Macro economic indicators

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3 Macro economic indicators 3

4 The Macro picture Underlying economic currents remained weak for India throughout FY15. Official estimates of GDP place economic growth for FY15 at 7.3% to 7.5% Subdued inflation paving the way for rate cuts- RBI has already cut REPO rate by 75 bps until now (last rate cut was 25 bps on 2 nd June 2015). 4

5 The Economic & Banking scenario Overleveraged Indian Corporate Debt laden and struggling after 2 years of weak economic expansion With the economy not picking up as expected, many companies were unable to service their debt, leaving no room for fresh credit demand Growth rate in bank lending in FY 15 at 12.6% is the lowest in almost 2 decades Another factor that has weighed on bank loans is cheaper availability of funds through commercial papers & bonds Legislative setbacks, still subdued corporate profitability & a slow pace of growth recovery has led to rising impaired assets on public sector bank balance sheets 5

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7 Highlights of Bank s Performance during QE & FY ending Mar'15 CAR at 12.17% ( Basel-III) of our Bank is the highest amongst the banks of the same size and ranks 4 th when compared with other PSU Bank s. Our Cost to Income ratio for FY 15 at 37.74% is one of the lowest in the industry. Average cost of deposit at 6.35% is one of the lowest among peer banks and the third lowest among the PSU Bank s. The ROE at 10.41% for FY 2015 is the third highest among PSU Banks. Our Bank pursued a conscious strategy of selective growth in quality credit. The total Advances as at Mar 15 stood at Rs lac cr., almost at the same level as at Mar 14 Global Deposit (Rs lakh cr.) as on 31 st Mar 15 registered 7.42% YoY growth. Core deposits grew by 10.8% YoY to reach Rs lac cr. & formed 75.1% of Total Domestic Deposits as on Mar 15 CASA deposits as on Mar 15 stood at Rs. 62,375 cr. which was % of domestic deposit Retail Assets as on Mar'15 showed healthy rise of 20% YoY to reach Rs. 18,718 cr. 7

8 Highlights of Bank s Performance during QE & FY ending Mar'15 Both our Operating Profit & Net Profit for FY 15 banks. are the highest amongst peer Operating Profit for Q4FY'15 was Rs Cr. (Rs Cr.) while same for FY'15 was Rs Cr. (Rs cr.) Net Profit for Q4FY'15 was Rs Cr. (Rs. 285 Cr.) while same for FY'15 was Rs Cr. (Rs cr.). Treasury Profits from sale of investments and foreign exchange gain for the FY at Rs: Crore is one of the highest among peer banks. Treasury profit for Q-4( ) was Rs: 459 Crores. Other income registered 51.70% growth one of the highest amongst PSBs - to reach Rs Cr. (Rs Cr.) Total income in the current fiscal rose by 9.27% YoY to Rs cr. (Rs. 19,550 cr.) Bank acquired lac (34.79 lac) new customers in FY'15 8

9 Movement of business parameters [ Amt. in Rs. Crore ] FY PARAMETERS Change (%) Y-O-Y Q Change (%) Y-O-Y Total Deposit at end FY % % Total Advance at end FY % % Total Income % % Net Interest Income % % Operating Profit % % Provisions % % Net Profit % % Gross NPA (amt.) % % Gross NPA % Net NPA (amt.) % % Net NPA % CASA(Dom.) % % Cost to income (%) ROA NIM (Global) NIM (Domestic) NPA Prov coverage Book Value per share % % 9

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11 Deposit components [ Amt. in Rs. Crore ] QE Mar'14 Parameters QE Mar' A) Deposit (Domestic) Current Savings CASA % Share of CASA (%) 32.23% Normal Term Deposit Core Deposit B) Deposit (Overseas) C)Total Deposit (Global)

12 Retail Business [ Amt. in Rs. Crore ] Position as on Position as on Scheme Position as on Amount Amount A/c Amount UCO Home UCO Car UCO Education UCO Cash Other Retail Schemes Total Retail

13 Investment Portfolio as on [ Amts. in Rs. Crore ] Portfolio Amount INR Crore % to NDTL Investment in SLR (G Sec) HFT 0 0 AFS % HTM % Sub Total (Investment in SLR) Investment in Non - SLR HFT 0 0 AFS HTM Sub Total (Investment in Non - SLR) Priority Sector Investment Gross Total (SLR + Non-SLR)

14 Investments in Last 5 years [ Amts. in Rs. Crore ] SLR (G-sec) Non-SLR TOTAL Composition as on CATEGORY H T M % of Net Investment A F S % of Net Investment H F T % of Net Investment Gross Investment Depreciation & Provision Net Investment

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16 Banks Asset Health The reality check FY 15 was an exceptionally bad year for state-owned lenders since loan growth slipped to record lows while impaired assets hit new highs & provisions soared The investment cycle is showing no signs of revival yet & demand for various consumer goods remains subdued. There is industrial over-capacity & part of the reason for low inflation is lack of demand Banks are struggling to cope with sticky assets, since many infrastructure projects remain stalled & debt piling up in the books of infrastructure companies is a major roadblock to revive sentiment Companies are in trouble & corporate cash-flows are going to be strained for several years which means credit costs could continue to rise since it is not going to be easy to recover the money The low credit growth has affected bank books. The low credit expansion meant less earning from interest income. Also non-performing accounts made a dent into interest income 16

17 Impaired Assets movement Q-o- Q [ Amt. in Rs. Crore ] As on / during the QE Mar' Parameters Gross NPA (Opening beginning of Qtr/ FY) As on / during the QE Jun'14 Sep'14 Dec'14 Mar'15 As on/during FY ' Slippage (during the Qtr/FY) Recovery + Upgradation Write off Gross NPA (Closing end of Qtr / FY) % Gross NPA (%) 4.31% 5.20% 6.50% 6.76% 6.76% Eligible Deductions including Provisions (net of write back & write off) at QE Net NPA % Net NPA (%) 2.33% 3.15% 4.25% 4.30% 4.30% 17

18 Sector wise NPAs (Domestic) [ Amt. in Rs. Crore ] NPAs from Large & Medium industries at Rs Cr. constituted % & those from Agri & Allied sectors 13% of total NPAs as on 31 Mar 15 Standard Restructured assets worth Rs Cr. (i.e.23% of opening balance on ) slipped into NPA category in FY 15 Parameters As on / during the QE Mar'14 Jun'14 Sep'14 Dec'14 Mar'15 1 Agriculture & Allied Activities Micro & Small Industries Medium Industries Large Industries Services Retail All Others Total

19 Restructured Standard Assets Q4 FY'15 Details Amt.(Cr.) Total Restructured Assets as on 01 Jan Add: Standard Accounts restructured during Q4FY' Less: Total Standard Restructured accounts closed during Qtr.* - Less : Accounts slipped to NPA Total Standard Restructured as on 31 Mar' % age of Restructured Advances to Total Loans & Advances as on March, 2015 [Global Advances being Rs Cr.] * Including the accounts which cease to attract higher provisioning Details for FY Amt.(Cr.) Total Restructured Assets as on 01 Apr Add: Standard Accounts restructured during FY Less: Total Standard Restructured accounts closed during FY* Less : Accounts slipped to NPA Total Standard Restructured as on 31 Mar' * Including the accounts which cease to attract higher provisioning 19

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21 Income, Expenditure & Profit (Global) [ Amt. in Rs. Crore] During Qtr. YoY Change During FY YoY Change Q4 FY'14 Q4FY'15 Amt. % Amt. % % I)Total Income (a+b) : % a)interest Income % Interest on Advances % Income on Investments Other Interest Income b)other Income II)Total Expenses Interest Paid Operating Expenses III)Operating Profit (I-II): IV)Provisions V)Net Profit (III-IV) : Net Interest Income

22 Ratio Analysis During During FY Q4 FY'14 Q4FY' Cost of Deposit (%) Yield on Advances (%) Yield on Investment* (%) Return on Investment * (%) Net Interest Margin Global (%) Net Interest Margin Domestic (%) Cost to Income Ratio (%) GNPA (%) NNPA (%) NPA Provision Coverage (%) CRAR (Basel-II) (%) *Excluding RIDF Investment 22

23 Profitability Indicators During During FY Q4 FY'14 Q4FY' Return on Assets (%) Return on Equity (%) Op. Profit to AWF (%) Book Value per Share (Rs.) Earnings per Share (Rs.) Net Worth (Absolute) excl. revaluation reserve % 2.12% Net-interest income to AWF (%) 2.82% 2.35% 0.80% 1.10% Non-interest income to AWF (%) 0.61% 0.85% 23

24 Capital Adequacy [ Amt. in Rs. Crore] PARAMETERS Total Risk Weighted Assets Credit Risk Market Risk Operational Risk Total Capital Fund Tier I Capital Fund Tier II Capital Fund Under BASEL II Capital Adequacy Ratio (%) Tier I (%) Tier II (%) Under BASEL III Capital Adequacy Ratio (%) Tier I (%) Tier II (%)

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26 Awards & Accolades in FY'14-15 Business Today magazine ranked UCO Bank 7th in the BT-KPMG FY Bank rankings, after 6 top private sector banks & only one bank in the Public Sector. UCO Bank s rank was 20 in FY In the Fastest Growing Bank Rankings by Business World magazine, UCO saw a big jump in its growth rankings to the 7 th position in 2014, from 17 th in 2013 UCO Bank received prestigious SKOCH AWARD for Excellence in Banking in Financial Inclusion & Deeping 2014 Adjudged as the best banker at the national level for the year & awarded Banking Excellency Award by State Forum of Bankers Club at Kochi in Dec 2014 UCO has won the Best Bank award for operational performance & runner-up prize for being tech-savy in MSME Banking Excellence Awards organized by Chamber of Indian Micro Small & Medium Enterprises. UCO Bank had been awarded First Prize for Highest average loan to SHGs in West Bengal State during the year under Commercial Bank category on the eve of celebration of NABARD Foundation Day on

27 New initiatives Recent launching of UCO SMART Kids - a liability product for children of 10 years and above and UCO Yatra - a new loan product Introduction of mobile Banking facility that allows to view account related information, transfer funds, recharge mobile account and much more Allowing Balance Inquiry & Mini Statement display of OD, CC, CA & SB a/cs through Missed Call at specified mobile nos. from registered mobile no. Launching of Loyalty Reward Programme (to boost ADC usage) whereby customers need to log onto for enrolment and redemption of reward points for use of Debit Card/ UCO Bank ATM Withdrawal/ Net Banking / Online Shopping/ setting Auto-Debit from SB A/cs for Retail Loans Bank has implemented unique Smart Card Based FI Solution with 4 different Corporate BC Partners. This model has the unique feature which allows interoperability among the BCs as well as real time online transactions straight from the remotest village with Bank s CBS 27

28 Financial Inclusion initiatives Initiatives During Q4FY15 Cum. as on Villages covered with > 2000 population (a) through Branches through BCs Villages covered with < 2000 population (b) through Branches through BCs Total no. of villages covered (a) + (b) Total no. of BSBD accounts opened (In lakh) USBs opened 3072 (During the year ) 4317 No. of Smart card issued (In lakh) No. of transactions in the a/cs opened under ICT based BC model (in lakh) No. of KCCs extended (In lakh) No. of GCCs extended (In lakh) No. of all other Deposit accts (In lakh) No. of all other Advance accts (In lakh) No. of SHGs credit linked No. of JLGs credit linked

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30 Growth in touch points Branches (Global) USB Mar'10 31Mar'11 31Mar'12 31Mar'13 31Mar'14 31Mar' Mar'10 31Mar'11 31Mar'12 31Mar'13 31Mar'14 31Mar'15 ATMs Cards (lacs) 31Mar' Mar' Mar' Mar' Mar' Mar' Mar' Mar' Mar' Mar' Mar' Mar'

31 Customer acquisitions (in lakhs) FY' FY' FY' FY' FY'

32 Changing Employee profile % age of officers below 30 yrs, stands at 33.53% as on Mar 15 from only 7.28% as on Mar 2011 Officers below 45 yrs. have jumped 3 times in the last three & half years & today constitute 54% of total officers strength, as against only 18% as on Mar 2011 The average age of employees has come down from as on Mar 2011 to & that of officers to years, as on Mar years hence it will be a truly young workforce bringing in dynamism & modern outlook Employee Profile As on 31-Mar Mar Mar Mar Mar-15 Officers Staff Officers Staff Officers Staff Officers Staff Officers Staff <= 30 yr % 4.19% 11.16% 8.67% 23.40% 9.96% 28.49% 14.36% 33.53% 22.07% >30 yrs to yrs 10.99% 14.70% 11.46% 13.47% 13.72% 16.99% 16.66% 14.65% 20.26% 14.33% > 45 yrs to yrs 47.79% 47.92% 40.88% 43.35% 29.72% 43.35% 23.11% 39.58% 16.92% 29.03% >55 yrs % 33.19% 36.51% 34.51% 33.16% 29.70% 31.74% 31.40% 29.28% 34.56% Category Total Total Employee

33 CAGR between 31Mar 10 & 31Mar' Total Deposits Total Advances CASA Employees Biz/ emp. Net Interest Income Operating profit Net Profit Op. Profit/emp. Net profit/emp. 33

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