Union Bank of India Directors Report

Dear Shareholders,

The Board of Directors are pleased to present the 106th Annual Report of the Bank for the Financial Year 2024-25 together with the Audited Balance Sheet, Profit & Loss Account, ‘Cash-Flow Statement and the report on Management Discussion & Analysis. The Corporate Governance Report and Business Responsibility Report also form part of the Annual Report 2024-25.

1. Highlights:

1.1 Indias economic growth slowed in FY 2024-25 even as it remained the fastest growing economy in the world. As per provisional estimates of National Income, GDP growth was reported at 6.5% in FY

2024-25, lower from 9.2% growth of previous year. Also, growth rate for FY 2025-26 is estimated at 6.5%, largely unchanged amid global trade and geopolitical uncertainties. During FY2024-25, while rural spending slowed down with late recovery in H2, further delay was witnessed in private capex cycle recovery. Manufacturing activities grew at a slower pace during the year. Along with real GDP, nominal GDP growth during FY 2024-25 is estimated at 9.8%, lower from 12.0% in FY 2023-24. Though decline in Nominal GDP numbers were seen due to fall in inflation numbers, decline in real activity was also evident. Along with easing cycle, significant measures from the RBI totaling Rs 11 lakh crore have been pivotal in ensuring surplus liquidity in the system. However, real sector growth still needs uplift in the current fiscal.

1.2 There was moderation in services sector growth while agriculture sector growth improved during the year FY 2024-25. On demand side, private consumption expenditure revived in FY 2024-25 after slipping to multi-year lows in FY2023-24. However, capital formation growth slowed yet it was backloaded driven by public capex boost in H2 in an election year. Nevertheless, Governments continued push towards infrastructure spending has added positively to the overall growth cycle of the economy in FY 2024-25. Given the macro backdrop of moderation in overall economic activity, bank credit growth moderated during 2024-25 to grow by 11.0%, from 20.2% in previous year. Bank credit growth to industry recovered to 7.8% y/y. Though agricultural credit growth remained in double-digit at 10.4% in March 2025, it moderated from 20.0% in March 2024. Some deceleration in growth of credit to services sector and personal loans segments was seen in

FY 2024-25, on the back of regulatory restrictions implemented by the RBI in unsecured retail and NBFC sub sectors, nevertheless, they remained the main drivers of credit growth during the year. More importantly, Credit growth to MSMEs remained robust during the year registering 14.1% growth in FY 2024-25. Liquidity conditions entered into deficit in H2: FY 2024-25 from that of surplus in H1: FY 2024-25 due to draw down on Government cash balance and capital outflows. Merchandize exports growth marginally improved during FY 2024-25 to 0.1% up from (-)3.1% in previous year. Among the worlds leading service-exporting nations, India maintained its position within the top five exports in FY 2024-25. Indias software, business, and transportation services have contributed to export growth during the FY 2024-25. However, outlook of Indias exports remains benign amid trade wars and global recessionary sentiments.

1.3 Prices remained volatile during FY 2024-25. Headline consumer price index (CPI) inflation, averaged to 4.6% during H1:2024-25 and increased to 6.2% in October 2024. Nevertheless, as the impact of food shocks receded, a sharp correction followed in H2, resulting in headline inflation declining below the target rate of 4% by Q4:FY 2024-25. After retaining the policy repo rate at 6.5% since February 2023, the liquidity Monetary Policy Committee (MPC) initiated monetary easing in H2:2024 25. It changed the stance from withdrawal of accommodation to neutral in October 2024, and cut the policy repo rate by 25 bps to 6.25% in February 2025. In December 2024, RBI reduced the cash reserve ratio (CRR) by 50 bps.

1.4 Going forward, Indias growth is expected to show resilience backed by recovery in consumption demand. Governments push for consumption and capex, resilient services sector, robust outlook of agricultural sector would provide impetus to overall growth. Measures announced in the Union Budget FY 2025- 26 augur well for improving domestic consumption. However, headwinds from geopolitical tensions, trade wars, volatility in international financial markets and global recessionary pressures pose risks to the Indias growth outlook. 1.5 Global economic activity remained steady in H2:2024, amid sluggish growth recorded by some Asian and European economies as weakness in manufacturing and trade exports offset the robust growth momentum in the United States. Global economic outlook remains uncertain amid financial sector volatility, and global recessionary sentiments. According to the International Monetary Funds (IMFs) April 2025 update of the World Economic Outlook (WEO), global growth is expected to slow down to 2.8% in 2025 and 3.0% in 2026, from 3.3% in 2024. Slowdown is expected to be seen across the countries. Growth in Advanced economies is expected to moderate to 1.4% in 2025 and 1.5% in 2026 from 1.8% in 2024. Slowdown is also expected in emerging market and developing economies at 3.7% in 2025 and 3.9% in 2026 from 4.3% in 2024. Global inflation too is expected to normalize to 4.3% in 2025 and 3.6% in 2026 low from 5.7% in 2024. Anticipating the adverse effects of trade wars to have a direct contractionary effect on global trade, IMF revised down the global trade growth to 1.7% in 2025, from 3.8% in 2024. Nevertheless, slight recovery is expected for next year with 2.5% growth in 2026. IMF lowered growth forecasts of US and China by 1% each for 2025. However, if US and China arrive at consensus on trade deal, the extent of decline in global slow-down will be capped, thereby capping the negative spill-overs.

1.6 As per the IMF, Asia will contribute 60% of global economic growth in year 2025 despite headwinds of global slow-down. Asias GDP is expected to expand at 4.5% and 4.6% in 2025 and 2026 respectively, after growing 5.3% in 2024. India and China are projected to be the biggest drivers of growth in Asia. IMF projected India to grow by 6.2% in 2025 and 6.3% in 2026, while China to expand by 4.0% each in 2025 and 2026. 1.7 Being an integral part of the global value chain, Indias growth is estimated to witness a slight slow-down as stated by IMF and World Bank. India is poised to emerge as one of the largest economies worldwide, projected to contribute significantly to global growth. India is currently ranked as the 5th largest economy globally in 2025, but it is projected to surpass Japan and secure the 4th position among the worlds top 10 largest economies. IMF forecasts that by 2027, India will overtake Germany to become the 3rd largest economy worldwide.

1.8 The Reserve Bank of India has pegged the economic growth estimate for 2025-26 at 6.5%. Nevertheless, we expect, GDP growth at 6.3% in FY 2025-26 and further slow down to 6% in next fiscal. However, in times of nominal GDP slow-down, credit slowdown turns more prominent as seen in FY 2024-25. Nevertheless, Indian economy is resilient to its growth journey mainly supported by Governments push for consumption and capex, resilient services sector, robust outlook of agricultural sector aided by normal monsoon. Strong corporate balance sheets, government spending and oil prices slow down too would add positively to Indias growth dynamics.

However, Global recession and uncertainty still persists which tend to pose adverse effect on domestic consumption. Well-coordinated fiscal and monetary policy could undoubtedly generate improved outcomes in terms of better growth prospects for Indian economy amid global volatilities.

Source: RBI Monetary policy report (October 2024, April 2025), RBI speeches & MPC member comments, IMF WEO April 2025, RBI Financial Stability Report June 2025

2. Bank Performance

Established in the year 1919, your Bank has 8,621domestic branches, 8,910 ATMs across 29 States and 5 Union Territories, and 73,900 plus employees as on March 31,2025. The Bank has 2 overseas Branches at Sydney, and

Dubai DIFC, 5 wholly owned Subsidiaries, 3 Joint Ventures and 1Associate Organization. The global business of your Bank stood at Rs. 22,92,644 Crore as on March 31, 2025 which comprises of total deposits of Rs. 13,09,750 Crore and gross Advances of Rs. 9,82,894 Crore. The operating profit and net profit of the Bank stood atRs. 31,090 crore and Rs. 17,987 crore respectively as on March 31, 2025.

3. Digitization

The Bank has embarked on Digital Transformation Project by leveraging cutting edge technology solutions to deliver seamless banking experience. Innovations in the Financial service industry over the past decade has led to fundamental shifts in financial sector landscape and has brought in epochal reforms in banking regulations and the way in which traditional financial services interact with consumers.

During the FY 2024-25, the Bank has implemented 15+

digital journeys under various segments which are

1. Public Provident Fund (PPF)

2. Sukanya Samriddhi Yojana (SSY)

3. Fixed Deposits (FD)

4. Recurring Deposit (RD)

5. Personal Loan

6. Vehicle Loan

7. Pre-Qualified Business Loan

8. Current Account for Individuals

9. Union Digital EASE

10. Digital PM Vishwakarma

11. Digital Union Roof Top Solar Scheme

12. Agri Term Loan Review

13. Digital Co-Lending Module

14. Staff Conveyance Loan

15. Staff Clean Overdraft

Additionally, with the increased digital adoption of various journeys, the Bank has enhanced the product/limit of the 6 digital journeys during the FY 2024-25 namely

1. Union MSME Superfast STP (Limit Enhancement from Rs. 25.00 Lakh to Rs. 100.00 Lakh)..

2. Tarun & Kishore Mudra STP (extended for New-to-Bank Customers).

3. Union Nari Shakti (extended for New-to-Bank Customers)

4. Digital KCC STP (Limit Enhancement from Rs. 1.60 Lakh to Rs. 2.00 Lakh and

extended for the state of Odisha & Tamil Nadu)

5. Digital KCC Renewal (Limit Enhancement to Rs. 10.00 Lakh)

6. MSME Digitally Assessed Review/Renewal (Limit Enhancement to Rs. 25.00 Lakh)

The Bank mobilized Rs. 74,300+ crore digital business from 15+ lending journeys, w/w Rs. 66,000 Cr business was generated in FY 2024-25.

CRM

The Bank has implemented CRM Edge; a comprehensive integrated solution for Branches, Marketing Officer and Admin Offices which provides various features like Cross Sell/Up Sell, Product per Customer (PPC), Customer Relationship Value (CRV), Customer Satisfaction Score, Total Services availed by customer, Graphical reports, Complaints & service management and Query resolution on a single platform.

The CRM enables the Bank to automatically onboard leads, track/manage leads, improve Customer Service & manage complaints in a timely & effective manner; CRM also provide various modules for cross-selling viz. Customer 360-degree view (in Detail), Analytics tool, Campaign Management solution etc. Further, CRM access is given to Call Centre Agents, Banks Business Correspondents/DSAs/CSAs for lead generation & follow-ups and customer support.

Vyom App

Bank VYOM offers 400+ features and benefitswith explorative UI/UX design to increase engagement and offers unique banking experience. VYOM offers lifestyle features through a marketplace where in a customer can book Flight tickets, Hotels, Cabs, Bus tickets, purchase Gift Cards, recharge mobiles DTH & Data card and make donations. The Bank has also incorporated Digital Mutual Fund, Digital Insurance, and various STP journeys in VYOM app.

During the FY25, the bank has registered 3.9mn+ new users on Vyom and have implemented various features such as Credit Score, POS issuance, Union Millionaire Deposit Scheme, End-to-End Digital Saving Account (NTB) opening, implementation of Re-KYC update, opening of MIS Monthly Income Scheme, enhancement in Insurance process through Jansurksha and integration with Chat Bot "chat with UVI. The UPI transactions of the Bank has shown a growth of 36% by volume on Y-o-Y basis. The Bank has launched various features such as EMI facility for Credit Card on UPI Transactions, UPI Interoperable Cash Deposit, UPI Lite Auto Top-up and UPI Circle facility during the FY. Bank also enables the facility of depositing funds in Public Provident Fund (PPF) and Sukanya Samriddhi Account (SSA) Scheme account holders through UPI.

Digital Rupee by Union Bank of India (eRs.) App

Union Bank of India is one among very few Banks to be Live in both the Retail as well as Wholesale segment. Union Bank of India was one among 9 Banks to implement W- CBDC (Wholesale) and one among 13 Banks to implement CBDC-R (Retail). The Bank was the 1st bank in Cohort 2 to go live with the CBDC- Retail segment.

In FY25, "Digital Rupee by UBI" app has been upgraded to promote inclusivity and ensure seamless access for all users, including individuals who are visually impaired. A dedicated "Accessibility" option has been integrated into the app to provide navigation guidance tailored to the needs of visually impaired users.

The Bank has successfully integrated the HRMS with the Digital Rupee App, enabling seamless crediting of staff benefits directly into CBDC Wallet. Additionally, bank has implemented Token Reconciliation Services (TRS), the Distributed Token Service Platform (DTSP), and the Multi Token Network (MTN). UPI fund transfers using P2P, velocity checks in the CBDC system, and enhanced security features have also been introduced to ensure secure and efficient digital transactions. These advancements demonstrate our commitment to leveraging technology for superior digital banking solutions.

FY25 Performance 1.65 Lakh

Retail users registered

Fintech & Ecosystem Partnerships:

Digital business has accelerated the pace at which Bank must support new web, mobile and multi experience apps, as well as custom integrations. The Bank has empaneled 84 FinTechs, among these 18 FinTechs have been onboarded for implementing various digital solutions in Agri, Retail & MSME segments.

Presently, the Bank has built following horizontal capabilities by partnering with the FinTechs to improve the efficiency, accuracy, and transparency of the Digital Journeys

1. Video Customer identification Process (V-CIP)

2. API Aggregator

3. Statement Analyzers

4. Optical Character Recognition (OCR)

5. Digital Valuation Report

6. Digital Title Scrutiny Reports

7. Digital Document Execution

By embracing digital technologies, bank aims to streamline the loan application process, reduce costs and make it easier for borrowers to access credit and enable the Bank to extend the digital ecosystem in innovative and differentiating ways.

Digital Journeys:

During FY 2024-25, the Bank has implemented numerous straight-through processing (STP) journeys, enhanced features, and upgraded technologies to deliver a seamless and frictionless digital banking experience.

1. Implementation of Digital Business Platform:

To capture the growing digital business & building the robust digital ecosystem/ architecture, the Bank has launched "Project Sambhav", to establish a dominant position within the digital landscape and capitalize on emerging opportunities. This endeavor aims to deliver superior, customized digital experience to customers through digital experience to customers through state of the art microservices based Digital Business Platform. The platform is designed to incorporate advanced functionalities including omni-channel experience, data driven personalization, open banking integration and strengthened fintech partnerships to accelerate business growth. The Digital Business Platform will be integrated with various internal and external systems/applications to create various STP journey and assets viz. apps, assisted

Digital Business Platform: Objectives

End-to-end omnichannel digital

banking experience with drop off

management, beyond the branch

Personalized, seamless & faster

customer experience & engagement

with single platform fulfilment

Modular & API-based approach for

build with minimal modification /

changes in the existing system

Next-gen technology stack to ensure

scalability, reliability and future-

proofing

New age banking with open API for

quick integration with journeys

portal, net banking etc.

The "Assisted Portal" launched as part of Digital Business Platform is made accessible for Branches, RO, ZO & Marketing Officers through Tab. The Assisted portal can be used for completing dropped-off journeys and also to initiate new journeys for walk in customers at branches. This will helpful for serving customers with low digital literacy.

A customer will have multiple points for starting a journey such as "Open Web", an in-App access or through a Branch Assisted Portal. All customers i.e. New to Bank (NTB) customers as well as Existing to Bank (ETB) customers can initiate lending journeys on Open Web using the Banks

Corporate Website or links shared as a part of Digital

Marketing.

The Digital Business platform is made live with 7 Digital journeys across open web and assisted portal i.e. Public Provident Fund (PPF), Sukanya Samriddhi Yojana (SSY), Fixed Deposits (FD) & Recurring Deposit (RD) on assisted Portal; and Personal Loan, Vehicle Loan & Pre-Qualified Business Loan on Open-web and Assisted Portal.

2. Digital Personal Loan:

Collateral free unsecured loan that can be used for variety of purpose to meet personal needs. Sanctioning & disbursement of personal Loan digitally for both Existing-to-Bank (ETB) and New-to-Bank (NTB) customers without manual intervention.

3. Digital Vehicle Loan (4W):

End-to-end digital disbursal experience for the purchase of New Four-Wheeler for personal use digitally for both Existing-to-Bank (ETB) and New-to-Bank (NTB) customers without manual intervention and reduced TAT.

4. Pre-Qualified Business Loan:

A financing solution designed to provide businesses with quick and easy access to credit based on preliminary eligibility assessments. This allows businesses to receive a loan offer without undergoing process, enabling them to plan their financial needs efficiently.

5. Digital Savings Account

The bank offers next-generation Digital Savings Account, wherein customer can choose from 10 different saving schemes basis their eligibility, without visiting the branch. The process of opening an account is made easy with the use of VKYC and online verification of Aadhaar and PAN and customer can start enjoying the benefits immediately.

6. Current Account STP for Individuals

Bank offers a convenient and seamless online digital current account opening process for individuals which allows customers to open a current account from the comfort of their home or office, without the need to visit a branch.

7. Union Digital EASE:

Cash flow-based lending (WCTL) based on Digital Footprint to eligible borrowers for business purpose specifically for Micro, & Small Business Enterprises engaged in Manufacturing / Service / Trading Activities for the purpose of Creation of Fixed Assets, expansion of existing business or meeting their working capital requirement.

8. Digital PM Vishwakarma:

PM Vishwakarma Scheme is devised to extend financial assistance to Artisans and Craftspeople along with Skill Upgradation, Toolkit Incentive, Marketing Support etc. The Scheme seeks to promote empowerment of women, and those belonging to the marginalized or under-served groups like the Scheduled Castes, Scheduled Tribes, OBCs, Specially Abled, Transgenders, residents of NER states, Island Territories and Hilly Areas. Under PM Vishwakarma, financial support will be provided to the targeted beneficiaries in the form of collateral free ‘Enterprise Development Loans.

9. Digital Co-lending Module:

An innovative platform designed to enhance credit accessibility by partnering with Non-Banking Financial Companies (NBFCs) and Housing Finance Companies (HFCs). The digital platform ensures efficient processing, compliance with regulatory guidelines, and real-time monitoring of loan portfolios.

10. Digital Union Roof Top Solar Scheme:

Bank has developed Digital STP journey for PM

Suryaghar- Muft Bijli Yojna under URTS scheme. The designed journey aims to maintain high standard of customer service by promoting adoption of our solar roof top loan product among prospective customers by providing quick and hassle-free loan process.

11. Agri Term Loan Review:

To strengthen digital footprints and to provide simplified process of term loan review in digital mode, Bank has come up with Digitally assisted review of Agri term loan (up to Rs. 25.00 Lakh) through STP journey. Digital journey involves no or minimum manual intervention which will help the branches to reduce TAT to a few minutes.

12. Staff Conveyance Loan and Clean Overdraft:

Fully automated system to digitally process the staff loan proposals end-to-end with minimal or no manual intervention for Staff Clean Overdrafts, reducing the turnaround time and minimizing manual interventions.

4. Business Highlights:

4.1 The global business of your Bank stood at Rs. 22,92,644 crore as on March 31, 2025

4.3 Gross Advances stood at Rs. 9,82,894 crore as on March 31, 2025. RAM segment of your Bank stood atRs. 5,31,679 Crore. 22.14% growth in Retail, -2.91% growth in Agriculture, and 12.50% growth in MSME advances are achieved on a YoY basis. RAM advances as a percent of Domestic RAM Advances stood at 56.20%.

4.2 Total Deposits stood at Rs. 13,09,750 crore as on March 31,2025. Out of this, CASA share (current account and saving account) stood at 32.55 % as on March 31, 2025.

4.4 Overseas business of your Bank stood at Rs. 74,918 crore as on March 31, 2025, compared to Rs. 53,583 crore as on March 31, 2024. Your Bank has two overseas branches in DIFC (Dubai), and Sydney (Australia). Your Bank also operates in the United Kingdom through its wholly owned subsidiary, Union Bank of India (UK) Ltd, and operates in Kuala Lumpur (Malaysia) through its Joint Venture - India International Bank (Malaysia) Berhad, which is a Joint

Venture with Bank of Baroda and Indian Overseas

Bank. The Gross Advance portfolio of the foreign branches stood at Rs. 36,919 Cr as on 31st March 2025 as compare to Rs. 31,252 Cr as on 31st March 2024 and Net Profit of the foreign branches stood at Rs. 190 Cr as on 31st March 2025 as compare to Rs.109 Cr as on 31^st March 2024.

5. Income and Expenditure:

	Table 1: Income and Expenditure Statement
Sl.	Parameter	FY 2024-25	(Rs. in crore) FY 2023-24
1	Interest Earned	1,07,726	99,778
2	Other Income	19,813	16,080
3	Total Income (1+2)	1,27,539	1,15,858
4	Interest Expended	70,512	63,208
5	Net Interest Income (1-4)	37,214	36,570
6	Operating Expenses	25,937	24,440
	w/w Establishment	14,668	14,377
	Expenses
7	Total Expenditure	96,449	87,648
8	Operating Profit (3-7)	31,090	28,211
9	Provisions	13,103	14,562
10	Net Profit/Loss	17,987	13,648
11	Earnings per share (in Rs.)	23.56	18.95

6. Profitability and

6.1 Your Bank reported an Operating Profit of Rs. 31,090 crore in FY 2024-25 as compared to Rs. 28,211 crore in FY2023-24 with a growth of 10.21%. 6.2 Net profit of your Bank stood atRs. 17,987 crore in FY

2024-25 as compare to Rs. 13,648 Cr as on 31^st March 2024 with a growth of 31.79%.

6.3 Cost-to-income ratio of your Bank stood at 45.48% in FY 2024-25.

6.4 During FY 2024-25, Return on Average Assets stood at 1.26%, whereas Return on Equity stood at 17.20%.

Table 2: Efficiency
Parameter (%)	FY	FY
	2024-25	2023-24
Return on Average Assets	1.26	1.03
Return on Equity	17.20	15.58

6.5 The following are the key productivity ratios of your Bank for FY 2024-25.

Table 3: Productivity
Parameter	FY 2024-25	FY 2023-24
Business per Employee	31.00	28.02
Rs. ( in crore)
Business per Branch	265.94	251.17
Rs. ( in crore)
Gross Profit per Employee	42.04	37.18
Rs. ( in lakh)

6.6 Dividend:

The Board of your Bank has recommended a dividend of Rs. 4.75 per equity share of face value Rs.10/- each for FY 2024-25 as compare to Rs. 3.60 for the FY 2023-24.

7. Shareholders Return:

7.1 Your Banks net worth was Rs. 1,04,562 crore as on March 31, 2025.

8. Asset Quality:

8.1 Gross Non-Performing Assets (GNPA) of your Bank stood at Rs. 35,350 crore as on March 31, 2025 as compare to Rs. 43,098 Cr as on 31^st March 2024. GNPA as a percent of gross advances stood at 3.60% as on March 31, 2025 as compare to 4.76 % as on 31^st March 2024.

8.2 Net NPA of your Bank stood at Rs. 5,969 crore as on March 31, 2025 as compare to Rs. 8,990 Cr as on 31^st March 2024 and the Net NPA ratio stood at 0.63% as on March 31, 2025 as compare to 1.03 % as on 31^st March 2024.

9. Capital Adequacy:

9.1 The Capital Adequacy Ratio, as per BASEL III norms, stood at 18.02% as on March 31, 2025. Common Equity Tier I (CET I) capital of your Bank stood at 14.98% in March 31, 2025.

Table 4: Capital Adequacy Ratios - Basel III
			(Rs. in crore)
Parameters	RBI Minimum Benchmark March 31, 2025	March 31, 2025	March 31, 2024
Total Risk-
		7,03,920	6,64,188
Weighted Assets
Total Capital
	NA	1,26,825	1,12,689
Funds
CET 1 Capital		1,05,465	90,693
Tier 1 Capital		1,14,336	99,622
CRAR (%)	11.50	18.02	16.97
CET 1 (%)	8.00	14.98	13.65
Tier 1 (%)	9.50	16.24	15.00
Tier 2 (%)	2.00	1.77	1.97

9.2 Capital Raised by your Bank

During the FY 2024-25, the Bank has not raised any equity capital and Bassel III compliant Tier1/Tier 2 Bonds.

10. Network

The Branch Network of your Bank is widely spread across the country with 8621 branches including 2 overseas branches (at Sydney and Dubai) as on March 31, 2025. Out of these, 59 percent of the branches are located in rural and semi-urban centres.

11. Awards & Accolades:

During FY 2024-25, your Bank received awards for various initiatives taken under the areas of Digitization, Financial Inclusion, HR management, Customer Service, etc. HDM Awards for Best Workforce Planning 2024 presented by Indian Conventions in March2025 Presented by Asia L&D: Employer Branding Conference & Awards by International Business Conferences in February 2025 l Excellence in Continuous Learning & Development l Leadership Development program of the year

12. Branding and Marketing

In todays dynamic world Branding assumes greater significance in creating an identity and enhancing its value; Branding can help forge emotional connections in one of the most diverse and rapidly growing markets in the world. It plays a pivotal role in establishing trust, and services,differentiating and driving business growth in a highly competitive market. Your Bank has been very active in the branding and marketing space during the year across all media such as Print/ TV/ Radio/Digital/OOH and Social Media.

Traditional Media

Your Bank ensured top of mind recall in the traditional media spaces such as TV and Radio by way of TVC, static creatives and attractive jingles. Attractive creatives were rolled out through Print and OOH media. Customer awareness campaigns including awareness campaign against cyber crimes were also launched by your Bank. A catchy and popular TV Commercial was developed for Banks MSME products under the theme "Soch Se Sach Tak". Another engaging brand TV commercial was released on the theme, with Union Bank, "Banking is always on". Your Bank also ran extensive campaigns to market retail deposit schemes such as "Union Samvridhi". As part of its initiative to engage young students in the realms of knowledge and financial awareness, Your Bank conducted the third edition of a 48 city nationwide quiz program titled U-Genius 3.0 for students in Std 9-12. Bank also hosted a hackathon event-I D E A , which was first in the PSB Hackathon series 2025 under guidance of DFS and IBA.

Digital Media

With over 900 million internet users, India is one of the fastest-growing digital economies. There has been a definite shift towards digital media in accessing content such as news, entertainment, sports etc. Keeping in view of this ever growing target segment, Your Bank has been active in the digital space ensuring vibrant and continuous presence across popular digital news, travel and utility portals/apps and channels.

Social Media

Your Bank is extending information related to products/ services through its official handles on all major social media platforms viz. Facebook, X, Instagram, YouTube LinkedIn and Threads. Users were engaged in business interactions through conversation sessions/ Direct Messaging, customer care support, online contests, Educational posts/ videos, organizing online events etc. User interactions were used to understand brand perception and gain competitive intelligence to increase business prospects through social media.

Your Bank has thrived on cost-effective brand publicity through social media and posted dynamic content with attractive static/ video posts, bringing customer awareness of the products, services and offers. Awareness was also created through posts on social engineering, social causes, remembering personalities, significant days/ events, engagement campaigns on public interest, etc.

The Bank has undertaken sustained efforts to promote awareness on cybersecurity and safe digital payment practices through its social media platforms. Regular campaigns, informative posts, and digital safety advisories are being disseminated across various channels to educate customers about secure transaction methods, fraud prevention, and responsible digital Banking behaviour.

As part of cybersecurity awareness, the Bank actively shares tips on identifying phishing attempts, safeguarding personal and financial information, and avoiding fake apps or fraudulent links. Your Bank also released a cybercrime awareness video through Shri Neil Nitin Mukesh, a high-profile celebrity influencer. are routinely educated on the importance of not sharing sensitive credentials like OTPs, UPI PINs, passwords, or card details.

These initiatives reflect the Banks commitment to fostering a secure and informed digital Banking environment in line with regulatory guidelines and evolving customer needs. Your Bank is available 24x7 on all handles which are very responsive and reply instantly to queries. In the last year, 74 lakhs queries from social media users were responded ensuring timely guidance, proper redirections and complaint redressal resulting in customer satisfaction. Your Bank brand was well received by the public at large, justified with 706.88 lakhs impressions and 18.19 lakhs engagements.

Your Bank has a substantial follower base on social media presence which has grown to 52.01 lakhs as on 31st March 2025.

Your Bank is continuously measuring the overall sentiment about existing or new products, collecting feedback about initiatives, customer interest to meet the expectations of customers in product offerings and services rendered.

Website

Your Bank also launched revamped website with an enhanced UI/UX design for a seamless user experience. The update includes advanced calculators for better utility, dedicated lead pages for most of the product, and improved SEO optimization to boost visibility and engagement. The new website contains Comprehensive product pages with features, benefits and specifications.

13. Changes in the Directors on the Board of your Bank:

The following changes took place in the Board of Directors of your Bank duringthefinancial . year 2024-25 l Dr. Jayadev Madugula, Shareholder Director of your Ban k, ceased to be the Director on his completion of tenure, w.e.f 28.06.2024.

l Dr. Priti Jay Rao, Shareholder Director of your Bank, ceased to be the Director on his completion of tenure, w.e.f 29.07.2024. l Shri Prakash Chandra Kandpal has been elected as a Shareholder Director of the Bank on the Board w.e.f. 27.07.2024. l Dr. Priti Jay Rao, has been elected as a Shareholder Director of the Bank on the Board w.e.f. 27.07.2024. l Shri Suraj Srivastava, Part Time Non-Official Director your Bank, ceased to be the Director on his completion of tenure, w.e.f 21.12.2024. l Shri Laxman Uppar, Part Time Non-Official Director Customers your Bank, ceased to be the Director on his completion of tenure, w.e.f 21.03.2025.

14. Directors Responsibility Statement

The Directors confirm that in the preparation of the annual accounts for the year ended 31st March 2025: l The applicable Accounting Standards had been followed along with proper explanation relating to material departures, if any. l Accounting Policies had been selected and applied consistently, and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of end of the financial year and of the profitand loss of your Bank for that period. sufficientcare lwas Proper taken and for the maintenance of adequate Accounting Records in accordance with the provisions of the relevant Acts for safeguarding the assets of your Bank and for preventing and detecting fraud and other irregularities. l The Annual Accounts were prepared on a going-concern basis. l Internal financial controls had been laid down to be followed by your Bank, and such Internal Financial Controls were adequate and were operating effectively. Explanation. For the purposes of this clause, the term "Internal Financial Controls" means the policies and procedures adopted by your Bank to ensure the orderly and efficient conduct of its business, including adherence to your Banks policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information. l Proper systems were in place to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.

15. Market capitalization of the Bank

Particulars	Market Capitalisation as on 28.03.2025 (in Rs. Crore)	Rank among listed entities
National Stock
		90
Exchange of India	96,320.84
		(among top 100)
Ltd.
		90
BSE Ltd.	96,336.10
		(among top 100)

Union Bank of India has been included in T+0 rolling settlement cycle by stock exchanges in equity cash markets.

Further, the top management of the Bank have held more interactions with the stakeholders of the Bank to enhance Banks market perception.

16. Corporate Governance

The Board of your Bank is committed to adopting good Corporate Governance practices in letter and spirit. A detailed report on Corporate Governance is given in a separate section of the Annual Report. The Corporate Governancereportforthefinancial year 2024-25 has no audit qualifications.

17. Corporate Social Responsibility (CSR):

17.1 Empowering Inclusive Growth: Union Banks Social Impact (CSR)

Corporate Social Responsibility (CSR) is an integral part of a companys commitment to managing the social, environmental, and economic impacts of its operations in a responsible manner, aligned with public expectations. It encompasses the companys efforts to give back to the community, participate in philanthropic causes, and provide positive social value. Today, companies increasingly recognize the importance of CSR to make a difference and build a positive brand image. CSR can be categorized into different types, including environmental responsibility, ethical responsibility, philanthropic responsibility, and economic responsibility. At Union Bank of India, we remain steadfast in our commitment to social responsibility. We are dedicated to creating a positive and sustainable impact on society through our CSR initiatives. By aligning our efforts with the needs of the community, we strive to contribute to a better and more inclusive future for all.

Union Bank focuses on inclusive growth, rural development, and supporting government initiatives. Your Bank drives projects that uplift marginalized communities and improve access to healthcare, education, and livelihood opportunities. Our rural development initiatives aim to empower rural areas and promote sustainable agriculture and skill development. The Bank actively collaborate with the government to support social progress and economic growth. Union bank remains dedicated to making a lasting social impact and fostering a more inclusive and prosperous society.

Union Bank allocates up to 1% of the previous years published net profits towards voluntary CSR/ charitable activities, though it is not mandatory being a Public Sector Bank.

To facilitate and manage its CSR/charitable activities, your Bank established the Union Bank Social Foundation (UBSFT) on March 2, 2006. The primary object of UBSFT is to uplift underprivileged communities and significantly improve the living standards of the poor and marginalized. During FY 2024-25, total donation of Rs.37.70 crore for 89 projects was approved by Union Bank Social Foundation & an amount of Rs.25.47 crore was disbursed for 70 projects. The bank donated Rs.121.40 crore to Union Bank Social Foundation (UBSFT) during FY 2024-25.

These initiatives span various areas of social responsibility and aim to make a meaningful impact on the communities we serve.

Rs. 37.70 crores	89
Donations approved	The number of projects/
by Union Bank Social	programmes approved
Foundation (UBSFT)
during FY 2024-25.

Union Bank Social Foundation Trust (UBSFT)

To uplift underprivileged communities and significantly improve the living standards of the poor and marginalized, as an extended arm for carrying out CSR/charitable activities, the Bank set up Union Bank Social Foundation (UBSFT) as a Trust on March 2, 2006. UBSFT is registered under section 12AA and have obtained certificate under Income Tax Act, 1961.

The vision of UBSFT is to foster public-private initiatives and act as a catalyst for socioeconomic development. UBSFT aim to collaborate with other agencies to fulfil its obligations as a corporate citizen. The focus areas of UBSFT include improving healthcare, providing infrastructure and tools for education, and promoting continuous and sustainable skill development.

The mission of UBSFT is to launch, implement, participate in, fund, or otherwise assist programs and projects that contribute to the socio-economic development of individuals and communities. The UBSFT Board is led by your Banks MD & CEO, with Executive Directors serving as Vice Chairman Trustees. Other trustees include Union Banks General Managers and an independent trustee. The UBSFT Board provides strategic direction aligned with Union Banks CSR priorities and conducts regular reviews of activities. The Chief Executive of UBSFT oversees the execution of the Boards directives.

Union Bank has also established a Stakeholders

Relationship Committee (SRC) at the apex level, comprising members of the Board of Directors, which inter alia monitors the CSR activities of your Bank so also of UBSFT on a quarterly basis. This committee, headed by the MD & CEO, includes Executive Directors and non-official Directors.

FY 2024-25 Initiatives

Some of the key activities carried out by Union Bank/ UBSFT in the field of social responsibility during FY

2024-25 include:

Education and Skill Development: Supporting programs to enhance access to quality education, promote skill development, and empower individuals for a better future. Healthcare and Sanitation: Partnering with organizations to provide healthcare facilities, medical camps, sanitation infrastructure, and initiatives to promote general well-being. Livelihood Enhancement: Undertaking initiatives to promote livelihood opportunities, entrepreneurship, and economic empowerment of individuals and communities.

Environmental Conservation: Engaging in activities that contribute to environmental sustainability, such as tree plantation drives, waste management programs, and promoting renewable energy.

Rural Development: Implementing projects focused on rural infrastructure development, access to clean water, agriculture and farming techniques, and rural livelihood improvement.

18. EASE (Enhanced Access and Service Excellence)

Enhanced Access and Service Excellence (EASE) Reforms Agenda, launched by Government of India in the financial year 2018-19 aimed efficiency and at enhancing the customer-centric approach of public sector banks. The agenda has undergone multiple iterations, with each iteration bringing in new reforms to address the evolving needs of the banking sector including improving financial inclusion, leveraging digital banking, and ensuring effective governance in PSBs. The Sixth iteration of EASE agenda for the FY 2023-24 was launched under the theme "Customer-friendly banking enabled by modern capabilities" and your bank was placed at 3rd position in EASE 6.0 annual index along with securing 2nd position in all the four themes.

Seventh iteration of EASE for the FY 2024-25 was launched under theme "Economic Development: Customer Delight" Resilient Banking" with an emphasis on enabling banks to drive national priorities, maintaining a strong customer service orientation, managing operational risks effectively and catalyzing new-age capability 7.0 prioritizes further digitalization of banking services and marks a major shift in the modernization of Indias financial sector, aligning PSBs with global standards of excellence.

EASE Reforms agenda has proven to be a game-changer for the Public Sector Banks, fostering a culture of modernization, efficiency, and customer-Under this framework your bank has made impressive strides in in various areas from improving digital banking services, enhancing financial inclusion, governance reforms, to asset quality improvement. Below are some of the key achievements of your Bank under the EASE 7.0 (FY2024-25):

Identification and Capability build in champion sector.

Increased adoption of digital savings account journey through V-KYC.

Introduced "Union Yuva Shakti"- a youth-oriented entrepreneurial product for MSME. Incentivizing top branches on customer experiences. Increased the number of services on chatbot. Introduced feedback capture mechanism for branch visit satisfaction on IVR. Segmentation of customers into different tiers based on their liability relationship for better service delivery.

Increased the number of services via tablets in the branch.

Increased the number of services at non-home branches.

Increased the number of services via digital channels. Introduced the role of Chief AI officer for setting-up and driving the overall AI strategy for the bank.

Developed relevant technical infrastructure for Gen AI implementation in the Bank.

Deployment of prescriptive analytical models in the Bank.

Built web analytics platforms to analyse metrics related to website performance. Increasing adoption of cloud technologies and enhanced cloud performance monitoring.

Increased number of channels/products live on EFRMS platform with Real Time updates. Implementation of KRA for clerical employees.

Introduced knowledge repository framework and Gen-AI enabled chatbot for employees to avail specific answers for their queries.

In the latest EASE 7.0 index for Q3 FY 2024-25, your Bank is placed in the 2nd position amongst all PSBs. Your Bank is also placed in 1st position in two themes and 2nd position in two themes out of total five Banking towards ‘Viksit Bharat", "Excellence in customer service", "Adoption of new-age technology & other advanced capabilities", "Effective risk/fraud management, collections and recovery" and "Developing employees for emerging banking priorities" in the Q3 FY 2024-25 index. As India moves forward with the next phase of the EASE agenda (EASE 8.0), these achievements set a solid foundation for a more resilient and competitive bank that can meet the needs of a rapidly evolving economy. The ongoing transformation of your Bank through EASE will likely have lasting benefits, ensuring that it remain crucial players in Indias financial ecosystem for years to come.

EASE Next (Pillar II): Bank-specific 3-year Roadmap program:

As part of EASE Next (Pillar II) for bank specific strategic initiatives, your Bank had prioritized the following 5 initiatives covering 46 metrices with an objective of achieving the financial and non-financial aspirations.

Customer Service & Operational Excellence.

Risk Architecture and Capital allocation.

Enhancing Liabilities Franchise.

Learning & Development.

Tech Resiliency and Cyber Security.

These initiatives have helped the bank to improve customer service, strengthening risk architecture and reinforcing Tech Resilience & Cyber security measures

. Acknowledgements:

19.1 The Directors thank the shareholders, valued customers, well-wishers, Share Transfer Agent, and correspondents of your Bank in India and abroad for their goodwill, patronage, and support. 19.2 The Directors acknowledge with gratitude the valuable and timely advice, guidance, and support received from the Government of India, Government of Maharashtra, Reserve Bank of India, Securities & Exchange Board of India, Insurance Regulatory and themesi.e.

Development Authority of India, Central Vigilance Commission, BSE, NSE, financial institutions, correspondent Banks and Statutory Central Auditors of your Bank, in the functioning of your Bank.

19.3 The Directors place on record their deep appreciation for the dedicated service and valuable contribution made by members of staff in the overall performance of your Bank during the year and look forward to their continued cooperation in the realisation of the corporate goals of your Bank in the years ahead. 19.4 The Directors also express that the staff members stay safe, healthy and maintain good health.

	For and on behalf of the Board of Directors
Place: Mumbai	(Srinivasan Varadarajan)
Date: 25.06.2025	Chairman