About
Union Bank of India
Union Bank of India is one of largest state-owned banks in India. The Bank is a listed entity and the Government of India holds 83.49 percent in Bank's Total Share Capital. The Bank has international presence with 3 overseas branches at Hong Kong, DIFC (Dubai) and Sydney (Australia). In addition, it has representative offices at Shanghai, Beijing and Abu Dhabi. It operate in United Kingdom through its wholly owned subsidiary, Union Bank of India (UK) Ltd.
Union Bank of India's portfolio of services include Retail Banking, Corporate/Wholesale Banking, Treasury Operations, Cash Management Services, Merchant Banking, Depository Services, Online Trading in Securities and Clearing Bank Services.
Union Bank of India was originally incorporated on November 11, 1919 in Mumbai with the name 'The Union Bank of India Ltd.' It was promoted by Seth Sitaram Poddar. In the year 1921, the Bank shifted their registered office to Mumbai Samachar Marg, Fort, Mumbai, which was inaugurated by Mahatma Gandhi. The Bank got into growth phase in the 1960's and they aligned their activities in line with the national priorities.
In July 19, 1969, the Bank was nationalised and the name of the Bank was changed to 'Union Bank of India'. Pursuant to nationalization, the Bank sponsored four regional rural banks in 1972. In the year 1975, Belgaum Bank Ltd, a private sector bank was amalgamated with the Bank.
In the year 2001, Staff Training College, Bangalore, the Bank's staff college acquired ISO 9001 certification. In the year 2002, the Bank undertook their initial public offer of equity shares and the equity shares were subsequently listed on the BSE and NSE. They introduced a new scheme called 'Union Express Remittance scheme' for providing service to NRI in West Asia. The Bank made a tie up with New India Insurance Company for market and distributed the products of New India Insurance Company on a commission basis. Also, they made a tie up with two IT companies to develop core-banking solutions.
In the year 2003, the Bank launched Core Banking Solution providing 'Anytime Anywhere Banking'. They launched 2 new schemes, namely NRI Foreign Currency Loans and Domestic Resident Foreign currency accounts for the benefit of NRI and FCNR (B) customers. The Bank signed an agreement with Corporation Bank to share their Cash Management System infrastructure. Also, they launched Union BillPay, a convenient utility bill payment service for their customers in association with Billdesk.
During the year 2004, the Bank opened the new representative offices at Dubai (UAE) & Doha (Qatar). They made a tie up with HDFC Standard Life for providing bank depositors an insurance cover under group policy with a target to bring in 50,000 customers under risk cover. Also, they entered into a banc assurance tie-up with the Export Credit Guarantee Corporation Ltd (ECGC) for marketing the latter's export credit insurance products.
In April 7, 2004, the Bank made an agreement with SBI Life Insurance Co Ltd to make available to the Bank's Home Loan borrowers' life insurance cover on group basis. They launched 'Union Miles Scheme', an exclusive two-wheeler finance scheme along with TVS Motor Company. They inaugurated their retail finance boutique at Ghatkopar (East) in Mumbai. During the year, the Bank was one of seven new Indian entrants to the Forbes 2000 list of the world's biggest and most powerful companies.
In the year 2005, the Bank launched Unioncard, which is international credit card and international debit card in association with VISA. They commenced clearing bank operations with the NSE and BSE for settlement of funds and securities obligations under Cash and Future and Options Segments. Also, they introduced Union White Card for dairy units.
During the year 2004-05, the Bank opened 23 new branches, 14 new Extension Counter and upgraded 23 Extension Counters into full-fledged branches. They made a tie up with Principal PNB Asset Management Company for distribution of their mutual fund schemes. Also, a study by ASSOCHAM Eco Pulse identified the Bank as 'number one in terms of return to investors' among banking stocks during fiscal 2005.
During the year 2005-06, the Bank opened 31 new branches, 6 extension counters and upgraded 5 extension counters into full fledged branches. The Bank jointly with Dena Bank made a tie-up with Small Farmers Agri-business Consortium (SFAC). Also, they made a tie-up with LIC to unveil group insurance.
During the year 2006-07, the Bank opened 124 branches including upgradation of 9 extension counters, mergers of 2 branches and conversion of one branch into Satellite Office. They launched the sale of gold coins of 99.99% purity in the denominations of 5 gm, 8 gm and 10 gm at competitive rates. The Bank and Bank of India joined hands with Infrastructure Development Finance Company Ltd for loan syndication.
During the year, the Bank entered into a MoU with IL&FS Ltd to establish a platform for providing banking and custodial-cum-demat services to Foreign Institutional Investors investing in the Indian capital market. Also, they entered into an MoU with Bank of India and Dai-Ichi Mutual Life Insurance Company, a leading insurance company of Japan for floating a joint venture insurance company in India.
During the year 2007-08, the Bank opened 155 branches, which included upgradation of 18 extension counters. They used alternate delivery channels such as ATMs, Internet Banking, Tele-Banking/ SMS banking as important tools to optimize the customer satisfaction. Also, they added 377 ATMs, taking the ATM network to 1,146 ATMs.
During the year, the Bank launched SMS Banking for providing various types of account information to customers through their mobile phones. In May 18, 2007, they opened their first Representative Office at Shanghai, Peoples Republic of China. In December 1, 2007, they opened a representative office at Abu Dhabi, UAE.
During the year 2008-09, the Bank opened 197 branches that included up-gradation of 48 extension counters and installed 644 ATMs. In May 7, 2008, the Bank opened their first full-fledged overseas branch in Hong Kong, which carries out normal commercial banking operations like acceptance of Deposits, Trade Finances, ECB and Syndicated loans.
During the year, a State of the art 70-seater advanced call centre became operational at Technology Centre, Powai (Mumbai). They launched new transaction products such as 'Prepaid Cards' (Gift and Power Pay cards), 'Online NEFT' for funds transfer through Internet Banking in addition to 'Online RTGS', thereby adding to the existing array of products to meet customer needs.
During Financial Year 2008-2009, the Bank launched Wealth Management Services for HNI clients through two service providers. Wealth Advisors Pvt. Ltd. is the Service Provider for the clients from South & North of India and Edelweiss Securities is the service provider for HNI clients from West & East of India. Also, they made a tie up with Emkay Securities for providing Online Trading Services to their valued clients.
During the year 2009-10, the Bank opened 247 new branches & 536 ATMs taking the total to 2805 branches and 2327 ATMs. As part of their global expansion initiatives, the Bank opened two representative offices at Sydney in Australia and Beijing in China. Also, they opened one Currency Chest at Azamgarh during the year.
During the year, the Bank forayed into acquiring business and started merchant enrollments across the country for installation of Point of Sale (POS) terminals accepting both VISA and MasterCard cards. Their JV Mutual Fund company 'Union KBC Asset Management Company' received in-principle approval from SEBI and their product is likely to be launched during the financial year 2010-11.
In April 1, 2010, the Bank opened a representative office in London. Also, they received approval from RBI for opening of branches at Shanghai (China) and Antwerp (Belgium) and representative offices at Johannesburg (South Africa) and Toronto (Canada).
During the year 2010-11, the Bank opened 211 branches, taking the total number of domestic branches to 3,015 branches. Also, they opened a branch in Hong Kong. The Bank added 307 automated teller machines to their network and issued more than 1.65 million debit cards.
During the year, the Bank received approval from the Reserve Bank of India for converting the representative office at Sydney into a branch and the representative office in London (UK) into a subsidiary. Also, the bank has approvals for opening a branch in Antwerp (Belgium) and representative offices at Johannesburg (South Africa) and Toronto (Canada).
On 3 January 2011, Union Bank of India announced that it has crossed a total global business of Rs 3.2 lakh crore as at the end of December 2010, registering a growth of 24.45%.
The Board of Directors of Union Bank of India at its meeting held on 5 March 2011 approved the issuance of up to 3.08 crore Equity Shares of face value of Rs. 10/- each at a premium of Rs. 344.94 aggregating up to Rs. 1,096/- crore to Government of India on preferential basis.
On 28 March 2011, Union Bank of India informed the stock exchanges that Securities and Exchange Board of India (Sebi) has issued Certificate of Registration to the subsidiary of Union Bank of India, 'Union KBC Mutual Fund', on 23 March 2011. Sebi has also granted its approval to the subsidiary of the bank 'Union KBC Asset Management Company Private Limited' to act as the Asset Management Company to 'Union KBC Mutual Fund'.
On 31 March 2012, Union Bank of India informed the stock exchanges that the bank after receipt of an amount of Rs. 650.30 crore from Life Insurance Corporation of India has allotted 2.62 crore Equity Shares of the face value of Rs. 10/- each at a premium of Rs. 238.05 to Life Insurance Corporation of India on preferential basis.
On 22 April 2014, Union Bank of India acting through its Hong Kong branch successfully priced a USD 350 million Reg S senior unsecured notes drawdown from its USD 2 billion Medium-Term Note Program.
Consequent to the receipt of capital funds from Government of India to the tune of Rs 1080 crore, Union Bank of India on 30 September 2015 issued and allotted 5.16 crore equity shares at an issue price of Rs 209.05 per equity share on preferential basis to Government of India.
On 20 September 2016, Union Bank of India completed the acquisition of 49% shareholding of Union KBC Asset Management Company Private Limited and Union KBC Trustee Company Private Limited from KBC Participations Renta S.A. and its affiliates. As a result of the aforesaid acquisition, Union KBC Asset Management Company Private Limited and Union KBC Trustee Company Private Limited have become wholly owned subsidiaries of the bank.
On 23 March 2017, Union Bank of India informed the stock exchanges that the bank has sold its entire stake of 5% (12.5 lakh shares) in TransUnion CIBIL Limited to TransUnion International Inc. (TUI). The deal was concluded on 22 March 2017 at the rate of Rs 1,525 per share for a total consideration of Rs 190.62 crore. On 4 August 2017, Union Bank of India issued and allotted 3.89 crore shares at issue price of Rs 138.76 per share on preferential basis to Government of India.
On 14 December 2017, Union Bank of India announced that the offer of QIP was oversubscribed and the bank has issued 12.93 crore shares aggregating to Rs 2000 crore to Qualified Institutional Buyers. The shares were allotted on 14 December 2017. The investors include Asset Management Companies, Insurance Companies and Foreign Intuitional Investors. The amount raised shall augment the capital adequacy and help in business expansion of the bank.
On 15 February 2018, Union Bank of India clarified to the stock exchanges that the bank through its foreign branches has been taking exposure with Punjab National Bank (PNB) as counter party under various Letters of Undertakings (LoU) issued through authenticated SWIFT message. The bank has also purchased some Buyers' Credit assets from Axis Bank through Risk Participation as a part of normal international business practice. The outstanding exposure related to the incident is approximately USD 300 million and the bank is fully secured by LoU/LC/other documents and fully confident to receive the payment.
On 31 January 2018, Union Bank of India informed the stock exchanges that the bank has sold its entire stake of 10% (1.4 crore unlisted equity shares) in Experian Credit Information Company of India Private Limited on 30 January 2018.
On 27 March 2018, Union Bank of India issued and allotted 31.28 crore equity shares at issue price of Rs 144.62 per share on preferential basis to Government of India.
On 18 May 2018, Union Bank of India announced that Dai-Ichi Life Holdings Inc., Japan has invested in Union Asset Management Company Private Limited through Compulsory Convertible Preference Shares (CCPS) on 17 May 2018 after obtaining requisite regulatory approvals. Through this investment, Dai-Ichi Life Holdings Inc. holds 39.62% share capital in Union AMC and consequently, Union AMC is now co-sponsored by Union Bank of India and Dai-Ichi Life Holdings Inc., Japan. As per investment and CCPS subscription agreements, Dai-Ichi Life Holdings Inc. will have an option to convert the CCPS into equity after certain fixed period.
During the fiscal 2018, total deposits increased to Rs 408502 crore as compared to Rs 378392 crore in the previous year with a annual growth of 8%.
As on 31 March 2018, the bank had a distribution network of 4301 branches and 13049 ATMs & micro ATMs across the country.
During FY2018, the Government of India infused a capital of Rs 4524 crore into the Bank and pursuant to this, the bank has allotted 31.28 crore equity shares of Rs 10 each at the price of Rs 144.62 per share to GOI. The bank also raised Rs 2000 crore through Qualified Institutional Placement(QIP) by allotting 12.93 equity shares of Rs 10 each at a price of Rs 154.65 per share.
As on 31 March 2018, the bank has 3 subsidiaries, one joint venture and one associate company under its roof.
During the fiscal 2019, total deposits increased to Rs 415915 crore as compared to Rs 408502 crore in the previous year with a annual growth of 1.8%.
During FY2019, the Government of India infused a capital of Rs 4112 crore into the Bank and pursuant to this, the bank has allotted 52.16 crore equity shares of Rs 10 each at the price of Rs 78.84 per share to GOI.
As on 31 March 2019, the bank has 4292 branches and 12236 ATMs & micro ATMs across the country.
Initiating major reforms in the PSBs, a mega amalgamation exercise had been taken up in FY 2020. Accordingly, 10 PSBs have been amalgamated into 4 Banks. As part of this initiative, Andhra Bank and Corporation Bank have been amalgamated into Union Bank of India, w.e.f. 01.04.2020, making the amalgamated entity, the 5th largest PSB in the country.
The amalgamation exercise aims to reap the economies of scale from increased branch network, customer base and synergies on account of cost rationalization & technological assimilation. After amalgamation, Union Bank shall become stronger with more than 9500 Branches, 13300 plus ATMs.
The Bank issued and allotted 165,98,02,538 equity shares on preferential basis to the Government of India, against the Capital infusion of Rs.11,768 crore at an issue price of Rs. 70.90 per share (including a share premium of Rs. 60.90 per share) on 30 November 2019. The shareholding of GoI now stands at 86.75% as on 31 March 2020.
Post merger of Andhra Bank and Corporation Bank with UBI, as on 31 December 2020, the bank had a distribution network of 9590 branches and 12961 ATMs across the country.
As on 31 December 2020, the bank has a strong network of 9590 domestic branches, 12961 ATMs and over 11700 BC points, serving over 120 million customers.
Gross Advances stood at Rs. 6,53,684 crore as on March 31, 2021. The global business of the Bank stood at Rs. 15,77,490 crore as on March 31, 2021. Total Deposits increased to Rs. 9,23,805 crore as on March 31, 2021.
The Bank has a network of 9312 branches and 3 overseas branches in Hong Kong, Sydney, Dubai, 12,957 ATMs across 29 States and 5 Union Territories as on March 31, 2021. Out of these 56% of the branches are located in rural and semi-urban centers.
As a part of mega consolidation of Public Sector Banks, Government of India vide gazette dated March 04, 2020 provided approval for amalgamation of Corporation Bank and Andhra Bank into Union Bank of India (Anchor Bank) and announced the said Amalgamation would be effective from April 01, 2020. The amalgamation have resulted in improving geographical penetration of Union Bank across the country. With the amalgamation, Union Bank became the 5th largest public sector Bank in terms of business with extensive network of offerings.
The global business of the Bank stood at Rs. 17,48,800 crore as on March 31, 2022. Total Deposits increased to Rs. 10,32,392 crore and Gross Advances stood at Rs. 7,16,408 crore as on March 31, 2022.
The Bank has a network of 8870 branches and 3 overseas branches, 11,232 ATMs across 29 States and 5 Union Territories as on March 31, 2022. Out of these 57% of the branches are located in rural and semi-urban centers.
The Global Business of the Bank stood at Rs. 19,27,621 crore as on March 31, 2023. Total Deposits increased to Rs. 11,17,716 crore and Gross Advances stood at Rs. 8,09,905 crore as on March 31, 2023.
The Bank has a network of 9315 branches and 3 overseas branches, 10,835 ATMs across 29 States and 5 Union Territories as on March 31, 2023.
Union Bank of India
Company History
Union Bank of India is one of largest state-owned banks in India. The Bank is a listed entity and the Government of India holds 83.49 percent in Bank's Total Share Capital. The Bank has international presence with 3 overseas branches at Hong Kong, DIFC (Dubai) and Sydney (Australia). In addition, it has representative offices at Shanghai, Beijing and Abu Dhabi. It operate in United Kingdom through its wholly owned subsidiary, Union Bank of India (UK) Ltd.
Union Bank of India's portfolio of services include Retail Banking, Corporate/Wholesale Banking, Treasury Operations, Cash Management Services, Merchant Banking, Depository Services, Online Trading in Securities and Clearing Bank Services.
Union Bank of India was originally incorporated on November 11, 1919 in Mumbai with the name 'The Union Bank of India Ltd.' It was promoted by Seth Sitaram Poddar. In the year 1921, the Bank shifted their registered office to Mumbai Samachar Marg, Fort, Mumbai, which was inaugurated by Mahatma Gandhi. The Bank got into growth phase in the 1960's and they aligned their activities in line with the national priorities.
In July 19, 1969, the Bank was nationalised and the name of the Bank was changed to 'Union Bank of India'. Pursuant to nationalization, the Bank sponsored four regional rural banks in 1972. In the year 1975, Belgaum Bank Ltd, a private sector bank was amalgamated with the Bank.
In the year 2001, Staff Training College, Bangalore, the Bank's staff college acquired ISO 9001 certification. In the year 2002, the Bank undertook their initial public offer of equity shares and the equity shares were subsequently listed on the BSE and NSE. They introduced a new scheme called 'Union Express Remittance scheme' for providing service to NRI in West Asia. The Bank made a tie up with New India Insurance Company for market and distributed the products of New India Insurance Company on a commission basis. Also, they made a tie up with two IT companies to develop core-banking solutions.
In the year 2003, the Bank launched Core Banking Solution providing 'Anytime Anywhere Banking'. They launched 2 new schemes, namely NRI Foreign Currency Loans and Domestic Resident Foreign currency accounts for the benefit of NRI and FCNR (B) customers. The Bank signed an agreement with Corporation Bank to share their Cash Management System infrastructure. Also, they launched Union BillPay, a convenient utility bill payment service for their customers in association with Billdesk.
During the year 2004, the Bank opened the new representative offices at Dubai (UAE) & Doha (Qatar). They made a tie up with HDFC Standard Life for providing bank depositors an insurance cover under group policy with a target to bring in 50,000 customers under risk cover. Also, they entered into a banc assurance tie-up with the Export Credit Guarantee Corporation Ltd (ECGC) for marketing the latter's export credit insurance products.
In April 7, 2004, the Bank made an agreement with SBI Life Insurance Co Ltd to make available to the Bank's Home Loan borrowers' life insurance cover on group basis. They launched 'Union Miles Scheme', an exclusive two-wheeler finance scheme along with TVS Motor Company. They inaugurated their retail finance boutique at Ghatkopar (East) in Mumbai. During the year, the Bank was one of seven new Indian entrants to the Forbes 2000 list of the world's biggest and most powerful companies.
In the year 2005, the Bank launched Unioncard, which is international credit card and international debit card in association with VISA. They commenced clearing bank operations with the NSE and BSE for settlement of funds and securities obligations under Cash and Future and Options Segments. Also, they introduced Union White Card for dairy units.
During the year 2004-05, the Bank opened 23 new branches, 14 new Extension Counter and upgraded 23 Extension Counters into full-fledged branches. They made a tie up with Principal PNB Asset Management Company for distribution of their mutual fund schemes. Also, a study by ASSOCHAM Eco Pulse identified the Bank as 'number one in terms of return to investors' among banking stocks during fiscal 2005.
During the year 2005-06, the Bank opened 31 new branches, 6 extension counters and upgraded 5 extension counters into full fledged branches. The Bank jointly with Dena Bank made a tie-up with Small Farmers Agri-business Consortium (SFAC). Also, they made a tie-up with LIC to unveil group insurance.
During the year 2006-07, the Bank opened 124 branches including upgradation of 9 extension counters, mergers of 2 branches and conversion of one branch into Satellite Office. They launched the sale of gold coins of 99.99% purity in the denominations of 5 gm, 8 gm and 10 gm at competitive rates. The Bank and Bank of India joined hands with Infrastructure Development Finance Company Ltd for loan syndication.
During the year, the Bank entered into a MoU with IL&FS Ltd to establish a platform for providing banking and custodial-cum-demat services to Foreign Institutional Investors investing in the Indian capital market. Also, they entered into an MoU with Bank of India and Dai-Ichi Mutual Life Insurance Company, a leading insurance company of Japan for floating a joint venture insurance company in India.
During the year 2007-08, the Bank opened 155 branches, which included upgradation of 18 extension counters. They used alternate delivery channels such as ATMs, Internet Banking, Tele-Banking/ SMS banking as important tools to optimize the customer satisfaction. Also, they added 377 ATMs, taking the ATM network to 1,146 ATMs.
During the year, the Bank launched SMS Banking for providing various types of account information to customers through their mobile phones. In May 18, 2007, they opened their first Representative Office at Shanghai, Peoples Republic of China. In December 1, 2007, they opened a representative office at Abu Dhabi, UAE.
During the year 2008-09, the Bank opened 197 branches that included up-gradation of 48 extension counters and installed 644 ATMs. In May 7, 2008, the Bank opened their first full-fledged overseas branch in Hong Kong, which carries out normal commercial banking operations like acceptance of Deposits, Trade Finances, ECB and Syndicated loans.
During the year, a State of the art 70-seater advanced call centre became operational at Technology Centre, Powai (Mumbai). They launched new transaction products such as 'Prepaid Cards' (Gift and Power Pay cards), 'Online NEFT' for funds transfer through Internet Banking in addition to 'Online RTGS', thereby adding to the existing array of products to meet customer needs.
During Financial Year 2008-2009, the Bank launched Wealth Management Services for HNI clients through two service providers. Wealth Advisors Pvt. Ltd. is the Service Provider for the clients from South & North of India and Edelweiss Securities is the service provider for HNI clients from West & East of India. Also, they made a tie up with Emkay Securities for providing Online Trading Services to their valued clients.
During the year 2009-10, the Bank opened 247 new branches & 536 ATMs taking the total to 2805 branches and 2327 ATMs. As part of their global expansion initiatives, the Bank opened two representative offices at Sydney in Australia and Beijing in China. Also, they opened one Currency Chest at Azamgarh during the year.
During the year, the Bank forayed into acquiring business and started merchant enrollments across the country for installation of Point of Sale (POS) terminals accepting both VISA and MasterCard cards. Their JV Mutual Fund company 'Union KBC Asset Management Company' received in-principle approval from SEBI and their product is likely to be launched during the financial year 2010-11.
In April 1, 2010, the Bank opened a representative office in London. Also, they received approval from RBI for opening of branches at Shanghai (China) and Antwerp (Belgium) and representative offices at Johannesburg (South Africa) and Toronto (Canada).
During the year 2010-11, the Bank opened 211 branches, taking the total number of domestic branches to 3,015 branches. Also, they opened a branch in Hong Kong. The Bank added 307 automated teller machines to their network and issued more than 1.65 million debit cards.
During the year, the Bank received approval from the Reserve Bank of India for converting the representative office at Sydney into a branch and the representative office in London (UK) into a subsidiary. Also, the bank has approvals for opening a branch in Antwerp (Belgium) and representative offices at Johannesburg (South Africa) and Toronto (Canada).
On 3 January 2011, Union Bank of India announced that it has crossed a total global business of Rs 3.2 lakh crore as at the end of December 2010, registering a growth of 24.45%.
The Board of Directors of Union Bank of India at its meeting held on 5 March 2011 approved the issuance of up to 3.08 crore Equity Shares of face value of Rs. 10/- each at a premium of Rs. 344.94 aggregating up to Rs. 1,096/- crore to Government of India on preferential basis.
On 28 March 2011, Union Bank of India informed the stock exchanges that Securities and Exchange Board of India (Sebi) has issued Certificate of Registration to the subsidiary of Union Bank of India, 'Union KBC Mutual Fund', on 23 March 2011. Sebi has also granted its approval to the subsidiary of the bank 'Union KBC Asset Management Company Private Limited' to act as the Asset Management Company to 'Union KBC Mutual Fund'.
On 31 March 2012, Union Bank of India informed the stock exchanges that the bank after receipt of an amount of Rs. 650.30 crore from Life Insurance Corporation of India has allotted 2.62 crore Equity Shares of the face value of Rs. 10/- each at a premium of Rs. 238.05 to Life Insurance Corporation of India on preferential basis.
On 22 April 2014, Union Bank of India acting through its Hong Kong branch successfully priced a USD 350 million Reg S senior unsecured notes drawdown from its USD 2 billion Medium-Term Note Program.
Consequent to the receipt of capital funds from Government of India to the tune of Rs 1080 crore, Union Bank of India on 30 September 2015 issued and allotted 5.16 crore equity shares at an issue price of Rs 209.05 per equity share on preferential basis to Government of India.
On 20 September 2016, Union Bank of India completed the acquisition of 49% shareholding of Union KBC Asset Management Company Private Limited and Union KBC Trustee Company Private Limited from KBC Participations Renta S.A. and its affiliates. As a result of the aforesaid acquisition, Union KBC Asset Management Company Private Limited and Union KBC Trustee Company Private Limited have become wholly owned subsidiaries of the bank.
On 23 March 2017, Union Bank of India informed the stock exchanges that the bank has sold its entire stake of 5% (12.5 lakh shares) in TransUnion CIBIL Limited to TransUnion International Inc. (TUI). The deal was concluded on 22 March 2017 at the rate of Rs 1,525 per share for a total consideration of Rs 190.62 crore. On 4 August 2017, Union Bank of India issued and allotted 3.89 crore shares at issue price of Rs 138.76 per share on preferential basis to Government of India.
On 14 December 2017, Union Bank of India announced that the offer of QIP was oversubscribed and the bank has issued 12.93 crore shares aggregating to Rs 2000 crore to Qualified Institutional Buyers. The shares were allotted on 14 December 2017. The investors include Asset Management Companies, Insurance Companies and Foreign Intuitional Investors. The amount raised shall augment the capital adequacy and help in business expansion of the bank.
On 15 February 2018, Union Bank of India clarified to the stock exchanges that the bank through its foreign branches has been taking exposure with Punjab National Bank (PNB) as counter party under various Letters of Undertakings (LoU) issued through authenticated SWIFT message. The bank has also purchased some Buyers' Credit assets from Axis Bank through Risk Participation as a part of normal international business practice. The outstanding exposure related to the incident is approximately USD 300 million and the bank is fully secured by LoU/LC/other documents and fully confident to receive the payment.
On 31 January 2018, Union Bank of India informed the stock exchanges that the bank has sold its entire stake of 10% (1.4 crore unlisted equity shares) in Experian Credit Information Company of India Private Limited on 30 January 2018.
On 27 March 2018, Union Bank of India issued and allotted 31.28 crore equity shares at issue price of Rs 144.62 per share on preferential basis to Government of India.
On 18 May 2018, Union Bank of India announced that Dai-Ichi Life Holdings Inc., Japan has invested in Union Asset Management Company Private Limited through Compulsory Convertible Preference Shares (CCPS) on 17 May 2018 after obtaining requisite regulatory approvals. Through this investment, Dai-Ichi Life Holdings Inc. holds 39.62% share capital in Union AMC and consequently, Union AMC is now co-sponsored by Union Bank of India and Dai-Ichi Life Holdings Inc., Japan. As per investment and CCPS subscription agreements, Dai-Ichi Life Holdings Inc. will have an option to convert the CCPS into equity after certain fixed period.
During the fiscal 2018, total deposits increased to Rs 408502 crore as compared to Rs 378392 crore in the previous year with a annual growth of 8%.
As on 31 March 2018, the bank had a distribution network of 4301 branches and 13049 ATMs & micro ATMs across the country.
During FY2018, the Government of India infused a capital of Rs 4524 crore into the Bank and pursuant to this, the bank has allotted 31.28 crore equity shares of Rs 10 each at the price of Rs 144.62 per share to GOI. The bank also raised Rs 2000 crore through Qualified Institutional Placement(QIP) by allotting 12.93 equity shares of Rs 10 each at a price of Rs 154.65 per share.
As on 31 March 2018, the bank has 3 subsidiaries, one joint venture and one associate company under its roof.
During the fiscal 2019, total deposits increased to Rs 415915 crore as compared to Rs 408502 crore in the previous year with a annual growth of 1.8%.
During FY2019, the Government of India infused a capital of Rs 4112 crore into the Bank and pursuant to this, the bank has allotted 52.16 crore equity shares of Rs 10 each at the price of Rs 78.84 per share to GOI.
As on 31 March 2019, the bank has 4292 branches and 12236 ATMs & micro ATMs across the country.
Initiating major reforms in the PSBs, a mega amalgamation exercise had been taken up in FY 2020. Accordingly, 10 PSBs have been amalgamated into 4 Banks. As part of this initiative, Andhra Bank and Corporation Bank have been amalgamated into Union Bank of India, w.e.f. 01.04.2020, making the amalgamated entity, the 5th largest PSB in the country.
The amalgamation exercise aims to reap the economies of scale from increased branch network, customer base and synergies on account of cost rationalization & technological assimilation. After amalgamation, Union Bank shall become stronger with more than 9500 Branches, 13300 plus ATMs.
The Bank issued and allotted 165,98,02,538 equity shares on preferential basis to the Government of India, against the Capital infusion of Rs.11,768 crore at an issue price of Rs. 70.90 per share (including a share premium of Rs. 60.90 per share) on 30 November 2019. The shareholding of GoI now stands at 86.75% as on 31 March 2020.
Post merger of Andhra Bank and Corporation Bank with UBI, as on 31 December 2020, the bank had a distribution network of 9590 branches and 12961 ATMs across the country.
As on 31 December 2020, the bank has a strong network of 9590 domestic branches, 12961 ATMs and over 11700 BC points, serving over 120 million customers.
Gross Advances stood at Rs. 6,53,684 crore as on March 31, 2021. The global business of the Bank stood at Rs. 15,77,490 crore as on March 31, 2021. Total Deposits increased to Rs. 9,23,805 crore as on March 31, 2021.
The Bank has a network of 9312 branches and 3 overseas branches in Hong Kong, Sydney, Dubai, 12,957 ATMs across 29 States and 5 Union Territories as on March 31, 2021. Out of these 56% of the branches are located in rural and semi-urban centers.
As a part of mega consolidation of Public Sector Banks, Government of India vide gazette dated March 04, 2020 provided approval for amalgamation of Corporation Bank and Andhra Bank into Union Bank of India (Anchor Bank) and announced the said Amalgamation would be effective from April 01, 2020. The amalgamation have resulted in improving geographical penetration of Union Bank across the country. With the amalgamation, Union Bank became the 5th largest public sector Bank in terms of business with extensive network of offerings.
The global business of the Bank stood at Rs. 17,48,800 crore as on March 31, 2022. Total Deposits increased to Rs. 10,32,392 crore and Gross Advances stood at Rs. 7,16,408 crore as on March 31, 2022.
The Bank has a network of 8870 branches and 3 overseas branches, 11,232 ATMs across 29 States and 5 Union Territories as on March 31, 2022. Out of these 57% of the branches are located in rural and semi-urban centers.
The Global Business of the Bank stood at Rs. 19,27,621 crore as on March 31, 2023. Total Deposits increased to Rs. 11,17,716 crore and Gross Advances stood at Rs. 8,09,905 crore as on March 31, 2023.
The Bank has a network of 9315 branches and 3 overseas branches, 10,835 ATMs across 29 States and 5 Union Territories as on March 31, 2023.
Union Bank of India
Directors Reports
Dear Shareholders,
The Board of Directors is pleased to present the 104th Annual Report of
your Bank for the Financial Year 2022-23 together with the 'Audited Balance Sheet',
'Profit & Loss Account', 'Cash-Flow Statement', and the report on 'Management
Discussion & Analysis'. The 'Corporate Governance Report' and 'Business Responsibility
and Sustainability Report' also form part of the Annual Report 2022-23.
1. Highlights:
1.1 India's economic growth remained resilient in FY 2022-23. According
to the provisional estimates by National Statistical Office (NSO), India's gross domestic
product (GDP) is estimated to grown at 7.2% for FY 2022-23, driven by private consumption
and investment. On the supply side, activity was supported by the agriculture and services
sectors, while manufacturing was restrained under the pressure of high input costs. A slew
of data, from services activity to bank credit, pointed to a pick-up in demand during FY
2022-23. The growth in GDP at current prices, or nominal GDP, during FY 202223 is
estimated at 16.1% on annual basis.
1.2 There was positive growth across all sectors, with services like
trade, tourism, and hospitality driving momentum. Enabling government policies are
expected to further catapult these sectors towards an upward growth trajectory. Consumer
activity was encouraging, with growth in non-food bank credit rising to 15.4% as at
end-March 2023 from 9.7% a year ago. Liquidity conditions slipped into periods of the
deficit as deposit growth lagged credit. Merchandise exports have registered the
highest-ever annual exports of USD 447.46 billion with 6.03% growth during FY 2022-23,
surpassing the previous year's (FY 2021-22) record exports of USD 422.00 billion. Exports
are growing despite global challenges such as the rise in raw material prices,
restrictions on exports of certain products, and the Russia-Ukraine war.
1.3 Consumer price index (CPI) inflation persisted at elevated levels
during FY 2022-23, impacted by a series of adverse supply shocks and the continuing
pass-through of high input costs. The Monetary Policy Committee (MPC) of the Reserve Bank
of India (RBI) increased the policy repo rate by 250 basis points from May 2022-February
2023, and monetary policy remains focused on progressively
aligning inflation with the target while supporting growth.
1.4 Going forward, India's economic rebound faces difficult challenges
from the legacy of structural bottlenecks as well as the scars of the pandemic. The
Russia-Ukraine conflict has also dampened the momentum of recovery, with its impact
transmitting through record-high commodity prices, weaker global growth outlook, and
tighter global financial conditions. Concerns surrounding de-globalization impacting
future trade, capital flows, and supply chains have amplified uncertainties for the
business environment.
1.5 While global economic prospects have improved modestly compared to
a few months ago, the outlook is highly uncertain again amid financial sector turmoil,
high inflation and ongoing effects of Russia Ukraine war. According to the International
Monetary Fund's (IMF's) April 2023 update of the World Economic Outlook (WEO), global
growth is expected to moderate from 3.4% in 2022 to 2.8% in 2023, and 3.0% in 2024, with a
sharper deceleration projected for advanced economies (AEs) relative to Emerging Market
And Developing Economies (EMDEs). Global headline inflation is set to fall from 8.7% in
2022 to 7.0% in 2023 on the back of lower commodity prices, but core inflation is likely
to decline more slowly. Alongside this, global trade is expected to decelerate in 2023.
Elevated inflation levels are a looming challenge complicating the trade-offs that central
banks are faced with between containing inflation and boosting economic growth.
1.6 The IMF predicts Asia-Pacific's GDP to expand by 4.6% in 2023 after
growing 3.8% in 2022. China and India are expected to contribute around half of global
growth in 2023, with the rest of Asia and the Pacific contributing an additional fifth.
1.7 Notwithstanding economic uncertainties triggered by the
Russia-Ukraine war, India will remain the fastest-growing economy in the world. As per the
IMF, India is projected to expand by 5.9% in 2023 and further by 6.3% in 2024. The Reserve
Bank of India (RBI) has pegged the economic growth estimate for 2023-24 at 6.5%. The
higher rabi production has brightened the prospects for the agriculture sector and rural
demand. The steady growth in contact-intensive services should be positive for urban
demand. The government's focus on capital
expenditure, capacity utilization above the long- period average, and
moderating commodity prices should bolster manufacturing and investment activity. Given
the reforms undertaken by the government and the various supportive measures by the RBI, a
very strong foundation is being laid for a further rapid increase in economic growth in
the coming years. The Union Budget 2023-24 has provided for a sharp increase in public
investment and capital expenditure. The various government initiatives are seen to be
supporting growth, and credit demand is expected to remain robust in FY 2023-24.
2. Bank's Performance
Established in the year 1919, your Bank has 8577 domestic branches,
10,835 ATMs across 29 States and 5 Union Territories, and 75,594 employees as on March 31,
2023.
The Bank has 3 overseas Branches at Hongkong, Sydney, Dubai DIFC, 5
wholly owned Subsidiaries, 3 Joint Ventures and 1 Associate Organization.
The global business of your Bank stood at '19,27,621 crore as on March
31, 2023 which comprises of total deposits of '11,17,716 crore and gross Advances of
'8,09,905 crore.
The operating profit and net profit of the Bank stood at '25,467 crore
and '8,433 crore respectively as on March 31, 2023.
3. Digitization:
Project Sambhav: Implementation of Digital Business Platform
To capture the growing digital business & to build a strong digital
ecosystem/architecture, your Bank has launched Project Sambhav. As part of Project
Sambhav, your Bank has designed a detailed roadmap on Digital Transformation for building
a Digital Bank within Bank, which includes:
a. Digital strategy aligned with the business vision and Digital
Banking Policy.
b. Vyom upgradation with seamless Omni channel experience &
enhanced UI/UX to offer best-inclass journey experience.
c. Ecosystem Partnerships
d. Building Digital Platform with Cloud-ready architecture grounds- up
build digital channels, APIs, microservices, and modern engineering practices
e. Data & Analytics Platform Services
f. Collaboration with Fintechs to offer new digital products.
Your Bank has rolled out 20+ digital journeys & partnered with 90+
fintechs to launch quick Go-to- Market journeys, thus reducing the timelines for rolling
out the products.
Thrust was given to projects which are part of regulatory requirements,
the EASE Reforms Agenda, as well as requests received from within your Bank.
Launch of Vyom App
Your Bank has given top priority and facelifted the existing Mobile
Banking application with feature enhancements, thereby providing ease and comfort to
customers.
The mobile banking application of your Bank has been rebranded as
"VYOM" and launched on your Bank's
Foundation Day dated 11.11.2022. VYOM offers 350+ features with
explorative UI/UX design to increase engagement and offers a unique banking experience.
The application offers lifestyle Banking (marketplace), where the customer can book
Flight, Cabs, and Bus tickets, purchase Gift Cards, recharge mobile DTH & Data cards
and book Hotels, and also make a donation. Your Bank has also incorporated Mutual Funds,
Insurance, and various STP journeys in the VYOM app.
More than 21 million Customers are registered on Vyom with 2.1 million
daily logins.
Launch of Vyom App by MD & CEO Registrations on Vyom
(In lakhs)
Mar-22 |
During
the FY |
Cumulative |
|
2022-23 |
Performance-
as on |
|
|
31.03.2023 |
164.71 |
48.43 |
213.14 |
Digital Journeys
Digital solutions for Mutual Funds & Insurance business 0
I#
Mutual Fund Union Invest
With an objective to increase the fee-based income, your Bank has
launched a digital solution for Mutual Funds sales through Bank's Mobile App and Net-
Banking channels (in addition to providing paperless transactions at branches) and the
same is in the initial phase.
Insurance Union Insure
As a one-stop solution for Life, Non-Life, and Health Insurance
products, your Bank has launched a digital solution for the Insurance business, and the
same is in the initial phase.
CRM Solutions
Your Bank has started implementing Customer Relationship Management
(CRM) solution to provide a unified customer experience and better customer satisfaction.
As part of the phase-wise implementation of CRM solutions, the Lead Management Solution
(LMS) has been made live in Q4 FY 22-23 for all the Marketing Officers, Retail Loan
Points, MSME Loan Points, all branches & Admin Offices. The Customer 360o beta testing
has been made live for branches of Regional Office Andheri and shall be made live in the
Q1 FY 23-24.
Account Aggregator
Union Bank of India is the first Public Sector Bank to integrate with
Account Aggregator (AA) ecosystem. Your Bank has onboarded 5 AAs. The Bank has taken up
two use cases - GeM Sahay and GST Sahay for implementation under the OCEN framework.
Digital Lending & Review/Renewal Journeys
Our Bank has rolled out 20+ Digital Journeys covering both assets and
liability products. From these journeys, your Bank could sanction ' 2126 Crores & and
have renewed/reviewed more than 7.68 lacs Accounts Digitally.
Photos taken during the launch of Fresh KCC (1.60 lacs) on pilot basis
at Madhya Pradesh & Karnataka state
The following digital lending journeys have been launched during the FY
2022-23:
i. Mudra Kishor STP
ii. Mudra Tarun STP
iii. Education loan
iv. Fresh KCC (1.6L)
v. Loan Against Deposit (LAD)
vi. Nari Shakti
vii. GST Gain
viii. KCC loan renewal
ix. Retail term loan review
x. MSME renewal (assessed)
Central Bank Digital Currency
The Reserve Bank of India has nominated your Bank for implementation of
the Central Bank Digital Currency -Retail (CBDC-R) and the Central Bank Digital Currency -
Wholesale (CBDC - W) project. Your Bank has made
live CBDC- Retail and CBDC - Wholesale - Application for Android and
IOS users under CUG.
FinTech & Ecosystem Partnerships
Your Bank is one of the pioneer banks to create a policy framework for
engaging with Fintechs and leveraging their solutions for building digital customer
journeys. Your Bank Engaged with 150+ best-in-class fintechs across 20+ next-gen themes
and empaneled 90+ Fintechs. 8+ Fintechs have been onboarded for implementing various
digital solutions in Agri, Retail & MSME segments.
Digital Banking Units
Your Bank has operationalized 7 DBUs across 6 districts with a prime
objective to increase the digital penetration of financial services by providing cost-
effective, convenient access with enhanced experience using a paperless, secured, and
connected environment. DBUs are located in Rajahmundry and Machilipatnam in Andhra
Pradesh, Palakkad (Kerala), Sagar (Madhya Pradesh), Nagpur (Maharashtra), Patiala
(Punjab), and Agartala (Tripura). All the DBUs are equipped with smart capabilities such
as interactive tablets, multi-functional kiosks, ATMs, video KYC apparatus, Metaverse, and
Internet Banking Kiosks.
4. Business Highlights:
4.1 The global business of your Bank stood at '19,27,621 crore as on
March 31,2023.
4.2 Total Deposits increased to '11,17,716 crore as on March 31, 2023.
Out of this, CASA share (current account and saving account) stood at 35.26 % as on March
31, 2023.
4.3 Gross Advances stood at ' 8,09,905 crore as on March 31, 2023. RAM
segment of your Bank increased by 14.94% YoY. 17.19% growth in Retail, 14.20% growth in
Agriculture, and 13.06% growth in MSME advances are achieved on a YoY basis. RAM advances
as a percent of Domestic Advances stood at 55.61%.
4.4 Overseas business of your Bank stood at '36,229 crore as on March
31, 2023, compared to ' 17,429 crore as on March 31, 2022. Your Bank has three overseas
branches in Hong Kong, DIFC (Dubai), and Sydney (Australia). Your Bank also operates in
the United Kingdom through its wholly owned subsidiary, Union Bank of India (UK) Ltd, and
operates in Kuala Lumpur (Malaysia) through its Joint Venture - India International Bank
(Malaysia) Berhad, which is a Joint Venture with Bank of Baroda and Indian Overseas Bank.
The Gross Advance portfolio of the foreign branches has grown by 43.55%, and Operating
Profit has grown by 7.46% for the FY 2022-23.
5. Income and Expenditure:
Table 1: Income and Expenditure Statement
(' in crore)
Sl. |
Parameter |
FY
2022-23 |
FY
2021-22 |
1 |
Interest
Earned |
80743 |
67944 |
2 |
Other
Income |
14633 |
12525 |
3 |
Total
Income (1+2) |
95376 |
80469 |
4 |
Interest
Expended |
47978 |
40157 |
5 |
Net
Interest Income (1-4) |
32765 |
27786 |
6 |
Operating
Expenses |
21931 |
18438 |
|
w/w
Establishment Expenses |
12390 |
10115 |
7 |
Total
Expenditure |
69909 |
58596 |
8 |
Operating
Profit (3-7) |
25467 |
21873 |
9 |
Provisions |
17034 |
16641 |
10 |
Net
Profit/Loss |
8433 |
5232 |
11 |
Earnings
per share
(in ') |
12.34 |
7.73 |
6. Profitability and Efficiency:
6.1 Your Bank reported an Operating Profit of '25,467 crore in FY
2022-23 as compared to ' 21,873 crore in FY 2021-22.
6.2 Net profit of your Bank stood at '8,433 crore in FY 2022-23.
6.3 Cost-to-income ratio of your Bank stood at 46.27% in FY 2022-23.
6.4 During FY 2022-23, Return on Average Assets stood at 0.69%, whereas
Return on Equity stood at 13.26%.
Table 2: Efficiency Ratios
Parameter
(%) |
FY
2022-23 |
FY
2021-22 |
Return on
Average Assets |
0.69 |
0.47 |
Return
on Equity |
13.26 |
10.11 |
6.5 The following are the key productivity ratios of your Bank for FY
2022-23.
Table 3: Productivity Ratios
Parameter |
FY
2022-23 |
FY
2021-22 |
Business
per Employee (' in crore) |
25.50 |
23.26 |
Business
per Branch (' in crore) |
224.66 |
198.91 |
Gross
Profit per Employee (' in lakh) |
33.69 |
29.09 |
6.6 Dividend:
The Board of your Bank has recommended a dividend of '3.00 per share
for FY 2022-23.
7. Shareholders' Return:
7.1 Your Bank's net worth was '63,599.34 crore as on March 31, 2023.
8. Asset Quality:
8.1 Gross Non-Performing Assets (GNPA) of your Bank stood at '60,987
crore as on March 31,2023. GNPA as a percent of gross advances stood at 7.53% as on March
31,2023.
8.2 Net NPA of your Bank stood at '12,928 crore as on March 31, 2023,
and the Net NPA ratio stood at 1.70% as on March 31,2023.
9. Capital Adequacy:
9.1 The Capital Adequacy Ratio, as per BASEL III norms, stood at 16.04%
as on March 31, 2023. Common Equity Tier I (CET I) capital of your Bank stood at 12.36% in
March 2023.
Table 4: Capital Adequacy Ratios - Basel III
('in crore)
Parameters |
RBI
Minimum Benchmark March 31, 2023 |
March 31,
2023 |
March 31,
2022 |
Total
Risk- Weighted Assets |
NA |
5,78,455 |
545,923 |
Total
Capital Funds |
92,778 |
79,281 |
CET 1
Capital |
71,492 |
58,049 |
| >Tier 1
Capital |
80,478 |
66,589 |
CRAR(%) |
11.50 |
16.04 |
14.52 |
CET 1
(%) |
8.00 |
12.36 |
10.63 |
Tier 1
(%) |
9.50 |
13.91 |
12.20 |
Tier 2
(%) |
NA |
2.13 |
2.32 |
9.2 Capital Raised by your Bank
Your Bank has issued and allotted Basel III compliant Tier 1 Bonds to
the tune of '1983 crore and Tier II Bonds to the tune of '2200 crore during the FY
2022-23.
10. Network
The Branch Network of your Bank is widely spread across the country
with 8577 branches and 3 overseas branches (Hongkong, Sydney, Dubai) as on March 31, 2023.
Out of these, 59 percent of the branches are located in rural and semi-urban centers.
11. Awards & Accolades:
During FY 2022-23, your Bank received awards for various initiatives
taken under the areas of Digitization, Financial Inclusion, HR management, Customer
Service, etc.
• Awarded DSCI Excellence Awards 2022 under the category of
"Best Security Practices in Banking Sector" and CISO of your Bank received an
award as "Security Leader of the Year".
• Received award under "IT Risk Management" category
from 18th Banking Technology Awards by IBA. Bank has received this award 4 times
continuously from 2019-2022.
• Received Best Technology Bank and Best Technology Talent awards
in the 18th Banking Technology Awards by IBA.
• Received two awards under the "Enterprise
Security" category in "BFSI Technology Conclave & Awards
2022" conducted by Indian Express group.
• 1st rank in EASE 5.0 Reforms Index for Q3:FY 20222023 (Digitally
enabled customer offerings, BIG Data and Analytics)
• Best Fintech Collaboration- Special Prize awarded by IBA Banking
Technology Conference, Expo & Awards
• Atal Pension Yojna (APY): Your Bank received awards and
recognition certificates from PFRDA in the various campaigns organized by PFRDA. Qualified
in the following campaigns in the FY:
o Circle of Excellence trophy for ED. o Beat the best and be the best
campaign.
o Rise above the rest for ZH/RH - 10 ZH and 120 RH qualified.
o LEADERSHIP PINNACLE campaign for MD and CEO.
o APY Big Billion campaign for MD and CEO. o APY Big Believers
campaign.
• 18 prestigious Kshetriya Rajbhasha Puraskars from the Department
of Official Language, Ministry of Home Affairs, GoI.
• 85 Shields for outstanding performance in Official Language
Implementation from different TOLICs (Town Official Language Implementation Committees)
set up by the Govt. of India, Ministry of Home Affairs, Rajbhasha Vibhag, across the
country.
• 1st Position in the category of "Best Guarantee Coverage
(Number)" for FY 2022-23 by CGTMSE (Credit Guarantee Fund Trust For Micro And Small
Enterprises).
• First position in the categories of Promoting Social Schemes,
Implementing COVID-related Schemes, and Government Schemes and runners up in the
categories of CSR Initiative Bank and MSME friendly Bank in the event conducted by Chamber
of India Micro Small & Medium Enterprises (CIMSME).
• 1st Position in the category of "BEST SME LENDING" in
the 9th MSME Excellence Awards by ASSOCHAM.
• Awarded "Best Bank of the Year in the Financial
Ecosystem" conferred by Assocham in the Assocham Financial Conclave 2023.
• Awarded Golden Peacock HR Excellence Awards 2022, by the
Institute of Directors
• Future of Workplace Disruptor 2022 (Large enterprise) awarded by
Mint W3 Champions 2022
• Indian Academia Conference 2023 Corporate Award awarded by M/s
People Lab
• Most Preferred Workplaces in BFSI 2022 awarded by Team Marksmen
• Innovation in HR Transformation awarded by BAI Global Innovation
Award.
• Role Model Companies awarded by NCPEDP- LTI Mindtree Helen
Keller Awards-2022
• Business Excellence through Learning & Development award by
BML Munjal Awards
• ISTD 31st National Awards for Innovative Training Practices:
2020-21 awarded by ISTD, New Delhi
• "Pioneering Work in Creating Future Ready Inclusive
Organization" awarded by IAC Corporate Awards 2023
• "Best Organization for PWD Inclusion" awarded by
Business World People & Ask Insights "Disability Positive Awards."
• Best AI and ML Bank Runner Up award and Best Financial Inclusion
Runner Up award in 18th IBA Technology Conference, Expo & Awards.
• FIEO (Federation of Indian Export Organisations) has conferred
your Bank with the "Export Excellence Gold Award" for 2 consecutive years for
its contribution to promoting Export growth in the country.
• Gold shield has been awarded by the Institute of Chartered
Accountants of India in the category "Public Sector Banks" for excellence in
Financial Reporting.
• Bank has also received various awards for its contributions in
the field of Digital Transformation and Accessibility:
> The NCPEDP- LTIMINDTREE Helen Keller Award
> Business Transformation Awards 2022
> 5th India BFSI Conclave & Awards 2022
> Digital Transformation Summit India 2022
12. Social Media
Your Bank is extending information related to products/ services
through its official handles on all major social media platforms, viz. Facebook, Twitter,
Instagram, YouTube, and LinkedIn. Users were engaged in business interactions through
conversation sessions/ Direct Messaging, customer care support, online contests,
Educational posts/ videos, organizing online
events, etc. User interactions were used to understand brand perception
and gain competitive intelligence to increase business prospects through social media.
Your Bank has thrived on cost-effective brand publicity through social
media and posted dynamic content with attractive static/ video posts, bringing customer
awareness of the products, services, and offers. Awareness was also created through posts
on cyber security, urging customers to be aware of frauds, cyber scams, and other social
engineering, social causes, remembering personalities, significant days/ events, etc.
Your Bank is available 365x24x7 on all handles, which are very
responsive and reply instantly. In the last year, 1.70 lakhs queries from social media
users were responded ensuring timely guidance, proper redirections, and complaint
redressal resulting in customer delight. Your bank brand was well received by the public
at large, justified with a whopping 6699.25 lakhs impressions and 932.79 lakhs
engagements.
Your Bank has a huge follower base on social media presence which has
grown to 41.47 lakhs as on 31st March 2023 against 24.33 lakhs last fiscal scaling a
remarkable growth of 70.44% YoY.
Your Bank is continuously measuring the overall sentiment about
existing or new products, collecting feedback about initiatives and customer interest to
meet the expectations of customers in product offerings and services rendered.
Your Bank has run more than 150+ Digital Marketing campaigns on social
media handles and targeted ad campaigns on Google Ads, creating buzz for maximum reach on
products/ services/ offers and roped in new customers along with improved search engine
visibility and enhanced website traffic.
Your Bank has made e-commerce business tie-ups across hospitality,
entertainment, and health sectors with key market players like MakeMyTrip, Swiggy, Zomato,
BookMyShow, Apollo Pharmacy, Ferns N Petals, Swiggy Instamart, Meesho, GoIbibo, etc. and
encouraged cardholders to embrace cashless payments thereby remaining with digital banking
ecosystem.
13. Changes in the Directors on the Board of your Bank:
The following changes took place in the Board of Directors of your Bank
during the financial year 202223.
• Shri Manas Ranjan Biswal, Executive Director of your Bank,
completed his term in office on April 30, 2022
• Shri Rajkiran Rai G, MD & CEO of your Bank, completed his
term in office on May 31, 2022.
• Ms. A. Manimekhalai has been appointed as MD & CEO on the
Board of your Bank w.e.f. June 3, 2022.
• Shri Srinivasan Varadarajan has been appointed as a Part-Time
Non-Official Director and NonExecutive Chairman on the Board of your Bank w.e.f. November
7, 2022.
• Shri Ramasubramanian S has been appointed as an Executive
Director on the Board of your Bank w.e.f. November 21, 2022.
14. Directors' Responsibility Statement
The Directors confirm that in the preparation of the
annual accounts for the year ended 31st March 2023:
• The applicable Accounting Standards had been followed along with
proper explanation relating to material departures, if any.
• Accounting Policies had been selected and applied consistently,
and made judgments and estimates that are reasonable and prudent so as to give a true and
fair view of the state of affairs of your Bank at the end of the financial year and of the
profit and loss of your Bank for that period.
• Proper and sufficient care was taken for the maintenance of
adequate Accounting Records in accordance with the provisions of the relevant Acts for
safeguarding the assets of your Bank and for preventing and detecting fraud and other
irregularities.
• The Annual Accounts were prepared on a going- concern basis.
• Internal financial controls had been laid down to be followed by
your Bank, and such Internal Financial Controls were adequate and were operating
effectively. Explanation.— For the purposes of this clause, the term "Internal
Financial Controls" means the policies and procedures adopted by your Bank to ensure
the orderly and efficient conduct of its business, including adherence to your Bank's
policies, the safeguarding of its assets, the prevention and detection of frauds and
errors, the accuracy and completeness of the accounting records, and the timely
preparation of reliable financial information.
• Proper systems were in place to ensure compliance with the
provisions of all applicable laws and that such systems were adequate and operating
effectively.
15. Corporate Governance
The Board of your Bank is committed to adopting good Corporate
Governance practices in letter and spirit. A detailed report on Corporate Governance is
given in a separate section of the Annual Report. The Corporate Governance report for the
financial year 2022-23 has no audit qualifications.
16. Corporate Social Responsibility (CSR):
16.1 Union Bank of India has been at the forefront of meeting its CSR
commitments. Towards this, your Bank established Union Bank Social Foundation Trust
(UBSFT) in the year 2006 as an extended arm for carrying out the CSR activities of your
Bank. The major CSR activities of your Bank are now being carried out through the UBSFT.
Its Board is headed by your Bank's Managing Director & CEO, with executive directors
as Vice Chairman Trustees. Other trustees include your Bank's Chief General Managers,
General Managers, and one independent trustee. The UBSFT Board provides directions in
accordance with your Bank's thrust areas and undertakes review every quarter. The
directions of the Board are executed by the Chief Executive of UBSFT. While the Registered
office of UBSFT is in Bengaluru, the administrative office is in Mumbai.
Bank's Stakeholders' Relationship Committee also monitors and guides
the CSR activity of your Bank also that of UBSFT on a quarterly basis.
UBSFT has been incorporated, aiming to support initiatives towards
Social upliftment & improving the lives of underprivileged segments.
16.2 The CSR activities undertaken by your Bank / UBSFT in 2022-23
During the FY 2022-23, donations of '23.38 crores were approved towards
51 projects/programs under various sectors like Education, Healthcare, Sanitation,
Community Development, Skill Development, etc.,
Some of the major activities conducted in the area of social
responsibility during the FY 2022-23 are as under:
• Towards improving health infrastructure, donated one X-ray
machine with a digital upgrade kit & one 33-seater camp van to Tirumalai Medical
Mission hospital, Ranipet, Tamilnadu.
• Donated an Ambulance to "SDMH" hospital, one of the
prestigious Hospitals in Jaipur, to cater to the patients.
• Donated an ICU Ambulance to Jayadev Memorial Rashtrothana
Hospital, one of the prestigious Hospitals in Bengaluru, to cater to the patients
• Donated towards the renovation of the Rajkiya Vriddhashram,
Varanasi.
• Donated two food delivery vehicles to Akshaya Patra Foundation,
Bengaluru, for their mid-day meal scheme at Mangalagiri, Andhra Pradesh.
• Organized Financial Literacy Camp at RSETI Varanasi
• Provided modern infrastructure in the conference hall at
Government First Grade College, Hebri, Karnataka, towards providing of quality &
modernized education environment to the college students coming from socially &
economically weaker sections of society.
• Conducted Narishakti credit camp for RSETI Chikmagaluru trained
women entrepreneurs & credit sanction letters were issued.
17. EASE (Enhanced Access and Service Excellence)
Enhanced Access and Service Excellence (EASE) was launched by the
Government of India in the financial year 2018-19 to usher in next-generation reforms in
Public Sector Banks. The performance of the banks is measured on a common index on a
quarterly basis. The fourth iteration of the EASE agenda for the FY 2021-22 was launched
under the theme "Technology-Enabled Collaborative and Simplified Banking," and
your Bank was ranked 4th position in EASE 4.0 annual index.
The fifth iteration of EASE under the theme "Enhanced Digital
Experience, Integrated and Inclusive Banking" has set forth long-term reforms
objectives, which is to be achieved over a period of three years with well-defined annual
milestones. The reform focuses on promoting digital banking offerings, enhancing
analytical capabilities, broadening PSB's technological capabilities, broadening and
deepening the nature of co-lending partnerships, and enhancing employee engagement and
satisfaction, among others.
Your Bank has made considerable progress in EASE Index over the past
five years in institutionalising the reforms agenda in your Bank. Major developmental
goals accomplished by your Bank towards developing internal capabilities and enhancing the
banking experience of the customers in the FY 2022-23 include:
a. Rebranded the Mobile Banking Application as
"VYOM" and launched the new super-app with
350+ best-in-class features and an explorative UI/
UX design for a unique banking experience.
b. 38+ end-to-end digital journeys were rolled out to enhance the user
experience, convenience, and adoption.
c. Quarterly, 1600+ cr. of business generated through STP journeys
across the RAM segment.
d. Implemented account opening process via video KYC with the objective
of making the customer onboarding process simpler.
e. To gather feedback on customer expectations in a frequent manner and
to re-engineer the products/ services as per the requirement, your Bank has activated 10
channels for capturing customer sentiment.
f. To have a greater reach to the underserved remotest areas of the
country, your Bank has partnered with several NBFCS in RAM segments for its co-lending
journey. A separate vertical was created for co-lending, entrusted with the responsibility
of expanding the portfolio.
g. Your Bank was the first public sector bank to go live on the Account
Aggregator Framework in the month of May last year. Your Bank has registered as both FIP
(Financial Information Provider) and FIU (Financial Information User), enabling customers
to share data on a real-time basis and providing them with a seamless journey eliminating
the need for physical documentation.
h. Your Bank has also undertaken several employee- friendly initiatives
such as reimbursement of expenses on Child Care facilities to Women Employees and Single
Male Employees (Parents), Collaborating with external partners to cater to the training
needs of the employees, introducing an employee grievance redressal portal, creating a
forum for career counselling for employees, amongst others.
In the latest EASE 5.0 index for Q3 FY 2022-23, your Bank stood first
amongst all PSBs. Your Bank has also set the benchmark under four out of five themes by
securing the first rank amongst PSBs. The themes are Digitally-enabled customer offerings,
Big data and analytics, Modern technology capabilities, and Employee development &
governance.
Your Bank is working in tandem with the reform objectives envisaged to
improve customer service through greater flexibility and faster delivery of services. With
improved operational efficiency and increased customer engagement, your Bank is committed
to creating an inclusive digital finance ecosystem.
18. Acknowledgements:
18.1 The Directors thank the shareholders, valued customers,
well-wishers, Share Transfer Agent, and correspondents of your Bank in India and abroad
for their goodwill, patronage, and support.
18.2 The Directors acknowledge with gratitude the valuable and timely
advice, guidance, and support received from the Government of India, Government of
Maharashtra, Reserve Bank of India, Securities & Exchange Board of India, Insurance
Regulatory and Development Authority of India, Central Vigilance Commission, BSE, NSE,
financial institutions, correspondent Banks and Statutory Central Auditors of your Bank,
in the functioning of your Bank.
18.3 The Directors place on record their deep appreciation for the
dedicated service and valuable contribution made by members of staff in the overall
performance of your Bank during the year and look forward to their continued cooperation
in the realisation of the corporate goals of your Bank in the years ahead.
18.4 The Directors also express that the staff members stay safe,
healthy and maintain good health.
For and on behalf of the Board of Directors,
Place:
Mumbai |
(Srinivasan
Varadarajan) |
Date:
23.06.2023 |
Chairman |
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