UCO Bank’s Q4 net zooms by 177%

Bank's EGM held on 12.03.2008

The Extraordinary General Meeting (EGM) of the shareholders of the Bank took place at the Eastern Zonal Cultural Centre Auditorium at Salt Lake City near Kolkata on 12.03.2008. The EGM considered two agenda – one authorizing the Bank to raise upto Rs.625 crore of Tier-I capital through Perpetual Non Cumulative Preference Shares (PNCPS), and the other to elect two Shareholder Directors for the Bank’s Board.

While the shareholders present in the EGM unanimously passed the proposal regarding PNCPS, an election through polling of ballots took place for the second resolution.

Shri Ramniwas Jain, an Industrialist from SME sector in Lucknow and Shri Suresh Chand Gupta, a Chartered Accountant in New Delhi, got elected as Shareholder Directors in the Bank’s Board.

Secretary (Financial Services), Govt. of India, inaugurates second Senior Citizens' Lounge in New Delhi

Shri Arun Ramanathan, IAS, Secretary (Financial Services), Govt. of India, inaugurated on Friday, the 7th March, 2008, a Senior Citizens' Lounge at the newly renovated Retail Branch of the Bank in Parliament Street, New Delhi. This is the second such branch after Salt Lake, Kolkata, where facilities like exclusive sitting arrangements, newspapers and periodicals, e-mails, tea/coffee are provided to Senior Citizens through personalized service of a dedicated officer.

Citizen Branch Opened

On 8th December, 2007, Shri Vinod Rai, IAS, Secretary (Financial Services), Govt. of India inaugurated the first Senior Citizen branch of the Bank at DD Block, Salt Lake and 500th CBS branch at Sector-II, Salt Lake branch. The Senior Citizen branch has been equipped with facilities like tea/coffee machine, water dispenser and also newspapers/periodicals, chase board etc. for taking good care of the senior citizens visiting the branch for banking needs.

Keeping pace with its technology drive, UCO Bank opened its 500th CBS branch at Vidyut Bhavan, Sector-II, Salt Lake on 8th December 2007. It was also inaugurated by Shri Vinod Rai.

Shri Vinod Rai also formally launched the new loan scheme that UCO Bank introduced for senior citizens. Named as ‘Reverse Mortgage Loan scheme’, it provides a stream of cash flow every month to the senior citizens against the mortgage of property.

SHRI B.M. MITTAL has assumed charge as Executive Director with effect from 07.11.2007

Financial Literacy-cum-Credit Counselling Centre of UCO Bank at Balasore (Orissa)

Expression of Interest for Installation of Multipoint Video Conferencing System (MVCS)

Performance Highlights for the Half Year Ended 30th September 2006

30^th October, 2006

Ladies and Gentlemen,
Good afternoon and a very warm welcome to the Press Meet.

I am pleased to inform all of you that the Bank has achieved good performance, in terms of its Financial Results for the half-year ended September, 2006, in particular in the second quarter of the current fiscal, and also taken up several major initiatives in the second quarter. Let me share the business achievements of the Bank for the half-year ended September, 2006 in the first place followed by the major initiatives taken by the Bank during the second quarter and also the Future Plans of the Bank.

Business

As at the end of September, 2006 our Bank has achieved a total business level of Rs. 97,564 crore as against Rs. 80,960 crore as on 30^th September 2005 recording a year-on-year growth of 20.51%.

Total Deposits of the Bank increased from Rs. 49,816 crore to Rs. 56,800 crore registering a growth of 14.02% year-on-year.

The growth rate in Advances is robust at 30.89%. Advances increased from Rs. 31,144 crore as on 30.09.2005 to Rs. 40,764 crore as on 30.09.2006.

The Operating Profit of the Bank for the half year ended September 2006 has recorded a jump of 22.37% to Rs. 454 crore from Rs. 371crore in the corresponding previous period in spite of reduction in profit on sale of investment to the extent of Rs.38 crore. The Operating Profit (net of Treasury Income) during the Half-year ended September, 2006 was higher by 38.01% at Rs.443 crore in comparison to Rs.322 crore during the corresponding half-year of the previous year.

The Operating Profit (Net of Treasury Income) was higher in the second quarter of the current fiscal at Rs.231 crore in comparison to Rs.156 crore in the second quarter of the last year, thereby showing a year-on-year growth of 48.08%.

Net profit of the Bank rose by 13.29% to Rs. 162 crore from Rs. 143 crore during the first half of the last year. In the second quarter of the current fiscal, the Net Profit of the Bank stood at Rs.100 crore in comparison to Rs.98 crore in the corresponding quarter of the previous year.

Total income recorded a year-on-year growth of 22.15% during the half year ended September 2006 in comparison to half year ended September 2005 and grew to Rs. 2746 crore from 2248 crore. The Bank’s total income in the second quarter of the current fiscal was higher by 21.13% at R.1410 crores in comparison to Rs.1164 crores in the corresponding quarter of the last year.

The Bank’s interest income posted a Y-O-Y growth of 23.44% to Rs. 2527 crore during the half-year ended September, 2006 from Rs. 2047 crore for the half-year ended September, 2005. Interest income from advances registered an increase of Rs. 432 crore with a higher growth of 35.64% during the same period.

Interest Income in the second quarter of the current fiscal was higher at Rs.1304 crore as against Rs.1046 crore in the corresponding quarter of the previous year showing a Y-O-Y growth of 24.67%. Income from Advances and Investments both showed better performance in the second quarter of the current fiscal in comparison to second quarter of the corresponding period.

Non Interest Income

Non Interest Income (net of treasury income) increased by Rs. 56 crore, the growth rate being 36.84%. In the second quarter of the current fiscal, Non-Interest Income (net of Treasury Income) showed a higher growth by 37.65% in comparison to corresponding quarter of the last fiscal.

The Gross NPAs and Net NPAs stood at Rs. 1369 crore and Rs. 814 crore as of the end of September 2006 respectively. The Gross NPA Ratio declined to 3.36% as on 30.09.206 as against 4.23% as on 30.09.2005. The Net NPA Ratio has also come down to 2.02% as on 30.09.2006 from 2.62% a year ago.

NPA Recovery was higher at the end of September, 2006 at Rs.204 crore in comparison to Rs.186 crore as at the end of September, 2005. Recovery in written-off accounts has showed a higher performance at Rs.33.80 crore as of September, 2006 in comparison to Rs.15.63 crore as of September, 2005.

The Capital Adequacy Ratio improved to 12.89% compared to 10.42% a year ago and is well above the minimum required level of 9%.

The Business Per Employee of the Bank improved to Rs.3.90 crore as at the end of September 2006 from Rs.3.36 crore as at the end of September, 2005.

The Earning Per Share improved to Rs.4.05 as at the end of September, 2006 from Rs.2.46 as at the end of March, 2006.

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

Technological Initiatives

Core Banking Solution which was launched by the bank during the first quarter of the current financial year 2006-07 at six branches had become operational in 33 more branches taking the total no of CBS branches to 39 . The bank has targeted to roll out CBS facility in a total of 150 branches by 31.03.2007.

Internet banking Soft launched on 18.09.06.

New Tierised Current and Savings account product introduced in Sept-06. The customers maintaining certain average balance in their accounts will be provided with a host of concessional and privileged services.

‘Any where Branch Banking and Multicity Cheque’ facilities made available at select branches.

Performance based Initiatives

A new deposit scheme titled ‘UCO Bank Tax Saver Scheme-2006’ introduced by the bank w.e.f.01.09.06 for the benefit of the Bank’s customers who are assesses of Income Tax.

Retail and Small Enterprise Sales Force teams constituting of bank’s own staff members became operational at 35 centers.

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.

For the current financial year ending March 2007, the Bank has set itself a business target of Rs. 1,11,000 crore consisting of Rs 65,100 crore deposit and advances of Rs. 45,900 crore. The Bank has also identified other thrust areas which include among others mobilization of low cost deposits, increase of Fee based income and reduction of NPAs. By December end the Bank shall be aiming at to cross a landmark of one lakh one thousand crore of business which will usher into new horizons in the new year.

Illegal use of our Bank’s Logo and Name

It has come to our notice that some fraudsters/unscrupulous elements are using Logo, Letter Head etc. of UCO Bank to deceive/defraud the Bank as well as customers. We, therefore, put on notice and caution the general public not to be mislead by such unauthorized use of our Logo and Name of the Bank by fraudsters and act on such fraudulent misrepresentation.

If any person acts on the basis of such false representation, he will be doing so at his own risk and responsibility and in no case bank will be held liable for such fraudulent act of unscrupulous elements.

The Bank also reserves its right to take such appropriate legal action either civil or criminal or both as may be advised, against such fraudsters/unscrupulous elements unauthorisedly using the Bank’s Name and Logo for wrongful gain.

UCO Bank yet again first to launch another innovative (Perpetual Tier-I) bond issue in the country

The Bank has launched its Perpetual Bond issue of Rs.100 crore plus green shoe of Rs.50 crore in the market from 22nd March, 2006 - again first time in India. The issue was slated to close on 30th March, 2006 , but with overwhelming response it was closed on 27th March 2006. The Bond carried an interest of 9.50% p.a. payable semi-annually and has been rated 'AA' by CRISIL and "AA-' by CARE.

UCO Floats maiden hybrid Tier-II Bond.

Uco Bank is the first Bank in the country to hit the market with the new Hybrid instruments to raise capital. The Upper Tier II Bond was of Rs.200 crore plus option to retin over subscription of Rs 100 crore was opened on 10th March,2006 and closed for subscription on 21st March,2006. The Bank has successfully raised the entire 300 crore including the green shoe option. The bond carried an interest of 8.70% p.a. payable semi-annually and was rated 'AA' by CRISIL AND 'AA-' by CARE.

UCO Bank introduces 'Anywhere Branch Banking'

Now customers can operate their account at any of our 102 stipulated branches. Cash withdrawal and balance enquiry also available at 5800 ATMs of State Bank of India and its subsidiaries and at 1800 ATMs under the MITR Consortium."

UCO Bank inaugurates New Central Staff Training College Building at 8GE Block, Sector III, Salt Lake, Kolkata 700 091 on 5.2.2006.

UCO Bank launches "UCO No-frills Savings Bank Account"

A new Deposit scheme titled "UCO No-frills Savings Bank Account" has been launched by UCO Bank with a view to ensuring availment of banking services by a large cross-section of population, who could not uptil now avail of the same on account of the criteria of minimum initial deposit for opening of account as well as maintaining of minimum balance failing which charges are levied. No-frills Savings Bank Account can be opened by them with a minimum initial deposit of Rs.5/- and the Account may continue to be in operation even if the balance in the account comes down to Zero. The minimum initial deposit for customers willing to avail of cheque book facility will be Rs.250/-. The scheme is being introduced for all of our branches at Metro, Urban, Semi-urban and Rural centres without any differentiation. Facilities like collection of local/outstation cheques, remittance of fund through DD/MT/TT as available to normal Savings Bank Accounts are also available to this type of account at similar charges.

Electronic Fund Transfer (EFT) Facility
UCO Bank now provides the customers with Electronic Fund transfer facility upto Rs.2 crore at 13 important financial Centers viz., Ahmedabad, Bangalore, Bhubaneswar, Chandigarh, Chennai, Guwahati, Hyderabad, Jaipur, Kolkata, Mumbai, Nagpur, New Delhi and Thiruvananthapuram.

Under this facility you have the following advantages:

We do not charge anything extra for this service. A nominal additional charge of Rs.5/- only is to be paid by the customer to Reserve Bank of India and we collect it for onward payment to RBI.

Structured Financial Messaging System (SFMS)

With a view to upgrading the country's domestic payment systems through adoption of modern technology which requires a reliable communication and messaging backbone as a prerequisite, Reserve Bank of India/IDRBT has been in the process of introducing SFMS under the INFINET Network in the banking and financial sector. Getting attracted to the various features and utilities of the application, our Bank has been associated with IDRBT from the very beginning of its development.

In order to be a pioneer in implementing SFMS in the industry our Bank has so far taken various measures to build up the infrastructural set up for the application, such as, formation of Internal Group for SFMS, identification of branches and administrative sites in the Pilot Phase, allotment of Inilian Financial System Code (IFSC) for all branches and offices, acquisition of the requisite Hardware, becoming the Registration Authority under IDRBT CA and that too the first in the nationalised sector, procurement of Smart Card, Readers and Digital Certificates and development of API for integrating SFMS with ISBS Branch Mechanisation software etc.

Based on our above preparation, IDRBT has selected our Bank as one of the Pilot Banks for launching of the revised module of the application in improved architecture. Accordingly, the SFMS Application has been installed at Bank's Payment Gateway at Mumbai on 12^th November 2002 followed by installation of SFMS Offiine Branch Servers at Treasury, Nariman Point, Churchgate Reclamation, Head Office- DIT and Head Office -MIS. Two more branches at Kolkata (IBB and IFB) are ready for installation.

Tele-banking

The Bank has planned to provide tele-banking facility to its valued clients in some select branches to start with, which will be gradually extended to more number of branches. Besides facilitating balance enquiry, customers will be able to requisition Statement of Account by fax as well as place requests for issuance of cheque books. Enquiries on latest Interest Rates on deposits as also last five transactions in the account can also be made. Instructions to stop payment too can be given by the customer through this facility of tele-banking.