excellence for the Financial Year 2016-17 with a trophy and certificate of appreciation. The award was given on 26.06.2018 at the Head Office of Reserve Bank of India.
United Bank of India wins Excellence in IT Infrastructure Award (Network Security Project):
United Bank of India won Excellence in IT Infrastructure Award (Network Security Project). The Bank has deployed various technologies to enhance Cyber Security posture of the Bank. Along with internal control system, United Perimeter Shield has been deployed to prevent various
Internet based attacks.
Based on above work, Bank had participated in an award program conducted by the International Council of Electronic Commerce Consultants (EC-Council) India. Banks project was shortlisted and awarded on Excellence in IT Infrastructure (Network Security Project). The award was received on on March 26, 2019.
Details of fraud committed:
During the financial year 2018-19, fraud committed by officers/ employees of the Bankamountsto Rs 19.09 lakh which has been duly reported to the concerned regulatory authority.
Corporate Social Responsibility:
The Bank undertakes activities under CSR through trust viz. United Bank Socio-Economic Development Foundation (UBSEDF). UBSEDF was established on March 30, 2007 with the objective of promoting and carrying out social and economic development activities and rendering assistance to weaker and under privileged sections of the society in terms of decision taken by the Board of Trustees. The Board of Trustees of UBSEDF comprises of the following members as on March 31, 2019 -
1. Shri Ashok Kumar Pradhan, Managing Director & Chief Executive Officer 2. Shri Sanjay Kumar, Executive Director 3. Sri Ajit Kumar Das, Executive Director 4. Sri Vinay Gandotra, General Manager (HR & FI) 5. Sri Mukti Ranjan Ray, General Manager (Priority Sector & LBD)
Till March 31, 2019, the Bank has extended financial assistance to 93 various welfare activities involving a total sum ofRs 327.43 lakhs. The focus has been on extending assistance to the activities under Health care, Education, Go-Green project, Soil Conservation, Social Welfare activities. In the year under review, the Bank has disbursed Rs 30.28 Lakh for implementation of 5 projects by the respective organizations towards cause of the society.
Dividend:
In view of the loss incurred, the Board of Directors has not recommended any dividend for financial year 2018-19.
Dividend Distribution Policy:
In terms of Regulation 43A of the SEBI (Listing Obligations and Disclosure Requirements), 2015, the Bank has formulated a Dividend Distribution
Policy governing criteria, quantum and circumstances governing distribution of dividend to its shareholders. The Policy is attached as Annexure
I and forms part of this Report and is also available on the Banks website at http://www.unitedbankofindia.com/uploads/Dividend_Distribution_
Policy.pdf
Directors Responsibility Statement:
In terms of Section 134(3)(c) of the Companies Act, 2013 (to the extent applicable), your Directors confirm that
(a) in the preparation of the Annual Accounts for the financial year ended March 31, 2019, the applicable accounting standards have been followed and there are no material departures;
(b) the Directors have selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Bank as at March 31, 2019 and the profit of the Bank for the year ended on that date;
(c) the Directors have taken proper and sufficient care in maintaining adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Bank and for preventing and detecting fraud and irregularities;
(d) the Annual Accounts have been prepared on a ‘going concern basis;
(e) the Directors have laid downinternalfinancialcontrols to be followed by the Bank and we consider such internal financial controls to be adequate and effectively operational; and
(f) the Directors have devised proper systems to ensure compliance with the provisions of all applicable laws and we consider such systems to be adequate and effectively operational.
Compliance of Secretarial Standards:
The Bank, a Body Corporate in terms of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 read with Nationalised
Banks (Management and Miscellaneous Provisions) Scheme, 1970, has complied with the Secretarial Standards issued by the Institute of Company Secretaries of India as applicable.
Secretarial Audit:
Pursuant to Regulation 24A of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (including any amendment thereto or modification thereof), the Bank has appointed M/s. T. Chatterjee & Associates, Practicing Company Secretaries to undertake the Secretarial Audit of the Bank for the financialyear 2018-19. The Secretarial AuditReportforthefinancialyear 2018-19 is attached as Annexure II and forms a part of this Report. The Secretarial Audit Report does not contain any qualification, reservation, adverse remark or disclaimer.
Employee Share Purchase Scheme:
With a view to motivate the potential and dynamic employees and reward and recognize the experienced hands as well as augment Banks equity capital, the Bank with the approval of the shareholders at the Extra-ordinary General Meeting held on February 27, 2018 has formulated a Scheme viz. United Bank of India Employee Share Purchase Scheme, 2018 (UBI-ESPS 2018/ Scheme) in accordance with the SEBI (Share Based Employee Benefits)Regulations,2014includinganyamendmenttheretoormodificationthereof (SEBI SBEB Regulations). UBI-ESPS 2018 enabled the Bank to grant up to a maximum of 5,00,00,000 equity shares in one or more tranches, to the ‘Eligible Employees of the Bank. The
Bank with the approval of the competent authority revised the lock-in requirements of the shares allotted under the Scheme in line with Regulation 22(2) of SEBI SBEB Regulations.
The Issue was open for subscription by the ‘Eligible Employees on and from July 30, 2018 till August 31, 2018. The price of shares under the Scheme was determined at a discount of 5% on the average of the weekly high and low of the closing prices of equity shares of the Bank as quoted on the Stock Exchanges recording higher volume of trading in Banks shares during the two weeks preceding the date of offer, i.e. July 30, 2018 rounded off to the nearest multiple of 5 paisa. The Bank on September 13, 2018 issued and allotted 2,92,02,589 equity shares of Face Value of Rs10/- each at an Issue Price of Rs10.55/- per equity share to the Eligible Employees of the Bank under the said Scheme. The applicable disclosures as stipulated under the SEBI SBEB Regulations read with relevant SEBI Circular dated June 16, 2015 pertaining to the said Issue is provided as Annexure III to this Report. Post allotment, and listing of the 2,92,02,589 Equity Shares issued under the UBI-ESPS 2018, the balance equity shares (i.e. 2,07,97,411 Equity Shares) not offered/ subscribed under the Scheme stand cancelled and UBI-ESPS 2018 stands terminated.
Pursuant to Regulation 13 of SEBI SBEB Regulations, Mookherjee Biswas & Pathak, Arun K. Agarwal & Associates, SBA Associates and Dinesh Jain & Associated, Chartered Accountants, Statutory Central Auditors of the Bank have certified that the UBI-ESPS 2018 have been implemented in accordance with the SEBI SBEB Regulations and the resolutionpassedbytheShareholdersinthisregard(Certificateannexed as Annexure IV to this Report).
Corporate Governance:
The report on Corporate Governance is covered in a separate section (Page 46) of this Annual Report.
Annexures forming part of this Report:
The Annexures referred to in this Report and other information which are required to be disclosed are annexed herewith and form part of this Report:
| Annexure | Particulars |
| I | Dividend Distribution Policy |
| II | Secretarial Audit Report |
| III | Details of UBI-ESPS 2018 |
| IV | Auditors Certificate on UBI-ESPS 2018 |
DIVIDEND DISTRIBUTION POLICY
1. PREAMBLE
The Dividend Distribution Policy of the United Bank of India (hereinafter referred to as ‘the Bank) is being framed as per Securities and Exchange Board of Indias Notification No. SEBI/LAD-NRO/GN/2016-17/008 dated July 8, 2016. The Bank being among the top 500 listed entities based on market capitalization is required to formulate the policy.
2. NAME
The Policy may be named as the United Bank of India Dividend Distribution Policy and shall come into effect from the date of adoption of the same by the Board of Directors of the Bank.
3. OBJECTIVE
The Bank, through this Policy would endeavor to maintain a consistent approach to dividend pay-out plans and to strike the right balance between the quantum of dividend paid and amount of profits retained in the business.
4. BASE DOCUMENTS
(a) The Banking Regulation Act 1949
(b) The Banking Companies (Acquisition & Transfer of Undertakings) Act 1970
(c) RBI Circular RBI/2004-05/451 DBOD.NO.BP.BC. 88 / 21.02.067 / 2004-05 dated 04.05.2005 (d) RBI Master Circular dated July 1, 2015 (e) Ministry of Finance Letter F.No.10/3/2010-BOA dated April 13, 2010 (f) Ministry of Finance Letter F.No.10/3/2010-BOA dated January 18, 2013 (g) SEBI (Listing Obligations & Disclosure Requirements) Regulations 2015 (h) United Bank of India (Shares & Meetings) Regulation 2010 (i) Secretarial Standard - 3 issued by the Institute of Company Secretaries of India on Dividend
5. BACKGROUND
(a) Dividends are the pay-outs that organisations make to their shareholders as a return on their investments. It is one of the simplest ways for companies to communicate financial well-being and shareholder value. Dividends send a clear and powerful message about future prospects and performance of an organisation.
(b) According to the generally accepted definition, "dividend" means the profit of an organisation, which is not retained in the business and is distributed among its shareholders in proportion to the amount paid-up on the shares held by them. Dividend also includes any interim dividend.
6. GENERAL POLICY OF THE BANK AS REGARDS DIVIDEND
(a) Dividends are declared by the Bank as per the guidelines issued from time to time by Reserve Bank of India (RBI) and Government of India (GoI). The Board of Directors (hereinafter referred to as ‘the Board) at its discretion, while approving the annual accounts in each financial year, may also recommend the dividend for approval of the shareholders after taking into account the free cash flow position, the profit earned during that year, the Capex requirements and applicable taxes. (b) Dividend, other than dividend on cumulative preference shares issued by the Bank if any, not declared in any financial year shall not accrue for payment in subsequent financial year.
(c) The Board shall have the absolute discretion, subject to the Reserve Bank of India (RBI) guidelines and Ministry of Finance (MoF) Notification/Direction, if any, to declare interim dividend in between the Annual General Meetings.
7. ELIGIBILITY CRITERIA FOR DECLARATION OF DIVIDEND
(a) As per the RBI Circular RBI/2004-05/451 DBOD.NO.BP.BC. 88 / 21.02.067 / 2004-05 dated 04.05.2005 read with RBI Master Circular dated July 1, 2015, the Bank shall comply with the following minimum prudential requirements to be eligible to declare dividends:- (b) CET 1 Ratio shall not be less than 6.125%.
(c) The Bank should have Capital to Risk weighted Assets Ratio (CRAR) of at least 10% for preceding two completed years and at least 10.25% for the accounting year for which it proposes to declare dividend (d) The Bank shall be in compliance with the provisions of Section 15 (Restrictions as to payment of dividend) and Section 17 (transfer sum not less than 20% of profit to reserve fund) of the Banking RegulationAct, 1949, prior to distribution of dividend.
(e) The Bank shall be in compliance with the prevailing regulations/guidelines issued by RBI, including creating adequate provisions for impairment of assets and staff retirement benefits, transfer of profits to Statutory Reserves, etc.
(f) The proposed dividend shall be payable out of the Current years profit.
(g) There shall not be explicit restrictions imposed by RBI on the Bank for declaration of dividends.
8. QUANTUM OF DIVIDEND PAYABLE
(a) If the eligibility criteria are fulfilled,the Bank may declare and pay dividend, subjecttothefollowing ceilings
| CET-1 ratio after including current yrs retained earnings | Minimum Capital Conservation Ratios | Payment by way of dividend/bonus |
| 5.5% - 6.125% | 100% | Nil |
| 6.125% - 6.75% | 80% | 20% |
| 6.75% - 7.375% | 60% | 40% |
| 7.375% - 8.0% | 40% | 60% |
| >8.0% | 0% | 100% |
(b) In case theprofits/income,the pay-out ratio shall be computed after excluding for relevantperiodincludesanyextra-ordinary such extra-ordinary items for reckoning compliance with the prudential pay-out ratio.
(c) The financial statements pertaining to the financial year for which the bank is declaring dividend should be free of any qualifications from the Statutory Auditors, which have an adverse bearing on the profit during that year. In case of any qualification net profit should be suitably adjusted while computing the dividend payout ratio.
(d) As per MoF Notification F. No. 10/3/2010 BOA, Bank shall pay a minimum dividend of 20% of paid-up capital or 20% of post-tax profits, whichever is higher for a financial year. In case the Bank is not able to pay the minimum dividend, as stated above, the Bank shall seek special permission from the Central Government for not paying dividend or paying dividend at a rate lesser than the minimum rate prescribed.
9. FACTORS DETERMINING DECLARATION OF DIVIDEND
The decision regarding dividend pay-out is an important decision as it determines the amount to be distributed among the shareholders and the amount of profit to be retained in business. The interest of the Organisation and all its stakeholders backdrop of following internal and external factors, while deliberating and deciding on the proposal on declaring dividends:- (a) EXTERNAL FACTORS i. STATE OF ECONOMY in case of uncertain or recessionary economic and business conditions, Board will endeavor to retain larger portion of profits to build up reserves to absorb future shocks. ii. CAPITAL MARKETS when the markets are favourable, dividend pay-out can be liberal. However, in case of unfavourable market conditions, Board may resort to a conservative dividend pay-out approach in order to conserve cash flows. iii. STATUTORY RESTRICTIONS The decision on pay-out of dividend shall be in accordance with regulatory restrictions imposed, if any.
(b) INTERNAL FACTORS i. Profits earned during the year ii. Interim dividend paid, if any iii. the Annual Financial Inspection findings by the Reserve Bank of India with regard to divergence in asset quality or provisioning etc. iv. the auditors qualifications pertaining to the statement of accounts v. the Basel III capital requirements vi. Business growth plans of the Bank for 5 years vii. Replacement requirements of capital assets viii. Fresh Investments or Additional investments in subsidiaries/associates of the Bank ix. Any other factor as may be deemed fit by the Board.
10. PARAMETERS FOR VARIOUS CLASSES OF SHARES
(a) The factors and parameters for declaration of dividend to different classes of shares shall be same as mentioned in Clause 9 above. The payment of dividend shall be based on the respective rights attached to each class of shares as per their terms of issue and guidelines as applicable.
(b) Dividend on Equity shares shall be paid out of current years profit only. Dividends are paid only after all legal and contractual obligations have been met and payments on senior capital instruments have been made. This means that there are no preferential distributions, including in respect of other elements classified as the highest quality issued capital.
11. DIVIDEND DISCRETION
(a) Dividend once declared becomes a debt to the Bank.
(b) The Bank shall have full discretion at all times to cancel distributions/payments.
(c) Cancellation of discretionary payments must not be an event of default.
(d) The Bank shall have full access to cancelled payments to meet obligations as they fall due.
(e) Cancellation of distribution/payments shall not impose restriction on the bank except in relation to distribution to shareholders.
(f) The instrument cannot have any credit sensitive coupon feature i.e. a dividend that is reset periodically based in whole or in part on the
Banks credit standing.
12. MANNER OF PAYMENT OF DIVIDEND
(a) Dividends shall be declared on a par share basis as a percentage of the face value of the shares.
(b) Stock Exchanges shall be notified at least 2 working days prior to the date of the meeting of the Board of Directors at which the recommendation of final dividend is to be considered, and shall be intimated within 30 minutes of the conclusion of the Board Meeting about the recommendation of dividend.
(c) The Board of Directors at its meeting shall recommend dividend, finalize the book closure/ record date, authorize opening of bank accounts, designate signatories for operating accounts/ issuing dividend warrants and engage such intermediaries as may be required in connection with the declaration and payment of Dividend.
(d) The dates of closure of the register of members and the share transfer register or the Record Date as the case shall be intimated to the Stock Exchanges at least 7 working days prior to the closure of register of members and share transfer book and published in an English newspaper having nationwide circulation and one Bengali newspaper.
(e) All share transfer requests received before the closure of the register of members/ Record Date shall be processed by the Registrar & Share Transfer Agent and approved by the Board/ Committee of the Board.
(f) The declaration of dividend shall be placed at the Annual General Meetings as an ordinary business agenda and approved by simple majority (ordinary resolution). (g) The shareholders cannot declare the final dividend at a rate higher than the one recommended by the Board, however, they may declare the final dividend at a rate lower than the rate recommended by the Board. (h) Once the Dividend is declared at the Annual General Meeting in respect of a financial year, the Bank shall not declare further dividend at an Extraordinary General Meeting in relation to the same financial year.
(i) The dividend declared for each financial year shall be transferred to separate bank accounts and the Bank shall ensure that the entire amount of dividend payable after payment of Dividend Distribution Tax is transferred to the designated account within five days after the declaration of dividend.
(j) The Bank shall make the necessary arrangements for transfer of the dividend amount to the shareholder by electronic modes and ensure dispatch of the dividend warrants within 30 days of declaration of dividend.
(k) The amount remaining unpaid or unclaimed shall be transferred to the Unpaid Dividend Account for the particular financial year within 7 days of expiry of the 30 days period.
(l) The Bank shall prepare a shareholder wise statement of unpaid dividend and upload the same on Banks website within 90 days of transferring to the Unpaid Dividend Account.
13. ADDITIONAL REQUIREMENTS FOR PAYMENT OF INTERIM DIVIDEND
(a) The Board at its meeting for declaring interim dividend must satisfy itself that the Banks financial position justifies The Interim Dividend shall be paid out of the surplus in the Profit & Loss Account and profit for the financial dividend is proposed to be declared. Interim Dividend shall not be paid out of the reserve fund of the Bank.
(b) The interim dividend shall not be declared in case the Bank has incurred net loss during the current financial year up to the end of the quarter immediately preceding the date of declaration of interim dividend.
(c) The interim dividend shall not be declared at a rate higher than the average rate of dividend declared by the Bank during immediately 3 preceding years.
(d) The Board of Directors at its meeting shall declare interim dividend, finalize the book closure/ record date, authorize opening of bank accounts, designate signatories for operating accounts/ issuing dividend warrants and engaging such intermediaries as may be required for declaration and payment of Dividend. The Bank shall deposit the amount of Interim Dividend within five days of declaration. (e) The interim dividend declared shall be confirmed at the next Annual General Meeting.
14. PREFERENCE DIVIDEND
(a) If preference shares have not been redeemed, then no Dividend should be declared until dividend on such preference shares is paid or the preference shares are redeemed.
(b) Preference shareholders should be paid dividend before dividend is paid to equity shareholders of the Bank.
(c) Dividend payable on Perpetual Non-cumulative Preference Shares (PNCPS) shall be paid out of the current years profit.
(d) In the case of Interim Dividend, while preference shareholders need not necessarily be paid dividend before interim dividend is paid to equity shareholders, the Board shall set aside such sum as would be necessary to pay dividend to preference shareholders at the contracted rate.
(e) Arrears of dividend on cumulative preference shares issued should be paid before paying any dividend.
15. TRANSFER OF UNPAID DIVIDEND TO INVESTORS EDUCATION & PROTECTION FUND
(a) Amount of dividend remaining unpaid or unclaimed for a period of 7 years from the date of transfer of such dividend to Unpaid Dividend
Account shall be transferred along with interest, if any, by the Bank to the Investors Education & Protection Fund (IEPF) established by the Central Government.
(b) The Bank shall file with the Ministry of Corporate Affairs (MCA) the details of unclaimed/unpaid dividend each year and the amount of unpaid/unclaimed dividends transferred to IEPF each year and shall maintain the details thereof.
16. CLAIMING FROM UNPAID DIVIDEND ACCOUNT
(a) The application for payment of dividend out of the Unpaid Dividend Account shall be accompanied by indemnity bond in prescribed amount where the amount of dividend is more than Rs.10,000/-, proof of identity, proof of residence, dividend warrant/letter, succession certificate/probate/letter of administration (in case of deceased person), provided that, the requirement of indemnity bond shall be dispensed with in case of state/central government, government company, public sector undertaking, or a public financial institution. (b) Unclaimed dividend transferred to IEPF shall be claimed by making an application to IEPF Authority.
17. REPORTING SYSTEM
(a) All dividends paid by the Bank on its equity shares and preference shares shall be reported in the Directors Report to the shareholders. (b) Details of dividend declared during the accounting year shall be reported to RBI as per the proforma furnished in Annex 2 to the RBI
Circular RBI/2004-05/451 DBOD.NO.BP.BC.88/ 21.02.067/2004-05 dated 04.05.2005. The report shall be furnished within a fortnight after declaration of dividends.
(c) All instances of non-payment of dividends shall be notified by the issuing banks to the Chief General Managers-in-Charge of Department of Banking Regulation and Department of Banking Supervision of RBI, Mumbai.
18. MANNER OF UTILIZATION OF RETAINED EARNINGS
The Board shall have the authority to retain the Banks earnings as may be in the opinion of the Board required for business expansion, improvement of capital adequacy, diversification or such other purposes as may be deemed fit by the Board for ensuring optimum utilization of available resources and enhancement of the shareholder value.
19. AUTHORITY TO ALLOW DEVIATIONS
(a) In case where any specific provision of this policy is in conflict with any direction, notification, guidelines of the Central Government and RBI, the said direction, notification, guidelines would prevail.
(b) The Board of Directors of the Bank shall be the competent authority to allow any deviation from this policy in the matter related to dividend. 20. IMPLEMENTATION
This Policy shall become effective from the date of its adoption by the Board and shall remain in force till the time it is not amended or revoked by the Board, or amendments in the relevant provisions of RBI, GOI, SEBI and other regulators, if any.
21. DISCLOSURE
This policy shall be uploaded on the website of the Bank, www.unitedbankofindia.com and a web link shall be provided in the Annual Report. The Bank shall update the Policy on its website as and when any change is made in the Policy.
2024, IIFL Securities Ltd. All Rights Reserved
Follow us on
ATTENTION INVESTORS
- Prevent Unauthorized Transactions in your demat / trading account Update your Mobile Number/ email Id with your stock broker / Depository Participant. Receive information of your transactions directly from Exchanges on your mobile / email at the end of day and alerts on your registered mobile for all debits and other important transactions in your demat account directly from NSDL/ CDSL on the same day." - Issued in the interest of investors.
- KYC is one time exercise while dealing in securities markets - once KYC is done through a SEBI registered intermediary (broker, DP, Mutual Fund etc.), you need not undergo the same process again when you approach another intermediary.
- No need to issue cheques by investors while subscribing to IPO. Just write the bank account number and sign in the application form to authorise your bank to make payment in case of allotment. No worries for refund as the money remains in investor's account."
www.indiainfoline.com is part of the IIFL Group, a leading financial services player and a diversified NBFC. The site provides comprehensive and real time information on Indian corporates, sectors, financial markets and economy. On the site we feature industry and political leaders, entrepreneurs, and trend setters. The research, personal finance and market tutorial sections are widely followed by students, academia, corporates and investors among others.
Risk Disclosure on Derivatives
- 9 out of 10 individual traders in equity Futures and Options Segment, incurred net losses.
- On an average, loss makers registered net trading loss close to Rs. 50,000.
- Over and above the net trading losses incurred, loss makers expended an additional 28% of net trading losses as transaction costs.
- Those making net trading profits, incurred between 15% to 50% of such profits as transaction cost.
Copyright © IIFL Securities Ltd. All rights Reserved.
Stock Broker SEBI Regn. No: INZ000164132, PMS SEBI Regn. No: INP000002213, IA SEBI Regn. No: INA000000623, SEBI RA Regn. No: INH000000248
We are ISO 27001:2013 Certified.
This certificate demonstrates that IIFL as an organization has defined and put in place best-practice information security processes.
IIFL Securities Support Whatsapp Number
+91-9892691696
+91-9892691696Download The App Now
MARKET
MUTUAL FUNDS
TRADING DOCUMENTATION
CALCULATOR
2024, IIFL Securities Ltd. All Rights Reserved
Follow us on
ATTENTION INVESTORS
- Prevent Unauthorized Transactions in your demat / trading account Update your Mobile Number/ email Id with your stock broker / Depository Participant. Receive information of your transactions directly from Exchanges on your mobile / email at the end of day and alerts on your registered mobile for all debits and other important transactions in your demat account directly from NSDL/ CDSL on the same day." - Issued in the interest of investors.
- KYC is one time exercise while dealing in securities markets - once KYC is done through a SEBI registered intermediary (broker, DP, Mutual Fund etc.), you need not undergo the same process again when you approach another intermediary.
- No need to issue cheques by investors while subscribing to IPO. Just write the bank account number and sign in the application form to authorise your bank to make payment in case of allotment. No worries for refund as the money remains in investor's account."
www.indiainfoline.com is part of the IIFL Group, a leading financial services player and a diversified NBFC. The site provides comprehensive and real time information on Indian corporates, sectors, financial markets and economy. On the site we feature industry and political leaders, entrepreneurs, and trend setters. The research, personal finance and market tutorial sections are widely followed by students, academia, corporates and investors among others.
Risk Disclosure on Derivatives
- 9 out of 10 individual traders in equity Futures and Options Segment, incurred net losses.
- On an average, loss makers registered net trading loss close to Rs. 50,000.
- Over and above the net trading losses incurred, loss makers expended an additional 28% of net trading losses as transaction costs.
- Those making net trading profits, incurred between 15% to 50% of such profits as transaction cost.
Copyright © IIFL Securities Ltd. All rights Reserved.
Stock Broker SEBI Regn. No: INZ000164132, PMS SEBI Regn. No: INP000002213, IA SEBI Regn. No: INA000000623, SEBI RA Regn. No: INH000000248
We are ISO 27001:2013 Certified.
This certificate demonstrates that IIFL as an organization has defined and put in place best-practice information security processes.