1. GLOBAL ECONOMY
According to IMF world Economic outlook, overall, global growth is projected to reach3.5% and 3.8% in 2015 and 2016 respectively. GDP Growth is projected to be stronger in2015 as compared to 2014. Economic Growth in the United States was stronger and averagingabout 4% annualized in the last three quarters of 2014. In Japan, due to weak consumptionand plummeting residential investment, economic growth in 2014 was close to zero. In theEuro area, economic conditions remain weak although some pick up in final quarter of 2014was observed, supported by lower crude prices, depreciation in the Euro and increase inbank lending. In China, activity has slowed over the second half of 2014 and first quarterof 2015 as investment demand lost pace and real estate sector weakened. The Russianeconomy slowed sharply due to falling oil prices and Western sanctions. The pace of globaltrade continues to be weighed down by both cyclical and structural factors and grew by3.1% in 2014.
Inflation continues to move downward, due to weak demand conditions and fallingcommodity prices. Since August, 2014, world energy prices and Brent Crude oil prices havebeen falling, going below $ 50 per barrel in January, 2015. All these developments havebrought down the global commodity Prices. Central Banks of most of the countries pursuedaccommodative monetary policies faced by disinflationary pressure and weak growth. Theinterest rates in US neared Zero, because of the Feds Bank Policy rate. EuropeanCentral Bank (ECB) began its asset purchase program since March 2014. China followed withdeposits and lending rate cuts in November 2014. Russia has cut its policy rates twice infirst quarter of 2015. Global financial market has been volatile since mid-2014, triggeredby the announcement of USs Federal bank on normalization of monetary policy.Political tensions in Europe especially in Greece, and lower oil prices have impactedinvestment. Low interest rate led to fall in the long term Govt. bond yields in globalfinancial market. Capital flows to emerging market economy has gone down in the secondhalf of 2015. The US dollar has gained against major currencies.
According to the advanced estimate of CSO (Central Statistical Office), the growth rateof GDP at constant 2011-12 market price is estimated to be 7.4 % in 2014-15. The growth ofgross value added (GVA) at basic prices for agriculture & allied sector, industrysector and services sector are estimated to be at 1.1 %, 5.9 % and 10.6 % respectively in2014-15. Headline inflation measured in terms of Wholesale Price Index (WPI) base year2004-05 has moderated during 2014-15 on the back of lower food and fuel prices. WPI foodinflation which remained high during 2013-14, moderated during 2014-15 following sharpcorrection in vegetable prices and moderation in prices of cereals, eggs, meat and fish.As fuel has larger weight in the WPI, the decline in fuel prices led to a sharperreduction in WPI. Inflation in manufacturing sector has remained within a narrow rangesince 2013-14. During 2014-15, the WPI inflation for all commodities averaged 2% ascompared to 6.0% in 2013-14. Retail inflation as measured by the CPI base year 2010 = 100had remained stubbornly sticky, around 9 -10 % during 2012-13 and 2013-14. CPI inflationhas also moderated significantly since second quarter of 2014-15. Moderation in inflationis observed in all the three major subgroups viz. Food, beverages andtobacco; Food& light, andOthers. As per the revised CPI new series with base year 2012, CPIinflation stood at 5.2 % for 2014-15. In 2014-15 Index of Industrial Production growth was2.8 % as compared to negative growth of last year.
Liquidity conditions have remained broadly balanced during 2014-15. The RBIsproactive liquidity management operations ensured that the call rates stayed range boundaround the policy rates, reducing day to day volatility. The market for Commercial Paperpicked up momentum during the second half of 2014-15. The Govt. securities (G-Sec) marketyields softened, barring some spike observed in second half of December 2014 due to theUkrainian crisis followed by the Russian currency crisis. The 10 year yield declined by 72basis points from 8.52 % at the end of September 2014 to 7.80% on March 31, 2015. Overall,financial markets traded on a bullish note during the second half of 2014-15 against theback drop of improved domestic fundamentals and a global risk. The rupee-US dollarexchange rate has remained broadly stable during the year due to huge inflow of FDI andFII in the equity and bond markets. Due to weak economic outlook in Europe and Japan, therupee has appreciated against the Euro and Yen in September 2014 vis--vis othercountrys currency. The rupee touched a low of Rs 63.75 per US dollar on 30thDecember, 2014 and a peak of Rs 58.43 per US dollar on 19th May, 2014. During March 2015,Rupee touched at Rs 62.45 against a US dollar. The global economic environment appearspoised for a change for the better, with the recent sharp fall in the international pricesof crude petroleum. This is expected to boost global aggregate demand along with a sharprecovery in the US economy in the face of gradual withdrawal from monetary accommodation.Indias merchandise imports declined by (-) 0.6 % in 2014-15, stood at $ 447.5billion and exports declined by (-) 1.2 %, reaching $ 310.5 billion. Trade deficit hasincreased to $ (-) 137.0 billion. Among the major economies with a CAD (Current AccountDeficit), India is the second largest foreign exchange reserve holder after Brazil.Indias foreign exchange reserves stood at $ 341.6 billion at the end of March 2015.CAD was 1.7 % of GDP in April December 2014.
Asset quality of Banks showed some signs of stress during the year. The gross NPA ofSCBs as a percentage of total gross advances increased to 4.5 % in September 2014 from 4.1% in March 2014. RBI has taken a number of steps to redress the NPA issue. Equity marketscontinued to do well during the year. The bench mark indices BSE Sensex and Nifty showed ageneral upward trend in the current year. Growth in Broad Money (M3) decelerated to 12.0 %in March 2015 from 13.8% during the corresponding period of previous year. Growth in bankcredit decelerated to 9.5 % in March 2015 from 13.9 % during the corresponding month ofpervious year. The growth of aggregate deposits with scheduled commercial banksdecelerated to 11.4 % in March 2015. Policy Rate was reduced by 25 basis points by RBI on3rd March 2015 from 7.75 to 7.50 %. At present the bank rate is 8.5%. The budget estimatesfor the fiscal deficit for 2015-16 is 3.9 % as compared to 4.1 % in 2014-15.
II. PERFORMANCE OF THE BANK 2014-15:
1. UCOs Delivery Channels: 1.1. BRICK and MORTAR Network:
The Bank has a geographically well spread branch network in India and abroad. The Bankhas 10 Circle Offices, 48 Zones and 3020 branches as on 31.3.2015, which includes fouroverseas branches, (two each in Singapore and Hong Kong). The Bank has two ExtensionCounters as of 31st March, 2015.
The Bank has strengthened its pan India network by opening 126 branches during the year2014-15 which takes the total number to 3020 as of 31st March, 2015.
| ||March, 11 ||March 12 ||March 13 ||March 14 ||March 15 |
|Branch ||2206 ||2394 ||2614 ||2894 ||3020 |
To have a better focus and monitoring over the performance of branches, the Bank hadopened three more Zones namely, Balasore, Bongaigaon and Kanpur in the year 2014-15. Ittakes the total number of Zones of the Bank from 45 in March, 2014 to 48 in March, 2015.
The population category-wise break-up of branches is given below.
1.2. Specialized Branches :
As of March, 2015, the Bank had 6 Flagship Corporate branches, 15 Mid- Corporatebranches, 23 Service branches, 7 Asset Management branches and one Integrated TreasuryManagement Branch at Mumbai. The Bank continues to have 29 Retail Loan Hubs and 2 SME Hubsas of 31st March, 2015. As at the end 31st March, 2015, the Bank had 78 City Back Offices.The Bank has a customer base of about 2.5 crore as on 31st March 2015.
1.3. Alternative Delivery Channels:
1.3.1. The Bank has joined National Financial Switch (NFS) which enables customersto access more number of ATMs across the country. As on 31.3.2015, Bank had 2096 ATMs outof which 1524 were onsite and 572 were offsite. Bank has been issuing VISA and RuPayenabled Debit cum ATM cards. Bank has issued 61,12,218 of Debit/ATM cards ason 31.3.2015 as compared to 41,52,965 cards as on March 2014 achieving an increase of47.18% over the previous year. The bank is issuing Rupay cards under financial inclusionand ATM enabled Kisan Cards linked to KCC acounts.
1.3.2. Internet banking facility is available to customers for utility billpayments, air and rail ticket booking, on line shopping, inter- bank and intra bank fundtransfer etc. Bank is also providing services like balance enquiry, account statement,transaction related SMS alerts, payment of indirect taxes, direct taxes and many otherbanking services. The total e-banking users as on 31.03.2015 are 384524, as against270228, as on 31.03.2014, registering a Y-O-Y increase of 42.30%.
1.3.3. The Bank has introduced Mobile Banking services during the year 2011-12,whereby customers can take advantage of conducting their banking transactions throughmobile phones. Through the mobile banking facility, customers are now performing bankingactivities like balance enquiry, account statement, mobile recharge, intra &inter-bank funds transfer with their mobile handset using SMS/GPRS modes of connection.M-banking users as on 31.03.2015 are 70534 as against 41803 as on 31.03.2014 recording anincrease of 68.73% Y-o-Y.
2. BUSINESS PROFILE:
The global business of the Bank grew from Rs 352697 crore in 2013-14 to Rs 366149 crorein 2014-15 registering an increase of 3.81%. Banks domestic Business rose by 2.36%from Rs 322959 crore in 2013-14 to Rs 330584 crore in 2014-15.
Global deposits of bank grew by 7.42% from Rs 199534 crore in 2013-14 to Rs 214337crore in 2014-15. Domestic deposits grew by 5.92% from Rs 182730 crore in 2013-14 to Rs193552 crore in 2014-15.
Global advances of the Bank stood at Rs 151812 crore as on 31.03.2015. Domesticadvances of the bank stood at Rs 137031 crore as on 31.03.2015. The global credit depositsratio stood at 70.83 in 2014-15 as compared to 76.76 last year.
The overseas business of the bank showed an increase of 19.60% and stood at Rs 35565crore as on 31st march 2015. The total deposits of the overseas branches increased from Rs16803crore as of March 2014 to Rs 20784 crore as of March 2015, there by showing anincrease of 23.69%.
Domestic CASA deposits of the bank increased from Rs 58884 crore in 2013-14 to Rs 62376crore in 2014-15 registering a growth of 5.93%. CASA deposits as a percentage to totaldomestic deposits stood at 32.23% as of 31.03.2015. The banks savings depositsreached Rs 36226 crore as of March 2015 compared to Rs 33530 crore, registering a growthof 8.04%. Current deposits stood at Rs 26149 crore as on 31st March 2015 compared to Rs25353 crore as on 31st March, 2014 showing an increase of 3.14%.
3. Employees Productivity
Business per employee of the Bank improved from Rs 15.28 crore as on March 31, 2014 toRs 15.51 crore as on 31st March 2015. Net Profit per employee is Rs 4.82 lac for the yearended 31 March, 2015 as against Rs 6.55 lac as of 31 March, 2014.
The Bank earned an operating Profit of Rs 4910 crore during the year 2014-15 as againstRs 4940 crore during the financial year 2013-14. Net profit of the Bank during 2014-15 isRs 1138 crore against Rs 1511 crore during 2013-14.
5. Income and Expenditure:
The Banks total income registered a growth of 9.27% from Rs 19550 crore in2013-14 to Rs 21363 Crore in 2014-15. The Banks interest income rose by 6.19% fromRs 18230 crore in 2013-14 to Rs 19359 crore in 2014-15. The non- Interest income of thebank improved by Rs 683 crore from Rs 1321 crore in 2013-14 to Rs 2004 crore in 2014-15.The interest expenditure of the bank increased by 13.36% from Rs 12171 crore in2013-14 to Rs 13797 crore as in 2014-15. Operating expenditure of the Bank increased by8.90% from Rs 2439 crore in 2013-14 to Rs 2656 crore in 2014-15. Net Interest Incomedeclined by 8.20% from Rs 6059 crore in 2013-14 to Rs 5562 crore in 2014-15.
6. Capital :
Net worth of the Bank has increased to Rs 11584.58 crore during the financial yearending 2014-15 from Rs 10284.89 crore in 2013-14. During the year, Bank has issued6,08,82,550 Equity Shares of Rs 10 each at a price of Rs 70.21 amounting to Rs 427.45crore to Life Insurance Corporation of India.
6.1. Capital Adequacy Ratio:
As per Basel III framework, the Banks Capital Adequacy Ratio of 12.17% as at31.03.2015 was higher than the regulatory requirement of 9%. Details of Capital Adequacyunder Basel-III framework are shown as under.
(in Rs crore)
|Particular ||31.03.2015 ||31.03.2014 |
| ||CRAR(%) ||Amount ||CRAR(%) ||Amount |
|Tier- I ||9.05 ||11431.59 ||8.71 ||10157.22 |
|Tier- II ||3.12 ||3944.71 ||3.97 ||4627.31 |
|Total Capital ||12.17 ||15376.29 ||12.68 ||14784.53 |
|Risk Weight assets || ||126980.39 ||- ||116636.78 |
7. TREASURY & INTERNATIONAL
Bank has been performing its Treasury & Investment Operations by keeping track ofthe macroeconomic scenario and market developments in accordance with the regulatoryguidelines issued by the Reserve Bank of India from time to time as also the Bank'sCorporate Investment Policy approved by the Board of Directors. In the changed scenario,where state of the art technology is providing cutting edge in Treasury & RiskManagement, the Bank has also embarked upon a globally deployable Integrated TreasuryManagement Solution for an effective and efficient way to optimize resource utilizationand maximize returns on investment and trading.
In order to mitigate risk and proper balance sheet management, bank has gone forinterest rate swap transactions. During the year 2014-15, Bank has experienced severemarket volatility and despite all odds the bank could significantly improve the yield onits Investment portfolio.
The global investments (Gross) of the Bank during the year 2014-15 grew by 2.16% fromRs 67769 crore as on 31.03.2014 to Rs 69231 crore as on 31.03.2015. The domesticinvestment grew by 2.41% from Rs 65799 crore as on 31.03.2014 to Rs 67385 crore as on31.03.2015. SLR investment registered a growth of 4.43% during the year 2014-15 touchingthe level of Rs 55368 crore compared to Rs 53017 crore in March 2014. Non SLR investment(domestic) registered a fall of 5.98% to reach a level of Rs 12017 crore from Rs 12782crore in 2013-14. The yield on domestic investment improved marginally from 7.79% as on31.03.2014 to 7.83 % as on 31.03.2015. Total investment income for 2014-15 stood at Rs6195 crore as against Rs 4386 crore in 2013-14.
7.1. Export Finance:
With 74 'B' Category Branches across India, UCO Bank is committed to actively cater tothe needs of its Exporters. Total Merchant Turnover of the Bank during the Financial Yearended March, 2015 stood at Rs 111555 crore which is 7.00 % higher than previous year.Bank's Export credit outstanding during 31st March, 2015 is Rs 2707.08 crore, registeringa growth of 7.45% over 31st March, 2014.
'UCO Bank,' is the sole Bank to facilitate bi-lateral trade with Iran by agreeing toreceive payment in INR for Iranian oil exports to India. Simultaneously, to boost exportsunder this Rupee Payment mechanism, 'UCO BANK' negotiated 552 export bills amounting to Rs3408 crore cumulative from April, 2014 to March, 2015. The Export Credit outstanding as of31st March, 2015 on account of Iran Trade is Rs 385 crore.
8. SOCIAL BANKING
8.1. Priority Sector Advances:
The Bank has been showing significant performance in lending to Priority Sector overthe years and has been effectively servicing the priority sector and agriculture sectorwith its vast network of rural and semi-urban branches.
As on 31.03.2015, the Priority Sector Advances of the Bank stood at Rs 53278 croreconstituting 36.38 % of Adjusted Net Bank Credit (ANBC).
8.1.1. Agriculture Advances:
Total Agriculture Advances of the Bank stood at Rs 19687 crore constituting 13.44% ofANBC. Direct Agriculture Credit stood at
Rs 13092 crore constituting 8.94 % of ANBC and Indirect Agriculture Credit stood at Rs6595 crore constituting 4.50% of ANBC. The Y-o-Y growth of total Agriculture Advances is18.30% and under Direct Agriculture, the growth is 17.25% respectively.
8.1.2. Micro, Small & Medium Enterprises (MSME):
Bank recognizes the important role of MSME in the economic development of the Countryand thereby supporting in generating employment opportunities in the Country. The advancesunder Micro& Small Enterprises (MSE) as on 31.03.2015 stood at Rs 25545 crore andunder Micro, Small & Medium Enterprises (MSME), the advances are Rs 29560 crore as of31st March, 2015.
8.1.3. Advances to Weaker Sections:
Advances to Weaker Section stood at Rs 15186 crore as of 31st March, 2015 constituting10.37% of Adjusted Net Bank Credit. The Y-o-Y growth of advances to Weaker Sections stoodat 6.05%.
8.1.4. Minority Community Advances:
Total Minority Community Advances of the Bank stood at Rs 8019 crore constituting 15.05% of Priority Sector Advances.
8.2. Unique Schemes:
The Bank has two unique schemes - (1) "UCO Uthaan" for upliftment of BPLfamilies of adopted villages & (2) "UCO Samagra Gramin Vikas Yojna" -Adoption of villages for all-round development.
8.2.1. UCO Uthaan Scheme: Social-cum-Financial upliftment scheme for BPL families
Under the Scheme, villages having a large number of BPL families are adopted by theBank through its nearest branch to bring the BPL families out of the clutches of povertyand bring about a holistic change in the villages. Under the scheme, a holisticdevelopment plan of the villagers is drawn and followed up for covering areas likeeducation, financing for rural housing, formation of SHG and micro-financing, developmentof handicrafts & rural artisans and extending finance under DRI Scheme.
The Bank has adopted 21 villages in 10 states i.e. Assam, Bihar, Gujarat, Maharashtra,Odisha, Punjab, Rajasthan, Tamil Nadu, Uttar Pradesh & West Bengal under UCO UthaanScheme.
Bank has conducted several financial literacy camps in these villages and has providedfinancial assistance particularly to BPL families to improve their livelihood, to generatemore income so that they come above poverty line.
By these efforts, 2141 BPL families, in these 21 adopted villages, have been providedwith credit assistance by Bank to uplift their livelihood in better way during last 3years. These BPL families are generating their income by adopting several activities likedairy farming, goat farming, betel leaf cultivation, vegetable growing, cycle repairing,shoe mending, fruit vending, grocery shop, tea stall, beedi making, trolley plying, masonjobs etc.
8.2.2. UCO Samagra Gramin Vikas Yojna : For all-round development of villages
The Bank has adopted 10 villages in 6 states i.e. Gujarat, Himachal Pradesh, Odisha,Kerala, Uttar Pradesh & West Bengal for all-round development of these villages underUCO Samagra gramin Vikas Yojna.
In these villages, the Bank has conducted financial literacy camps to educate thevillagers, extended financial support to them and has also initiated developmentalactivities under Corporate Social Responsibility. Under financial assistance, the Bank hasgiven General Credit Cards (GCC) to small traders, Artisan Credit Cards (ACC) to artisans,Kisan Credit Cards (KCC) to farmers, loans to SHGs, loans for doing animal husbandryactivities, loans to women & SC/ST beneficiaries. Many small traders have startedtheir own business with the support of Bank loan. Through CSR activities the Bank hasgiven Ceiling Fans, Water purifiers to different schools, Steel Almirahs, Books for schoollibrary, School uniform to school going children, installed of hand pumps for drinkingwater in the villages, installed Solar street lights in the villages, constructed ofmetallic road.
In two villages, out of above 10 villages, the Bank has provided doorstep bankingfacilities to the villagers of these unbanked villages through Mobile Van. The Van visitsthese two villages on a predetermined day and time during the week and provides all typesof banking facilities to the villagers at their doorstep. There has been increase in thesaving habits of the villagers due to this initiative. Through these vans, villagers arealso being financially educated.
By these activities, there is an all-round development in the adopted villages and thevillagers are very much benefitted.
8.3. Awards to Bank:
UCO Bank was awarded during the current year the Best Bank Award by the Chamber ofIndian Micro, Small & Medium Enterprises in a function held in New Delhi for the yearended 2014 under the below mentioned categories:
Best Bank Award for Operational Performance- Winner
Best Bank Award for Tech Savvy- Runner Up
UCO Bank bagged the 1st prize for "Highest average loan" to SHGs in WestBengal State during the year 2013-14 under Commercial Banks category on the eve ofcelebration of NABARD Foundation Day on 12.07.14.
UCO Bank received prestigious SKOCH AWARD for Excellence in Banking in "FinancialInclusion and Deepening 2014".
Financial Inclusion is a vital project for the macro and micro economy of the countrywhich is intended to bring the excluded masses under the umbrella of structured bankingsystem and eliminate the dishonest practices of money lenders. Financial inclusion by itswider scope plays a critical role in poverty eradication, reducing income disparities andenhancing economic growth. Envisaging the greater role of inclusion, Govt of Indialaunched a comprehensive Financial Inclusion Plan "Pradhan Mantri Jan DhanYojna"on 28th August 2014. UCO Bank contributed with more than 6 lakh accounts on the launchdate. Account opening target allotted to our Bank has been achieved well before 26thJanuary 2015.
Bank has adopted following models for implementation of the project:
i. Through Brick & Mortar Branches in the unbanked and under bankedlocations/villages/Gram Panchayats
ii. Through Corporate Business Correspondents (Corporate BCs): Bank has at present 4Corporate BCs - M/S HCL, M/S Genpact India Ltd., M/S TCS & M/S FINO for end to endsolution.
iii. Bank on wheel: Bank has deployed 24 Mobile Vans to cover 132 unbanked villages.
iv. Kiosk Model (UCO Samaveshan Sarathi) through VLEs (Village Level Entrepreneurs) ofCSC (Common Service Centre) e-governance.
v. Through Individual BCs who inclde: Retired teachers, Retired Bank employees, RetiredGovernment employees etc.
9.1. Coverage of villages allotted to Bank & Accounts opened under Pradhan MantriJan Dhan Yojana (PMJDY):
44.87 Lac accounts have been opened under PMJDY bringing in deposit of Rs 604.42 Crore.Further, 17102 villages encompassing 52.12 Lac households are allotted to our bank withthe target of achieving at least one bank account per household, and the target had beensuccessfully accomplished.
9.2.New initiatives for implementation of Financial Inclusion:
9.2.1. Implementation of FI Gateway -
Bank engaged M/s FINO Paytech as service provider for implementation of its own FIGateway & Central Biometric Authentication Server. This solution helped Bank inachieving a) Central Bio-Auth Transaction where Smart card is no more mandatory to dotransactions b) Aadhaar Enabled Payment System and c) Biometric De-Duplication wherebyenrolment of the same customer twice will be avoided.
9.2.2. Web based Kiosk Banking Solution named as "UCO Samaveshan Sarathi" hasbeen rolled over on pan India basis for the use of BC agents and Village LevelEntrepreneur(VLE) of Common Services Centre (CSC).
9.3. Direct Benefit transfer (DBT) and Direct Benefit Transfer for LPG (DBTL):
Bank has taken number of steps for smooth roll out of Direct benefit Transfer in 117districts out of 121 districts identified for implementation of the schemes.
From 01.01.2015 to 31.03.2015 LPG subsidy has been credited for 4999388 beneficiaries(2681787 beneficiaries through Aadhaar number & 2317601 beneficiaries through accountnumber) amounting to Rs 17506 lakh.
10. RETAIL BANKING:
10.1. RETAIL LIABILITY PORTFOLIO
Under Liability portfolio, Bank had launched special term deposit scheme UCO THOUSANDFIXED DEPOSIT SCHEME with waiver of penalty on premature closure to boost growth of termdeposits (<Rs 5 crore) "UCO Savings Day" was observed on 10.07.2014 therebymobilizing business of Rs 22 crore by opening about 1.50 lac Saving Accounts in a singleday.
"UCO Sowbhagya" campaign for Recurring Deposit Accounts was launched from 12to 14 January 2015 mobilizing Rs 22.42 Cr in 62548 accounts.
Bank also launched a special saving scheme for Minors above 10 years of age named"UCO Smart Kids" with ATM Card, E-Banking facility etc.
Bank has tied up with Payment Gateways such as CC Avenue, Pay U, Direcpay, EBS, Citrusand Paytm providing direct debit facility to our net banking users over 30000 websites. Atie up with goibibo.com has also been made by which our customers get discounts forbooking their journey tickets and hotel accommodation through goibibo website using bank'sdebit card/ internet banking.
Bank has introduced Loyalty Rewards Program for our customers for encouraging andpromoting Bank's Alternate Delivery Channels.
Marketing Cell has been set up at Corporate Office for looking after the tie-ups withPSU/Govt. departments/Treasuries etc., for mobilizing retail business. Liabilityprocessing Cell (LPC) was introduced in the Kolkata zone for centralized account opening.Bank has signed an agreement with LIC on 27.02.2015 for maintaining and operating Currentaccount of LICI to purchase instruments and for remittances.
Improvements were made in the features of our existing UCO Suvidha Salary Account andUCO Care Current Account.
10.2. SCHEMATIC RETAIL LENDING
Under Asset portfolio, the Bank has launched new loan scheme, UCO Yatra for travellingpurpose to our existing borrowers having property Mortgaged in favour of our Bank andanother scheme for purchasing books by Lawyers practicing in Supreme Court.
Bank has modified existing retail asset products such as UCO Home loan Scheme, UCOPension Loan scheme, UCO Property Loan to make it customer friendly and in line withmarket demand.
UCO HOME Loan Campaign was launched twice during the year sanctioning a total of Rs1215 crores to 7469 applicants and achieving highest percentage growth of 35.49% during 9months ended December, 2014 among all PSU Banks.
Online loan application module for Home, Car and Education loans has been completelyrevamped with user friendly changes wef 03.12.2014.
Online Lead Generation through Bankbazaar.com was enabled and also Grand Festive Offerwaiving 100% process fee was introduced during the year for UCO Home Loan and UCO CarLoan.
Gold Loan campaign was launched from 08.12.2014 to 20.12.2014 sanctioning a total loanof Rs 115 Cr.
For Life Insurance, Bank is the Corporate Agent of Life Insurance Corporation of Indiasince August 2003.
In Group Credit Life Insurance, bank has tied up with Kotak Mahindra Old Mutual LifeInsurance Ltd providing insurance cover to a) Educational Loan Borrowers since July 2009,b)Home Loan Borrowers since August 2013 and c) UCO Cash, UCO Two Wheeler, UCO Car, UCODoctor and UCO Properties Borrowers since August 2013.
For Non-Life Insurance, Bank is the Corporate Agent of Reliance General InsuranceCompany Ltd. (RGICL), from September 2009. Besides, there are three other insuranceproducts viz. 'UCO Griha Raksha Policy' 'UCO Griha Raksha Plus' 'Reliance Healthy FamilyPolicy' to cover the house property, to cover the repayment of loan, to cover the medicalexpenses of our borrowers/customers under various circumstances.
In Mutual Fund Business, Bank continues its distributorship tie-up relation with eightMutual Fund Houses of good repute Viz. Franklin Templeton, ICICI Prudential, Kotak,Reliance, UTI, Birla Sun Life, Baroda Pioneer and SBI Mutual Fund.
The increasing trend of NPAs in the Banking Industry over last two-three years hasbecome a concern to the banks. Gross NPA level has inflated from 4.32% in March 2014 to6.76% in March 2015 and respectively the quantum of GNPAs has increased from Rs 6621.37crore to Rs 10265.05 crore. The NNPA percentage rose to 4.30% from 2.38% of previous year.During the FY 2014-15 the bank has witnessed fresh slippages of Rs 7551.31 crore whichincludes substantial number of restructured accounts particularly in power, steel and roadsectors. In addition a downward trend in recovery of stressed assets compared to previousyear is observed and the bank could offload NPAs of only Rs 483.77 crore to ARCs againstRs 1869.06 crore in the previous year. All these factors attributed to a sharp rise inGNPA/NNPA percentage in the current Financial Year. Therefore maintaining Bank's assetquality and recovery of bad debts are the prime concern of Bank.
12.1. Recovery Performance:
The Bank is able to surpass both recovery target for NPA and Loss Assets as approved inStatement of Intent (SOI) for the FY 2014-15 (NPA recovery of Rs 2506 crore against SOItarget of Rs 2400 crore and recovery in Loss assets is Rs 189 crore against
Rs 150 crore).However, recovery performance of 2014-15 is sluggish as compared toprevious year. The main reason for declining recovery is global recession coupled withcontinued economic slowdown particularly in Power, Steel and Road Projects, problems inoffloading Non Performing Loan assets to ARCs, less number of OTS in large borrowalaccounts etc.
Bank's recovery mechanism is also geared up at all lev