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UCO Bank

BSE:532505  |  NSE:UCOBANKEQ  |  58888:ucob  |  IND:Banks - Public Sector  |  ISIN code:INE691A01018  |  SECT:Banks

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You can view full text of the Director's Report for UCO Ban.
Director Report
Mar2016   Mar 2017

18.3. Reservation Cell of Head office, HRM Department

Bank has been implementing reservation policy of Governments of India. Reservation and other relaxations and concessions extended to SC/ST/OBC / Differently abled persons and Ex-servicemen employees of our bank are strictly adhered. As per GOI guidelines, Bank has imparted Pre-promotion Training to 146 candidates (SC-62, ST-13, OBC-68 and PH-3) belonging to SC/ST and OBC category. In order to address the issues of SC/ ST and OBC employees of the bank, regular periodical meetings are being held at Apex level as well as at Zonal office level (where reservation roster is maintained) with Welfare Association of such employees. The grievances of such category of employees is heard in such meetings and subsequently grievances are redressed as per Bank''s policy guidelines.

The reservation cell participated in two review meetings with Shri Raju Parmar, the Hon''ble member, National Commission for Scheduled Castes at Raipur and Ahmadabad on 04.05.2016 and 05.11.2016 respectively. The observations were noted and Action Taken report was submitted to the Commission in time. The cell also participated in two review meetings with the Parliamentary Committee on welfare of OBC at Gangtok on 27.06.2016 and Parliamentary Committee on welfare of SC and ST at Kolkata on 21.10.2016.

Department of Financial Services (DFS) of Ministry of Finance examined the implementation of Reservation Policy of our bank for the year 2014 and 2015 along with Reservation Rosters/ Registers pertaining to SC/ST/OBC, Complaint Register and Guard file of our bank on 11.01.2017 at New Delhi. They found the implementation of reservation Policy in our bank as satisfactory.

18.4.Recruitment Cell

Bank has recruited 735 Officers during the year 2016-17. These 735 Officers (Including Specialist Officers as IT, AFO, Security, Law etc) comprise of 126 SC''s, 42 ST''s, 175 OBC''s and 221 women. Bank has reviewed and extended the service of Chief Customer Service Officer (Internal Ombudsman) for further one year on contractual basis. 1181 clerks have also been recruited during the year 2016-17 of which 163 are SC''s, 93 are ST''s, 306 are OBC''s, 336 are females and 14 clerks are Persons with Disabilities individuals.

18.5. 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 programmes in the concerned field. Bank has reviewed Training Policy with latest updates and infused value addition. During Financial Year 2016-17, emphasis was given for imparting Training to all sections of employees and organizing Vocational and Camp Based Training Programmes which are organized at Zonal Office level. 9433 Officers, 3615 Clerks and 504 Sub-staffs were Trained under in-house training programmes in CSC, Kolkata and Seven (7) RTCs of the Bank. Besides 647 Officers, 929 sub staffs were trained Vocationally at ZO Level across the country. This year a special one day training for newly promoted/converted HKPs (Housekeeper cum peon) were arranged.

Apart from general topics viz Credit Appraisal, NPA Management, Priority Sector Lending, LAPS, Unicode, CBS, Security Aspects, Managerial Skills, Operation in Finacle, Leadership Development etc, special topics viz Soft skills, Documentation, ADC, KYC, HR Issues etc. have been introduced in Training System. This year, complying with direction of the Competent Authority, specially designed Soft Skill Training has been introduced for Officers up to Scale III and Award Staffs at CSC/RTCs.

Bank has nominated 165 Officers/Executives to outside Training Institutes like NIBM PUNE, CAB PUNE, IIBM Guwahati, BIRD Luck now, IIBF Mumbai, IDRBT Hyderabad and many other Institutes for External Training. Specially designed Training Programmes on Leadership Development were conducted for newly promoted DGMs, AGMs & Chief Managers with External Training Institutes viz. IICA Manesar, ASCI Hyderabad and NIBM etc. Overseas Training also given to three of our Top Executive. Special programmes on Forex Management, Public Procurement, IFRS also conducted to create talent pool on the respective subjects. A system has also been designed for better capacity utilization of Training colleges. Bank has given utmost importance for nomination of right persons in Training. The selection of new Faculty Members for Training Colleges is under process.

19.AUDIT & INSPECTION

To ensure strict adherence to bank''s system & procedure, Risk Based Internal Audit has been conducted at 2331 branches and 995 branches have been covered under concurrent audit. In pursuance of audit findings, prompt corrective action has been initiated for rectification of irregularities including recovery of revenue leakages. A new policy termed as "Policy on Audit Committee of the Board" has been formulated to re-define specific functioning of the Audit Committee of the Board.

Amendments have been made in the current Inspection policy, for optimum utilization of inspection man days and as a cost control measure, to utilize 40% of man days to conduct offsite inspection of the allotted branch from the Head Quarter and rest 60% of the man days to be utilized for onsite inspection by the field inspectors.

Two training programmes have been conducted to update the knowledge and skill of newly inducted inspecting officers. More focus was given to make the mobile inspecting officers familiar with e-THIC package of Risk Based Supervision."

20.VIGILANCE DEPARTMENT

During the year Field Vigilance Officers posted at various Circle Offices have conducted Surprise Inspection at 396 branches to ensure that staff working at these branches is vigilant in following the Bank''s guidelines in their daily routine.

In May 2016, Hindi version of Bank Vigilance Manual called "SatarkataAnudesh" has been launched.

A number of preventive vigilance programmes were conducted at different centre’s to increase the awareness of staff on various aspects of misconduct and pitfalls associated with non adherence to rules and regulations of the Bank. This included a two days workshop for Vigilance officers at CSC - Kolkata during January 2017 which covered Vigilance Officers of all Circle and Zonal Offices.

This year the theme of Vigilance Awareness Week (celebrated in October/ Nov. 2016) was "Public Participation in promoting integrity and eradicating corruption". Various public meetings and seminars have been organized across the branches and administrative offices to make both the staff and public more vigilant and encourage them to counter corruption. Various competitions like essay debates etc. have been organized amongst staff members and school/College children. A Magazine "Victory of Vigilance" was also launched to increase awareness among staff members."

21.COMPLIANCE OF OFFICIAL LANGUAGE POLICY:

The Bank took proactive steps to implement the Official Language Policy of Govt. of India and took actions to comply with the provisions of the Official Language Act and the Rules made there under on continual basis. The Bank has also taken appropriate follow-up action to implement the directives as contained in the Annual Program with regard to the use of Official Language Hindi issued by Government of India, Ministry of Home Affairs, Dept. of Official Language and has regularly channelized its efforts to achieve the various targets involved. Taking a decision at top level in the first Quarter of this financial year, the Official Language officers posted at Official Language Dept., Head Office were given the responsibility of overseeing and guidance with regards to Official Language related assignments of the Departments of Head Office. The result of this approach was encouraging and an increased awareness has been evident in Departments as far as doing official work in Hindi is concerned.

The Third sub-Committee of the Parliamentary Committee on Official Language, during its Kolkata visit, conducted inspection with regard to the state of Official Language implementation at the Head Office of our Bank. It appreciated the efforts of our Bank for enhancement of usage of Hindi. The Drafting and Evidence Sub-Committee of the Parliamentary Committee on Official Language also conducted discussion with the Chairman (UCO Bank) of Town Official Language Implementation Committee (Banks), Kolkata and a few other Member Banks on 27th May, 2016. Being the Convener Bank of the TOLIC (Banks), Kolkata, many Official Language and other competitions were organized under the aegis of UCO Bank, Head Office and assistance was also provided to other Banks in organizing Hindi Programs.

UCO BANK, Head Office, the Convener of Town Official Language Implementation Committee (Banks), Kolkata has been awarded Third Prize of Eastern Region for excellent implementation of Official Language during the year 2015-16. Our Zonal Offices at Jorhat and Varanasi received First Prize while Zonal Office at Patna received Second Prize, awarded by the respective TOLICs for successful implementation of Official Language.

During the period under reference, the Circle / Zonal Offices organized Hindi workshops in the whole of India in which a great number of officers/staff were trained for work in Official Language, which involved a session on utilization of UNICODE and Lingua Bank. Along with the issues of the quarterly house-magazine "Anugoonj" published by Head Office, many Hindi e-magazines were also published by circles/zones. Besides, the Official Language officers posted at Circle and Zonal Offices conducted Official Language inspections of 903 branches/offices.

A five-day "Banking Oriented Training Programme" was organized at Central Staff College, Kolkata for the Official Language officers of the Bank from 30th May to 03rd June, 2016 in which the officers were acquainted with the modes of operation of general banking. Also, an All India Official Language Officers Conference was organized on 06th and 07th March, 2017 in the same premises. Moreover, an Official Language Awareness Programme was organized on 22.12.2016 for the executives posted at Head Office. Zonal Office, Pune conducted a Official Language Conference on DIGITAL INDIA on 02.03.2017. The Department consistently worked for making the Bank''s website in bilingual, duly updated according to the changes made in it from time to time.

Different programmes were conducted during the Hindi Month in the offices and branches of the Bank including Head Office. The Hindi Diwas Celebration at Head Office involved dance and musical presentations.

22.COMPLIANCE DEPARTMENT

Bank has emphasized on compliance issues mandated by RBI. Bank has been ensuring the level of customer service, functions and compliance of rules of deposits, advances, KYC/AML, STR CTR under PMLA Act, other services, submission of statutory/ regulatory reports, information and data asked by RBI, GOI, SEBI & IBA, etc. through a strict compliance system. Compliance policy was prepared incorporating necessary changes to prevent breaches in compliance and the same has been circulated throughout the bank after board approval. Test checking of compliance functions was undertaken in844 branches. Deficiencies observed are being rectified on the spot. Branches/ offices have been sensitized about compliance functions so as to avoid breaches. Critical issues were reported and discussed at appropriate level to enhance system efficacy. Interactions are also being held with Inspection & Risk management departments periodically to discuss compliance issues to arrive at measures to avoid recurrence thereof.

23.LEGAL MATTERS

Law Department has ensured with utmost diligence effective legal assistance in preparation of legal opinions, legal vetting, research and correspondence as required by bank from time to time. Policies on ''Settlement of Claims in respect of deceased account holders and missing persons'' and ''Schedule of Advocate Fees'' have been reviewed in line with industry standards and circularized. Policy on ''Empanelment of Advocates'' has been reviewed to include nomination of Standing Counsel and engagement of legal retainer as well. Twenty five (25) Circulars have been issued highlighting, inter alia, the recent and important judgments of the Hon''ble Supreme Court and various other High Courts in relation to its applicability for the Bank, recent amendments in SARFAESI Act 2002, establishment of Special Courts under Section 435 of Companies Act, 2013, constitution of the National Company Law Tribunal (NCLT) and the National Company Law Appellate Tribunal (NCLAT), information on the Insolvency and Bankruptcy Code, 2016 (IBC,2016). The claim lodged against the Bank before various fora of law are defended by the Bank meticulously. Branches/Zonal Offices/Circle Offices have been sensitized using step by step guide to take action under SARFAESI Act, 2002, strategies and guidelines for effective monitoring and follow-up of DRT cases in order to augment Bank''s recovery. Cases filed against various defaulting borrowers/ guarantors are closely followed up by the Bank.

24. Government Business:

Successfully implemented and operationalised Pradhan Mantri Garib Kalyan Yojana (PMGKY) and Pradan Mantri Garib Kalyan Deposit Scheme(PMGKYDS) in our Bank. Under PMGKDS 185 Declarants have deposited 6.43 Crores through our Bank. There is an increase of 8930 (38%) accounts in PPF and 6334 (420%) accounts in SukanyaSamriddhi Scheme in the FY2016-17.

Successfully operational zed Sovereign Gold Bond Scheme (SGB) Tranche IV, V, VI and VII at all our Branches. Our Bank earned Non-interest income of Rs,55.11 lacs by mobilizing 179.43 Kgs worth of Sovereign Gold Bonds amounting to Rs,55.11 crores in FY 2016-17. Achieved 19% (3.91Crore) Y-O-Y growth in Turnover commission on Government Business along with commission on SGB and APY.

Very old outstanding Pension Paid entries substantially reduced through consistent follow-up with Branches/Zones. Achieved 86% Aadhaar seeding in Central Pensioner''s accounts. Provision to accept Digital Life Certificates (DLC) from Pensioners have been successfully implemented at all Central Pension paying Branches. 20638 DLCs received during the FY 2016-17.

Online Subscriptions facility through internet Banking for Sovereign Gold Bonds & APY has been implemented. Facility of downloading SGB certificate by Branches through UCO Online has been implemented. 1851 Branches have been registered with PFRDA for National Pension System (NPS) All Citizen model. Regular updating of Corporate website with respect to all Govt. of India Schemes. LTA (Life Time Arrears) &Aadhaar seeding field have been integrated in GBM module.

25.Awards to Bank:

- UCO Bank was awarded "MSME EXCELLENCE AWARDS-2016" by CIMSME under the below mentioned category during Jan''17:

- Best Bank for Promotional Scheme under Mid-Sized Bank-Winner.

- UCO BANK has been conferred with Special Award by National Payments Corporation of India (NPCI), recognizing excellent performance of the Bank in in select parameters of various NPCI products.

- UCO BANK has been awarded the runners-up under the category of "Best Payments Initiatives" amongst mid-sized banks for the year ended 2016, by Indian Banks'' Association (IBA).

- UCO Bank has been awarded Skoch Order of Merit Award -2016 for MIS Dashboard App.

- UCO Bank has been awarded Skoch Order of Merit Award - 2016 for HRMS Mobile App.

26.FUTURE PLAN:

FY 2016-17 had been a testing year for the banking industry. The bank, honed its resources, devised its strategies to achieve sustainable and progressive business for the future years. Bank will continue its emphasis on retail business, mobilization of CASA, and NPA recovery. Bank intends to improve its momentum in priority sector advances, including Agriculture and MSME advances. To increase Non-interest income, Bank is aiming to mobilize more non-fund based business and aggressive sale of banc assurance. Bank, would also take all measures to reduce other operating expenses.

Reserve Bank of India (RBI), through its letter dated 05.05.2017, communicated its decision to put Bank under Prompt Corrective Action (PCA) in view of high Net NPA ad negative ROA. Under the PCA framework, the bank will take steps to reduce NPA and improve profitability. As a part of action plan to improve profitability, Bank strives to reduce cost of deposits by increasing CASA. Customer service will be improved and standardized. Bank''s competitive CASA and technology products will be instrumental in the process of improving deposit mix and hence in increasing NIM (Net Interest Margin).

Bank, emphasizes on rigorous follow-up of overdue accounts to avoid slippage. Capturing and analysis of Early Warning Signals (EWS) and initiating corrective measures in a time bound manner, Judicious use of tools like NPA Tracker (android based app), DAILYRP (finale report) etc by the field functionaries, and formation of dedicated team for credit monitoring at each tier will improve asset quality. Bank will also use Many Against One (MAO) approach to use collective strength to speed up NPA recovery. Soft NPAs will be targeted for speedy resolution.

Bank will focus on these key areas, by involving all staff members to contribute with rigour, for the bright future of Bank.

27.BOARD OF DIRECTOR

27.1. Corporate Governance

Bank firmly believes in and has consistently practiced good corporate governance woven around its core values of transparency, professionalism and accountability. By constantly focusing on these aspects in its day-to-day operations, the Bank strives to enhance shareholders'' value. The Bank being committed to the principles of good governance, its Board of Directors has formed various committees of the Board to monitor every aspect of Bank''s business. The systems and business processes of the Bank are continuously reviewed at various levels for identifying and strengthening areas of weaknesses, if any. The Directors of the Bank believe that good governance is the key to earn trust, loyalty and goodwill of clients, business associates, employees and investors and also to have respectable position in the society at large.

27.2. Changes in the Board of Directors

- Mr Sunil Kumar Maheshwari served as Part-time Non-official Director in the Board from 21.06.2013 to 20.06.2016.

- Mr Salahuddin Ansari served as Part-time Non-official Director in the Board from 26.06.2013 to 25.06.2016

- Mr Anil Sharma has been nominated as Part-time Non-official Director under CA Director category w.e.f.30.07.2016.

27.3. Meetings of the Board of Directors

During the financial year 2016-17, Bank had 10 meetings of the Board of Directors. The number of meetings of various other committees of the Board held during the year 2016-17 is given below:

Sl.No

Name of the Committee

No. of meetings held

1.

Management Committee of the Board

13

2.

Audit Committee of the Board

8

3.

Risk Management Committee of Board

4

4.

Stake holders'' Relationship Committee of the Board

2

5.

Share Transfer Committee of the Board

4

6.

Special Committee for Monitoring Large Value Frauds

5

7.

Customer Service Committee of the Board

4

8.

Committee on HR Related Issues of the Bank

Nil

9.

Nomination Committee of the Board

2

10.

Remuneration Committee of the Board

Nil

11.

Strategy Committee of the Board

5

12.

Board Level Committee for Monitoring Recovery in NPA Accounts

5

13.

Committee of the Board for Disposal of Appeal Cases

3

27.4. Statement of Directors'' Responsibilities

The Board of Directors confirm that in the preparation of the annual accounts for the year ended March 31, 2017, 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, 2017. 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. International financial controls have been laid down by the bank for ensuring orderly conduct of business.

27.5. Acknowledgements

The Board of Directors places on record its deep appreciation of the contributions made by outgoing Directors namely, Mr. Sunil Kumar Maheshwari and Mr Salahuddin Ansari. The Board welcomes the new Director, Mr Anil Sharma and looks forward to his valuable inputs towards growth of the Bank. The Directors remain thankful to the Government of India, Reserve Bank of India and other regulatory authorities for their support and valuable guidance. The Board also thanks other financial institutions and correspondent banks for their co-operation.

The Board of Directors expresses its gratitude to the loyal customers for their trust and continuous patronage of the Bank. The Board also thanks the staff unions/associations and shareholders of the Bank for the support extended by them. The Directors place on record their deep appreciation of the dedication shown by each employee of the Bank.

(R.K.Takkar)

Date: 3°,h May, 2017 Managing Director &

Place : Kolkata Chief Executive Officer

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