he Board of Directors have pleasure in presenting the Directors Report: 2023-24 together with the Balance Sheet as on 31st March, 2024 and Profit & Loss Account for the financial year ended 31st March, 2024.

FINANCIAL PERFORMANCE

Our Bank has shown steady performance during the year and has made an Operating Profit of Rs. 4,576.25 crore for FY ended March 31, 2024. This reflects a significant growth of 5.43% from an Operating Profit of Rs. 4,340.67 crore for FY ended March 31, 2023. Net profit reduced to Rs. 1,653.74 crore during FY ended March 31, 2024 as- against Net Profit of Rs. 1,862.34 crore for the FY ended 31.03.2023 on account of higher provisioning. Bank has transferred Rs. 413.44 crore, 25% of current year profit to statutory reserve fund in compliance with Banking Regulation Act 1949.

Gross NPA has reduced to Rs. 6,463.30 crore (3.46%) as on

31.03.2024    from Rs. 7,726.46 crore (4.78%) as on 31.03.2023. Total income stood at Rs. 25,119.87 crore for the year ended

31.03.2024    registering a growth of 24.61% over the previous year ended 31.03.2023. Provision Coverage Ratio of the Bank has increased to 95.38% as on 31.03.2024 from 94.5 % as on

31.03.2023.

Following are the highlights of financial performance indicators as on 31.03.2024.

The International Monetary Fund (IMF), in its World Economic Outlook, April 2024, has forecasted that the world economy will continue to grow at 3.2 percent during both 2023-24 and 202425. This is at the same pace of growth as in 2022-23. The global economic activity maintained its position, despite warnings of stagflation and global recession, on account of better performance of the advanced economies like The United States, Euro Area and Germany, where growth is expected to rise from 1.6 percent in 2023 to 1.7 percent in 2024 and 1.8 percent in 2025. This will however be offset by a slight slowdown in emerging market and developing economies from 4.3 percent in 2023 to 4.2 percent in both 2024 and 2025. The forecast for global growth five years from now is 3.1 percent, which is the lowest in decades. Global inflation is forecast to decline steadily, from 6.8 percent in 2023 to 5.9 percent in 2024 and 4.5 percent in 2025. It is expected that the advanced economies will return to their inflation targets sooner than emerging market and developing economies, in the midst of unwinding supply-side issues and restrictive monetary policy.

STATE OF INDIAN ECONOMY

The Reserve Bank of India's (RBI) Monetary Policy Committee (MPC) has kept its growth projection for India's GDP at 7.0 percent for the financial year 2024-25. Quarter wise growth for FY25 are estimated at 7.1 percent, 6.9 percent, 7.0 percent and 7.0 percent respectively. The growth rate of GDP during 2023-24 reflects that Indian economy has demonstrated resilience and maintained healthy macro-economic fundamentals, despite global economic challenges. Strong domestic demand for consumption and investment, along with Government's continued emphasis on capital expenditure are seen as among the key driver of the GDP in FY 2023-24. On the supply side, industry and services sectors were the primary growth drivers in FY2023-24. India has registered the highest growth among major advanced and emerging market economies during this period. As per the International Monetary Fund (IMF), India, with an estimated nominal GDP of 3.94 trillion dollar in 2024, is the fifth largest economy in the world. The IMF has also forecasted that the Indian economy will grow at 6.8 percent in 2024-25.

The Reserve Bank of India (RBI) has kept its forecast for retail price inflation for financial year 2024-25 at 4.50 percent. It has also released quarter wise inflation forecast for Q1FY25 at 4.9%, Q2FY25 at 3.8%, Q3FY25 at 4.6% and Q4FY25 at 4.5%. India's consumer price index, (CPI)-based, eased from 4.85% in March 2024 to 4.83% in April 2024. The April 2024 figure is high when compared to April 2023 figure of 4.70%.

Food inflation for April 2024 is at 8.70%, which has increased from 8.52% of March 2024. The core inflation, which is the CPI inflation excluding food and fuel, has remained stable indicating that it is primarily food price shocks that are causing the headline inflation to deviate from the target rate of 4%. Double-digit inflation exhibited by vegetable, pulses, and spices has kept the food inflation momentum high which is being combatted by

the government through export prohibitions to stabilise domestic prices.

BANKING SECTOR

PSU banks have earned a net profit of about Rs 68,500 crore during the first six months of FY24. Banks have been raising funds from the market to augment their resources. During the Interim Budget 2024, for the second straight year, no allocation was made by the Finance Ministry for the recapitalisation of public sector banks. This signals that the health of these PSBs is in line with expectations. The Reserve Bank of India has maintained that the country's scheduled commercial banks are healthy and can withstand macroeconomic shocks.

The Enhanced Access and Service Excellence (EASE) Reforms of the Department of Financial Services (DFS) have played a crucial role in transforming Indian Scheduled Commercial Banks (SCBs), emphasizing digital customer experience, analytics-driven business improvement, tech and data-enabled capability building, and HR operations enhancement. The gross nonperforming assets (GNPA) ratio continued to decline to a multiyear low of 3.2 per cent and the net non-performing assets (NNPA) ratio to 0.8 per cent in September 2023, as reported in RBI's half-yearly Financial Stability Report (FSR). The report said the soundness and resilience of India's banking sector have been underpinned by ongoing improvement in asset quality, enhanced provisioning for bad loans, sustained capital adequacy and a rise in profitability. At the same time, RBI has instructed banks and NBFCs to curb ever-greening through Alternative Investment Funds (AIFs). The RBI prohibited lenders from investing in an AIF which has direct or indirect downstream investments in a company in which such lender has a loan or investment exposure.

In the realm of digital payments, the DIGIDHAN Mission, now under the DFS, has played a pivotal role in the phenomenal growth of digital payment transactions in India. The total number of transactions has surged from 2,071 crore in FY 2017-18 to an impressive 18,503 crore in FY 2023-24.

Financial inclusion remains a key focus area, with initiatives like the Pradhan Mantri Jan Dhan Yojana (PMJDY), Pradhan Mantri Jeevan Jyoti Bima Yojana, Pradhan Mantri Suraksha Bima Yojana, MUDRA, Stand Up India, and Atal Pension Yojana making significant strides. Overall, the Indian banking and financial sector have been instrumental in shaping a resilient and progressive financial landscape in 2024, contributing to the economic growth and well-being of the nation.

I. PERFORMANCE OF THE BANK DURING 2023-241. UCO's Delivery Channels:1.1 BRICK AND MORTAR NETWORK:

Bank has a geographically well-spread branch network in India and also has presence abroad. As of 31.03.2024, Bank has 43 Zones and 3230 domestic branches, 2 overseas branches (one each in Singapore and Hong-Kong) and 1 representative office has been established in Tehran, Iran.

The Global branch network over 5 years is as under:

1.2 BRANCHES & OFFICES NETWORK:

The population category-wise break-up of domestic branches as of 31.03.2023 & 31.03.2024 is given below:

The domestic branches include 6 Flagship corporate branches, 7 Asset Management branches, 4 service branches, 1 central pension processing center and 1 integrated treasury branch. Further 25 MCU branches, 39 Retail loan Hubs, 28 Agriculture Loan Hubs, 21 SME Hub and 72 currency chests are also functioning across the country attached to the major city branches of various centres.

2. BUSINESS PROFILE:2.1.GLOBAL:

>    Global business of the Bank stood at Rs. 4,50,007 crore as of 31.03.2024 compared to Rs. 4,10,967 crore showing an increase of 9.50% over March 2023.

>    Global deposits has increased by 5.53% as of 31.03.2024 and stood at Rs. 2,63,130 crore compared to Rs. 2,49,338 crore as of 31.03.2023.

>    Global advances increased by 15.62% and stood at Rs. 1,86,877 crore compared to Rs. 1,61,629 crore as of

31.03.2023.

2.2.DOMESTIC:

>    Overall domestic business of the Bank has increased by 8.43% and has reached Rs. 4,12,237 crore as on

31.03.2024 from Rs. 3,80,173 crore as on 31.03.2023.

>    Domestic deposits increased by 3.83% and stood at Rs. 2,49,965 crore as on 31.03.2024 from Rs. 2,40,741 crore as on 31.03.2023..

>    Domestic advance has shown a growth of 16.38% to Rs.1,62,272 crore as on 31.03.2024 from Rs. 1,39,432 crore as on 31.03.2023.

>    CASA deposits increased by 7.76% on Y-o-Y basis and stood at Rs. 98,120 crore, SB deposits grew by 6.19% and stood at Rs. 86,029 crore. Current deposits stood at Rs. 12,091 crore as on 31.03.2024 compared to Rs. 10,037 crore as on

31.03.2023,    showing a growth of 20.46% on Y-o-Y basis.

>    Share of low cost deposits (CASA), in domestic deposits increased from 37.82% as on 31.03.2023 to 39.25% as on

31.03.2024.

3.    TREASURY

Domestic Investment of the Bank during the year 2023-24 decreased by 1.82% from Rs. 94,692.51 crore as on 31.03.2023 to Rs. 92,970.05 crore as on 31.03.2024 largely due to redemption of Government securities.

The SLR investment of the Bank decreased by 1.71% from Rs. 67572.28 crore as on 31.03.2023 to Rs. 66,418.16 crore as on

31.03.2024 mainly due to redemption of Govt. Securities.

The Non-SLR Investment (Domestic) decreased by 2.09% from Rs. 27,120.22 crore as on 31.03.2023 to Rs. 26,551.89 crore as on 31.03.2024 mainly due to redemption in Bonds and Certificate of Deposit portfolios.

During the year 2023-24, interest income of Rs. 6119.09 crore was registered from domestic investment.

3.1    International Business

As on March 31,2024, the Bank's total business from Overseas Branches at Singapore and Hong Kong was Rs. 37,770 crore and constituted 8.39% of the Global Business. The Overseas Business constituted of total deposit of Rs.13165 crore and total advances of Rs. 24,605 crore.

Our Bank with 65 B-Category branches across India is committed to actively cater to the needs of Exporters/Importers Community and also serve our NRI Customers. The total merchant turnover of the bank during the financial year ended on 31st March,2024 stood at Rs. 75,929 crore.

4.    SOCIAL BANKING4.1    Agriculture

Agriculture Credit of the Bank grew at 13.16% annually from Rs. 21775 crore as on 31.03.2023 to Rs. 24641 crore as on

31.03.2024. The details are as under:

4.2    Performance under Priority Sector Advances vis-a-vis stipulated targets of RBI in FY 23-24

UCO Bank is showing significant improvement in performance in lending to Priority Sector over the years and effectively serving the priority sector and agriculture sector with its vast network of rural and semi-urban branches.

>    As on 31.03.2024, the Priority Sector Advances (including investments & PSLC) of the Bank stood at Rs. 76537 Cr. which constituted 54.54 % of ANBC as against the mandatory target of 40%.

>    Total Agriculture Advances (including investments & PSLC) under priority sector of the Bank stood at Rs. 26348 Cr. which constituted 18.77% of ANBC as against the mandatory target of 18%.

>    Lending to Small & Marginal Farmers (including PSLC) stood at Rs.14525 Cr. as on 31.03.2024 which constituted 10.34% of ANBC as against the mandatory target of 10.00%.

>    Lending to Non-Corporate Farmers stood at Rs. 21142 Cr. as on 31.03.2024 which constituted 15.04% of ANBC as against the mandatory target of 13.78%.

>    Lending to Micro Enterprises stood at Rs. 20049 Cr. as on

31.03.2024    which constituted 14.27% of ANBC as against the mandatory target of 7.50%.

>    Lending to weaker sections stood at Rs. 21185 Cr. as on

31.03.2024    which constituted 15.07% of ANBC as against the mandatory target of 12.00%.

UCO Bank is the convenor of State Level Bankers Committee (SLBC) in 2 States i.e. Odisha & Himachal Pradesh. Bank also shoulders the Lead Bank responsibility in 36 districts across the country.

The Bank has moved beyond granting simple farm based credit to a more diversified rural lending strategy. We are focussing more on newly introduced products such as Agriculture Infrastructure Fund (AIF), Animal Husbandry Infrastructure Development Fund (AHIDF) and PM Formalisation of Micro Food Processing (PMFME).

The Bank continues to focus on its flagship products like KCC, Agri Gold Loans, Horticulture Loans, Financing to Self Help Groups (SHGs).

4.3    Credit Flow to Self Help Groups:

>    Self Help Group is one of the most important approaches for women empowerment in India. Lending to Self Help Groups present an excellent opportunity to promote micro enterprises in rural areas leading to increased employment generation and in turn income to the rural masses.

>    The advent of Self Help Groups (SHGs) concept has ensured seamless delivery of credit to the poor and has boosted the rural economy. Bank has actively promoted SHG Bank Linkages.

>    The outstanding credit to SHGs stood at Rs. 3210 Cr. covering 1.65 lakh SHGs as on March'24 and registering annual growth of 44% in outstanding amount.

>    UCO Bank received "Certificate of Appreciation" from Maharashtra State Rural Livelihoods Mission for best performing Bank amongst Public Sector Banks in SHGs Credit Linkage to Women Self Help Groups (SHGs) in Maharashtra for FY 2022-23.

5.    Regional Rural Banks (RRBs)

UCO Bank sponsored RRB namely, Paschim Banga Gramin Bank (PBGB) is head quartered at Howrah, West Bengal with four regional offices and 230 branches as on 31.03.2024.

5.1    Capital position of RRB - Paschim Banga Gramin Bank

The total capital of Paschim Banga Gramin Bank as on

31.03.2024 stood at Rs.682.86 Cr. comprising Rs.341.43 Cr. from Govt. of India, Rs.239 Cr. from UCO Bank (as sponsor Bank) & Rs. 102.43 Cr. from West Bengal State Govt.

5.2    Performance of Paschim Banga Gramin Bank during 2023-24

As per audited financial results, total deposit of Paschim Banga Gramin Bank stood at Rs.6906 Cr. as on 31.03.2024, registering growth of 5.11%. Total advance reached a level of Rs.4149 Cr. with an annual growth of 10.70% 31.03.2024. CD ratio stood at 60.08 % as on 31.03.2024 as against 57.05% on 31.03.2023.

The Gross NPA stood at Rs. 339.31 Cr. as on 31.03.2024 visa-vis Rs. 351.11 Cr. as on 31.03.2023. Gross NPA to Gross Advance stood at 8.18% as on 31.03.2024 as against 9.37% as of 31.03.2023. The net NPA ratio of the RRB stood at 0.83% as on 31.03.2024 as against 3.94% as of 31.03.2023.

Paschim Banga Gramin Bank has recorded a net profit of Rs.50.65 Cr. as on 31.03.2024 as compared to net loss of Rs.55.01 Cr. as on 31.03.2023, thereby decreasing accumulated loss from Rs. 459.46 Cr. as on 31.03.2023 to Rs. 408.81 Cr. as on 31.03.2024.

6.    Corporate Social Responsibility

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

a) Our Bank has set up 27 Rural Self Employment Training Institutes in 7 states namely Assam, Bihar, Himachal Pradesh, Odisha, Punjab, Rajasthan and West Bengal. These 27 institutes with dedicated infrastructure are devoted to impart training and skill up gradation and to mitigate the unemployment and under employment of rural youths. These institutes are set up by the Bank as a part of initiative taken up by the Ministry of Rural Development to establish dedicated training Institutions for development of entrepreneurship skills in rural youth, under Corporate Social

Responsibility (CSR). All RSETIs conducted 769 training programmes involving 23041 candidates and 10309 beneficiaries have been provided Credit Linkage of Rs.35.68 Cr. during the Financial Year 2023-24.

b)    As of 31.03.2024, Bank has set up 127 Centre for Financial Literacy (CFL) with collaboration of NGO identified by RBI namely CRISIL foundation, Dhan foundation, Aroh Foundation, HPSRLM, Swadhaar FinAssess Foundation, Gram Sathi, Awoke India, M/s Mother, M/s Aravali in the state of Assam, Bihar, Odisha, Punjab, Rajasthan , West Bengal and Himachal Pradesh. All CFLs collectively conducted 48075 camps involving 1529222 participants and 85189 beneficiaries have been provided with Bank Linkage.

c)    Bank has 36 Financial Literacy Centres (FLC) across the country wherein 16 Financial Literacy Counsellors conduct Financial Literacy Camps. During Financial Year 2023-24, the Financial Literacy Counsellors have conducted 3803 Financial Literacy Camps thereby spreading Financial Awareness to 133313 participants as of 31st March 2024.

7. FINANCIAL INCLUSION7.1    Pradhan Mantri Jan Dhan Yojna (PMJDY)

Bank has been allotted with 16281 villages across the country to provide inclusive Banking Facility in unbanked / under banked areas. In line with DFS directives these villages were categorized into 4122 Sub Service Areas (SSAs). Out of these 4122 SSAs, 3656 SSAs are covered though BC agents and 466 SSAs in tier 5 villages (Population above 5000) are covered through Branches for ensuring universal Financial Inclusion and to bring the entire population under ambit of structured Banking facility.

Bank has added 2892 Bank Mitras making the total BC deployment to 9808 (highest addition of new BCs till now). During FY 2023-24 total 341.34 lakhs transactions with 22% y-o-y growth amounting Rs. 13408.72 crore with 19.33% y-o-y growth (averaging every month about 28.45 lakhs transactions amounting Rs.1117.39 crore) carried out through Micro ATMs used by BC Agents.

Bank has garnered deposit of Rs. 6584.94 crore at the end of March 24 in 136.37 lakhs PMJDY accounts registering 16% growth in PMJDY saving deposit and 10% growth in PMJDY account opening. The average per account balance under PMJDY accounts increased from Rs. 4550 to Rs. 4829. Bank has opened 12.12 lakhs PMJDY accounts during FY 2023-24.

Bank has distributed around 35.37 lakhs RuPay Cards to the eligible PMJDY account holders. During the FY 2023-24 average transactions per month to the order of 1.64 lakhs took place through Rupay Cards on Micro ATMs used by BC agents amounting monthly average of Rs.78.96 crore.

7.2    Aadhaar Seeding & Authentication

As per revised UIDAI guidelines, Aadhaar number can be given voluntarily as identity proof for opening customer accounts. Aadhaar is required for availing benefits under various government welfare schemes. By 31st March 2024, around 85% operative saving accounts have been seeded with Aadhaar number and Aadhaar authentication has been done in 44% of operative saving accounts.

7.3    Micro credit-Overdraft facility

Number of PMJDY accounts using the OD facility in the bank as on March 2024 is 3.71 Lakhs aggregating sanctioned amount of Rs.75.47 crore. As per Finance Minister's budget announcement (FY 2020-21), an overdraft of Rs. 5000/- is allowed to verified women SHG member in their PMJDY Accounts

7.4    Social Security Schemes

Working on the government's theme of providing social security to hitherto unbanked masses, Bank has implemented Insurance and Pension products namely, Pradhan Mantri Jeevan Jyoti Bima Yojna (PMJJBY), Pradhan Mantri Suraksha Bima Yojna (PMSBY), Atal Pension Yojna (APY) through its Branchs and BC network. Under PMJJBY scheme, 23.37 lakh subscribers availed life insurance of Rs. 2 lakhs and under PMSBY scheme 52.80 lakh customers availed accidental insurance of Rs. 2 Lakh. So far a total of 12027 claims are settled under PMJJBY and 1995 claims are settled under PMSBY Further, total subscribers under Atal Pension Yojna crossed 10.72 lac till end of FY 23-24. During FY 23-24 2.44 lakh customers have been added to APY Fold with Y-to-Y growth of 29.47%.

7.5    PMJJBY and PMSBY enrolment through M-Banking, e-Banking, SMS

Electronic mode of enrolment of PMJJBY and PMSBY was made available during FY 21-22 in UCO E-Banking and UCO m banking app. A new mode of enrolment through SMS message was introduced in FY 2021-22. Through the facility, customers can self-enrol by sending SMS from their registered mobile numbers. Incentive for digital self-enrolment is being passed on to the customers by the way of reduced premium.

PMJJBY and PMSBY enrolment through Jansuraksha Portal: During Last FY through our all channels, PMJJBY & PMSBY enrolment has been started.

7.6    DFS Target and Achievement

a)    Saturation Drive under PMJSS (Pradhan Mantri Jan Surakshya Schemes, i.e. PMJJBY, PMSBY, APY): In the backdrop of honorable Prime Minister's Independence Day speech 2021, Department of Financial Services (DFS) directed Banks (vide their Office Memorandum no. F.no.21 (23)/2014-FI (Mission) dated 27-09-2021) to implement Saturation Drive for PMJDY account opening & Jansuraksha Schemes to connect every eligible person with the Government's Insurance and Pension scheme.

b)    Saturation Drive in PMJDY Account: The target of opening 9 lakhs PMJDY accounts has been given by DFS to be achieved during FY 2023-24. We have achieved 12.72 lakh (UCO-12.12 lakh & PBGB-0.60 Lakh) with an achievement of 141% of the target.

c) Saturation Drive in PMJSS Scheme: We have been allotted the target of active enrolment under PMJJBY and PMSBY for policy year 2023-24(starting from 1 June 2023 to 31st May 2024). The Target of active enrolment under PMJJBY is 21.44 lakh while under PMSBY is 52.49 Lakh. We have achieved 76% under PMJJBY while 89% under PMSBY against target up to 31st March 2024.

7.7    Progress in Aspirational Districts

With a view to enhance the penetration of Financial Inclusion in the Aspirational Districts, Department of Financial Services (DFS) launched Targeted Financial Inclusion Intervention Programme (TFIIP) in January 2020 in 40 ADs and extended it to all 112 Aspirational Districts (ADs) in February 2021. Our Bank has been allotted 7 districts namely Begusarai, Goalpara, Barpeta, Dhubri, Banka, Dhenkanal, Darrang. Some of the key facts related to Aspirational Districts allotted to us have been given below:

> Darrang and Goalpara District of Assam State are among the top performers (since inception of programme) under Financial Inclusion & Skill Development theme in the champions of change Dashboard started by NITI Aayog to monitor the progress in the Aspirational Districts.

7.8    Implementation of Aspirational Block Program (ABP) in 500 identified Blocks of the country

Prime Minister on 07th Jan 2023, launched Aspirational Block Programme (ABP) on the lines of the Aspirational District Programme, which is aimed at improving performance of blocks lagging on various development parameters. The programme plays emphasis on improving the socio-economic conditions of these backward blocks. Aspirational Block Programme is started in 500 blocks of the country with approach of reaching the last mile and policy of saturation. It will initially cover 500 blocks across 31 states and Union Territories, with over half of these blocks located in six states - Uttar Pradesh, Bihar, Madhya Pradesh, Jharkhand, Odisha and West Bengal. As intimated by DFS, the provisional Key Performance Indicators (KPIs) for ABP is as below:

•    No. of banking outlet (branch/BC/IPPB) located in the block

•    No. of villages in the block not covered by a banking outlet within 5 km

7.9    On-boarding of 9000 Business Correspondents (BCs)

During the FY2023-24 we have appointed 2892 Business Correspondents (BCs) in under-banked and unbanked areas taking the total BC force to 9808.

7.10    Aadhaar Enrolment Centre

A total no of 300 Aadhaar Enrolment centres has been set up covering 10% of the branches as per UIDAI guidelines in our Bank. Bank has outsourced the Aadhaar Operator activity to Corporate BCs in order to create efficient operation of AECs and optimum use of Bank's staff.

Consistent, efforts under Financial Inclusion have given good results and Bank has started gaining both tangible and intangible benefit out of these activities. While decongestion of branches, reduction of transaction cost and increase in CASA base are intangible benefits of FI Project. Tangible benefits have come in the form of commission earned under various products. Bank has earned Rs.298.92 lakhs in PMJJBY, Rs.50.39 lakhs in PMSBY and Rs.371.24 lakhs in APY as commission during FY-2023-24.

8.    GOVERNMENT BUSINESS

Government Business cell handles Small Savings Deposit Scheme of GOI, collection of Direct and Indirect Taxes, issuance of Sovereign Gold Bond , Floating Rate Savings Bonds, Central and state Government Pension, National Social Security Scheme -Atal Pension Yojna (APY) & National Pension scheme (NPS).

There was an increase in total account base under Public Provident Fund (PPF) from 139106 as on 31.03.2023 to 158544 as on 31.03.2024 registering 13.97 % Y-o-Y growth and in Sukanya Samriddhi Yojna (SSY) from 110977 as on 31.03.2023 to 133065 as on 31.03.2024 registering 19.90 % Y-o-Y growth.

There was an increase in accounts opened under APY scheme from 828635 as on 31.03.2023 to 1072331 as on 31.03.2024 registering 29.41% Y-o-Y growth.

Bank gives emphasis to promote Govt. Business product to increase fee based income. Turnover Commission of Rs.29.00 crores approximately earned in FY 2023-24 from various Government Business products i.e. Tax Collection, Pension, Small Savings Schemes, APY, Bond Issuance etc. Business performance has also been improved under Govt. Business products substantially.

9.    MSME

>    Bank's MSME portfolio grew by 13.53% (Y-o-Y) as of

31.03.2024

>    Quarter-wise MSME Business Performance during FY 2023-24

>    Cumulative disbursement of Mudra loans stood at Rs.6,113 crore as on 31.03.2024 registering achievement of 101.88% against allocated disbursement target of Rs. 6,000 crore.

>    Bank along with RRB has achieved 92% of allotted target required to be achieved by 31.03.2025 under Stand Up India Scheme within 31.03.2024.

>    Bank sanctioned loans to 3,334 units amounting to Rs.396 crore under Prime Minister Employment Generation Programme (PMEGP) Scheme in FY 2023-24.

>    Bank sanctioned loans to 1,58,003 Street Vendors under Prime Minister Street Vendors AtmaNirbhar Nidhi (PM SVANidhi) Scheme.

a)    Introduced Seven MSME Loan Schemes:

i.    UCO Textile

ii.    UCO Start-Up

iii.    UCO Vahan

iv.    UCO e-vahan

v.    UCO Equipment Finance

vi.    UCO Merchant Credit Card

vii.    PM Vishwakarma

b)    Introduced Two State Specific Schemes

i.    West Bengal Bhabishyat Credit Card (WBBCC) (West Bengal)

ii.    Rajiv Gandhi Swarozgar Yojana-2023 (Himachal Pradesh )

c)    Co-lending: Bank signed MoU with M/s UGRO Capital Pvt Ltd on 26.05.2023 for Co-lending of MSME loans.

d)    SME HUB: Introduced 10 New SME Hubs at prominent business centres. Now 21 SME Hubs are operational across the country.

e)    CSR: Signed MoU with M/s Poornatha and Company for conducting Online Training Program (UCO Empower) for Bank's MSME customers in vernacular language under Bank's CSR initiative.

f)    MSME Campaigns: Two MSME Campaigns, 'MSME Champion' and 'MSME Unnati' have been launched during FY 2023-24 to augment MSME business.

10. RETAIL10.1    Introduction of New Products:

a)    STP Pension Loan: Digital Pension Loan with special concessions in ROI.

b)    UCO E-Vehicle Loan: Loan scheme for purchase of electric vehicle with special ROI.

c)    UCO Elite Two Wheeler Loan: Specialized loan for purchase of high-end motorcycles.

d)    Top Up Gold Loan: Facility for additional loan against prepayment in existing gold loans.

e)    Over Draft Gold Loan: Overdraft product against the pledge of gold ornaments.

f)    Personal Loan for GTRE Employees: Customized personal loan scheme for GTRE, Bangalore employees.

g)    UCO Suryodaya Loan Scheme: Finances grid-connected RTS plants for residential purposes, supporting sustainable energy initiatives.

h)    Mo Ghara Housing Scheme: Special Rural Housing Scheme launched in Odisha.

i)    STP Top Up Gold Loan

j)    STP - Re-pledge Gold Loan.

10.2    Launch of Business Boosting Campaigns:

To invigorate our business operations and to provide a guideline

to field functionaries, we have launched various campaigns

aimed at activating and motivating Branch Heads, RLH Heads,

and Zonal Heads.

a)    Shubharambh Campaign

b)    Sankalp Campaign

c)    Star Performers FY 23-24

d)    UCO Cricket Utsav

e)    Mission 24

10.3    Modification of Existing Products in FY 23-24

a)    Introduction of special concessions for Take-over of Home Loans and Home Loans to Women.

b)    Revamping of Pre-Used Car Loan Scheme

10.4    Other Initiatives to improve asset quality and under writing standards

a.    Increase in Minimum CIR Score Requirement.

b.    Mandatory usage of Fin-tech Services for data validation.

c.    Implementation of Auto Recovery mechanism.

d.    Increase in coverage of Branches under Hubs.

e.    SOP to monitor home loans sanctioned based on tripartite agreement.

f.    Empanelment of Corporate Gold Appraisers for standardization of Appraisal/Reappraisal of Gold.

11. RESOURCES

A dedicated Resources Vertical was launched on 23rd Aug 2023 to focus on mobilization of CASA & term deposits. In which three cells was created i.e. Savings, Current & Govt. Deposit. The Vertical is headed by GM & the cells are headed by DGMs.

11.1    Key Accomplishments :

•    Current Deposit has grown at 20.46% (Y-O-Y).

•    Core Current Deposit has grown at 23.07% (Y-O-Y).

•    Savings Deposit has grown at 6.19% (Y-O-Y).

•    CASA Deposit has grown at 7.76% (Y-O-Y).

•    Retail Term Deposit has grown at 7.20% (Y-O-Y).

•    Total Deposit has grown at 5.53% (Y-O-Y).

•    Current Account opening has grown by 56% (Y-O-Y).

•    RD account opening has grown by 330% (Y-O-Y).

11.2    Initiatives taken in FY 2023-24:a)    Product & Scheme Initiatives taken:

•    Introduction of Tiered Current Deposit Products: UCO Business & UCO Business Plus

•    Modification in 'UCO Suvidha Salary' savings account with increase in Limit of Accidental Death Insurance Cover.

• Launched of 'UCO 400' Special FD Scheme

• Launched of 'UCO 300' Special FD Scheme

•    Introduction of Tab Banking for opening of Savings account.

•    Modification in 'UCO Sowbhagya' Flexi Recurring Deposit.

b)    Agreement & Tie-Up Initiatives:

•    Salary Tie up with West Bengal Govt. Departments.

•    Tie Up for integration of offline and online electricity bill collection for consumers of one of DISCOM of state of Gujarat. ¹

•    Payment and collection module integration on major ports through Sagar Sethu National Logistic Portal.

•    Tie up with one co-operative bank of Gujarat for their cash arrangement.

c) Process Initiatives Taken:

•    Developed a SSO Dashboard for Monitoring and Updation of CA authorization pending, inoperative to operative current accounts and saving accounts, casa bifurcation and business performance.

•    Formation of a Zonal Level Committee for providing approval before closing of Current Accounts.

•    Development of Zonal Resources Team Visit Report Module in SSO.

•    'UCO Connect' visit report module developed in SSO (Single Sign On) for visiting top 200 customers of branches/ zones.

•    Creation of CUSTOMER EXPERIENCE CELL to address root causes and enhance the complaint resolution process.

•    Utilization of Call Centre for calling to CASA customers for scheme upgradation for maximum facilities, maintaining minimum balances, inoperative to operative conversion, etc.

11.3 Future Initiatives to be taken in FY 2024-25:Product Initiatives to be taken in FY 2024-25:

•    Introduction of Tiered Savings Products: UCO Privilege & UCO Royal

•    'UCO Saathi' current account scheme for co-operative banks/ RRBs.

•    Tierized Savings & Current Deposits Products for women customers.

•    'UCO Sanchayika' RD for female customers.

•    Introduction of 'Green Deposit' Product.

•    Modification in 'UCO FFD' Flexible Fixed Deposit.

•    Salary Product for Armed & Paramilitary Forces.

a) Agreement & Tie-Up Initiatives:

•    Integration under process for offline and online electricity bill payment and collection in the state of Gujarat, Madhya Pradesh & Uttar Pradesh.

•    MOU with NSCL for e-FDR.

•    Tie up with different corporates for mobilisation of UCO Suvidha Salary accounts.

b) Process Initiatives:

•    Introduction of Current Account in Tab Banking.

•    Digitization of process of waiver of service charges in SSO Portal.

•    Modification in Current Account authorization process.

•    Utilization of data analytics for customer profiling and to offer customized product to them.

•    Product suite to cater to the specific segment/ industries and their requirements along with a dedicated sales force team that focuses both on quality and quantity.

•    Develop offerings to cover the various income / wealth segments and the demographics (e.g., Professionals, Young, Retirees, NRIs, etc.)

•    Strong enablers to induce transactions across form factors i.e., rewards program, gamification (on application usage, on reaching certain spends, etc.), net-banking offers across major segments.

•    DIY (Do it Yourself) journey for account opening is fully STP supported by Video KYC.

•    Drive customer experience through rigorous measurement of Customer Satisfaction (linking to the KRAs), reimagination of service journeys, availability across channels like - email, WhatsApp, SMS, etc.

•    Provide a differentiated experience to customers:

a.    RMs & Virtual RMs for the HNIs

b.    Branches created to provide a unique experience to HNIs

c.    Reduce branch footfall by leveraging contact center, etc. for query resolution.

12. MARKETING AND WEALTH MANAGEMENT12.1 Marketing

The Marketing activities of the Bank eyes at increasing the mobilization of new business, promotion of different Products of the Bank and to maintain the brand value of the Bank among the customers. Promotion of Bank's product through different channels and medias are also being taken up by the Department.

The Gist of Performance of various activities & initiatives undertaken:a) Sales Force Team (SFT):

Introduction of Sales Team was done in FY 22-23 revamping the erstwhile Marketing Team structure with higher number of staff strength in different centres. Different Sales Force Teams were created with separate KRAs for separate portfolios. In FY 23-24, Bank registered 73% growth in the business canvassed by sales team from the previous Financial Year is registered.

b)    Direct Selling Agents (DSA):

Engagement of Direct selling agents (DSA) was introduced in FY 22-23. In FY 23-24, total sanctioned amount sourced by DSAs under Home loan is Rs 2654.35 Cr, Car Loan Rs 157.28 Cr and loan canvassed from Retired Staff is Rs 125.51 Cr, totalling Rs 2937.14 Cr and registering 117 % growth in DSA sanctioned amount from the previous Financial Year.

c)    Tie up with Car Manufacturing Companies to present UCO Bank as their preferred Financer:

Integration of our Bank's Loan processing system in the digital platform of Maruti Suzuki India Ltd for easy and quick digital lending has been done and Loans are being sanctioned directly through end to end digital process.

Agreement has been done with different car companies to promote our Bank as the preferred Financer to the Car Purchasers. Also, various joint activities were organized with these companies across the country to develop a strong relationship between our branches and the car dealers/outlets for generating handsome business for the bank.

d)    Lead generation:

Bank has given a call to sell multiple products to our existing customers. Accordingly, analysis of existing data has been done and prospects have been identified. Bulk Messages/ E-Mails with different product offers were sent to the prospective customers. Both Digital & Physical collaterals (One- pagers, Video/ Audio clips/ Banners/ comparatives, EDM, flyers etc.) were designed & supplied to the field functionaries with product USP. The generated Leads from various channels were tracked and monitored via indigenous Lead generation management system of the Bank.

LMS App has been launched with geo-tagging facility for the Sales force members for digital lead generation & proper monitoring of the team.

e)    Campaign:

Several Campaigns were launched from Marketing & Wealth Management Department to maximize sourcing of Home Loan/ Car Loan & MSME Loans with specific targets allotted to Sales force teams & CMO for the campaign periods. DSAs & Sales Force members were actively involved and camps & events were organised in prominent places along with participation of Developers, Car Dealers etc.

Some of the special campaigns launched and were named as "Home Titans", "Auto Race", "The last leap", "Mission March" etc. Significant amount of loans sanctioned through these campaigns.

12.2 Wealth Management & Credit Card:Business performance under various segments:

In the FY 2022-23, Bank has created Wealth Management vertical to Promote third party products. (Bancassurance, Mutual Fund and Broking).

a)    Bancassurance

•    Bank is Corporate agent of Insurance Companies for Soliciting Insurance Business for life, General and Health Segment.

•    Bank has 3 channel partners in each segment of Insurance and 9 Channel partners in total.

Present Partners under corporate agency arrangement and other initiatives:

•    Life insurance - Life Insurance Corporation of India, SBI Life Insurance Co. Ltd and ICICI prudential life Insurance Co.

•    General Insurance - The Oriental Insurance Co. Ltd, Future Generali India Insurance Co. Ltd and SBI General Insurance Company Ltd.

•    Health Insurance - Star Health & Allied Insurance Co. Ltd, Care Health Insurance Ltd and Aditya Birla Health Insurance. For group Credit life, Bank is having tie-up arrangement with Kotak Mahindra Life Insurance Company Ltd. To cover Life risk of Home, education and retail loan borrowers.

•    Bank has increased the number of Specified persons (SP) substantially for the FY 2023-24 for felicitating Bancassurance business as per regulatory guidelines.

•    Bank has taken the initiative for IT integration with Channel partners for end-to-end seamless digital mode of sourcing proposal and payment of premium resulting in reducing policy issuance TAT and also better control on the business sourced through our Bank.

•    Total 260 health camps & 25 voluntary blood donation camps have been organized by our health insurance channel partners across our bank branches. ²

List of pre-approved customers eligible for availing different type of cards are provided to branches. These customers are approached and final card issuance is done after getting consent & necessary documents from the customers.

Commission is earned on issuance, renewal of cards and on usage of the Cards.

12.3 Door Step-Banking:

Bank is actively promoting Door Step Banking initiative taken by PSB Alliance. During the FY 23-24 numbers of campaigns were launched by PSB Alliance. Bank is providing door step services at more than 1000 centres in the country. Facilities like cash collection, cash delivery, 15G/H collection, Life certificate collection and other important services are being provided through DSB.

13. RECOVERY

Bank's recovery mechanism is also geared up at all levels of the organization and Recovery Department has adopted following strategies to maximise recovery.

•    Initiating timely SARFAESI action and sale of assets through SARFAESI with full utilization of e-Bikray platform and LMS. Steps taken for getting DM permission for physical possession of mortgaged properties to improve success rate of e-auction.

•    Utilization of Enforcement Agent / Recovery Agent for timely follow up with DM, advocate, for physical possession of property and to ensure that all actions are carried out in a time bound manner.

•    Filing of DRT suits, Civil suit including suit against Guarantors & suit u/s 138 of NI Act.

•    Utilization of Detective Agencies for unearthing personal properties in the name of borrowers/guarantors and attaching the properties through DRT in eligible cases.

•    Identification of accounts for referring to NCLT and invocation of personal guarantee through NCLT and attachment of their properties.

•    Restructuring in eligible cases and more specifically In MSME NPA accounts and allowing handholding operations.

•    OTS in eligible NPA accounts both under NDND and Normal OTS Scheme.

•    Participation in National Lok Adalat with full preparatory mode.

•    Utilization of NPA Tracker application and monitoring from HO & ZO level. ³

•    Continuous contact with NPA borrowers for identification of recoverable & not easily-recoverable NPA borrowers.

•    Aggressive follow up for up-gradation and recovery in soft NPAs as well as old NPAs through War Room and Cluster Approach.

•    Timely marking of NPA in respective portal and claim for all accounts covered under CGTMSE / ECGC etc. in timely manner.

•    Continuous follow up for reduction of NIL performing Branches.

•    Declaration of Wilful Default.

•    Issuance of LOC.

•    Contacting KCC borrowers by early morning field visit and all other borrowers via NPA Tracker.

•    Holding Mega Recovery camps at regular intervals.

•    Regular review of Zones, high NPA branches and AMBs.

The details of GNPA, NNPA, Cash Recovery and upgradation

for the last two years are as under.

The total cash recovery and upgradation for the year ended 31st March, 2024 is Rs. 1397.62 crore as against Rs. 2032.23 Crore for the year ended 31st March, 2023.

The cash recovery in technically written-off accounts is Rs. 1475.38 crore for the year ended 31st March, 2024 compared to Rs 1613.91 crore for the previous year. Recovery in Loss and Written Off assets has a direct impact upon the profitability hence Bank is giving priority in monitoring / follow-up for recovery in such accounts.

Recovery initiatives:

•    Bank had implemented new Non-Discretionary & NonDiscriminatory Special One Time Settlement Scheme named "NDND 2023-24-RIN SAMADHAN" from 16th Sep'2023 for settlement of NPAs & ML (PWO) Accounts with outstanding ledger balance up to Rs. 50.00 Lac as on 30.06.2023 under Doubtful, Loss and ML category. The extended period of validity of the scheme shall be upto 30.06.2024.

•    Bank has strengthened the Legal Management System with the objective to facilitate different departments at Head Office & Zonal Offices for monitoring status of SARFAESI actions, legal matters etc. for effective monitoring and early resolution of accounts.

•    Mega Recovery Camps are being organized to augment recovery in NPA accounts. Properties in NPA accounts are uploaded and put for auction on 'e-Bikray' a common web portal of IBA (https://ibapi.in) (Indian Banks Auction Properties Information).

•    Mega e-auction of properties under SARFAESI is being conducted on regular basis.

14. CREDIT MONITORING

The country had witnessed the resurgence of COVID as second wave during FY 2021-22 and every section of the society including salaried class, daily wagers and business class etc. have been affected to meet out liabilities.

14.1 Mitigation of COVID-19 impact:

To ease out the stress encountered by the borrowers affected on account of COVID-19, RBI had announced regulatory measures and announced a Resolution Framework 2.0 on 5th May, 2021 for COVID affected stressed assets. Accordingly, as per the RBI's Resolution Framework for COVID-19 Related Stress (RF 1.0 and RF 2.0), Bank has implemented both the resolution frameworks through seamless online process starting from Application to Sanction Level. Bank is also monitoring these restructured accounts at all level.

The timely action of Govt of India and RBI have led to revival of the economy and during last few months, consumer demand has been recovered and business across most of sectors is reviving and coming back to almost 70-80% of the pre-covid levels.

14.2 Bank has strengthened Credit Monitoring mechanism through Enhanced Monitoring as under:

a)    Early Warning Signal System (EWS) - EWS system has been extended to cover accounts of Rs. 2 Lac and above which covers 93.71% of Bank's standard advances. Regarding System identification of EWS, a software package has been implemented which is capable of generating 42 EWS triggers as suggested by RBI along with 84 EWS triggers as suggested under EASE (Enhanced Access and Service Excellence) Agenda. Also, 3 customised alerts have been implemented under EWS. New EWS Framework based on exposure has been introduced and the maker-checker concept has also been implemented in the said framework.

b)    Dashboard: Bank has launched one Dedicated Dashboard for better Credit Monitoring at all level.

i)    A new report "Monitoring Daily NPA" at Credit Monitoring Dash Board has been made available to tackle daily NPA run.

ii)    The Dashboard provides a detailed picture of the Retail portfolio of the Bank with below mentioned reports :

•    Geographical distribution

•    Bucket-wise Advance

•    Trend in movement of Advance

•    Special Mention Accounts (on daily basis)

•    Spurt In Advance

•    Sanctioning of Frequent TODs

•    NACH/ SI failed

•    Upcoming Monthly Demands

•    Upcoming Review-Renewal

•    Upcoming Stock/BD Dues

•    Demand Loans Due

c)    Various collection actions viz. Auto E-mail/SMS, IVR Calls, Call Centre Calls, Branch Calls and Branch officials visits are being made inorder to improve the collection efficiency in accounts.

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

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

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

a)    Operational guidelines for Credit Monitoring 2021-22 has been updated and put in place after obtaining approval of the members of Board of Directors.

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

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

d)    Policy for empanelment of valuers for the properties offered as securities, both primary and collateral while processing of credit facility has been revised and put in place.

e)    Engagement of Agencies for Specialized Monitoring and effective monitoring of Large Borrowal accounts with exposure above Rs 250.00 Crores has been revised after obtaining approval of the Board.

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

15. RISK MANAGEMENT

Risk is an integral part of the Banking business and the Bank aim to achieve the corporate goal by appropriate trade-off between Risk and Returns. Risk Management at Bank includes risk identification, risk assessment, risk measurement and risk mitigation, with its main objective being to minimise the negative impact on profitability and capital.

Bank is exposed to various risks that are inherent part of any banking business. The major risks are Credit Risk, Market Risk, Liquidity Risk and Operational Risk.

To ensure sustainable and consistent growth, Bank has framed a sound risk Management framework so that the risks assumed by the Bank are properly assessed and monitored. All the products, processes and policies are routed through the various Executive Level Risk Committees (Credit Risk Management Committee, Operational Risk Management Committee, Asset Liability Management Committee and Market Risk Management Committee) and the Risk Management Committee of the Board (RMCB) before being approved by the Board of Directors. The Bank has on-boarded a Risk Advisor, Who has rich experience in Regulatory as well as in Risk Management area.

15.1 Credit Risk Management

Credit risk is managed through a Board approved framework that sets out policies, procedures and reporting which is in line with best practices. Bank has a strong credit appraisal and risk management framework for identification, measurement, monitoring and control of the risks in credit exposures.

The Bank has put in place prudential caps across industries, sectors and borrowers with an objective to build a resilient portfolio and de-risk from portfolio concentration. The Bank also assesses risks associated with various Countries, State Governments, Group Borrowers etc. and setting exposure caps. As a part of enhanced exposure monitoring, quarterly reviews are carried out for the Bank's key exposures, segments, industries and sectors. A dedicated Credit Risk Management Cell tracks internal & external developments to assess impact on the portfolio performance and recommend pro-active remedial actions.

Adequate attention is given to the independence of the risk evaluators and business functions for establishing a sound credit culture and a well-structured credit approval process.

The Bank has made computation of 'Risk Adjusted Return on Capital (RAROC)' for all credit proposals of Rs.1.00 Crore and above mandatory, other than retail schematic loans for prudent use of Capital in terms of Return and addition of economic value to the stakeholders.

In order to ensure independent risk based assessment of credit proposals, Bank through its Credit Risk Evaluation Process, classifies borrower into low/medium/high risk.

15.2    Operational Risk Management

Bank has put in place Operational Risk Management Framework (ORMF) for effective management of Operational Risk. Operational Risk Management Framework comprises of the organizational structure for management of Operational Risk, governance structures, polices, procedures and processes whereas Operational Risk Management System consists of the system used by the Bank in identifying, measuring, monitoring, controlling and mitigating Operational Risk.

The Bank has created a repository of Internal Loss Data as part of Operational Risk Management. Root Cause Analysis for the various loss events is being carried to strengthen the control environment and the findings are circulated to the field functionaries for avoiding such incidence from recurring in the future.

Bank has implemented Risk Control & Self-Assessment (RCSA) which is used to identify key Operational Risk and assess the degree of effectiveness of the internal control. Based on the RCSA findings suitable risk mitigation strategies are devised to plug in the control gaps.

Risk Officers have been designated in each zone for coordinating with Risk Management Department, Head Office to support and manage various types of risk emanating from Business units.

15.3    Market Risk Management

Market risk implies the risk of loss of earnings or economic market value due to adverse changes in market rates or prices of trading portfolio. The change in economic value of different market products is largely a function of change in factors such as Interest rates, exchange rates, economic growth and business confidence. The bank has well defined policies to control and monitor its treasury functions which undertakes various market its risk operations.

Bank measures Interest Rate Risk in its trading book through Modified Duration, PV01 and VaR on a daily basis. Foreign Exchange Risk is also measured in terms of Net Overnight Open Position Limits (NOOP), VaR limit, AGL (Aggregate Gap

Limit), Individual Gap Limit on daily basis. VaR and portfolio size limit are measured along with monitoring of our portfolio at transaction level, stop loss wise and dealer wise limit.

Back-testing and Stress Testing of all the parameters associated with Market Risk are being done on regular basis.

Under stress testing framework, Bank conducts comprehensive stress of its trading book portfolio as well as interest rate risk in the banking book due to mismatch between rate sensitive asset and liabilities on quarterly basis, which generally impact the earnings/ Equity of the banks with the change in the interest rate in the market. We use Traditional Gap analysis, as well as Duration Gap approach to measure interest rate risks in Banking Book.

Value at Risk (VaR) is a tool used for monitoring risk in the Bank's Trading Portfolio. The Enterprise-level VaR of your Bank is calculated and back tested on daily basis . The stressed VAR for Market Risk is also computed daily. This is supplemented by a Board-approved Stress Testing Policy and framework that simulates various Market Risk scenarios to measure stress losses and initiate remedial measures.

The Market Risk Capital Charge of your Bank is computed using the Standardised Measurement Method (SMM), applying the regulatory factors.

Bank undertakes risk-adjusted performance analysis of its domestic and overseas portfolios. It also analyses the credit rating migration of non-SLR bonds as a tool for decision making.

Model used in Market Risk Management is also validated by External Agency.

15.4 Liquidity Risk Management

Liquidity risk is the ability to meet expected and unexpected outflows at reasonable cost. Bank monitors its liquidity risk through flow and stock approach in accordance with Board approved ALM Policy.

Bank has implemented the BASEL III framework for Liquidity Standards as LCR (Liquidity Coverage Ratio), Liquidity Monitoring tools and LCR disclosure standards and ensures maintenance of adequate level of unencumbered High Quality Liquid Asset which can be converted into Cash to meet liquidity needs for a 30 calendar days' time.

NFSR (Net Stable Funding Ratio) which promotes resilience over a longer term time horizon by requiring banks to fund their activities with more stable sources of funding on an ongoing basis. Bank is maintaining NSFR above than regulatory specified ceiling.

Bank also assesses its liquidity position under various stress scenarios to understand its funding position in case there is stress environment within the Bank as well as in market.

Interest Rate risk in the Banking book (IRRBB) arises due to mismatch between rate sensitive assets and rate sensitive liabilities which may adversely impact the earnings / economic value of the equity of the Bank with the change in Interest rates in the market. For measurement and monitoring of interest rate risk in banking book, the bank uses risk management tools such as Traditional GAP analysis, Earning at Risk and Modified duration based approach. The short term impact of interest rates movement on Net interest Income (NII) is worked out through the "Earnings at Risk" approach by taking into consideration parallel shift in yield curve, yield curve risk, basis risk and embedded options risk. The Long term of Interest rate movement is measured and monitored through change in Market Value of Equity.

15.5    Credit Rating

In order to access the level of credit risk in any credit proposal, Bank does rating of borrower with exposure greater than Rs. 25.00 Lacs (other than Schematic and Retail loans) and for MSME and agriculture proposal of more than Rs. 1.00 Crore.

Bank has upgraded its Credit rating process with effect from October, 2023. The New Model has better default predictability as well as more in line with External Rating.

Credit Proposal not covered under credit rating is assessed based on Score Card Model. Score Card Model was recalibrated after validation by External Agency. The main objective was to standardize the underwriting process for Retail, Agriculture and MSME (RAM) lending. Score card model uses technique combining several financial and non-financial characteristics to form a single score to assess borrower's creditworthiness. Presently Bank is using 19 Score Card Models for loans upto Rs. 1.00 Crore.

15.6    Fraud Risk Management

Bank has in place Fraud Risk Management cell which manages the fraud risk and ensure reporting to RBI as well as lodging of Complaint with Law Enforcement Agencies.

Bank has constituted Committee of Executive - Fraud Risk Reporting and Monitoring (CoE-FRRM) for declaration of account/incidence as fraud based on the element of fraud. Root cause Analysis of frauds is being conducted and Control is implemented wherever needed for avoiding such incidence from recurring in the future.

Bank's Fraud Management Group (FMG) is analysing the reported Early Warning Signals in borrower's account for classification it as red Flag account for timely detection of potential fraud.

Further, Bank has implemented Enterprise Fraud Risk Management System (EFRMS) comprising of Risk Based Transaction Monitoring System (RTMS) for timely detection of potential fraud. The EFRMS operations have been augmented to cover 24x7 alert disposals.

15.7    Sustainable Development

The Bank acknowledges the urgency of climate change and recognize global warming as one of the most significant threats to businesses and livelihood globally. Climate change risk has become a crucial challenge to the financial industry of late. The Bank is committed to reducing the impact of climate change risk and is consciously working towards sustainable development of its banking operation. As per lending policy, Bank prohibits Loans and advances to industries consuming / producing ODS (Ozone Depleting Substance) which enables in reduction of greenhouse effect.

The Bank has taken several steps to reduce its carbon emission and minimize energy consumption namely:

I.    Bank's two offices are powered by solar energy resulting in reduction in power consumption and in carbon emission.

II.    LED light have been used in most of the branch premises/ offices to reduce electricity consumption.

III.    Bank is conducting "Swachhata Pakhwada" for cleanliness by involving active participation of employees.

15.8. IT initiatives

In order to have proactive measure for fraud prevention, Bank is monitoring transactions in accounts on real time or near real time based on various pre-defined rules in-built in the risk based transaction monitoring system Viz. EFRMS. During the year, EFRMS operations was augmented to cover 24x7 alert monitoring in all online channels i.e. UPI, ATM/POS/ECOM, MB, IB and AEPS. Bank has further launched the Integrated EFRMS - IVR Alert disposal module through which customers receive automated call during odd hour ATM and ECOM transactions and can either authenticate or decline a transaction by themselves. Bank is looking for introducing AI & ML based risk scoring models to strengthen the existing EFRMs tool.

16. DEPARTMENT OF INFORMATION TECHNOLOGYMajor Initiatives Taken by Department of Information Technology in FY 2023-24 are:

a)    UCO Tab Banking Solution: With an aim to enrich the customers' banking experience and ease of access to banking services, bank has implemented UTBS (UCO Tab Banking Solution). Now Customers can avail facilities such as opening of Savings, Current, FDR, Recurring Deposit (RD), Senior Citizen Savings Account (SCSS) and apply for cheque book instantly through TAB banking solution.

b)    Bank's new revamped Website: Bank has revamped its corporate website to make it more feature rich and user friendly.

c)    Integration with VAHAAN Portal: Integration of API components with VAHAAN production environment has been completed. VAHAAN is the government portal that provides wide range of services relating to vehicle registration, permit and taxation etc.

d)    Integration with Jansamarth Portal: Bank has completed the integration with Jansamarth Portal. This portal facilitates beneficiaries to digitally ascertain the eligibility for Credit linked Government Schemes and receive digital approval.

e)    Integration with CGTMSE (Credit Guarantee Fund Trust for Micro and Small Enterprise) portal: Bank has integrated with CGTMSE portal to automate the process of obtaining guarantee coverage under this scheme.

f)    Integration with CERSAI portal: Integration with CERSAI portal to provide a better end user experience, ensure real time integration between CBS & CERSAI systems. This will ensure enhanced quality of data and seamless registration of security interest at CERSAI.

g)    Integration with Jansuraksha portal: Bank has completed integration with Jansurakhsa portal. This will automate enrolment and claim settlement process of Pradhan Mantri Jeevan Jyoti Bima Yojana(PMJJBY) and Pradhan Mantri Suraksha Bima Yojana(PMSBY) scheme.

h)    Implementation of Mobile Device Management Solution:

This is implemented to safeguard Banks' data on mobile device accessed over internet using Bank's email domain.

i)    Integration with UDGAM (Unclaimed Deposit Gateway to Access Information) portal: RBI has launched this centralized web portal, which Bank has successfully integrated, where all the information regarding unclaimed amount will be available at one place. With the help of this portal depositors can view information relating to their unclaimed deposits.

j)    Integration with KCC-ISS portal: This portal is developed by GOI to collect/access granular data of farmers/borrowers of KCC, including information about loan sanctioned and eligible interest subvention claims of the banks.

k) Online death claim module: Death Claims can now be

lodged by claimants through Online Death Claim Portal hosted in Bank's Website.

l)    Implementation of CTS One nation One grid project:

One Nation One Grid project- 16th October 2023 onwards, Service Branch Chennai is being the National Grid Branch. Inward and outward clearing is being routed through Chennai Service Branch only.

m)    Integration with Madhya Gujrat Vij Company Ltd. (MGVCL): Bank has integrated with MGVCL so that consumers of MGVCL can visit UCO Bank branch & pay their electricity bill through cash or transfer.

n)    Execution of Locker Agreement through NeSL DDE platform: With this process customer can execute locker agreement using his aadhaar details from anywhere, no need to visit branch physically.

o)    Development of Online facility for Application for Lockers & Execution of Locker Agreement:

•    Anyone willing to avail locker facilities in UCO Bank can apply from the UCO Bank Website also.

•    Separate workflow for Customers / New to Bank (NIB) Customers has been designed. ⁴

p)    Comprehensive & Integrated Global Treasury Management Solution (CIGTMS): Bank is in the process of implementing CIGTMS, which supports multi-currency transactions, along with Market Risk Solution for all Treasury products and surrounding Treasury IT applications to cater the needs of Treasury operations across all Geographies with Bank's presence.

q)    Next Generation NOC (Network Operation Centre): Bank is in the process of implementing NOC solution. This can be broadly divided into three parts;

i.    Automated Tools - for handling operation in network.

ii.    Through Artificial Intelligence proactive monitoring and mitigation.

iii.    Skilled resource for handling the NOC - specialized skilled resources will be deployed for handling network related operations.

r)    Application Whitelisting & Solution: Application whitelisting process aims to create an ecosystem where the deployment of the applications/software to all endpoints shall be done centrally and the end users shall be barred from installing/uninstalling any application/software.

s)    IT Asset Management Solution: IT Asset Management solution aims to catalogue, track and maintain Bank's IT Assets through centralized platform.

t)    Mera Account Meri Pehchan: Choice of Alias name for account number, facilitating single set of credentials for providing access to multiple applications or services.

17. DIGITAL BANKINGMajor Initiatives Taken:•    Introduction of Merchant Credit Card (MCC):

Bank launched Merchant Credit Card (MCC) for MSME borrowers in line with the announcement made by Hon'able Prime Minister. MCC provides easy finance in the form of Credit Card to eligible MSME borrowers, Instant Cash as well as augments and facilitates various Digital Transactions easily and securely.

•    Facility of ICCW (Interoperable Cardless Cash Withdrawal) through ATM as Issuer:

Bank has implemented Interoperable Cardless Cash Withdrawal (ICCW) facility, which enables the customer to withdraw money through other Bank ATM by using smartphone.

•    Enhancement in UPI:

> UPI Global Acquirer Mobile App for International QR scan

>    UPI Lite issuer mode in BHIM app, Gpay, PhonePe and Paytm app

>    UPI Lite Offline(X):

Now Customers can send and receive small value transactions upto Rs 500/- without using PIN. This has been made possible by efficient mode of UPI payment through NFC/Bluetooth communication in complete offline mode

>    Conversational UPI:

It is Conversational AI driven Payments for Seamless UPI Experience. It stimulates Human like responses by understanding voice command through which Users can securely initiate and complete payments using voice commands on IVR. Customers have to call at 08045163778 to avail the facility

•    Mahila Samman Savings Certificate:

Mahila Samman Savings Certificate has been launched by Govt. of India wherein individual women/minor girls can invest upto Rs. 2 lakh for a period of 2 years at an attractive rate of interest. Bank has provided facility to apply for Mahila Samman Savings Certificate through Bank's Mobile Banking App.

•    STP (Straight Through Process) Journeys for:

>    Pension Loan

>    Gold Loan Top-up and re-pledge

>    Modified Shishu Mudra for ETB & NTB Customers

•    PMJJBY & PMSBY enrolment with Jansuraksha Portal:

Bank has completed the integration with Janasuraksha Portal for enrolment of PMJJBY and PMSBY through Internet Banking and Mobile Banking.

•    Integration of new Direct Tax Collection system TIN 2.0 with Internet Banking: Bank has integrated its Internet Banking platform with revamped Tax Collection System i.e Tax Information Network 2.0 (TIN-2.0) as per directions of Income Tax Department.

•    On-boarding of Rajasthan SNA in Bank's SNA application

•    E-Banking credentials (User ID & Password) are being sent to customer's registered e-mail id, instead of sending physical PIN Mailer to the branches/customers.

•    HNI ASBA Facility has been made available in Internet Banking for enabling HNI customers to use ASBA facilities.

•    Installation of 361 new ATM/Cash Recycler in phased manner ⁵

•    Physical PIN mailer facility for Debit Card is discontinued for promoting Green PIN generation

•    Revamped UCO Mbanking Plus has been launched with Simplified user friendly GUI available with card view displaying all features in single screen providing a unique UI/UX experience for customers enhancing convenience and easier navigation.

•    UPI SDK Integration with Mobile Banking to provide enhanced user experience by providing UPI facility in Mobile Banking itself.

•    Revamped WhatsApp Banking is available in 5 languages (including Hindi, English, 3 regional languages ) & houses features like Account Information, Digital retail products, Apply for Loans, Digital Merchant, Govt. security Scheme enroll, Cheque book request, TDS certificate etc

•    Introduction of UPI 123 pay facility to customers for payment through basic phone through IVR channel (8045163777) without using Internet.

•    Onboarded total 21 new NBFCs on the Debt Platform having 93 pool accounts.

•    Migrated total 82 old pools including 56 old Retail pools and 26 old MSME pools in the Debt Platfom.

•    API integration with CBS and NBFC has been implemented in UGro Co-Lending.

18. CYBER SECURITY

•    Bank has set up State-of-the-Art Cyber Security Operations Center (CSOC), operational on 24⁵7 basis.

•    Bank has directly integrated with Threat Dissemination Platform (TDP) of CERT-In and NCIIPC.

•    To reinforce our Cyber Security capabilities, Bank's Cyber Security Operations Centre (CSOC) has forged a partnership with the Cyber Security Centre of Excellence, Govt. of West Bengal.

•    Bank has ISO 27001:2013 certification for IT Systems across Data Centres of the Bank. The Certification has been issued by International Standards Organization (ISO) and Bank has undergone a stringent evaluation process by an independent third-party assessor during the sustenance audit. The ISO 27001:2013 certification fosters trust and demonstrates an ongoing commitment for safeguarding customer data. ⁶

• To address cyber risks arising out of human vulnerability,

Bank puts concerted efforts in raising cyber awareness of

our staffs and customers through various cyber awareness

initiatives and campaigns.

>    Publication of Cyber Awareness Booklets like 'Phishing & Countermeasures' and 'Handbook on Cyber Security Awareness'.

>    Monthly observance of "Cyber Jagrookta Diwas" on the first Wednesday of every month with engaging workshops, interactive sessions, and creative events are organized for staff members & customers.

>    "Cyber Security" Dedicated Corner at Bank's Official Website (www.ucobank.com) for dissemination of Cyber Security Awareness messages.

>    Sharing of Cyber Security Awareness Email Advisories to Staff Members and Customers including newly on-boarded customers.

>    Daily Cyber Safety Tips as well as Weekly Jagrookta Series are shared to employees through email and internal messaging platform.

>    Promoting of Live Webinar, Customer Meets, Awareness Events through Offices & Branches.

>    Frequent uploading of Social Media Post, Cyber Awareness Videos, advisories, reels, memes as well as Retweet of Government posts like ISEA, CERT-In, CyberDost etc.

>    Display of Cyber Awareness Posters at Branch & ATM Premises, Metro Station, Digital Display Unit, Training Centres.

>    Display of Cyber Awareness Messages using Bank's Digital Channels like ATM Screen & Mobile Banking App, Official Website, E-Banking Portal, Finacle Ticker, Internal HRMS portal, UCO Online portal, Desktop Background & Screensaver (AD PC) etc.

>    Usage of Push Notification, SMS, Email, Broadcasting of Radio Jingles through 93.5 FM Radio Station.

>    Conducting of mock social engineering drills on periodic basis to evaluate the promptness of our staffs and onsite third party vendors, in detecting and reporting cyber incidents.

19. OPERATION AND SERVICES

The Bank recognises the need for constant improvement in customer experience and aims to enhance the quality of customer service so as to ensure that our customers feel that they are valued. Bank has therefore taken the following initiatives for improvement in customer experience in the Bank during the year 2023-24:

1. AI & ML enabled Next Gen Call Centre Solution UCO

Sampark 2.0 launched.

2.    Facility for Online Locker Application through Bank's Website and Locker Agreement execution through NeSL platform.

3.    Implementation of threshold limit in CBS as a precursor for close monitoring of customer account so as to prevent fraudulent transactions.

4.    Set up of Online Deceased Claim Settlement Portal for hassle free settlement of deceased claims.

5.    Implementation of Online Validation of PAN in CBS during on-boarding/ modification of Customer Id.

6.    Introduction of Welcome Kit for distribution amongst customers opening new CASA accounts.

7.    Root Cause Analysis of customer complaints conducted on continuous basis so as to identify the pain points and facilitate improvement in systems & procedures to prevent recurrence of such complaints.

8.    Improvement in operational efficiency of currency chests.

9.    Improvisation in system and control through augmentation of reconciliation system helping Bank to bring down TAT for resolution of disputes related to failed transactions, substantially.

10.    Improvement in cheque issuance and delivery process.

11.    Facility for Re-KYC to customers through SMS and Bank's Website for no change of KYC documents.

Bank is also implementing the following initiatives for further improvement in customer service:

Future Initiatives:

1.    Voice IVR based Call Centre Solutions.

2.    Revamped OGRS integrated with Contact Center and Chatbot.

3.    Improvement in CTS clearing mechanism with centralized outward clearing.

4.    Online Nomination Registration facility with Aadhaar based authentication

5.    Real Time validation of Aadhaar during onboarding/ modification of Customer Id.

6.    Digital Queue Management System.

20. STRATEGIC PLANNING: MIS & ADF CELL

Bank is having Management Information System (MIS) vertical for internal reporting as well as reporting to regulatory and various statutory bodies etc. The following are the new tools launched / Major Innovative features implemented:

a)    Implementation of EDW and Data Analytics project -UCO Insight

Implementation of EDW to provide:

1.    A Single Source of Truth by harmonization of data from various data sources.

2.    Create a base for Data Analytics.

3.    Ensure Data Accuracy & Integrity.

Implementation of Data Analytics:

1.    To help the Top management/ Bank in prompt and strategic decision making by historical trend analysis.

2.    To give a near real time picture of gap to target for various Key Performance Indicators (KPIs).

3.    Reducing the manpower cost significantly by removing manual preparation of the excel based data for trend analysis, gap analysis etc.

4.    Data driven Credit Offer (DDCO) will help in creating personalized credit offers by analyzing various data points such as credit history, income, spending patterns & demographic information.

a.    Machine learning to draw disposable income, average balance etc.

b.    By analyzing the transaction history, identification of EMI based loans, maintained with other banks, for take over leads.

5.    Prediction of Default: Collection Strategy propensity Model will help in understanding the customer's behavioural pattern regarding payment of dues and helping bank in making collection strategies to reduce probability of default.

b)    Implementation of Zonal Review Dash board.

A comprehensive utility report in MIS portal to help the Top management to review the Zones. It showcases the movement of business done by the zones under various business parameters vis -a- vis previous month-end/ Quarter-end/FY end. The major features are:

•    Shows the Fortnightly growth pattern for the zones under various parameters.

•    Provides the status of parameter wise growth status of zones over the Target.

Provides an insight into the business profile of any zone and will help the bank to understand the focus areas for respective zones.

c)    Implementation of Resource Dashboard (Live).

A tool developed by MIS department on the behest of Resources department. The major salient features are:

•    Live position of No. of Accounts opened and total deposit w. r. t. SB, CA, TD, RD, RDUSS, along with region-wise drill down

•    Breakup of Deposit: Domestic and Overseas as on Date

•    Bifurcation of Domestic Deposit as on date

• Top 5 Zones in CA (Live position)

• Top 5 Zones in SB (Live position)

•    Bottom 5 Zones in SB (Live position)

•    Maturity-wise Bifurcation of savings deposit- With drill down

•    Deposit Bifurcation: YTD

•    Amount-wise Distribution of Savings Deposit

•    Customer type-wise Distribution of Savings Deposit.

d)    Implementation of Daily Business Tracker.

It is an automated tool developed to share the daily/periodic performance under key parameters of Zones/ branches to the top management on daily basis.

e)    Implementation of 'UCO Focus' portal used for Data Cleansing purpose using 52 required parameters.

It is offsite tool to improve quality of compliances to various regulatory / statutory / internal policy based guidelines and also to improve data quality & integrity. The major salient features are:

•    Rectification of Non-compliance/ errors on an ongoing process; to improve the quality of data in CBS.

•    To avoid regulatory/ statutory penalties.

•    To identify System level / Policy level interventions.

f)    Implementation of Customer Connect portal.

A tool developed to capture the feedback of existing/ prospective customers which helps in understanding the needs/ aspiration of the customers and improve services, products & customer satisfaction.

21. CORPORATE COMMUNICATION

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

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

21.1    Publicity Campaigns:

Print Media/ Outdoor Media is an effective medium to connect to masses. The Bank has utilized it effectively by carrying out intensified and vigorous publicity campaigns throughout the year through hoardings, kiosks, traffic booths, banners, traffic cones, digital displays, magazines, newspapers etc.

During the brand publicity of the Bank, the Bank also ensures to publicize various banking products viz. Home Loan, Car Loan, Education Loan, Gold Loan, Deposit schemes, Digital Products, VKYC etc.

21.2    Celebration of 82nd Foundation Day:

The Bank completed 81 glorious years of service to the nation on 6th January, 2024. The occasion was celebrated with much enthusiasm and vigor across the country and overseas centers. Zonal Offices and branches across the country organized different activities viz. planting saplings, blood-donation camps, health check-up camps etc. A cultural programme was organized at Dhonodhanyo Auditorium, Alipore wherein staff members across the country participated and performed their talent.

21.3    Corporate Social Responsibility (CSR):

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

The Bank has 27 RSETIs (Rural Self Employment Training Institutes) spread across country to impart training and skill up-gradation of rural youth geared towards entrepreneurship development.

Some of CSR activities highlights are mentioned as under:

•    Contribution to food distribution initiative by Anna Sri program of ISKCON, Bangalore.

•    Contribution for purchase of 10 computers for Educational Institutions under the temple management of Arulmigu Dhandayuthapani Swamy Temple, Palani, Tamil Nadu.

•    Contribution for Chief Minister's Relief Fund, Himachal Pradesh for restoration of the losses due to the recent Natural Calamities in the State.

•    Contribution of e-rickshaws to Bihar Agriculture University, Sabour for movement of differently abled students, women & visitors in the campus.

•    Contribution towards iCreate's Corpus fund for fulfilling their operational requirements during the business incubation processes to empower the youth entrepreneurial excellence through innovation and technology towards the building of an Atmanirbhar Bharat & to transform business ideas into successful enterprises by supporting technology- led startups at all stages of a Mind- to-Market journey.

•    Contribution for Partnering in the "Cyber Safety Campaign" Odisha, 2023, organized by Odisha Police, CID Department under CSR in two districts i.e. Puri and Jagatsinghpur.

•    Contribution to Nimbark Math Seva Samiti Trust for distribution of spectacles and clothes for needy & vulnerable sections of the society.

•    For setting up wellness centres in Home Economics Training Centre (HETC), Jharpada, Laxmisagar, Bhubaneswar by Women & Child Development, Odisha.

•    Contribution of essentials like bedsheets, bucket mugs etc. to Kolkata Blind School on the eve of 82nd Foundation Day of Bank.

•    Contribution to FMR, Kolkata for Health & nutrition on the eve of 82nd Foundation Day of Bank.

•    Contribution to M/S Poornatha & Company for providing cohort training programme for Bank's MSME customers

•    Contribution of Chairs for Public Facilitation Centre (PFC) for the devotees visiting Ram Mandir, Ayodhya

•    Plantation of saplings during the Foundation Day Week 2024 of the Bank across the country.

•    Contribution to Lucknow University for 6-Seater EV cart.

•    Other small activities through Zonal Offices.

21.4    UCO TOWER:

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

21.5    Social Media:

The bank's social media cell has made significant strides in amplifying our brand presence and visibility through strategic content creation and engagement initiatives.

Social media team has been proactive in crafting compelling and informative posts that resonate with our target audience. By focusing on highlighting the bank's unique value propositions and product offerings, we have successfully raised awareness about our brand across various social media platforms.

Understanding the importance of maintaining a positive brand image online, our team has diligently monitored sentiment across social media channels. Through timely responses to customer inquiries, addressing concerns, and fostering positive interactions, we have effectively managed sentiment and cultivated a favorable perception of the bank among our online community.

Overall, social media efforts have not only bolstered brand awareness but have also contributed to strengthening customer relationships and fostering a positive brand reputation in the digital sphere. As we look ahead to the upcoming year, we remain committed to leveraging social media as a strategic tool for achieving our organizational objectives and delivering value to our stakeholders.

22. HUMAN RESOURCE

Human Resource Management Department comprises of various Cells looking after different segments. All these cells worked in tandem during FY 2023-24 to create a harmonious and productive work environment. Training and workshop were organized for improving/enhancing the skills and knowledge of the staff.

22.1    Manpower Management:

•    The Total staff strength as on 31st March, 2024 stood at 21456 employees including employees serving overseas. We have 13333 Officers, 5873 Clerks and 2250 Sub-Staff in our Bank as on 31 -03-2024.

•    Out of total staff of 21456, 4292 belong to SC, 1780 belong to ST, 5053 to OBC, 305 to EWS and 10,026 to UR category.

•    Out of total staff, 522 employees are person with bench mark disability (PwBD) and 1473 belong to the Minority Communities.

•    There are 6190 Women employees who constitute 28.85% of the Total Workforce as on 31st March, 2024.

22.2    IR Negotiation Cell:

During the period, the Industrial Relations climate in the Bank remained cordial between the Management and the Unions/ Associations. Meetings and discussions were held with Unions/ Associations at periodic intervals through mutually co-operative attitude and respect during the financial year 2023-24.

22.3    Recruitment Cell:

In the year 2023-24, Bank has recruited 428 Officers under Generalist and Specialist Cadre. Out of which 148 officers are females. 212 clerks have also been recruited during the financial year 2023-24. Out of total 212 clerks 45 are females. Bank also proposes to recruit 415 clerks for 2024-25 under CRP-XIII.

22.4    Training Cell:

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

In FY 2023-24, 810 Executives, 9635 Officers and 4408 SubStaff, totaling 14853 were trained in Internal & External Training Programs conducted at our Executive Training Centre, Kolkata, Central Staff College (CSC) situated at Kolkata and 6 other Regional Training Centers, across India and from Reputed External Training Institutions. We also continued to sponsor our Executives & Officers in reputed External Training Institutes like IIM Kozhikode, NIBM Pune, BIRD Lucknow, SBIL Kolkata, NIBSCOM Noida, CAB (RBI), IIBF, CAFRAL, Manipal University, IIBM Guwahati and various reputed external Training Institutes across the country which helped them in acquiring a global competitive edge.

In FY 2023-24 some important Training Programs like Annual Forex Assembly, Leadership and Management Development Program for Senior Management of Bank, , Customized Program on Banking Compliance, Awareness Program for Women on Workplace Safety, Annual Refresher Training of Security Officers, Customized Training Program on Women Empowerment, Digital Transformation & Change Management, Data Visualization and analytics, Preventive vigilance programme, Need based training for weak performers One to One coaching for senior officials and various customized training programmes across the country etc. were conducted.

Various webinar on Cyber Security/ Phishing Awareness Program were also organised for employees across branches/ offices.

In FY 2023-24, total of 618 employees were paid honorarium/ incentive for passing Bank approved courses.

22.5    APAR Cell:

•    Annual Performance Appraisal: As per extant guidelines, each Officer / Executive of the Bank is required to submit the Annual Performance Appraisal Report (APAR) in respect of his/her performance during the Financial Year ending 31st March every year. The same has been completed well in time.

•    Annual Property Return: Every Officer is required to submit Annual Property Return Statement as on 31st March every year and the same has been completed well in time.

•    Project Samsiddhi: Under Project Samsiddhi for Digital HR transformation of the Bank various tools like Role Clarity, Samsiddhi Scorecard, Target Setting, Appraisals, Data Upload & IT Workflow tool were launched and made live.

22.6    Internal Complaints Committee (ICC):

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

In terms of creating safe workplace environment for women our Bank has constituted Internal Complaints Committees at Apex level as well as Local Level enforcing the rules as laid out in the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 for quick Redressal of such complaints, if any. In FY 2023-24, no complaints were received.

22.7    Reservation Cell:

Bank has been implementing reservation, relaxation and other concessions extended to SC/ST/OBC / Differently Abled Persons and Ex-Servicemen employees as per reservation policy of the Government of India. The overall representation as on 31/12/2023 of SC/ST/OBC employees was 20.03 %, 8.31% and 23.39%. Separate roster registers are maintained for direct recruitment as well as for promotion. During internal promotion process for the FY 2023-24, , Bank has imparted pre-promotional training to 1910 candidates for inter-scale promotion of officers; 199 candidates for promotion from clerical to officers; and 252 candidates for promotion from sub - ordinate to clerical cadre belonging to SC/ST/OBC and PWD category.

For SC/ST employees, reservation cell is set up at HO level and across all ZO level as per Govt norms, functioning under the direct control of Chief Liaison Officer as well as Ex-officio Liaison Officer. Bank has imparted training to 640 SC & 245 ST candidates for inter-scale promotion of officers; 70 SC & 38 ST candidates from clerical to officers cadre and 149 SC & 27 ST candidates from sub staff to clerical cadre.

Bank has also formed separate OBC cell at HO level headed by Chief Manager at HO level as well as across all ZO which is functioning under the control of Chief Liaison Officer as well as Ex-officio Liaison officer. Bank has imparted training to 962 OBC candidates in inter-scale promotion of officers, 89 OBC candidates from clerical to officers and 72 OBC candidates from sub staff to clerical cadre.

Moreover Separate Grievance Redressal officer for PwBD and EWS employees has been created to look after their grievance. Bank has imparted pre- promotional training to 63 PwBD employees in inter-scale promotion of officers; 2 PwBD employee for promotion from clerical to officers; 4 PwBD candidates for promotion from sub staff to clerical.

In order to address the issues of SC/ST & OBC employees of the Bank, meetings are called at Apex level as well as at Zonal office level (Where reservation roster is maintained) with Welfare Association of such employees. An Internal Grievance Committee is functioning at Head office level for monitoring the grievances redressal of the employees belonging to SC/ST/ OBC/Ex-SM/PWD, which are handled and subsequently redressed by the respective cell, as per Bank's extant policy and guidelines. Bank Employee can submit their grievance through Online in HRMS module under Self Service- Raise Issue.

The Annual Statement in the prescribed format showing the representation of SCs, STs, OBCs, EWS and PWD as on 3112-2023 is given in Annexure-I & Annexure-II .

Note:

(i)    VH stands for visually Handicapped (Persons suffering from blindness or low vision).

(ii)    HH stands for Hearing Handicapped (persons suffering from hearing impairment).

(iii)    OH stands for Orthopedically Handicapped (persons suffering from locomotors disability or cerebral Palsy)

(iv)    ID stands for Intellectual Disability

23. AUDIT AND INSPECTION23.1    Risk Based Internal Audit (RBIA):

The periodicity of RBIA has been revised to make it more robust and Risk Rating of Branches are being analysed on regular intervals. In case of downgrade of Risk Rating of Branches (Low to Medium, Medium to High), necessary action is being initiated on the basis of Risk Rating parameters in order to protect the interest of the Bank. All Loan Processing Hubs (RLHs, ALHs & SMEs) have been brought under the purview of RBIA.

23.2    Short Audit:

A new type of Audit has been introduced and named as "Short Audit" which is carried out for such Branches not covered under any form of Audit (Concurrent, RBIA & Statutory Audit) in a Financial Year.

23.3    Management Audit:

The coverage of Management Audit has been expanded. Now all the Corporate Head Office Departments and Staff Training Colleges are covered under Risk Based Management Audit along with all the Zonal Offices.

23.4    Concurrent Audit:

Branch/Offices/Hubs and Asset Management Branches (AMBs) are covered under Concurrent Audit. In addition, Critical Departments of Head Office are also covered under the purview of Concurrent Audit.

23.5    Offsite Control & Surveillance (OCAS):

OCAS Cell under Audit & Inspection Department has been monitoring alerts generated by the system and accordingly compliance is submitted by the Branches to their respective Zonal Offices and Field Inspectorates. OCAS Cell is also monitoring transactions in various Office Accounts/Suspense Accounts through backend data mining.

23.6    Information System (IS) Audit:

An internal IS Audit Team has been formed to conduct Vendor, Site, Process & Change Management Audit in its initial phase.

23.7    Trainings:

In order to bridge the knowledge gap of personnel dealing with Inspection works, trainings were imparted to Mobile Inspectors/ Stationary Staffs, and Executives of the Department.

24. VIGILANCE

In the annually published CVC booklet on Preventive Vigilance Initiatives, certain select initiatives submitted by various organizations under CVC jurisdiction were published. It is a matter of pride that the initiative by UCO Bank found a place in the booklet for 'e-SAR-Online Tracking of Staff Accountability'. e-SAR leverages technology for end-to-end monitoring of staff accountability cases. Some of the benefits envisaged are (a) promotion of transparency and non-discretion, the pillars of effective vigilance administration-all cases will be examined without any preferential treatment and identification (b) Mitigation of Compliance Risk-adherence to time norms as set by regulatory authorities with regards to examination of staff accountability. (c) Employee Engagement-through protection of employee morale as no employee will be subjected to an agonizing long wait, while staff-accountability is being examined.

Several other preventive vigilance initiatives and systemic improvements were introduced through the year, as delineated below:

•    Transparency and monitoring of auction of pledged gold loan ornaments through systemic improvements like (a) Gold loan auction proceeds not to be received in cash, such that KYC of a customer is captured (b) introduction of an account closure menu to capture valuation amount with date, sanctioned amount, reserve price fixed and details of winning bidder (c) video recording of auction proceedings and its preservation.

•    Systemic improvements for cash management through (a) record of movement of the cash keys in Finacle with mandatory acknowledgement of key holder (b) manual feeding of cash balance at the end of the day into Finacle system after the cash register is signed (c) maintenance of record of surprise inspection in Finacle with central accessibility to monitoring authorities for real-time tracking.

•    Monitoring mechanism for issuance of show-cause through generation of a unique reference number for tracking to prevent resurfacing of a show-cause after an inordinate delay/ at the time of retirement because it was not brought to its logical conclusion.

•    Proposed systemic improvements to root out conflict of interest during empanelment of TPEs through declaration (b) one time option of providing family details in HRMS for easy access.

115 training programmes/ sessions on the subject of preventive vigilance were conducted during this FY. Vigilance Officers conducted 763 routine inspections of branches. 58 CTE procurement inspections were also conducted by the Vigilance Officers.

The theme given by the Commission for Vigilance Awareness Week for the Year 2023 [30.10.2023 to 05.11.2023] was 'Say no to corruption; commit to the Nation' and several outreach and in-house activities were undertaken by the Corporate Departments, Zonal offices and branches across the country.

Certain activities/ initiatives were:

•    2 Special outreach campaigns for wide publicity of (a) PIDPI (b) mobile number registration/ updation to prevent frauds. A special dashboard was launched to track mobile numbers registered during the campaign period. In-house videos on the same were displayed across electronic display boards, including at metro stations.

•    Seminar was held at Zonal Office, New Delhi, graced by Shri P. Daniel, Secretary Central Vigilance Commission and Dr. MP Tangirala, Additional Secretary, DFS.

•    In-house essay competition on the theme chosen by the Commission for VAW 2023, which saw 189 entries, and inhouse quiz competition on preventive vigilance and VAW themes wherein 1357 employees participated.

•    Walkathons and human chains were organized across the country including one at Bhubaneswar Zone which saw the participation of over 800 students and members of Odisha Police and Odisha Vigilance.

•    Outreach programmes were conducted in 171 schools and 37 colleges involving approximately 16600 students.

•    More than 217 Financial Literacy Camps/ Awareness Gram Sabhas were held across all Zones which saw the participation of approximately 13350 people, majority of them being women.

•    57 seminars/ customer meets were also held on the themes of preventive vigilance, cyber-security and banking awareness which saw very enthusiastic participation.

25. OFFICIAL LANGUAGE

The Bank has always been proactive in the implementation of the Official Language Policy of the Government of India. The Bank has taken appropriate follow up action to implement various items of the Annual Programme 2023-24 issued by the Government of India, Ministry of Home Affairs, Department of Official Language to transact the official work of the Union in Hindi and has made concerted efforts to achieve the targets set therein. The Bank complied with the directions given by the Third Sub-Committee of Parliamentary Committee on Official Language in course of Official Language inspection of branches/ offices in this financial year.

The Bank has been awarded the Rajbhasha Kirti Puraskar for the third consecutive year by the Department of Official Language, Ministry of Home Affairs, Government of India for its outstanding work in the field of progressive use of Official Language Hindi. During the financial year, many of our Zonal Offices also received the Regional Official Language Award from Govt. of India. Zonal Offices including Head Office organized UCO Bank G.D. Birla Smiriti Vyakhyanmala on various appropriate topics. UCO Rajbhasha Samman was given to the rank holders in Post-Graduation Hindi Examination. Popular Hindi programmes were also sponsored in various colleges/ universities by Zonal Offices with the objective of promoting Hindi and building the brand of the Bank.

25.1    Achievements:

•    The Government of India, Department of Official Language awarded the Rajbhasha Kirti Puraskar- Third to the Bank for the Financial Year 2022-23. The Managing Director and Chief Executive Officer of the Bank Shri Ashwani Kumar received the award on the occasion of Hindi Divas programme organized in Pune.

•    During the period, our 06 Zonal Offices received Regional Official Language Award from the Department of Official Language, Government of India for progressive use of Official language in different linguistic areas.

•    Our 05 Officers received awards in All India Inter-Bank Hindi Essay Writing Competitions organized by other nationalized banks including Reserve Bank of India.

25.2    Official Language Activities:

•    All India UCO Bank Official Language Officers Conference- A three-day 11th All India UCO Bank Official Language Officers Conference has been organized at the Regional Training Centre, Bhopal for the Official Language Officers of the Bank.

•    Hindi Training: Officers and employee were trained in Hindi through Hindi workshops organized by Head Office and Zonal Offices. Additionally, Official Language training has been provided to the Official Language Officers of Scale-1 and 2 at the Bank's Training Centre.

•    UCO Bank VIth All India Inter Bank Hindi Essay Competition- Panel Discussion cum Award Distribution Ceremony: The Bank organized the All India Inter Bank Hindi Essay Writing Competition-2023 on the topic 'Value and Ethics in Business' with the aim of promoting the use of the Official Language Hindi. The Panel Discussion cum Award Distribution program has been organized at the Bank's Training Centre.

•    A seminar on the topic 'Vishva-Bharati: Hindi: Hazari Prasad Dwivedi': A seminar was organized by TOLIC (Bank), Kolkata (Convenor-UCO Bank, Head Office) at Vishva-Bharati University, Shanti Niketan, Bolpur.

•    On the occasion of International Day of Disability-2023, an essay competition on the topic 'Social Service of Disabled Persons' was organized for the disabled employees of the Bank.

25.3    Publication:

Publication of the Bank's Hindi in-house magazine 'Anugoonj' on quarterly basis; publication of 'souvenir' on the occasion of Hindi Divas 3rd All India Official Language Conference, Pune; seminar organized at Vishva-Bharati University, Santiniketan; souvenir on Value Ethics in Business was published on the occasion of UCO Bank VI All India Inter Bank Hindi Essay Competition- 2023.

25.4    Official Language Inspection:

•    During the Financial Year 2023-24 the third sub-committee of Parliamentary Committee on Official Language visited eight of our Zonal Offices for Official Language inspection. The committee appreciated the efforts being made by the Bank for the progressive use of the Official Language Hindi.

•    An Official language inspection of a total of 34 member offices including TOLIC (Bank), Kolkata was conducted by the Drafting and Evidence Sub-Committee of the Parliamentary Committee on Official Language. The responsibility of coordination of this inspection program was undertaken by UCO Bank, Head Office.

•    Department of Financial Services, Ministry of Finance, Government of India conducted Official Language Inspection of Head Office. The Official Language related work of the Bank was appreciated by the Ministry.

•    Apart from this, 10 Zonal Offices and 14 Branches were inspected by the Regional Implementation Offices, Department of Official Language, Ministry of Home Affairs, Government of India.

26.    GENERAL ADMINISTRATION DEPARTMENT

Our Bank is committed towards promotion of renewable energy. As part of our commitment, we have installed Roof Top Solar panel of 30 KWP capacity at Executive Training Centre, NewTown. We have identified 30 Bank owned Building across the country for installation of roof top solar energy.

27.    COMPLIANCE

At UCO Bank, we recognize the importance of upholding strong relationships with regulatory bodies. We engage with regulators through various channels and activities to ensure compliance, promote transparency, and build trust. By aligning our strategic priorities, we aim to uphold fair customer treatment, mitigate risks, and promote a strong risk and compliance culture.

Regular meetings with regulatory bodies form an integral part of our engagement strategy. These meetings provide a platform for open dialogue, allowing us to address regulatory concerns, seek guidance, and share updates on our operations.

An independent Compliance Department headed by General Manager & Chief Compliance Officer has been set up by the bank which monitors adherence to various statutory and regulatory guidelines governing the bank's functioning.

The core function of the department is to ensure compliance of statutory, regulatory and Bank's internal guidelines for both domestic as well as overseas operations. The department is the single point of contact for RBI and ensures smooth conduct of Risk Based Supervision (RBS) as per prevalent SPARC framework.

Bank has a Board approved Compliance Function Policy which is framed in line with Reserve Bank of India guidelines and is reviewed & updated annually. The policy outlines the compliance philosophy of the Bank, role and set-up of the compliance vertical, composition of its staff and their specific responsibilities.

Compliance Department is also conducting periodic testing exercise to conform adherence and sustenance of RBI guidelines/instructions.

Bank has launched - UCO Focus (Framework for Offsite Compliance & Surveillance) - An offsite tool to improve quality of compliance to various regulatory/ statutory / internal policy based guidelines and also to improve data quality & integrity.

The Compliance Department is also overseeing compliance function of overseas establishments who follow their respective territory based compliance policies as well as KYC-AML-CFT Policies. Each overseas branch has a compliance officer to look after the respective compliance function. Overseas branches comply with the applicable regulatory requirements host country regulatory guidelines and submit confirmations / compliance sustainability reports.

28. BOARD OF DIRECTORS28.1    Corporate Governance

The Bank has a strong commitment to good Corporate Governance, which is based on its core values of transparency, professionalism, and accountability. By consistently emphasizing these values in its daily operations, the Bank seeks to increase shareholders' value. The Bank's Board of Directors has established various Committees of the Board to oversee every aspect of the Bank's business. The Bank's systems and business processes are regularly reviewed at different levels to identify and address any potential areas of weakness. The Board of Directors believes that good governance is essential for building trust, loyalty, and goodwill with clients, business partners, employees, and investors, as well as to have a respectable position in society at large.

28.2    Changes in the Board of Directors

•    Shri Subhash Shankar Malik has been appointed as parttime Non-Official Director w.e.f. 08.05.2023.

•    Shri Ashwani Kumar, joined as the MD and CEO of the Bank w.e.f. 01.06.2023.

•    Shri Vijaykumar Nivrutti Kamble joined as the Executive Director of the Bank w.e.f. 09.10.2023.

•    Shri. Pramoda Ranjan Mishra has been elected as the Shareholder Director of the Bank and has assumed office w.e.f. 01.02.2024

•    Shri Aravamudan Krishna Kumar has been appointed as Part-time Non-Official Director as well as Non-Executive Chairman, on the Board of UCO Bank w.e.f. 21.02.2024.

•    Shri Ishraq Ali Khan, Executive Director, retired from office on 30.04.2023.

•    Shri Soma Sankara Prasad, MD & CEO, retired from office on 31.05.2023.

•    The tenure of Shri K Rajivan Nair, Shareholder Director of the Bank, ended on 31.01.2024

28.4 Statement of Directors' Responsibility

The Board of Directors confirm that in the preparation of the annual accounts for the year ended March 31, 2024, the applicable accounting standards have been followed along with proper explanation relating to material departures, if any. The accounting policies framed in accordance with the guidelines of Reserve Bank of India, were consistently applied. Reasonable and prudent judgments and estimates were made so as to give a true and fair view of the state of affairs of the Bank at the end of the financial year and of the profit of the Bank for the year ended March 31, 2024. Proper and sufficient care was taken for the maintenance of adequate accounting records in accordance with the provisions of applicable laws governing banks in India; and the accounts have been prepared on an on-going basis. Internal financial controls have been laid down by the bank for ensuring orderly conduct of business.

28.5 Acknowledgements

The Board of Directors of the Bank welcomes Shri Aravamudan Krishna Kumar, Chairman, Shri Ashwani Kumar, MD and CEO, Shri Vijaykumar Nivrutti Kamble, Executive Director, Shri Subhash Shankar Malik, Part Time Non Official Director and Shri Pramoda Ranjan Mishra, Shareholder Director, nominated on the Board during the year 2023-24 and look forward for their valuable inputs towards the growth of the Bank. The Board acknowledges the valuable contributions of Shri Soma Sankara Prasad, Managing Director & CEO, Shri Ishraq Ali Khan, Executive Director & Shri K Rajivan Nair, Shareholder Director of the Bank, whose tenure completed during the financial year 2023-24.

The Board thank our customers, vendors, shareholders, business associates and correspondent banks for their continued support during the year. The Board remain thankful to the Government of India, Reserve Bank of India and other regulatory authorities for their support and valuable guidance and look forward to their continued support in the future.

The Board also thanks the staff unions/associations for the support extended by them. The Board place on record their deep appreciation for the dedication and contribution made by each employee at all levels. Our resilience to meet challenges was made possible by their hard work, solidarity, co-operation and support.

1

   Tie Up with M/s Fino Payment Bank Limited for Collection where bank has customized UCO Care Plus Scheme.

2

   Marketing and Wealth Management Department has identified lists of prospective customers by analytical study of Bank's existing customer base including identification of 3.40 lakhs priority customers as HNI segment. The prospective lists have been provided to branches and Zonal Offices from time to time for cross-selling of third party Products.

b)    Wealth Management:

Bank is having arrangements with one Fintech Company for providing online mode of Wealth Management transactions including opening of Mutual Fund, Demat A/c & Trading A/c for our customers. The facility is also available under UCO-Mbanking Plus App.

Department is also trying to introduce new Wealth Management Products for the benefit of our customers and to improve generation of non-interest income.

c)    Credit Card:

Bank is providing Credit Card facility to its customer on referral basis under tie up arrangement with SBI cards and payment services limited.

3

   Continuous follow up with ZO / Branches for CIBIL updation of the default borrowers.

4

   Applicant can check vacant locker status along with their annual rent before applying for a locker in a selected Branch.

5

   Installation of 500 new Passbook Printing Kiosks in phased manner

6

   Bank has Cyber Security Policy, Information Security Policy and Cyber Incident Response & Recovery Management Policy & Cyber Crisis Management Plan, to provide direction and support for cyber security related functions and operations within the Bank. The policies are updated on periodic basis as per guidelines received from the Regulatory Authorities.