PRESS RELEASES

Financial Result for the year ended 31.03.2007

• Net Profit up by 61.22% for year 2006-07.

• Total Business up by 21.62% for year 2006-07.

• Total Advances up by 25.52% for year 2006-07.

• Total Deposits up by 18.91% for year 2006-07.

• Total Income crosses Rs. 5000 crore during the year 2006-07.

• Interest Income in Q4 (2006-07) higher at 24.00% over the corresponding quarter of previous year.

• Interest Earned on Advances up by 34.54% for year 2006-07.

• Non-interest Income (excluding income from treasury) up by 33.22% for 2006-07.

• Capital Adequacy Ratio at 11.56% at end-March, 2007.

• Targets to cross total business of Rs.2,00,000 crore by 2010.

• Plans to bring 75% of the business under Core Banking Solution (CBS) by 31.03.08.

• Several new initiatives planned for the year 2007-08.

UCO Bank has announced its audited results for the fourth quarter of 2006-07 (Q4, 2006-07) and for the entire year 2006-07 (April-March) following the approval of its Board of Directors on April 30, 2007.

Business

As at the end of March, 2007 our Bank has achieved a total business level of Rs.112331 crore as against Rs.92361 crore as on 31st March, 2006 recording a year-on-year growth of 21.62% or Rs.19970 crore.

Deposits

Total Deposits of our Bank increased from Rs.54544 crore to Rs.64860 crore registering a growth of 18.91% year-on-year or Rs.10316 crore.

Advances

The Advances increased by 25.52% registering an increase of Rs.9654 crore. Advances increased from Rs.37817 crore as on 31.03.2006 to Rs.47471 crore as on 31.03.2007.

The Bank achieved the targetted goal of its Priority Sector advances of 40% of total advances. The total advances under Priority Sector increased by 22.73% in 2006-07 over 2005-06 and stood at Rs.17466 crore. Advances under agriculture stood at Rs.6154 crore, showing a growth of 25.03% in 2006-07 over 2005-06.
 

Operating Profit

The Operating Profit of the Bank for the year ended March, 2007 has recorded a jump of 23.85% to Rs.945 crore from Rs.763 crore in the year 2005-06.

The Operating Profit (net of Treasury Income) during the year 2006-07 was higher by 31.02% at Rs.891 crore in comparison to Rs.680 crore in the previous year 2005-06.

Net Profit

Net profit of the Bank increased by 61.22% to Rs.316 crore from Rs.196 crore in the year 2005-06. In the fourth quarter of the current fiscal, the Net Profit of the Bank stood at Rs. 31 crore in comparison to a loss Rs.59 crore in the corresponding quarter of the previous year.

Total Income

Total income recorded a year-on-year growth of 21.80% during the year ended March, 2007 in comparison to the previous year ended March, 2006 and grew to Rs.5760 crore from Rs.4729 crore. The Bank's total income in the fourth quarter of the current fiscal was higher by 23.74 % at Rs. 1616 crore in comparison to Rs. 1306 crores in the corresponding quarter of the last year.

Interest Income

The Bank's interest income posted a Y-O-Y growth of 22.14% to Rs.5318 crore during the year ended March, 2007 from Rs.4354 crore for the year ended March, 2006. Interest income from advances registered an increase of Rs.909 crore to Rs 3540 crore in 06-07 from Rs 2631 in 05-06 with a higher growth of 34.54% during the same period.

Interest Income in the fourth quarter of the current fiscal was higher at Rs. 1452 crore as against Rs. 1171 crore in the corresponding quarter of the previous year showing a Y-O-Y growth of 24.00 %. Income from Advances and Investments both showed better performance in the fourth quarter of the current fiscal in comparison to the fourth quarter of the corresponding period.

Non Interest Income

Non Interest Income (net of treasury income) increased by Rs.97 crore, at growth rate of 33.22% over the last year.

Treasury Income since the year 2003-04 is continuously on the decline. It has declined from Rs. 351 crore in the FY 2003-04 to Rs. 54 crore in the FY 2006-07, thereby impacting the growth of Non-Interest Income.

Recovery

NPA Recovery was higher at the end of March, 2007 at Rs.480 crore in comparison to Rs.414 crore as at the end of March, 2006. Recovery in written-off accounts is higher at Rs.65 crore as of March, 2007 in comparison to Rs.49 crore as of March, 2006.

Capital Adequacy Ratio

The Capital Adequacy Ratio improved to 11.56% compared to 11.12% a year ago and is well above the minimum required level of 9.00%.

Business Per Employee

The Business Per Employee of the Bank improved to Rs. 4.64 crore as at the end of March, 2007, from Rs. 3.87 crore as at the end of March, 2006. ( Average BPE of nationalised banks being Rs. 3.70 crore for the year 2005-06).

Earning Per Share

The Earning Per Share improved to Rs. 3.95 as at the end of March, 2007 from Rs. 2.46 as at the end of March, 2006.

Major initiatives taken by the Bank

During the current financial year 2006-07, the Bank has taken several new initiatives - technologically as well as other business initiatives which are as under :

1. Technology Initiatives :

• Core Banking Solution launched by the Bank during the first quarter of the current financial year 2006-07 at six branches became operational in 182 branches as on 31.03.2007 as against the target of 125 branches.

• Internet Banking facility christened "UCO e-banking" launched on 18th September, 2006 for all its customers at CBS branches.

• Anywhere Branch Banking (UCOABB) facility is available in 168 branches upto March, 2007.

• As on 31st March, 2007, the Bank has 275 branches providing SFMS/RTGS/NEFT services.

• Computerised Government Pension Payment System in 1400 branches covering 99% of the branches handling the pension payment.

• Introduced VISA International Debit Card, which can be used at around 20100 VISA enabled ATMs of various banks in India and 10 lakh ATMs across the Globe. This Card can also be used at 3.35 lakh POS (Point of Sale) Terminals in the country and 210 lakh POS abroad.

• The number of ATMs has been increased to 158 as on 31.03.2007 from 93 as on 31.03.06. The number of ATMs will go up to 250 by 30.06.2007.
   

2. New Business Initiatives :

A. Launching of New Products :

• New Tierised Current and Savings account product introduced in Sept.'06. The customer maintaining certain average balance in their accounts are provided with a host of concessional and privileged services.

• A new deposit scheme titled 'UCO Bank Tax Saver Scheme - 2006' introduced by the Bank w.e.f. 01.09.2006 for the benefit of the Bank's customers who are assessees of Income Tax.

• Launched three new Priority Sector products .
   

B. Mobilisation of Current and Savings Deposits through Retail and SE Sales Force.

Retail and SE Sales Force teams :

• Creation of number of Retail / SE sales force teams at 55 identified major cities across the country. 46 cities identified for an aggressive retail force push using a dedicated retail sales force and 43 cities identified for an aggressive SE push using a dedicated SE sales force.

• Retail sales force teams functioning at 44 centers across the country, Business Captured crossed Rs 1000 crore vis-à-vis target of Rs 784 crore.

• SE sales force teams functioning at 27 centres. Generated a Business of more than 500 crore.
   

3. Opening of new general banking branches and specialised banking branches :

• Opened 50 new general banking branches and upgraded 53 extension counters into full-fledged branches.

• 4 Flagship Corporate branches opened at Mumbai, Delhi, Kolkata and Chennai.

• Started 8 Mid Corporate branches at Mumbai, Delhi, Chennai, Hyderabad and Bangalore. Plans to start the said Corporate branches at 22 more centres during 2007-08.

4. Expansion of Overseas operations :

• Opened a new Representative Office at Guangzhou in China.

5. Organisational Re-structuring :

• During the year 2006-07, as a part of organisational re-structuring, the Bank shifted its focus of working from geographical set up to functional set up.

• Segmentation of its customers into four major customer segments, namely, Flagship Corporates, Mid Corporates, Small Enterprises and Retail

6. Launching of Special Campaign for Mobilisation of Low Cost Deposits :

• Launched a Special Campaign for mobilisation of CASA during the period from 11th September, 2006 to 9th December, 2006. More than 2.36 lakh accounts were opened during the campaign period with Rs.505.60 crore of CASA deposit.

7. Other Initiatives :

• Tie up with Reliance General Insurance for providing accidental insurance for deposit account holders at a premium of Rs.6.99 per lakh which is lowest in the banking industry

Future Plans / Initiatives

• To double the Bank's business to reach Rs,2,00,000 crore by 2010.

• Plans to become a technology driven Bank making major strides in providing its customers with excellent services through the use of state-of-the-art technology. In this direction, the Bank plans to extend Core Banking Solution (CBS) network to cover 75% of its business by 31.03.08.

• Starting of Online Share Trading.

• Starting of Utility Bills Payment Systems.

• Initiation of IT Enabled Services, such as, Mobile Top up through ATM, e-ticketing through ATM and Bill payment through ATM.

• Starting of Centralised Back Office Operations.

• Introduction of two new business schemes, namely, UCO Gold Coin Scheme and UCO Small Deposit Scheme.

• Development of Derivative and other Financial products / other ancillary business suiting to Flagship and Mid Corporate customers.

• Proposal to start Corporate Advisory Services by establishing separate cell at Head Office.

• Proposal to extend Retail Sales force teams to 8 new centres at Ghaziabad, Jamnagar, Pondicherry, Durgapur, Bikaner, Gwalior, Erode and Faridabad.

• Recruitment of 400 direct officers and 1000 clerical staff.

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