Highlights of Bank s Performance during QE Sep'2015

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3 The macro picture the economic outlook is far from stable with the expansion in factory output growth slowing down yet again in September and the Consumer Price Index rising for the third straight month based on results of 2300 companies which have declared results so far, it was another muted quarter for India Inc, with aggregate profit growth at both the operating and net level growing at only under one per cent over a year-ago period the outlook for exports continues to be gloomy. Exports of goods slid for the 11 th consecutive month falling per cent to $21.35 billion in Oct 2015 compared to the same month last year the recovery in infrastructure remains confined to a few sectors the downtrend in growth has resulted in excess capacity and consequently lack of pricing power the weak global backdrop is likely to keep external demand muted and the much-awaited private sector investment pick up could take longer given the stressed assets in the system, debt overhang in key sectors and global excess capacity sustained recovery in consumer demand aggravated by lack of rural demand - is still awaited rural demand has been dented by (a) a projected 2% drop in kharif grain harvest, (b) damages to the rabi crop from unseasonal rains, (c) a plunge in commodity prices for more than a year, and (d) low wage growth 3

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5 Highlights of Bank s Performance during QE Sep'2015 DEPOSITS at Rs. 216,464 Cr. (Rs.203,554 Cr.) as on 30 th Sep'2015, registered 6.34% growth over the year-ago position despite more than Rs Cr. drop in our Iranian Vostro a/c deposits (caused by sharp fall in the INR component of deposits by Indian oil importing companies ) our Core Deposit at Rs. 150,755 Cr. (Rs. 136,614 Cr.) as on 30 th Sep'2015 grew 10.35% YoY Cost of deposit at 6.17% for Q2FY15-16 was maintained at the same level as in the Jun 2015 qtr. (6.12%) and was less by 31 basis points over the corresponding qtr last FY ADVANCES Golbal Advances at Rs. 143,598 Cr. (Rs. 143,163 cr.) as on 30 th Sep'2015 remained at the same level as at year ago in the backdrop of Bank containing large corporate advances keeping in mind the operating environment the AAA rated borrowers preferring to tap the Money Market for funds at finer rates, after pre-paying Bank s loans Retail Assets as on Sep 2016 saw rise of 12.37% YoY Home Loan clocked 27.30% YoY growth Loans to SME sector grew 14.19% INCOME Total income in Q2FY15-16 increased to Rs. 5,308 Cr. from Rs. 5,257 Cr. in Q2FY14-15 Net Interest Income saw 2.38% YoY rise at Rs. 1,416 Cr. (Rs. 1,383 Cr.) in the Jul-Sep 15 qtr. Other income in Q2FY15-16 grew 14.5% YoY to reach Rs.411 Cr. (Rs. 359 Cr.) 5

6 Highlights of Bank s Performance during QE Sep'2015 PROFITS Operating Profit for Q2FY15-16 at Rs 1129 Cr. recorded a 6.91% growth over the corresponding qtr in last FY (Rs Cr.) despite (a)reducing base rate, & (b) operating in a very challenging environment with subdued loan growth Bank s Net Profit for the qtr. registered a sharp 50% growth to clock Rs. 156 Cr. (Rs. 104 Cr.) SOME IMPORTANT RATIOS Domestic NIM during the qtr. stood at 2.45% As on 30 th Sep'2015, NPA provision coverage ratio at 53.90% was 6 basis points more than at QE 30 th Jun 2015 Cost to income ratio for Q2FY16 at improved by 117 basis points over corresponding qtr last FY when it was Bank s CAR as per Basel-III as at QE Sep'2015 was healthy at

7 Movement of business parameters [ Amt. in Rs. Crore except otherwise mentioned] PARAMETERS QE/ As on Change (%) 30 Sep' Mar' Sep'2014 Sep'15/ Sep'14 Total Deposit at end of Qtr Total Advance at of Qtr Total Income Net Interest Income Operating Profit Provisions Net Profit Gross NPA (Rs.Cr.) Gross NPA % Net NPA (Rs.Cr.) Net NPA % CASA Cost to income (%) ROA NIM (Global) NIM (Domestic) NPA Prov coverage Book Value per share (Rs.)

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9 Deposit components [ Amt. in Rs. Crore ] Parameters A) Deposit (Domestic) (i+ii+iii) As on 30-Sep'15 As on 31-Mar'15 As on 30-Sep' Current Savings i. CASA Share of CASA (%) ii. Normal Term Deposit iii. Bulk Deposit Core Deposit B) Deposit (Overseas) C)Total Deposit (Global) Bank s Savings Deposit at Rs. 37,711 Cr. & Core Deposit at Rs. 150,755 Cr. as on 30 th Sep'2015 grew 9.05% & 10.35% YoY, respectively 9

10 Investment Portfolio as on Investment in SLR (G Sec) Portfolio Amount INR Crore % to NDTL HFT AFS 31, HTM 31, Sub Total (Investment in SLR) 62, Investment in Non - SLR HFT AFS 7, HTM Sub Total (Investment in Non - SLR) 7, Gross Total (SLR + Non-SLR) 70, Through judicious utilization of market opportunities, Bank achieved strong treasury gains. During Q2FY 16 treasury recorded profit of Rs. 273 Cr. (Rs. 117 Cr.) from sale of investment and exchange transactions, which was 133% more compared to corresponding quarter last year There was no depreciation in value of Fixed Income securities during the qtr. 10

11 Investments over the years [ Amts. in Rs. Crore ] SLR (G-sec) Non-SLR TOTAL CATEGORY Composition as on 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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13 Impaired Assets movement Q-o-Q [ Amt. in Rs. Crore ] Due to close & pro-active monitoring of asset health, fresh slippages in the quarter at Rs Cr. was 11.82% less compared to Q2FY14-15 slippage of Rs Cr. 24.3% of new NPAs during Jul-Sep 15 were restructured assets amounting to Rs Cr., with maximum slippages in Infrastructure, Real estate, Pharmaceutical & Engineering industries As on 30 th Sep 2015, Bank s Restructured Std. assets at Rs Cr. decreased 25.14% over the year-ago position(rs. 12,879 Cr.) and by 4.04% over 30 th Jun 2015 position ( Rs Cr.) Parameters As on / during the QE Sep'15 As on / during the QE Mar'15 As on / during the QE Sep'14 Gross NPA (Opening beginning of Qtr) Fresh Slippage (during the Qtr) Recovery + Upgradation Write off Gross NPA (Amt.) Gross NPA (%) 8.51% 6.76% 5.20% Net NPA (Amt.) Net NPA (%) 5.15% 4.30% 3.15% 13

14 Sector wise NPAs (Domestic) [ Amt. in Rs. Crore ] Parameters As on / during the QE Sep'15 Mar'15 Sep'14 1 Agriculture & Allied Activities Micro & Small Industries Medium Industries Large Industries Services Retail All Others Total NPAs from Large & Medium industries at Rs Cr. constituted 51.58% & those from Agri & Allied sectors 13.32% of total NPAs as on 30 Sep'

15 Restructured Standard Assets Q2 FY Details Amt.(Cr.) Total Restructured Assets as on 01 July Add: Standard Accounts restructured during Q2 FY Less: Total Standard Restructured accounts closed during Qtr.* 0.00 Add: Increase/Decrease in O/s balance during the quarter Less: Accounts slipped to NPA Total Standard Restructured as on 30 Sep % age of Restructured Advances to Total Loans and Advances as on Sep, 2015 [Global Advances being Rs crores] 6.71 * Including the accounts which cease to attract higher provisioning Industry As on As on As on Iron and Steel Infrastructure Power and Distribution Textiles Cement Others Total

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17 Income, Expenditure & Profit (Global) [ Amt. in Rs. Crore] During Change During Change Q2 FY 16 Q2FY 15 Amt. % H1 FY 16 H1FY 15 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

18 Ratio Analysis During During Q2 FY 16 Q2FY 15 H1 FY 16 H1FY 15 Cost of Deposit (%) Yield on Advances (%) Yield on Investment (%) Net Interest Margin Global (%) Net Interest Margin Domestic (%) Cost to Income Ratio (%) GNPA (%) NNPA (%) NPA Provision Coverage (%) CRAR (Basel-III) (%)

19 Profitability Indicators During During Q2 FY 16 Q2FY 15 H1 FY 16 H1FY 15 Return on Assets (%) Return on Equity (%) Book Value per Share (Rs.) Earnings per Share (Rs.) Net Worth (Absolute) excl. revaluation reserve Op. Profit to AWF (%) Net-interest income to AWF (%) Non-interest income to AWF (%)

20 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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22 As on Changing Employee profile Employee Profile Officers Staff All UCO Number Av. Age Number Av. Age Number Av. Age 31-Mar Mar Mar Mar Mar Sep percentage of officers below 30 yrs which was only 7.28% as on Mar 2011 has increased almost 5 times to 34.65% as on Sep'2015 the average age of employees has come down from as on Mar 2011 to 42.78, as on Sep'2015. For officers it has come down to years from years, during the same period Age Profile As on <= 30 yr >30 yrs to 45 yrs > 45 yrs to 55 yrs >55 yrs 31-Mar-11 Officers 7.28% 10.99% 47.79% 33.95% 30-Sep-15 Officers 34.65% 22.53% 14.81% 28.01% 31-Mar-11 Staff 4.19% 14.70% 47.92% 33.19% 30-Sep-15 Staff 25.36% 15.60% 26.66% 32.37% 31-Mar-11 All UCO 5.30% 13.37% 47.87% 33.46% 30-Sep-15 All UCO 29.89% 18.98% 20.88% 30.24% 22

23 Notable New initiatives system has been put in place for our current account customers to receive monthly statement of account in their registered ID facility for recording new/ deleting existing Standing Instruction has been introduced for ebanking users system has been introduced for sending SMS to customer s registered mobile number in the event of business decline of ATM transaction RuPay enabled EMV chip card with validity of 7 years has been introduced Bank has tied up with for offering discounted promotional offers to our valued customers on online recharge using UCO BANK DEBIT CARD three new payment gateways i.e. Atom, Worldline, Zaakpay for providing direct debit facility through Net Banking to our Bank s customers taking the total such tie up to 11 (with payment gateways) Goibibo.com for offering discounted promotional offers on travel bookings i.e. Domestic and International Flights, Hotels and bus bookings Bank has launched a holistic new mobile application which offers services like IMPS, ticketing, recharges and Bill payments necessary infrastructure has been put in place such that all Zonal Offices, Circle Offices, Staff Training Colleges and HO departments of the Bank are equipped with Video Conferencing facility 23

24 Thank You. 24