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Union Bank of India

BSE Code : 532477 | NSE Symbol : UNIONBANK | ISIN:INE692A01016| SECTOR : Banks |

NSE BSE
 
SMC down arrow

43.60

-1.35 (-3.00%) Volume 280564

21-Jan-2022 EOD

Prev. Close

44.95

Open Price

44.50

Bid Price (QTY)

43.60(64618)

Offer Price (QTY)

0.00(0)

 

Today’s High/Low 44.75 - 43.10

52 wk High/Low 54.80 - 29.20

Key Stats

MARKET CAP (RS CR) 29765.33
P/E 6.25
BOOK VALUE (RS) 94.6128002
DIV (%) 0
MARKET LOT 1
EPS (TTM) 6.97
PRICE/BOOK 0.46029712584281
DIV YIELD.(%) 0
FACE VALUE (RS) 10
DELIVERABLES (%) 29.28
4

News & Announcements

20-Jan-2022

Union Bank of India - Union Bank of India - Loss of Share Certificates

13-Jan-2022

Union Bank of India - Union Bank of India - Loss of Share Certificates

12-Jan-2022

Union Bank of India - Union Bank of India - Updates

11-Jan-2022

Union Bank of India - Certificate For Timely Payment Of Annual Interest On Bonds - INE692A08128

17-Dec-2021

Union Bank of India considers issuance of AT-1 bonds aggregating Rs 1500 cr

13-Dec-2021

Union Bank of India receives ratings action from India Ratings

10-Dec-2021

Union Bank of India receives ratings for AT-I bonds aggregating Rs 1500 cr

09-Nov-2021

Union Bank of India announces change in Govt. nominee director

Corporate Actions

Bonus
Splits
Dividends
Rights
Capital Structure
Book Closure
Board Meeting
AGM
EGM
 

Financials

Income Statement

Standalone
Consolidated
 

Peers Comparsion

Select Company Name BSE Code NSE Symbol
Allahabad Bank(Merged) 532480 ALBK
Andhra Bank(Merged) 532418 ANDHRABANK
Bank of Baroda 532134 BANKBARODA
Bank of India 532149 BANKINDIA
Bank of Maharashtra 532525 MAHABANK
Canara Bank 532483 CANBK
Central Bank of India 532885 CENTRALBK
Corporation Bank(Merged) 532179 CORPBANK
Dena Bank(Merged) 532121 DENABANK
Indian Bank 532814 INDIANB
Indian Overseas Bank 532388 IOB
Oriental Bank of Commerce(Merged 500315 ORIENTBANK
Punjab & Sind Bank 533295 PSB
Punjab National Bank 532461 PNB
State Bank of Bikaner and Jaipur(Merged) 501061 SBBJ
State Bank of India 500112 SBIN
State Bank of Mysore(Merged) 532200 MYSOREBANK
State Bank of Travancore(Merged) 532191 SBT
Syndicate Bank(Merged) 532276 SYNDIBANK
UCO Bank 532505 UCOBANK
United Bank of India(Merged) 533171 UNITEDBNK
Vijaya Bank(Merged) 532401 VIJAYABANK

Share Holding

Category No. of shares Percentage
Total Foreign 88280399 1.29
Total Institutions 480052089 7.02
Total Govt Holding 15665 0.00
Total Non Promoter Corporate Holding 63854929 0.93
Total Promoters 5706660850 83.50
Total Public & others 495883534 7.26
Total 6834747466 100
  • Total Foreign
  • Total Institutions
  • Total Govt Holding
  • Total Non Promoter Corporate Holding
  • Total Promoters
  • Total Public & others

About Union Bank of India

Union Bank of India is one of largest state-owned banks in India. 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. The bank also has international presence with 3 overseas branches at Hong Kong, DIFC (Dubai) and Sydney (Australia). In addition, the bank has representative offices at Shanghai, Beijing and Abu Dhabi. The bank also operates 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. In the year 1921, the Bank shifted their registered office to Mumbai Samachar Marg, Fort, Mumbai, which was inaugurated by Mahatma Gandhi. The Bank entered a growth phase in the 1960s 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.

Union Bank of India Chairman Speech

Chairman

Speech by Shri D. Sarkar, Chairman & Managing Director, Union Bank of India at 11th Annual General Meeting of the Bank (26th June, 2013)

Dear Shareholders,

1. It is indeed a pleasure welcoming you to the 11th Annual General Meeting of the Bank. Your support in the steady progress of the Bank over the years has been highly valuable. For this, I would like to convey sincere appreciation to all the shareholders of the Bank, on behalf of the Board of Directors and on my personal behalf.

2. Financial year 2012-13 was a challenging year for the commercial sector as well as banking sector as economic growth slowed down to a decade low. During the year 2012-13, India's real gross domestic product grew at 5.0 percent. While global situation remained adverse, the prospects deteriorated further with domestic challenges like high inflation at retail level, rupee depreciation, slowing consumption demand and a weak investment climate. Banking sector is the mirror image of the overall economic growth and therefore, banks also faced challenges during the fiscal year 2012-13.

3. In this backdrop, let me share with you the performance of your Bank during the year 2012-13. Your Bank's business strategies were aimed at consolidating business and lending to productive sectors while managing the asset quality. The strengthening of systems and control, better risk management practices, further initiatives towards a meaningful financial inclusion and launch of Talking ATMs were other highlights of the year. The detailed discussion is already available in the Annual Report of the Bank. For the sake of relevance, however, I will highlight a few points.

4. The focus on customer centricity guided your Bank's performance during the year. Over the recent years, the Bank has taken several initiatives to enhance customer convenience, increase transparency in all transactions, and build a robust customer redressal mechanism. Through Customer Care Unit, your Bank has created a centralized capability for handling all types of customer requirements, be it online grievance redressal, reporting of service deficiency or any specific service request. The integrated Case Management Tool has been put in place to integrate complaints across delivery channels and also to facilitate customer feedback.

Business & Profit

5. Coming to business performance, your Bank's Global Business stood at Rs. 4,75,673 crore as of 31st March 2013, registering an annual growth rate of 17.8 percent. Gross advances stood at Rs. 2,11,911 crore while Total Deposits stood at Rs. 2,63,762 crore as on 31st March 2013. Growth in business was supported by increase in low-cost deposits, retail loans, agriculture loans and loans to micro, small and medium enterprises.

6. Your Bank's total income grew by 17.9 percent to Rs. 27,677 crore for the year 2012-13 from 23,476 crore a year ago. Net interest income recorded annual growth of 11.0 percent to Rs. 7543 crore. Operating Profit of the Bank increased to Rs. 5,583 crore in 2012-13 from Rs. 5,254 crore during the previous year. Net profit recorded a growth rate of 20.8 percent and stood at Rs. 2,158 crore for the year 2012-13 compared to Rs.1787 crore in the previous year. The Bank has recommended a dividend of 80 percent for the year 2012-13.

Improvement in Asset Quality

7. I shared in the beginning about challenges in the banking sector, particularly about deterioration in asset quality due to economic slowdown. Your Bank, however, was able to reduce gross non-performing assets (NPAs) from 3.01 percent of gross advances as of 31st March 2012 to 2.98 percent as of 31st March 2013. In fact, on quarterly basis beginning June 2012, your Bank was also able to record reduction in Gross NPA in absolute amount as well as a ratio to gross advances. The Bank could also increase the provision coverage ratio to 65.2 percent as of 31st March 2013 from 62.2 percent a year ago. This is regarded as a healthy development in order to strengthen your Bank's balance sheet.

Capital Strength

8. During the year 2012-13, the Bank allotted 4.62 crore equity shares of Rs. 10 each at a premium of Rs. 230.89, aggregating to Rs. 1,114 crore to the Government of India. Consequently the Government's shareholding in the Bank increased from 54.35 percent as on 31st March 2012 to 57.89 percent as on 31st March 2013. With this, Bank's total Capital Adequacy Ratio, as per Basel II, stood at 11.45 percent as on 31st March 2013 which is well above regulatory requirement of 9 percent.

9. The Bank's net worth improved by 20.7 percent to Rs.15,777 crore during FY 2013 from Rs. 13,075 crore in the previous year. Thus, the Book value per share increased to Rs. 264.37 as on 31st March 2013 from Rs. 237.48 in the previous year.

Overseas Operations

10. Your Bank has opened its second foreign branch at Dubai International Financial Centre (DIFC), Dubai on 9th March 2013. Bank's other overseas branch is at Hong Kong, operational since May 2008. Deposits and advances of these two overseas branches stood at Rs. 2763 crore and Rs. 13017 crore respectively as of 31st March 2013. Your Bank is also in the process of opening branches at Sydney in Australia and Antwerp in Belgium and a subsidiary at London in the UK during the financial year 2013-14. The Bank already has representative offices at Shanghai (China), Abu Dhabi (UAE), Beijing (China), Sydney (Australia) and London (UK).

Human Resource Management

11. The Bank is committed to nurturing its human capital in order to attain sustainable higher growth. The manpower strength increased to 31798 as on 31st March 2013. During the year, Bank completed the recruitment for 4,509 officers and clerks. Bank is also engaged in leadership development and succession planning considering the imminent challenges due to large scale retirement in coming years.

Corporate Social Responsibility

12. Your Bank is committed to the objective of corporate social responsibility (CSR) by creating enablers for social and community development. The 'Union Bank Social Foundation', a trust set up by the Bank is spearheading its CSR initiatives. Through the trust, the Bank is engaged in empowering people through various developmental initiatives.

13. The Bank has set up 202 Village Knowledge Centres (VKCs) across the country. Each VKC assists in overall development of the village by coordinating with various developmental agencies/ Government departments and disseminate knowledge to farmers about latest developments in methods of cultivation, technologies, proper use of fertilizers, pesticides, etc.

14. The Bank has also adopted 150 villages across the country and is involved in development of these villages through a special scheme known as 'Union Adarsh Gram Yojana'. In these adopted villages, various developmental activities are being undertaken, like, providing safe drinking water, sanitation and solar lamps. In these villages, Bank has adopted 150 Girl children as part of its initiative to increase enrolment of girl child at the schools.

15. Your Bank has 14 Rural Self- Employment Training Institutes (R-SETIs) and 16 Financial Literacy and Credit Counseling Centers (FLCCs) across the country. These R-SETIs and FLCCs extend financial literacy, counseling and training to the needy people so that they become self reliant. Through these R-SETIs, 28522 persons have been provided training so far and 18709 beneficiaries have been settled with employment.

16. During the year 2012-13, Bank donated a total of Rs. 1.24 crore for supporting activities like rehabilitation in calamity affected areas, cancer relief, provision of food distribution vehicles and installation of solar lamps in villages.

Reaching out to the Society

17. Besides, CSR activities, your Bank's business focus is also on reaching out to hitherto unbanked population, less developed sections of the society and creating convenience for them. I will briefly share some of these.

18. With a motive of encouraging women entrepreneurs, the Bank extended finance to 6.13 lakh women beneficiaries and loans increased by 32.1 percent to Rs 9,053 crore as on 31st March 2013. This constituted 5.53 percent of adjusted net bank credit (ANBC) which is higher than 5 percent mandated by the RBI. Similarly, loans to Weaker Sections stood at Rs. 15,023 crore, i.e. 9.2 percent of ANBC as on 31 st March 2013, higher than 6.3 percent of ANBC in the previous year. Advances to SC/ST covered over 1 lakh beneficiaries, with outstanding loans of Rs. 2,617 crore compared to Rs. 1,386 crore in the previous year. Loans to Minority Communities stood at Rs. 5,289 crore covering over 2.7 lakh beneficiaries.

19. Ernakulam district, one of the Bank's lead districts in the state of Kerala, was declared by the RBI Governor, Dr D Subbarao as country's first district to achieve 'Meaningful Financial Inclusion'. Under this prestigious project, your Bank focused on "need" creation rather than simply opening of accounts. With the help of community-based organizations, Bank sensitized its customers about need for savings and credit. This helped sharp increase in usage of mobile banking and number of operative accounts. Other than this, your Bank extended banking services to 29497 unbanked / underbanked villages in 2012-13 by providing basic banking services through Business Correspondent Model. Your Bank is also an active participant in implementation of the Central Governments Direct Benefit Transfer Scheme.

20. During the last financial year, your Bank unveiled India's first ever truly accessible and Talking ATM in Vastrapur, Ahmedabad on 6th June 2012 for the visually and physically challenged people. Your Bank has pioneered Talking ATMs in India. Union Bank's Talking ATM model and workflow has set a benchmark for the banking industry. The Bank has 100 Talking ATMs across the country as on 31st March 2013.

Awards and Recognition

21. Many initiatives of your Bank were recognized by the various organizations and agencies during the year. Your Bank received four IBA Banking Technology Awards for Best Financial Inclusion Initiative, Best Technology Bank of the Year, Best Use of Mobility Technology in Banking and Best Use of Business Intelligence. The Bank also received the prestigious ACI Excellence Award 2012 for implementing three remittance products. For launching truly accessible Talking ATMs for the visually challenged, the Bank received the prestigious IT Innovation Award from the Computer Society of India.

The year ahead

22. Global growth prospects are marginally better than a year ago but challenges and uncertainties remain. This will also impact India's growth, though there is likelihood of better growth in the 2013-14 than in the previous year. Your Bank will endeavor to capture the opportunities with specific focus on increasing low cost deposits and augmenting loans to agriculture, retail and MSME segments during the financial year 2013-14. Overall, the customer centricity will continue to be the driving force for the Bank.

Acknowledgement

23. On behalf of the Board of Directors of the Bank, I would like to express my sincere appreciation to all the shareholders for their continued and valuable support in growth of the Bank. I also convey my sincere gratitude to the Government of India, Reserve Bank of India, Securities & Exchange Board of India, lnsurance Regulatory and Development Authority, Central Vigilance Commission and other authorities for their valuable guidance and support. The co-operation and support of financial institutions and correspondent banks is also acknowledged. I will be failing in my duty without acknowledging the support of our esteemed customers and all other stakeholders for their continued patronage, and express my deep appreciation to each employee of the Bank for their dedication in taking the Bank to a greater height.

Thank you very much.

Place: Mumbai

(D. Sarkar)

Date: 26.06.2013

Chairman & Managing Director

   

Union Bank of India Company History

Union Bank of India is one of largest state-owned banks in India. 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. The bank also has international presence with 3 overseas branches at Hong Kong, DIFC (Dubai) and Sydney (Australia). In addition, the bank has representative offices at Shanghai, Beijing and Abu Dhabi. The bank also operates 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. In the year 1921, the Bank shifted their registered office to Mumbai Samachar Marg, Fort, Mumbai, which was inaugurated by Mahatma Gandhi. The Bank entered a growth phase in the 1960s 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.

Union Bank of India Directors Reports

Dear Shareholders,

The Board of Directors are pleased to present the 102nd Annual Report of the Bank for the Financial Year 202021 together with the ‘Audited Balance Sheet', ‘Profit & Loss Account', ‘Cash-Flow Statement' and the report on ‘Management Discussion & Analysis'. The ‘Corporate Governance Report' and ‘Business Responsibility Report' also form part of the Annual Report 2020-21.

1. Highlights:

1.1 The year 2020-21 was dominated by the COVID-19 pandemic and the resultant global economic downturn, the most severe one since the Global Financial Crisis. The lockdowns and social distancing norms brought the already slowing global economy to a standstill. As per the latest World Economic Outlook of International Monetary Fund (IMF), the Global economic output contracted by 3.3% in 2020.

1.2 Governments and central banks across the world deployed a range of policy tools to support their economies, such as, lowering key policy rates, quantitative easing measures, loan guarantees, cash transfers and fiscal stimulus measures. The global economy is projected to grow at 6% in 2021, moderating to 4.4% in 2022. Among advanced economies, the United States is expected to surpass its pre-COVID GDP level this year, while many others in the group will return to their pre-COVID levels only in 2022. For emerging and developing market economies, China had already returned to pre- COVID GDP in 2020, whereas many others are not expected to do so until 2023.

1.3 For the Indian economy, the year 2020-21 was challenging due to both supply and demand side disruptions, due to the pandemic. The Indian economy entered a technical recession in the first half of FY21 with GDP plunging by 24.4% in Q1 FY21, 7.4% in Q2 FY21. India recognized the disruptive impact of the pandemic and charted its own unique path amidst its huge population, high population density and an overburdened health infrastructure. The intense lockdown implemented at the start of the pandemic characterized India's unique response in several ways. The Government has ramped up its fiscal spending through Atmanirbhar scheme and a favorable monetary policy ensured support for the economy.

1.4 Union Budget 2021-22 has further provided a strong fillip to the capex momentum with clear emphasis on infrastructure investment, as a key focus area, to revive demand and overall growth.

Setting up the National Bank for Financing Infrastructure and Development (NaBFID), as the principal Development Financial Institution (DFIs) for infrastructure financing and aiming to achieve lending of Rs.5 lakh crore in 3 years to infrastructure projects, is an important measure. It will also dovetail with the ongoing efforts of the government to enhance capital for implementing infrastructure projects under National Infrastructure Pipeline (NIP). Further, the setting up of an Asset Reconstruction and Asset Management Company (ARC&AMC) to clear off the bad loans, privatization of two PSU banks and the enhancement of FDI limits in insurance from existing 49% to 74% are some of the important reform measures announced by the Government in the Budget.

1.5 During the year 2020-21, the RBI undertook several conventional and unconventional measures to ensure ample system-level liquidity as well as targeted liquidity to support vulnerable sectors, institutions and financial instruments. The RBI ensured immediate relief to debtors via temporary loan moratorium, while unclogging monetary policy transmission. Besides this, the regulator has allowed a one-time restructuring scheme to help companies and individuals to manage the financial stress caused by the Covid 19 pandemic.

1.6 Prospects for 2021-22 have strengthened with the progress of the vaccination programme. High frequency indicators point to the growth momentum gaining strength, especially in the fourth quarter of FY 2020-21. The GDP shrugged off the contractions in the preceding quarters and moved into expansion zone in the third and fourth quarter of FY 2020-21. However, the recent surge in infections has imparted greater uncertainty to the outlook, especially as localized and regional lockdowns could dampen the improvement in demand conditions and may delay the return of normalcy.

2. Bank's Performance

Established in the year 1919, your Bank has 9312 branches and 3 overseas branches, 12957 ATMs across 29 States and 5 Union Territories and 78202 employees as on March 31,2021.

Key achievements during FY 2020-21:

• Net Interest Income for FY 21 stood at Rs.24,688 crore.

• Operating profit for FY 21 stood at Rs.19,259 crore.

• PCR stood at 81.27% as on March 31,2021

• Net NPA ratio stood at 4.62% as on March 31, 2021

During FY 2020-21, your Bank has undergone many transformations/ adopted new processes as given below.

2.1 Amalgamation:

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 has significantly resulted in improving the 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 bank has recognized amalgamation as an exercise in change management and leveraged this as an opportunity for such transformation. Accordingly, a detailed integration plan was prepared to ensure smooth transition to Amalgamation Effective Date (AED) with minimum customer disturbance and employee grievances.

Dedicated programme management office in the name of Amalgamation Management Office (AMO) was set up for better coordination with various verticals and smooth drive of Amalgamation process. The project under which entire amalgamation related exercise has been carried out in the Bank is named as "Project Samarth".

Programme Management Consultant, M/s Boston Consultancy Group (BCG) was on-boarded for planning, designing, guiding and ensuring the implementation of all aspects required for successful completion of the amalgamation. AMO, in close coordination with BCG, Corporate Verticals and field functionaries has initiated the amalgamation process with following broad objectives:

While initiating amalgamation process, emphasis has been provided mainly on unlocking the multiple levers having multiple inter-linked complexities.

After identification, plan and road map for amalgamation has been defined and strategized. Based on criticality of functions, the amalgamation process was divided into Pre Amalgamation Effective Date (Pre-AED), AED and posts AED phases.

31 functional committees representing the functions of all verticals were created to handle the basic work of harmonization of activities, resolving issues and escalating unresolved issues. Each committee was represented by members of all 3 Banks who met on regular frequency to arrive at a detailed Master Amalgamation Plan (MAP).

For ensuring branches are adequately supported in amalgamation process, a peer based program- Buddy Branch Program- is launched to handhold branches of erstwhile Andhra Bank and erstwhile Corporation Bank. This program was intended to build coordination across branches, quicker resolution of queries and people integration.

Creating awareness about the benefits of amalgamation to customers, employees and other stakeholders about the changes was important for the Bank to address the apprehensions. For this a robust communication plan was activated with multiple channels. Stakeholders are categorised into 3 categories i.e. Customers, Employees and other stakeholders.

Along with the above preparedness at corporate level, various long term approaches were also strategized to handhold branches to ensure AED readiness. Communication channels such as Branch Handbooks, Microsite etc. were set up to ensure single source of communication for all amalgamation updates. FAQs and Branch level dos and don'ts created and circulated based on field experience.

With the objective of getting employees to know each other as a team, building a shared understanding and foster culture of one Bank going forward, a series of activities such as leadership summit "Triveni Sangam", People's survey, value survey, cultural integration summit for all DGMs, AGMs and Branch Managers, has been conducted for culture integration and change management. Sessions of guest speakers has been arranged for change workforce profoundly on mental and emotional aspect.

Training Architecture for the Amalgamated entity was defined and various large scale functional training sessions, Soft skills Training sessions and leadership workshops have been arranged for better understanding and working effectively. Key functional trainings through e-learning portal have also been arranged.

With the above preparedness, the Bank has achieved the AED transition smoothly without disruption to customers as planned. The business was continued as usual.

However, there are some of the initiatives which were deferred in view of the COVID-19 pandemic, but rolled out all the deferred activities by 30.06.2020.

Post AED, bank has decided to continue with 4 tier Organization structure for effective monitoring and management. Future ready Organization structure for Central Office and field has been designed to ensure high accountability and fulfilling strategic imperatives for the bank.

Field organization structure footprint in the form of 18 FGMO (Field General Manager Office) and 125 RO (Regional Offices), planned to strengthen pan India presence. Structures of RO-FGMO at field are constituted as mirror image of Central Office. RO-FGMO locations evaluated basis a number of dimensions such as Business footprint, Branch spans, Business potential, Geographical layout, Connectivity, Strategic importance including Proximity to service, credit centres, and cost of establishment.

With roll out of field organization structure, various specialized structure has also been rolled out for focussed growth under identified areas.

After process unification, a clear IT integration road map was formed much before AED. It inter alia included provisions of various hardware requirements, on boarding vendors, dependencies, availability of resources, compatibility of systems etc. This advanced planning helped the bank in concluding one of the fastest IT merger in banking history.

Core Banking Solutions (CBS) along with all CBS and non-CBS applications have been integrated in a structured and well defined manner to ensure minimal disruption to the end users. Bank leveraged this opportunity to improve Bank's digital offerings to each segment and ensuring better customer experience useful to lay down the foundation of further growth.

Capturing synergy is one of the key rationale for amalgamation of banks. Multiple synergy opportunities in terms of Revenue expansion, cost reduction, business rationalization, have been planned. The plan has identified both recurring and one-time, across functions with estimated cumulative monetary value in the next 3 years.

Around 70+ initiatives were identified across verticals broadly the following subheads:

• Cost Synergy by way of optimization of physical distribution of network and realization of resources such as Branch & ATM network rationalization, employee alignment, monetization of real estate assets, Vendor rationalization and integration of IT systems.

• Revenue synergy by way of cross sell & sales acceleration, fee income improvement and harmonization of service & penal charges. Thus, the amalgamation has laid the foundation for the Bank to fulfil the vision of "Future Ready Bank".

2.2 EASE (Enhanced Access and Service Excellence):

Enhanced Access and Service Excellence (EASE) was launched by Government of India in the financial year 2018-19 to increase efficiency of PSBs across every domain and to measure the performance on a common index on quarterly basis.

EASE 3.0, an augmented version of EASE 1.0 and EASE 2.0 set the implementation roadmap for FY 2020-21 with 5 Themes and 27 Action Points. Your bank, with continuous improvement in performance, secured 3rd position in overall ranking for the quarter ended December 2020 as against 8th rank in the baseline quarter ended March 2020. You bank was among top 3 banks in 4 out of 5 themes.

The Bank has taken several initiatives and implemented measures to improve efficiency under EASE agenda including:

• Implemented digital journey for lead generation through 5 channels (SMS, Missed Call, Internet Banking, Mobile Banking and Call Centre) for 6 Products (Personal Loan, Home Loan, Vehicle Loan, Credit Card, MSMe loan and Shishu Mudra).

• Implemented analytical rule based engine to generate offers for Pre-Approved Personal Loans, Housing Loan take over, Housing Loan top-up, and working capital enhancement for MSME with end to end digital journey.

• Launched end-to-end Straight Through Processing for Pre-approved Personal Loans, Shishu Mudra loans and renewal of MSME Loans.

• Implemented lead registration for KCC Loan through Mobile Banking app.

• Re-designed Performance Management System through digital & IT tools with focus on talent management, performance management and Rewards & Recognition.

EASE 4.0 reforms agenda sets implementation roadmap for FY 2021-22 with 6 Themes and 26 Action Points with focus on Technology-Enabled Collaborative & Simplified Banking. Your bank has been fast adopting technology advancements to benefit its large customer base. Your bank is also contributing in nation building through its improvisation in process and products ranging from financial inclusion to infrastructure lending. Your bank has shown a significant improvement in its performance under EASE 3.0 parameters in FY 2020-21 and will strive to continue its stride in coming days.

2.3 Online Sales of Union Mutual Fund Schemes- In order to promote digitization, the bank has been working closely with respective channel partners to develop system capabilities which would enable customers to buy third party products like Insurance and Mutual Fund online using the Bank's technology interfaces. Facility to buy Union Mutual Fund schemes through Bank's website and U-Mobile App has been commenced.

2.4 New UMobile App based services :

• Option to buy PMJJBY insurance cover through UMobile App has been enabled.

• Mobile Banking services enabled for NRIs.

• Under value added services new features such as Setting of Standing Instructions & Personalize Transaction Limits.

• New Credit Card module providing facility to Make payment, Set PIN.

2.5 Launched the Treasury- FX Retail, an electronic trading platform designed by Clearing Corporation of India Ltd which provides for buying/selling of foreign exchange by retail customers of the bank.

During the current FY 2020-21 the Bank has added 88 new clients in this segment.

2.6 Specialization in Monitoring and Recovery:

Your Bank has taken many proactive steps for monitoring of loans like;

• Specialized cell for monitoring of accounts in the range of Rs.100.00 crore to Rs.250.00 crore and above, both headed by Senior Executives.

• A system of identifying Early Warning Signals(EWS) has been put in place to proactively identify the signals of Stress/ Warnings in the borrowal accounts to facilitate taking timely corrective steps.

• Advanced analytical tools are being utilized to predict Early Stress Signals covering non SMA and non NPA portfolio of the Bank's advances to facilitate initiating necessary measures to maintain the health of the Loan Book.

2.7 Your Bank is adopting the centralization /automation /integration of internal business processes in order to enhance quality of IT services. It is taking substantial measures in securing the IT assets of the Bank by implementing best-in-class IT Security and Risk Management Framework.

2.8 Your Bank is also thriving to streamline the banking services for customers with cutting edge technology. Door step Banking for Financial and Non-financial services including Jeevan Pramaan facility, Government e-Marketplace for Corporate Customers, FASTag integration for individual and corporate customers, Positive pay facility, Real-time integration with PMSVANidhi portal, GREEN PIN facility for all customers of the Bank at all the ATM terminals, Automated e-stamping and e-signing through NSEL, DIAL-A-LOAN facility for various loan products uptoRs. 5 crore, Straight through processing of online retail and MSME loans, implementation of E2E Digitisation for Shishu Mudra Loans upto Rs.50,000, Current account opening from Ministry of Corporate Affairs (MCA) Potal, Mobile Banking for NRIs, facility to apply for PMJJBY through Mobile Banking, NCMC technology in PoS machines for accepting contactless RuPay debit cards, Deposit calculator for calculating of maturity value of deposit, UToken facility through separate mobile app for generation of OTP in addition to the existing mode of OTP on mobile, Credit card module are some of the major initiatives taken during the FY 2020-21.

During 2020-21, the overall digital transactions grew from 74.43% in Mar'20 to 79.11% in Mar'21 registering a growth of around 5% during the year.

2.9 As a part of business process transformation, your Bank has envisaged technology innovations in providing hassle free services by launching HRMS mobile application on android and iOS platform for its valuable employees for immediate sanctioning and disbursement of perks and allowances. This application is secured with OTP based login authentication mechanism to enable the employees 24*7 access to carry out their day-to-day HR related activities on the fly. Bank's retired employees can also access this mobile app for pension details and medical insurance scheme.

2.10 Cyber Security Operation Centre (CSOC):Bank has implemented cyber security framework and instituted Cyber Security Operation Centre. A dedicated skilled team is deployed to manage the CSOC. The CSOC helps to identify, detect, protect & prevent the cyber threats.

3. Business Highlights:

3.1 The global business of the Bank stood at Rs.15,77,490 crore as on March 31,2021.

3.2 Total Deposits increased to Rs.9,23,805 crore as on March 31, 2021. Out of this CASA share (current account and saving account) stood at 36.33 % as on March 31,2021.

3.3 Gross Advances stood at Rs. 6,53,684 crore as on March 31,2021.The RAM (Retail, Agriculture and MSME) sector stood at Rs.3,67,825crore as on March 31, 2021 compared to Rs. 3,39,318crore as on March 31, 2020. RAM Sector as a whole grew at an annual rate of 8.40 %.

3.4 Overseas business of the Bank stood at Rs.18,191 crore as on March 31, 2021 compared to Rs.24,345 crore as on March 31, 2020. Your Bank has three overseas branches at 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

4. Income and Expenditure:

Table 1: Income and Expenditure Statement (Rs. in crore)

Sl. Parameter FY 2020-21 FY 2019-20*
1 Interest Earned 68767 37231
2 Other Income 11337 5261
3 Total Income (1+2) 80104 42492
4 Interest Expended 44079 25794
5 Net Interest Income (1-4) 24688 11437
6 Operating Expenses 16766 7516
w/w Establishment Expenses 9025 3359
7 Total Expenditure 60845 33311
8 Operating Profit (3-7) 19259 9181
9 Provisions 16353 12079
10 Net Profit/Loss 2906 -2898
11 Earnings per share (in Rs.) 4.54 -12.49

*Figures are related to standalone Union Bank of India financial results for pre amalgamation period, hence not comparable with post amalgamation financial results for the year ended March 31,2021.

5. Profitability and Efficiency:

5.1 Your Bank reported an Operating Profit of Rs.19,259 crore in FY 2020-21 as compared to Rs.9,181crore in FY 2019-20.

5.2 Netprofit of the Bank stood at Rs.2,906 crore in FY 2020-21.

5.3 Cost-to-income ratio of your Bank stood at 46.54 % in FY 2020-21

5.4 During FY 2020-21, Return on Average Assets stood at 0.27%, whereas Return on Equity stood at 6.68%.

Table 2: Efficiency Ratios

Parameter (%) FY 2020-21 FY 2019-20*
Return on Average Assets 0.27 (-) 0.53
Return on Equity 6.68 (-) 12.52

5.5 The following are the key productivity ratios of the Bank for FY 2020-21.

Table 3: Productivity Ratios

Parameter FY2020-21 FY2019-20*
Business per Employee (Rs. in crore) 20.17 21.37
Business per Branch (Rs. in crore) 169.35 186.18
Gross Profit per Employee (Rs. in lakh) 24.63 24.60

5.6 Dividend:

Board of the Bank has not recommended any dividend for FY 2020-21.

6. Shareholders' Return:

6.1 The Bank's net worth was Rs. 43,507 crore as on March 31,2021*.

*Figures are realated to standalone Union Bank of India financial results for post amalgamation period, hence not comparable with pre amalgamation financial results for the year ended March 31,2020.

7. Asset Quality:

7.1 Gross Non-Performing Assets (GNPA) of the Bank stood at Rs.89,788 crore as on March 31, 2021. GNPA as per cent to gross advances stood at 13.74 % as on March 31,2021.

8. Capital Adequacy :

8.1 The Capital Adequacy Ratio as per BASEL III norms stood at 12.56% as on March 31, 2021.Common Equity Tier I (CET I) capital of the Bank stood at 9.07% in March 2021.

7.2 Net NPA of the Bank stood at Rs.27,281 crore as on March 31,2021 and the Net NPA ratio stood at 4.62 % as on March 31,2021.

Table 4: Capital Adequacy Ratios - B;

( Rs. in crore)

Parameters RBI Minimum Benchmark March 31, 2021 March 31, 2021 March 31, 2020 (Pre amalgamation)
Total Risk Weighted Assets 5,51,521 2,94,984
Total Capital Funds NA 69,262 37,790
CET 1 Capital 50,001 27,714
Tier 1 Capital 57,090 31,714
CRAR (%) 10.875 12.56 12.81
CET 1 (%) 7.375 9.07 9.40
Tier 1 (%) 8.875 10.35 10.75
Tier 2 (%) NA 2.21 2.06

Note: RBI minimum benchmarks are including CCB (Capital Conservation buffer) of 1.875 per cent in CRAR, CET 1 and Tier 1 ratios. There is no minimum for Tier II ratio.

8.2 Capital raised by the Bank

The Bank has issued and allotted Basel III compliant Tier 1 Bonds of Rs.1705 crore and Tier II Bonds of Rs.2000 crore during the FY 2020-21.

9. Network

Network of your Bank is spread across the country with 9312 branches as on March 31,2021. The Bank also has threefull fledged overseas branches. Out of these 56% of the branches are located in rural and semi-urban centres. The Bank has network of 12957 ATMs as on March 31,2021.

10. Awards & Accolades:

During FY 2020-21, your Bank received various awards for its new initiatives taken in Digitization, Financial Inclusion, HR management, Customer Service etc.

Awarded By Category Year
National Feather Award Hall of Fame Award for MD & CEO

30-Apr-21

Best Advance in Competency Management
Best in Training & Organizational Development
CHRO of the year
Golden Peacock Golden Peacock HR Excellence Award - 2020 Apr-21
Apex India HR Excellence Awards & Business Excellence Awards Apex India Best Strategy in HR 2020

Apr-21

Apex India HR Oriented CEO Award 2020
Greentech HR Award Technology Excellence

Feb-2021

Leading CEO of the year
Global HR Excellence Award by World HRD Congress Best Service Provider in HR

Feb-2021

Award for Excellence in Learning & Development
CHRO of the Year
World CSR Congress CEO of the Year

Feb-2021

Best Training solutions during COVID 19 times
The Future of Tech Congress & Awards presents ‘The Internet Entrepreneur Awards The best Digital Transformation of a training programme in response to Covid 19 Oct-2020
Golden Peacock Golden Peacock National Training Award 2020 July-2020

11. Social Media:

11.1 Your Bank has expanded the reach across all the major social media platforms like Facebook, Twitter, Instagram, YouTube and LinkedIn under project Union Connect.Your Bank's official pages are very responsive and reply within minutes.

11.2 As a part of Digital Marketing, your Bank is also engaged in e-commerce business tie-ups to promote Bank's products & services. Bank conducts campaigns through Google Ads, YouTube and LinkedIn to promote it's products and services and get more reach on Corporate Website.

The total followers on official Social Media handles of your Bank as at March 2021 stood at 19.51 lakh.

12. Changes in the Directors on the Board of the Bank:

The following changes took place in the Board of directors of your Bank during the financial year 2020-21.

• Shri Nitesh Ranjan has been appointed as an Executive Director in the Board of the Bank on March 10, 2021.

• Shri Birupaksha Mishra has been appointed as an Executive Director in the Board of the Bank on April 01, 2020 and completed his term in the office on January 31, 2021 upon superannuation.

• Shri Rajiv Kumar Singh, Chartered Accountant Category Director of the Bank has completed his term in the office on February 5, 2021.

• Dr. Madhura Swaminathan, Part-Time NonOfficial Director of the Bank has completed her term in the office on December 26, 2020.

• Shri Kewal Handa, Non-Executive Chairman and Part-Time Non-Official Director of the Bank has completed his term in the office on July 5, 2020.

13. Directors' Responsibility Statement

The Directors confirm that in the preparation of the annual accounts for the year ended 31stMarch, 2021:

• The applicable Accounting Standards had been followed along with proper explanation relating to material departures, if any.

• Accounting Policies had been selected and applied them 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 the Bank at the end of the financial year and of the profit and loss of the Bank for that period.

• Proper and sufficient care was taken for the maintenance of adequate Account Records in accordance with the provisions of the relevant Acts for safeguarding the assets of the 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 the bank and that such internal financial controls are adequate and were operating effectively.Explanation.- For the purposes of this clause, the term "internal financial controls" means the policies and procedures adopted by the Bank for ensuring the orderly and efficient conduct of its business, including adherence to Bank's policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting recods 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.

14. Corporate Governance

The Board of the Bank is committed to adopt 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 financial year 2020-21 has no audit qualifications.

15. Corporate Social Responsibility (CSR):

15.1 Union Bank of India has been in the forefront in meeting its CSR commitments. Towards this the Bank has established Union Bank Social Foundation Trust (UBSFT) in the year 2006 as an extended arm for carrying out the CSR activities of the Bank. The major CSR activities of the Bank are now being carried out through the UBSFT. Its Board is headed by the Bank's Managing Director & CEO with executive directors as Vice Chairman Trustees, other trustees include the Bank's General Managers and one independent trustee. The UBSFT Board provides directions in accordance with the 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 at Bengaluru, the administrative office is at Mumbai.

Bank has also formed CSR committee of the directors of the Bank to monitor and guide the CSR activity of the bank so also that of UBSFT on quarterly basis. The committee is Headed by MD & CEO, Executive directors and one part time nonofficial Director nominated under 9(3)(h) of the Banking Companies (Acquisition & transfer of Undertaking) Act 1970 and one Share holder director elected under section 9(3)(i) of the Banking Companies (Acquisition & transfer of Undertaking) Act 1970.

UBSFT has been incorporated aiming to support initiatives towards Social upliftment & improving lives of underprivileged segments.

15.2 The CSR activities undertaken by the Bank in 2020-21

UBSFT has approved 6 projects involving an amount of Rs.78.09 lacs during the year 2020-21 under various sectors like Education, Health care, Community Development, Sanitation etc. details of which are given below:

• Supported Narayana Hrudayalaya, Bengaluru Karnataka for purchase of two ventilators at a cost of Rs. 11.20 lakh for treating COVID 19 patients.

• Supported Mulki Sunder Ram Shetty Memorial Charitable trust, Mulki, Karnataka for purchasing of one generator set at a cost of Rs. 14.75 lakh for their convention centre.

• Supported 3 Government schools in Palghar district for construction of toilet blocks at a cost of Rs. 20.32 lakh. Project implemented through Rotary Club of Bombay Queen City Foundation.

• Supported Municipal Corporation Machilipatanam for construction of one RCC Bus shelter at a cost of Rs. 2.50 lakh.

• Supported Bhavita Special school, Machilipatanam for construction of iron compound wall and purchase of physio therapy equipments at a cost of Rs. 3.82 lakh.

• Approved for setting up of mini science laboratory at a cost of Rs. 25.50 lakh for visually challenged students at NAB Worli centre.

16. Acknowledgement:

16.1 The Directors thank the shareholders, valued customers, well-wishers, Share Transfer Agent and correspondents of the Bank in India and abroad for their goodwill, patronage and support.

16.2 The Directors acknowledge with gratitude the valuable and timely advice, guidance and support received from 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 the Bank, in the functioning of the Bank.

16.3 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 the Bank during the year and look forward to their continued co-operation in the realisation of the corporate goals of the Bank in the years ahead.

16.4 The Directors express deep condolences and gratitude for the members of the staff who lost their precious lives during COVID-19 Pandemic. 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 (Rajkiran Rai G)
Date : 05.07.2021 Managing Director & CEO

   

Union Bank of India Company Background

Rajkiran Rai G
Incorporation Year1919
Registered Office239 Vidhan Bhavan Marg,Nariman Point UnionBank Bhavan
Mumbai,Maharashtra-400021
Telephone91-22-22896643/36,Managing Director
Fax91-22-22025238
Company SecretaryMangesh Mandrekar
AuditorB M Chatrath & Co LLP/C R Sagdeo & Co/NBS & Co
Face Value10
Market Lot1
ListingBSE,MSEI ,NSE,
RegistrarDatamatics Financial Services
Plot No B-5 MIDC ,Part B Cross Lane ,Marol Andheri(E) ,Mumbai-400093

Union Bank of India Company Management

Director NameDirector DesignationYear
Mangesh Mandrekar Company Secretary 2021
Rajkiran Rai G Managing Director & CEO 2021
Uttam Kumar Sarkar Director(Shareholders) 2021
K Kadiresan Director(Shareholders) 2021
Jayadev M Director(Shareholders) 2021
Gopal Singh Gusain Executive Director 2021
Manas Ranjan Biswal Executive Director 2021
Arun Kumar Singh Nominee (RBI) 2021
Nitesh Ranjan Executive Director 2021
Rajneesh Karnatak Executive Director 2021
Sameer Shukla Nominee (Govt) 2021

Union Bank of India Listing Information

Listing Information
BSE_500
BSE_200
BSEDOLLEX
BSE_PSU
CNX500
BSEMID
CNXMIDCAP
PSUBANK
CNX200
BSEALLCAP
BSEFINANCE
MID150
LMI250
MSL400
BSEEVI
NFTYLM250
NFTYMC150
NFTYMSC400
NF500M5025

Union Bank of India Finished Product

Product NameUnit Installed
Capacity
Production
Quantity
Sales
Quantity
Sales
Value
Interest/Discount on Adv/BillsRs.00025078.6979
Income on investments Rs.00010572.8598
Interest on Balances with RBI Rs.0001200.2836
Others Rs.000379.2825

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