Integrated Annual Report

2022-23 01

Integrated Annual Report

2022-23
Committed to
Sustainability
driven by digital prowess

www.unionbankofindia.co.in
 About this
Report

Integrated Annual Report

2022-23
The Integrated Annual Report covers the period Financial Year 2022-
2023 unless otherwise noted. The Union Bank of India Integrated
Annual Report FY2023 was approved by the Board of Directors on
20th June 2023 and signed on its behalf by the Chairman.

Union Bank of India’s FY2023 Integrated Annual Report aims to

provide transparency into how we activate our purpose: to improve
Committed to
Sustainability, the lives of our customers and the well¬being of our communities.
driven by digital prowess

The report for FY2023 is our first Integrated Annual Report, and
we have produced it in reference to the International Integrated
Reporting Council (IIRC),London guidelines. In addition, we have
www.unionbankofindia.co.in attempted to comply with Global Reporting Initiative Standards’
core option, which includes general disclosures as well as topic-
specific disclosures relevant to Union Bank of India.

Alignment with the IR Framework:

The Union Bank of India has strived to maintain fidelity to the Guiding
Principles outlined in the Integrated Reporting (IR) Framework 2021.
These principles inform the content of the Integrated Report and
determine how information is presented:
1. Strategic Focus and Future Orientation: The report provides a
clear insight into the bank’s strategy, how it relates to its ability
to create value in the short, medium, and long term, and how it
impacts the various forms of capital.
2. Connectivity of Information: The report presents a comprehensive
picture of the interrelated factors that affect the bank’s ability to
create value over time. It does this by showcasing links between
the bank’s various activities, its capitals, and its overall value
creation.
3. Stakeholder Relationships: The Integrated Report offers
insights into the quality of the bank’s relationships with its key
stakeholders. It articulates how the bank understands, responds
to, and takes into account their legitimate needs and interests.
4. Materiality: The report discloses information about matters that
significantly affect the bank’s ability to create value over the short,
medium, and long term. It identifies material matters based on
their potential to substantially influence value creation.
Integrated Annual Report
2022-23 03

5. Conciseness: The bank ensures the overall usefulness of the Bank of India and our stakeholders. Used in this context, these terms are
Integrated Report by presenting it in a logically structured, well- distinct from and should not be confused with the terms “material” and
articulated, and clear language. It includes effective navigation “materiality” as defined by or construed in accordance with the securities
devices to enhance user experience. laws or as used in the context of financial statements and reporting.
6. Reliability and Completeness: The report is both reliable and
This report is for general informational purposes only and does not
complete. It includes all relevant and material information,
constitute an offer or sale of any securities issued by Union Bank of India.
hence offering a comprehensive picture of the bank’s
All information in this report is current as of the date of publication. We
performance and prospects.
undertake no obligation to update the information in this report or otherwise
7. Consistency and Comparability: The information presented in notify you if any views, opinions, or facts stated in this report change
the report is consistent over time and comparable with other or subsequently become inaccurate. Apart from Statutory Disclosures,
organizations in the same industry or sector, enhancing its this report also contains voluntary disclosures on important ESG topics.
credibility and usefulness. This report should be read in conjunction with our FY2022 ESG Report,
(particularly the “Forward-Looking Statements” and “Risk Factors” sections),
Union Bank of India’s Integrated Report broadly embodies all all of which can be found on our Investor Relations pages of our website.
aspects of the IR Framework’s Guiding Principles. It captures
the interdependencies of various factors that influence The Integrated Report for FY2023 has been prepared entirely in-house and,
value creation, portrays the bank’s strategic orientation, with the exception of specific non-financial and financial disclosures, has
and acknowledges stakeholder relationships. Through its not undergone external validation by a third-party agency. The insights,
concise yet comprehensive presentation, it ensures reliability figures, and assessments contained in this report reflect our understanding
and comparability, thereby adhering to the principles and of our operations, impacts, and our pathway to value creation. All
guidelines of the Integrated Reporting Framework. non-financial disclosures like energy consumption and water usage, as
highlighted in Principle 6 of BRSR and in the Chapter on Natural Capital,
The goals discussed in this report are aspirational. While we have been evaluated by Bank appointed Energy Auditors. Additionally, all
are committed to achieving them, we cannot guarantee or financial disclosures are audited by our Statutory Auditors, as certified in
promise that these goals will be met. Statistics and metrics the financial statements within the report. Union Bank of India maintains
in these disclosures include estimates and may be based on sole accountability for the accuracy, completeness, and timeliness of
assumptions. Further, the Independent Assessment / evaluation the information presented, understanding that the Integrated Report was
/ assurance of the Non-financial disclosures made in Natural produced without external verification. From FY2024, Union Bank of India
Capital forming part of Integrated Report 2022-23 / Principle 6 of plans to engage a reputable external agency for the validation of meeting
the Business Responsibility and Sustainability Report has been Integrated Reporting requirements. This aligns with our commitment to
carried out by M/s. AAR Consulting & Services, Class A Energy strengthening our stakeholder relationships by enhancing the reliability of
Auditors empanelled with Maharashtra Energy Development our reports.
Agency. This report uses certain terms, including “material”
topics, to reflect the issues of greatest importance to Union www.unionbankofindia.co.in

Forward-looking statement
This report contains certain forward-looking statements with Union Bank of India’s management and are subject to significant
respect to the Group. Union Bank of India cautions readers that no risks and uncertainties. Actual outcomes may differ materially
forward-looking statement is a guarantee of future performance from those expressed in the forward-looking statements. Factors
and that actual results or other financial condition or performance that could impact Union Bank of India’s future financial condition
measures could differ materially from those contained in and performance are identified in the Union Bank of India Annual
the forward-looking statements. These forward-looking Report FY2022-23, which is available on www.unionbankofindia.
statements can be identified by the fact that they do not relate co.in. Subject to our obligations under the applicable laws and
only to historical or current facts. Forward-looking statements regulations of any relevant jurisdiction. In relation to disclosure
sometimes use words such as ‘may’, ‘will’, ‘seek’, ‘continue’, and ongoing information, we undertake no obligation to update
‘aim’, ‘anticipate’, ‘target’, ‘projected’, ‘expect’, ‘estimate’, publicly or revise any forward-looking statements, whether as a
‘intend’, ‘plan’, ‘goal’, ‘believe’, ‘achieve’ or other words of similar result of new information, future events or otherwise.
meaning. By their nature, forward-looking statements involve
risk and uncertainty because they relate to future events and
circumstances. The forward-looking statements speak only as Find out more at:
at the date on which they are made. Forward-looking statements
may be affected by: changes in legislation; the development of
www.unionbankofindia.co.in
standards and interpretations including evolving practices in
ESG reporting with regard to the interpretation and application
of accounting, industry and regulatory standards; the Group’s
ability along with government and other stakeholders to manage
and mitigate the impacts of climate change effectively; and
environmental, social and geopolitical risks. A number of these
influences and factors are beyond the Group’s control. These Scan the QR Code to download
statements are based on the current beliefs and expectations of Integrated Annual Report 2022-23
 Integrated Annual Report
04 2022-23

Committed to
Sustainability
driven by digital prowess

At Union Bank of India, we aspire to be a trailblazer

in driving the growth of a digital and aspirational
India, while championing the country’s journey
to net Zero emissions. We aim to positively
contribute to India’s progress and overall societal
development through our focus on sustainability,
responsible banking, and cutting-edge digital
technologies.
AT UNION BANK OF INDIA, WE BELIEVE IN A
BRIGHTER, GREENER, AND MORE CONNECTED
Union Bank of India is committed to playing a pivotal role
in the growth of a digital, aspirational, and eco-conscious
INDIA, WHERE EVERYONE CAN PROSPER AND
India. By integrating sustainability and digital prowess into ENJOY THE BENEFITS OF INNOVATION AND
our core values, we are not only creating long-term value FINANCIAL ACCESS.
for its stakeholders, but also contributing to the nation’s
journey towards becoming a net Zero country.
Digital technologies are revolutionising how we live and
India has taken the global lead in addressing climate work, and the Union Bank of India is fully participating in
change and championing sustainable development, this transformation. The bank’s investments in cutting-
showcasing its dedication to building a greener and more edge technologies such as blockchain, AI, and machine
equitable future. Union Bank of India stands firm in support learning enable us to provide seamless and secure
of this vision, focusing on responsible banking practices, customer experiences, optimise our processes, and
financial inclusion, and green banking. We acknowledge adapt to the rapidly evolving digital landscape. With
the importance of reaching out to the unbanked and digital banking initiatives such as internet banking, mobile
underbanked segments of the population, enabling them banking, and digital payment solutions, we are making
to access financial services and empowering them to banking services more convenient, accessible, and secure
contribute to the nation’s economic growth. for our customers.
Integrated Annual Report
2022-23 05

The growth of digital India and the nation’s aspirations

for a sustainable future go hand in hand. Union Bank of
India’s commitment to sustainability and digital prowess
will play a meaningful role in propelling India towards
its goal of becoming a global leader in clean energy and
a hub for innovation in the digital space. By fostering
financial inclusion and green banking practices, we also
aim to enable the nation’s march toward a prosperous,
sustainable, and digitally empowered future.
 Integrated Annual Report
06 2022-23

What’s
Inside
Navigating this Report
We have incorporated a series of icons throughout the report, serving as visual cues
to interlink pertinent topics and demonstrate our value creation process. Each icon
and corresponding materiality issue number provides cross-referencing within the
report, fostering a deeper understanding of the context and reasoning for the subjects
under discussion. Utilise these guiding elements to seamlessly navigate through the
report and grasp the full narrative of our performance.

» UNSDGs: » Strategy Blueprint: » Material Issues:

11 Social Capital - Customer Privacy

1. Enhancing our clients’
financial health 12 Social Capital - Data Security

2. Facilitating our clients’ 13 Social Capital - Clients'

transition towards a Sustainability
sustainable future
14 Social Capital - Product Quality &
Safety
3. Broadening our customer
outreach 15 Social Capital - Customer Welfare

19 Human Capital - Training and Skill

4. Achieving operational Development
excellence
20 Human Capital - Employee Health
& Safety
5. Nurturing a dynamic and
» Business Model Components: engaged team 23 Business Model & Innovation -
Significance of Product Design
and Innovation
1 Key Partners 6. Enhancing Digital
Capability 29 Leadership & Governance -
2 Key Activities Business Ethics and Anti -
Corruption Measures
3 Key Resources
7. Fostering Sustainability
33 Leadership & Governance - Risk
4 Value Proposition Management

5 Customer Relationships 8. Proactive Regulatory 34 Leadership & Governance -

Compliance Grievance Redressal of
Stakeholders
6 Channels
36 Leadership & Governance -
7 Customer Segments Reputation, Communication and
Awareness
8 Key Inputs
43 Economy - Systematic Risk
9 Revenue Streams Management
Integrated Annual Report
2022-23 07

Contents
Strategy, Model & Capitals 08 -135 Social & Relationship Capital – Building 104
Sustainable Relationships
Corporate Information 08
Energising Human Capital – Towards a Digital, 120
Organization Structure – w.e.f. 05.06.2023 09
Sustainable Future
Board of Directors 10
GRI Index Table 130
Chief Vigilance Officer / Chief General 16
Managers – as on 31.03.2023
General Managers – as on 31.03.2023 17
Notice 136 - 151
Chairman’s Message 20
Notice of 21 Annual General Meeting
st
136
Managing Director’s Message 22
FY2022-23 Highlights – Natural, Social & 24
Human Capitals
Statutory Reports 152 - 234
FY2022-23 Highlights – Manufactured & 25
Directors’ Report 152
Financial Capital
Management Discussion & Analysis 163
Corporate and Economic Profile 26
Deciphering Market Dynamics – Responding 28 Corporate Governance Report 191
responsibly for Sustainability Success
Strategy Blueprint – Committed to Environmental 32
Stewardship, Powered by Digital Innovation Financial Statements 235 - 340
Materiality Assessment & Stakeholder 36 Independent Auditors’ Report (Standalone) 235
Engagement Standalone Balance Sheet 244
Our Dynamic Business Model 42 Standalone Profit & Loss Account 245
FY2023: Creating Integrated Value 44 Standalone Schedules 1 to 18 246
Our Approach to Sustainability 46 Standalone Cash Flow Statement 299
Ethical Excellence – Our Approach to 48 Independent Auditors’ Report (Consolidated) 301
Responsible Banking
Consolidated Balance Sheet 308
Responsible Products – A Year of Growth 50
Consolidated Profit & Loss Account 309
and Inclusion
Consolidated Schedules 1 to 18 310
Awards & Accolades – Respect FY2023 58
Responsible Manufactured Capital – Advancing 62 Consolidated Cash Flow Statement 339
Financial Solutions to Create Value
Strengthening Financial Capital – A Bedrock of 70
Sustainability and Digital Advancement Disclosures under Basel III Capital 341
Regulations
Energised Intellectual Capital – Committed to 82
Sustainability, Driven by Digital Prowess Business Responsibility and 342
Sustainability Report
Nurturing Natural Capital – Union Bank’s 90
Commitment to Environmental Stewardship Green Initiative – Appeal to Shareholders 343

Nurturing Natural Capital – Operational 98

Sustainability at Union Bank of India
 Integrated Annual Report
08 2022-23

Corporate
Information
Head Office & Central Office Statutory Central Auditors
Union Bank Bhavan, M/s R G N Price & Co.
239, Vidhan Bhavan Marg, Chartered Accountants
Nariman Point, Mumbai - 400 021.
M/s Sarda & Pareek LLP
Global Location Number (GLN) Chartered Accountants
8904368511166
M/s C R Sagdeo & Co.
Chartered Accountants
Investor Services Division
Union Bank Bhavan, 12th Floor, M/s P V A R & Associates
239, Vidhan Bhavan Marg, Chartered Accountants
Nariman Point, Mumbai - 400 021.
M/s Gopal Sharma & Co.
Registrar & Share Transfer Agent Chartered Accountants

KFin Technologies Limited

M/s N B S & Co.
Unit: Union Bank of India
Chartered Accountants
Selenium Tower B, Plot 31 & 32
Financial District,
Nanakramguda
Hyderabad – 500032

Debenture Trustees
IDBI Trusteeship Services Limited
Asian Building, Ground Floor,
17, R. Kamani Marg, Ballard Estate,
Mumbai - 400 001

Company Secretary
S. K. Dash

Secretarial Auditor
Ragini Chokshi & Co
Company Secretaries
Integrated Annual Report
2022-23 09

Organization
Structure
w.e.f. 05.06.2023

Strategy, Model & Capitals

Board of Directors

Chairman Chief Compliance Officer

Chief Vigilance Officer Chief Risk Officer

Managing Director & CEO
Chief of Staff (MD & CEO’s Office) Lead Economist

ED – RAV, Agriculture, MSME, Operations, ED –Treasury and IBD, Audit and Inspection, ED–Large Corporate, Mid Corporate,
Strategy, Digitization, CR & MIS, ACOE, IT, SAMV, Human Resource, Deposit Finance and Accounts Joint Ventures and
Recon, Gold Loan Mobilization, T&FM, CISO, SSD & Corporate Subsidiaries, CCM, National Processing
Cell, Board sect, FI

Notice
Communication Wealth Management

Retail Assets Vertical Treasury & International Banking Large Corporate

» RLPs, Home & Mortgage Credit » Domestic & FX Business » Structured Finance & LC
» Vehicle Loans, Other Loans » International Banking • Business Development
» Education Loans » Forex Operations, Back Offices • Loan syndication
» Retail Policy & Products » Treasury services & Client Development • Monitoring
» Treasury Research and Sales
Agriculture Business Department • Co-Lending and Pool Buyout
Audit and Inspection » Financial Institution
MSME
» MSME Loan Point Operations Stressed Asset Management Vertical • Business Development
» MSME Govt Schemes & Reporting » Recovery • Advisory Services
» Union MSME First Branches » Difficult Asset Resolution Team (DART) » Transaction Banking
» Cluster Finance » Legal Services » Corporate Relationship Cell
» Litigation Management

Statutory Reports
Operations Mid Corporate
» Branch Initiatives & Network Strategy Human Resource
» Customer Care(CC) & Grievances » Administration Finance & Accounts Joint Ventures &
» Learning & Development Subsidiaries
Strategy » Capital Raising
» Official Language
» Business Process Re-engineering » Investor Relations
» Strategic Planning & Review Deposit Mobilization » EASE
» Banking & Macro Research » Deposit Mobilization
» Retail Relationship cell-Lead Credit Compliance & Monitoring
Digitization Management System » TEV Cell
» Digital Journeys, MB, IB, Credit Card, » Government Business and Relationship
Merchant Acquisition, National Portal, National Processing Cell
Partnership with RBI, Innovation Hub/ CISO » Centralized Account Opening
DFS/LAS » Centralized KYC & Video KYC
SSD & Corporate Communications

Financial Statements
» Digital Transformation project & Board Secretariat
» Support Services
Implementation of Digital Business
platform, E-Ecosystem partnerships » Premises & Property, Expenditure &
Financial Inclusion
incl. Fintech’s, Digital Interactions & Budget
marketing, CRM Implementation, Loyalty » Corporate Communications
Rewards, Digitization of TPP. Account » Security Services
Aggregator, OCEN, ONDC, New tech
Wealth Management
Initiatives, DBUs
» Third Party Products Marketing
» Digital Document Execution » IPO Management
Central Repository and MIS » Portfolio Management Services
» Merchant Banking Operations,
Analytics Centre of Excellence
» Capital Market & Depository Services
Information Technology
Transaction Monitoring and Fraud
» Core Applications
Management
» Non-Core Applications
» EFRMS Solutions
» Infrastructure, Network, Cloud
» Early Warning System
Reconciliation Department » Fraud Management
» Centralized Reconciliation » Anti Money Laundering/CFT
» Centralized Dashboard for all delivery » Off-Site Transaction Monitoring System
Channels
Gold Loan
 Integrated Annual Report
10 2022-23

Board of
Directors

He holds an Engineering Degree from the College of

Engineering, Anna University, Chennai and PG Diploma in
Management from the Indian Institute of Management,
Calcutta.

Shri Srinivasan Varadarajan

Non-Executive Chairman and Part-Time Non-Official Director

Shri Srinivasan Varadarajan assumed office as Part-Time

Non-Official Director as well as Non-Executive Chairman of
the Bank on November 7, 2022. He has to his credit, more
than three decades of experience in Banking and Financial
Ms. A. Manimekhalai
services. He last served as the Deputy Managing Director
Managing Director & CEO
of Axis Bank before setting up his own advisory practice in
2019. Ms. A. Manimekhalai is a seasoned Banker with experience
of more than 3 decades. She started her career in erstwhile
As a financial advisor, he has worked with a leading Vijaya Bank as an Officer in 1988 and rose successively
international consulting firm, a sovereign wealth fund, a as Branch Head, Regional Head and Functional Head
large corporate group, a NBFC group and a private sector of various Departments at Corporate Office. She was
Bank. Shri Srinivasan Varadarajan was the Managing instrumental in devising & implementation of strategic
Director and Head of Markets with J.P. Morgan, India. He policies covering core areas like strategic planning, setting
was also the CEO, J P Morgan Chase Bank in India. organizational goals, growth strategies, action plans,
compliance, internal control, etc.
He served on various RBI Committees including the
Technical Advisory Committee, Committee for Repos and Prior to joining Union Bank of India, Ms. A Manimekhalai
Committee for STRIPS. He was also the Chairman of Fixed was an Executive Director at Canara Bank, wherein she
Income Money Market and Derivatives Association of oversaw strategic planning, credit & related matters,
India (FIMMDA) and Primary Dealers Association of India inspection, marketing and financial inclusion, State
(PDAI). He was also the member of the Indo UK Financial Level Lead Bank responsibilities and the functioning
Partnership Forum. of Regional Rural Banks. She played a pivotal role in
Integrated Annual Report
2022-23 11

effecting successful amalgamation of Canara Bank and He is a member of the Board of Directors of National
Syndicate Bank. She has extensive experience as Director Payments Corporation of India (NPCI), SUD Life Insurance
on the Board of five other companies namely Canbank Company Ltd and Swift India Domestic Pvt Ltd; and
Factors Ltd., Canbank Computer Services Ltd., Canara member of IBA Steering Committee on PSB Reforms.
HSBC Oriental Bank of Commerce Life Insurance Co. Ltd., Earlier, he was on the board of SBI Global Factors Ltd,

Strategy, Model & Capitals

General Insurance Corporation of India, India Infrastructure FIMMDA (Fixed Income Money Market and Derivatives
Finance Company Ltd. and Trustee, Canara Robeco Asset Association of India) and UBI Services Ltd. He was also
Management Co. a founding member of India Forex Committee (IFXC).

A member of various committees and working groups Shri Nitesh Ranjan is a post-graduate in Economics. He
constituted by Government of India, she has actively has completed Leadership Development Programme of
contributed towards policymaking, including drawing the IIM Bangalore, curated by the Banks Board Bureau (now
future road map of RRBs, Financial Inclusion, Agriculture FSIB), IBA and Egon Zehnder International Pvt. Ltd. He
Value-chain Finance, Banking Correspondent issues and also dedicated 100 days for imparting ‘Spoken English
creating synergies for seamless credit flow to Health Care Programme’ to underprivileged youth, under Teach-

Notice
and Education. India initiative.

Ms. A. Manimekhalai holds Master of Business

Administration (Marketing) from Bangalore University,
and a Diploma in Human Resource Management from
Narsee Monjee Institute of Management Studies (NMIMS),
Mumbai. A beneficiary of various executive development
programs at leading institutes of country, she is also a
Certified Associate of Indian Institute of Bankers (CAIIB).

Statutory Reports
Shri Rajneesh Karnatak
Executive Director (till 28.04.2023)

Shri Rajneesh Karnatak was a Chief General Manager of

Punjab National Bank posted at Corporate Office. He is a
Post Graduate in Commerce (M.Com) and is a Certified
Associate from Indian Institute of Bankers (CAIIB).

Financial Statements
Shri Nitesh Ranjan He rich banking experience of over 27 years and carries
Executive Director varied branch and administrative office experience. As
General Manager in erstwhile Oriental Bank of Commerce,
Shri Nitesh Ranjan is Executive Director of Union Bank of he has headed Large Corporate Credit Branches and
India since 2021. He is leading digital transformation in the verticals such as Credit Monitoring, Digital Banking and
Bank towards a superior customer experience, enhanced Mid Corporate Credit. Post the amalgamation of Oriental
employee engagement and stronger balance sheet. While Bank of Commerce into Punjab National Bank, he headed
driving business outcome, he is focused on continuous Credit Monitoring Division and also Corporate Credit
strengthening of risk and compliance standards in the Bank. Division in Punjab National Bank.

Shri Ranjan has been with the Bank since 2008 where he He attended various training and Leadership Development
occupied several important positions namely, Head of Programs from IIM-Kozhikode and JNIDB Hyderabad and
Treasury Operations & Business Strategy, Chief Investor has also taken part in Advance Management Programme
Relations Officer, Chief Economist, and Regional Head. at IMI (International Management Institute) Delhi. He was
 Integrated Annual Report
12 2022-23

Board of
Directors

a part of 1st batch of Senior Officers selected by FSIB memberships, he has been an ex-member of the Indian
(erstwhile BBB) for Leadership Development Program Banking Association Standing Committees on Retail
of IIM Bangalore & Egon Zehnder. He carries with him Banking and MSME.
credit appraisal skills including Project Funding & Working
Capital funding along with Risk Management with specific Throughout his banking career, he has worked at several
reference/special emphasis on Credit Risk. locations and with different branches including specialised
NRI Branch, Centralised Retail Hubs and administrative
Shri Karnatak served as Nominee Director on the behalf of offices including Central Offices. He donned various roles
Punjab National Bank in the Board of PNB Housing Finance including Branch Head, Zonal Head and has headed the
Ltd. And India SME Asset Reconstruction Company verticals of Retail Credit, MSME and Bancassurance.
Limited. He also served as Board Trustee on behalf of
Punjab National Bank on IAMCL (IIFCL Asset Management
Co. Ltd).

He is presently Non-Executive Chairman of UBI Services

Ltd. He also serves as Non Independent Non Executive
Director on the Board of UBI (UK) Limited , the Bank’s
subsidiary based out of London. And member of the
Governing Board of Indian Institute of Bank Management
(IIBM) Guwahati.

Shri Ramasubramanian S.
Executive Director

Shri Ramasubramanian S. assumed office as Executive

Director of Union Bank of India w.e.f. from November 21,
2022. Prior to joining Union Bank of India, he held the
position of Chief General Manager at Canara Bank. He
has over 25 years of rich experience in various facets of
Banking including Corporate Credit, MSME, Retail Credit,
International Credit and FOREX. He is a Science graduate
Shri Nidhu Saxena and a Certified Associate of Indian Institute of Bankers
Executive Director (CAIIB).

Shri Nidhu Saxena assumed the charge as Executive Throughout his banking career he has led effectively under
Director of Union Bank of India on 01.02.2022. various capacities; both in operations and administrative
areas. He has executed leadership roles across various
Shri Nidhu Saxena, aged 54 years is a Commerce graduate segments namely; Prime Corporate Credit Wing, Large
and holds a Masters in Business Administration along Corporate, Mid Corporate Branches including a stint at
with CAIIB qualification. He started his banking career with Hong Kong Branch of Canara Bank. The India Banks’
Bank of Baroda and also worked at UCO Bank before his Association (IBA) having recognized his expertise and
elevation as Executive Director in Union Bank of India. invaluable insights into Credit; secured him membership in
their Standing Committee for Corporate Credit in the past.
He holds directorship in Union Asset Management Similarly, he also participated in the Kamath Committee on
Company Private Limited and Union Bank of India Services COVID related Loan Restructuring.
Limited. He is also a member of the NIBM Academic
council and has been empanelled as a Subject Expert
on the UPSC Advisor panel. Among the professional
Integrated Annual Report
2022-23 13

Strategy, Model & Capitals

Shri Sameer Shukla Shri Arun Kumar Singh
Government Nominee Director RBI Nominee Director

Shri Sameer Shukla is an officer of Indian Administrative Shri Arun Kumar Singh is currently the head of Department

Notice
Service (IAS) belonging to 2005 batch of Karnataka Cadre. of Information Technology, Reserve Bank of India,
Central Office Mumbai, spearheading technological
At present, he is working as Joint Secretary in Ministry of development in the Bank, particularly, in the areas of
Finance, Department of Financial Services, Government of Currency Management, Government Banking, Payment
India. System, Cyber Security, Data Centre upgradation, Internal
Applications, IT Infrastrcture, etc.
He has been appointed as Government Nominee Director
on the Board of Union Bank of India w.e.f. 08.11.2021. He He has had a wide and rich experience of working in RBI
has done Bachelor’s in Electronics Engineering. in various capacities in the field of Government Banking,
Financial Inclusion, Non-Banking and Banking Supervision,
Experience in Government of India Banking Regulation, Monetary Policy, Information

Statutory Reports
Earlier, he has worked in the Ministry of Information and Technology, etc. He was actively engaged in regulation
Broadcasting and Ministry of Steel, Government of India. and supervision of non-banking financial companies for
long period. He has acted as Principal Inspecting Officer
Experience in Government of Karnataka / Senior Supervisory Manager for various commercial
» Deputy Commissioner and District Magistrate in banks and has actively participated in first Asset Quality
Districts of Bidar, Dharwad and Ballari. Review (AQR) of banks as well as Risk-based Supervision
(RBS) related processes and development. He was also
» Chief Executive Officer Zila Panchayat, Raichur in Rural involved in framing banking policies in various capacities.
Development and Panchayati Raj Department. He has also served as nominee director on Regional Rural
» Managing Director of Mysore Minerals Limited in Bank and assisted in regulatory and development issues

Financial Statements
Industries Department. under monetary policy formulation process. Just before
» Mission Director in Rural Development. his current assignment, he was Regional Director for
Rajasthan for three years [2019-22] and carried out his
» Commissioner in Skill Development, Entrepreneurship & Central Banking responsibilities in the areas of currency
Livelihood Department. management, financial inclusion, financial literacy, banking
/ non-banking development, Government banking, etc. in
He has also worked in HCL Infosystems, private sector, as the state of Rajasthan.
network engineer before joining Government Service as
an IAS. Shri Arun Kumar Singh has done his Graduation in Economics
and MBA in Finance and HR. He is also a Certified Associate
of the India Institute of Banking (CAIIB).
 Integrated Annual Report
14 2022-23

Board of
Directors

Currently, he is the Chairman of the Classic International

Public School and also Classic Little Buds, Classic PU &
Degree College, Dharwad.

Shri Uppar besides giving donations to orphanage centres,

educational institutions and religious organisations also
helps students having rural and poor background.

Shri Uppar has been bestowed with many National level

awards for his service to educational and social sector.

Shri Suraj Srivastava

Part-Time Non-Official Director

Shri Suraj Srivastava is a Fellow Member of The Institute of

Chartered Accountants of India (ICAI) and also a Bachelor
of Laws (LL.B.).

Shri Srivastava has a rich professional experience of over

16 years as a practicing Chartered Accountant in taxation
and statutory audits, concurrent audits and branch audits
of various Public Sector Banks, Public Sector Undertakings
and other Companies.
Dr. Jayadev Madugula
Shri Srivastava has also completed Information Systems
Shareholder Director
Audit (ISA) Assessment test from ICAI.
Dr. Jayadev Madugula has been elected as Shareholder
Director of the Bank w.e.f. 28.06.2021for a period of
three years. He is Post Graduate in Commerce and Ph.D.
in Business Management. Presently, he is Professor of
Finance & Accounting at IIM, Bangalore.

Dr. Jayadev has rich experience of teaching not only in

premier institutions in India but also as a Visiting Professor
in various universities abroad. He has published various
books and research articles in national and international
journals and has won various awards and accolades in
the field of finance and banking. He was the Shareholder
Director of the Bank from June 28, 2018, to June 27, 2021.
Shri Laxman S Uppar
Part-Time Non-Official Director

Shri Laxman S Uppar assumed the charge as the Director

of Union Bank of India on March 21, 2022.

Shri Uppar has done Bachelor’s in Engineering. He is

a noted Educationist, Philanthropist and Founder of
Karnataka Classic Education Private Ltd. Dharwad .He has
also started Spardha Spoorti Publishers & Printers Pvt. Ltd.
Dharwad in 2012, which publishes books and magazines
for various competitive examinations.
Integrated Annual Report
2022-23 15

Strategy, Model & Capitals

Ms. Priti Jay Rao
Shareholder Director

Smt. Priti Jay Rao is M.Sc (Mathematics) from IIT She is also actively engaged in CSR activities with being

Notice
Bombay, specializing in Computer Science. She advocates chairperson and founder of the Aatmaja Foundation,
amplifying business value by leveraging technology and with a mission to provide financial assistance, coaching,
is passionate about Diversity, Equity, and Inclusion, mainly counseling, and other requisite support to deserving bright
focused on gender. young girls from disadvantaged backgrounds to enable
them to grow into empowered, confident professionals
She has 24 Years of diverse experience in building with solid values. Currently, the foundation supports 300
and delivering a range of IT services for customers adolescent girls pursuing professional education.
across all five continents. During her stint in Infosys as
a management council member and Pune head, she She has been a member of the Board of Directors of Public
played a pivotal role in building Technology Infrastructure and Private companies related to various aspects of
Services (IMS) business and delivering a range of software technology services and products for the last several years.

Statutory Reports
services managing large-scale recruitment, training, and
assimilating a large employee base.

She is a dynamic entrepreneur who has built an

organization that fills the void of quality childcare in India,
having experienced challenges for women who want to
balance home and career.

Financial Statements
 Integrated Annual Report
16 2022-23

Chief Vigilance Officer &

Chief General Managers as on 31.03.2023
Chief Vigilance Officer

Shri Vishnu Kumar Gupta

Chief General Managers

Shri S.K. Mohapatra Shri V. B. Reddy

Shri K. Bhaskara Rao Shri Abhijit Basak

Shri M V Balasubramanyam Shri Shailesh Kumar Singh

Shri A K Vinod Shri Rajiv Mishra

Shri Lal Singh Shri Yogendra Singh

Shri C. M. Minocha Shri Prafulla Kumar Samal

Shri Pravin Sharma Shri S. C. Teli

Integrated Annual Report
2022-23 17

General
Managers
as on 31.03.2023

Strategy, Model & Capitals

Dr. K. L. Raju Shri Pramod Kumar Gupta

Shri K.S.D.S.V. Prasad Shri A. R. Raghavendra

Notice
Shri S.V. Biju Smt. S. Annapurna

Shri Tata Venkat Venugopal Shri M. H. Padmanabham

Statutory Reports
Shri R. Pradhan Smt. Beena Vaheed

Shri Anil Kuril Shri R. Ratheesh

Shri Pramod Kumar Soni Shri Amarendra Kumar Financial Statements

Shri Arun Kumar Shri M. Venkateswara Swamy

Shri Sudarshana Bhat Shri Binod Kumar Pattanaik

 Integrated Annual Report
18 2022-23

General
Managers
as on 31.03.2023

Shri Gyana Ranjan Sarangi Shri Kabir Bhattacharya

Shri Ram Kumar Jaglan Shri Sanjay Narayan

Shri S. K. Dash Shri G.K. Sudhakar

Shri R.L. Pattanayak Shri Navneet Kumar

Shri Naveen Jain Shri R. Viswesvaran

Shri M. Babu Ravindra Shri C. V. Manjunatha

Shri Bhalchandra Raman Rao Akolkar Shri Sarvesh Ranjan

Shri Sumit Srivastava Shri B. Janaki Ram

Shri Alok Kumar Shri Vikash Kumar

Integrated Annual Report
2022-23 19

Shri Vipan Singh

Strategy, Model & Capitals

Shri Roop Lal Meena Shri Rajiv Kumar Jha

Shri Manoj Kumar Shri Jithender Maniram

Notice
Shri Gokulananda Das Shri Dhirendra Jain

Shri Rajiv Sharma Shri Jaganatha Shetty

Statutory Reports
Shri Arun Kumar Shri Gugulotu Shankarlal

Shri Vithal Banashankari Shri S. Sakthivel

Shri Vipin Kumar Shukla Shri Girija Bhusan Mishra Financial Statements

Shri Girish Chandra Joshi Shri Manoj Kumar Nanda

Shri Omprakash Shriniwas Karwa Shri P Krishnan

 Integrated Annual Report
20 2022-23

Chairman’s
Message

“
In our digital journey, we’ve increased customer satisfaction,
optimized resources, and delivered 350+ digital banking
services to over 21 million plus customers, while continuously
embracing innovative technologies for the future.
Srinivasan Varadarajan
Chairman

Dear Shareholders,

It gives me great pleasure to present

our inaugural Integrated Annual
Report, a significant stride forward in
our commitment to transparency and
sustainability. This report details the
Bank’s financial data as well as our
social, environmental and governance
initiatives. It, thereby, provides a holistic
picture of our contribution to the
financial services landscape, to our
society and environment. Our move
towards Integrated Reporting reflects our
determination to embed ESG practices
into our core business strategies,
ensuring we create lasting value not just
for our shareholders, but also for our
customers, employees, communities,
and environment. Your continued trust end of the financial year. Going forward, the growth is expected to slightly moderate
inspires our pursuit of responsible in the current financial year FY23-24 owing to a combination of factors, including
banking and inclusive growth. slowing external demand, the development of El Nino conditions and volatile global
financial conditions. Despite moderation in growth, India is expected to remain the
Fiscal 2023 marked a continued fastest growing major economy in the world.
improvement in economic activity in
India, despite significant challenges In the past few years, the Indian banking industry has seen significant changes, such
in the global environment. The overall as the explosion of UPI led digital payments, significant expansion of public payment
economic growth remains robust at 7.2 infrastructure, budding fintech eco system, and technology-led shifts in consumer
percent for the fiscal year 2022-23, and behaviour. After the consolidation that took place amongst PSU banks over the last
it was underpinned by strong investment five years, we are now witnessing the largest housing finance company merge with a
activity reinforced by the Government’s bank within its group, creating a banking behemoth. As consolidation gathers more
capex push and private consumption. momentum, it is not unconceivable to see the top 5 banks in India have a majority
However, inflation remained high, market share in the Indian banking system in the coming years. Such creation of
averaging around 6.7 percent in FY22- large, strong and efficient banks would make the banking system more robust and
23, and started moderating towards the also bring scale benefits to all stakeholders. Customers are likely to benefit from
Integrated Annual Report
2022-23 21

Strategy, Model & Capitals

such consolidation through better products and seamless service enabled by higher We have supported initiatives relating
technology investments. The larger banks would also be able to cater to the needs to renewable energy, environmental
of the fast growing Indian economy in a more efficient manner. Your bank is one of conservation, education, healthcare, and
the consolidating banks having absorbed Andhra Bank and Corporation Bank into community development. Maintaining
its fold. It is well positioned to be one of the beneficiaries of consolidation in the the highest standards of corporate
Indian banking system and would make all necessary investments to capitalise on governance and transparency is of
opportunities that come its way. paramount importance to us. We
continue to strengthen our governance
During fiscal 2023, Union Bank of India has delivered a commendable financial

Notice
frameworks, ensuring compliance
performance. We have recorded significant growth in key financial indicators, with applicable laws, regulations, and
reflecting our ability to adapt and make prudent business decisions. The strong ethical standards. Our engagement with
growth in our profits, a healthy capital adequacy ratio, and a substantial improvement stakeholders has been instrumental
in asset quality, coupled with our focus on digitization and diligent risk management in shaping our strategic decisions and
practices, have ensured an attractive return to our stakeholders. The Bank is also fostering long-term relationships built
simultaneously building ‘future ready’ capabilities at a rapid pace. The creation of on trust and mutual benefit.
specialized verticals for gold loans, education loans, current & salary accounts,
cash management, transaction & fraud monitoring etc., allows for a dedicated focus I would like to express my sincere
on specific products/services, thereby providing enhanced customer value and gratitude to our dedicated 75,500+
better customer experience. The Bank has strengthened its processes in credit and employees whose relentless efforts and
transaction monitoring, fraud detection, and data mining to ensure corrective and commitment have been the driving force

Statutory Reports
remedial action is taken in a timely manner. behind the Bank’s success. I extend my
appreciation to our valued customers
At Union Bank of India, customer delight remains at the heart of everything we do. for their continued trust and support. I
With a customer base of 216+ million, we continue to place utmost importance would also like to thank our esteemed
on understanding and meeting the evolving needs of our customers. Through our shareholders for their unwavering
extensive branch network of 8,580 branches & 10,835 ATMs, digital platforms and confidence and belief in our Bank’s
other customer touchpoints, we have strived to deliver superior services, tailored vision.
financial solutions, and an exceptional banking experience.
In conclusion, I am proud of our Bank’s
Technology continues to redefine how we operate, and we are committed to
achievements during the fiscal year
embracing innovation and digitalization to stay ahead of the curve. We are proud of
2022-23. We have demonstrated

Financial Statements
the progress we have made in our digital journey, which has resulted in increased
growth, resilience, innovation, and
customer satisfaction and stronger engagement. This focus on digitization has also
social and environmental awareness
allowed us to streamline internal processes, reduce costs, and optimize resource
in the changing operating business
allocation, creating value for our shareholders. We now have 21 million plus customers
environment. Looking ahead, we remain
registered on our Vyom platform and provide access to 350+ banking services
committed to enhancing customer
digitally, covering lending, deposits, payments, and much more. Simultaneously, the
value, embracing technological
Bank has rolled out 20+ Digital Journeys covering both assets and liability product
advancements, and contributing to the
lines. We have implemented a CRM system that enables customer 360 degree and a
socioeconomic progress of our nation.
digital contact centre for efficient and effective customer service. These initiatives will
facilitate personalised and proactive service, enhancing the customer satisfaction,
With best wishes,
loyalty and retention. As we look towards the future, we are confident of successfully
navigating the ever-changing dynamics of the banking sector.
Srinivasan Varadarajan
Chairman
Furthermore, we firmly believe that as a responsible corporate citizen, it is our duty
to contribute to sustainable development and address environmental and social
challenges. Our Bank has integrated environmental, social, and governance (ESG)
practices into our business strategies, aligning with global sustainability goals.
 Integrated Annual Report
22 2022-23

Managing Director’s
Message

“
Our resilience, adaptability, and
commitment to our core values have
been instrumental in shaping Union Bank
of India into a stronger and more robust
entity, mirroring the overall upswing in
the banking sector.
A. Manimekhalai
Managing Director & CEO

Dear Esteemed Shareholders,

I am delighted to present to you an overview of Bank’s accomplishments and established a stable franchise of
financial performance for the fiscal year 2022-23. In the face of significant deposits and a robust advances book,
global challenges, the fiscal year has proven to be a season of opportunities for where the RAM portfolio forms 56% of
both the Indian economy and the banking sector at large. The Bank’s resilience, Bank’s total domestic advances.
adaptability, and commitment to core values have been instrumental in shaping
Union Bank of India into a stronger and more robust entity, mirroring the overall The progress in digital transformation
upswing in the banking sector. has been significant. This has allowed
us to enrich customer experience,
We are pleased to announce attaining a global business figure of ` 19.28 trillion, boost operational efficiency, and
which includes ` 11.18 trillion in deposits and ` 8.10 trillion in advances. We generate fresh revenue streams. The
have also achieved highest ever operating profit and net profit of ` 25,467 innovation extends across several
crore and ` 8,433 crore, respectively, in the financial year 2022-2023. The asset segments, launching unique products
quality remained robust, with both gross NPA and net NPA ratios decreasing to and services, such as, Vyom mobile
7.53% and 1.70%, respectively. The Provision Coverage Ratio (PCR) improved app—a one-stop solution for all
to 90.34% as of March 31, 2023. With a capital adequacy ratio of 16.04%, we customer banking needs; the Straight
stand well above the regulatory requirement of 11.5%. With retail deposits, Through Processing (STP) for Shishu,
including CASA and retail term deposits forming 74% of total deposits, we have Kishore, and Tarun; a comprehensive
Integrated Annual Report
2022-23 23

Strategy, Model & Capitals

digital solution for Mudra MSME
As we embark on a new fiscal year, we remain confident that we
loans; Pre-Approved Personal Loans
(PAPL) for retail borrowers; and have the right strategy, capabilities, and culture to surmount any
the end-to-end digitisation of KCC challenges and seize any opportunities in the post-pandemic world.
for the agriculture sector. We were
among the first PSB to venture into
the account aggregator ecosystem Centers nationwide. We fully appreciate the significance of environmental
and metaverse platform and are sustainability and corporate responsibility. We are determined to incorporate

Notice
now live within RBI’s Central Bank Environmental, Social, and Governance (ESG) factors into our strategies,
Digital Currency (CBDC) framework. supporting initiatives that promote inclusive growth, renewable energy, and
In an effort to enhance Bank’s digital sustainable development.
penetration, we have activated
7 Digital Banking Units (DBUs) across Understanding the rapid evolution of the banking industry, we’re investing in our
6 districts in the country. We’ve further people through skill-based training and leadership development. We’ve set up 9
strengthened our reach and offerings Union Learning Academies (ULA) across the country with the aim of nurturing
through collaborations with fintech a specialised workforce across functions. Our unique initiatives, ‘Empower
companies, e-commerce platforms, HER’ and ‘Empower HIM’, are geared towards providing support, counsel and
and other ecosystem participants. guidance to our workforce.

Statutory Reports
We’ve laid a strong foundation to As we embark on a new fiscal year, we remain confident that we have the
meet the escalating demands of our right strategy, capabilities, and culture to surmount any challenges and
business. We’ve operationalised credit seize any opportunities in the post-pandemic world. We remain resolute in
centralisation and verticalisation, our commitment to creating long-term value for all our stakeholders and
creating new verticals in the areas progressing towards our vision of becoming India’s most preferred bank.
of gold loans, education loans, cash
management, and TEV cell, among I deeply thank our Board of Directors for their invaluable guidance and
others. For efficient monitoring, unwavering support. I acknowledge the trust and confidence our shareholders,
we’ve established a transaction and customers, regulators, and other stakeholders have shown in us. I would like

Financial Statements
fraud monitoring cell. To expedite to commend our employees for their dedication, hard work, and resilience.
the resolution and recovery of NPA They have shown incredible fortitude in the face of adversity and have been
accounts, we have operationalised instrumental in helping us achieve our goals.
ARBs & SAM branches nationwide.
With heartfelt best wishes,
As the fifth-largest PSB in the country,
we recognise our pivotal role in A. Manimekhalai
fostering financial inclusion and credit Managing Director & CEO
deepening. With 59% of our branches
located in rural and semi-urban
centres and over 17,600 active BCs,
we are dedicated to serving the rural
populace. We continue to impart self-
employment training to unemployed
youth, including rural youth, through
our 30 RSETIs and Financial Literacy
 Integrated Annual Report
24 2022-23

FY2022-23 Highlights
Natural, Social & Human
Capitals
`
23.38 cr.
Approved under Corporate Social Responsibility (CSR)
`
1,35,430 cr.
Loans disbursed to Agricultural Sector as on 31.03.2023, up by
initiatives 6.35% YoY

75,594
Workforce Strength in FY2022-23
`
1,25,022 cr.
Total MSME Advances as on 31.03.2023, up by 13.12% YoY

28.82%
Of our workforce are women
`
1,05,954 cr.
Loans to women beneficiaries as on 31.03.2023, up by 18.90% YOY

`
215 cr.
Union Green Miles sanctioned in FY2022-23
> 66,000 cr.
Hours of training for employees by Union Learning Academies

`
10,370 cr.
Credit facility extended to Renewable Energy Sector
`
16.42 cr.
CSR spend by Union Bank Social Foundation Trust (UBSFT) in
in FY2022-23 FY2022-23 on 38 projects under Education, Healthcare, Community
Development, Skill Development and environmental conservation

`
3,233 cr.
Loans sanctioned under Union Nari Shakti scheme
`
3,02,006 cr.
Advances made to the priority sectors as on 31.03.2023, up
as on 31.03.2023 by 10.91% after excluding the PSLC sales and including the
investments in RIDF/SIDBI/MUDRA/NHB
Integrated Annual Report
2022-23 25

FY2022-23 Highlights
Manufactured & Financial
Capitals

Strategy, Model & Capitals

Global Business Total Global Deposits Global Gross Advances

`
19,27,621cr. `11,17,716 cr. `8,09,905 cr.
as on 31.03.2023, up by 10.23% YOY as on 31.03.2023, up by 8.26% YOY as on 31.03.2023, up by 13.05% YOY

Notice
CASA Deposits Net Interest Income Operating Profit

`
3,94,055 cr.
as on 31.03.2023, up by 10.23% YOY
`
32,765 cr.
as on 31.03.2023, up by 17.92% YOY
`
25,467 cr.
as on 31.03.2023, up by 16.43% YOY

Statutory Reports
Domestic NIM Yield on Advances Provision Coverage Ratio

3.07%
as on 31.03.2023, up by 13 BPS YOY
7.68%
as on 31.03.2023, up by 54 BPS YOY
90.34%
as on 31.03.2023, up by 673 BPS YOY

Cost to Income Ratio Net NPA Ratio Customers

Financial Statements
46.27%
as on 31.03.2023, up by 53 BPS YOY
1.70%
as on 31.03.2023, up by 198 BPS YOY
21.67 cr.
as on 31.03.2023

Domestic Branches ATMs Business Correspondent Points

8,577
as on 31.03.2023
10,835
as on 31.03.2023
17,000+
as on 31.03.2023
 Integrated Annual Report
26 2022-23

Corporate and Economic

Profile

About the Bank

We are the first large public sector bank in the country
to have implemented 100% core banking solution. The
Bank has received several awards and recognition for
its prowess in technology, digital banking, financial
inclusion, MSME and development of human resources.

Today, Union Bank of India is India’s one of leading public sector

banks listed on the Indian stock exchanges, with the Government
of India holding 83.49% in the Bank’s total share capital. Founded
in 1919, we have had a long legacy of serving our stakeholders.

Employees Our Genesis

Union Bank of India was established on 11th November 1919 with its

75,594 headquarters in Mumbai. It was promoted by Seth Sitaram Poddar.

The Head Office building of the Bank in Mumbai was inaugurated
by Mahatma Gandhi, the Father of the Nation in the year 1921. His
prescient words predicted the growth of the Bank that has taken
place in the decades that followed.

Global Deposits

`
11,17,716 cr.
as on 31.03.2023

`
Global Gross Advances

8,09,905 cr.
as on 31.03.2023
“We should have the ability to carry on a big bank, to
manage efficiently crores of rupees in the course of our
national activities. Though we have not many banks
amongst us, it does not follow that we are not capable of
efficiently managing crores and tens of crores of rupees. –
Mahatma Gandhi (1921)
Integrated Annual Report
2022-23 27

Services & Solutions

Our Bank offers a wide variety of banking products and services across four main segments.

Strategy, Model & Capitals

We provide an array of account options including savings
and current accounts, term and recurring deposits, as well as
demat and online trading accounts. Our retail loan offerings
encompass home loans, vehicle loans, education loans,
personal loans, and loans against property. We also cater
to the needs of pensioners and micro, small, and medium
Treasury Operations
enterprises (MSMEs) with tailored products and loans.

Our services extend to the investment and insurance

domains as well, where we offer mutual funds, and various

Notice
insurance products such as life, non-life, health, and general
insurance. We provide tax saving deposits, government
saving schemes, and pension products. Our Bank also
facilitates tax collection services and departmentalized
Retail Banking Operations ministries accounts. Agricultural, SSI, and tertiary sectors
can benefit from our short-term, long-term, and other tailored
credit facilities. For added convenience and safety, we
provide safe deposit locker and cheque collection services.

In the corporate sector, we offer an extensive range of

Statutory Reports
services including, but not limited to, trade finance,
working capital, lines of credit, project financing, and
Corporate and Wholesale Banking, and channel finance. We also assist with debt structuring/
restructuring, loan syndication, structured finance, mergers
and acquisition advisory, and private equity services. Our
corporate customers can also avail themselves of cash
management, Export Credit Guarantee Corporation (ECGC)
cover, foreign exchange services, and derivatives. We provide
comprehensive support for international trade through our
export and import finance services.

Financial Statements
Other Banking Operations
Our services are not limited to domestic customers, as we
offer comprehensive NRI banking services, along with a suite
of treasury and remittance services. Our digital capabilities
include app banking, internet banking, self-service banking,
ATM services, and SMS banking. Further expanding our
service portfolio, we offer point of sale terminals and
immediate payment services. We also provide an assortment
of card options including combo, debit, credit, gift, prepaid,
and payroll cards.
 Integrated Annual Report
28 2022-23

Deciphering Market Dynamics

Responding
responsibly for
Sustainability
Success
Banking Industry Structure
The Indian banking sector is broadly categorized into Union Bank of India remains steady amidst
scheduled and non-scheduled banks. The scheduled banks global financial changes, contributing to India’s
are further divided into commercial banks and cooperative
economic recovery. Our stable credit growth and
banks. Commercial banks comprise public sector banks
(PSBs), private sector banks, foreign banks, and Small improved asset quality attest to our adaptability
Finance Banks. Cooperative banks include urban and rural in an ever-evolving banking industry.
cooperatives.

Union Bank of India (UBI) is a major Public Sector Bank in in the policy repo rate, your Banking industry managed
India. It was nationalized in 1969 by the Indian government to maintain robust deposit growth while effectively
and has played a significant role in expanding your Banking transmitting the changes to retail and bulk deposit rates.
sector in rural and semi-urban areas. Union Bank of India These trends suggest a healthy banking sector, capable
is one of the largest government-owned banks in India. of supporting India’s economic recovery and growth and
Following a merger in 2020, Andhra Bank and Corporation poised for further progress in the upcoming fiscal years.
Bank were amalgamated into Union Bank of India, further
augmenting its position in the public sector banking space. RBI’s Monetary Policy Shifts in 2022-23: During FY
UBI provides a comprehensive suite of banking products 2022-23, the Monetary Policy Committee (MPC) adopted
and services, ranging from regular savings and checking an aggressive approach towards tackling inflation and
accounts to more complex offerings like loans, insurance, supporting growth. It increased the policy repo rate
and investment services. Its presence is not just limited to by 250 basis points from May 2022 to February 2023.
urban areas but extends to many rural areas, thus playing a This strategy aimed to align inflation with the set target,
crucial role in supporting rural development and promoting providing a stable economic environment for growth.
financial inclusion.
Money Market Responses and Repo Rate Transmissions:
In the latter half of the fiscal year, money market rates for
Banking Industry Dynamics various maturities followed the rise in the policy repo rate,
FY 2022-23 marked a period of significant transformation reflecting the prevailing surplus liquidity. The impact of this
and resilience for the Indian banking industry. The sector development was clear in the weighted average call money
demonstrated commendable adaptability in the face of the rate (WACR), which came into alignment with the repo rate.
Monetary Policy Committee’s policy shifts and challenging Furthermore, the pace of policy repo rate transmission to
global financial conditions. The year saw your Banking banks’ lending and deposit rates amplified, thanks to the
industry weather these changes with robust credit growth external benchmark regime for loans, the easing surplus
across all major sectors, moderate non-performing loans, liquidity in your Banking system, and the persistence of
and improved asset quality. Additionally, despite the increase credit growth over deposit growth.
Integrated Annual Report
2022-23 29

Strategy, Model & Capitals

Notice
Statutory Reports
Resilience in Hostile Global Financial Environment: In an increased target for agricultural credit. The industrial
the face of a challenging global financial environment in sector also saw a recovery in credit growth, thanks to
the first half of FY 2022-23, the Indian banking system contributions from both large industries and the MSME
demonstrated resilience. It maintained adequate capital segment. Retail loans continued to be a significant driver
buffers and moderate levels of non-performing loans. of credit growth for the year.
Banks managed to improve their profitability through
higher net interest income as the impact of rising interest Deposits Growth and Asset Quality Improvement:
rates on investment portfolios remained limited. Scheduled Commercial Banks (SCBs) saw their aggregate

Financial Statements
deposits grow faster in FY 2022-23, spurred by a
Acceleration of Bank Credit Growth: In response to considerable increase in interest rates. However, this
improving economic activity, bank credit growth showed deposit growth lagged behind credit growth for the year.
an acceleration, especially in the non-food sector. In terms of asset quality, SCBs marked a substantial
Scheduled Commercial banks (SCBs) registered a year- improvement with a decline in the overall non-performing
on-year increase in non-food credit growth of 16.7% as of assets (NPA) ratio.
September 2022, up from 9.7% at the end of March 2022.
This robust credit growth persisted into the second half of Banks’ Lending and Deposit Rates Adjustment: In
the fiscal year, driven by resurgent demand in the economy. response to the increases in the policy repo rate from May
2022, banks’ deposit and lending rates also increased
Sector-Wise Credit Expansion: In FY 2022-23, an during the first half of 2022-23. The efforts to raise retail
improvement in bank credit was noticeable across all deposits to fund robust credit growth led to a notable
major sectors. The agriculture sector experienced credit transmission to retail deposit rates, especially in the year’s
growth, mainly due to favourable monsoon conditions and second half.
 Integrated Annual Report
30 2022-23

Deciphering Market Dynamics

Responding responsibly for Sustainability Success

Shifts in the Weighted Average Domestic Term Deposit bulk deposits, but the focus shifted towards raising fresh
Rate: The Weighted Average Domestic Term Deposit retail deposit rates in the latter half of the year. This
Rate (WADTDR) on fresh deposits (including retail and shift resulted in the overall growth of term deposit rates,
bulk) showed an increase of 222 bps from May 2022 to highlighting the increasing demand for durable funds from
February 2023. Initially, banks concentrated on mobilising depositors.

Threats, Risks and Concerns

The Indian banking sector, despite its remarkable 3. Regulatory Compliance:
growth trajectory and integral role in driving the The regulatory landscape is becoming
nation’s economy, is confronted with a unique blend of increasingly stringent, requiring banks to comply
threats, risks, and concerns, accentuated in a digitally with various rules, ranging from Anti-Money
dominant and sustainability-conscious world. Laundering (AML) laws to Know Your Customer
(KYC) protocols. Non-compliance can lead to
1. Digital Disruption and Cybersecurity Risks:
significant financial penalties and reputational
While providing significant growth opportunities, damage.
the digital revolution is a double-edged sword.
There is an increased susceptibility to cyber 4. Asset Quality and Credit Risk:
threats, such as data breaches, phishing, and Indian banks face a persisting issue of Non-
ransomware attacks. The explosion of digital Performing Assets (NPAs), mainly due to high
banking has exponentially increased the attack corporate and agricultural sector debt. Moreover,
surface for malefactors, causing a potential threat the economic consequences of the COVID-19
to the financial stability of banks. pandemic have further exacerbated the credit risk
situation.
2. Operational Risks:
With the increased implementation of advanced 5. Sustainability Concerns:
technology, there’s an associated rise in In the face of global climate change, banks are under
operational risk due to system outages, IT failures, mounting pressure from stakeholders to transition
or breakdowns in internal procedures, people, to more sustainable operations and ensure their loan
and systems. portfolios are aligned with climate-friendly projects.

We proactively mitigate risks by advancing Strategies for Success in a Digital World

cybersecurity measures, improving digital with Sustainability as a Priority
capabilities, and streamlining compliance By recognizing the dynamic landscape of your Banking
sector and implementing these strategies, Union Bank
processes. Our improved credit appraisal systems
of India can fortify its position, optimize performance,
safeguard asset quality, while our focus on and succeed in the digital and sustainability-conscious
sustainability is evident in our incorporation of world. Nonetheless, this requires a delicate balance of
ESG criteria into our operations. technological adoption, regulatory understanding, prudent
risk management, and a commitment to sustainability
backed by a culture of innovation and adaptability. Some
key strategies in play would be:
Integrated Annual Report
2022-23 31

Key Areas of Union Bank of India's GRI Relevance Read More Strategy Icon
Concern Response
Digital Disruption Strengthen cybersecurity GRI 418: Customer Chapter on

Strategy, Model & Capitals

and Cybersecurity measures by implementing Privacy and GRI Intellectual Capital,
Risks advanced technologies 419: Socioeconomic Page 82
such as data encryption, Compliance
multi-factor authentication,
and AI-based threat
detection. Regularly conduct
cybersecurity audits and
employee training to stay
updated with the latest cyber
threats and promote safe
practices.

Notice
Operational Risks Enhance digital capabilities GRI 419: Chapter on
to compete with fintech Socioeconomic Intellectual Capital,
and big tech firms. Develop Compliance Page 82
user-friendly apps, adopt AI,
machine learning, and data
analytics for personalized
services, streamline
operations, and employ
blockchain technology for
secure transactions.

Statutory Reports
Regulatory Establish a robust compliance GRI 419: Chapter on
Compliance programme to manage and Socioeconomic Risk Framework,
mitigate regulatory risks. Compliance Page 91
Adopt RegTech solutions
to automate compliance
processes and keep pace with
evolving regulations.
Asset Quality and Improve credit appraisal GRI 201: Economic Chapter on
Credit Risk systems and follow stringent Performance Manufactured

Financial Statements
due diligence for lending. Capital, Page 62
Invest in advanced analytics
to identify potential NPAs
and take corrective actions
promptly.
Sustainability Incorporate ESG criteria GRI 201: Economic Chapters on Social
Concerns into lending decisions and Performance, & Relationship
operational strategies. Offer GRI 203: Indirect Capital, Page 104;
green banking products like Economic Impacts, Natural Capital,
green loans, green mortgages, and GRI 300: Page 90; Corporate
and green bonds to incentivize Environmental Governance Report,
sustainable investments. Page 191
 Integrated Annual Report
32 2022-23

Strategy Blueprint

Committed to
Environmental
Stewardship, Powered
by Digital Innovation
Strategic Priorities
In light of the evolving banking landscape, Union Bank of
Union Bank of India leverages digital innovation
India remains steadfast in its commitment to pioneering
digital excellence while catalysing India’s march towards for sustainable growth. We’re driving towards
sustainable growth. The sweeping trend of mass net-zero emissions by 2050 while empowering
digitalization and technology-driven disruption continues to customers with digitized, informed financial
reshape our strategic priorities, ensuring we remain agile in
decisions.
the face of these transitions.

As champions of sustainability, we recognize the urgency

of mitigating climate change impacts. This awareness
is at the core of our quest to decarbonize the economy
and achieve net-zero emissions by 2050, a journey that
demands significant behavioural changes and large-scale
deployment of non-carbon technologies across sectors.

Underpinning our strategic agenda is our mission,

“Committed to Sustainability, Driven by Digital Prowess.”
Our ambition is to harness technological innovation
and digital prowess to create an age of opportunity for
everyone. Our focus is to ensure that our customers have
access to a range of products, advice, and solutions that
empower them to make informed financial decisions and
fulfil their life and business aspirations.
Integrated Annual Report
2022-23 33

Our strategy is guided by eight key priorities:

Strategic Priority Description Symbol

Strategy, Model & Capitals

1. Enhancing our clients' As a trusted partner, we strive to improve our clients' financial
financial health wellbeing by delivering personalized advice, driven by our digital
proficiency and data insights.

2. Facilitating our clients' Echoing our commitment to sustainability, we endeavour to assist

transition towards a our clients in navigating their path to a greener future, using
sustainable future sustainable finance and innovative solutions.

Notice
3. Broadening our customer With a focus on the power of scale, our goal is to accelerate
outreach sustainable growth by expanding our customer base across our
digital and physical channels.

4. Achieving operational Leveraging our digital capabilities, we aspire to provide an

excellence outstanding customer experience through simplified processes
and a value-focused transaction model.

Statutory Reports
5. Nurturing a dynamic and Our team, guided by our commitment to sustainability and digital
engaged team empowerment, remains a strategic priority. We foster an inclusive
and diverse culture that promotes talent development and growth
opportunities for all.

6. Enhancing Digital Central to our strategy is our emphasis on utilizing data and
Capability technology as primary drivers. Our advanced data analytics and
secure technology infrastructure enable us to create superior
solutions that address our customers' needs.

Financial Statements
7. Fostering Sustainability We are dedicated to embodying sustainability within our
operations and propagating it amongst stakeholders. Through
minimizing our environmental impact and promoting sustainable
practices externally, we aim to contribute to a resilient,
sustainable ecosystem.

8. Proactive Regulatory Upholding our commitment to serve with integrity, we prioritize

Compliance proactively adhering to regulatory norms and fostering a culture
of compliance. Through our robust compliance framework, we
ensure alignment with industry best practices and regulations,
reinforcing the trust of our clients and stakeholders.
 Integrated Annual Report
34 2022-23

Strategy Blueprint
Committed to Environmental Stewardship, Powered by Digital Innovation

To track our progress, we have identified a set of Key prioritization, and performance-based remuneration. Below
Performance Indicators (KPIs), which monitor both is a tabular representation that connects our strategic
financial and non-financial aspects. These strategic KPIs, priorities with the respective United Nations Sustainable
aligned with our commitment to sustainability and digital Development Goals (UNSDGs); Global Reporting Initiative
prowess, guide our decision-making processes, from (GRI) Standards, and Sustainability Accounting Standards
planning and budgeting to resource allocation, investment Board (SASB) Standards:

Strategic Priority UNSDGs GRI Standards SASB Standards

1. Union Bank of India’s GRI 203 (Indirect FN-CB-270a.1 (Financial

Strategic Priorities Economic Impacts), Inclusion & Capacity
GRI 404 (Training and Building), FN-CB-270a.2
Education) (Customer Privacy &
Data Security)

2. Facilitating our clients' GRI 201 (Economic FN-CB-410a.1 (Climate

transition towards a Performance), GRI 305 Risk Management),
sustainable future (Emissions) FN-CB-410a.2 (Climate
Change Business
Interruption Incidents)

3. Broadening our customer GRI 203 (Indirect FN-CB-270a.3

outreach Economic Impacts), (Customer Privacy &
GRI 417 (Marketing and Data Security), FN-
Labeling) CB-550a.1 (Access to
Banking Services)

4. Achieving operational GRI 302 (Energy), GRI FN-CB-000.B (Systemic

excellence 305 (Emissions), GRI Risk Management),
416 (Customer Health FN-CB-510a.1 (Data
and Safety) Security)

5. Nurturing a dynamic and GRI 401 (Employment), FN-CB-330a.1 (Labor

engaged team GRI 404 (Training and Practices), FN-CB-
Education), GRI 405 330a.2 (Employee
(Diversity and Equal Diversity)
Opportunity)
Integrated Annual Report
2022-23 35

Strategic Priority UNSDGs GRI Standards SASB Standards

6. Enhancing Digital GRI 418 (Customer FN-CB-230a.1

Capability Privacy), GRI 306 (Systemic Risk

Strategy, Model & Capitals

(Effluents and Waste) Management), FN-
CB-550a.2 (Data
Security), FN-CB-510a.1
(Customer Privacy &
Data Security)

7. Fostering Sustainability GRI 301 (Materials), GRI FN-CB-410a.1 (Climate

302 (Energy), GRI 305 Change Business
(Emissions) Interruption Incidents),
FN-CB-410a.3 (Climate

Notice
Risk Management)

8. Proactive Regulatory GRI 307 (Environmental FN-CB-510a.2

Compliance: Compliance), GRI 419 (Management of the
(Societal Compliance) Legal & Regulatory
Environment), FN-CB-
510a.3 (Critical Incident
Risk Management)

Statutory Reports
Financial Statements
 Integrated Annual Report
36 2022-23

Materiality Assessment &

Stakeholder
Engagement

Materiality Survey ESG Factors material to Union Bank and our Extrernal Stakeholders:
In FY2023, Union Bank of India
embarked on an extensive
Materiality Analysis Survey to guide
the strategic priorities outlined in
12
this annual report. This analysis 33
20 36 29
provided a comprehensive internal 14 13 15 11
19
and external perspective on the
23 43
bank’s material issues, spanning 28 31 35
21 24 34
the breadth of our economic,
Increasing Importance to Stakeholders

22
32 25
environmental, and social impact. By 38
undertaking this process, we were 27 42
41
able to identify and underscore the 18
40 10
topics of utmost relevance to our 39
17
diverse group of stakeholders and 26
30
to the organization’s sustainable 37
3
growth. The outcomes of this
exercise underpin our commitment
to balancing our business objectives
with the needs and expectations
of our stakeholders, and to driving 7 9 8
16
responsible, inclusive growth.
4

6
1 2
5

Low Medium High

Increasing Importance to Business

The Bank conducted its first formal materiality assessment survey on external
and internal stakeholders, using a third-party consultant. We engaged with
internal and external stakeholders, including several Union Bank of India leaders
and subject matter experts from across the company. We reached out to
several external stakeholders, representing our customers and employees, ESG
investors, Government, media, NGOs, and financial peers.
Integrated Annual Report
2022-23 37

For the purposes of this Integrated Annual Report, the Bank has identified the following topics as being the most
significant to our internal and external stakeholders materiality assessment:

Issue # Highly Material Issues

Strategy, Model & Capitals

11 Social Capital - Customer Privacy
12 Social Capital - Data Security
13 Social Capital - Clients' Sustainability
14 Social Capital - Product Quality & Safety
15 Social Capital - Customer Welfare
19 Human Capital - Training and Skill Development
20 Human Capital - Employee Health & Safety
23 Business Model & Innovation - Significance of Product Design and Innovation

Notice
29 Leadership & Governance - Business Ethics and Anti-Corruption Measures
33 Leadership & Governance - Risk Management
High
34 Leadership & Governance - Grievance Redressal of Stakeholders
Medium
36 Leadership & Governance - Reputation, Communication and Awareness
Low
43 Economy - Systematic Risk Management

Issues Scored by Internal and External Stakeholders Through a Survey Average Ratings (from 100)
Issue Materiality Issue Issue Increasing Increasing
Number Number Importance to Importance to

Statutory Reports
Business Stakeholders
1 Environment - Climate Change Mitigation & Adoption 1 55 66
2 Environment - Air Pollution Control & Toxic Emission 2 57 65
Management
3 Environment - Energy Management & Renewable Energy 3 60 69
Usage
4 Environment - Water Management 4 56 66
5 Environment - Effluent/Waste Water Management 5 57 65

Financial Statements
6 Environment - Waste Management 6 55 66
7 Environment - Biodiversity Management 7 51 67
8 Environment - Environment Compliance 8 66 67
9 Environment - Natural Resources Conservation (soil, air and 9 56 67
water)
10 Social Capital - Human Rights 10 69 70
11 Social Capital - Customer Privacy 11 76 73
12 Social Capital - Data Security 12 78 74
13 Social Capital - Clients' Sustainability 13 71 73
14 Social Capital - Product Quality & Safety 14 69 73
15 Social Capital - Customer Welfare 15 73 73
16 Social Capital - Charitable Giving 16 60 67
 Integrated Annual Report
38 2022-23

Materiality Assessment &

Stakeholder Engagement

Issues ranked by internal and External Stakeholders through a survey Average Ratings (from 100)

Issue Materiality Issue Issue Increasing Increasing

Number Number Importance to Importance to
Business Stakeholders

17 Social Capital - Social Development & Community 17 65 70

Involvement
18 Human Capital - Labour Practice & Employment 18 67 71
19 Human Capital - Training and Skill Development 19 69 73
20 Human Capital - Employee Health & Safety 20 67 74
21 Human Capital - Importance of Staff Succession Planning 21 66 72
22 Human Capital - Employee Engagement, Diversity & Inclusion 22 63 72
23 Business Model & Innovation - Significance of Product Design 23 70 73
and Innovation
24 Business Model & Innovation - Need for Business Model 24 68 72
Resilience
25 Business Model & Innovation - Access to Capital and 25 71 72
Customers
26 Business Model & Innovation - Role of Supply Chain 26 56 70
Management
27 Business Model & Innovation - Efficiency in Material Sourcing 27 54 71
28 Business Model & Innovation - Long-Term Asset Management 28 62 72
29 Leadership & Governance - Business Ethics and Anti- 29 74 73
Corruption Measures
30 Leadership & Governance - Promoting Renewable Energy 30 57 70
Generation
31 Leadership & Governance - Competitive Behaviour 31 65 72
32 Leadership & Governance - Management of the Legal & 32 66 72
Regulatory Environment
33 Leadership & Governance - Risk Management 33 74 74
34 Leadership & Governance - Grievance Redressal of 34 73 72
Stakeholders
35 Leadership & Governance - Responsible Investment 35 67 72
36 Leadership & Governance - Reputation, Communication and 36 73 73
Awareness
37 Economy - Commodity Price Volatility 37 55 69
38 Economy - Economic/Financial Crises 38 67 71
39 Economy - Impact on Local Communities 39 66 70
40 Economy - Responsible Supply Chain 40 61 70
41 Economy - Employment Trends/Diversification 41 67 71
42 Economy - Tax Governance 42 69 71
43 Economy - Systematic Risk Management 43 74 73
Integrated Annual Report
2022-23 39

Scatter Diagramme

Increasing Importance to Stakeholders Increasing Importance to Business

1
43 2

Strategy, Model & Capitals

42 3
41 4

40 5

39 6

38 7

37 8

36 9

Notice
35 10

34 11

33 12

32 13

31 14

Statutory Reports
30 15

29 16

28 17

27 18

26 19
25 20

Financial Statements
24 21
23 22

Our materiality assessment also included a comparison of internal and external scoring, the results
of which are presented through a Scatter Diagramme. This visual representation vividly displays a
remarkable alignment between the perceptions of internal and external stakeholders, with each data
point indicating a respective material issue. A very marginal deviation between the two assessments
reinforces the consensus on the importance of these material issues. This harmonious correlation
underscores our comprehensive understanding of stakeholder expectations and affirms the
alignment of our strategic priorities with those expectations.
 Integrated Annual Report
40 2022-23

Materiality Assessment &

Stakeholder Engagement

Mapping to Important Issues to Stakeholders

Issue # High Material Relevance and Measures GRI SASB UNSDG Strategic
Issue Priority

11 Social Capital Ensuring customer privacy is crucial for Union Bank GRI 418: SASB FN-CB-
- Customer of India to maintain customer trust and comply with Customer 220a.1
Privacy data protection regulations. Your Bank implements Privacy
data protection measures and policies, provide
staff training, and assure customers through
communications about their privacy rights and the
security of their data. To know more on Union Bank's
actions in this area, read the Chapter on Intellectual
Capital on Page 82.
12 Social Capital - Data security is essential to prevent breades that GRI 418: SASB FN-CB-
Data Security could harm customers and Your Bank's reputation Customer 230a.2
and could lead to regulatory fines. Your Bank Privacy
invests in secure technology, employee training, and
regular audits to ensure that all data is appropriately
protected. To know more on Union Bank's actions in
this area, read the Chapter on Intellectual Capital on
Page 82.
13 Social Capital Helping clients to be sustainable can contribute to GRI 203: SASB FN-CB-
- Clients' long-term client relationships and the sustainability Indirect 410b.1
Sustainability of Your Bank itself. Your Bank develops sustainable Economic
products, provide sustainability advice and services, Impacts
and support clients in their sustainability transitions.
To know more on Union Bank's actions in this area,
read the Chapter on Relationship Capital on Page 104.
14 Social Capital - High-quality and safe products are essential GRI 417: SASB FN-CB-
Product Quality for customer satisfaction and trust. Your Bank Marketing 270a.1
& Safety implements robust quality controls, safety checks, and Labeling
and customer feedback mechanisms. To know
more on Union Bank's actions in this area, read the
Chapter on Manufactured Capital on Page 62.
15 Social Capital Customer welfare is crucial for customer retention GRI 416: SASB FN-CB-
- Customer and Your Bank's reputation. Your Bank provides Customer 270a.1
Welfare transparent and fair products, ensure customer Health and
privacy and data security, and provide excellent Safety
customer service. To know more on Union Bank's
actions in this area, read the Chapter on Relationship
Capital on Page 104.
19 Human Capital Continuous training and skill development are crucial GRI 404: SASB FN-CB-
- Training for employee productivity and job satisfaction. Training and 330a.2
and Skill Your Bank provides ongoing training programmes, Education
Development encourage lifelong learning, and support skill
development. To know more on Union Bank's actions
in this area, read the Chapter on Human Capital on
Page 120.
20 Human Capital Ensuring employee health and safety can contribute GRI 403: SASB FN-CB-
- Employee to productivity and job satisfaction. Your Bank Occupational 320a.1
Health & Safety implements robust health and safety policies, Health and
provide training, and ensure a safe and healthy Safety
working environment. To know more on Union Bank's
actions in this area, read the Chapter on Human
Capital on Page 120.
Integrated Annual Report
2022-23 41

Issue # High Material Relevance and Measures GRI SASB UNSDG Strategic
Issue Priority

Strategy, Model & Capitals

23 Business Model Innovating new products is vital for the Union Bank GRI 417: SASB FN-CB-
& Innovation - of India to meet changing customer needs and Marketing 330a.1
Significance of stay competitive. Your Bank encourages a culture and Labeling
Product Design of innovation, invest in R&D and customer insights,
and Innovation and collaborate with fintech companies. To know
more on Union Bank's actions in this area, read the
Chapter on Manufactured Capital on Page 62.

29 Leadership & Strong ethics and anti-corruption measures are GRI 205: Anti- SASB FN-CB-
Governance vital to Your Bank's reputation, customer trust, and corruption 510a
- Business regulatory compliance. Your Bank implements

Notice
Ethics and robust anti-corruption policies, provide staff training,
Anti-Corruption and demonstrates commitment to ethics through
Measures leadership behaviors. To know more on Union Bank's
actions in this area, read the Chapter on Corporrate
Governance Report on Page 191.

33 Leadership & Managing risks effectively is crucial to maintain GRI 102-15: SASB FN-
Governance financial stability and customer trust. Your Bank Key impacts, CB-000.B:
- Risk implements a robust risk management framework, risks, and Systemic Risk
Management invest in technologies for risk analysis, and conduct opportunities Management
regular risk audits. To know more on Union Bank's
actions in this area, read the Chapter on Risk
Management on Page 91.

Statutory Reports
34 Leadership & Effective grievance redressal mechanisms are GRI 102-17: SASB FN-
Governance important to maintain good relationships with Mechanisms CB-510a.3:
- Grievance stakeholders and to comply with regulatory for advice Critical
Redressal of requirements. Your Bank implements robust and concerns Incident Risk
Stakeholders grievance redressal procedures and communicate about ethics Management
them clearly to all stakeholders. To know more on
Union Bank's actions in this area, read the Chapter
on Relationship Capital on Page 104.

36 Leadership & Building a good reputation and effectively GRI 102-43: SASB FN-
Governance communicating with stakeholders is important for Approach to CB-510a.2:

Financial Statements
- Reputation, maintaining trust and attracting investment. Your stakeholder Management
Communication Bank implements strong communication strategies, engagement of the Legal
and Awareness promote transparency, and engage actively with & Regulatory
stakeholders.To know more on Union Bank's Environment
actions in this area, read the Chapter on Stakeholder
Engagement on Page 36.

43 Economy - Systematic risk management is essential to avoid GRI 201: SASB FN-
Systematic Risk significant losses and maintain financial stability. Economic CB-000.B:
Management Your Bank uses advanced risk modelling techniques, Performance Systemic Risk
conduct stress tests, and maintain adequate capital Management
buffers. To know more on Union Bank's actions in
this area, read the Chapter on Risk Management on
Page 91; and on Financial Capital on Page 70.
 Integrated Annual Report
42 2022-23

Our Dynamic
Business Model
Our Operating
Canvas
As Union Bank of India, Key Partners Key Activities
a public sector bank, we
elegantly balance our
commercial objectives Our partnership with the We accept deposits from our retail
Government of India, being clients, corporate clients, PSU clients and
with social and sustainable a public sector bank, is government bodies. We provide loans to
aspirations. Here is a essential. We also work diverse sectors, including retail, agriculture,
glimpse into our business closely with other banks MSMEs, and large corporates, while
model using the standard and financial institutions focussing on financial inclusion, women
for interbank transactions empowerment, and priority sectors. Digital
Business Model Canvas and loan syndications. In innovation is at the heart of our operations
as developed by Alexander addition, our collaborations to offer easy banking access to customers
Osterwalder and Yves with Fintech companies and promote financial inclusion. We
enable us to innovate also cater to investment and wealth
Pigneur. As an agile
bank, this framework is
and improve our digital 2 management needs of high-net-worth
services. We have strategic clients and retail investors.
dynamic and continually partnerships with Non-
adapts to changes in banking financial companies
(NBFCs) and a network of
regulatory, economic,
Business Correspondents
and technological for extending credit.
environments.
Key Resources
1
Our financial resources encompass
deposits, investments, and capital
reserves. Our skilled workforce is
crucial in managing various banking
operations and providing excellent
customer service. We also rely on
» Business Model our physical resources, including an
Components: extensive network of branches and
ATMs, along with online banking
platforms. Our brand and reputation
1 Key Partners as one of the largest, most trusted
3 public sector banks in India are
2 Key Activities invaluable.

3 Key Resources

4 Value Proposition

5 Customer Relationships
Key Inputs
6 Channels

7 Customer Segments Our operational costs comprise employee salaries, branch maintenance, IT
infrastructure and cybersecurity maintenance. We also maintain regulatory
8 Key Inputs 8 costs, complying with banking and financial regulations. Risk costs in the form
of provisions for bad loans and write-offs also form part of our expenditure.
9 Revenue Streams
Integrated Annual Report
2022-23 43

Strategy, Model & Capitals

Value Customer Customer
Proposition Relationships Segments

We offer accessibility through We maintain personal Our clientele spans from retail
our broad physical presence assistance through our customers, who engage us for
and digital platforms. We branch banking. We provide savings, current accounts, loans,
provide a sense of security and self-service and automated etc. We have corporate clients
trust being government-backed services through our digital seeking working capital, term loans,
and regulated. We cater to platforms and ATMs. Our trade finance, etc. We also manage
a wide range of customers commitment to community government funds, tax collection,

Notice
with our diverse product and development shines and disbursement. We extend our
service portfolio. Upholding through our social outreach services to MSMEs and Agricultural
our social objectives, we programmes, priority sector Customers through lending and
also prioritize sector lending, lending and CSR activities. other banking facilities.
financial inclusion initiatives,
and sustainability.
5 7
4

Statutory Reports
Channels

Our branch network is vital

for providing face-to-face
banking services. We also
serve customers via digital
platforms, including mobile
and online banking, and
UPI. Our vast ATM network
facilitates cash withdrawal,
deposits and other services.

6 Financial Statements

Revenue
Streams

We earn interest income from various types of lending. We also generate

revenues from fees and commissions obtained from services such as
9 wealth management, card services, remittances, among others. Our
investment income arises from treasury operations.
 Integrated Annual Report
44 2022-23

FY2023: Creating Integrated

Value
» INPUT CARVING TOMORROW:
CUSTOMERS, PERSONNEL AND INSTITUTION
As one of India’s progressive banking future, we embed our customers
at the crux of our pursuits. We inspire our personnel and unlock
their potential, thereby cultivating a fertile ground for
FINANCIAL CAPITAL talent to thrive. All our efforts are channelled towards
a common vision: to empower communities,
` 19,27,621 cr
bolstering their journey towards progress.
Global Business 8
.2
` 6,835 crore Pg
s 82
Equity g.

ic
P

am
l
ita

yn
91

tD

ap
MANUFACTURED CAPITAL .1

C
rke
Pg

al
Ma

tu
8,577 branches

e
ec

nc
ell
10,835 ATMs

rna
Int
Deciphering Market Dynamics

ve
Go
INTELLECTUAL CAPITAL
1461 Internal Training
Programmes Business Model:
Pg. 28

Our Operating
HUMAN CAPITAL Canvas
Pg. 42
75,594 employees
28.82% women
> 66,000 training hours by
Union Learning Academies

NATURAL CAPITAL
205,135 kilolitres
water consumption
892,587 GJ
energy consumption

SOCIAL CAPITAL
` 16.42 cr CSR spend
130 suppliers at Central Office
21.67 cr clients
TAILORING COMPREHENSIVE FINANCIAL
Digital Clients:
» UPI: 1.96 crore
SOLUTIONS
» Net Banking: 74 lakh Organised into four segments, we deliver a broad spectrum of banking
products and services, catering to the multifaceted needs of our customers
» Mobile Banking: 2.13 crore
across savings, loans, insurance, investments, and international banking.
 Integrated Annual Report
2022-23 45

Strategy, Model & Capitals

CHARTING THE PATH OF SUSTAINABLE GROWTH » OUTPUT
Delivering a Return on Average Assets of 0.69 in FY2023, up
from 0.47 in FY2022, we aim to deliver a tangible commitment to
diversified growth and a transition to a low-carbon economy.

FINANCIAL CAPITAL
13.26% ROE (Return on Equity)
0.69% ROAA (Return on Average Asset)
61.18% YoY Growth in PAT

Notice
MANUFACTURED CAPITAL
` 10,370 crores
sanctioned for renewable energy sector
` 11,17,716 crore Deposits
Strengthening Financial Capital

Our Strategy INTELLECTUAL CAPITAL

Blueprint Mobile Banking: 29%
Pg. 32 Internet Banking: 9%
YoY growth in digital adoption
Pg. 70

Digital

Statutory Reports
Transformation
Pg. 82-89 HUMAN CAPITAL

Empowering 13,98,470
08

total hours of training

Inclusive Growth
g. 1

Pg. 110
tP

NATURAL CAPITAL
. 50
irs
sF

11,278 tonnes of waste

Pg

98
er

ts
m

g.

s GHG Emissions:
uc
to

Cu
lP
od

ng Scope 1: 274042 metric tonnes of CO2

ita

t ti
Pr

l
ap

Pu ib equivalent YOY Reduction of 3.33%

e

Financial Statements
s
lC

on Scope 2: 241884 metric tonnes of CO2

ra

sp
Re Na
tu

g equivalent
ri n
r tu 12,339 GJ
Nu
non-conventional renewable energy

SOCIAL CAPITAL
DESIGNING THE FUTURE: ` 22.87 crores donations
DIGITALLY EMPOWERED AND SUSTAINABLY DRIVEN 2,52,954 customer issues resolved
Our clients are the nucleus of our operations as we chart our approach, redefining 51 approved programmes
work experiences for our people. We are following a lean capital model, weaving the
principles of sustainability into the fabric of our strategy, all the while harnessing the
power of digitisation.
 Integrated Annual Report
46 2022-23

Our Approach to
Sustainability
Transforming Together.
Our purpose is a simple one: make a difference value for our stakeholders, including shareholders,
in people’s lives and uplift the communities we customers, employees, communities, and
serve. At Union Bank of India, we are proud of regulators. This focus is aligned with our Vision
the transformation we are helping bring about, and guided by our Core Values and Strategic
and optimistic about the work we are going to Actions. Our commitment to sustainability is
do together to uplift all our stakeholders. We are integrated across our Company and aligned to our
focused on generating long-term sustainable strategic priorities.

CUSTOMERS
RS
DE

Economic
EM
HOL

PLO
SHARE

YEES
Environment
Governance

Generating
Sustainable
Value

Social
ES
TI

I EG
UN UL
AT
MM
OR
CO S
Integrated Annual Report
2022-23 47

Our value proposition. As a resilient and diversified entity, Union Bank

If India is to become a strong economy, it will need strong of India is committed to providing consistent
banks. At Union Bank of India, we are transforming
ourselves to be amongst India’s foremost banks. With
returns to shareholders while focusing on

Strategy, Model & Capitals

strength, comes the ability to do strategic good. Therefore, sustainable growth. We continue to build a strong
our approach to corporate sustainability and ESG is business that serves all stakeholders, creating
focused on doing well by doing good. We believe that opportunities for shared prosperity.
how we can facilitate finance can have positive effects
for society too. Together, we can deliver for all our
stakeholders.

We deploy finance responsibly to support people

and businesses, acting with empathy and integrity,
championing innovation and sustainability, for the common

Notice
good and the long term.

We can do so because of our diversification. As a

» Together for society and the environment
universal Indian bank, we have diversity in the types of
customers and clients we serve – from individuals and Our success over the long term is tied inextricably to the
small businesses to global corporations to governments progress of our communities, and the preservation of
– as well as the geographies we operate in and the types our environment
of income we generate. This diversity gives us resilience
through economic cycles and gives us the platform to
deliver a consistent level of financial performance.

Statutory Reports
That, in turn, means we can better serve our stakeholders.
We aim to deliver for our customers and clients, create a
wonderful place to work for colleagues, support society » Together for our investors
and provide consistent returns to shareholders. As we We continue to build a strong, diversified business that
target sustainable growth for our Bank, our stakeholders can deliver attractive and sustainable returns
will be able to grow with us.

Oversight
The Bank’s ESG oversight is carried out by the Stakeholders
Relationship Committee (SRC). The objective of the this

Financial Statements
Committee shall be to assist the Board and the Bank
in fulfilling its Corporate Social Responsibility and ESG
» Together for our customers and clients objectives. The Committee is adequately composed of the
Executive and Non-Executive Directors. During FY2023, Ms.
We help those who use our products, services and
Priti Jay Rao, Shareholder Director of the Bank chaired the
expertise realise their aspirations
Committee. The Committee held 4 meetings during the
year FY2023.

The scope of SRC was expanded by mandating it with

the functions related to Customer Service and Corporate
Social Responsibility. SRC also has been mandated with
Environment, Social and Governance (ESG) functions.
» Together for our employees
We support their health and wellbeing, enable them to
build their career, and empower and motivate them to be
able to provide excellent service
 Integrated Annual Report
48 2022-23

Ethical Excellence

Our Approach to
Responsible Banking
Promoting Trust and Transparency: Our Commitment to Fair Practices and
Customer-Centric Growth

At Union Bank of India, we are focused on delivering best- Honest Business Practices
in-class financial products and services and providing
At Union Bank of India, we strive to act in our customers’
access to those services whenever and wherever
best interest. Fair and honest business practices are
consumers want them. We are responsible for ensuring
essential to keeping our customers at the centre of
that our products and services are accessible to all
everything we do. Unethical business practices are strictly
consumers, in all markets, and that the right types of
prohibited, and further, are not consistent with our core
responsible products and services are offered. We strive
values. We are fully committed to maintaining non-abusive
to act in the best interest of consumers by providing
and anti-predatory lending practices. Credit decisions are
reasonably priced products, defining clear terms and
made without regard to caste, ethnicity, colour, religion, sex,
disclosures, and offering fair and consistent service. By
age, marital status, sexual orientation, gender identification
doing so, we can build lasting customer relationships and
or assignment, military status, disability, receipt of public
meet our responsibility to help them prosper.
assistance, familial status or a consumer’s exercise of
credit protection rights.
We strive to act in the best interest of
The Bank’s Board and its committees are responsible
consumers to build lasting relationships and to
for guiding enterprise-wide strategies and policies. The
help them prosper. committees facilitate high-level direction to consumer
and commercial lines of business consistent with such
strategies and policies. The committees also seek to
promote a corporate culture that supports Union Bank’s
commitment to laws and regulations that prohibit
behaviour and practices that could be deemed unethical,

172
Training Programmes conducted in FY2023, covering
discriminatory, or predatory in nature, as well as unfair,
deceptive, or abusive acts or practices.

703 employees. In addition, the Bank requires employees and contractors to

complete compliance training on an annual basis, including
complaint management, financial crimes compliance
training, financial abuse, preventing fraud and ‘Doing

66,000
the Right Thing’. In FY2023, 172 Inland External training
> programs were conducted which covered 703 employees
and 7 Overseas programs were conducted which covered
Learning hours invested in training its workforce in FY2023 by 43 employees. Total 1171 long duration programs were
Union Learning Academies.
conducted which covered 45965 employees and 290
small duration programs were conducted covering 39414
employees. Total 136 training programs conducted by all
ULAs and trained over 3500 employees in FY 2022-23.
More than 66000 Learning Hours training is imparted by
Integrated Annual Report
2022-23 49

Strategy, Model & Capitals

Notice
Statutory Reports
ULAs to improve the proficiency level of the participants in is committed to playing its part, and working in partnership
various new age skills. with our stakeholders to support the delivery of the goals.

During FY 22-23 total 14 advance training programs and 20 Our social and environmental financing covers
functional/core training programs are developed. Also, 28 businesses from all sectors. It generates positive social
case studies have been developed by the faculty members. and environmental contributions through financing of
healthcare systems, educational institutions, affordable
The mission of the Bank’s Marketing department is to housing projects, and green infrastructure projects.
support customer-centric growth by fully activating the Financing of these activities in turn supports progress on

Financial Statements
Bank’s brand. Marketing professionals are motivated by the SDGs.
doing what’s right for customers and keeping them at the
centre of all decisions.

How our financing supports the Sustainable

Development Goals
Union Bank of India is in the process of recognising the
Sustainable Development Goals (SDGs) as a set of shared As part of a more comprehensive update of our
global priorities to be achieved by 2030. These relate to Sustainable Finance Framework, we are in the process
positive human, societal and environmental factors, and of updating our Framework and process to capture
are to be reached through committed engagement and information more accurately on the SDGs, supported
multilateral collaboration. We believe it is important for through an analysis of the underlying SDG targets. As
business, governments, society and other stakeholders to better information becomes available, we will refine our
work together to make the 2030 Agenda a reality. The Bank methodologies in order to provide more granular insights.
 Integrated Annual Report
50 2022-23

Responsible Products
A Year of Growth
and Inclusion
Sustainable Financial Solutions and Empowering Diverse Sectors

This chapter delves into the diverse advances, underpinned by our dedication to sustainability and digitisation.
facets of Union Bank of India’s Surpassing statutory targets and extending credit facilities to underrepresented
commitment to fostering financial segments testify to our focus on financial inclusion. This chapter further
prosperity and accessibility. Our 2022- demonstrates our tailored approach to catalyse economic growth and enhance
23 fiscal year saw robust growth in the financial well-being of our customers, thereby reinforcing our annual theme
key sectors - retail loans, corporate of steadfast commitment to sustainability, propelled by digital ingenuity.
lending, agricultural and MSME

Initiative UNSDGs GRI Standards Strategic Pillars Materiality Aspect

Retail Loans Growth GRI 203: Indirect 23, 24, 25

Economic Impacts

Enterprise Lending GRI 203: Indirect 23, 24, 25

Economic Impacts

Agricultural Advances GRI 203: Indirect 13, 23, 24, 25, 39

Economic Impacts

MSME Advancements GRI 203: Indirect 13, 23, 24, 25, 39

Economic Impacts

Priority Sector GRI 203: Indirect 13, 23, 24, 25, 39

Advances Economic Impacts
Integrated Annual Report
2022-23 51

Retail Loans This growth reflects our persistent

efforts in providing diversified,
Initiative UNSDGs GRI Standards Materiality Aspect customer-centric financial solutions
Retail Loans GRI 203: Indirect 23, 24, 25 that cater to the varying needs of our

Strategy, Model & Capitals

Growth Economic clientele, from home and education
Impacts to personal and mortgage loans. It
is worth highlighting the remarkable
growth in personal loans, where
In line with Union Bank of India’s commitment to enhancing our clients’ financial we have seen a substantial rise of
health, our retail loan portfolio continues to see an encouraging upward 91.54% year-on-year and an overall
trajectory, consistently contributing to sustainable economic growth and retail growth of ` 23,429 crore over
wellbeing for our customers. March 2022. To augment our impact,
we have sanctioned retail loans worth
During the fiscal year 2022-23, we witnessed an overall year-on-year growth of ` 32,375 crore PAN India during the
17.19% in our retail loans outstanding. This substantial growth signifies not only fiscal year 2022-23 through Retail

Notice
our sustained efforts to make banking and financial services more accessible to Loan Points (RLP). These numbers
a broader segment of the population but also resonates with our theme of the not only indicate the robust financial
annual report - “Committed to Sustainability, Driven by Digital Prowess”. health of your Bank but also validate
our strategic priorities and approach
The following table provides a breakdown of the year-on-year growth under towards a customer-focused
retail lending: service model.

Scheme % YoY Growth

Home 10.84 By embodying a proactive,
Miles 30.63 customer-centric approach,

Statutory Reports
Education 24.10
Union Bank of India stands
Mortgage 13.49
firm in its resolve to empower
Personal 91.54
customers, catalyse prosperous
Others 10.71
Total Retail Advance (including PWO) 17.24
futures, and stimulate economic
PWO (-) 25.95 growth. Our retail loan segment
Total Retail Advance (Excluding PWO) 17.19 continues to make strides
towards a resilient financial
ecosystem that is accessible,

Financial Statements
inclusive, and beneficial for all.

As a forward-thinking institution,
we have also embarked on a series
of new initiatives to improve our
services’ efficiency and reach. These
include the introduction of specialised
schemes for education loans,
earmarking dedicated education loan
officers, launching the Union Suraksha
Personal loan, digitalisation of
education, and vehicle loan journeys,
among others.
 Integrated Annual Report
52 2022-23

Responsible Products
A Year of Growth and Inclusion

The strategic road ahead for us is based on maximising business and market
Empowering enterprises with
share in identified aspirational districts, streamlining the Retail Loan Point (RLP)
structure to improve credit underwriting, forming special cells to cultivate future sustainable growth, your Bank
customer base and HNIs, and continuing to leverage digital capabilities for continues to innovate, digitalise,
enhanced service delivery. and champion environmental
responsibility, contributing to a
robust, resilient economy.

During FY 2022-23, your Bank

launched various initiatives to
enhance the sustainability and
digitalisation of its enterprise
services:

1. Digital Loan Application

Platform: A new digital pre-
approved personal loan platform
was launched through VYOM,
enabling enterprises to apply
online loans, reducing the need
for paper-based applications.
This initiative expedites the
loan approval process and
contributes to our commitment
to environmental sustainability by
reducing paper usage.

Enterprises 2. Green Financing: To drive

sustainable business practices,
Initiative UNSDGs GRI Standards Materiality Aspect your Bank introduced favourable
Enterprise GRI 203: Indirect 23, 24, 25 terms for enterprises that invest
Lending Economic in eco-friendly projects or adopt
Impacts green technologies. This initiative
helps promote sustainable
development and mitigate
In a rapidly evolving global market, enterprises play a pivotal role in the the adverse effects of
economic engine. climate change.

3. Fintech Partnerships: Your Bank

3,73,188 15.12%
has actively collaborated with
` various fintech companies to
cr. offer advanced digital solutions
Corporate and other advances as of 31.03.2023. YoY growth rate for mid-corporate accounts.
to enterprise customers, like
instant loan approval, digital
payment solutions, and online
account management.
`
21,615 cr.
New business proposals were approved during FY 2022-23, indicating the potential for future growth
4. Digitisation of Enterprise
Services: To enhance customer
experience, we’ve digitised
and expansion of corporate credit.
several services, such as account
Integrated Annual Report
2022-23 53

opening, funds transfer, and

invoice discounting, among
others. Now, enterprises can avail
of these services 24x7 from the

Strategy, Model & Capitals

comfort of their office, reducing
the time and cost of banking
transactions.

5. Cybersecurity Initiatives: In
the digital age, data security is
paramount. We have invested in
robust cybersecurity measures to
ensure our enterprise customers
can securely conduct their
banking transactions.

Notice
6. Training and Development: We’ve
conducted multiple workshops
and training sessions to keep
our enterprise clients up-to-date
with the latest digital banking
tools. These sessions ensure that
enterprises can leverage the full
potential of our digital banking Agriculture
services.
Initiative UNSDGs GRI Standards Materiality Aspect

Statutory Reports
As we step into FY 2023-24, we aim Agricultural GRI 203: Indirect 13, 23, 24, 25, 39
to continue leveraging technology Advances Economic
to drive growth and sustainability Impacts
in the enterprise segment. Our key
strategies include expanding our
green financing portfolio, introducing
more digital services tailored for
enterprises, strengthening our
cybersecurity framework, and
increasing our collaborations

Financial Statements
Union Bank of India continues to prioritise agricultural lending, recognising
with fintech companies to provide its crucial role in fostering economic development and reducing rural poverty.
innovative banking solutions. As of March 31, 2023, our agrarian advances constituted 17.77% of the Gross
advances, demonstrating our unwavering commitment to this vital sector.
We also plan to conduct more
training sessions for our enterprise We are proud to announce that we surpassed the statutory agriculture priority
customers, ensuring they are well- target of 18% by achieving a performance rate of 18.97% as of March 31, 2023.
equipped to utilise the benefits of In addition, we successfully sold a surplus of ` 15,450 Cr under PSLC-Small &
digital banking. Marginal Farmer, underscoring our efficient management and contribution to
the sector.
By harnessing the power of
digitalisation and promoting
sustainable business practices, we Nurturing agricultural prosperity, we consistently exceed statutory
aim to drive enterprises’ growth targets, bolster financial wellness in farming communities, and
and contribute to our economy’s
drive economic development through responsible lending.
sustainable development.
 Integrated Annual Report
54 2022-23

Responsible Products
A Year of Growth and Inclusion

During the fiscal year 2022-23, we

witnessed a robust year-on-year
growth of 14.20% in agricultural
lending, reaching an outstanding total
of ` 151,993 Cr as of March 31, 2023.

We also remained steadfast in our

commitment to small and marginal
farmers, with an outstanding credit
of ` 95,171 Cr as of March 31, 2023,
representing 13.33 percent of ANBC
and surpassing the benchmark of
9.50 percent. During the same period,
we issued 4.11 lakh fresh Kisan Credit
Cards amounting to ` 6896.45 Cr.

17.77%
Share of Agriculture within Gross Advances
as of 31.03.2023.

Micro, Small& Medium Enterprises (MSME)

14.20%
Initiative UNSDGs GRI Standards Materiality Aspect

MSME GRI 203: Indirect 13, 23, 24, 25, 39

YoY growth in Agriculture Lending. Advancements Economic
Impacts

4.11 lakh
Fresh Kisan Credit Cards were issued
during FY2023.
The Micro, Small, and Medium Enterprises (MSMEs) play an integral role in any
country’s economic growth and development. During FY 2022-23, we witnessed
a notable increase of 13.06% in our total MSME advances, expanding from
These milestones reflect Union ` 110577 crore to ` 125022 crore.
Bank of India’s continuous efforts
in fostering financial wellness We have diligently worked on enhancing our services under identified MSME
among agricultural communities, schemes such as Union MSME Suvidha, Union Nari Shakti, Union Equipment
aligning with our strategic priority of Finance, Union Ayushman Plus, and Union Solar, witnessing substantial credit
enhancing our clients’ financial health sanctioning across these schemes. The MSME Loan Points, responsible for the
and catalysing prosperous futures. appraisal and sanctioning of credit proposals, recorded a sanction of ` 35,598
crore during the year.

Our ‘Branch Manager Delegation Power Campaign’ resulted in sanctioning

166,234 loan accounts, bringing in a credit value of ` 4,461 crore. Such proactive
initiatives were complemented by consistent monitoring by Central Office
executives, which significantly boosted the growth of MSME businesses.
Integrated Annual Report
2022-23 55

on their entrepreneurship journey, underscoring our dedication towards

Fuelling the entrepreneurial
fostering economic growth.
spirit and embracing digital
transformation, we ensure
`
1,25,022 cr.

Strategy, Model & Capitals

robust growth in MSMEs,
fostering economic resilience
The total MSME advances at the end of FY 2022-
and championing environmental 23, indicating a robust growth of 13.06% YoY in
support of MSMEs.
sustainability.

To further fortify our dedication

towards MSMEs, we launched 80
additional Union MSME First Branch
(UMFBs), raising the total to 105
166,234
The number of loan accounts sanctioned
`
10,113 cr.
The utilisation under the approved cluster

Notice
branches, and managing an MSME under the ‘Branch Manager Delegation Power schemes as of Mar.23, showing a solid
Campaign’ indicated an aggressive drive towards increase from ` 2191 Crore in the previous year,
portfolio of ` 9,000 crore. Additionally,
supporting MSMEs, resulting in ` 4,461 Crore representing a focus on cluster-based growth
a start-up-focused branch is set to of credit. strategies for MSMEs.
launch in Bangalore. We also noticed
a robust increase in utilisation under
our approved cluster schemes,
skyrocketing from ` 2,191 crore to Understanding the significance of ESG initiatives, we launched digital banking
` 10,113 crore. solutions for MSME customers to apply for loans digitally. Products like Straight
through Processing (STP) Kishore and Tarun Mudra Loans, Union Nari Shakti,
Our attention to service digitalisation and GST Gain are now available digitally, enhancing the ease of access
led to the creation of the ‘Centralised and usage.

Statutory Reports
Guarantee Cell’ and the ‘Credit
Guarantee Management Solutions Lastly, we launched the ‘Union Solar’ product to finance borrowers for installing
(CGMS)’ portal, streamlining Solar Power Plants. This move aligns with our dedication towards promoting the
the processes related to credit use of non-conventional energy sources, thereby contributing to environmental
guarantees. This initiative enabled us sustainability.
to become the industry’s first bank to
have API integration of CGTMSE for Priority Sectors
fresh guaranteed coverage.
Initiative UNSDGs GRI Standards Materiality Aspect

Financial Statements
Education plays a critical role in
Priority Sector GRI 203: Indirect 13, 23, 24, 25, 39
sustaining growth. Consequently, we
Advances Economic
equipped our Marketing Officers and
Impacts
MLP Heads with intensive orientation
and training on credit appraisal and
marketing. This endeavour provided
them with the necessary skills and
knowledge, contributing to better job
implementation.

We extended our commitment Union Bank of India remains committed to serving the diverse needs of society,
towards societal growth through with priority sector advances reaching ` 302,006 Cr as of March 31, 2023. We
active participation in schemes like exceeded the statutory target of 40% by achieving 42.31% of the Adjusted Net
PMEGP, PMMY, and PMSVANidhi. Bank Credit (ANBC) for Q1 2023, after excluding PSLC sales and including
Through these initiatives, we have investments in RIDF/SIDBI/MUDRA/NHB.
helped numerous individuals embark
 Integrated Annual Report
56 2022-23

Responsible Products
A Year of Growth and Inclusion

Embracing technology and societal commitment, we strive to

empower women, minority communities, and weaker sections,
`
105,954 cr.
Loans given to Women Entrepreneurs, up by
driving financial inclusion and fuelling sustainable growth for all. 18.90% YOY

Our focus on social upliftment has led us to extend credit facilities to weaker
and underserved sections, such as women, minority communities, and self-help
groups.
`
118,631cr.
Loans given to Weaker Sections, up by 13.30%
1. Women Beneficiaries: Encouraging women entrepreneurs, we grew our YOY
loans to women from ` 89,110 Cr in March 2022 to ` 105,954 Cr in March
2023, an 18.90% increase.
2. Minority Communities: We offered credit to minority communities, reaching
` 28,314 Cr as of March 31, 2023, comprising 9.38% of priority sector
advances.
`
28,314 cr.
Loans given to Minority Communities, 9.38% of
3. Weaker Sections: We increased our finances to weaker sections from
our priority advances.
` 104,698 Cr to ` 118,631 Cr as of March 31, 2023, a 13.30% increase.

Our initiatives, like Rural Self Employment Training Institute (RSETI) and
Regional Rural Banks (RRBs) like Chaitanya Godavari Grameen Bank (CGGB), Our alignment with government
further underscore our commitment to rural development. As of March initiatives like Pradhan Mantri Fasal
2023, 308,494 candidates were trained at RSETIs, with 205,525 successfully Bima Yojana (PMFBY), Atmanirbhar
employed. Bharat Schemes, and renewable
energy schemes, coupled with digital
initiatives like the Digitization of
Kisan Credit Card, further illustrates
our determination to leverage
technology for financial inclusion and
sustainability.
Integrated Annual Report
2022-23 57

Financial Inclusion
Participation for FY2023
In line with our commitment to

Strategy, Model & Capitals

sustainable development and
embracing the digital age, we have
prioritised financial inclusion as a key
strategic focus for the past fiscal year
2022-2023.

Our progress is evident through the

significant growth in Pradhan Mantri
Jan-Dhan Yojana (PMJDY) accounts
from 244.78 lakhs to 280.00 lakhs, as
well as an increase in the associated

Notice
account balances from ` 7780 crores
to ` 9046 crores. This illustrates our
commitment to ensuring that even
the most marginalised segments of
society are financially empowered.

Moreover, our efforts to integrate

Aadhaar, a unique identification

280 lakh 17,000+

system, into our financial inclusion
strategies have paid off, with the
number of Aadhaar-seeded accounts

Statutory Reports
growing from 204 lakhs to 229 lakhs. Pradhan Mantri Jan-Dhan Yojana (PMJDY) The number of Bank Correspondents (BCs) as of
accounts as of March 31, 2023 March 31, 2023
Similarly, we also saw a substantial
increase in the issuance of RuPay
cards, further facilitating digital

9,046 cr.
transactions for our customers.
`
We are also proud of the significant
strides made in terms of our Bank The total balance in PMJDY accounts
as of March 31, 2023
Correspondents (BC) infrastructure, with
the number increasing from 16,948 to

Financial Statements
17,662. Our BCs play a crucial role in
providing banking services in remote
In FY 2022-23, we introduced a new initiative – the enrolment of the New
areas, and we have targeted to further
Pension Scheme (NPS) at BC points. This development has allowed us to
improve this number to 20,000 in the
expand our financial inclusion efforts and make retirement savings accessible
next fiscal year.
to individuals in far-reaching corners of the country.

Additionally, we have leveraged digital technology to improve the monitoring and

“Leveraging digital technology, effectiveness of our BCs through the launch of the BC Monitoring Mobile App.
This app streamlines BC operations, serves as a preventive vigilance measure,
we aim to break down barriers to
and provides early warning signals of irregularities at BC points.
financial empowerment, reaching
the most marginalised sections For the upcoming fiscal year 2023-24, we are committed to linking BCs at the
of society and making financial Jan Samarth Portal and the ZOHO CRM application for lead generation of asset
and liability products. Furthermore, we will aim for real-time account opening of
inclusion a reality for all.”
PMJDY and real-time APY, PMJJBY, and PMSBY enrolment.
 Integrated Annual Report
58 2022-23

Awards & Accolades

Respect FY2023
Award Organisation Award Description
PFRDA Award Recognized as the “Best Performing Bank”
Retail Banker Asia Awarded the “Best ATM and Self-Service Innovation”
Trailblazer Awards 2022
31st National Award for Training Honored for Innovative Training Practices 2020-21
ASSOCHAM Awards Large Bank in the categories – Overall Champion, Lending and Non-Lending
BML Munjal Awards Acknowledged for Business Excellence through Learning & Development
EASE 4.0 Awards Received three awards under the following themes for FY 2021-22:
» Governance and outcome centric HR – Winner
» New Age 24*7 banking with resilient technology – 2nd Runner up
» Collaborating for synergistic outcomes – 2nd Runner up
EASE reforms Earned 2nd Rank for Q1 FY 2022-23 and retained the 2nd Rank for Q2 FY 2022-23
IBA Award-2022 Secured six awards including Best Technology Bank
DSCI AISS Award 2022 Recognized for Best Security practices (BFSI) & Security Leader of the Year
(BFSI)
DSCI Excellence Awards 2022 Celebrated for Best Security Practices in Banking Sector
DSCI Excellence Awards 2022 Acknowledged for Security Leader of the Year (CISO of our Bank)
18th Banking Technology Awards by IBA Honoured for IT Risk Management
18 Banking Technology Awards by IBA
th
Received Best Technology Bank and Best Technology Talent awards
BFSI Technology Conclave & Awards Won two awards in the Enterprise Security category
2022
EASE 5.0 Reforms Index Earned 1st rank for Digitally enabled customer offerings, BIG Data and Analytics
IBA Banking Technology Conference, Recognized with the Best Fintech Collaboration- Special Prize
Expo & Awards
PFRDA Awarded for the APY campaign
Department of Official Language, Honoured with 18 prestigious Kshetriya Rajbhasha Puraskars
Ministry of Home Affairs, GoI
Various TOLICs Awarded 85 Shields for outstanding performance in Official Language
Implementation
CGTMSE Secured 1st Position Award in the category of “Best Guarantee Coverage
(Number)”
CIMSME event Earned First position Award in various categories and runners up in others
9 MSME Excellence Awards by
th
Received 1st Position Award in the category of “BEST SME LENDING”
ASSOCHAM
ASSOCHAM Financial Conclave 2023 Awarded the “Best Bank of the Year in the Financial Ecosystem”
Institute of Directors Awarded Golden Peacock HR Excellence Awards 2022
Integrated Annual Report
2022-23 59

Strategy, Model & Capitals

Notice
Statutory Reports
Award Organisation Award Description
Mint W3 Champions 2022 Acknowledged as the Future of Workplace Disruptor 2022 (Large enterprise)

Financial Statements
M/s People Lab Honoured at Indian Academia Conference 2023 Corporate Award
Team Marksmen Named among Most Preferred Workplaces in BFSI 2022
BAI Global Innovation Award Awarded for Innovation in HR Transformation
NCPEDP- LTI Mindtree Helen Keller Recognized as one of the Role Model Companies
Awards-2022
ISTD, New Delhi Received ISTD 31st National Awards for Innovative Training Practices: 2020-21
IAC Corporate Awards 2023 Awarded for “Pioneering Work in Creating Future Ready Inclusive
Organization”
Business World People & Ask Insights Acknowledged as the “Best Organization for PWD Inclusion”
“Disability Positive Awards.”
18th IBA Technology Conference, Expo Received Best AI and ML Bank Runner Up award and Best Financial Inclusion
& Awards Runner Up award
FIEO Honoured with “Export Excellence Gold Award”
 Integrated Annual Report
60 2022-23

Awards & Accolades

Respect FY2023
 Strategy, Model & Capitals Notice Statutory Reports Financial Statements
61
Integrated Annual Report
2022-23
 Integrated Annual Report
62 2022-23

Responsible Manufactured Capital

Advancing
Financial Solutions
to Create Value
Integrated Annual Report
2022-23 63

» UNSDGs: » Strategy Blueprint: » Business Model Components:

1 3 6 7

Strategy, Model & Capitals

» Material Issues:

11, 12, 13, 19, 29, 43

Notice
Union Bank of India’s manufactured capital is a cornerstone
of our commitment to sustainability and digital prowess. By
offering a comprehensive range of banking products and
services, we empower individuals, households, businesses,
and corporations to achieve their financial goals. Our focus on
financial inclusion, green banking practices, and technological

Statutory Reports
advancements enables us to play a significant role in India’s
journey toward a prosperous, sustainable, and digitally
empowered future. As we continue to innovate and adapt
to changing needs, Union Bank of India remains dedicated
to creating long-term value for our stakeholders while
contributing to the nation’s growth as a global leader in clean
energy and digital innovation.

Financial Statements
As a financial institution committed to sustainability and driven by digital
prowess, Union Bank of India is dedicated to fostering the growth of a
digital and aspirational India, while championing the country’s journey
to net-zero emissions. In line with our core values, we recognize the
importance of manufactured capital in creating long-term value for our
stakeholders and contributing to India’s path toward becoming a global
leader in clean energy and digital innovation. This chapter delves into
Union Bank’s comprehensive range of services and solutions across
various segments, highlighting our commitment to financial inclusion,
green banking practices, and technological advancements that enable
us to serve our customers effectively and contribute to a prosperous,
sustainable, and digitally empowered future.
 Integrated Annual Report
64 2022-23

Responsible Manufactured Capital

Advancing Financial Solutions to Create Value

What we do: Services & Solutions emergency line of credit, trade finance solutions, working
capital financing, project financing, channel finance, and
Union Bank of India offers a wide array of banking
debt structuring/restructuring. Our expertise extends to
products and services that cater to the diverse needs of
services such as loan syndication, structured finance,
our customers. Our operations are organized into four
mergers and acquisitions advisory, and private equity
segments: Treasury Operations, Retail Banking Operations,
services. We also offer cash management, export and
Corporate and Wholesale Banking, and Other Banking
import finance, foreign exchange, derivatives, and NRI
Operations. Through these segments, we provide a
banking services. Moreover, we provide treasury products
comprehensive suite of financial solutions encompassing
and services, remittance services, and support for
various areas such as savings and current accounts,
international trade through our global network.
deposits, loans, insurance products, investment options,
and international banking services.
Other Banking Operations:
Retail Banking Operations: In addition to our core banking operations, Union Bank of
Our retail banking operations cater to individual customers India engages in various other banking activities to cater
and households, providing various products and services to specific needs and markets. We offer a range of digital
designed to meet their financial requirements. We offer banking services, including app banking, internet banking,
savings and current accounts, term and recurring deposits, self-service banking, ATM banking, and SMS banking. Our
demat and online trading accounts, and a variety of retail point-of-sale terminals and immediate payment services
loans, including home loans, vehicle loans, education contribute to our customers’ convenience and ease of
loans, and personal loans. Additionally, we extend loans transactions. Furthermore, we provide a comprehensive
against property and provide financial products specifically suite of cards, including combo cards, debit cards, credit
tailored for micro, small, and medium enterprises. Our cards, gift cards, prepaid cards, and payroll cards, to meet
retail banking portfolio also includes mutual funds, life and diverse payment needs.
non-life insurance products, health insurance plans, general
insurance policies, and tax-saving deposits. Furthermore, International Presence:
we offer government savings schemes, tax collection Union Bank of India’s commitment to global engagement
services, pension products, and departmentalized is evident through our international presence. We
ministries accounts. have three branches overseas located in Hong Kong,
Dubai International Financial Centre (UAE), and Sydney
Corporate and Wholesale Banking: (Australia). Additionally, we maintain a representative
Union Bank’s corporate and wholesale banking office in Abu Dhabi (UAE), a banking subsidiary in London
segment caters to the financial needs of corporate (UK), four Para banking subsidiaries within India, two joint
clients, businesses, and large enterprises. We provide a ventures (including one in the life insurance business), and
comprehensive range of corporate loans, including Covid one associate company - Chaitanya Godavari Gramin Bank.

`
19.28 trillion 15.12% 42.31%
Total business turnover as of March 31, 2023 Year-on-year growth in mid corporate segment Your Bank’s achievement in priority sector
(Deposits and Advances) advances

`
11,17,716 crore 17.19% 43.55%
Total global deposits with your Bank Year-on-year growth in retail loans Growth in the gross advance portfolio of
foreign branches

35.26% 18.97%
Percentage of CASA deposits out of Your Bank’s performance in the agriculture
total deposits priority sector
Integrated Annual Report
2022-23 65

Branch Network: Expanding Horizons through Diverse Markets

Customers

21.67 crore

Strategy, Model & Capitals

Domestic Branches

8,577 / Overseas
Branches: 3

Notice
ATM’s in Service

10,835
we rationalized 292 branches while converting 81 branches from traditional
branches to Customer Point Centres (CPC). These strategic decisions enable us
to optimize resources and provide more streamlined services to our customers.
Additionally, in line with our expansion plans, we opened 80 new branches
during the same fiscal year, extending our reach to areas where our presence
Business Correspondent Points can make a meaningful impact.

17,000 + By strategically locating our branches and evolving our service

Statutory Reports
offerings, we aim to empower communities, foster economic
growth, and contribute to realising a sustainable and digitally
empowered India.
Union Bank of India boasts an
extensive branch network that
spans the country, solidifying our
commitment to serving customers
from diverse regions. As of March
31, 2023, our Bank operates 8,577

Financial Statements
branches in India and maintains a
presence in three overseas locations:
Hong Kong, Sydney, and Dubai
International Financial Centre (DIFC).
Notably, 59 percent of our branches
are strategically located in rural
and semi-urban centres, allowing
us to cater to the financial needs
of individuals and businesses in
underserved areas.

In the pursuit of operational

efficiency and enhanced customer
experience, we continuously assess
our branch network. During FY2023,
 Integrated Annual Report
66 2022-23

Responsible Manufactured Capital

Advancing Financial Solutions to Create Value

Resource Management Fourteen Industrial Finance Branches (IFBs) and Fifty-

Union Bank of India has achieved a remarkable milestone Six Mid Corporate Branches (MCBs) nationwide provide
in its business performance during FY2023, with the total specialized services to our corporate clientele. Your Bank
business figure reaching ` 19.28 trillion. As of March 31, ensures judicious disbursements to investment-grade
2023, your Bank’s total business grew to ` 19,27,621 crore, projects, contributing to the growth opportunities in the
driven by the robust management of resources. Total Indian economy and its global linkages.
deposits stood at ` 11,17,716 crore, with CASA deposits
accounting for 35.26%. The composition of deposits
Your Bank actively supports corporate
reveals that saving deposits reached ` 3,20,075 crore,
while current deposits stood at ` 73,980 crore. To enhance growth, with ` 3,73,188 crore in corporate and
resource management, Union Bank of India implemented other advances, fostering investment-grade
key initiatives during the fiscal year: projects and contributing to India’s economic
1. Established a Corporate Salary Division, resulting in a opportunities and global linkages.
26.55% growth in the salary portfolio.
2. Current Deposits Sub-vertical: Introduced a dedicated
focus on current deposits. Mid-Corporate
3. Customer Segmentation and Premium Accounts: Union Bank has achieved significant growth in its mid-
Implemented customer segmentation strategies, corporate segment, with a year-on-year growth of 15.12%.
including SBHNI Prime for affluent individuals. During FY2023, your Bank approved 171 new business
proposals amounting to ` 21,615 crore. The final sanction
4. Special Account for Minors: Launched Union Muskaan,
was accorded in 64 accounts totalling ` 7,704 crore, and
a unique account for newborns and minors, promoting
enhancements were provided in 165 accounts amounting
savings habits and providing free term insurance.
to ` 7,977 crore. To increase non-interest income, your
5. Specialized Branch for Bulk Deposits: Identified 233 Bank enhanced the NFB limit (Off-Balance Sheet exposure)
branches to handle bulk deposits, enabling other in 91 accounts, totalling ` 3,000 crore.
branches to focus on retail term deposits and CASA
portfolio.
6. Special Deposit Schemes for Retail Term Deposits: Mid-corporate segment thrives at Union Bank,
Introduced term deposit schemes in various durations, achieving a remarkable 15.12% year-on-year
gathering approximately ` 1,00,000 crore from growth. We approved ` 21,615 crore in new
20,46,357 accounts.
business proposals, providing financial support to
7. Collaboration with Indian Navy and Naval Dockyard fuel growth and enhance non-interest income.
Mumbai: Signed MOUs to open salary accounts for
Navy personnel and Naval civilians.
8. NRI Engagement and Back Office Support: Conducted
“Pravasi Hamara Gaurav” drive, organizing 77
NRI meets, and established an NRI back office in
Mangalore for efficient customer support.
9. Deployment of Relationship Managers: Placed
relationship managers at regional offices and other
centres to offer personalized services to top clients
and HNI customers.

Corporate Credit
Union Bank of India actively participates in corporate
credit, catering to the needs of large corporations and
investment-grade projects. As of March 31, 2023, the
corporate and other advances stood at ` 3,73,188 crore.
Integrated Annual Report
2022-23 67

activities and business growth. To

ensure timely compliance, your Bank
created an in-house portal called
“Credit Guarantee Management
Solutions (CGMS)” that facilitates

Strategy, Model & Capitals

seamless activities related to
obtaining guarantee coverage under
various schemes. Your Bank became
the first in the industry to have API
integration with CGTMSE for fresh
guarantee coverage. The Guarantee
Cell handles guarantee coverage
schemes such as CGTMSE, CGFMU,
CGSSI, ECLGS, PMSVanidhi, and
CGSSS.

Notice
Retail
Union Bank of India has achieved
significant growth in retail loans, with
an overall year-on-year growth of
17.19%. Your Bank offers a range of
retail lending products, and the Y-o-Y
growth for each scheme is as follows:

» Home loans: 10.84%

Statutory Reports
» Miles (auto loans): 30.63%

» Education loans: 24.10%

» Mortgage loans: 13.49%

» Personal loans: 91.54%

MSME
» Others: 10.71%
Union Bank of India is committed to supporting Micro, Small, and Medium
Enterprises (MSMEs). To address their credit requirements, your Bank has
launched 80 additional Union MSME First Branches (UMFBs) during FY2023, The total retail advance, including pre-
shipment and post-shipment credit,

Financial Statements
bringing the total number of specialized branches to 105. These branches cater
to the MSME client base and have a portfolio size of ` 9,000 crore. Additionally, reached ` 1,60,595 crore, exhibiting
your Bank launched a specialized Start-up Branch in Bangalore to specifically a growth of ` 23,429 crore over
serve the needs of start-ups. the previous year. Pan India, Retail
Lending Points (CPCs) sanctioned
retail loans amounting to ` 32,375
Your Bank’s commitment to MSMEs shines through our specialized crore during FY2023.
branches. With 105 Union MSME First Branches and ` 9,000 crore in
portfolio size, we empower small businesses and startups, driving
Your Bank excels in retail
growth and supporting their credit requirements.
lending, witnessing an
impressive year-on-year growth
Your Bank has established a dedicated “Centralized Guarantee Cell” to enhance of 17.19%, with a total retail
efficiency and focus on credit guarantee schemes. This structure allows for
advance of ` 1,60,595 crore.
a more streamlined approach, freeing up field functionaries for marketing
 Integrated Annual Report
68 2022-23

Responsible Manufactured Capital

Advancing Financial Solutions to Create Value

To cater to diverse customer needs,

Our strategic partnerships with Nippon India Mutual Fund, LIC
Union Bank of India introduced
several new initiatives in retail lending. Mutual Fund, and others enable convenient access to select
These initiatives include the creation insurance products and mutual fund investments through the
of separate schemes for special VYOM app, offering comprehensive financial solutions.
education loans for studying abroad
and premier medical institutes (Union
Medicos). Dedicated education New products launched during the year include the ‘UNICARE’ policy from Bajaj
loan officers were earmarked as Allianz General Insurance Company, catering to the needs of HNI customers.
single-point contacts for education Manipal Cigna’s cancer plan for women, “PINK Health,” was also introduced.
loans, and a separate retail gold loan Additionally, Chola Farmer Care Package, a Chola MS policy, compensates
scheme for education loans was farmers for property losses, accidents, and loan protection.
introduced. Your Bank also launched
digital education loans for studies Union Bank of India has collaborated with fintech companies to enhance digital
in premier institutes and Union services. M/s. Fintech Blue Solutions Pvt Ltd is working on developing a digital
Suraksha Personal Loan to finance platform, and SUD Life, Care Health, and Manipal Cigna are already operating on
credit life premiums. Additionally, the VYOM app. Other channel partners are in the process of being onboarded.
your Bank empanelled UBISL as a M/s. Finwizard Technologies has developed a digital platform for mutual funds,
CSA (Customer Service Associate) successfully running on VYOM. A branch portal for mutual funds is also under
for canvassing education loan leads development, streamlining operations and customer access.
and integrated Maruti Suzuki with your
Bank’s Lending Automation System Additionally, your Bank developed an online redemption option for Sovereign
(LAS) for streamlined loan processing. Gold Bonds.

Wealth Management and

Relationship Banking
Union Bank of India actively engages
in wealth management, generating
income by distributing third-party
products. In FY2023, your Bank earned
an income of ` 353.36 crore from the
distribution of third-party products.

Your Bank’s wealth management

initiatives include corporate tie-
ups with Nippon India Mutual Fund
and LIC Mutual Fund to expand the
business under the mutual fund
segment. Select insurance products
from SUD Life, Care Health, and
Manipal Cigna were onboarded on
the VYOM app for purchase through
digital channels. Mutual fund
investments through the VYOM app
were made live, offering convenient
access to customers. Your Bank also
introduced a personal loan scheme
for premium funding of credit life
insurance policies.
Integrated Annual Report
2022-23 69

International Banking
Union Bank of India has expanded
its presence in international banking.
As of March 31, 2023, your Bank’s

Strategy, Model & Capitals

overseas business stood at ` 36,229
crore, compared to ` 17,429 crore
in the previous year. Your Bank
operates three overseas branches in
Hong Kong, DIFC Dubai, and Sydney
(Australia). It also operates in London,
United Kingdom, through its wholly
owned subsidiary, Union Bank of India
(UK) Ltd, and has a joint venture with
Bank of Baroda and Indian Overseas
Bank called India International Bank

Notice
Malaysia Berhad in Kuala Lumpur
(Malaysia). The foreign branches
Agriculture experienced a 43.55% growth in the
gross advance portfolio and a 7.46%
Agriculture lending remains a top priority for Union Bank of India. As of March
growth in operating profit during
31, 2023, agriculture advances accounted for 17.77% of your Bank’s gross
FY2023.
advances. Your Bank’s performance in the agriculture priority sector surpassed
the statutory target, reaching 18.97%. Additionally, your Bank sold a surplus of
` 15,450 crore under the PSLC-Small & Marginal Farmer category. Treasury Operations
Union Bank of India’s treasury
operations focuses on prudent

Statutory Reports
Agriculture lending remains a priority for Union Bank, achieving liquidity management to generate
a remarkable 14.20% year-on-year growth. With a strong optimal profit while managing credit,
market, and liquidity risks according
commitment to supporting farmers and rural communities, our
to policy guidelines. Your Bank aims
outstanding agriculture advances reached ` 1,51,993 crore, to improve cash management through
exceeding the statutory target. We issued 4.11 lakh fresh Kisan short-term money market instruments
Credit Cards, empowering small and marginal farmers and driving and forex market activities. By
maintaining a well-balanced SLR
growth in the agriculture priority sector.
(Statutory Liquidity Ratio) and a non-
SLR investment book with appropriate

Financial Statements
In FY2023, Union Bank registered a year-on-year growth of 14.20% in agriculture M-duration, your Bank aims to
lending, with an outstanding amount of ` 1,51,993 crore as of March 31, enhance profitability and conserve
2023. Notably, credit to small and marginal farmers stood at ` 95,171 crore, capital. During FY2023, the treasury
accounting for 13.33% of the Adjusted Net Bank Credit (ANBC) against a department achieved the targets for
benchmark of 9.50% of ANBC. Your Bank issued 4.11 lakh fresh Kisan Credit interest income, profit on the sale of
Cards, totalling ` 6,896.45 crore during the fiscal year. investments, and exchange profit.

Priority Sector Advances

Union Bank of India is committed to providing credit facilities to underserved
segments of society. Your Bank’s priority sector advances reached ` 3,02,006
crore as of March 31, 2023. This achievement accounts for 42.31% of the
Adjusted Net Bank Credit (ANBC) for the quarter, surpassing the statutory target
of 40% after excluding PSLC sales and including investments in RIDF/SIDBI/
MUDRA/NHB.
 Integrated Annual Report
70 2022-23

Strengthening Financial Capital

A Bedrock of
Sustainability and
Digital Advancement
In alignment with our theme, “Committed
» UNSDGs: to Sustainability, Driven by Digital
Prowess,” the Union Bank of India is
dedicated to achieving strategic and
resilient growth. Our goal is to uphold
our financial strength and contribute
to India’s pursuit of sustainable
development and digital transformation
in how we deliver banking services.
» Strategy Blueprint:
We are committed to preserving a
robust balance sheet through prudent
capital management and a conservative
approach, to ensure business continuity,
growth, and consistent shareholder
returns. Leveraging advanced
technologies and responsible banking
» Business Model Components: practices, we are creating long-term value
for our stakeholders and fuelling India’s
2 3 8 march towards a sustainable and digitally
empowered future.
» Material Issues:

13, 23, 33, 43

Integrated Annual Report
2022-23 71

Strategy, Model & Capitals

Notice
Statutory Reports
Our strong financial performance in 2023 serves as Banking industry is witnessing a digital transformation,
a crucial foundation for our two primary strategic these investments are vital to adapt to the evolving
commitments: sustainability and digital prowess. Strong landscape and stay competitive. Our rise in Non-
financial performance indicates that we are a healthy and Interest Income demonstrates our capacity to generate
growing organisation. It not only ensures our business revenue from various sources, which can support our
continuity and resilience but also provides the necessary digital transformation, such as investing in artificial
resources to invest in the future. In terms of sustainability, intelligence, blockchain, and cyber security. This digital

Financial Statements
these resources can be used to finance green projects, transformation not only allows us to deliver superior
foster financial inclusion, and support sectors that are customer experiences, but also drives operational
key for sustainable development, such as renewable efficiency through automation and data analytics,
energy and small and medium-sized enterprises (SMEs). creating a virtuous cycle of financial performance
For instance, our improved Net Interest Income can improvement.
be allocated to lend more to environmentally-friendly
initiatives or to provide affordable financial services to Moreover, a robust financial performance, marked by
underserved communities, thereby contributing to our efficient cost and risk management, sends a positive
sustainability goals. signal to all our stakeholders, including customers,
employees, investors, and regulators. It strengthens
Our consistent growth and operational efficiency enable their confidence in our ability to fulfil our sustainability
us to generate higher profits, a part of which can be commitments and successfully navigate the digital
reinvested into cutting-edge digital technologies. As your transition.
 Integrated Annual Report
72 2022-23

Strengthening Financial Capital

A Bedrock of Sustainability and Digital Advancement

Our Financial Performance priorities, proactive balance-sheet management, and

ongoing discipline position us well for the future.
Strategically aligned for Optimal Returns and Long-
Term Value Creation
Strategic planning is a critical aspect of Union Banks’s Transforming to deliver optimal returns
ability to generate sustainable value. The outcomes of Over the course of FY2023, Union Bank has demonstrated
the planning process guide the long-term priorities and a clear and sustainable path to growth, delivering a
investment focus of the Company. The strategic planning Return on Average Assets (ROAA) of 0.69, a marked
process is designed to deliver a shared understanding improvement over an ROAA of 0.47 in FY2022. We aim to
of our vision, objectives, tactics, and target outcomes, continue to develop the diversified business model that
while maintaining risk management excellence and strong we have established, investing in advanced technology
governance mechanisms. That shared understanding and digital capabilities in our consumer businesses,
spans our Board of Directors and management and our delivering sustainable growth across our domestic and
front-line staff, enabling effective governance and clarity of global operations, and play a meaningful part in aiding the
purpose on our strategic priorities. Clearly defined strategic transition to a low-carbon economy.

Key Highlights for FY2023:

Dividend Strong Financial Strong Financial Business Sector-wise
Declaration: Performance: Performance: Growth: Growth:
» The board of » Net Profit increased » CASA deposits have » Total Business » Retail sector growth:
directors have by 61.18% YoY during increased by 4.47% increased by 10.23% 17.19% YoY.
recommended a FY23. YoY. YoY.
» Agriculture sector
dividend of ` 3.00
» Net Interest Income » Total deposits » Gross Advances growth: 14.20% YoY.
per equity share
grew by 17.92% YoY base stands at increased by 13.05%
for the year ended » MSME sector growth:
during FY23. ` 11,17,716 crores YoY.
March 31, 2023. 13.06% YoY.
as of March 31,
» Total Deposit grew by
2023.
8.26% YoY.

1 2 3 4 5

10 9 8 7 6

Green Initiatives: Covid-19 Relief Financial Inclusion Improved Capital Reduction in NPA:
Measures: Schemes: Ratios:
» Renewable Energy » PM SVANidhi: 4,97,793 » New enrollments in » CRAR improved » Gross NPA reduced
Sector: Sanctioned Loans sanctioned PMJJBY scheme: from 14.52% as on by 358 bps YoY to
` 10,370 crores as on totaling ` 625 Crores. 2.82 lakhs. 31.03.2022 to 16.04% 7.53%.
31.03.2023. as on 31.03.2023.
» Union Guaranteed » New enrollments in » Net NPA reduced
» Union Green Miles: Emergency Credit Line PMSBY scheme: 8.24 » CET1 ratio improved by 198 bps YoY to
Sanctioned amount (UGECL): 3,92,038 lakhs. to 12.36% as on 1.70%.
` 215 crores as on Loans sanctioned 31.03.2023 from
» New enrollments in
31.03.2023. totaling ` 16,650 10.63% as on
APY scheme: 2.32
Crores. 31.03.2022.
lakhs.
» Union Nari Shakti
» Accounts opened
Scheme for Women
under PMJDY
Entrepreneurs: 19,637
Scheme: 2.80 Crores.
Applications sanctioned
for ` 2,357 crores
during 12M FY23.
Integrated Annual Report
2022-23 73

Financial Highlights for FY2023

Deposits NNPA

Strategy, Model & Capitals

Operating Profit

8.26% YoY
Deposits Growth
`
25,467 crore 1.70%
Increased by 16.43% YoY. Improved by 198 BPS

RAM Net Profit NIM

14.94% YoY `
8,433 crore 3.07%

Notice
Robust Growth in RAM Advances. Increased by 61.18% YoY. Improved by 198 BPS.

Advances GNPA PCR

13.05% YoY
Consistent & Sustained Credit Growth.
7.53%
Improved by 358 BPS
90.34%
Increased by 673 bps YoY

Statutory Reports
CRAR
Through a consistent story of operational efficiency, our 2023

16.04%
454 bps higher then Minimum Regulatory
financial performance marks an impressive 18.84% YoY rise
in Interest Income, demonstrating our strong interest-earning
Requirement strategies and unwavering financial stability.

Financial Statements
An Overview of Our Financial Capital rate of 7.84%, reflecting our financial stability. On the Profit &
Loss side, Interest Income saw an impressive rise of 18.84%
Our financial capital forms the solid foundation for
YoY, reaching ` 80,743 Crore from ` 67,944 Crore in FY2022.
our operations and investments in sustainability and
This significant increase underscores our improved asset
digital initiatives. This capital, comprising customer
yield and wider interest-earning base. Meanwhile, Interest
deposits, shareholder equity, retained earnings, and
Expenses also grew by 19.47% YoY, reflecting the cost of
external borrowings, among others, supports the Bank’s
our robust deposit growth and our increased borrowings to
strong capital base and ensures consistent returns for
support your Bank’s expansion. Underscoring this, our Net
shareholders.
Interest Income (difference between interest income and
interest expenses) registered a strong increase of 17.92%
Consistent Financial Performance YoY, from ` 27,786 Crore to ` 32,765 Crore, reflecting our
Our financial performance for the year 2023 portrays a successful interest-earning strategies.
Our financial performance for the year 2023 portrays a
compelling story of consistent growth and operational Our Non-Interest Income, including fees, commissions, and
efficiency. Our balance sheet showcases a steady growth gains from foreign currency transactions, saw a healthy rise
 Integrated Annual Report
74 2022-23

Strengthening Financial Capital

A Bedrock of Sustainability and Digital Advancement

12.30% YoY
of 16.83% YoY, strengthening our income base. Despite an á
increase in the total provisions by 2.36% YoY, our Operating
Profit witnessed a robust 16.43% YoY growth. The most
notable highlight from the Profit & Loss statement is our The Growth in Domestic Advances demonstrates the trust and
confidence our customers place in us.
Profit After Tax, which experienced a significant increase
of 61.18% YoY, a testament to our efficient cost and risk
management strategies.

4.47% YoY
á
Robust Liability Management
Robust liability management plays a crucial role in our An increase in CASA deposits reinforces our ability to maintain a
commitment to sustainability. Effective management of stable and low-cost deposit base.
liabilities, including deposits and borrowings, forms the
backbone of our lending capacity. With a growth of 13.05%
YoY in Global Advances, we are able to increase lending
to sectors that are instrumental in driving sustainable
development, such as renewable energy projects, green
infrastructure, and small-scale sustainable enterprises. Accelerated Business Growth
The expansive reach across India, facilitated by our 8580
Our strong growth in Domestic Advances, particularly in
branches and 10,835 ATMs, plays a vital role in fostering
the RAM sectors (Retail, Agriculture, MSME), indicates
sustainability and bolstering our digital capabilities. It
our focus on fostering financial inclusion. By extending
contributes to sustainable economic growth by facilitating
credit to these sectors, we are contributing to job creation,
financial inclusion, allowing us to serve a diverse set
poverty reduction, and economic resilience, which are
of customers across different geographic regions and
key aspects of socio-economic sustainability. A rise in
socio-economic backgrounds. This extensive network
deposits, specifically an 8.26% YoY increase, demonstrates
of branches and ATMs ensures that even those in the
the trust and confidence our customers place in us. It is
remotest parts of the country have access to basic banking
not only a testament to our sound financial management
and financial services, which is a critical element in driving
but also indicates the strength of our relationships with
socio-economic development and poverty reduction.
our customers. As a bank committed to sustainability,
this trust enables us to engage our customers in our
A broad physical presence combined with a robust digital
sustainability agenda, encouraging them to consider
infrastructure creates a hybrid model that caters to all
sustainable investment and saving options, and enabling
customer segments, regardless of their digital proficiency.
us to channel more funds towards sustainable projects.
It ensures that while we progress towards a more digital
future, we do not alienate any section of our customer
Our increased CASA deposits by 4.47% YoY, despite a
base. This, in turn, fosters digital inclusion, a key facet of
slight decrease in the CASA Ratio, underscore our ability
the digital future.
to maintain a stable and low-cost deposit base. This
cost-effective source of funds strengthens our capacity
The 10.23% YoY increase in the total business of your
to provide affordable financial services, which is critical
Bank indicates a strong relationship with our customer
for promoting financial inclusion and socio-economic
base and successful engagement strategies. It reflects our
sustainability.
ability to understand and fulfil the diverse financial needs
of our customers, thereby contributing to their economic
Furthermore, robust liability management enhances our
well-being and the sustainable growth of the economy as
financial resilience and ability to withstand economic
a whole.
shocks. This resilience is key to ensuring our long-term
contribution to sustainable development and maintaining
The growth of Gross Advances by 13.05% YoY signifies
our operations in a manner that respects the environment,
our strong position to support sustainable initiatives.
supports social development, and upholds strong
It enhances our capacity to finance green projects and
governance practices.
contribute to sustainable sectors of the economy. The
growth in Total Deposits by 8.26% YoY, on the other hand,
Integrated Annual Report
2022-23 75

14.94% YoY
indicates our strength in attracting and retaining customer á
funds, thus enhancing our resilience and capacity to
support sustainable economic growth over the long term.
Growth in RAM advances highlights Union Bank’s commitment to
financing the Retail, Agri, and MSME sectors, driving inclusive and
Commitment to the RAM Segment

Strategy, Model & Capitals

sustainable growth in the Indian economy.
Our demonstrated commitment to the Retail, Agri, and
MSME (RAM) segment contributes significantly to our
sustainability efforts and digital capabilities. The robust
14.94% YoY growth in RAM advances showcases our
active role in financing sectors that are not just pivotal to
the Indian economy, but also key to promoting inclusive
55.61%
RAM advances, as a percentage of Domestic Advances,
and sustainable growth. demonstrates our dedication towards empowering these critical
sectors and signify a balanced approach to lending.

The retail segment often encompasses a broad range

of individuals and families who benefit from our diverse

Notice
suite of financial products and services. By supporting
this sector, we are helping to improve financial literacy,
promote savings, and support the economic aspirations
Significant Improvement in Asset Quality
of individuals, thereby contributing to broader social and Perhaps one of the most impressive metrics is our
economic sustainability. significant improvement in asset quality. Our Gross
NPA (Non-Performing Assets) saw a notable reduction
The agricultural sector is crucial to India’s economy, of 23.37% YoY, while our Net NPA decreased by a
contributing significantly to GDP and employment. Our massive 46.81% YoY, demonstrating our commitment to
active support for this sector helps to ensure food security, maintaining high-quality assets and adopting stringent
rural development, and sustainable management of natural risk management practices. This is indicative of our
resources. By providing financial services to this sector, proactive and prudent approach to risk management. This

Statutory Reports
we are playing a pivotal role in transforming traditional reduction represents a successful strategy for monitoring,
agricultural practices into more sustainable ones, thus managing, and minimizing risk-associated lending, and it
contributing to environmental sustainability. suggests a comprehensive evaluation of credit risks before
sanctioning loans. The drop in NPAs (Non-Performing
The growth in advances to the MSME sector underscores Assets) is not only a positive sign of sustainable lending
our commitment to promoting entrepreneurship and job practices but also reflects an improved recovery and
creation, key components of economic sustainability. follow-up mechanism. A lower NPA ratio means your Bank
MSMEs are the backbone of the Indian economy, providing has a healthier portfolio, ensuring financial sustainability
large-scale employment and contributing significantly and lending capabilities in the long run.

Financial Statements
to India’s GDP. By providing the necessary financial
support to MSMEs, we are contributing to the growth and
sustainability of this sector, which has a multiplier effect on Increased Provision Coverage Ratio (PCR) by
the overall economy. 673 basis points to 90.34% reflects Union Bank’s
prudent approach to risk management, providing
Digitally, serving the RAM sector also necessitates the
development and utilization of technologies that can reach a safety net against potential losses and
these diverse and sometimes remote customers. This reinforcing fiscal responsibility.
could include digital lending platforms, mobile banking
applications, and digital payment solutions that can
provide these customers with the financial services they Moreover, the increase in our Provision Coverage
need, promoting digital inclusion and improving our digital Ratio (PCR) by 673 basis points to 90.34% reinforces
capabilities. The fact that RAM advances, as a percentage this prudent risk management approach. A high PCR
of Domestic Advances, stood at 55.61% demonstrates our demonstrates our readiness to absorb potential losses
dedication towards empowering these critical sectors and from non-performing assets, providing a safety net for
signifies a balanced approach to lending. uncertain times and demonstrating fiscal responsibility.
 Integrated Annual Report
76 2022-23

Strengthening Financial Capital

A Bedrock of Sustainability and Digital Advancement

It is an important indicator that we have prepared capital base. CET1 capital includes ordinary shares and
for potential risks in the future, a critical aspect of retained earnings, which are the most liquid forms of
sustainability. capital and can be used to absorb losses. An improved
CET1 ratio reflects your Bank’s commitment to building
From a digital perspective, improving asset quality and maintaining a solid capital buffer, which is crucial for
also requires efficient data management and analytics, sustainable banking operations.
automation in the risk assessment process, and digital
platforms to monitor and control NPAs. This focus Enhanced Shareholder Returns
on digital tools to manage and improve asset quality
The financial indicators Return on Assets (ROA) and
ultimately strengthens our overall digital prowess, playing a
Return on Equity (ROE) are both vital measures of
pivotal role in sustainable banking in the digital era.
financial performance and efficiency, and their increase
signifies your Bank’s growing profitability and successful
management strategies. The improvement in ROA from

46.81% YoY
0.47% in FY2022 to 0.69% in FY23 is significant as it shows
your Bank’s efficiency in utilizing its assets to generate
income. A higher ROA suggests that your Bank is more
The decrease in Net NPA demonstrates Union Bank’s commitment
effectively allocating and using its resources to generate
to high-quality assets and stringent risk management practices,
ensuring sustainable lending and long-term financial stability. profits, an essential factor for sustainability as it indicates
your Bank’s ability to make profitable investments and to
return value to shareholders.

Strengthening Capital Ratios The improvement in Return on Assets (ROA) from

The strengthening of capital ratios, as shown by the 0.47% to 0.69% reflects Union Bank’s efforts to
improvement in Capital to Risk-Weighted Assets Ratio optimize asset utilization and generate income,
(CRAR) from 14.52% to 16.04% and Common Equity Tier
demonstrating effective resource allocation and
1 (CET1) ratio from 10.63% to 12.36%, is a key indicator of
financial sustainability and resilience. a focus on profitable investments for sustainable
growth.
A higher CRAR indicates that your Bank has a cushion to
absorb a higher level of losses before becoming insolvent,
thus ensuring your Bank’s sustainability over the long run. Moreover, the ROE saw an increase from 10.11% in
The increase in CRAR also demonstrates that your Bank FY2022 to 13.26% in FY23, indicating that your Bank is
has robust capital adequacy, a fundamental aspect of delivering a higher return on the money that shareholders
a bank’s financial health. This improved ratio indicates have invested. An increased ROE is a positive indicator
that your Bank is well-capitalized and better prepared to for shareholders. It shows your Bank’s effectiveness in
withstand financial distress or economic downturns. using equity investments to fund operations and grow the
business, making it an attractive investment proposition.
Further demonstrating your Bank’s financial robustness
Improvement in Capital to Risk-Weighted Assets and commitment to rewarding its shareholders, the board
of directors has recommended a dividend of ` 3.00 per
Ratio (CRAR) from 14.52% to 16.04% showcases
equity share (30%) for the year ended March 31, 2023. This
Union Bank’s financial sustainability and decision showcases not only your Bank’s profitability but
resilience, providing a cushion to absorb losses also its confidence in its sustained growth and stability.
and indicating strong capital adequacy.
For your Bank’s digital prowess, the increased profitability
and efficient use of resources could provide more
Simultaneously, the increase in the CET1 ratio, which opportunities for investment in digital infrastructure,
measures a bank’s core capital against its total risk- services, and technologies, thus strengthening its position
weighted assets, shows that your Bank has a solid in a digitally oriented banking landscape.
Integrated Annual Report
2022-23 77

Key Summary of Results

In ` Crore FY2022 FY2023 YoY%
Profit & Loss

Strategy, Model & Capitals

Interest Income 67,944 80,743 18.84
Interest Expenses 40,157 47,978 19.47
Net Interest Income 27,786 32,765 17.92
Non-Interest Income 12,525 14,633 16.83
NIM % 2.94 3.07 13 bps
Operating Profit 21,873 25,467 16.43
Total Provisions 16,641 17,034 2.36
Profit After Tax 5,232 8,433 61.18

Notice
Balance Sheet
Global Advances 7,16,408 8,09,905 13.05
Domestic Advances 6,99,269 7,85,302 12.30
W/w Retail 1,36,273 1,59,702 17.19
Agriculture 1,33,092 1,51,993 14.20
MSME 1,10,577 1,25,022 13.06
RAM advances 3,79,942 4,36,717 14.94

Statutory Reports
Deposits 10,32,392 11,17,716 8.26
W/w CASA 3,77,193 3,94,055 4.47
Retail Term Deposits (<2 Crs) 4,43,752 4,38,280 -1.23
CASA Ratio (%) 36.54 35.26 -128 bps
GNPA 79,587 60,987 -23.37
NNPA 24,303 12,928 -46.80

Ratios (%) FY2022 FY2023 YoY/bps

Financial Statements
Asset Quality
GNPA 11.11 7.53 -358
NNPA 3.68 1.70 -198
PCR 83.61 90.34 673
TPCR 69.46 78.80 934
Credit Cost 1.74 1.64 -10

Capital Ratios
CET-1 ratio 10.63 12.36 173
Tier-1 ratio 12.20 13.91 171
CRAR 14.52 16.04 152
 Integrated Annual Report
78 2022-23

Strengthening Financial Capital

A Bedrock of Sustainability and Digital Advancement

Performance trends over 3 Years

Interest Income / Non-interest Income / Gross (Operating)

Average Working Funds AWF profit / AWF

6.6
6.34 1.2
6.11 2.08
1.13 1.97
1.05
1.78

FY2021 FY2022 FY2023 FY2021 FY2022 FY2023 FY2021 FY2022 FY2023

Interest Expenses / Operating Expense / Return on Average Net

AWF AWF Worth

4.06 1.79 14.62

3.92
1.66
3.61
1.55

10.98

7.06

FY2021 FY2022 FY2023 FY2021 FY2022 FY2023 FY2021 FY2022 FY2023

Interest Spread / AWF Cost Income Ratio Return on Terminal

Assets
46.02 45.74 46.27
2.68 0.66
2.5
2.28

0.44

0.27

FY2021 FY2022 FY2023 FY2021 FY2022 FY2023 FY2021 FY2022 FY2023

Integrated Annual Report
2022-23 79

Strategy, Model & Capitals

Dividend Payout ratio to
Demonstrating our financial Return on Average
Net profit (incl.
Assets
efficacy, the rise in ROA Corporate Dividend
Tax)
from 0.47% to 0.69% 0.69

and ROE from 10.11% to 24.82% 24.31%

13.26% underscores Union 0.47

Bank’s commitment to
optimizing asset utilization, 0.27
maximizing shareholder

Notice
returns, and investing for
sustainable growth.
FY2021 FY2022 FY2023 FY2022 FY2023

Capital Adequacy Ratio Yield on Advances Credit Deposit Ratio

(Basel III)
73.74
71.06 69.6
16.04 7.68
7.21 7.14
14.52

Statutory Reports
12.56

FY2021 FY2022 FY2023 FY2021 FY2022 FY2023 FY2021 FY2022 FY2023

Financial Statements
Cost of Deposits Tier I Tier II

4.66 2.32
4.37 13.91 2.21
2.13
4.12
12.2

10.35

FY2021 FY2022 FY2023 FY2021 FY2022 FY2023 FY2021 FY2022 FY2023

 Integrated Annual Report
80 2022-23

Strengthening Financial Capital

A Bedrock of Sustainability and Digital Advancement

Key take-home points for FY2023

» Our Global Business grew » Yield on Advances rose to 7.68% for FY 2022-23,
responsibly to ` 19,27,621 Cr by showing the result of our prudent lending strategies.
the end of FY 2022-23, up from
` 17,48,800 Cr in the previous » We made significant strides in reducing our GNPA
fiscal year. ratio to 7.53 %, improving from 11.11% in the
previous year.
» We achieved an impressive Total
Global Deposit growth, ending at » Our Net NPA ratio also improved to 1.70 %,
` 11,17,716 Cr. demonstrating our robust risk management.

» Our Global Gross Advances » We increased our Provision Coverage Ratio to

reached ` 809905 Cr, reflecting 90.34%, providing a stronger safety net against
our comprehensive and inclusive potential losses.
financial services.
» Our Capital to Risk (Weighted) Assets Ratio (CRAR)
» We saw a surge in CASA Deposits, under Basel III stood at 16.04 %, showing our strong
reaching ` 3,94,055 Cr by the end capital base and surpassing the minimum regulatory
of FY 2022-23. requirement. We also maintained Tier 1 and CET 1
capital ratios at 13.91% and 12.36% respectively.
» Our commitment to customer-
centric services contributed to an
improved Net Interest Income of
` 32,765.35 Cr for FY 2022-23.

» Our careful and strategic approach

resulted in a Global Net Interest
Margin (NIM) of 3.07%, while the
Domestic NIM stood at 2.95%.

» We generated Other Income of

` 14,633 Cr, evidencing our
diversified revenue streams.

» Our efficient practices led to an

Operating Profit of ` 25,467 Cr in
FY 2022-23, an increase from
` 21,873 Cr in FY 2021-22.

» We effectively managed our Financial statements as contained in the Annual Report

Cost to Income ratio at 46.27%, 2021-22 of the Bank have been awarded Gold Shield in the
reflecting our focus on operational category “ Public Sector Banks” by the Institute of Chartered
efficiency. Accountants of India for excellence in Financial Reporting.
Integrated Annual Report
2022-23 81

Productivity trends over 3 Years

Strategy, Model & Capitals

Employees (number) Branches (number) Business per employee
(` Cr)*
9315
78202 8792 23.14
75594 8580
75201
20.48
19.23

Notice
FY2021 FY2022 FY2023 FY2021 FY2022 FY2023 FY2021 FY2022 FY2023

Gross profit per Net Profit per Business per Branch

employee (` in lacs) employee (` in lacs) (` in crore)*
11.16

33.69
203.87

29.09
175.18

Statutory Reports
25.15 161.41
6.96

3.72

FY2021 FY2022 FY2023 FY2021 FY2022 FY2023 FY2021 FY2022 FY2023

Financial Statements
Gross profit per branch Net profit per branch Earning per share (in `) Book value per Share
(` crore) (` crore) (in `)
93.05
12.34
2.97
0.98
75.74
2.49
67.91
2.11
7.73
0.6

4.54
0.31

FY2021 FY2022 FY2023 FY2021 FY2022 FY2023 FY2021 FY2022 FY2023 FY2021 FY2022 FY2023
 Integrated Annual Report
82 2022-23

Energised Intellectual Capital

Committed to
Sustainability, Driven
by Digital Prowess
Integrated Annual Report
2022-23 83

» UNSDGs: » Strategy Blueprint: » Business Model Components:

1 6 8

Strategy, Model & Capitals

» Material Issues:

11, 12, 13, 19, 29, 43

Notice
Union Bank of India’s commitment to harnessing intellectual
capital through technology-driven initiatives strengthens our
position in digital banking. Our investment in cutting-edge
solutions, collaboration with industry stakeholders, and focus
on emerging technologies position us to create sustainable
value for our stakeholders while propelling India’s digital and

Statutory Reports
sustainable transformation journey. We are dedicated to
providing exceptional digital experiences and remaining
at the forefront of technological advancements in the
banking industry.

Information Technology and Digital Transformation

Union Bank of India, as a leading public sector bank, embraces the
latest technology to establish itself as a next-generation digital-savvy

Financial Statements
institution. Our robust IT systems enable us to provide IT-driven,
convenient, and adaptable banking products and services, placing
technology at the core of our operations.

At Union Bank of India, we are committed to customer-centric, inclusive,

responsive, and responsible banking. To achieve this, we have launched
various new-age initiatives and adopted cutting-edge technologies such
as Augmented Reality/Virtual Reality (AR/VR), Artificial Intelligence/
Machine Learning (AI/ML), Natural Language Processing (NLP), and
Blockchain. These transformative measures ensure high-performance
access to business systems and cloud-based applications while
complying with regulatory norms without compromising security.
 Integrated Annual Report
84 2022-23

Energised Intellectual Capital

Committed to Sustainability, Driven by Digital Prowess

We have invested in infrastructure, technology

platforms, and digital applications to enhance the
banking experience for our customers. Integration
of core banking applications with internet banking,
mobile banking, ATMs, and electronic payment
systems has allowed us to offer a wide range of
value-added services. Our platforms, including
Tabulous Banking, Talking ATMs, and multi-
function Sampurna ATMs, facilitate services
such as mobile top-up, e-cash remittance, direct
tax payment, interbank mobile payment service
remittance, NEFT, and mutual funds payments.

Language Accessibility:

Mobile Banking: 13 Call centre:11

Internet Banking: 2 SMS Facility: 13
Number of languages in which banking services are available, including
digital platforms, call centers, and communication channels.

Intellectual Capital Initiatives:

136 Training programs by Union Learning Academies;

Awards and Recognitions:
7 overseas programs;

106
172 Inland External training programs;
1461 internal training programs;
Number of prestigious awards received for official language Number of intellectual capital initiatives implemented, such as training
implementation, and publications. programs, webinars, and knowledge-sharing platforms.

Employee Participation: Multilingual Publications:

6,307
Number of staff members participating in Hindi competitions and winning
131
Number of publications released in different languages, promoting cultural
individual prizes. understanding and inclusivity.

Customer Engagement: Digital Adoption:

1.26 crore
Number of customers reached through awareness campaigns on
Mobile Banking: 29.09%
Internet Banking: 6.84%
Growth in the number of users and transactions conducted through digital
cybersecurity. channels, such as mobile banking and internet banking.
Integrated Annual Report
2022-23 85

Leveraging Emerging and Future We are harnessing the power of emerging

Technologies technologies like AI, Blockchain, and the
Union Bank of India continues to adopt advanced Metaverse, driving future growth and delivering
technology solutions to deliver a seamless digital

Strategy, Model & Capitals

an unparalleled digital banking experience. Our
experience to our customers. These include personalized
video-based solutions, WhatsApp Banking, Palm Banking, relentless innovation signifies our commitment to
Video KYC solutions, and Microservices Architecture for India’s digital transformation and our customers’
container-based cloud-ready applications. We prioritize evolving needs.
regulatory compliance and security in all our technology
implementations.

The Bank actively collaborates with key stakeholders in

the technology domain to drive innovation and contribute Digital Leadership Achievements
to India’s digital transformation. We are working closely
Union Bank of India has achieved several milestones

Notice
with the RBI IT Innovation Hub on Digital Ledger-based
in digital adoption, reinforcing our position as a
Blockchain Technology and have been selected for a pilot
trailblazer in the industry:
on Central Bank Digital Currency (CBDC). Moreover, we
pioneer the Account Aggregator platform and actively » First public sector bank (PSB) to go live on the
integrate with the Open Network for Digital Commerce account aggregator ecosystem.
(ONDC) and Open Credit Enablement Network (OCEN)
» First PSB to achieve triple ISO certifications: ISO
for Digital Lending. Artificial Intelligence (AI)-based
27001:2013 (Information Security Management
conversational banking through Amazon Alexa and
System), ISO 22301:2019 (Business Continuity
Google Assistant Voice Bots further enhances customer
Management System), and ISO 31000:2018 (IT
experience and convenience.
Risk Management).

Statutory Reports
The Bank embraces emerging technologies to drive » First PSB to implement end-to-end auto-renewals
future growth and innovation. We explore solutions, form of MSME loans up to ₹1 million.
fintech partnerships, and leverage technologies such as
» First PSB to implement multi-language support in
AI/ML, 5G, Blockchain, Metaverse, and DevSecOps. Our
Finacle, mobile banking applications, and SMS.
Analytics Centre of Excellence (ACOE) utilizes a Data Lake
to analyze customer data and preferences, enhancing our » Ranked 2nd in ATM Switch Processing among all
understanding and delivering personalized services. banks across the country.
» Average monthly CBS transactions exceed 194
Union Bank of India’s strategic focus on the future includes
crores, with a 20% increase in daily average
initiatives such as hosting Cloud Native Applications on a
transaction volume in the last six months.

Financial Statements
Hybrid Cloud to enable swift digital resource deployment,
integrating AI and Virtual Reality (VR) for immersive » Average system uptime of 99.97%, aligning with
banking experiences, leveraging the Internet of Things best-in-class standards under EASE 4.0.
(IoT) and connected devices for banking services,
» First bank in India to introduce Metaverse in
implementing robust security and fraud prevention
banking.
measures to safeguard customer information, establishing
a Microservices-based Omni-Channel Platform for a » Achieved prestigious PCI-DSS (Payment Card
unified customer experience across multiple channels, and Industry – Data Security Standard) certification
adopting new practices like DevOps tools for continuous covering all payment systems and processes
development, integration, and deployment of in-house dealing with cards.
projects and application modernization. » Introduction of innovative solutions like
WhatsApp Banking, Voice Banking, Open Banking
Architecture, Digital Platform, Straight Through
Processing (STP), Robotic Process Automation
(RPA), and Pre-Approved Personal Loans (PAPL).
 Integrated Annual Report
86 2022-23

Energised Intellectual Capital

Committed to Sustainability, Driven by Digital Prowess

Digital Initiatives Taken in FY2023 Account Aggregator ecosystem showcase the bank’s
commitment to digital innovation.
The various digital initiatives taken by Union Bank of
India in FY2023 highlight the bank’s commitment to
technological advancements, customer-centricity, and
innovation in the banking industry. The recognition
received, such as the 1st rank in EASE 5.0 Reforms Index
and the Best Fintech Collaboration Special Prize, further
validate the bank’s efforts in the digital domain. Under the
umbrella of digital transformation, Union Bank of India
has undertaken several innovative initiatives aimed at
enhancing customer experience, increasing efficiency, and
embracing emerging technologies. These initiatives can be
categorized into the following key areas:

1. Video KYC: Video KYC, as defined by the RBI, enables

seamless and secure customer identification through
live audio-visual interactions. Union Bank of India has
made Video KYC live for all DBUs, 3 FGMOs, and five
regions. This initiative has resulted in the opening
of over 4,000 accounts through Video KYC, with a
dedicated Video KYC Cell set up in Lucknow.

2. UVConn 2.0: UVConn is a digital platform that

leverages WhatsApp Messenger to provide basic
inquiries and services to customers. Currently
available in 7 languages, UVConn offers features
such as account balance inquiries, mini statements,
cheque status checks, chequebook requests, locker
rent inquiries, and more. Over 10 lakh users have been 5. Digital Lending & Review/Renewal Journeys: Union
onboarded on UVConn, with over 45 lakh customer Bank of India has introduced digital lending journeys
inquiries triggered through the platform. covering various assets and liability products.
These journeys enable digital sanctioning, renewal,
3. Your Bank has implemented various projects
and review of accounts, resulting in over 7.68 lakh
to streamline processes and improve customer
accounts being processed digitally. Notable digital
service. These projects include e-nomination, the
lending journeys implemented include Mudra Kishor
establishment of Digital Banking Units (DBUs) at
STP, Mudra Tarun STP, education loans, fresh KCC
7 locations, the implementation of Positive Pay for
loans, loans against deposits (LAD), and more.
cheque reconfirmation, simplified and instant DEMAT
account opening, and the revamping of the chatbot for
enhanced customer interaction.

4. Your Bank has launched Project Sambhav, a

comprehensive digital transformation initiative aimed
at building a digital bank within the bank. This project
includes the launch of the Vyom App, which offers
over 350 features and an explorative UI/UX design
to enhance customer engagement. Your Bank has
also partnered with over 90 fintechs to accelerate the
rollout of digital products and services. Additionally,
initiatives such as digital solutions for mutual fund
and insurance businesses, CRM solutions for unified
customer experience, and integration with the
Integrated Annual Report
2022-23 87

6. Central Bank Digital Currency: Union Bank of India experiences, the establishment of ecosystem
has been nominated by the Reserve Bank of India to partnerships, the development of a digital platform
participate in the Central Bank Digital Currency - Retail with cloud-ready architecture, and the implementation
and Central Bank Digital Currency -Wholesale projects. of data and analytics platform services. Collaboration
Your Bank has made the CBDC-R application live for with fintechs is also a key aspect of Project Sambhav

Strategy, Model & Capitals

Android users under a closed user group.. to offer new digital products.

7. FinTech & Ecosystem Partnerships: Your Bank

10. Introduction of “Uni-verse” - a Virtual Lounge based
has actively engaged with fintechs and forged
on Metaverse
partnerships to leverage their solutions for building
Union Bank of India is the first Bank to launch
customer digital journeys. Over 150 fintechs
Metaverse in India. These Virtual Lounge feature:
have been engaged, with more than 90 fintechs
empanelled. These collaborations have facilitated the » Digital Avatars
implementation of digital solutions in segments such
» User Interactive Digital Screens with Product
as agriculture, retail, and MSMEs.
Creatives

Notice
8. Digital Banking Units: Union Bank of India has
» Digital Displays with Product Videos
established 7 Digital Banking Units (DBUs) equipped
with smart capabilities such as interactive tablets, » Digital Wall - Video about “Journey of Union Bank of
multi-functional kiosks, ATMs, video KYC apparatus, India” and other creatives
and Metaverse technology. These DBUs aim to » Customers can Navigate through the Lounge with
increase digital penetration and provide cost-effective, both VR and non-VR Enabled environments
convenient access to financial services.
» Holographic Floating Menu about New Products
and others.
» “Spin a Wheel” Contest

Statutory Reports
» Metaverse 2.0- For creating immersive customer
experiences platforms, higher user engagement,
Seamless Banking Solutions, and positive brand
communication. 100,000+ hits till date and balance
enquiry mini statement facility has been enabled.

Financial Statements

Cybersecurity
Union Bank of India recognizes the significance of
cybersecurity as a critical aspect of its operations and its
9. Project Sambhav: Implementation of Digital Business commitment to safeguarding stakeholder interests in the
Platform: Under Project Sambhav, Union Bank of digital landscape. Your Bank has proactively established
India has designed a digital strategy aligned with its a strong cybersecurity culture to enhance digital trust
business vision. This strategy includes the upgradation among stakeholders. A dedicated Cybersecurity Centre
of the Vyom app to provide seamless omnichannel of Excellence (CCoE) has been set up at the bank’s
 Integrated Annual Report
88 2022-23

Energised Intellectual Capital

Committed to Sustainability, Driven by Digital Prowess

premises in Hyderabad. The CCoE collaborates with mascots named “U Su`Ksha” and “U `Kshak” have been
external institutes, such as the Centre for Development introduced to personalize and promote educational
of Advanced Computing (CDAC) and the Cyber Security cybersecurity safety tips. Your Bank has also appointed
Centre of Excellence, Department of IT & Electronics, Digital Ambassadors in branches to spread cybersecurity
Government of West Bengal (WB-CS-CoE), to conduct awareness at the grassroots level.
cybersecurity awareness webinars and training sessions
for stakeholders. In alignment with national and international practices,
Union Bank of India actively participates in initiatives
Your Bank has implemented a 24x7 Cyber Security like the Ministry of Home Affairs’ Cyber Jaagrookta
Operation Centre (C-SOC) with a skilled team to identify and Diwas (CJD) and the National Cybersecurity Awareness
prevent cyber threats. The C-SOC closely monitors critical Month (NCSAM). These initiatives involve activities
business applications and employs a “Security by design” such as sending cybersecurity emails to customers,
approach to strengthen the bank’s cybersecurity posture. sharing creatives on social media, hosting webinars with
Union Bank of India follows a “Defence in depth” strategy, cybersecurity experts, and raising awareness on reporting
deploying multi-layered security architecture, including cybercrime through the National Cyber Crime portal.
perimeter security, network security, application security,
endpoint security, identity and access management, threat To strengthen the cybersecurity culture among staff
intelligence, and data security. Your Bank’s Cybersecurity members, your Bank conducts town hall meetings, provides
Centre of Excellence conducts regular vulnerability daily emails with cybersecurity tips, and offers interactive
assessments, penetration testing, and red-teaming exercises puzzles and crosswords. Your Bank also publishes internal
to identify and mitigate risks to its IT infrastructure. booklets and news snippets to keep employees updated on
the latest cybersecurity trends. Regular phishing simulation
To promote cybersecurity awareness, Union Bank of India exercises and an online cybersecurity self-risk assessment
has developed a Comprehensive Cybersecurity Awareness program called “My Cyber Hygiene” help identify areas for
Programme (CCSAP) for both customers and employees. improvement and provide additional training opportunities.
Your Bank conducts awareness campaigns through Additionally, your Bank has implemented a Cybersecurity
various channels, including SMS, emails, ATMs, branch Executive Development Program (CSEDP) to certify senior
displays, social media, and its website. Cybersecurity management in IT and cybersecurity.
Integrated Annual Report
2022-23 89

Union Bank of India has taken comprehensive measures Additionally, your Bank was honoured as the Runner-Up
to ensure state-of-the-art cybersecurity technologies for the Best AI and ML Bank at the 18th IBA Technology
are in place. Your Bank has harmonized its policies and Conference, Expo & Awards.
action plans with Digital Payment Security Controls,
ISO certifications for information security management Official Language & Publications:

Strategy, Model & Capitals

systems, business continuity management systems, and
PCI-DSS certification for card payment systems. A robust
Rajbhasha
cybersecurity governance structure, including policies, Union Bank of India recognizes the significance of
procedures, guidelines, and committees, is established at intellectual capital in fostering a strong organizational
both the executive and board levels. culture. As part of its commitment to intellectual capital,
your Bank places great importance on promoting the
use of the official language and has been recognized
Data Analytics Centre for its exceptional performance in official language
Union Bank of India recognizes the transformative power implementation. These initiatives contribute to the
of data analytics and has embarked on a journey to bank’s overall intellectual capital by fostering effective
enhance its data culture and competencies. Your Bank

Notice
communication, inclusivity, and cultural understanding.
has established an Analytics Centre of Excellence (ACoE)
that collaborates across business verticals to develop Union Bank has received 18 prestigious Kshetriya
customized use cases and dashboards. A dedicated policy Rajbhasha Puraskars from the Department of Official
for the ACoE has been formulated to ensure the effective Language, Ministry of Home Affairs, Government of India,
use of analytics within the bank. in various regions and FGMOs. Your Bank’s dedication to
official language implementation is further exemplified
Your Bank leverages analytics in various areas to drive by the 85 Shields it has received for outstanding
value and improve customer experiences. In digital lending, performance from different TOLICs (Town Official
analytics is used to understand customer behaviour Language Implementation Committees) across the
and account information, enabling your Bank to offer country. Moreover, the bank’s staff members have achieved

Statutory Reports
pre-approved personal loans through seamless digital remarkable success, winning a total of 183 individual
journeys. Analytics also plays a crucial role in fraud prizes in various Hindi competitions, demonstrating their
detection, as real-time monitoring helps identify unusual linguistic skills and promoting the bank’s intellectual
transaction patterns that could indicate potential fraud. capital.

Operations benefit from analytics as well, with your Bank In line with its commitment to linguistic accessibility, Union
utilizing machine learning models to identify customer churn Bank ensures that its services are available in multiple
in the CASA segment and recommend appropriate actions languages. The digital KCC STP is offered in Hindi and
for customer retention. In marketing and sales, analytics- Kannada, and the SMS facility is provided in 13 languages,
generated leads assist your Bank in identifying potential ensuring effective communication with customers. Your

Financial Statements
customers, offering personalized products and services, and Bank’s call centre also supports 11 Indian languages,
enhancing overall customer satisfaction. Risk management allowing customers to interact in their preferred language.
is another area where analytics is utilized to identify, Additionally, the mobile banking application, ‘VYOM,’ is
measure, and manage risks across the bank, including available in 12 Indian languages, enabling a seamless and
predicting loan defaults and identifying potential NPAs. inclusive digital banking experience.

Your Bank has also developed visual dashboards to track Union Bank’s commitment to intellectual capital extends to
performance in key areas such as the CASA, retail loans, its publications. The quarterly bilingual corporate in-house
and MSME loans portfolios, enabling effective monitoring journal, ‘Union Dhara,’ and the Hindi magazine ‘Union Srijan’
and comparison with peer banks in the market. have received prestigious accolades, such as the PRCI
Gold award for ‘Best in-House Magazine’ and the Ashirwad
Union Bank of India’s efforts in data analytics have been Award. These publications contribute to the intellectual
recognized with accolades. Your Bank achieved the first capital of your Bank by disseminating valuable knowledge,
rank under the EASE 5.0 framework for the Big Data and insights, and updates to its stakeholders.
Analytics theme consecutively in Q2 and Q3 of FY 2022-23.
 Integrated Annual Report
90 2022-23

Nurturing Natural Capital

Union Bank’s
Commitment to
Environmental
Stewardship
Union Bank of India is committed to addressing
» UNSDGs: climate change and accelerating the transition
to a low-carbon economy. With a vision of
achieving net-zero emissions by 2070 and
aligning its financing portfolio with the goals of
the Paris Climate Agreement, your Bank actively
oversees social and environmental matters
through dedicated committees. By integrating
environmental sustainability into its business
» Strategy Blueprint:
strategy, Union Bank supports the development
of green technologies, offers sustainable finance
solutions, and strives to meet the evolving needs
of its customers. Your Bank ‘s achievements in
sustainable finance, including surpassing targets
» Business Model Components:
in renewable energy lending, reflect its dedication
3 to a cleaner and greener future..

» Material Issues:

1, 3, 4, 6, 8, 9, 26, 27, 28,

30, 32, 33.
Integrated Annual Report
2022-23 91

Strategy, Model & Capitals

Notice
Statutory Reports
Climate Strategy
As the impacts of climate change continue to be felt The Board directly supervises social and
around the world, we are observing significant changes environmental matters, including climate change.
emerge in the way many of our customers do business. The Board recognised that Union Bank can, and
These changes are driving a larger economic shift as the should, make a real contribution to tackling climate
push towards decarbonization accelerates. For many, it is change and help to accelerate the transition to a
no longer about whether this change will happen but how low-carbon economy.
quickly it will transpire.

Financial Statements

Supporting a Managing climate- Reducing our

sustainable transition related risks environmental footprint
by helping our customers and facing our Company, including through renewable energy, energy
communities prepare for climate those related to physical and efficiency and other operational
related risks and opportunties. transition risks. improvements across our enterprise.
 Integrated Annual Report
92 2022-23

Nurturing Natural Capital

Union Bank’s Commitment to Environmental Stewardship

We maintain a steadfast ambition to be net zero by 2070, to be responsible for overseeing the ESG commitments
and our commitment to align our financing portfolio to and implementations of the Ban through the formation
the goals of the Paris Climate Agreement. We aim to align of a dedicated ESG Steering Committee at the Executive
our business strategy to be consistent with and contribute Management Level, constituting of members from the
to individuals’ needs and society’s goals, as expressed Board and the Senior Executive Management team. The
in the Sustainable Development Goals, the Paris Climate ESG Steering Committee will, in turn, form an ESG Cell at
Agreement, and relevant national and regional frameworks. the Bank’s Operational Level, with members within the Bank
with domain expertise and departmental responsibilities
During FY2022, the Board of the Bank decided to entrust for research, goal setting and implementation of various
the Stakeholders Relationship Committee of the Board ESG aspects..

ESG Governance Structure in the Bank

Board of Directors

Risk Management Committee of the Board (RMC) Stakeholders Relationship Committee (SRC)

ESG Related Strategy

Credit Risk Management Asset Liability Committee Operational Risk

Committee (CRMC) (ALCO) Management Committee
(ORMC)
Environmental, Social &
Governance (ESG) Steering
Committee
Risk Related

Other Business & RMD ESG Risk Cell

Control Verticals

Union Bank of India has historically committed to

environmental leadership in the financial services sector.
That commitment is rooted in our desire to build strong
communities, serve our customers well and achieve our
At Union Bank of India, our ambition is clear -
vision to be your Bank people most value and trust. We are
driven by our understanding that integrating environmental net zero by 2070. Through sustainable practices,
sustainability into all aspects of our business creates long- we’re fostering a future that people trust and
term value and strengthens the communities we serve. value, leading the transition towards a more
We recognize the need for financial service providers to
environmentally conscious world.
support the transition toward a more sustainable future.
Banking is key to supporting the development of new
technologies, financing new infrastructure and helping
customers transition their operations.
Integrated Annual Report
2022-23 93

Transition to a Sustainable Future These achievements highlight Union Bank of India’s

commitment to supporting the renewable energy sector
through sustainable finance. By surpassing targets in both
fiscal years, your Bank actively contributes to the nation’s
transition towards a cleaner and greener future.

Strategy, Model & Capitals

Climate Risk

Our business strategy embraces an inclusive,

sustainable path forward. We believe that capital
can be a force for positive change. Our Bank’s
purpose drives our approach to sustainability:
to improve our customers’ lives and our
Union Bank is providing the green and sustainable

Notice
community’s well-being. We intend to identify,
accelerate, and promote the development of finance required to transform the economies we
Union Bank’s climate and sustainable finance serve. Our strategy is underpinned by how we
growth opportunities for our customers and assess and manage our exposure to climate-
clients across all our businesses, products, and related risk. Since 2022, climate risk is being
services. treated as a Principal Risk under Union Bank’s
Enterprise Risk Management Framework.
Financing the Transition Today, Union Bank of India is one of the premier
The transition to a low-carbon economy is today’s
institutions in the Indian Financial sector and

Statutory Reports
defining opportunity for innovation and growth. There is is committed to building a sustainable and
a significant opportunity for Union Bank to play a leading climate-risk-resilient organization. The smooth
role in helping to meet the demand for climate change- integration of ESG factors in Business Strategy,
related financing to support the transition. We are directing
investment into new green technologies and infrastructure
Business Processes, Internal Governance
projects to build up low-carbon capacity and capability. (Business Verticals, Risk Management &
Compliance, and Independent Audit), Policies,
Union Bank is committed to helping our customers and
communities move to a low-carbon, sustainable future
Credit Rating/Assessment, Disclosure framework,
and achieve positive social outcomes. We seek to provide Data Management and Risk culture of the Bank is

Financial Statements
our customers with products and services to help them of prime importance.
meet their evolving needs. We hope to inspire and support
our communities to drive toward more sustainable and
inclusive solutions. We recognize the financial sector plays
a crucial role in making the changes necessary to adapt to
a changing planet and create more resilient communities.

The table below showcases the achievements of Union

Bank of India in sustainable finance targeting the
renewable energy sector:

Sustainable Financial Achievement in Achievement in

Target FY2022 FY2023
Renewable Energy ` 7,164 crore ` 10,370 crore
Sector
 Integrated Annual Report
94 2022-23

Nurturing Natural Capital

Union Bank’s Commitment to Environmental Stewardship

1. Details of greenhouse gas emissions (Scope 1 and Scope 2 emissions) & its intensity

Parameter Unit FY 22-23(Current FY 21-22 (Previous

Financial Year) Financial Year)
Total Scope 1 emissions (Break-up of Metric tonnes of 274042 283485
the GHG into CO2, CH4, N2O, HFCs, PFCs, CO2 equivalent
SF6, NF3, if available)
Total Scope 2 emissions (Break-up of Metric tonnes of 241884 193187
the GHG into CO2, CH4, N2O, HFCs, PFCs, CO2 equivalent
SF6, NF3, if available)

Parameter Unit FY 22-23(Current FY 21-22 (Previous

Financial Year) Financial Year)
Total Scope 1 and Scope 2 emissions Metric tonnes / Cr 6.39 7.02
per Cr of turnover
Total Scope 1 and Scope 2 emission Metric tonnes / FTE 4.16 6.27
intensity (optional)–the relevant metric
may be selected by the entity

» Scope 1 emission is calculated based on the total Air conditioning tonnage based on per square feet area and the
leakage rate of 5% and Diesel consumed in bank owned cars and DG sets.
» Scope 2 emission is calculated based on the electricity consumed from the utility.

2. Details of total energy consumption (in Joules or multiples) and energy intensity

Parameter FY 22-23(Current FY 21-22 (Previous

Financial Year) Financial Year)
Total electricity consumption(A) in GJ 769900 755951
Total fuel consumption (B) in GJ 110348 102140
Energy consumption through other sources (C) in GJ 12339 14515
Total energy consumption A+B+C) in GJ 892587 872606
Energy intensity per Cr of turnover (Total energy consumption/ 11.05 12.84
turnover in Cr)
Energy intensity (optional)–the relevant metric may be 11.81 11.48
selected by the entity (per Full Time Employee FTE)
» Procured electricity consumption: Average rates of different states are considered in arriving at the consumption
figures using spent amount data.
» Diesel consumption in liters is calculated considering the average rate and the amount spent data.

The Bank is committed to reducing the carbon footprint The primary aim of the Climate Risk Management Policy of
of its operations. The Bank shall endeavour to achieve the Bank is to work towards embedding sustainability into
carbon-neutral status by 2030 and is focusing on aligning business and ensuring a smooth transition towards low
its products and services with the United Nations carbon and climate-resilient operations and investments.
Sustainable Development Goals (SDGs). Apart from To achieve this objective, the Bank is committed to the
that, the Bank is committed to identifying and mitigating following:
climate-related risks and opportunities across all aspects
of the Bank’s lending, investments and operations.
Integrated Annual Report
2022-23 95

i. Taking system-wide action to ensure both – the vi. Identify responsibilities for climate-related risk
resilience of the financial system to Climate risk and management throughout the organizational structure
support of the financial system in a Climate Risk– and clearly assign climate-related responsibilities
sensitive manner by integrating climate-related risk to members and committees and exercise effective
(and opportunity) considerations within day-to-day oversight of climate-related financial risks.

Strategy, Model & Capitals

operations, lending portfolios and overall
vii. Incorporating applicable India’s national, state
decision-making.
and local regulatory requirements and: relevant
ii. Assessing climate-related risk drivers that might lead environmental, social, labour and biodiversity
to increasing strategic, reputational, and regulatory conventions ratified by India.
compliance risk, as well as liability costs associated
viii. Implementing climate risk assessment approach
with climate-sensitive investments and businesses.
following internationally accepted guidelines such as
iii. Identify, monitor and manage all climate-related Taskforce on Climate-related Financial Disclosures
financial risks that could materially impair the financial (TCFD), Climate Risk.
condition, including the capital resources and liquidity

Notice
positions and incorporate climate-related financial The proactive approach towards Climate risk management
risks into the overall business strategies and risk under this Policy necessitates the understanding of
management frameworks. multi-point impacts of climate risk vis-ä-vis ensuring
the resilience of the financial system to Climate risk
iv. Identifying and quantifying climate-related financial
and support of the financial system in Climate Risk in a
risks and incorporating them into the internal capital
sensitive manner by integrating climate-related risk (and
and liquidity adequacy assessment processes.
opportunity) considerations within day-to-day operations,
v. Appropriate policies, procedures and controls are to lending and investment portfolios and overall
be implemented across the organization to ensure decision-making.
effective management of climate-related financial risks.

Statutory Reports
Environmental
» Physical » Lower Profitability » Credit Risk
Lower Collateral Value Market Risk

è è
» Acute » »
» Chronic » Lower Household Wealth » Operational Risk
» Transition » Increasd Cost of » Liquidity Risk and
» Policy Changes Compliance Funding Risk
» Increased legal Cost » Reputational Risk

Financial Statements
» Technological Changes
» Behavioural Changes

Social
» Evironmental Risk
» Change in Social Policy
» Change in Market Sentiment

Governance
» Inadequate Management of
E & S Risks
» Non Compiance with Corporate
Governance Framework
 Integrated Annual Report
96 2022-23

Nurturing Natural Capital

Union Bank’s Commitment to Environmental Stewardship

Climate Change Risk Management » Renewable Energy Renewable energy, and solar
photovoltaic generation in particular, is poised to
Risk Governance
disrupt conventional electricity systems worldwide.
Bank is adopting a solid system of Governance, Many opportunities for the Bank to develop innovative
with effective and robust controls for climate risk financing schemes to either support direct investments
mainstreaming. The system of Governance is proportionate by households or businesses or to provide loans to
to the nature, scale and complexity of the operations energy service providers. Rooftop solar systems offer
across the Bank’s businesses. The Board of Directors, the millions of households and companies the potential
Risk Management Committee (RMC), the Stakeholders to produce electricity. Financing opportunity exists
Relationship Committee (SRC) and senior management in combining home mortgage loans with solar home
shall be the senior most decision-making authorities on systems loans, which has the potential to make solar
climate risk-related matters. financing easier while also allowing financial institutions
to benefit from mortgage securitization.
The Board of Directors and senior management shall clearly
assign climate-related responsibilities to members and
Encouraging cleaner technologies via digital
committees and effectively oversee climate-related financial
risks. The Bank’s well-established, existing risk governance banking for MSMEs
structure shall be utilized for assessing and managing One notable initiative is the introduction of digital banking
climate-related risks, wherein assessment and monitoring solutions that enable MSME customers to apply for
of climate risks and opportunities shall take place through loans digitally. Through Straight Through Processing
each level of the existing governance structure. (STP) Kishore and Tarun Mudra Loans, businesses
can conveniently access financing up to ` 10.00 Lacs.
Climate-related Opportunities Additionally, Union Nari Shakti and GST Gain loans, also
While Climate change poses a significant risk for available digitally, provide financial support for women
the Bank but at the same time, it also offers several entrepreneurs and facilitate the adoption of cleaner
business opportunities. The low-carbon transition creates technologies. In FY2023, the Bank disbursed around
opportunities for efficiency, innovation and growth for the ` 1,25,022 crore under these methods to MSMEs.
Bank. There is increasing demand for capital to finance
long-term projects in emerging markets where economic
growth and lower carbon intensity policies are intertwined Digital banking solutions are revolutionizing the
with the urgent need to strengthen climate resilience. financial landscape, offering convenient financing
Adjustment to climate change and shifting climate zones
options for MSMEs and women entrepreneurs.
creates demand for new and different products and
services. That will require investment in measures to These initiatives are not only fostering economic
enhance the resilience of infrastructure, water-intensive empowerment but also encouraging the adoption
industries, and agriculture. Climate, resilient technologies of cleaner technologies.
and practices in agriculture and food security include
drought-tolerant seeds, improved irrigation systems, and
more sustainable land management practices. Water Union Solar
management to address higher rainfall variability ranges To further promote sustainability, Union Bank has
from harvesting rainwater by households to ecosystem- launched Union Solar, a specialized product aimed at
based adaptation of entire watersheds. Disaster risk financing the installation of solar power plants for captive
reduction entails deploying tools such as risk and use. By encouraging borrowers to transition to non-
vulnerability assessments, climate information and early conventional energy sources, your Bank contributes to
warning systems. There is an increase in demand for the reduction of carbon emissions and the promotion of
low-carbon investment that Bank can support. There are renewable energy. The Union Solar product offers attractive
multiple opportunities banks can explore, including: features, such as a waiver of collateral requirements and
» Energy Efficiency, which has a positive impact on concessional interest rates, making it an appealing and
profitability and competitiveness while at the same time cost-effective choice for borrowers. In FY2023, the Bank
reducing or deferring the pressure of putting additional sanctioned around ` 105 crore under the Union Solar
power generation capacity on the grid. programme.
Integrated Annual Report
2022-23 97

These initiatives underscore Union Bank of India’s Risk Measurement: The TCFD has provided a valuable
commitment to environmental responsibility and lexicon of climate-related risks and opportunities, outlining
sustainable practices, promoting the efficient utilization of the transition (Policy, market, technology, and reputation)
resources and supporting the transition towards a greener and physical (chronic and acute) risks that can impact
and more sustainable future. an organization’s long-term sustainability and financial

Strategy, Model & Capitals

performance. These risks and opportunities can be broken
Risk Management Measures and Strategies down further and put into the context of the business
being assessed. The Bank will be using different metrics
Risk Appetite: The direction and effectiveness of Climate
to assess the impact of (transition and physical) climate-
Risk Management are closely linked to the Bank’s
related risks on the lending and other financial intermediary
corporate goals, risk appetite and risk culture. The Climate
business activities in the short, medium and long term.
risk management framework consists of five distinct
Metrics may relate to credit exposure, equity and debt
building blocks, i.e., a) Risk measurement, b) Internal
holdings, or trading positions, broken down by Industry,
control, c) Risk reporting and monitoring, d) Metrics &
Geography, Credit quality (e.g., investment grade or non-
Targets, and e) Disclosures.
investment grade, internal rating system), Average Tenor,

Notice
among others.

Financial Type Category gets Impacted Impacts

Balance Sheet » Assets Impacts on Assets
» Liabilities » Increase in earnings from giving loans to
» Capital and Financing companies which follow proper Climate Risk
Management in their business operation.
» Increase in earnings due to funding Projects
which have potential for sustainable finance

Statutory Reports
like Renewable Energy, Clean Transportation,
Green buildings, Sustainable Agriculture, Waste
management etc.
» Loss of earnings due to various disruptions
caused by acute Physical Risks.

Impacts on Liabilities
» There may be an increase in liabilities related to
legal recourse caused due to Climate Change

Financial Statements
litigations.

» The liquidity may get impacted due to the

sudden mass withdrawal of deposits by
depositors due to Climate-Related Hazards.

Impacts on Capital and Financing

» The Bank’s Capital reserve may get affected
due to loss caused by Climate-related Risk or
an increase in the expenditure of the Bank.
Income Statement » Revenues Impacts on Revenues
» Expenditures Impacts on Expenditure
 Integrated Annual Report
98 2022-23

Nurturing Natural Capital

Operational
Sustainability at
Union Bank of India
In addressing our own environmental impact,
» UNSDGs: we better prepare our organization for future
changes by reducing our exposure and risk to
decarbonization, energy market volatility and
potential carbon pricing scenarios. Operational
sustainability, the reduction of our own
environmental and carbon footprint, has been key
to our environmental sustainability program over
the few years.

Operational Sustainability Goals

» Strategy Blueprint: In FY2024, Union Bank of India is in the process of setting
important sustainability goals to help prioritise our
environmental sustainability efforts. This includes targeted
goals to reduce our energy use and location based GHG
emissions, reduce water consumption and waste sent to a
landfill, and purchase renewable power. We are focusing on
» Business Model Components: reducing our waste and conserving water significantly in
the coming years. Further, we are committed to continuing
our work in this area, increasingly reducing the material we
3
use and recycling as much as possible.

» Material Issues Until now, the Bank has already taken certain steps
towards water conservation. Our efforts, such as providing
1, 3, 4, 6, 8, 9, 26, 27, 28, waterless urinals, among others, in our corporate office,
30, 32, 33. have resulted in a 3% reduction in water consumption in
our Central Office Building at Nariman Point in FY2022.
Integrated Annual Report
2022-23 99

Union Bank of India has established a comprehensive Committed Towards Environment

sustainable sourcing procedure to ensure responsible
Union Bank of India has become the founding
procurement practices. The Bank recognizes the
member of the Indian Green Building Council (IGBC),
importance of sourcing inputs and materials in an
a premier green rating organisation promoted by the
environmentally and socially sustainable manner. Union

Strategy, Model & Capitals

Confederation of Indian Industry (CII).
Bank of India’s sustainable sourcing policy encompasses
various aspects, including supplier selection, evaluation,
and ongoing monitoring. The bank emphasizes the
consideration of environmental, social, and ethical factors
when engaging with suppliers. This includes assessing
suppliers’ commitment to sustainability, such as their
adherence to environmental regulations, labor standards,
and ethical business practices. Through this policy, Union
Bank of India aims to promote sustainable development,
reduce environmental impacts, support fair trade practices,

Notice
and contribute to the well-being of communities. By
prioritizing sustainable sourcing, the bank demonstrates its Reducing our operational emissions to
commitment to responsible business practices and its role net zero
in fostering a more sustainable future.
Union Bank remains committed to managing its
operational footprint and transitioning to a low‑carbon
economy. In FY2022, we began to define our Scope 1
and 2 emission reduction targets against an established

Statutory Reports
Financial Statements
 Integrated Annual Report
100 2022-23

Nurturing Natural Capital

Operational Sustainability at Union Bank of India

baseline. We aim to continue offsetting residual emissions TTill today, the Bank has installed on-grid rooftop solar
from our operations and business travel. This reduction will panels on the terrace of the corporate office in Mumbai
be achieved through expanding our renewable electricity and one of its facilities at Vijayawada, with a net installed
purchasing programme across our operations in India and capacity of 72 KWp, and a potential of generating around
our overseas offices. 300 units of daily power consumption. Your Bank Is
committed to investing in energy conservation initiatives
Union Bank of India has implemented specific procedures to further commitment to achieve greater environmental
for the disposal of IT assets classified as e-waste and efficiency in our operations. Major initiatives include:
hazardous waste. To manage e-waste containing the bank’s » Installation of roof top solar plant of 2 MW capacity.
data, including computers, HDDs, drives, tapes, printers, This installation has generated 3427597 units annually
scanners, and other data-bearing devices, the bank engages which helped to save 3153 Metric Tons of CO2 e of
e-waste management services. Regarding the disposal of Carbon emission in FY 22-23.
hazardous IT waste, such as batteries, Union Bank of India
follows a buyback approach with the original equipment » Bank has installed grid connected solar power plant of
manufacturers (OEMs). This ensures the safe and capacity 60 KWp and 12 KWp in Banks’ own building
compliant disposal of hazardous waste, mitigating potential of Vijayawada and Central Office Mumbai respectively.
environmental risks. Further, installation of 430 KWp solar power plant is in
process at CO-Annexe Mangalore.
Union Bank of India remains committed to responsible » The 60 KWp and 12 KWp helped to save 70.52 Metric
waste management practices, ensuring the safe Tons of CO2 e of Carbon emission and 14.1 Metric
reclamation and disposal of e-waste and hazardous waste Tons of CO2 e of Carbon emission respectively and as
through certified recyclers and authorized channels. By applicable metric tons.
adhering to these practices, the bank actively contributes » Further to the installation of 430 KWp, it will help to save
to environmental sustainability and supports a cleaner and 690 Metric Tons of CO2 e of Carbon emission.
healthier future. We aim to start disclosing our progress in
these endeavours from FY2024. » Office premises are being provided with indoor
ornamental plants with a view of air purification and
contributing to the environment.
Renewable Energy Adoption
We recognise that for renewable energy to support the These moves are a modest step towards our ambition to
decarbonisation of the wider economy, there is also transition to cleaner and alternate sources of energy in
a pressing need to reduce the energy intensity of our future.
operations. We are in the process of setting targets for
reducing our energy intensity by 2030.

Union Bank of India takes pride in its extensive branch

network, which plays a vital role in serving customers
across the country. As of March 31, 2023, your Bank
boasts a wide-reaching network of 8,580 branches,
including 3 overseas branches located in Hong Kong,
Sydney, and Dubai DIFC. Notably, 58 percent of these
branches are strategically positioned in rural and semi-
urban areas, ensuring financial inclusion and accessibility
for diverse communities.

The Bank aims to focus on using solar energy to meet

the energy requirements of its >8,577 branches. This
will enable the Bank to achieve its environmental goals
and contribute to the Government’s objective of fulfilling
at least 50% of energy requirements through renewable
energy by 2030. Zonal Office, Vijayawada
Integrated Annual Report
2022-23 101

» Battery waste weight is calculated based on the sale

value of ` 85 per Kg.
» E-waste weight is calculated based on the sale value of
` 50 per Kg.

Strategy, Model & Capitals

» The recycled waste is calculated based on the battery
waste as it is getting recycled.
» The plastic waste (per capita waste generation) is
calculated referring the Central Pollution Control Board
report.

To support our new strategic direction, we are setting a

Central Office Mumbai new target to divert all waste from landfills and incineration
across all our branches by 2035, with 100% of waste in
Encouraging the adoption of non-polluting our facilities being reused, repurposed, or recycled. This

Notice
vehicles will be achieved through the roll-out of our Zero Waste
Strategy, which will commence in FY2024. As part of this
During FY2022, the Bank initiated a programme to encourage
initiative, we are also working with our procurement teams
its employees to adopt the use non-polluting vehicles. These
to engage with our supply chain partners to understand
include vehicles that are CNG, electric or hybrid fuels that do
their capabilities to reduce the volume of packaging being
not emit any pollution. To motivate its employees, the Bank
sent to our offices and request suppliers to sign up for our
has offered to re-imburse its employees for their conveyance
Zero Waste Supply Chain Charter. The Charter encourages
expenses, making the running cost of such vehicles even
suppliers to eliminate transit packing, supply goods in
more attractive.
reusable containers and investigate opportunities for
packaging waste to be backhauled in the next delivery.
Reducing waste & Supply Chain

Statutory Reports
For a long period, we have directed our procurement teams Reducing the use of paper
to increase the coverage of sustainably sourced paper.
At your Bank, we have migrated a large number of
At the beginning of FY2022, we explored opportunities to
transactions (Bulk Collections / Payments / MIS / Channel
continue the removal of single-use plastics. Going forward,
Finance) from paper-based services to digital services
our focus is on transitioning our waste management
through our online platform, whereby paper usage
approach and material use to circular economy principles,
has been dramatically reduced. The volume of digital
recognising the importance of reducing the volume of
transactions undertaken by the Bank during the FY2023 are
waste we produce and maximising the use of materials in
as follows:
our buildings.

Financial Statements
Year No of Amount (in
Details related to waste management Transactions crore)
Parameter FY 22-23 FY 21-22
FY2023 15,95,01,642 8,93,524.67
(Current (Previous
Financial Year) Financial Year)
Total Waste generated (in metric tonnes) Enhance our Digital Network for Operational
Plastic waste (A) 10961 8816 Efficiencies
E-waste (B) 306 238 The Bank has created a dedicated Digitization Vertical
Battery waste (C) 11 21 to drive the digital transformation journey of the Bank by
Total (A+B + C) 11278 9075 reorienting Bank’s digital vision. The vertical comprises of
For each category of waste generated, total waste Digital Journeys, Digital Banking Department and Digital
recovered through recycling, re-using or other recovery Interactions & Partnerships.
operations (in metric tonnes)
Category of waste
(i) Recycled 11 21
 Integrated Annual Report
102 2022-23

Nurturing Natural Capital

Operational Sustainability at Union Bank of India

Progress through Digital Channels

Growth on Digital Channels (Figures in crore)

Channels 31.03.2022 31.03.2023 Annual Growth

Absolute (%)

Mobile Banking Users 1.65 2.13 0.48 29

Internet Banking Users 0.68 0.74 0.06 9

Fintech absorption: among others. The Bank is transforming the current

Rising customer expectations and changing customer IT architecture to ensure high performance access to
behaviours have compelled banks to consider partnering business systems and cloud-based applications complying
with FinTech companies warranting Banks to deliver regulatory norms without compromising security. At the
seamless, world-class services to the customers so same time we are fostering Enterprise Solution Architecture
that they can be benefitted by the evolution in FinTech Practices for new applications to support new innovations
Segment. Fintech policy of the Bank provides for in diverse, dynamic, and complex environments.
empanelment of FinTechs to create a pool of companies
having developed unique financial services. A readily Account Aggregator: Union Bank of India became the first
available pool of FinTechs helps the Bank in the adoption public sector lender to go live on the account aggregator
of the required solution within the shortest possible time. ecosystem, a part of the Government’s digital initiatives to
Based on the market study and expected requirements improve credit delivery. The account aggregator ecosystem
of the Bank, 24 FinTechs were empanelled under the helps lenders leverage digital data acquired with the
following segments. The validity of such empanelment is customer’s consent to provide seamless service without
for a period of three years. physical documentation. Any financial information user
(FIU) can request data based on a consent given by the
» Development & Integration of Digital Journeys customer on their account aggregator handle. Bank has
» Wealth Management, including Insurance implemented the technology stack as per the Reserve Bank
Information Technology (ReBIT) guidelines.
» Agricultural Lending
» UI / UX Development & Customization. Blockchain Technology: Union Bank of India, along with
» Analytics using Artificial / Machine / Deep Learning 18 other banks, have formed an organization known as
“Indian Banks Blockchain Infrastructure Company (IBBIC)”
» Intelligent Virtual Assistant (Chatbot) to implement Banking related Services in Blockchain
» Digital Marketing Technology. With this, the Banking System in India is going
to take a new leap in Digitization in the near future.
» Cash Management, Trade and Supply chain financing
AI/ML: The Bank has initiated setting up of Analytics
Taking Information Technology Farther Center of Excellence and eyeing upon complete business
modelling through AI/ML in next 3 years. Various use cases
like AI based IVR System, U-Mobile Adoption Analysis,
Cross Selling/Upselling of Credit Cards, Voice Bot, etc. are
in implementation stage whereas Early Warning Signal
(EWS) in Retail/Agri/MSME sectors is already implemented.

Offering the “Digital Experience” to its customers Robotic Process Automation (RPA): Bank is partnering
is essential for both their convenience and our own with leading Fintech firms in RPA and initially identified
operational efficiencies and consumptions. At Union Bank, few processes for automation like daily report generation,
we are leveraging and implementing the latest innovations ATM reconciliation, payment settlement, etc. Using RPA
in technology such as cloud computing and digital lending, technology.
Integrated Annual Report
2022-23 103

Key Highlights include: personalized video-based solutions, WhatsApp Banking,

Palm Banking, Video KYC, and Microservices Architecture
» First public sector bank (PSB) to go live on the account
for container-based cloud-ready applications. Your Bank
aggregator ecosystem.
prioritizes regulatory compliance and security in all
» First PSB to achieve triple ISO certifications: ISO technology implementations.

Strategy, Model & Capitals

27001:2013 (Information Security Management System),
ISO 22301:2019 (Business Continuity Management Collaboration with key stakeholders in the technology
System), and ISO 31000:2018 (IT Risk Management). domain is a key focus for the bank. It actively works
with the RBI IT Innovation Hub on Digital Ledger-based
» First PSB to implement end-to-end auto-renewals of
Blockchain Technology and has been selected for a pilot
MSME loans up to ₹1 million.
project on Central Bank Digital Currency (CBDC). Union
» First PSB to implement multi-language support in Bank also pioneers the Account Aggregator platform and
Finacle, mobile banking applications, and SMS. integrates with the Open Network for Digital Commerce
» Ranked 2nd in ATM Switch Processing among all banks (ONDC) and Open Credit Enablement Network (OCEN) for
across the country. Digital Lending. Additionally, your Bank utilizes Artificial

Notice
Intelligence (AI)-based conversational banking through
» Average monthly CBS transactions exceed 194 crores, Amazon Alexa and Google Assistant Voice Bots to enhance
with a 20% increase in daily average transaction volume customer experience and convenience.
in the last six months.
» Average system uptime of 99.97%, aligning with best-in- In its pursuit of future growth and innovation, Union
class standards under EASE 4.0. Bank embraces emerging technologies such as AI/ML,
5G, Blockchain, Metaverse, and DevSecOps. Your Bank
» First bank in India to introduce Metaverse in banking. actively explores solutions, forms partnerships with fintech
» Achieved prestigious PCI-DSS (Payment Card Industry companies, and utilizes its Analytics Centre of Excellence
– Data Security Standard) certification covering all (ACOE) and Data Lake to analyse customer data and
payment systems and processes dealing with cards. preferences, enabling the delivery of personalized services.

Statutory Reports
» Introduction of innovative solutions like WhatsApp These technological initiatives align with the bank’s
Banking, Voice Banking, Open Banking Architecture, strategic focus on the future. Union Bank aims to host
Digital Platform, Straight Through Processing (STP), Cloud Native Applications on a Hybrid Cloud to facilitate
Robotic Process Automation (RPA), and Pre-Approved rapid digital resource deployment. It seeks to integrate
Personal Loans (PAPL) AI and Virtual Reality (VR) to create immersive banking
experiences, harness the potential of the Internet of
New Initiative on our Horizon Things (IoT) and connected devices for banking services,
Union Bank of India places significant emphasis on implement robust security measures for customer
leveraging emerging and future technologies to achieve information protection, establish a Microservices-based

Financial Statements
its Natural Capital objectives. Your Bank is dedicated to Omni-Channel Platform for a unified customer experience,
delivering seamless digital experiences to customers and adopt new practices like DevOps tools for continuous
through advanced technology solutions. These include development and application modernization.
 Integrated Annual Report
104 2022-23

Social & Relationship Capital

Building Sustainable
Relationships
Integrated Annual Report
2022-23 105

» UNSDGs: » Strategy Blueprint: » Business Model Components:

1 5 7

Strategy, Model & Capitals

» Material Issues:

11, 12, 15, 17, 18, 19, 22,

32, 33, 34, 36, 42, 43.

At Union Bank of India, we embrace our role as a we prioritize meaningful engagement with our
catalyst for the growth of a digital, aspirational, stakeholders, responding to their perspective, and

Notice
and eco-conscious India. We recognize that aligning our strategies with their expectations. In
sustainability, responsible banking, and cutting-edge this chapter, we present how Union Bank of India
digital technologies are essential for creating long- leverages its social and relationship capital to
term value for our stakeholders and contributing build sustainable partnerships, foster innovation,
to India’s journey towards becoming a net-zero and contribute to India’s progress and overall
emissions country. As we embark on this path, societal development.

Stakeholder How we engage with them Our strategic priorities Union Bank of India’s response
Type for them

Statutory Reports
Employees » Continual engagement » Risk and compliance » Job rotation and expanded roles
across all levels culture » Entrusting responsibilities to young
» Regular communication » Growth and learning professionals
meetings led by senior opportunities » Leadership and career mobility
leaders » Culture of innovation initiatives
» Digital platform for » Merit-based growth » Covid vaccination drive and
employees to exchange emergency support for employees
ideas

Financial Statements
» Empathetic leave policies
» Providing digital, functional, and
behavioural learning opportunities

Customers » Employee interactions » Digital convenience » Upholding fairness to both customers

» Structured feedback » Skilled, responsive staff and the Bank
surveys » Relevant digital » Promoting the right-selling of digital
» Branch-based customer products and services products
meetings » Rapid resolution of » Enhancing customer service with
» Multichannel requests and grievances digital efficiency and swift response
communication and » Fostering staff’s digital proficiency
grievance resolution
 Integrated Annual Report
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Social & Relationship Capital

Building Sustainable Relationships

Stakeholder How we engage with them Our strategic priorities Union Bank of India’s response
Type for them

Regulators » Regular meetings with » Fair customer treatment » A dedicated team for regulator
regulatory bodies and grievance resolution communication
» Participation in policy » Anti-money laundering » Defined processes and digital
forums and fraud risk technology usage for efficient
» Various forms of » Operational risk, regulatory response
communication including IT and » Continual regulatory engagement and
» Supervisory meetings cybersecurity risk policy input provision
» Promoting a strong risk
and compliance culture

Shareholders » Annual General Meeting » Shareholder value » Regular digital sessions with investors
& Potential » Emails and periodic creation » Communicating during the quarterly
Investors » Medium and long-term results call with investors and
» meetings
strategy increasing disclosures
» Conference calls
» Governance and ethical » Narrative analysis and disclosures
» Investor conferences practices included in the Annual Report
» Analyst day » Compliance » Environmental, Social, and Governance
» Transparency (ESG) initiatives and accomplishments
disclosed on your Bank’s website
» Disclosure of non-
financial metrics
pertaining to
sustainability

Society » Union Bank Social » Contribution to societal » Voluntary CSR initiatives were
Foundation (UBSFT) for development undertaken during FY 2022-23
Inclusive Growth » Financial literacy and » Union Bank Social Foundation’s
» Rural development improved financial (UBSFT) focus on livelihoods, health
initiatives service access infrastructure, social and environmental
» Support for government projects
initiatives » Partnerships between industry and
academia for developing banking sector
skills
Integrated Annual Report
2022-23 107

Methods of Stakeholder Engagement

Stakeholders Methods of Engagement

Strategy, Model & Capitals

Annual shareholder meeting, quarterly earnings calls, investor conferences and presentations,
meetings with investor relations team and executive management, regulatory filings, and dedicated
investor relations website.
Shareholders

Focus groups, conversations through branch interactions and phone calls, satisfaction surveys,
social media interactions, customer helplines and corporate website.
Customers

Notice
Engagement survey, executive leadership communications, learning programmes, business
resource groups and inclusion councils, performance and development initiatives and corporate
landing page.
Employees

Community needs survey and assessments, financial education and outreach programmes,
philanthropic investments, civic memberships, volunteerism and non-profit board engagement, and
corporate website.
Communities

Statutory Reports
Exams, continuous monitoring and other meetings with senior management, interactions through
regulatory affairs and government affairs teams, and regulator-sponsored events and initiatives.
Regulators

Building Sustainable Relationships with

Employees

Financial Statements
At Union Bank of India, we prioritize our employees towards achieving our goals. To facilitate idea-sharing
as essential stakeholders, recognizing their valuable and collaboration, we have established a digital platform
contributions to our success. We engage with them exclusively for employees. This platform serves as a hub
through various initiatives, ensuring continuous dialogue for exchanging innovative ideas, fostering a culture of
and fostering a culture of open communication and creativity, and harnessing the collective intelligence of our
collaboration. By aligning our strategic priorities, we strive workforce.
to create an environment that promotes growth, innovation,
and employee well-being. We believe that an empowered and motivated
workforce is fundamental to achieving
Continual engagement across all levels is a key element
of our approach. We conduct regular communication sustainable growth and delivering exceptional
meetings led by senior leaders, providing opportunities service to our customers.
for meaningful interactions and the exchange of ideas.
Through these sessions, we promote transparency,
address concerns, and align our collective efforts
 Integrated Annual Report
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Social & Relationship Capital

Building Sustainable Relationships

Our strategic priorities for employees revolve around trained to provide personalized and attentive service,
four key areas: fostering a risk and compliance culture, creating a welcoming environment for customers.
providing growth and learning opportunities, cultivating a We believe in fostering positive relationships with our
culture of innovation, and enabling merit-based growth. customers through meaningful interactions and building
We believe that a strong risk and compliance culture trust. To gather valuable feedback, we conduct structured
is vital for ensuring the integrity of our operations. To feedback surveys. These surveys enable us to understand
achieve this, we prioritize ongoing training programs and our customers’ needs, preferences, and areas for
awareness sessions that instill ethical practices, regulatory improvement. By actively listening to their feedback, we
compliance, and risk management principles throughout continuously refine our products and services to better
the organization. meet their expectations.

We are committed to empowering our employees with

growth and learning opportunities. Through initiatives We continuously strive to enhance customer
like job rotation and expanded roles, we encourage satisfaction, embrace digital innovation, and
skill diversification and offer avenues for personal and provide responsive and efficient service that
professional development. We also believe in entrusting
exceeds expectations.
responsibilities to young professionals, recognizing
their potential, and providing them with challenging
opportunities to excel. We also organize branch-based customer meetings, where
customers have the opportunity to discuss their banking
As part of our commitment to employee development, we
requirements and seek personalized guidance. These
have established leadership and career mobility initiatives
meetings allow us to better understand their financial goals
that enable individuals to progress and contribute to their
and provide tailored solutions.
fullest potential. Additionally, we place great emphasis on
employee well-being and safety. During challenging times,
such as the COVID-19 pandemic, we have implemented a
Grievance Redressal Mechanism:
comprehensive vaccination drive and emergency support Strengthened and Efficient
measures to ensure the health and safety of our employees. To address customer grievances effectively, Union Bank of
We also provide empathetic leave policies that support India has strengthened its Grievance Redressal Mechanism.
work-life balance and cater to personal and family needs. Clear roles and responsibilities have been defined at each
level, accompanied by defined Standard Operating Practices
Furthermore, we recognize the importance of digital for complaint resolution. The revised Grievance Redressal
transformation in the banking sector. We offer digital, Policy ensures prompt and effective resolution of customer
functional, and behavioural learning opportunities to equip complaints through an escalation matrix and predefined
our employees with the necessary skills for the digital timelines. The updated Union Care Handbook provides
age. Through these initiatives, we strive to enhance their categorization, reasons, and remedies for complaints,
proficiency and adaptability, positioning them for success along with updated contact details for resolving various
in an evolving banking landscape. issues. The bank has also uploaded grievance redressal
officer details on its website for easy access. During the
Delivering Exceptional Customer financial year 2022-23, a total of 2,52,954 complaints
Experience: Putting Customers First were successfully resolved. Union Bank of India remains
committed to enhancing its grievance redressal mechanism
At Union Bank of India, our customers are at the heart of
for improved customer satisfaction.
everything we do. We engage with them through various
channels and initiatives, striving to provide the best possible
experience. By aligning our strategic priorities, we aim to
enhance customer satisfaction, promote digital convenience,
and ensure swift resolution of requests and grievances.

Employee interactions play a crucial role in our customer

engagement strategy. Our dedicated staff members are
2,52,954
Total number of complaints resolved during the year
Integrated Annual Report
2022-23 109

In today’s digital age, we recognize the importance of regulatory landscape, fostering a collaborative approach
multichannel communication and grievance resolution. towards compliance and risk management. To facilitate
We provide various digital channels for customers to effective communication, we utilize various forms of
interact with us, ensuring convenience and accessibility. communication channels recommended by regulatory
Swift resolution of customer requests and grievances is a bodies. This ensures timely dissemination of information,

Strategy, Model & Capitals

top priority for us as we strive to deliver exceptional service exchange of regulatory updates, and efficient reporting
and maintain customer satisfaction. Our strategic priorities processes.
for customers focus on digital convenience, skilled and
responsive staff, relevant digital products and services, Supervisory meetings further strengthen our relationship
and rapid resolution of requests and grievances. We are with regulators. These meetings provide an opportunity
committed to upholding fairness to both customers and for detailed discussions on risk management, anti-
the bank, ensuring transparent and ethical practices in all money laundering, fraud prevention, and operational
our interactions. Additionally, we promote the right-selling risks, including IT and cybersecurity. Through these
of digital products, offering customers tailored solutions engagements, we demonstrate our commitment to
that align with their financial needs and goals. implementing robust risk management practices and

Notice
maintaining a secure operational environment.
Enhancing customer service with digital efficiency and
swift response is paramount to us. We continually invest
in digital technologies to provide seamless and convenient We embrace regulatory engagement as an
banking experiences. We prioritize the development of
opportunity to continuously improve and
relevant digital products and services that cater to our
customers’ evolving needs. strengthen our risk management practices,
safeguard the interests of our customers, and
To achieve these priorities, we foster our staff’s digital contribute to the overall stability and integrity of
proficiency through training and upskilling initiatives.
By equipping our employees with the necessary digital
the banking industry.

Statutory Reports
expertise, we empower them to deliver exceptional service
and support our customers’ digital journeys.
Our strategic priorities for regulatory engagement focus
on fair customer treatment, mitigating risks such as anti-
Ensuring Regulatory Compliance: Building money laundering and fraud, operational risk management,
Trust and Collaboration including IT and cybersecurity, and promoting a strong
At Union Bank of India, we recognize the importance of risk and compliance culture. To achieve these priorities,
maintaining strong relationships with regulatory bodies. we have established a dedicated team for regulator
We engage with regulators through various channels and communication. This team ensures regular and effective
activities to ensure compliance, promote transparency, communication with regulatory bodies, addressing

Financial Statements
and build trust. By aligning our strategic priorities, we aim queries, providing necessary information, and maintaining
to uphold fair customer treatment, mitigate risks, and transparency.
promote a strong risk and compliance culture. Regular
meetings with regulatory bodies form an integral part We have defined processes and embraced digital
of our engagement strategy. These meetings provide technologies to enhance our regulatory response
a platform for open dialogue, allowing us to address capabilities. By leveraging digital solutions, we streamline
regulatory concerns, seek guidance, and share updates reporting, monitoring, and compliance processes, enabling
on our operations. We value the opportunity to collaborate efficient regulatory responses.
with regulators to ensure our practices align with industry
standards and regulatory requirements. We believe in continual regulatory engagement and
proactive policy input provision. By staying actively
Active participation in policy forums enables us to involved in regulatory discussions and seeking
contribute to the development of regulations and opportunities to provide input, we contribute to the
industry best practices. By sharing our insights and development of regulations that foster a safe, fair, and
experiences, we actively participate in shaping the transparent banking environment.
 Integrated Annual Report
110 2022-23

Social & Relationship Capital

Building Sustainable Relationships

Fostering Trust and Value Creation for Empowering Inclusive Growth: Union
Shareholders & Potential Investors Bank’s Social Impact (CSR)
Union Bank of India recognizes the significance Union Bank of India is committed to creating a positive
of shareholders and potential investors as crucial impact on society. Through Union Bank Social Foundation
stakeholders. We engage with them through various (UBSFT), we focus on inclusive growth, rural development,
channels and activities, aiming to foster trust, create value, and supporting government initiatives. UBSFT drives
and provide transparent and comprehensive information. projects that uplift marginalized communities and
By aligning our strategic priorities, we emphasize improve access to healthcare, education, and livelihood
shareholder value creation, long-term strategy, governance, opportunities. Our rural development initiatives aim to
compliance, and sustainability. empower rural areas and promote sustainable agriculture
and skill development. We actively collaborate with the
government to support social progress and economic
We continuously strive to provide transparent growth. Union Bank of India remains dedicated to making
and meaningful communication, ensure a lasting social impact and fostering a more inclusive and
prosperous society.
compliance with regulations, and disclose
relevant information pertaining to our
Corporate Social Responsibility (CSR) is an integral part
sustainability initiatives. By engaging in open and of a company’s commitment to managing the social,
informative dialogue, we aim to build long-lasting environmental, and economic impacts of its operations in
relationships based on trust and mutual growth. a responsible manner, aligned with public expectations.
It encompasses the company’s efforts to give back
to the community, participate in philanthropic causes,
We hold an Annual General Meeting, providing a platform and provide positive social value. Today, companies
for shareholders to receive updates, voice their concerns, increasingly recognize the importance of CSR as a
and engage directly with the bank’s management. means to make a difference and build a positive
Additionally, we maintain regular communication through brand image. CSR can be categorized into different
emails, periodic meetings, conference calls, investor types, including environmental responsibility, ethical
conferences, and an analyst day, ensuring timely updates responsibility, philanthropic responsibility, and economic
on our performance and strategic direction. responsibility.

Our strategic priorities for shareholders and potential

investors focus on shareholder value creation, medium At Union Bank of India, we remain steadfast in
and long-term strategy, governance and ethical practices, our commitment to social responsibility. We are
compliance, transparency, and disclosure of non-financial
sustainability metrics. To fulfill these priorities, we conduct
dedicated to creating a positive and sustainable
regular digital sessions with investors, facilitating direct impact on society through our CSR initiatives.
communication and addressing queries related to our By aligning our efforts with the needs of the
performance and future prospects. During the quarterly community, we strive to contribute to a better and
results calls, we enhance disclosures, providing deeper
insights into our financial and operational performance.
more inclusive future for all.
Furthermore, we include narrative analysis and disclosures
in our Annual Report, ensuring a comprehensive
understanding of our strategic initiatives and progress. As To facilitate and manage its CSR activities and donations,
part of our commitment to sustainability, we disclose our Union Bank established the Union Bank Social Foundation
environmental, social, and governance (ESG) initiatives and (UBSFT) on March 2, 2006. The primary purpose of UBSFT
accomplishments on our website. is to uplift underprivileged communities and significantly
improve the living standards of the poor and marginalized.
Your Bank allocates up to 1% of the previous year’s
published net profits for voluntary CSR activities, even
though it is not mandatory as a public sector bank.
Integrated Annual Report
2022-23 111

During FY2023, Union Bank approved donations amounting of individuals and communities. We are dedicated to
to ` 23.38 crores for 51 projects and programmes. Out of fulfilling our obligations to society.
this amount, ` 38 crore were disbursed across 42 projects
and programs. These initiatives span various areas of The UBSFT Board is led by your Bank’s MD & CEO, with
social responsibility and aim to make a meaningful impact

Strategy, Model & Capitals

Executive Directors serving as Vice Chairman Trustees.
on the communities we serve. Other trustees include Union Bank’s General Managers
and one independent trustee. The UBSFT Board provides

23.38 crores
strategic direction aligned with Union Bank’s CSR priorities
` and conducts regular reviews of activities. The Chief
Executive of UBSFT oversees the execution of the Board’s
Donations approved by Union Bank of India/UBSFT for projects/ directives.
programmes during FY 2022-23

Union Bank has also established a Stakeholders

Relationship Committee (SRC) at the apex level, comprising

51 members of the Board of Directors, which monitor’s the

Notice
CSR activities of both your Bank and UBSFT on a quarterly
The number of projects/programmes for which donations approved by basis. This committee, headed by the MD & CEO, includes
Union Bank of India/UBSFT during FY 2022-23 Executive Directors and non-official Directors.

Union Bank Social Foundation Trust FY2023 Initiatives

(UBSFT) Some of the key activities carried out by Union Bank
through UBSFT in the field of social responsibility during
Union Bank of India is deeply committed to its role as a
FY2023 include:
responsible corporate entity. In addition to adhering to
ethical business practices, your Bank actively contributes

Statutory Reports
to the economic development of communities beyond
» Education and Skill Development: Supporting
its statutory obligations. We recognize our social
programs to enhance access to quality education,
responsibility to enhance the quality of life for the
promote skill development, and empower
local community and society as a whole. To fulfill this
individuals for a better future.
commitment, Union Bank sets aside 1% of the previous
year’s published profits for voluntarily undertaking CSR
» Healthcare and Sanitation: Partnering with
activities.
organizations to provide healthcare facilities,
medical camps, sanitation infrastructure, and
To uplift underprivileged communities and significantly initiatives to promote general well-being.
improve the living standards of the poor and marginalized,

Financial Statements
as an extended arm for carrying out CSR activities, the » Livelihood Enhancement: Undertaking
Bank set up Union Bank Social Foundation Trust (UBSFT) initiatives to promote livelihood opportunities,
as a Trust on March 2, 2006. UBSFT is registered under entrepreneurship, and economic empowerment of
section 12AA and have obtained certificate under section individuals and communities.
80G of the Income Tax Act, 1961.
» Environmental Conservation: Engaging in
The vision of UBSFT is to foster public-private initiatives activities that contribute to environmental
and act as a catalyst for socioeconomic development. sustainability, such as tree plantation drives,
We aim to collaborate with other agencies to fulfill our waste management programs, and promoting
obligations as a corporate citizen. Our focus areas include renewable energy.
improving healthcare, providing infrastructure and tools for
education, and promoting continuous and sustainable skill » Rural Development: Implementing projects
development. UBSFT’s mission is to launch, implement, focused on rural infrastructure development,
participate in, fund, or otherwise assist programs and access to clean water, agriculture and farming
projects that contribute to the socioeconomic development techniques, and rural livelihood improvement.
 Integrated Annual Report
112 2022-23

Social & Relationship Capital

Product Marketing

Union Bank of India’s loan programmes

for women stands as a beacon of our
dedication to responsible banking. By
offering customised loan solutions for
women entrepreneurs, we’re not just
financing their businesses; we’re investing
in their dreams, their independence, and the
equitable growth of our society.
 Strategy, Model & Capitals Notice Statutory Reports Financial Statements
113
Integrated Annual Report
2022-23
 Integrated Annual Report
114 2022-23

Social & Relationship Capital

Building Sustainable Relationships

Healthcare

As part of our commitment to improving health infrastructure,

Union Bank of India has donated one X-ray machine with a digital
upgrade kit and one 33-seater camp van to Tirumalai Medical
Mission Hospital in Ranipet, Tamil Nadu. These contributions aim
to enhance medical diagnostic capabilities and provide better
transportation facilities for patients in the region.

Your Bank has proudly donated an ambulance to SDMH hospital,

one of the prestigious hospitals in Jaipur. This contribution reflects
our dedication to supporting the hospital in its mission to provide
quality healthcare services to patients in need.

As part of our commitment to improving healthcare services, Union

Bank of India has made a significant donation by providing an
ICU ambulance to Jayadev Memorial Rashtrothana Hospital, one
of the prestigious hospitals in Bengaluru. This donation aims to
cater to the critical needs of patients by offering advanced medical
transportation equipped with intensive care capabilities.
Integrated Annual Report
2022-23 115

Community Development

Strategy, Model & Capitals

Your Bank has donated towards the renovation of Rajkiya
Vriddhashram in Varanasi. This contribution aims to improve
the facilities and living conditions for the residents of the
Vriddhashram, particularly the elderly.

Notice
Your Bank has provided two food delivery vehicles to the Akshaya
Patra Foundation in Bengaluru. These vehicles will support their

Statutory Reports
mid-day meal scheme in Mangalagiri, Andhra Pradesh. By donating
these vehicles, we aim to contribute to the Foundation’s efforts in
providing nutritious meals to children and promoting education
through their impactful initiatives.

Your Bank has made a thoughtful donation by providing school

bags and diapers to the inmates of Swami Vivekanand Seva

Financial Statements
Pratisthan in Belagavi. By providing school bags, we hope to enable
the children to carry their educational essentials with pride and
ease. Additionally, the donation of diapers will contribute to the
comfort and hygiene of those in need.

The Bank has donated by providing bunk beds, mattresses, and a

projector to the Association for the Blind in Belagavi, Karnataka.
This contribution aims to enhance the living conditions and
educational opportunities for visually impaired individuals
supported by the association. Additionally, the projector will
facilitate visual learning and interactive sessions, empowering the
visually impaired with educational resources and a more immersive
learning experience.
 Integrated Annual Report
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Social & Relationship Capital

Building Sustainable Relationships

Community Development

Your Bank has provided school bags and sewing machines to

school children and women Self-Help Groups (SHGs) in Bhopal.
Additionally, the donation of sewing machines empowers women’s
SHGs, providing them with opportunities for skill development
and economic independence. We are committed to supporting
education and fostering entrepreneurship, contributing to the
growth and empowerment of individuals and communities in
Bhopal

Education Development

Union Bank of India has contributed to the Government First Grade

College in Hebri, Karnataka, by providing modern infrastructure
in their conference hall. By enhancing the conference hall with
modern infrastructure, we seek to provide students with a
conducive learning environment that fosters knowledge exchange,
collaboration, and holistic development.

During the year, your Bank undertook the construction of 250

toilets in government schools located in rural areas across the
country. By constructing these toilets, we contribute to creating
a more conducive and healthy learning environment for students,
addressing a crucial need in rural education infrastructure. Our
commitment to supporting education and the well-being of
students is reflected in our efforts to provide essential facilities that
empower young minds and enhance their educational journey.
Integrated Annual Report
2022-23 117

Skill Development-Rural Self-Employment Training Institutes (RSETIs)

Strategy, Model & Capitals

At Union RSETI Anandasram in Kasargod, Adv. C.H. Kunhambu,
MLA of Kerala State, took part in a certificate distribution ceremony
to honour successfully trained candidates. The distribution of
certificates recognizes their dedication and commitment to skill
development and empowers them with valuable credentials for
future opportunities. Union Bank of India is proud to collaborate
with esteemed individuals like Adv. C.H. Kunhambu and remains
dedicated to promoting skill development and empowering
individuals for a better and prosperous future.

Notice
At RSETI Rajahmundry, the Bank conducted a Women’s Tailoring

Statutory Reports
Training Program. Through this program, the Bank actively
promotes women’s empowerment and economic independence. .

Financial Statements

At RSETI Eluru, your Bank organized a certificate distribution

ceremony where successfully trained Scheduled Tribe (ST)
candidates were recognized for their achievements. Along with
the certificates, sewing machines were also distributed to these
individuals. By supporting initiatives like this, we strive to enhance
the livelihood prospects and overall well-being of individuals
belonging to the ST category.
 Integrated Annual Report
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Social & Relationship Capital

Building Sustainable Relationships

Skill Development-Rural Self-Employment Training Institutes (RSETIs)

As part of the poultry farming training programme at RSETI

Gajapati, Union Bank of India organized an exposure visit to broiler
and layer units. By exposing participants to real-life poultry farming
settings, they gained valuable knowledge and understanding of
the industry. Union Bank of India remains committed to providing
comprehensive training opportunities and practical exposure to
empower individuals and foster their growth in the agricultural
sector.

Organized an exposure visit to mushroom cultivation units as part

of the training programme at RSETI Gajapati. Participants gained
practical insights and first-hand experience in mushroom cultivation
techniques. The visit focused on different mushroom varieties and
optimal growing conditions. This exposure aimed to enhance their
skills and prepare them for careers in mushroom cultivation.

At RSETI Atkur, we conducted a certificate distribution ceremony

to honor the successfully trained candidates. Along with the
certificates, sewing machines were also distributed to these
individuals. Union Bank of India is dedicated to promoting skill
development and empowering individuals for a brighter future.
Integrated Annual Report
2022-23 119

Skill Development-Rural Self-Employment Training Institutes (RSETIs)

Strategy, Model & Capitals

Union RSETIs celebrated International Environment Day,
acknowledging the importance of environmental conservation. This
special occasion was observed to raise awareness and promote
sustainable practices among trainees and staff.

Notice
Your Bank conducted a Narishakti credit camp for trained women
entrepreneurs at RSETI Chikmagaluru. This camp provided a

Statutory Reports
platform for women entrepreneurs to showcase their business
ideas and seek financial support. During the event, credit sanction
letters were issued to eligible participants, enabling them to access
the necessary funds to start or expand their businesses.

Financial Statements

The Bank organized a Financial Literacy Camp at RSETI Varanasi.

Through interactive sessions and educational workshops,
attendees learned about various aspects of personal finance,
including budgeting, savings, investments, and banking services.
 Integrated Annual Report
120 2022-23

Energising Human Capital

Towards a Digital,
Sustainable Future
At Union Bank of India, we passionately
» UNSDGs: believe that our most valuable assets are
our employees. Their skills, enthusiasm, and
commitment are the foundation for our vision
for a sustainable, digitally empowered future.
By investing in our human capital, we aim to
provide the highest quality services to our
customers and contribute meaningfully to India’s
journey towards becoming a digital powerhouse
» Strategy Blueprint:
and a net-zero emissions country.

Enhancing Workforce Capability and

Automation for a Digitally-Driven Future
Union Bank of India understands the indispensable
» Business Model Components:
role our workforce plays in the twin journey of digital
transformation and sustainability, reflecting the central
3 theme of our report. With a total strength of 75,594
employees as of March 31, 2023, we ensure our
human capital’s efficient deployment and motivation in
» Material Issues:
achieving our organizational goals while fostering their
5, 6, 10, 19, 20, 21, 22, 23. personal growth.

Our workforce is the cornerstone of our vision for a

sustainable, digitally empowered future. By continually
reinventing our processes and adopting industry best
practices, we enhance our service quality and contribute
significantly to India’s journey towards becoming a
digital powerhouse and a net-zero emissions country.
Integrated Annual Report
2022-23 121

Strategy, Model & Capitals

Notice
Statutory Reports
Financial Statements

Recognising the centrality of our workforce in our launched by your Bank. This endeavour aligns with our
commitment to digital innovation and sustainability, we theme by ensuring seamless operations and service
constantly reinvent our processes and introduce industry delivery in an increasingly digital banking landscape,
best practices to empower our workforce and achieve our thereby aiding India’s journey toward a digital and
corporate objectives. The FY2023 saw a specific focus on sustainable future.
stabilizing the automation and digitization of processes
 Integrated Annual Report
122 2022-23

Energising Human Capital

Towards a Digital, Sustainable Future

Human Capital’s Four Strategic Priorities in FY2022

Inclusion and Develop

Diversity Great Leaders

Union Bank intensified its efforts to Recognizing the importance of

foster an inclusive workplace and enhancing our leaders’ capabilities to
diversify its workforce strategy, with drive success and foster empowerment
a particular emphasis on employee amidst an increasingly diverse and
education and training, interactive technologically evolving environment,
listening sessions, and refined we maintained our focus on leadership
recruiting practices. development throughout FY2023.

Evolving Employee
Future of Work
Experience

Our strategy of understanding our Adapting to the future, we continued to

employees’ needs has been instrumental invest in our workforce and remodel our
in enhancing the employee experience, workplace. Our refined talent acquisition
which included augmenting our benefits strategy aligns with the Bank’s strategic
offerings. This approach informs the priorities, growth plans, and our goal to
evolution of our work methodology and diversify our talent pipeline. Through
ensures our employee value proposition innovative approaches, we have
succinctly expresses who we are, what expedited the attraction of talent and
we stand for, and what employees can the enhancement of our employees’
expect to receive. To ensure a holistic skills. Striving for balance, we are
perspective, we conducted further accommodating our employees’ desire
surveys involving diverse groups of for greater control over their work
employees at all levels in FY2023. dynamics—how, where, and when work
is done—while preserving our belief that
our culture thrives through in-person
collaboration.

People Development and Digital Empowerment

Our focus is not only on nurturing talent but also on aligns perfectly with the overall theme of the report, as it
stabilizing automation and digitizing processes to improve allows our Bank to operate seamlessly and sustainably
operational efficiency. The fiscal year 2022-23 was a while ensuring our employees are equipped with the skills
significant one, where we concentrated on integrating needed for the digital era.
digital transformation into our people processes. This
Integrated Annual Report
2022-23 123

Industry Recognition - A Testament to benchmark for us, indicating our successful alignment with
the broader report theme of driving digital transformation
Our Commitment
while creating a sustainable future. We remain committed
Our pursuit of excellence and innovation has not gone to nurturing a workplace where innovation thrives,
unnoticed. The industry has acknowledged our relentless leadership is fostered, and digital transformation is

Strategy, Model & Capitals

efforts towards HR innovation, leadership development, embraced – all of which are imperative in our journey
and creating a preferred workplace. The numerous towards a sustainable banking future. Each accolade is a
accolades that Union Bank of India has received during testament to our enduring dedication to our thematic goal
2022-23 in these areas bear testament to our unwavering of building a future-ready, digitally adept, and sustainable
commitment to our workforce. This recognition is a banking organization.

Detailed List of Awards for FY2023

Notice
Golden Peacock HR Excellence Awards 2022, awarded by the
Institute of Directors: This honor underscores our dedication to
human resource excellence, highlighting our efforts in aligning HR
practices with the theme of fostering a dynamic, future-focused
banking workforce.

Statutory Reports
Future of Workplace Disruptor 2022 (Large Enterprise) at the Mint
W3 Champions 2022: This award validates our innovative practices
in shaping the future of work, resonating perfectly with our theme
of driving digital transformation in banking operations.

Financial Statements

Indian Academia Conference 2023 Corporate Award by M/s

People Lab: Recognition of our corporate efforts that synergize
academia and industry, furthering our thematic goal of building
sustainable partnerships for growth.
 Integrated Annual Report
124 2022-23

Energising Human Capital

Towards a Digital, Sustainable Future

Detailed List of Awards for FY2023

Most Preferred Workplaces in BFSI 2022 by Team Marksmen:

An accolade that reinforces our commitment to providing an
engaging, inclusive, and growth-oriented work environment, in line
with our broader theme of promoting sustainability in banking.

Innovation in HR Transformation at the BAI Global Innovation

Award: This honor spotlights our innovative human resource
practices, underscoring our efforts to transform and modernize
our workforce, fitting seamlessly with the report’s theme of digital
transformation.

Role Model Companies at NCPEDP- LTI Mindtree Helen Keller

Awards-2022: A testament to our commitment to fostering an
inclusive environment, aligning with our thematic emphasis on
sustainable and inclusive growth.

Business Excellence through Learning & Development at BML

Munjal Awards: Recognition of our efforts in enhancing learning
and development initiatives, aligning with our broader report theme
of nurturing a capable, future-ready workforce.
Integrated Annual Report
2022-23 125

Detailed List of Awards for FY2023

Strategy, Model & Capitals

ISTD 31st National Awards for Innovative Training Practices by
ISTD, New Delhi: This award validates our innovative training
practices, underpinning our commitment to empowering our
employees with the skills needed for the future, resonating with
our theme of building a digitally adept workforce.

Notice
Pioneering Work in Creating Future Ready Inclusive Organization
at IAC Corporate Awards 2023: An accolade that reinforces our
commitment to building a future-ready, inclusive organization,
aligning perfectly with our broader report theme of sustainable and
inclusive banking.

Statutory Reports
Best Organization for PWD Inclusion at Business World
People & Ask Insights “Disability Positive Awards”: This award
acknowledges our efforts to create an inclusive environment for
people with disabilities, mirroring our broader theme of sustainable
and inclusive growth.

Financial Statements

Emphasizing Diversity - A Vibrant Staffing Strategy & Planning

Workforce We implement a comprehensive approach to gauge
staffing needs in various cadres annually, with an eye
To serve our clients with unrivalled excellence, we strive to
on evolving factors like business growth, future branch
sustain a diverse, talented, and engaged workforce across
expansion, and attrition through retirements, resignations,
all our functional outlets and fields. Such a workforce
or voluntary retirements. This strategy is steeped in
is integral to our report’s theme: shaping a future-ready,
meticulous analysis and flexible planning, which enhances
digital, and sustainable banking framework.
staffing efficiency and ensures our readiness for the digital
and sustainable future of banking.
 Integrated Annual Report
126 2022-23

Energising Human Capital

Towards a Digital, Sustainable Future

75,594
Diversity and Inclusion in Workforce
Our commitment to diversity, inclusion, and equality
remains unflinching as a bank. The government’s Our total manpower as of March 2023, showing resilience and adaptability
reservation policies are strictly adhered to, as reflected in amid changing banking landscapes.
our workforce distribution as of March 31, 2023, illustrated
through a pie chart:
» Scheduled Castes (SCs): 19.67%
» Scheduled Tribes (STs): 7.91% 28.82%
The percentage of female employees in 2023, signalling our commitment to
» Other Backward Classes (OBCs): 30.10% gender equality.

» Ex-Servicemen: 6.23%
» Women: 28.82%
» Minority Communities: 7.14%
SC, ST & OBC
The representation of SC, ST, and OBC in our staff strength is robust, at
These statistics aren’t merely numbers but tangible proof
19.67%, 7.91%, and 30.10%, respectively, indicating our dedication to
of our relentless dedication to fostering inclusivity in social inclusion.
the workforce. Moreover, these figures echo our pledge
towards a more diverse, sustainable, and inclusive banking

6.23%
landscape, reflecting our report’s overarching theme.

Our staffing of ex-servicemen stands, underscoring our recognition of the

skills and experience they bring to our institution.

Union Prerna Project: Fostering Skills and Well-being for a Digitally Capable, Resilient Workforce

1. 2. 3.

Skill Profiling Exercise: Succession Planning Exercise: Wings Program For Branch Heads
(Scale IV & Above):
We’ve embarked on a skill Our innovative Talent Management
assessment and gap analysis & Succession Planning Tool ensures The Wings Program is our
initiative for Scale 4 & 5 employees, business continuity and seamless commitment to nurturing female
employing a dedicated in-house tool. leadership transition. By identifying leadership within our ranks. Through
This step helps identify traditional potential successors and assessing this exclusive training program,
and new-age banking skills, guide them against key competencies, we develop a suite of crucial skills,
training needs, and foster future- we’re preparing our future leaders including decision-making, negotiation,
proof competencies crucial to our today. and time management, fostering
evolving business landscape. women’s growth and leadership.

4. 5.

Power Him & Empower Her: Employee Wellness (Employee

Assistance Program):
Addressing gender-specific career
challenges, these committees Union Prerna’s Suraksha- HR Benefits
provide platforms for dialogues on Program focuses on the holistic
issues like career progression and well-being of our employees. Offering
promotion reluctance. Our approach counseling services, we assist employees
incorporates interactive tools like in managing personal and professional
workshops and webinars, combining challenges, striving towards improved
workforce development with CSR mental health, increased productivity, and
initiatives. reduced stress levels
Integrated Annual Report
2022-23 127

Learning and Development: Building a

Future-Ready, Digitally Skilled Workforce 1,633
Number of Training Programmes Conducted during FY2023
Our Learning & Development initiatives are not just
ambitious, they are anchored in equipping our workforce

Strategy, Model & Capitals

with digital proficiency and fostering a culture of
sustainable practices. Through Union Learning Academies,
external partnerships, and modernized training methods,
we are cultivating a talent pool primed for a digital and
13,98,470
Total Hours of Training Provided during FY2023
green future. These efforts signify our dedication to a
sustainable and digitally advanced future, preparing our
employees for a transformative banking experience and
thereby, contributing to a digitally empowered, sustainable Employee engagement, retention, and
India.
talent attraction
“What gets measured gets managed”, said Peter

Notice
Bridging the Digital Gap: Language Inclusion for
Comprehensive Digital Accessibility We firmly believe in Drucker. Employee retention and engagement levels
inclusivity as a core aspect of sustainability. Therefore, our are vital factors employers often strive to influence.
commitment to promoting the official language reflects in By introducing strategies to improve engagement and
the digital banking services we provide, facilitating digital retention, companies set themselves a strong foundation
inclusion across different language demographics. This for success. Utilising talent management to realise these
practice democratizes digital banking, paving the way for a targets is an essential step to achieving this.
more inclusive and digitally proficient India, resonating with
our theme of sustainability and digitalisation. Implementing employee engagement and retention
strategies through improved talent management is a
tried and tested way to build a committed and engaged

Statutory Reports
Through our strategic endeavours and investment workforce. This is why leading companies factor talent
management and employee engagement into their central
in human capital, we are accelerating India’s
strategic plans.
trajectory towards becoming a digital and green
powerhouse, underscoring our commitment Defining Employee Engagement and
to crafting lasting value for stakeholders and Retention
contributing to the global effort of achieving net- Employee engagement creates a positive working
zero emissions. environment in which employees feel willing and able to
perform their best. Employee engagement is more than

Financial Statements
just a happy or satisfied workforce. Whilst happiness
Through our strategic endeavours, we’re driving growth is essential in employee engagement, to create a truly
in a digital, sustainable India, backed by a diverse and engaged team, elements such as communication,
digitally skilled workforce. Investing in human capital is collaboration, and well-being must be addressed to realise
our commitment to crafting lasting value for stakeholders, one’s ambitions.
accelerating India’s trajectory towards becoming a digital,
green powerhouse, and contributing to the global effort of An employee engagement strategy works with employee
achieving net-zero emissions. retention plans to improve engagement. Employee
retention refers to a Bank’s ability to keep existing
employees by using employee engagement as a retention
tool. A Bank often introduces employee retention initiatives
to develop and maintain an environment where existing
employees feel supported and want to remain within your
Bank. Retaining existing employees reduces recruitment
costs and the time and effort it takes to train new starters.
 Integrated Annual Report
128 2022-23

Energising Human Capital

Towards a Digital, Sustainable Future

Significance of Talent Management in the 2. Antenatal Check-up Scheme: Acknowledging the

importance of maternal health, we provide up to
Age of Sustainability and Digitalisation
` 5000 for antenatal check-ups for female employees.
Talent management, geared towards attracting, identifying, This benefit can be claimed twice during an
nurturing, and retaining valuable employees, has employee’s service tenure.
profound implications for an organisation’s drive towards
sustainability and digital transformation. These initiatives, 3. Child Care Facility Scheme: Recognizing the
acting as the pulse of employee engagement and retention, challenges of modern working parents, we provide
are pivotal for Union Bank’s success in the evolving digital reimbursement of ` 3000 per child (up to two
era and our pursuit of sustainability. The absence of a dependent children under five) on a declaration basis,
comprehensive talent management system can result supporting both female and single male employees.
in a disengaged workforce, less likely to excel and more 4. Group Accidental Insurance Scheme: Prioritising the
prone to leave, hindering our journey towards a sustainable, safety of our team, we provide all staff members,
digitally empowered future. including board members, with accident coverage
ranging from ` 6 lakhs to ` 45 lakhs, with your Bank
The urgency to captivate employees through compelling absorbing the insurance premium cost.
strategies is more vital now than ever, given the significant
5. Group Insurance Scheme: We have also instituted a
role of digitalisation and sustainability. Talent management
scheme covering outstanding loan amounts for Staff
is our strategic tool for this engagement, aligning with our
Housing Loans, Staff Conveyance Loans, and Staff
objective of sustainable growth and digital transformation.
Overdrafts.
This unified approach is essential for Union Bank to thrive
amidst the digital age’s challenges and opportunities.
Creating an Inclusive Workforce
Talent management can effectively bolster our Aligning with the government’s policy on reservations,
engagement and retention efforts by fostering a culture Union Bank of India takes pride in cultivating a diverse
that encourages a dedicated workforce. The digitalisation workforce that includes representation from SCs, STs,
and sustainability themes come to life in three critical OBCs, and individuals with disabilities across all levels.
areas of talent management - onboarding, performance, Our unwavering commitment to inclusivity brings together
and retention. This approach prepares us to navigate and a variety of perspectives and experiences, creating a rich,
excel in the digital landscape, while also making strides vibrant environment that fuels innovation and propels our
towards a sustainable future. forward momentum.

Caring for Employee Health, Safety and

Well-being
At the heart of our operations, we value the health, safety,
2,488
Differently-abled employees at your Bank across all cadres
and well-being of our employees as fundamental to our
success. We believe that by addressing their needs and

21,790
ensuring their general welfare, we empower them to
reach their potential, boost creativity and productivity,
foster positive relationships, and effectively manage
stress, thus positively impacting both their personal and The staff strength of your Bank who are Women

our organisational development. In light of this, we have

implemented several key schemes:
1. Annual Health Check-up Scheme: This initiative Empowering Women
provides employees aged 35 and above with annual As part of our sustained commitment to gender equality,
health check-up reimbursements ranging from ` 2200 we’ve enacted numerous initiatives to empower women
to ` 5000. Mandatory tests for those aged 40+ and across all cadres. The cornerstone of our policy is the
executives include a comprehensive set of analyses Prevention of Sexual Harassment (POSH) mechanism,
covering a broad spectrum of health aspects. which we uphold with absolute commitment, ensuring
Integrated Annual Report
2022-23 129

prompt, impartial action and maximum confidentiality programme. This programme aims to equip employees
for every complaint. Sexual Harassment Redressal with the means to manage themselves better, lead fuller
Committees (SHRCs) are instituted at each administrative lives, become more efficient in their daily living, and
level, from regional and zonal offices to the Central Office. eliminate self-damaging habits. Eventually, they should
Beyond this, we practice positive discrimination, with be able to manage others and improve their personal and

Strategy, Model & Capitals

certain relaxations in promotion and transfer/posting professional relationships by cultivating empathy and
cycles for women, SC/ST/OBC employees, and Persons understanding.
with Disabilities (PWD), creating an environment conducive
to their comfort and growth. Employee Code of Conduct and Whistle
In response to the COVID-19 pandemic, we have issued
Blower Mechanism
guidelines including staggered timings and work-from- Employees’ Code of Conduct: In exercise of the powers
home provisions for employees with special needs, conferred by section 19 of your Banking Companies
pregnant women, and those with co-morbidities. A COVID (Acquisition and Transfer of Undertakings) act, 1970 (5
Tracker assists in prompt decision-making while local of 1970), the Board of Directors of Union Bank of India, in

Notice
COVID Assistance Teams (CATs) provide rapid aid. We’ve consultation with the Reserve Bank and with the previous
also organised vaccination drives for employees and sanction of the Central Government, is responsible for
their families. Our leave benefits include two separate forming the Conduct regulations.
sabbatical leave policies, one for all employees for higher
studies and another specifically for women, recognising Whistle-Blower Mechanism: Your Bank has framed and
their dual roles. Additionally, we provide extended adopted the Whistle Blower Policy to provide an avenue for
maternity leave (six months), surpassing the statutory Employees of your Bank and Directors on the Board to raise
requirement, and paternity leave, affirming our unwavering concerns regarding any misconduct with an assurance of
commitment to inclusivity and gender balance. confidentiality and protection to the Whistle Blower.

Ethics Training: Ethics training programmes are

Wellness

Statutory Reports
designed to promote ethical behaviour. An ethics training
The Bank’s well-being and Engagement Strategy addresses programme provides employees with instructions on
a spectrum of holistic enablers across physical, mental, dealing with ethical dilemmas when they occur and
emotional, and spiritual well-being. improving their overall ethical conduct. Details of training
conducted by our Bank on ethics were as follows:
‘Being a Role Model’: As part of its wellness program,
your Bank has designed a unique “Being a Role Model”

Internal Training

Financial Statements
Training FY 2021-22 FY 2022-23
No. of Programmes Nos. Trained No. of Programmes Nos. Trained
Ethics training, employee
communications on ethics matters, 7 210 410 13,790
and ethics programme assessment

External Training
Training FY 2021-22 FY 2022-23
No. of Programmes Nos. Trained No. of Programmes Nos. Trained
Ethics training, employee
communications on ethics matters, 3 9 1 11
and ethics programme assessment
 130

GRI Index Table

Item GRI Disclosure Disclosure GRI Standard Relevant SASB UNSDG Page (s) Material Material Issue Description
Standard Number Framework Reference Reference Issue #
where where
applicable applicable

1 GRI 102 1 Name of the organization GRI 102: General n/a n/a Page 8 36 Leadership & Governance -
Disclosures 2016 Reputation, Communication and
Awareness
2 GRI 102 2 Activities, brands, products, GRI 102: General n/a n/a Page 42 23 Business Model & Innovation -
and services Disclosures 2016 Significance of Product Design
and Innovation
3 GRI 102 3 Location of headquarters GRI 102: General n/a n/a Page 8 32 Leadership & Governance -
Disclosures 2016 Management of the Legal &
Regulatory Environment
4 GRI 102 4 Location of operations GRI 102: General n/a n/a Pages 65, 178 39 Economy - Impact on Local
Disclosures 2016 Communities
5 GRI 102 5 Ownership and legal form GRI 102: General n/a n/a Page 9 36 Leadership & Governance -
Disclosures 2016 Reputation, Communication and
Awareness
6 GRI 102 6 Markets served GRI 102: General n/a n/a Pages 65, 209 25 Business Model & Innovation -
Disclosures 2016 Access to Capital and Customers
7 GRI 102 7 Scale of the organization GRI 102: General n/a n/a Page 42 24 Business Model & Innovation
Disclosures 2016 - Need for Business Model
Resilience
8 GRI 102 8 Information on employees GRI 102: General HC-A, HC-B 8.5, 8.8 Page 120 18 Human Capital - Labour Practice &
and other workers Disclosures 2016 Employment
9 GRI 102 9 Supply chain GRI 102: General CG-AA 12.6 Page 42 26 Business Model & Innovation -
Disclosures 2016 Role of Supply Chain Management
10 GRI 102 10 Significant changes to the GRI 102: General n/a n/a Page 42 24 Business Model & Innovation
organization and its supply Disclosures 2016 - Need for Business Model
chain Resilience
11 GRI 102 11 Precautionary Principle or GRI 102: General CG-AA 16.5 Page 91 & 191 33 Leadership & Governance - Risk
approach Disclosures 2016 Management
12 GRI 102 12 External initiatives GRI 102: General CG-AA 17.16 Page104 17 Social Capital - Social
Disclosures 2016 Development & Community
Involvement
13 GRI 102 13 Membership of associations GRI 102: General n/a n/a Page 191 36 Leadership & Governance -
Disclosures 2016 Reputation, Communication and
Awareness
2022-23
Integrated Annual Report
GRI Index Table
2022-23

Item GRI Disclosure Disclosure GRI Standard Relevant SASB UNSDG Page (s) Material Material Issue Description
Standard Number Framework Reference Reference Issue #
where where
applicable applicable
Integrated Annual Report

14 GRI 102 14 Statement from senior GRI 102: General n/a n/a Pages 20 - 23, 29 Leadership & Governance
decision-maker Disclosures 2016 29, 48 - 49 - Business Ethics and Anti-
Corruption Measures
15 GRI 102 15 Key impacts, risks, and GRI 102: General CG-AA 13.1 Page 28 33 Leadership & Governance - Risk
opportunities Disclosures 2016 Management
16 GRI 103 1 Explanation of the material GRI 103: n/a n/a Pages 36 - 41 33 Leadership & Governance - Risk
topic and its Boundary Management Management
Approach 2016
17 GRI 201 1 Direct economic value GRI 201: Economic FB-EC 8.1, 8.2 Pages 44 - 45 37 Economy - Commodity Price
generated and distributed Performance 2016 Volatility
18 GRI 202 1 Ratios of standard entry level GRI 202: Market HC-B 5.1, 8.5 Page 120 22 Human Capital - Employee
wage by gender compared to Presence 2016 Engagement, Diversity & Inclusion
local minimum wage
19 GRI 202 2 Proportion of senior GRI 202: Market HC-B 8.5 Page 163 39 Economy - Impact on Local
management hired from the Presence 2016 Communities
local community
20 GRI 203 1 Infrastructure investments GRI 203: Indirect IF-EP 9.1, 9.3 Pages 80 - 89 24 Business Model & Innovation
and services supported Economic Impacts - Need for Business Model
2016 Resilience
21 GRI 203 2 Significant indirect economic GRI 203: Indirect IF-EP 8.1, 8.2 Pages 48 - 58 39 Economy - Impact on Local
impacts Economic Impacts Communities
2016
22 GRI 205 1 Operations assessed for risks GRI 205: Anti- CG-AA 16.5 Pages 20 - 23, 29 Leadership & Governance
related to corruption corruption 2016 29, 48 - 49 - Business Ethics and Anti-
Corruption Measures
23 GRI 205 2 Communication and training GRI 205: Anti- CG-AA 16.5 Pages 41, 129, 29 Leadership & Governance
about anti-corruption policies corruption 2016 188, 235 - Business Ethics and Anti-
and procedures Corruption Measures
24 GRI 205 3 Confirmed incidents of GRI 205: Anti- CG-AA 16.5 Pages 20 - 23, 29 Leadership & Governance
corruption and actions taken corruption 2016 29, 48 - 49 - Business Ethics and Anti-
Corruption Measures
25 GRI 206 1 Legal actions for anti- GRI 206: Anti- CG-CC 16.3 Pages 20 - 23, 31 Leadership & Governance -
competitive behavior, anti- competitive Behavior 29, 48 - 49 Competitive Behaviour
trust, and monopoly practices 2016
26 GRI 302 1 Energy consumption within GRI 302: Energy 2016 IF-EU, IF-EP 7.3, 12.2 Pages 98 - 103 3 Environment - Energy Management
the organization & Renewable Energy Usage
131

Financial Statements Statutory Reports Notice Strategy, Model & Capitals

 132

GRI Index Table

Item GRI Disclosure Disclosure GRI Standard Relevant SASB UNSDG Page (s) Material Material Issue Description
Standard Number Framework Reference Reference Issue #
where where
applicable applicable

27 GRI 302 3 Energy intensity GRI 302: Energy 2016 IF-EU, IF-EP 7.3, 12.2 Pages 98 - 103 3 Environment - Energy Management
& Renewable Energy Usage
28 GRI 302 4 Reduction of energy GRI 302: Energy 2016 IF-EU, IF-EP 7.3, 12.2 Pages 98 - 103 3 Environment - Energy Management
consumption & Renewable Energy Usage
29 GRI 303 1 Interactions with water as a GRI 303: Water and IF-EP, EM-MM 6.4, 12.2 Pages 98 - 103 4 Environment - Water Management
shared resource Effluents 2018
30 GRI 304 1 Operational sites owned, GRI 304: Biodiversity EM-MM 15.1, 15.5 Page 46 7 Environment - Biodiversity
leased, managed in, or 2016 Management
adjacent to, protected areas
and areas of high biodiversity
value outside protected areas
31 GRI 305 1 Direct (Scope 1) GHG GRI 305: Emissions IF-EU, IF-EP 13.1, 13.2 Pages 46, 90, 98 1 Environment - Climate Change
emissions 2016 Mitigation & Adoption
32 GRI 305 2 Energy indirect (Scope 2) GRI 305: Emissions IF-EU, IF-EP 13.1, 13.2 Pages 46, 90, 98 1 Environment - Climate Change
GHG emissions 2016 Mitigation & Adoption
33 GRI 305 3 Other indirect (Scope 3) GHG GRI 305: Emissions IF-EU, IF-EP 13.1, 13.2 Pages 46, 90, 98 1 Environment - Climate Change
emissions 2016 Mitigation & Adoption
34 GRI 305 4 GHG emissions intensity GRI 305: Emissions IF-EU, IF-EP 13.1, 13.2 Pages 46, 90, 98 1 Environment - Climate Change
2016 Mitigation & Adoption
35 GRI 305 5 Reduction of GHG emissions GRI 305: Emissions IF-EU, IF-EP 13.1, 13.2 Pages 46, 90, 98 1 Environment - Climate Change
2016 Mitigation & Adoption
36 GRI 306 1 Waste generation and GRI 306: Waste 2020 EM-MM 12.4, 12.5 Page 46 6 Environment - Waste Management
significant waste-related
impacts
37 GRI 307 1 Non-compliance with GRI 307: EM-MM, IF-EP 16.3 Pages 46, 90, 98 8 Environment - Environment
environmental laws and Environmental Compliance
regulations Compliance 2016
38 GRI 401 1 New employee hires and GRI 401: Employment HC-B 8.5, 8.6 Pages 120 - 129 18 Human Capital - Labour Practice &
employee turnover 2016 Employment
39 GRI 402 1 Minimum notice periods GRI 402: Labor/ n/a n/a Pages 120 - 129 22 Human Capital - Employee
regarding operational Management Engagement, Diversity & Inclusion
changes Relations 2016
40 GRI 403 1 Occupational health and GRI 403: EM-MM, IF-EP 8.8 Pages 120 - 129 20 Human Capital - Employee Health
safety management system Occupational Health & Safety
and Safety 2018
2022-23
Integrated Annual Report
GRI Index Table
2022-23

Item GRI Disclosure Disclosure GRI Standard Relevant SASB UNSDG Page (s) Material Material Issue Description
Standard Number Framework Reference Reference Issue #
where where
applicable applicable
Integrated Annual Report

41 GRI 403 2 Hazard identification, risk GRI 403: EM-MM, IF-EP 8.8 Pages 120 - 129 20 Human Capital - Employee Health
assessment, and incident Occupational Health & Safety
investigation and Safety 2018
42 GRI 403 3 Occupational health services GRI 403: EM-MM, IF-EP 8.8 Pages 120 - 129 20 Human Capital - Employee Health
Occupational Health & Safety
and Safety 2018
43 GRI 403 4 Worker participation, GRI 403: EM-MM, IF-EP 8.8 Pages 120 - 129 20 Human Capital - Employee Health
consultation, and Occupational Health & Safety
communication on and Safety 2018
occupational health and
safety
44 GRI 404 1 Average hours of training per GRI 404: Training and HC-B 8.5 Pages 120 - 129 19 Human Capital - Training and Skill
year per employee Education 2016 Development
45 GRI 404 2 Programs for upgrading GRI 404: Training and HC-B 8.5 Pages 120 - 129 19 Human Capital - Training and Skill
employee skills and transition Education 2016 Development
assistance programs
46 GRI 405 1 Diversity of governance GRI 405: Diversity HC-B 5.1, 5.5 Pages 120 - 129 22 Human Capital - Employee
bodies and employees and Equal Engagement, Diversity & Inclusion
Opportunity 2016
47 GRI 405 2 Ratio of basic salary and GRI 405: Diversity HC-B 5.1, 5.5 Pages 120 - 129 18 Human Capital - Labour Practice &
remuneration of women to and Equal Employment
men Opportunity 2016
48 GRI 406 1 Incidents of discrimination GRI 406: Non- n/a n/a Pages 120 - 129 22 Human Capital - Employee
and corrective actions taken discrimination 2016 Engagement, Diversity & Inclusion
49 GRI 412 1 Operations that have GRI 412: Human FB-HR, HC-B 16.1, 16.2 Page 104 10 Social Capital - Human Rights
been subject to human Rights Assessment
rights reviews or impact 2016
assessments
50 GRI 418 1 Substantiated complaints GRI 418: Customer TC-SI-220a.1, 16.3, 16.10 Page 104 11 Social Capital - Customer Privacy
concerning breaches of Privacy 2016 TC-SI-220a.2
customer privacy and losses
of customer data
51 GRI 419 1 Non-compliance with laws GRI 419: FB-HR, HC-B 16.3, 16.6 Page 91 & 191 32 Leadership & Governance -
and regulations in the social Socioeconomic Management of the Legal &
and economic area Compliance 2016 Regulatory Environment
133

Financial Statements Statutory Reports Notice Strategy, Model & Capitals

 134

GRI Index Table

Item GRI Disclosure Disclosure GRI Standard Relevant SASB UNSDG Page (s) Material Material Issue Description
Standard Number Framework Reference Reference Issue #
where where
applicable applicable

52 GRI Sector FS1 Policies with specific GRI Financial IF-SS 8.3, 8.4 Page 91 & 191 33 Leadership & Governance - Risk
Disclosures environmental and social Services Sector Management
for Financial components applied to Disclosures 2013
Services business lines
53 GRI Sector FS2 Procedures for assessing and GRI Financial IF-SS 8.3, 8.4 Pages 28 - 35 33 Leadership & Governance - Risk
Disclosures screening environmental and Services Sector Management
for Financial social risks in business lines Disclosures 2013
Services
54 GRI Sector FS3 Processes for monitoring GRI Financial IF-SS 8.3, 8.4 Pages 90 - 97 33 Leadership & Governance - Risk
Disclosures clients' implementation Services Sector Management
for Financial of and compliance with Disclosures 2013
Services environmental and social
requirements included in
agreements or transactions
55 GRI Sector FS4 Process(es) for improving GRI Financial HC-B 8.5 Page 120 19 Human Capital - Training and Skill
Disclosures staff competency to Services Sector Development
for Financial implement the environmental Disclosures 2013
Services and social policies and
procedures as applied to
business lines
56 GRI Sector FS5 Interactions with clients/ GRI Financial IF-SS 8.3, 8.4 Page 104 13 Social Capital - Clients'
Disclosures investees/business partners Services Sector Sustainability
for Financial regarding environmental and Disclosures 2013
Services social risks and opportunities
57 GRI Sector FS6 Percentage of the portfolio GRI Financial FN-AC-410a.1 10.2, 10.3 Page 42 28 Business Model & Innovation -
Disclosures for business lines by specific Services Sector Long-Term Asset Management
for Financial region, size, and by sector Disclosures 2013
Services
58 GRI Sector FS7 Monetary value of products GRI Financial FN-AC-410a.2 1.4, 10.2 Page 104 17 Social Capital - Social
Disclosures and services designed to Services Sector Development & Community
for Financial deliver a specific social Disclosures 2013 Involvement
Services benefit for each business line
broken down by purpose
59 GRI Sector FS8 Monetary value of products GRI Financial FN-AC-410a.3 13.2, 13.3 Pages 46, 90, 98 1 Environment - Climate Change
Disclosures and services designed Services Sector Mitigation & Adoption
for Financial to deliver a specific Disclosures 2013
Services environmental benefit for
each business line broken
down by purpose
2022-23
Integrated Annual Report
GRI Index Table
2022-23

Item GRI Disclosure Disclosure GRI Standard Relevant SASB UNSDG Page (s) Material Material Issue Description
Standard Number Framework Reference Reference Issue #
where where
applicable applicable
Integrated Annual Report

60 GRI Sector FS10 Percentage and number GRI Financial FN-AC-410a.4 12.6, 12.8 Pages 90 - 97 35 Leadership & Governance -
Disclosures of companies held in Services Sector Responsible Investment
for Financial the institution’s portfolio Disclosures 2013
Services with which the reporting
organization has interacted
on environmental or social
issues
61 GRI Sector FS11 Percentage of assets subject GRI Financial FN-AC-410a.5 12.6 Pages 90 - 97 35 Leadership & Governance -
Disclosures to positive and negative Services Sector Responsible Investment
for Financial environmental or social Disclosures 2013
Services screening
62 GRI Sector FS13 Access points in low- GRI Financial FN-AC-550a.2 8.10, 10.2 Pages 53 - 56, 25 Business Model & Innovation -
Disclosures populated or economically Services Sector 69, 168 Access to Capital and Customers
for Financial disadvantaged areas by type Disclosures 2013
Services
63 GRI Sector FS14 Initiatives to improve access GRI Financial FN-AC-550a.3 1.4, 10.2 Pages 53 - 56, 17 Social Capital - Social
Disclosures to financial services for Services Sector 69, 168 Development & Community
for Financial disadvantaged people Disclosures 2013 Involvement
Services
64 GRI Sector FS15 Policies for the fair design GRI Financial FN-AC-550a.4 10.2, 10.3 Page 104 14 Social Capital - Product Quality &
Disclosures and sale of financial products Services Sector Safety
for Financial and services Disclosures 2013
Services
65 GRI Sector FS16 Initiatives to enhance GRI Financial FN-AC-550a.5 4.4, 4.7 Pages 23, 75, 19 Human Capital - Training and Skill
Disclosures financial literacy by type of Services Sector 106, 161, 175 Development
for Financial beneficiary Disclosures 2013
Services

Disclaimer:
Below is an expanded GRI index table that includes a selection of the standards that might be most relevant to a Bank. This cross-reference table is not exhaustive and the exact standards and
disclosures applicable to the Bank will depend on our materiality assessment and the specific nature of our operations. Please consult with the Sustainability Accounting Standards Board (SASB)
and United Nations (UN) documentation for more information on the particular SASB references and UNSDGs, respectively. SASB codes are abbreviated, and HC stands for Human Capital, FB for
Financials & Banking, IF for Infrastructure, EM for Extractives & Minerals Processing, CG for Corporate Governance, and TC for Technology & Communications. The SASB references and United
Nations Sustainable Development Goals (UNSDGs) relevant to the GRI Standards listed in this table are a general alignment. They may not completely align with the specifics of our operations
and strategies. Please note that not all GRI Standards have an equivalent SASB code or are linked to a UNSDG. The same applies to UNSDGs and SASB codes. This is a general guideline and
might not cover all the specifics of our organization.
135

Financial Statements Statutory Reports Notice Strategy, Model & Capitals

 Integrated Annual Report
136 2022-23

NOTICE OF 21st ANNUAL GENERAL MEETING

NOTICE is hereby given pursuant to Regulation 56 of the of Capital and Disclosure Requirements) Regulations, 2018
Union Bank of India (Shares and Meetings) Regulations, [the SEBI (ICDR) Regulations], as amended, the SEBI (Listing
1998 that the 21st (Twenty First) Annual General Meeting Obligations and Disclosure Requirements) Regulations, 2015
(“AGM”) of the Shareholders of Union Bank of India (“Bank”) [the SEBI (LODR) Regulations] as amended, the SEBI (Issue
will be held on Friday, 4th August, 2023 at 11.00 am (IST)at and Listing of Non-Convertible Securities) Regulations,
Central Office, Union Bank of India, Mumbai (the deemed 2021, as amended, the Foreign Exchange Management
venue of the Meeting) through Video Conferencing (VC) or (Transfer or Issue of Security by a Person Resident Outside
Other Audio Visual Means (OAVM) facility to transact the India), Regulations, 2017 as amended and in accordance
following business: with the applicable rules, regulations, guidelines, circulars
and clarifications if any, prescribed by the RBI, SEBI,
Ordinary Business: notifications/circulars and clarifications under the Banking
Regulation Act, 1949, the Securities and Exchange Board of
Item No. 1:
India Act, 1992 and all other applicable laws and all other
To discuss, approve and adopt the Audited Standalone competent authorities from time to time and subject to the
and Consolidated Balance Sheet of the Bank as at 31st Uniform Listing Agreements entered into with the Stock
March 2023, Standalone and Consolidated Profit and Loss Exchanges where the equity shares of the Bank are listed,
Account for the year ended on that date, the Report of the consent of the members of the Bank be and is hereby
Board of Directors on the working and activities of the Bank accorded to the Board of Directors of the Bank (hereinafter
for the period covered by the Accounts and the Auditors’ called “the Board” which shall be deemed to include any
Report on the Balance Sheet and Accounts. Committee which the Board may have constituted or
hereafter constitute to exercise its powers including the
Item No. 2: powers conferred by this Resolution) to create, offer, issue
To declare Dividend of ` 3/- per Equity Share of `10/- each and allot in one or more tranches (including with provision
for the Financial Year 2022-23. for reservation on firm allotment and/or competitive basis
of such part of issue and for such categories of persons
Special Business: as may be permitted by the law then applicable) by way of
offer document (s)/prospectus or such other document(s),
Item No. 3:
in India or abroad for an aggregate amount not exceeding
Raising of Capital of the Bank by way of issuance of fresh `10,100 crore (Rupees Ten Thousand One Hundred Crore
Equity Shares and / or by issuance of Additional Tier-1 / only) subject to:
Tier-2 Capital as per BASEL III Guidelines
 such number of equity shares and / or Preference
To consider and if thought fit, to pass with or without Shares (whether Cumulative or not; convertible into
modification(s), the following resolution(s) as a Special equity shares or not) in accordance with the guidelines
Resolution: framed by RBI from time to time, specifying the class
of preference shares, the extent of issue of each
“RESOLVED THAT pursuant to the provisions of Section class of such preference shares, whether perpetual or
3(2B) of the Banking Companies (Acquisition and Transfer redeemable, the terms and conditions subject to which
of Undertakings) Act, 1970 (“Act”), Clause 20 of the each class of preference shares may be issued and / or
Nationalised Banks (Management and Miscellaneous other permitted securities which are capable of being
Provisions) Scheme, 1970 (“Scheme”), the Union Bank converted into equity or not for cash (whether at a
of India (Shares and Meetings) Regulations, 1998 ( discount or premium to the market price or issue price
“Regulations”) and other applicable provisions, if any, or floor price)for an amount not exceeding `8,000 crore
and subject to the approvals, consents, sanctions, if any, (Rupees Eight Thousand crore only) which together
of the Reserve Bank of India (“RBI”), the Government of with the existing Paid-up Equity share capital of
India (“GOI”), the Securities and Exchange Board of India `6834.74 crore (Rupees Six Thousand Eight Hundred
(“SEBI”), and / or any other authority as may be required Thirty Four Crore and Seventy Four lakhs only) will
in this regard and subject to such terms, conditions and be within the total authorized capital of `10,000 crore
(Rupees Ten Thousand Crore Only) of the Bank, being
modifications thereto as may be prescribed by them in
the ceiling in the Authorised Capital of the Bank as per
granting such approvals and which may be agreed to by the
Section 3(2A) of the Act, or to the extent of enhanced
Board of Directors of the Bank and subject to the SEBI(Issue
Integrated Annual Report
2022-23 137

Authorised Capital as per the Amendment (if any ), that Regulations, in such manner and wherever necessary, in
may be made to the Act in future, whichever is higher, consultation with the lead managers and /or underwriters
in such a way that the Government of India shall at all and /or other advisors, and/or such terms and conditions as
times hold not less than 51% of the paid-up Equity Share the Board may, in its absolute discretion, decide in terms of
Capital of the Bank. the SEBI (ICDR) Regulations, other regulations and any and
all other applicable laws, rules, regulations and guidelines,
 such number of perpetual debt instruments, Non- and/or whether or not the proposed investor(s) are existing
convertible debentures including but not limited shareholders of the Bank.”
to Sub-ordinated Debentures, Bonds and / or other

Strategy, Model & Capitals

debt securities on private placement / public issue “RESOLVED FURTHER THAT in accordance with the
basis in one or more tranches which may classify for
provisions of the Listing Regulations, the provisions of
Tier-1 or Tier-2 Capital (including Green/Foreign
the Act, the provisions of the Union Bank of India (Shares
Currency Denominated Additional Tier -1 /Tier -2 Bonds)
and Meetings) Regulations, 1998, the provisions of the
as identified and classified by RBI, for an amount not
SEBI (ICDR) Regulations, the provisions of the Foreign
exceeding ` 2,100 crore (Rupees Two Thousand One
Exchange Management Act, 1999 and the Foreign Exchange
Hundred crore only).
Management (Transfer or Issue of Security by a Person
to one or more of the members, employees of the Resident Outside India) Regulations, 2017, and subject
Bank, Indian nationals, Non-Resident Indians (“NRIs”), to requisite approvals, consents, permissions and/or
Companies, private or public, Investment Institutions,
sanctions of Securities and Exchange Board of India (SEBI),
Limited Liability Partnerships (LLPs), Societies, Trusts,
Stock Exchanges, Reserve Bank of India (RBI), Department
Research Organizations, Qualified Institutional Buyers
for Promotion of Industry and Internal Trade - Ministry of
(“QIBs”) like Foreign Institutional Investors (“FIIs”)/ Foreign

Notice
Commerce and Industry (DPIIT), Ministry of Finance and all
Portfolio Investors (“FPIs”), Banks, Financial Institutions,
other authorities as may be required (hereinafter collectively
Indian Mutual Funds, Alternate Investment Funds, Foreign
Venture Capital Investors, State Industrial Development referred to as “the Appropriate Authorities”) and subject
Corporations, Insurance Companies, Provident Funds, to such conditions as may be prescribed by any of them
Pension Funds, Development Financial Institutions or other while granting any such approval, consent, permission,
entities, authorities or any other category of investors which and/or sanction (hereinafter referred to as “the requisite
are eligible to invest in equity/preference shares/securities approvals”) the Board, may at its absolute discretion, issue,
of the Bank as per extant regulations/guidelines or any offer and allot, from time to time in one or more tranches,
combination of the above, as may be deemed appropriate equity shares or any securities other than warrants, which

Statutory Reports
by the Bank”. are convertible into or exchangeable with equity shares at
a later date, in such a way that the Government of India at
“RESOLVED FURTHER THAT such issue, offer or allotment any time holds not less than 51% of the Equity Capital of
of equity/preference shares/securities may also be by way the Bank, to Qualified Institutional Buyers (QIBs) (as defined
of Qualified Institutions Placement (QIP), Further Public in Chapter I of the SEBI (ICDR) Regulations pursuant to a
Offer, Rights Issue to public shareholders with or without Qualified Institutions Placement (QIP), as provided for
promoter/promoter group shareholders forgoing their under Chapter VI of the SEBI (ICDR) Regulations, through
entitlement to equity shares, Depository Receipts/ADR/ a placement document and / or such other documents /
GDR, Private Placement of Equity / Compulsorily Convertible writings / circulars / memoranda and in such manner and on
Debentures, Employees Stock Option Scheme or Employee such price, terms and conditions as may be determined by
Stock Purchase Scheme of the Bank or such other mode

Financial Statements
the Board in accordance with the SEBI (ICDR) Regulations or
of issue or combinations of these as may be provided by
other provisions of the law as may be prevailing at that time”
applicable laws, with or without over-allotment or Green
Shoe option and that such offer, issue, placement and
“RESOLVED FURTHER THAT in case of a Qualified
allotment of equity/preference shares/securities be made
Institutions Placement pursuant to Chapter VI of the SEBI
as per the provisions of the Act, RBI Guidelines, the SEBI
(ICDR) Regulations:
ICDR Regulations and all other applicable guidelines issued
by the RBI, SEBI and any other authority as applicable, and
a) The allotment of Securities shall only be made to
at such time or times in such manner and on such terms
Qualified Institutional Buyers within the meaning
and conditions as the Board may, in its absolute discretion,
think fit.” of Chapter I of the SEBI (ICDR) Regulations, such
securities shall be fully paid-up and the allotment of
“RESOLVED FURTHER THAT in respect of the aforesaid such Securities shall be completed within 365 days
issue/s, the Board shall have the absolute authority to decide, from the date of this resolution.”
such price or prices not below the price as determined in b) The Bank in pursuant to provision of Regulation 176(1)
accordance with relevant provisions of the SEBI (ICDR) of SEBI (ICDR) Regulations authorized to offer shares
 Integrated Annual Report
138 2022-23

at a discount of not more than five percent on the floor of the shareholders and that all or any of the powers
price as determined in accordance with the SEBI (ICDR) conferred on the Bank and the Board vide this resolution
Regulations. may be exercised by the Board.”
c) The relevant date for the determination of the floor price
“RESOLVED FURTHER THAT the Board be and is hereby
of the securities shall be in accordance with the SEBI
authorized to enter into and execute all such arrangements
(ICDR) Regulations.”
with any Book Runner(s), Lead Manager(s), Banker(s),
“RESOLVED FURTHER THAT the Board shall have the Underwriter(s), Depository(ies), Registrar(s), Auditor(s),
authority and power to accept any modification in the Arrangers(s) and all such agencies as may be involved or
proposal as may be required or imposed by the GOI/RBI/ concerned in such offering of equity / securities and to
SEBI/Stock Exchanges where the shares of the Bank are remunerate all such institutions and agencies by way of
listed or such other appropriate authorities at the time of commission, brokerage, fees or the like and also to enter
according / granting their approvals, consents, permissions into and execute all such arrangements, agreements,
and sanctions to issue, allotment and listing thereof and as memoranda, documents, etc., with such agencies.”
agreed to by the Board.”
“RESOLVED FURTHER THAT for the purpose of giving effect
“RESOLVED FURTHER THAT the issue and allotment of new to the above, the Board, in consultation with the Lead
equity shares / securities if any, to NRIs, FIIs/FPIs and/or Managers, Underwriters, Advisors and/or other persons
other eligible foreign investments be subject to the approval as appointed by the Bank, be and is hereby authorized to
of the RBI under the Foreign Exchange Management Act, determine the form and terms of the issue(s), including
1999 as may be applicable but within the overall limits set the class of investors to whom the shares/securities are
forth under the Act and by other regulators, as applicable.” to be allotted, number of shares/securities to be allotted
in each tranche, issue price (including premium, if any),
“RESOLVED FURTHER THAT the said new equity shares face value, premium amount on issue/conversion of
to be issued shall be subject to the Union Bank of India Securities/exercise of warrants/redemption of Securities,
(Shares and Meetings) Regulations, 1998, as amended, rate of interest, redemption period, number of equity
and shall rank in all respects pari-passu with the existing shares or other securities upon conversion or redemption
equity shares of the Bank and shall be entitled to dividend or cancellation of the Securities, the price, premium or
declared, if any, in accordance with the statutory guidelines discount on issue/conversion of Securities, rate of interest,
that are in force at the time of such declaration.” period of conversion, fixing of record date or book closure
and related or incidental matters, listings on one or more
“RESOLVED FURTHER THAT the equity shares to be issued stock exchanges in India and/or abroad, as the Board in its
shall be listed with the stock exchanges where the existing absolute discretion deems fit.”
equity shares of the Bank are listed.”
“RESOLVED FURTHER THAT such of the aforesaid securities
“RESOLVED FURTHER THAT for the purpose of giving effect as are not subscribed may be disposed off by the Board in
to any issue or allotment of equity shares/securities, the its absolute discretion in such manner, as the Board may
Board be and is hereby authorized to determine the terms of deem fit and as permissible by law.”
the public offer, including the class of investors to whom the
securities are to be allotted, the number of shares/securities “RESOLVED FURTHER THAT for the purpose of giving effect
to be allotted in each tranche, issue price, premium amount to this Resolution, the Board be and is hereby authorised to
on issue as the Board in its absolute discretion deems fit do all such acts, deeds, matters and things as it may in its
and do all such acts, deeds, matters and things and execute absolute discretion deems necessary, proper and desirable
such deeds, documents and agreements, as they may, in its and to settle any question, difficulty or doubt that may arise
absolute discretion, deem necessary, proper or desirable, in regard to the issue of the shares/securities and further
and to settle or give instructions or directions for settling to do all such acts, deeds, matters and things, finalise and
any questions, difficulties or doubts that may arise in execute all documents and writings as may be necessary,
regard to the public offer, issue, allotment and utilization of desirable or expedient as it may in its absolute discretion
the issue proceeds, and to accept and to give effect to such deem fit, proper or desirable without being required to seek
modifications, changes, variations, alterations, deletions, any further consent or approval of the shareholders or
additions as regards the terms and conditions, as it may, authorise to the end and intent, that the shareholders shall
in its absolute discretion, deem fit and proper in the best be deemed to have given their approval thereto expressly
interest of the Bank, without requiring any further approval by the authority of the Resolution.”
Integrated Annual Report
2022-23 139

“RESOLVED FURTHER THAT the Board be and is hereby To consider and if thought fit, to pass with or without
authorized to delegate all or any of the powers herein modification(s), the following resolution(s) as an Ordinary
conferred to the Committee of Directors for Raising of Capital Resolution:
Funds or the Managing Director & CEO or to the Executive
Director/(s) to give effect to the aforesaid Resolutions.” “RESOLVED THAT pursuant to First Proviso to Regulation
17(1C) of SEBI (Listing Obligations and Disclosure
Item No. 4: Requirements) Regulations, 2015, as amended, read with
Appointment of Shri Laxman S Uppar (DIN: 02453845) as Section 9(3)(a) of the Banking Companies (Acquisition and

Strategy, Model & Capitals

Part-Time Non-Official (Independent) Director of the Bank. Transfer of Undertakings) Act, 1970, the appointment of
Shri Nidhu Saxena vide Government of India’s Notification
To consider and if thought fit, to pass with or without eF.No. 4/2/2021-BO.I dated 21st October 2021 as Executive
modification(s), the following resolution(s) as a Special Director of the Bank for a period of three years from the date
Resolution: of assumption of office i.e., 1st February 2022 or until further
orders, whichever is earlier, be and is hereby approved
“RESOLVED THAT pursuant to Regulation 25(2A) and First on the same terms and conditions as determined by the
Proviso to Regulation 17(1C) of SEBI (Listing Obligations and Government of India.”
Disclosure Requirements) Regulations, 2015, as amended,
read with Section 9(3)(h) of the Banking Companies Item No. 7:
(Acquisition and Transfer of Undertakings) Act, 1970, the Appointment of Ms.A. Manimekhalai (DIN: 08411575) as
nomination of Shri Laxman S Uppar vide Government of Managing Director and CEO of the Bank
India’s Notification F.No. 6/6/2021-BO.I dated 21st March

Notice
2022 as Part-Time Non-Official Director of the Bank for a To consider and if thought fit, to pass with or without
period of three years from the date of notification i.e., 21st modification(s), the following resolution(s) as an Ordinary
March 2022 or until further orders, whichever is earlier, be Resolution:
and is hereby approved on the same terms and conditions
as determined by the Government of India.” “RESOLVED THAT pursuant to First Proviso to Regulation
17(1C) of SEBI (Listing Obligations and Disclosure
Item No. 5: Requirements) Regulations, 2015, as amended, read with
Appointment of Shri Srinivasan Varadarajan (DIN: Section 9(3)(a) of the Banking Companies (Acquisition and
00033882) as Part-Time Non-Official (Independent) Transfer of Undertakings) Act, 1970, the appointment of Ms.

Statutory Reports
Director and Non-Executive Chairman of the Bank A. Manimaekhalai vide Government of India’s Notification
eF.No. 4/4/2021-BO.I dated 3rd June 2022 as Managing
To consider and if thought fit, to pass with or without Director and Chief Executive Officer of the Bank for a period
modification(s), the following resolution(s) as a Special of three years from the date of assumption of office i.e., 3rd
Resolution: June 2022 or until further orders, whichever is earlier, be and
is hereby approved on the same terms and conditions as
“RESOLVED THAT pursuant to Regulation 25(2A) and First determined by the Government of India.”
Proviso to Regulation 17(1C) of SEBI (Listing Obligations
and Disclosure Requirements) Regulations, 2015, as Item No. 8:
amended, read with Section 9(3)(h) of the Banking Appointment of Shri Ramasubramanian S (DIN: 08747165)

Financial Statements
Companies (Acquisition and Transfer of Undertakings) as Executive Director of the Bank
Act, 1970, the nomination of Shri Srinivasan Varadarajan
vide Government of India’s Notification F.No. 6/9/2022-BO.I To consider and if thought fit, to pass with or without
dated 7th November 2022 as Part-Time Non-Official Director modification(s), the following resolution(s) as an Ordinary
and Non-Executive Chairman of the Bank for a period of Resolution:
three years from the date of notification i.e., 7th November
2022 or until further orders, whichever is earlier, be and “RESOLVED THAT pursuant to First Proviso to Regulation
is hereby approved on the same terms and conditions as 17(1C) of SEBI (Listing Obligations and Disclosure
determined by the Government of India.” Requirements) Regulations, 2015, as amended, read with
Section 9(3)(a) of the Banking Companies (Acquisition and
Item No. 6: Transfer of Undertakings) Act, 1970, the appointment of Shri
Appointment of Shri Nidhu Saxena (DIN: 09691292) as Ramasubramanian S vide Government of India’s Notification
Executive Director of the Bank eF.No. 4/6/2021-BO.I dated 21st November 2022 as
Executive Director of the Bank for a period of three years
 Integrated Annual Report
140 2022-23

from the date of assumption of office i.e., 21st November d. In line with the MCA Circulars and SEBI
2022 or until further orders, whichever is earlier, be and Circulars, the Notice of the AGM will be
is hereby approved on the same terms and conditions as made available on the website of the Bank at
determined by the Government of India.” www.unionbankofindia.co.in, on the website of
BSE Limited at www.bseindia.com, on the website
By order of the Board of Directors of National Stock Exchange of India Ltd. at
For UNION BANK OF INDIA www.nseindia.com and also on the website of
KFintech at https://evoting.kfintech.com.
e. As the AGM will be held through VC/OAVM Facility,
the Route Map is not annexed in this Notice as
Place : Mumbai (S.K. Dash) required under Secretarial Standard 2 issued by
Date: 23.06.2023 COMPANY SECRETARY the Institute of Company Secretaries of India.
f. Members may participate in the AGM through
VC/OAVM facility by following the procedure as
NOTES mentioned below which shall be kept open for
the Members from 10.45 AM (IST) i.e. 15 minutes
1. EXPLANATORY STATEMENT before the time scheduled to start the AGM and
The Explanatory Statement setting out the material the Bank may close the window for joining the VC/
facts in respect of the business of the meeting is OAVM facility 30 minutes after the scheduled time
annexed hereto. to start the AGM. To join the VC/OAVM please visit
2. HOLDING OF AGM THROUGH VIDEO https://emeetings.kfintech.com with the credentials
as mentioned in the notice para no. 16 (vii) ) a, b &
CONFERENCING (VC) OR OTHER AUDIO VISUAL
c. The helpline toll free no. 1800 309 4001 may be
MEANS (OAVM)
used for assistance with the technology before or
a. Pursuant to General Circular No. 10/2022 dated 28th during the meeting.
December 2022 issued by the Ministry of Corporate
g. Members may note that the VC/OAVM Facility
Affairs (“MCA Circulars”) and Circular No. SEBI/
with two-way conferencing and also pose
HO/CFD/PoD-2/P/CIR/2023/4 dated 5th January
questions concurrently, provided by KFintech
2023 issued by the Securities and Exchange Board
allows participation of atleast 1,000 Members
of India (“SEBI Circulars”) and in compliance with
on a first-come-first-served basis. The large
the provisions of the Act and the SEBI (Listing
shareholders (i.e. shareholders holding 2% or
Obligations and Disclosure Requirements)
more shareholding), promoter, institutional
Regulations, 2015 (“Listing Regulations”),
investors, directors, key managerial personnel, the
Communication No. F. No. 7/47/2020-BOA dated
Chairpersons of the Audit Committee, Nomination
10th July 2020 of Ministry of Finance, Government
and Remuneration Committee and Stakeholders
of India, the AGM of the Bank is being conducted
Relationship Committee, auditors, scrutinizer
through VC/OAVM Facility, which does not require
etc. can attend the AGM without any restriction
physical presence of members at a common venue.
on account of first-come- first-served principle
The deemed venue for the AGM shall be the Central
as per the MCA Circulars. Institutional Investors
Office of the Bank situated at Mumbai. The Special
who are Members of the Bank, are encouraged to
business mentioned in the business Item Nos.3 to
attend and vote in the 21st AGM through VC/OAVM
8 being unavoidable, be transacted at the 21st AGM
Facility.
of the Bank through VC/OAVM.
h. Attendance of the Members participating in the
b. The Bank is adhering and complying with all the
AGM through VC/OAVM facility shall be counted
provisions mentioned in the MCA Circulars. The
for the purpose of reckoning the quorum.
Bank has made all the necessary arrangements
to avoid failure of VC/OAVM connection. The Bank i. Since the AGM is being held through VC/OAVM
has ensured sufficient and adequate security to the physical attendance of members is dispensed
safeguard the integrity of the meeting. with and no proxies would be accepted by the Bank
pursuant to MCA Circulars.
c. KFin Technologies Limited (KFintech) will be
providing facility for voting through remote j. Speaker shareholder registration before
e-voting, for participation in the AGM through VC/ AGM may also be availed during the remote
OAVM Facility and e-voting during the AGM. e-voting period latest by 5 PM on Wednesday,
Integrated Annual Report
2022-23 141

2nd August, 2023. Shareholders who wish 4. APPOINTMENT OF AUTHORISED

to register as speaker are requested to visit REPRESENTATIVE
https://emeetings.kfintech.com by using e-voting
No person shall be entitled to attend the meeting as
login credentials and click speaker registration
a duly authorized representative of a Company or any
during this period. Shareholders are requested
Body Corporate which is a shareholder of the Bank,
to wait for their turn to be called by the Chairman
unless a copy of the resolution appointing him/her as a
of the meeting during the Question Answer
duly authorized representative, certified to be true copy
session and coordination during the AGM. The
by the Chairman of the meeting at which it was passed,

Strategy, Model & Capitals

Bank may have to dispense or curtail the speaker
shall have been sent to [email protected] not
session; hence, shareholders are encouraged
less than FOUR DAYS before the date of meeting i.e. on
to send their relevant questions etc. in advance
or before the closing hours of the Bank i.e. 5.00 p.m. on
as provided in Notice Para No. 14 from their
Friday, 28th July, 2023.
registered email address, mentioning their name,
DP ID and Client ID number /folio number and 5. BOOK CLOSURE
mobile number, on the Bank’s email address The Register of Shareholders and Share Transfer Books
investorservices@unionbankofindia.bank. Such of the Bank will remain closed from Saturday, 29th July,
questions by the Members shall be taken up during 2023 to Friday, 4th August, 2023 (both days inclusive)
the meeting and replied by the Bank suitably. for the purpose of AGM and for payment of Dividend, if
However, it is requested to raise the questions declared by the Shareholders.
precisely and in short at the time of meeting to
6. UNCLAIMED/UNPAID DIVIDEND, IF ANY
enable us to answer the same.
The shareholders who have not encashed their

Notice
k. The Shareholders who have not registered their
Dividend Warrants / not received dividend of previous
email id can participate in the AGM after registering
periods, if any, are requested to contact the Bank’s
their email ID and Mobile Nos. in the weblink
Registrar & Share Transfer Agent (RTA) or Bank’s
https://ris.kfintech.com/clientservices/mobilereg/
Investors Services Division for payment of unclaimed/
mobileemailreg.aspx
unpaid dividend.
l. Members holding shares in physical form
Shareholders are requested to carefully note that
are requested to furnish bank details, email
pursuant to Section 10B of the Banking Companies
address, change of address etc. to the
(Acquisition and Transfer of Undertakings) Act, 1970,
Registrars and Transfer Agent KFin Technologies

Statutory Reports
dividend remained unclaimed/unpaid for 30 days from
Limited before the cut-off date i.e. Friday,
the date of its declaration shall be transferred to the
28th July, 2023 in order to take note of the same.
“Unpaid Dividend Account” within 7 days from the date
In respect of members holding shares in electronic of expiry of such period of 30 days.
mode, the details as would be furnished by the
Depositories as at the close of the aforesaid date The amount transferred to the said “Unpaid Dividend
will be considered by the Bank. Hence, members Account” and remained unclaimed/unpaid for a period
holding shares shall update their records at the of seven years from the date of transfer, is required to be
earliest to enable us to send the Notice of AGM to transferred to the Investors Education and Protection
their registered email id. Fund (IEPF) established by the Central Government
under Section 125 of the Companies Act, 2013. The

Financial Statements
3. APPOINTMENT OF PROXY Bank has already transferred unpaid dividend up to FY
In terms of the MCA Circulars, since the physical 2014-15 to IEPF.
attendance of Members has been dispensed with,
7. CHANGE OF ADDRESS / BANK PARTICULARS /
there is no requirement of appointment of proxies.
BANK ACCOUNT MANDATE / NOMINATION
Accordingly, the facility of appointment of proxies by
Members under Regulation 70(vi) of the Union Bank Members are requested to intimate changes, if any,
of India (Shares and Meetings) Regulations, 1998 will pertaining to their name, postal address, e-mail
not be available for the AGM. Therefore, instrument address, telephone/mobile numbers, Permanent
for appointing proxy and attendance slip is not being Account Number (PAN), mandates, nominations, power
attached herewith. However, representatives of the of attorney, bank details such as, name of the bank and
Members may be appointed for the purpose of voting branch details, bank account number, MICR code, IFSC
through remote e-voting, for participation in the AGM code, etc.,
through VC/OAVM Facility and e-voting during the a. For shares held in electronic form: to their
AGM. Depository Participants (DPs)
 Integrated Annual Report
142 2022-23

b. For shares held in physical form: to the Bank /  claim from unclaimed suspense account;
Bank’s Registrar and Transfer Agent (RTA) in  renewal/ exchange of securities certificate;
prescribed Form ISR-1 and other forms pursuant
 endorsement;
to SEBI Circular No. SEBI/HO/ MIRSD/MIRSD_
RTAMB/P/CIR/2021/655 dated November 3, 2021.  sub-division/splitting of securities certificate;
The Bank has sent letters along with Business  consolidation of securities certificates/folios;
Reply Envelopes (BRE) for furnishing the required  transmission and transposition.
details.
c. As per the provisions of the said SEBI Circular, Accordingly, Members are requested to make the said
the facility for making nomination is available service requests by submitting a duly filled and signed
for the Members in respect of the shares held by Form ISR – 4, the format of which is available on the
them. Members who have not yet registered their Company’s website at www.unionbankofindia.co.in/
nomination are requested to register the same by english/issuance-securities.aspx It may be noted that
submitting Form No. SH-13. If a Member desires any service request can be processed only after the folio
to opt out or cancel the earlier nomination and is KYC Compliant. Shareholders are also requested to
record a fresh nomination, he/ she may submit the follow the procedure as simplified by SEBI with regard
same in Form ISR-3 or SH-14 as the case may be. to transmission of shares.
Members are requested to submit the said details 9. RECORDING OF CHANGE OF STATUS
to their DP in case the shares are held by them
Non-Resident Indian Shareholders are requested to
indematerialized form and to Bank’s RTA in case
inform the RTA of the Bank – Kfin Technologies Limited
the shares are held in physical form.
immediately of:
The address of Bank’s RTA:
a) The change in the Residential status on return to
India for permanent settlement.
KFin Technologies Ltd.,
Unit: Union Bank of India, b) The particulars of the Bank Account maintained in
Selenium, Tower B, Plot 31-32, Gachibowli, India with complete name, branch, account type,
Financial District, Nanakramguda, account number and address of the Bank with PIN,
Hyderabad - 500 032. if not furnished earlier.
Tel. No.: 040 – 67162222. 10. COPIES OF ANNUAL REPORT
As allowed by the authorities, copies of the Annual
d. The said forms are available on the website
Report 2022-23 in physical form shall not be dispatched
of the Bank at www.unionbankofindia.co.in/
and the same shall be sent through e-mail only to those
english/important-announcement-to-physical-
Shareholders who have registered their Email IDs with
shareholders.aspx
the Bank or with Depository Participant. The Annual
e. Shareholders holding shares in electronic form Report will also be hosted on the websites of the
must send the advice about change in address to Bank and the Stock Exchanges. The shareholders may
their respective Depository Participant only and not contact the Registrar and Share Transfer Agent in case
to the Bank or Bank’s RTA. of physical shares or Depository Participant in case of
f. Shareholders are requested to invariably quote their shares in demat form, for updation of email id.
respective folio number/s (for those holding shares 11. CUT OFF DATE
in physical form) and their respective DP Id / Client FOR E-VOTING:
Id number (for those holding shares in electronic/
demat form) in any correspondence with the Bank Pursuant to Rule 20 of the Companies (Management
or Bank’s RTA. and Administration) Rules, 2014 as amended,
8. ISSUANCE OF SECURITIES IN DEMATERIALISED voting rights of the shareholders in respect of
FORM IN CASE OF INVESTOR SERVICE business Item nos. 1 to 8 shall be reckoned as on
REQUESTSAND SIMPLIFICATION OF Friday, 28th July, 2023.
PROCEDURES FOR TRANSMISSION OF SHARES 12. PAYMENT OF DIVIDEND
Members may please note that SEBI vide its Circular No. If the dividend, as recommended by the Board of
SEBI/HO/MIRSD/MIRSD_RTAMB/P/CIR/2022/8 dated Directors, is declared at the AGM, payment of such
January 25, 2022 has mandated the Listed Entities to dividend subject to Tax Deduction at Source will be
issue securities in dematerialized form only through made from Wednesday, 9th August 2023 onwards as
letter of confirmation while processing the following under:
service requests viz.
• To all Beneficial Owners in respect of shares
 Issue of duplicate securities certificate; held in dematerialized form as per the data as
Integrated Annual Report
2022-23 143

may be made available by the National Securities during the AGM. Please note that members’ questions
Depository Limited (“NSDL”) and the Central will be answered only if they continue to hold shares as
Depository Services (India) Limited (“CDSL”), on cut-off date i.e. 28th July, 2023.
collectively “Depositories”, as of end of day on
Alternatively, Shareholders holding
Friday, 28th July, 2023.
shares as on cut-off date may also visit
• To all Members in respect of shares held in physical https://emeetings.kfintech.com/ and click on “post
form after giving effect to valid transmission or your queries here” to post the relevant queries/view/
transposition requests lodged with the Bank as of questions. The window shall be activated during

Strategy, Model & Capitals

the close of business hours on Friday, 28th July, remote e-voting period and shall be closed by 5 pm on
2023. 2nd August, 2023.
Pursuant to the Finance Act, 2020, dividend income will 15. DEMATERIALIZATION OF PHYSICAL HOLDINGS
be taxable in the hands of shareholders w.e.f. April 1, SEBI vide its notification dated January 24, 2022 has
2020 and the Bank is required to deduct tax at source mandated that all requests for transfer of securities
from dividend paid to shareholders at the prescribed including transmission and transposition requests shall
rates against payment of Dividend more than ` 5000 be processed only in dematerialized form. In view of the
per shareholder on PAN basis. For the prescribed rates same and to eliminate all risks associated with physical
for various categories, please refer to the Finance Act, shares and avail various benefits of dematerialisation,
2020 and the amendments thereof. The shareholders Members are advised to dematerialise the shares held
are requested to update their valid PAN with the DPs by them in physical form. Members can contact the
(if shares held in dematerialized form) and the Bank/ Bank or Bank’s RTA for assistance in this regard.
Bank’s RTA (if shares are held in physical form).
16. BUSINESS SET OUT IN THE NOTICE WILL BE

Notice
13. VOTING RIGHTS TRANSACTED THROUGH ELECTRONIC VOTING
In terms of the provisions of sub-section (2E) of SYSTEM AND THE BANK IS PROVIDING
Section 3 of the Banking Companies (Acquisitions & FACILITY FOR VOTING BY ELECTRONIC
Transfer of Undertakings) Act, 1970, no shareholder MEANS:
of the corresponding new Bank, other than the Central i. Pursuant to the provisions of Rule 20 of the
Government, shall be entitled to exercise voting rights in Companies (Management and Administration)
respect of any shares held by him/her in excess of ten Rules, 2014 (as amended), Secretarial Standard
per cent of the total voting rights of all the shareholders on General Meetings (SS-2) issued by the Institute
of the Bank. of Company Secretaries of India (“ICSI”) and

Statutory Reports
Subject to the above, as per Regulation 68 of the Union Regulation 44 of Listing Regulations read with MCA
Bank of India (Shares and Meetings) Regulations, Circulars and SEBI Circulars, the Bank is pleased to
1998, each shareholder who has been registered as a provide remote e-voting facility to its Members in
shareholder on the Cut-Off Date i.e. Friday, 28th July, respect of the business to be transacted during the
2023 shall have one vote for each share held by him/ AGM and facility for those Members participating
her. in the AGM to cast vote through e-voting system
during the AGM.
As per Regulation 10 of the Union Bank of India (Shares
and Meetings) Regulations, 1998, if any share stands ii. The facility for voting shall also be made available
in the names of two or more persons, the person during the AGM and the shareholders participating
first named in the register shall, as regards voting, be in the meeting who have not cast their votes by

Financial Statements
deemed to be the sole holder thereof. Thus, if shares remote e-voting shall be able to exercise their right
are in the name of joint holders, then first named person during the meeting through e-voting.
is only entitled to attend the meeting and is also only iii. The shareholders who have cast their vote by
eligible to vote. remote e-voting prior to the AGM may also
14. INFORMATION ON ACCOUNTS AND OTHER RELATED participate in the AGM but shall not be entitled to
QUERIES cast their vote again.
Shareholders seeking any information on iv. The facility of casting the votes by the shareholders
the Accounts and other related queries are using an electronic voting system (“remote
requested to write to the Bank by email at e-voting”) during the prescribed time prior to AGM
investorservices@unionbankofindia.bank which should and voting during AGM will be provided by service
reach the Bank before the date of the AGM latest by 5 PM provider KFintech.
on 2nd August, 2023 so as to enable the Management to v. The remote e-voting period commences on
keep the information ready. Replies will be provided only Tuesday, 1st August, 2023 (9:00 am IST) and ends
on Thursday, 3rd August, 2023 (5:00 pm IST).
 Integrated Annual Report
144 2022-23

During this period shareholders of the Bank, holding before closing of the remote e-voting i.e. before
shares either in physical form or in dematerialized 5.00 pm on 3rd August, 2023.
form, as on the Cut-Off Date of Friday, 28th July, vii. The process and the manner for remote e-voting
2023 may cast their vote by remote e-voting for and e-voting during AGM is as under:
business Item nos. 1 to 8. The remote e-voting
module shall be disabled by KFintech for voting As per the SEBI circular dated December 9, 2020
thereafter. Once a shareholder casts his vote on a on e-Voting facility provided by Listed Companies,
resolution, the shareholder shall not be allowed to Individual shareholders holding securities in
change it subsequently. Demat mode are allowed to vote through their
demat account maintained with Depositories and
vi. Any person who becomes a member of the Bank Depository Participants. Shareholders are advised
after sending notice of AGM and holding shares to update their mobile number and email Id in their
as on cut-off date i.e. Friday, 28th July, 2023 may demat accounts in order to access e-Voting facility.
obtain the User ID and Password in the manner
mentioned below by sending email to Bank at Individual Shareholders (holding securities in DEMAT
investorservices@unionbankofindia.bank along
mode) - Login through Depositories.
with authentic proof of shareholder or to write to
KFintech at evoting@kfintech.com sufficiently

NSDL CDSL
1. User already registered for IDeAS facility: 1. Existing user who have opted for Easi / Easiest
I. URL: https://eservices.nsdl.com I. URL:
II. Click on the “Beneficial Owner” icon under ‘IDeAS’ https://web.cdslindia.com/myeasinew/home/login
section. or
III. On the new page, enter User ID and Password. URL: www.cdslindia.com
Post successful authentication, click on “Access to II. Click on New System Myeasi
e-Voting” III. Login with user id and password.
IV. Click on company name or e-Voting service provider IV. Option will be made available to reach e-Voting page
and you will be re-directed to e-Voting service without any further authentication.
provider website for casting the vote during the V. Click on e-Voting service provider name to cast your
remote e-Voting period. vote.
2. User not registered for IDeAS e- Services 2. User not registered for Easi/Easiest
I. To register click on link : https://eservices.nsdl.com I. Option to register is available at
II. Select “Register Online for IDeAS” https://web.cdslindia.com/myeasinew/Registration/
III. Proceed with completing the required fields. EasiRegistration
II. Proceed with completing the required fields.
3. User not registered for IDeAS e-Services 3. By visiting the e-Voting website of CDSL
I. To register click on link : I. URL: www.cdslindia.com
https://eservices.nsdl.com/SecureWeb/ II. Provide demat Account Number and PAN No.
IdeasDirectReg.jsp
II. Proceed with completing the required fields. III. System will authenticate user by sending OTP on
registered Mobile & Email as recorded in the demat
Account.
IV. After successful authentication, user will be provided
links for the respective ESP (E-voting Service
Provider) where the e-Voting is in progress.
Integrated Annual Report
2022-23 145

NSDL CDSL
4. By visiting the e-Voting website of NSDL
I. URL: https://www.evoting.nsdl.com/
II. Click on the icon “Login” which is available under
‘Shareholder/Member’ section.
III. Enter User ID (i.e. 16-digit demat account number
held with NSDL), Password/OTP and a Verification

Strategy, Model & Capitals

Code as shown on the screen.
IV. Post successful authentication, you will be redirected
to NSDL Depository site wherein you can see e-Voting
page.
V. Click on company name or e-Voting service provider
name and you will be redirected to e-Voting service
provider website for casting your vote during the
remote e-Voting period.

Notice
Important note:
name and you will be redirected to e-Voting service
Members who are unable to retrieve User ID/ Password provider website for casting your vote during the
are advised to use Forget User ID and Forget Password remote e-Voting period.
option available at above mentioned websites. Login method for Non-Individual Shareholders and

Statutory Reports
Helpdesk for Individual Shareholders holding securities Shareholders holding securities in Physical Form
in demat mode for any technical issues related to login a. Initial Password is provided in the body of the
through Depositories i.e. NSDL and CDSL email.

Members facing any Members facing any b. Launch internet browser and type the URL:
technical issue - NSDL technical issue - CDSL https://evoting.kfintech.com in the address bar.
Members facing any Members facing any c. Enter the login credentials i.e. User ID and
technical issue in technical issue in login can password mentioned in your email. Your Folio No.
login can contact contact CDSL helpdesk /DP ID Client ID will be your User ID. However, if you
NSDL helpdesk by by sending a request are already registered with KFintech for e-voting,

Financial Statements
sending a request at at helpdesk.evoting@ you can use your existing User ID and password
[email protected] or cdslindia.com or contact for casting your votes.
call at toll free no.: 1800 at 022- 23058738 or d. After entering the details appropriately, click on
1020 990 and 1800 22 44 022-23058542-43. LOGIN.
30
e. You will reach the password change menu wherein
Individual Shareholders (holding securities in DEMAT you are required to mandatorily change your
mode) - Login through their Depository Participants. password. The new password shall comprise of
You can also login using the login credentials of your minimum 8 characters with at least one upper
demat account through your Depository Participant case (A-Z), one lower case (a-z), one numeric
registered with NSDL/CDSL for e-Voting facility. Once value (0-9) and a special character (@,#,$,etc.).
login, you will be able to see e-Voting option. Click on It is strongly recommended not to share your
e-Voting option and you will be redirected to NSDL/ password with any other person and take utmost
CDSL Depository site after successful authentication. care to keep your password confidential.
Click on company name or e-Voting service provider
 Integrated Annual Report
146 2022-23

f. You need to login again with the new credentials. behalf of all the joint holders as the shareholder
g. On successful login, the system will prompt you to who casts the vote through the remote e-voting
select the EVENT i.e. Union Bank of India. services of KFintech, is doing so on behalf of all
joint holders. First holder shall mean the holder of
h. On the voting page, the number of shares (which shares, whose name is first registered against the
represents the number of votes) held by you as on shares held.
the cut-off date will appear. If you desire to cast all
the votes assenting/dissenting to the resolution, xii. Only a Shareholder entitled to vote is entitled to
enter all shares and click ‘FOR’/‘AGAINST’ as the exercise his vote through remote e-voting. Any
case may be or partially in ‘FOR’ and partially in person having no voting rights should treat this
‘AGAINST’, but the total number in ‘FOR’ and/or Notice as intimation only.
‘AGAINST’ taken together should not exceed your xiii. Ms. Ragini Chokshi or Mr Uma Shankar Hegde of
total shareholding as on the cut-off date. You may M/s Ragini Chokshi & Co., Practicing Company
also choose the option ‘ABSTAIN’ and the shares Secretaries has been appointed as the Scrutinizer
held will not be counted under either head. to scrutinize the remote evoting process in a fair
i. Click on ‘SUBMIT’. A confirmation box will be and transparent manner.
displayed. Click ‘OK’ to confirm, else ‘CANCEL’ to xiv. The Chairman/Chairperson of the Meeting shall,
modify. Once you confirm, you will not be allowed after commencement of the AGM, allow voting for
to modify your vote subsequently. During the voting all those shareholders who are participating in the
period, you can login multiple times till you have AGM but have not casted their vote by availing the
confirmed that you have voted on the resolution. remote e-voting facility.
j. Members holding multiple folios/demat accounts xv. The Scrutinizer shall after the conclusion of voting at
shall choose the voting process separately for each the AGM, within two working days of the conclusion
folio/demat account. of the AGM, submit a consolidated scrutinizer’s
k. Corporate/institutional members (i.e. other than report of the total votes casted in favour or against,
individuals, HUF, NRI, etc.) are required to send if any, to the Chairman/Chairperson of the Meeting
scanned image (PDF/JPG format) of certified true or any other person authorised by him/her in
copy of relevant board resolution/authority letter writing.
etc. together with attested specimen signature 17. RESULTS OF VOTING
of the duly authorised signatory (ies) who is/are The consolidated results of remote e-voting and e-voting
authorised to vote, to the Scrutinizer through email during the AGM alongwith the consolidated report of the
at [email protected] and may also upload Scrutinizer shall be placed on the website of the Bank i.e.
the same in the e-voting module in their login. The www.unionbankofindia.co.in and on the website
scanned image of the above documents should be of KFintech i.e. https://evoting.kfintech.com. The
in the naming format ‘EVEN……………………..’ voting results and consolidated scrutinizer’s report
viii. In case you have any queries or issues regarding shall simultaneously be communicated to the Stock
e-voting, you may refer the Frequently Asked Exchanges i.e. BSE & NSE.
Questions (“FAQs”) and evoting manual available at 18. SCRUTINISERS FOR E-VOTING AT MEETING
https://evoting.kfintech.com under help section or
As already indicated for e-voting, Ms. Ragini Chokshi
call on 1800 309 4001 (toll free).
of M/s Ragini Chokshi & Co., Practicing Company
ix. All grievances connected with the facility for voting Secretaries shall act as Scrutinizer in respect of all the
by electronic means may be addressed to KFintech business Items. They shall also act as Scrutinizer along
or send an email to evoting@kfintech.com or call with another shareholder for the E-voting conducted at
1800 309 4001 (Toll Free). the Meeting.
x. A person, whose name is recorded in the Register 19. OUTCOME OF MEETING
of Shareholders or in the Register of Beneficial
The resolution shall be deemed to be passed at the
Owners maintained by the depositories as on the
Central Office of the Bank on the date of AGM subject
cut-off date i.e. Friday, 28th July, 2023 only shall be
to receipt of the requisite number of votes in the favour
entitled to avail the facility of remote e-voting or
of resolution(s).
voting at the AGM.
20. RECORDED TRANSCRIPT
xi. In case of Joint holders, login ID/User Id and
password details shall be sent to the first holder Proceeding of AGM held through VC/OAVM shall
of the shares. Accordingly, the vote using user ID be made available on the website of the Bank
and Password sent to first holder is recognized on www.unionbankofindia.co.in under Investor Relations
section as soon as possible.
Integrated Annual Report
2022-23 147

EXPLANATORY STATEMENT India and other regulatory authorities and in accordance

with the SEBI (ICDR) Regulations. The enhanced capital will
ITEM NO.3:
be utilized for the general business purposes of the Bank.
Raising of Capital:
In the event of such issuance of securities is undertaken
The Bank is in the business of the Banking and related by way of QIP, the same will be in accordance with Chapter
services activities. Presently, the Authorised Capital of the VI of the Securities and Exchange Board of India (Issue of
Bank is ` 10,000 crore. The paid-up equity share capital of Capital and Disclosure Requirements) Regulations 2018.

Strategy, Model & Capitals

the Bank as on 31st March 2023 was ` 6,834.47 crore.
The Bank may also raise such number of perpetual debt
Shareholding of Government of India in the Bank is 83.49% instruments, Non-convertible debentures including but not
of the total paid-up capital of the Bank. limited to Sub-ordinated Debentures, Bonds and / or other
debt securities / Green Bonds etc., on private placement
The capital fund to Risk Weighted Assets as on March 31, / public issue basis in one or more tranches which may
2023 was as under: classify for Tier-1 or Tier-2 Capital as identified and
classified by RBI and in compliance with the SEBI (Issue
Capital Adequacy Ratios - Basel III and Listing of Non-Convertible Securities) Regulations,
(` in crore) 2021.
Parameters RBI Minimum March March
Benchmark 31, 2023 31, 2022 The Regulation 41(4) of the SEBI (LODR) Regulations, 2015
March 31, 2022 provides that whenever any further issue or offer is being

Notice
Total Risk NA 5,78,455 545,923 made by the Bank, the existing shareholders should be
Weighted Assets offered the same on pro-rata basis unless the shareholders
in the general meeting decide otherwise as far as equity
Total Capital 92,778 79,281
shares are concerned. The said resolution, if passed, shall
Funds
have the effect of allowing the Board of Directors on behalf
CET 1 Capital 71,492 58,049 of the Bank to issue and allot the securities otherwise than
Tier 1 Capital 80,478 66,589 on pro-rata basis to the existing shareholders.
CRAR (%) 11.50 16.04 14.52
For reasons aforesaid, an enabling resolution is therefore
CET 1 (%) 8.00 12.36 10.63
proposed to be passed to give adequate flexibility and

Statutory Reports
Tier 1 (%) 9.50 13.91 12.20
discretion to the Board to finalize the terms of the issue.
Tier 2 (%) NA 2.13 2.32
The present resolution is proposed in order to enable the
Note: RBI minimum benchmarks are including CCB (Capital Board of Directors of the Bank to issue equity shares/
Conservation buffer) of 2.50 per cent in CRAR, CET 1 and Bonds at an appropriate time, mode and other terms.
Tier 1 ratios. There is no minimum for Tier II ratio. This proposed resolution once passed it will superede the
resolution already passed in similar line, by the shareholders
In order to maintain the Capital and Leverage Ratio of the Bank in its Annual General Meeting held on 30th June,
requirements under the Basel III guidelines for expansion of 2022.
business assets and based on the estimated growth, your

Financial Statements
Directors have decided to raise the Capital up to ` 10,100 The proposed issuance of Equity Shares and or Bonds in
crore (Rupees Ten Thousand One Hundred crore Only). terms of the Special Resolution will be in conformity with
the provisions of all applicable laws.
In order to ensure regulatory compliances and to meet the
requirement of additional capital funds for expanding and Your Directors recommend passing of the special resolution
achieving the targeted business growth and for general as mentioned in the notice.
lending purposes, the Bank may raise Equity Share Capital
through Public Issue (i.e. follow-on-Public Issue) and/or None of the Directors, Key Managerial Persons of the Bank
Rights Issue and/or Private Placement, including Qualified and their relatives may be deemed to be interested or
Institutions Placement and/or Preferential Allotment to the concerned in the Resolution, except to the extent of their
Government of India and/or other Institutions and/or any shareholding, if any, in the Bank.
other mode(s) subject to approval by the Government of
 Integrated Annual Report
148 2022-23

ITEM NO.4: NIL

Appointment of Shri Laxman S Uppar (DIN: 02453845) as • Shareholding in Union Bank of India: NIL
Part-Time Non-Official (Independent) Director of the Bank.
• The skills/expertise/capabilities of Mr Uppar as required
in the context of business of the Bank are identified by
Shri Laxman S Uppar (DIN: 02453845) was nominated by
the Government of India and accordingly nomination of
the Govt. of India as the Part-Time Non-Official Director of
the Director on the Board of the Bank is made by the
the Bank under Section 9(3)(h) of the Banking Companies
Government of India.
(Acquisition and Transfer of Undertakings) Act, 1970, vide
Government of India’s Notification F.No. 6/6/2021-BO.I Except Shri Laxman S Uppar, None of the Directors, Key
dated 21st March 2022 for a period of three years from the Managerial Persons of the Bank and their relatives is in any
date of notification i.e., 21st March 2022 or until further way, interested or concerned in the Resolution.
orders, whichever is earlier. Accordingly, Shri Uppar holds
the position of Part-Time Non-Official Director on the The Board of Directors recommends the Special Resolution
Board of the Bank effective 21st March 2022. for your approval.

In terms of Department of Financial Services, Ministry of Item No. 5:

Finance Letter vide F.No.6/20/2019-BO.I dated August 30, Appointment of Shri Srinivasan Varadarajan (DIN:
2019, Directors nominated under clause (h) of sub-section 00033882) as Part-Time Non-Official (Independent)
(3) of Section 9 of the Act are considered as Independent on Director and Non-Executive Chairman of the Bank
the Board of the Bank.
Shri Srinivasan Varadarajan (DIN: 00033882) was nominated
In terms of Regulation 25(2A) and First Proviso to Regulation by the Govt. of India as the Part-Time Non-Official Director
17(1C) of SEBI (Listing Obligations and Disclosure and Non-Executive Chairman of the Bank under Section
Requirements) Regulations, 2015, the appointment of 9(3)(h) of the Banking Companies (Acquisition and Transfer
independent directors has to be approved at the meeting of Undertakings) Act, 1970, vide Government of India’s
of shareholders of the Bank by way of Special Resolution. Notification F.No. 6/9/2022-BO.I dated 7th November 2022
for a period of three years from the date of notification
Therefore, the approval of shareholders is sought for i.e., 7th November 2022 or until further orders, whichever
the appointment of Shri Laxman S Uppar as Part-Time is earlier. Accordingly, Shri Srinivasan Varadarajan holds
Non-Official Director of the Bank on the same terms and the position of Part-Time Non-Official Director and Non-
conditions as determined by the Government of India. Executive Chairman on the Board of the Bank effective 7th
November 2022.
Shri Laxman S Uppar has furnished declaration of
Independence as enunciated in the definition of the term In terms of Department of Financial Services, Ministry of
“Independent Director” under Regulation 16(1)(b) of Finance Letter vide F.No.6/20/2019-BO.I dated August 30,
SEBI (Listing Obligations and Disclosure Requirements) 2019, Directors nominated under clause (h) of sub-section
Regulations, 2015. (3) of Section 9 of the Act are considered as Independent on
the Board of the Bank.
Shri Uppar has done Bachelor’s in Engineering. He is a noted
Educationist, Philanthropist and Founder of Karnataka In terms of Regulation 25(2A) and First Proviso to Regulation
Classic Education Private Ltd. Dharwad. He has also started 17(1C) of SEBI (Listing Obligations and Disclosure
Spardha Spoorti Publishers & Printers Pvt. Ltd. Dharwad in Requirements) Regulations, 2015, the appointment of
2012, which publishes books and magazines for various independent directors has to be approved at the meeting
competitive examinations. He has been bestowed with of shareholders of the Bank by way of Special Resolution.
many National level awards for his service to educational
and service sector. Therefore, the approval of shareholders is sought for the
appointment of Shri Srinivasan Varadarajan as Part-Time
Other particulars as per Regulation 36(3) of SEBI (Listing Non-Official Director of the Bank on the same terms and
Obligations and Disclosure Requirements) Regulations, conditions as determined by the Government of India.
2015 are as under:
Shri Srinivasan Varadarajan has furnished declaration
• Relationship between directors inter-se: NIL of Independence as enunciated in the definition of the
• Directorship in other listed entities: NIL term “Independent Director” under Regulation 16(1)(b) of
SEBI (Listing Obligations and Disclosure Requirements)
• Membership / Chairmanship in other listed entities:
Regulations, 2015.
Integrated Annual Report
2022-23 149

Shri Srinivasan Varadarajan holds an Engineering Degree holds the position of Executive Director on the Board of the
from the College of Engineering, Anna University, Chennai Bank effective 1st February 2022.
and PG Diploma in Management from the Indian Institute
of Management, Calcutta. He has to his credit, more than In terms of First Proviso to Regulation 17(1C) of SEBI (Listing
three decades of experience in Banking and Financial Obligations and Disclosure Requirements) Regulations,
services. He last served as the Deputy Managing Director 2015, the appointment of directors on the Board of the Bank
of Axis Bank before setting up his own advisory practice has to be approved at the meeting of shareholders of the
in 2019. Bank.

Strategy, Model & Capitals

As a financial advisor, he has worked with a leading Therefore, the approval of shareholders is sought for the
international consulting firm, a sovereign wealth fund, a appointment of Shri Nidhu Saxena as Executive Director of
large corporate group, a NBFC group and a private sector the Bank on the same terms and conditions as determined
Bank. Shri Srinivasan Varadarajan was the Managing by the Government of India.
Director and Head of Markets with J.P. Morgan, India. He
was also the CEO, J P Morgan Chase Bank in India. Shri Nidhu Saxena is a Commerce graduate and also holds
a Masters in Business Administration along with CAIIB
Other particulars as per Regulation 36(3) of SEBI (Listing qualification. Prior to his 25 years of banking experience,
Obligations and Disclosure Requirements) Regulations, he had 8 years of corporate exposure in different sectors.
2015 are as under: He started his banking career at Bank of Baroda where he
worked for 10 years after which he joined UCO Bank.
• Relationship between directors inter-se: NIL
Throughout his banking career, he has worked at different

Notice
• Directorship in other listed entities: NIL
locations and branch categories including specialised
• Membership / Chairmanship in other listed entities: NRI, Retail branches and administrative offices including
NIL Central Office. He donned various roles including Branch
• Shareholding in Union Bank of India: NIL Head, Zonal Head at Pune and Surat Zones of UCO Bank.
Prior to joining Union Bank of India, he worked as General
• The skills/expertise/capabilities of Shri Srinivasan
Manager and vertical head for Retail Credit, MSME and
as required in the context of business of the Bank are
Bancassurance businesses at UCO Bank.
identified by the Government of India and accordingly
nomination of the Director on the Board of the Bank is
Other particulars as per Regulation 36(3) of SEBI (Listing

Statutory Reports
made by the Government of India.
Obligations and Disclosure Requirements) Regulations,
Except Shri Srinivasan Varadarajan, None of the Directors, 2015 are as under:
Key Managerial Persons of the Bank and their relatives is in
any way, interested or concerned in the Resolution. • Relationship between directors inter-se: NIL
• Directorship in other listed entities: NIL
The Board of Directors recommends the Special Resolution
for your approval. • Membership / Chairmanship in other listed entities:
NIL
Item No. 6: • Shareholding in Union Bank of India: NIL
Appointment of Shri Nidhu Saxena (DIN: 09691292) as

Financial Statements
• The skills/expertise/capabilities of Shri Nidhu as
Executive Director of the Bank required in the context of business of the Bank are
identified by the Government of India and accordingly
Shri Nidhu Saxena (DIN: 09691292) was appointed by the appointment of the Director on the Board of the Bank is
Govt. of India as the Executive Director of the Bank under made by the Government of India.
Section 9(3)(a) of the Banking Companies (Acquisition
and Transfer of Undertakings) Act, 1970, vide Government Except Shri Nidhu Saxena, None of the Directors, Key
of India’s Notification eF.No. 4/2/2021-BO.I dated 21st Managerial Persons of the Bank and their relatives is in any
October 2021 for a period of three years from the date of way, interested or concerned in the Resolution.
assumption of office i.e., 1st February 2022 or until further
The Board of Directors recommends the Ordinary Resolution
orders, whichever is earlier. Accordingly, Shri Nidhu Saxena
for your approval.
 Integrated Annual Report
150 2022-23

Item No. 7: • Relationship between directors inter-se: NIL

Appointment of Ms. A. Manimekhalai (DIN: 08411575) as • Directorship in other listed entities: Director of General
Managing Director and CEO of the Bank Insurance Corporation of India
• Membership / Chairmanship in other listed entities:
Ms. A. Manimekhalai (DIN: 08411575) was appointed by
Chairperson of Audit Committee and Stakeholders
the Govt. of India as the Managing Director & CEO of the
Relationship Committee of General Insurance
Bank under Section 9(3)(a) of the Banking Companies
Corporation of India
(Acquisition and Transfer of Undertakings) Act, 1970,
vide Government of India’s Notification eF.No. 4/4/2021- • Shareholding in Union Bank of India: NIL
BO.I dated 3rd June 2022 for a period of three years from • The skills/expertise/capabilities of Ms. A Manimekhalai
the date of assumption of office i.e., 3rd June 2022 or until as required in the context of business of the Bank are
further orders, whichever is earlier. Accordingly, Ms. A. identified by the Government of India and accordingly
Manimekhalai holds the position of Managing Director & appointment of the Director on the Board of the Bank is
CEO on the Board of the Bank effective 3rd June 2022. made by the Government of India.
Except Ms. A. Manimekhalai, None of the Directors, Key
In terms of First Proviso to Regulation 17(1C) of SEBI (Listing
Managerial Persons of the Bank and their relatives is in any
Obligations and Disclosure Requirements) Regulations,
way, interested or concerned in the Resolution.
2015, the appointment of directors on the Board of the Bank
has to be approved at the meeting of shareholders of the
The Board of Directors recommends the Ordinary Resolution
Bank.
for your approval.
Therefore, the approval of shareholders is sought for the
appointment of Ms. A. Manimekhalai as Managing Director
Item No. 8:
& CEO of the Bank on the same terms and conditions as Appointment of Shri Ramasubramanian S (DIN: 08747165)
determined by the Government of India. as Executive Director of the Bank

Ms. A. Manimekhalai holds Master of Business Shri Ramasubramanian S (DIN: 08747165) was appointed
Administration (Marketing) from Bangalore University, and by the Govt. of India as the Executive Director of the
a Diploma in Human Resource Management from Narsee Bank under Section 9(3)(a) of the Banking Companies
Monjee Institute of Management Studies (NMIMS), Mumbai. (Acquisition and Transfer of Undertakings) Act, 1970, vide
A beneficiary of various executive development programs at Government of India’s Notification eF.No. 4/6/2021-BO.I
leading institutes of country, she is also a Certified Associate dated 21st November 2022 for a period of three years from
of Indian Institute of Bankers (CAIIB). the date of assumption of office i.e., 21st November 2022
or until further orders, whichever is earlier. Accordingly,
Ms. A. Manimekhalai is a seasoned Banker with experience Shri Ramasubramanian S holds the position of Executive
of more than 3 decades. She started her career in erstwhile Director on the Board of the Bank effective 21st November
Vijaya Bank as an Officer in 1988 and rose successively as 2022.
Branch Head, Regional Head and Functional Head of various
Departments at Corporate Office. She was instrumental in In terms of First Proviso to Regulation 17(1C) of SEBI (Listing
devising & implementation of strategic policies covering Obligations and Disclosure Requirements) Regulations,
core areas like strategic planning, setting organizational 2015, the appointment of directors on the Board of the Bank
goals, growth strategies, action plans, compliance, internal has to be approved at the meeting of shareholders of the
control, etc. Bank.

Prior to joining Union Bank of India, Ms. A Manimekhalai was Therefore, the approval of shareholders is sought for the
an Executive Director at Canara Bank, wherein she oversaw appointment of Shri Ramasubramanian S as Executive
strategic planning, credit & related matters, inspection, Director of the Bank on the same terms and conditions as
marketing and financial inclusion, State Level Lead Bank determined by the Government of India.
responsibilities and the functioning of Regional Rural
Banks. She played a pivotal role in effecting successful Prior to joining Union Bank of India, Shri Ramasubramanian S
amalgamation of Canara Bank and Syndicate Bank. was Chief General Manager of Canara Bank. He has to his
credit more than 25 years of rich experience in various
Other particulars as per Regulation 36(3) of SEBI (Listing facets of Banking like Corporate Credit, MSME/Retail Credit,
Obligations and Disclosure Requirements) Regulations, International Credit and forex. He holds a Bachelor degree in
2015 are as under: Science along with CAIIB qualification.
Integrated Annual Report
2022-23 151

Throughout his banking career, he has worked at different • Shareholding in Union Bank of India: NIL
locations and branch categories including Prime Corporate • The skills/expertise/capabilities of Shri
Credit Wing, Large Corporate, Mid Corporate Branches and Ramasubramanian S as required in the context of
Hong Kong Branch of Canara Bank and administrative business of the Bank are identified by the Government
offices including Head Office. of India and accordingly appointment of the Director on
the Board of the Bank is made by the Government of
He is one of the Top Executive Grade officers who underwent
India.
Leadership Development Strategy Program organized by
Except Shri Ramasubramanian S, None of the Directors,

Strategy, Model & Capitals

Financial Services Institutions Bureau (erstwhile Banks
Board Bureau). He was in the standing Committee for Key Managerial Persons of the Bank and their relatives is in
Corporate Credit of IBA. He is also nominated to participate any way, interested or concerned in the Resolution.
in Kamath Committee on COVID related loan Restructuring.
He is well versed in operations and administration equally. The Board of Directors recommends the Ordinary Resolution
for your approval.
Other particulars as per Regulation 36(3) of SEBI (Listing
Obligations and Disclosure Requirements) Regulations, By order of the Board of Directors
2015 are as under: For UNION BANK OF INDIA

• Relationship between directors inter-se: NIL

• Directorship in other listed entities: NIL
Place : Mumbai (S.K. Dash)
• Membership / Chairmanship in other listed entities: Date: 23.06.2023 COMPANY SECRETARY

Notice
NIL

Statutory Reports
Financial Statements
 Integrated Annual Report
152 2022-23

DIRECTORS’ REPORT

Dear Shareholders, aligning inflation with the target while supporting

growth.
The Board of Directors is pleased to present the 104th Annual
1.4 Going forward, India’s economic rebound faces
Report of your Bank for the Financial Year 2022-23 together
difficult challenges from the legacy of structural
with the ‘Audited Balance Sheet’, ‘Profit & Loss Account’,
bottlenecks as well as the scars of the pandemic.
‘Cash-Flow Statement’, and the report on ‘Management
The Russia-Ukraine conflict has also dampened
Discussion & Analysis’. The ‘Corporate Governance Report’
the momentum of recovery, with its impact
and ‘Business Responsibility and Sustainability Report’ also
transmitting through record-high commodity
form part of the Annual Report 2022-23.
prices, weaker global growth outlook, and tighter
global financial conditions. Concerns surrounding
1. Highlights: de-globalization impacting future trade, capital
1.1 India’s economic growth remained resilient in FY flows, and supply chains have amplified
2022-23. According to the provisional estimates uncertainties for the business environment.
by National Statistical Office (NSO), India’s gross 1.5 While global economic prospects have improved
domestic product (GDP) is estimated to grown at modestly compared to a few months ago, the
7.2% for FY 2022-23, driven by private consumption outlook is highly uncertain again amid financial
and investment. On the supply side, activity was sector turmoil, high inflation and ongoing effects of
supported by the agriculture and services sectors, Russia Ukraine war. According to the International
while manufacturing was restrained under the Monetary Fund’s (IMF’s) April 2023 update of the
pressure of high input costs. A slew of data, from World Economic Outlook (WEO), global growth
services activity to bank credit, pointed to a pick-up is expected to moderate from 3.4% in 2022 to
in demand during FY 2022-23. The growth in GDP 2.8% in 2023, and 3.0% in 2024, with a sharper
at current prices, or nominal GDP, during FY 2022- deceleration projected for advanced economies
23 is estimated at 16.1% on annual basis. (AEs) relative to Emerging Market And Developing
1.2 There was positive growth across all sectors, with Economies (EMDEs). Global headline inflation is
services like trade, tourism, and hospitality driving set to fall from 8.7% in 2022 to 7.0% in 2023 on
momentum. Enabling government policies are the back of lower commodity prices, but core
expected to further catapult these sectors towards inflation is likely to decline more slowly. Alongside
an upward growth trajectory. Consumer activity this, global trade is expected to decelerate in 2023.
was encouraging, with growth in non-food bank Elevated inflation levels are a looming challenge
credit rising to 15.4% as at end-March 2023 from complicating the trade-offs that central banks
9.7% a year ago. Liquidity conditions slipped into are faced with between containing inflation and
periods of the deficit as deposit growth lagged boosting economic growth.
credit. Merchandise exports have registered the 1.6 The IMF predicts Asia-Pacific’s GDP to expand by
highest-ever annual exports of USD 447.46 billion 4.6% in 2023 after growing 3.8% in 2022. China
with 6.03% growth during FY 2022-23, surpassing and India are expected to contribute around half of
the previous year’s (FY 2021-22) record exports of global growth in 2023, with the rest of Asia and the
USD 422.00 billion. Exports are growing despite Pacific contributing an additional fifth.
global challenges such as the rise in raw material
prices, restrictions on exports of certain products, 1.7 Notwithstanding economic uncertainties triggered
and the Russia-Ukraine war. by the Russia-Ukraine war, India will remain the
fastest-growing economy in the world. As per the
1.3 Consumer price index (CPI) inflation persisted at IMF, India is projected to expand by 5.9% in 2023 and
elevated levels during FY 2022-23, impacted by a further by 6.3% in 2024. The Reserve Bank of India
series of adverse supply shocks and the continuing (RBI) has pegged the economic growth estimate
pass-through of high input costs. The Monetary for 2023-24 at 6.5%. The higher rabi production
Policy Committee (MPC) of the Reserve Bank of has brightened the prospects for the agriculture
India (RBI) increased the policy repo rate by 250 sector and rural demand. The steady growth in
basis points from May 2022-February 2023, and contact-intensive services should be positive for
monetary policy remains focused on progressively urban demand. The government’s focus on capital
Integrated Annual Report
2022-23 153

expenditure, capacity utilization above the long- d. Building Digital Platform with Cloud-ready
period average, and moderating commodity prices architecture grounds- up build digital channels,
should bolster manufacturing and investment APIs, microservices, and modern engineering
activity. Given the reforms undertaken by the practices

Strategy, Model & Capitals

government and the various supportive measures e. Data & Analytics Platform Services
by the RBI, a very strong foundation is being laid
for a further rapid increase in economic growth in f. Collaboration with Fintechs to offer new digital
the coming years. The Union Budget 2023-24 has products.
provided for a sharp increase in public investment Your Bank has rolled out 20+ digital journeys &
and capital expenditure. The various government partnered with 90+ fintechs to launch quick Go-to-
initiatives are seen to be supporting growth, and Market journeys, thus reducing the timelines for rolling
credit demand is expected to remain robust in FY out the products.
2023-24.
Thrust was given to projects which are part of regulatory
2. Bank’s Performance requirements, the EASE Reforms Agenda, as well as
requests received from within your Bank.
Established in the year 1919, your Bank has 8577
domestic branches, 10,835 ATMs across 29 States and
5 Union Territories, and 75,594 employees as on March

Notice
31, 2023.
The Bank has 3 overseas Branches at Hongkong,
Sydney, Dubai DIFC, 5 wholly owned Subsidiaries, 3
Joint Ventures and 1 Associate Organization.
The global business of your Bank stood at `19,27,621
crore as on March 31, 2023 which comprises of total
deposits of `11,17,716 crore and gross Advances of
`8,09,905 crore.

Statutory Reports
The operating profit and net profit of the Bank stood
at `25,467 crore and `8,433 crore respectively as on
March 31, 2023.

3. Digitization:
Project Sambhav: Implementation of Digital Business
Platform
To capture the growing digital business & to build a
strong digital ecosystem/architecture, your Bank has

Financial Statements
launched Project Sambhav. As part of Project Sambhav,
your Bank has designed a detailed roadmap on Digital
Transformation for building a Digital Bank within Bank, Launch of Vyom App
which includes:
Your Bank has given top priority and facelifted the
a. Digital strategy aligned with the business vision existing Mobile Banking application with feature
and Digital Banking Policy. enhancements, thereby providing ease and comfort to
b. Vyom upgradation with seamless Omni channel customers.
experience & enhanced UI/UX to offer best-in- The mobile banking application of your Bank has been
class journey experience. rebranded as “VYOM” and launched on your Bank’s
c. Ecosystem Partnerships
 Integrated Annual Report
154 2022-23

Foundation Day dated 11.11.2022. VYOM offers 350+

features with explorative UI/UX design to increase
engagement and offers a unique banking experience.
The application offers lifestyle Banking (marketplace), Insurance
where the customer can book Flight, Cabs, and Bus
tickets, purchase Gift Cards, recharge mobile DTH & As a one-stop solution for Life, Non-Life, and Health
Data cards and book Hotels, and also make a donation. Insurance products, your Bank has launched a digital
Your Bank has also incorporated Mutual Funds, solution for the Insurance business, and the same is in
Insurance, and various STP journeys in the VYOM app. the initial phase.
More than 21 million Customers are registered on CRM Solutions
Vyom with 2.1 million daily logins.
Your Bank has started implementing Customer
Relationship Management (CRM) solution to provide
a unified customer experience and better customer
satisfaction. As part of the phase-wise implementation
of CRM solutions, the Lead Management Solution
(LMS) has been made live in Q4 FY 22-23 for all the
Marketing Officers, Retail Loan Points, MSME Loan
Points, all branches & Admin Offices. The Customer
360o beta testing has been made live for branches of
Regional Office Andheri and shall be made live in the Q1
FY 23-24.

Launch of Vyom App by MD & CEO

Registrations on Vyom
(In lakhs)

Mar-22 During the FY Cumulative

2022-23 Performance- as on
31.03.2023
164.71 48.43 213.14
Digital Journeys Account Aggregator
Union Bank of India is the first Public Sector Bank to
Digital solutions for Mutual Funds & Insurance
integrate with Account Aggregator (AA) ecosystem.
business
Your Bank has onboarded 5 AAs. The Bank has taken
up two use cases – GeM Sahay and GST Sahay for
implementation under the OCEN framework.
Mutual Fund
Digital Lending & Review/Renewal Journeys
With an objective to increase the fee-based income, Our Bank has rolled out 20+ Digital Journeys covering
your Bank has launched a digital solution for Mutual both assets and liability products. From these journeys,
Funds sales through Bank’s Mobile App and Net- your Bank could sanction ` 2126 Crores & and have
Banking channels (in addition to providing paperless renewed/reviewed more than 7.68 lacs Accounts
transactions at branches) and the same is in the initial Digitally.
phase.
Integrated Annual Report
2022-23 155

live CBDC- Retail and CBDC – Wholesale – Application

for Android and IOS users under CUG.
FinTech & Ecosystem Partnerships
Your Bank is one of the pioneer banks to create a
policy framework for engaging with Fintechs and
leveraging their solutions for building digital customer
journeys. Your Bank Engaged with 150+ best-in-class
fintechs across 20+ next-gen themes and empaneled

Strategy, Model & Capitals

90+ Fintechs. 8+ Fintechs have been onboarded for
implementing various digital solutions in Agri, Retail &
MSME segments.
Digital Banking Units
Your Bank has operationalized 7 DBUs across 6
districts with a prime objective to increase the digital
penetration of financial services by providing cost-
effective, convenient access with enhanced experience
using a paperless, secured, and connected environment.
DBUs are located in Rajahmundry and Machilipatnam
in Andhra Pradesh, Palakkad (Kerala), Sagar (Madhya
Pradesh), Nagpur (Maharashtra), Patiala (Punjab), and

Notice
Agartala (Tripura). All the DBUs are equipped with smart
capabilities such as interactive tablets, multi-functional
kiosks, ATMs, video KYC apparatus, Metaverse, and
Internet Banking Kiosks.

Photos taken during the launch of Fresh KCC (1.60 lacs) on

pilot basis at Madhya Pradesh & Karnataka state

Statutory Reports
The following digital lending journeys have been
launched during the FY 2022-23:
i. Mudra Kishor STP
ii. Mudra Tarun STP
iii. Education loan
iv. Fresh KCC (1.6L)
v. Loan Against Deposit (LAD)

Financial Statements
vi. Nari Shakti
vii. GST Gain
viii. KCC loan renewal
ix. Retail term loan review
x. MSME renewal (assessed)
Central Bank Digital Currency
The Reserve Bank of India has nominated your Bank
for implementation of the Central Bank Digital Currency
-Retail (CBDC-R) and the Central Bank Digital Currency
– Wholesale (CBDC – W) project. Your Bank has made
 Integrated Annual Report
156 2022-23

4. Business Highlights: 4.4 Overseas business of your Bank stood at `36,229

crore as on March 31, 2023, compared to ` 17,429
4.1 The global business of your Bank stood at
crore as on March 31, 2022. Your Bank has three
`19,27,621 crore as on March 31, 2023.
overseas branches in 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, and
operates in Kuala Lumpur (Malaysia) through its
Joint Venture - India International Bank (Malaysia)
Berhad, which is a Joint Venture with Bank of
Baroda and Indian Overseas Bank. The Gross
Advance portfolio of the foreign branches has
grown by 43.55%, and Operating Profit has grown
by 7.46% for the FY 2022-23.

5. Income and Expenditure:

4.2 Total Deposits increased to `11,17,716 crore as on Table 1: Income and Expenditure Statement
March 31, 2023. Out of this, CASA share (current (` in crore)
account and saving account) stood at 35.26 % as Sl. Parameter FY FY
on March 31, 2023. 2022-23 2021-22
1 Interest Earned 80743 67944
2 Other Income 14633 12525
3 Total Income (1+2) 95376 80469
4 Interest Expended 47978 40157
5 Net Interest Income 32765 27786
(1-4)
6 Operating 21931 18438
Expenses
w/w Establishment 12390 10115
Expenses
7 Total Expenditure 69909 58596
8 Operating Profit (3-7) 25467 21873
4.3 Gross Advances stood at ` 8,09,905 crore as on
March 31, 2023. RAM segment of your Bank 9 Provisions 17034 16641
increased by 14.94% YoY. 17.19% growth in Retail, 10 Net Profit/Loss 8433 5232
14.20% growth in Agriculture, and 13.06% growth 11 Earnings per share 12.34 7.73
in MSME advances are achieved on a YoY basis. (in `)
RAM advances as a percent of Domestic Advances
stood at 55.61%. 6. Profitability and Efficiency:
6.1 Your Bank reported an Operating Profit of `25,467
crore in FY 2022-23 as compared to ` 21,873 crore
in FY 2021-22.
6.2 Net profit of your Bank stood at `8,433 crore in FY
2022-23.
6.3 Cost-to-income ratio of your Bank stood at 46.27%
in FY 2022-23.
Integrated Annual Report
2022-23 157

8. Asset Quality:
8.1 Gross Non-Performing Assets (GNPA) of your
Bank stood at `60,987 crore as on March 31, 2023.
GNPA as a percent of gross advances stood at
7.53% as on March 31, 2023.

Strategy, Model & Capitals

6.4 During FY 2022-23, Return on Average Assets
stood at 0.69%, whereas Return on Equity stood at
13.26%.

Table 2: Efficiency Ratios

FY FY
Parameter (%)
2022-23 2021-22
Return on Average
0.69 0.47 8.2 Net NPA of your Bank stood at `12,928 crore as
Assets
on March 31, 2023, and the Net NPA ratio stood at
Return on Equity 13.26 10.11 1.70% as on March 31, 2023.

Notice
6.5 The following are the key productivity ratios of your
Bank for FY 2022-23.

Table 3: Productivity Ratios

FY FY
Parameter
2022-23 2021-22
Business per
25.50 23.26
Employee (` in crore)

Statutory Reports
Business per Branch
224.66 198.91
(` in crore)
Gross Profit per
33.69 29.09
Employee (` in lakh)
6.6 Dividend:
The Board of your Bank has recommended a
9. Capital Adequacy:
dividend of `3.00 per share for FY 2022-23. 9.1 The Capital Adequacy Ratio, as per BASEL III
norms, stood at 16.04% as on March 31, 2023.
7. Shareholders’ Return: Common Equity Tier I (CET I) capital of your Bank
7.1 Your Bank’s net worth was `63,599.34 crore as on stood at 12.36% in March 2023.
Financial Statements
March 31, 2023.
 Integrated Annual Report
158 2022-23

Table 4: Capital Adequacy Ratios - Basel III Security” category in “BFSI Technology Conclave &
(` in crore) Awards 2022” conducted by Indian Express group.

Parameters RBI March March • 1st rank in EASE 5.0 Reforms Index for Q3:FY 2022-
Minimum 31, 2023 31, 2022 2023 (Digitally enabled customer offerings, BIG
Benchmark Data and Analytics)
March 31, • Best Fintech Collaboration- Special Prize awarded
2023 by IBA Banking Technology Conference, Expo &
Total Risk- Awards
Weighted 5,78,455 545,923 • Atal Pension Yojna (APY): Your Bank received
Assets awards and recognition certificates from PFRDA
Total Capital in the various campaigns organized by PFRDA.
92,778 79,281
Funds NA Qualified in the following campaigns in the FY:
CET 1 o Circle of Excellence trophy for ED.
71,492 58,049
Capital
o Beat the best and be the best campaign.
Tier 1
80,478 66,589 o Rise above the rest for ZH/RH – 10 ZH and
Capital
120 RH qualified.
CRAR (%) 11.50 16.04 14.52
o LEADERSHIP PINNACLE campaign for MD
CET 1 (%) 8.00 12.36 10.63
and CEO.
Tier 1 (%) 9.50 13.91 12.20
o APY Big Billion campaign for MD and CEO.
Tier 2 (%) NA 2.13 2.32
o APY Big Believers campaign.
9.2 Capital Raised by your Bank
• 18 prestigious Kshetriya Rajbhasha Puraskars
Your Bank has issued and allotted Basel III
from the Department of Official Language, Ministry
compliant Tier 1 Bonds to the tune of `1983 crore
of Home Affairs, GoI.
and Tier II Bonds to the tune of `2200 crore during
the FY 2022-23. • 85 Shields for outstanding performance in
Official Language Implementation from different
10. Network TOLICs (Town Official Language Implementation
The Branch Network of your Bank is widely spread Committees) set up by the Govt. of India, Ministry
across the country with 8577 branches and 3 overseas of Home Affairs, Rajbhasha Vibhag, across the
branches (Hongkong, Sydney, Dubai) as on March 31, country.
2023. Out of these, 59 percent of the branches are • 1st Position in the category of “Best Guarantee
located in rural and semi-urban centers. Coverage (Number)” for FY 2022-23 by CGTMSE
11. Awards & Accolades: (Credit Guarantee Fund Trust For Micro And Small
Enterprises).
During FY 2022-23, your Bank received awards for
various initiatives taken under the areas of Digitization, • First position in the categories of Promoting Social
Financial Inclusion, HR management, Customer Service, Schemes, Implementing COVID-related Schemes,
etc. and Government Schemes and runners up in
the categories of CSR Initiative Bank and MSME
• Awarded DSCI Excellence Awards 2022 under the
friendly Bank in the event conducted by Chamber
category of “Best Security Practices in Banking
of India Micro Small & Medium Enterprises
Sector” and CISO of your Bank received an award
(CIMSME).
as “Security Leader of the Year”.
• 1st Position in the category of “BEST SME
• Received award under “IT Risk Management”
LENDING” in the 9th MSME Excellence Awards by
category from 18th Banking Technology Awards
ASSOCHAM.
by IBA. Bank has received this award 4 times
continuously from 2019-2022. • Awarded “Best Bank of the Year in the Financial
Ecosystem” conferred by Assocham in the
• Received Best Technology Bank and Best
Assocham Financial Conclave 2023.
Technology Talent awards in the 18th Banking
Technology Awards by IBA. • Awarded Golden Peacock HR Excellence Awards
2022, by the Institute of Directors
• Received two awards under the “Enterprise
Integrated Annual Report
2022-23 159

• Future of Workplace Disruptor 2022 (Large events, etc. User interactions were used to understand
enterprise) awarded by Mint W3 Champions 2022 brand perception and gain competitive intelligence to
• Indian Academia Conference 2023 Corporate increase business prospects through social media.
Award awarded by M/s People Lab Your Bank has thrived on cost-effective brand publicity
• Most Preferred Workplaces in BFSI 2022 awarded through social media and posted dynamic content
by Team Marksmen with attractive static/ video posts, bringing customer
awareness of the products, services, and offers.
• Innovation in HR Transformation awarded by BAI Awareness was also created through posts on cyber

Strategy, Model & Capitals

Global Innovation Award. security, urging customers to be aware of frauds, cyber
• Role Model Companies awarded by NCPEDP- LTI scams, and other social engineering, social causes,
Mindtree Helen Keller Awards-2022 remembering personalities, significant days/ events,
etc.
• Business Excellence through Learning &
Development award by BML Munjal Awards Your Bank is available 365x24x7 on all handles,
which are very responsive and reply instantly. In the
• ISTD 31st National Awards for Innovative Training
last year, 1.70 lakhs queries from social media users
Practices: 2020-21 awarded by ISTD, New Delhi
were responded ensuring timely guidance, proper
• “Pioneering Work in Creating Future Ready redirections, and complaint redressal resulting in
Inclusive Organization” awarded by IAC Corporate customer delight. Your bank brand was well received
Awards 2023 by the public at large, justified with a whopping 6699.25
• “Best Organization for PWD Inclusion” awarded by lakhs impressions and 932.79 lakhs engagements.
Business World People & Ask Insights “Disability

Notice
Your Bank has a huge follower base on social media
Positive Awards.” presence which has grown to 41.47 lakhs as on 31st
• Best AI and ML Bank Runner Up award and Best March 2023 against 24.33 lakhs last fiscal scaling a
Financial Inclusion Runner Up award in 18th IBA remarkable growth of 70.44% YoY.
Technology Conference, Expo & Awards. Your Bank is continuously measuring the overall
• FIEO (Federation of Indian Export Organisations) sentiment about existing or new products, collecting
has conferred your Bank with the “Export feedback about initiatives and customer interest
Excellence Gold Award” for 2 consecutive years for to meet the expectations of customers in product
its contribution to promoting Export growth in the offerings and services rendered.

Statutory Reports
country. Your Bank has run more than 150+ Digital Marketing
• Gold shield has been awarded by the Institute of campaigns on social media handles and targeted ad
Chartered Accountants of India in the category campaigns on Google Ads, creating buzz for maximum
“Public Sector Banks” for excellence in Financial reach on products/ services/ offers and roped in new
Reporting. customers along with improved search engine visibility
and enhanced website traffic.
• Bank has also received various awards for its
contributions in the field of Digital Transformation Your Bank has made e-commerce business tie-ups
and Accessibility: across hospitality, entertainment, and health sectors
with key market players like MakeMyTrip, Swiggy,
 The NCPEDP- LTIMINDTREE Helen Keller

Financial Statements
Zomato, BookMyShow, Apollo Pharmacy, Ferns N
Award
Petals, Swiggy Instamart, Meesho, GoIbibo, etc.
 Business Transformation Awards 2022 and encouraged cardholders to embrace cashless
 5th India BFSI Conclave & Awards 2022 payments thereby remaining with digital banking
ecosystem.
 Digital Transformation Summit India 2022
13. Changes in the Directors on the Board
12. Social Media
of your Bank:
Your Bank is extending information related to products/
services through its official handles on all major social The following changes took place in the Board of
media platforms, viz. Facebook, Twitter, Instagram, Directors of your Bank during the financial year 2022-
YouTube, and LinkedIn. Users were engaged in 23.
business interactions through conversation sessions/ • Shri Manas Ranjan Biswal, Executive Director of
Direct Messaging, customer care support, online your Bank, completed his term in office on April 30,
contests, Educational posts/ videos, organizing online 2022
 Integrated Annual Report
160 2022-23

• Shri Rajkiran Rai G, MD & CEO of your Bank, 15. Corporate Governance
completed his term in office on May 31, 2022.
The Board of your Bank is committed to adopting good
• Ms. A. Manimekhalai has been appointed as MD & Corporate Governance practices in letter and spirit. A
CEO on the Board of your Bank w.e.f. June 3, 2022. detailed report on Corporate Governance is given in a
• Shri Srinivasan Varadarajan has been appointed separate section of the Annual Report. The Corporate
as a Part-Time Non-Official Director and Non- Governance report for the financial year 2022-23 has no
Executive Chairman on the Board of your Bank audit qualifications.
w.e.f. November 7, 2022. 16. Corporate Social Responsibility (CSR):
• Shri Ramasubramanian S has been appointed as 16.1 Union Bank of India has been at the forefront of
an Executive Director on the Board of your Bank meeting its CSR commitments. Towards this, your
w.e.f. November 21, 2022. Bank established Union Bank Social Foundation
Trust (UBSFT) in the year 2006 as an extended
14. Directors’ Responsibility Statement
arm for carrying out the CSR activities of your
The Directors confirm that in the preparation of the Bank. The major CSR activities of your Bank are
annual accounts for the year ended 31st March 2023: now being carried out through the UBSFT. Its
• The applicable Accounting Standards had been Board is headed by your Bank’s Managing Director
followed along with proper explanation relating to & CEO, with executive directors as Vice Chairman
material departures, if any. Trustees. Other trustees include your Bank’s Chief
• Accounting Policies had been selected and applied General Managers, General Managers, and one
consistently, and made judgments and estimates independent trustee. The UBSFT Board provides
that are reasonable and prudent so as to give a true directions in accordance with your Bank’s thrust
and fair view of the state of affairs of your Bank at areas and undertakes review every quarter. The
the end of the financial year and of the profit and directions of the Board are executed by the Chief
loss of your Bank for that period. Executive of UBSFT. While the Registered office of
UBSFT is in Bengaluru, the administrative office is
• Proper and sufficient care was taken for the in Mumbai.
maintenance of adequate Accounting Records
in accordance with the provisions of the relevant Bank’s Stakeholders’ Relationship Committee also
Acts for safeguarding the assets of your Bank monitors and guides the CSR activity of your Bank
and for preventing and detecting fraud and other also that of UBSFT on a quarterly basis.
irregularities. UBSFT has been incorporated, aiming to support
• The Annual Accounts were prepared on a going- initiatives towards Social upliftment & improving
concern basis. the lives of underprivileged segments.

• Internal financial controls had been laid down to be 16.2 The CSR activities undertaken by your Bank /
followed by your Bank, and such Internal Financial UBSFT in 2022-23
Controls were adequate and were operating During the FY 2022-23, donations of `23.38 crores
effectively. Explanation.— For the purposes of were approved towards 51 projects/programs
this clause, the term “Internal Financial Controls” under various sectors like Education, Healthcare,
means the policies and procedures adopted by Sanitation, Community Development, Skill
your Bank to ensure the orderly and efficient Development, etc.,
conduct of its business, including adherence to Some of the major activities conducted in the area
your Bank’s policies, the safeguarding of its assets, of social responsibility during the FY 2022-23 are
the prevention and detection of frauds and errors, as under:
the accuracy and completeness of the accounting
records, and the timely preparation of reliable • Towards improving health infrastructure,
financial information. donated one X-ray machine with a digital
upgrade kit & one 33-seater camp van to
• Proper systems were in place to ensure compliance Tirumalai Medical Mission hospital, Ranipet,
with the provisions of all applicable laws and Tamilnadu.
that such systems were adequate and operating
effectively. • Donated an Ambulance to “SDMH” hospital,
one of the prestigious Hospitals in Jaipur, to
cater to the patients.
Integrated Annual Report
2022-23 161

• Donated an ICU Ambulance to Jayadev b. 38+ end-to-end digital journeys were rolled out to
Memorial Rashtrothana Hospital, one of the enhance the user experience, convenience, and
prestigious Hospitals in Bengaluru, to cater to adoption.
the patients c. Quarterly, 1600+ cr. of business generated through
• Donated towards the renovation of the Rajkiya STP journeys across the RAM segment.
Vriddhashram, Varanasi. d. Implemented account opening process via video
• Donated two food delivery vehicles to Akshaya KYC with the objective of making the customer
Patra Foundation, Bengaluru, for their mid-day onboarding process simpler.

Strategy, Model & Capitals

meal scheme at Mangalagiri, Andhra Pradesh. e. To gather feedback on customer expectations in a
• Organized Financial Literacy Camp at RSETI frequent manner and to re-engineer the products/
Varanasi services as per the requirement, your Bank has
• Provided modern infrastructure in the activated 10 channels for capturing customer
conference hall at Government First Grade sentiment.
College, Hebri, Karnataka, towards providing of f. To have a greater reach to the underserved
quality & modernized education environment remotest areas of the country, your Bank has
to the college students coming from socially partnered with several NBFCS in RAM segments
& economically weaker sections of society. for its co-lending journey. A separate vertical
• Conducted Narishakti credit camp for RSETI was created for co-lending, entrusted with the
Chikmagaluru trained women entrepreneurs & responsibility of expanding the portfolio.
credit sanction letters were issued. g. Your Bank was the first public sector bank to go

Notice
live on the Account Aggregator Framework in the
17. EASE (Enhanced Access and Service month of May last year. Your Bank has registered as
Excellence) both FIP (Financial Information Provider) and FIU
Enhanced Access and Service Excellence (EASE) was (Financial Information User), enabling customers
launched by the Government of India in the financial to share data on a real-time basis and providing
year 2018-19 to usher in next-generation reforms in them with a seamless journey eliminating the need
Public Sector Banks. The performance of the banks is for physical documentation.
measured on a common index on a quarterly basis. The h. Your Bank has also undertaken several employee-
fourth iteration of the EASE agenda for the FY 2021-22

Statutory Reports
friendly initiatives such as reimbursement of
was launched under the theme “Technology-Enabled expenses on Child Care facilities to Women
Collaborative and Simplified Banking,” and your Bank Employees and Single Male Employees (Parents),
was ranked 4th position in EASE 4.0 annual index. Collaborating with external partners to cater to
The fifth iteration of EASE under the theme “Enhanced the training needs of the employees, introducing
Digital Experience, Integrated and Inclusive Banking” an employee grievance redressal portal, creating
has set forth long-term reforms objectives, which a forum for career counselling for employees,
is to be achieved over a period of three years with amongst others.
well-defined annual milestones. The reform focuses In the latest EASE 5.0 index for Q3 FY 2022-23, your
on promoting digital banking offerings, enhancing Bank stood first amongst all PSBs. Your Bank has

Financial Statements
analytical capabilities, broadening PSB’s technological also set the benchmark under four out of five themes
capabilities, broadening and deepening the nature by securing the first rank amongst PSBs. The themes
of co-lending partnerships, and enhancing employee are Digitally-enabled customer offerings, Big data
engagement and satisfaction, among others. and analytics, Modern technology capabilities, and
Your Bank has made considerable progress in EASE Employee development & governance.
Index over the past five years in institutionalising the Your Bank is working in tandem with the reform
reforms agenda in your Bank. Major developmental
objectives envisaged to improve customer service
goals accomplished by your Bank towards developing
through greater flexibility and faster delivery of services.
internal capabilities and enhancing the banking
With improved operational efficiency and increased
experience of the customers in the FY 2022-23 include:
customer engagement, your Bank is committed to
a. Rebranded the Mobile Banking Application as
creating an inclusive digital finance ecosystem.
“VYOM” and launched the new super-app with
350+ best-in-class features and an explorative UI/
UX design for a unique banking experience.
 Integrated Annual Report
162 2022-23

18. Acknowledgements: 18.3 The Directors place on record their deep

appreciation for the dedicated service and valuable
18.1 The Directors thank the shareholders, valued
contribution made by members of staff in the
customers, well-wishers, Share Transfer Agent,
overall performance of your Bank during the year
and correspondents of your Bank in India and
and look forward to their continued cooperation in
abroad for their goodwill, patronage, and support.
the realisation of the corporate goals of your Bank
18.2 The Directors acknowledge with gratitude in the years ahead.
the valuable and timely advice, guidance, and
18.4 The Directors also express that the staff members
support received from the Government of India,
stay safe, healthy and maintain good health.
Government of Maharashtra, Reserve Bank of
India, Securities & Exchange Board of India,
Insurance Regulatory and Development Authority For and on behalf of the Board of Directors,
of India, Central Vigilance Commission, BSE, NSE,
financial institutions, correspondent Banks and
Statutory Central Auditors of your Bank, in the
functioning of your Bank.
Place: Mumbai (Srinivasan Varadarajan)
Date: 23.06.2023 Chairman
Integrated Annual Report
2022-23 163

MANAGEMENT DISCUSSION AND ANALYSIS

1 Global Economy rates and weak economic activities. Financial

markets in Emerging Markets underperformed
1.1 Global economy recorded slower than normal
in H1:2022 as growing inflationary pressures,
growth followed by weak fundamentals in last
recession fears, and monetary tightening in the
two years. Series of events including war in

Strategy, Model & Capitals

major Advanced Economies had significant
Europe, tightening monetary policies, inflationary
repercussions on investors’ sentiments in EMEs.
pressure and supply shocks impacted the global
growth performance in FY 2022-23. Financial 1.6 Bond yields across major AEs hardened in H1: 2022
market conditions across the globe were highly due to surging inflationary pressure and tightening
volatile with more frequent rate hikes and events monetary policy stance. The US 10-year treasury
of capital outflows. Prolonged tightening policy yield raced up to a 3-year high in H1:2022 as the
actions in the Advanced Economies (AE) drove markets priced-in more aggressive Fed tightening
the major instabilities in capital markets and than previously anticipated. Nevertheless, in
its repercussions were felt in Emerging Market H2:2022, bond yields across major AEs softened
Economies (EMEs) too. Disruption in supply chain on signs of easing inflationary pressures and
of essentials had led to inflationary pressure and expectations of less aggressive rate hikes. Bond
pushed the world towards ‘cost of living crisis’. yields in major EMEs have moved with a hardening
Soaring prices of food, energy and intermediate bias driven by domestic monetary tightening

Notice
commodities pushed the central banks to take as well as global cues in H1:2022. Hardening of
tougher policy actions which constrained growth yields continued in H2: 2022 as spillovers of tighter
in the FY 2022-23. Nevertheless, sustenance in monetary policy impulses from AEs continued to
demand conditions across the globe as a part of impact the EMEs.
post pandemic recovery, somewhat prevented the 1.7 In its latest World Economic Outlook report, the
world from facing a recession. International Monetary Fund (IMF) has projected
1.2 Global commodity prices were on higher trajectory global growth at 2.8% in 2023 and 3.0% in 2024.
due to geo-political tensions and supply chain The projections are lowered by 0.1 percentage
disruptions. Prices cooled-off from December point each for 2023 and 2024 from January

Statutory Reports
2022 onwards, soon after correction in the prices publication. Instability in financial conditions in
of meat, vegetable oil and dairy products. However, Advanced Economies and prolonged impact of
prices of cereals moderated marginally whereas war are the down-side risks to global growth.
sugar prices increased which posed upward 1.8 The IMF expects consumer prices to increase by
pressure to food indices. 7.0% in 2023, which is 0.4% more than January
1.3 In H1:2022 crude oil prices hovered at USD 100 2023 estimates. In 2024, consumer prices are
followed by a gradual softening in H2: 2022. Crude expected to cool down moderately to 4.9%. World
oil demand faced some down-turn in the H2:2022 Trade volume is expected to grow by 2.4% in 2023,
due to weak industrial activity in Europe, COVID which remains largely unchanged from January

Financial Statements
lockdowns in China, and winter blizzards in the US 2023 forecasts. World trade volume is expected to
and Canada that disrupted holiday travel. revive back in 2024 with 3.5% growth.
1.4 Driven by sharp rise in prices of food, metals and 2. Domestic Economy
essential commodities, consumer price inflation
2.1 As per the National Statistics Office (NSO)
remained elevated across the globe during 2022.
provisional estimates of national income, Indian
Along with food and energy prices, core inflation
economy has grown by 7.2% in FY 2022-23
(excluding food and fuel) too remained elevated in
compared to growth of 9.1% in FY 2021-22. The
2022.
GDP at constant (2011-12) prices in FY 2022-23 is
1.5 Global financial markets remained highly volatile in estimated to attain a level of ` 160.06 lakh crore,
2022 due to geopolitical tensions, soaring inflation as against ` 149.26 lakh crore in FY 2022-23. From
and tightening monetary policy. Overall, the US S&P supply side, agriculture, industry and services
index fell by 17.9% in H1:2022. European stocks too sector estimated to have grown by 4.0%, 4.4%,
remained low in H1:2022 amid the rising interest and 9.5% respectively in FY 2022-23 compared to
 Integrated Annual Report
164 2022-23

3.5%, 11.6% and 8.8% respectively in same period 4. Stock market performance
previous year. While agricultural growth improved
4.1 In FY 2022-23, domestic financial markets were
compared to previous year, industry sector growth
impacted by global spillovers, especially in the
was seen on a lower trajectory.
equities and forex segments. Domestic equity
2.2 The Reserve Bank of India (RBI) in its latest recent market remained in mild losing phase in H1:
monetary policy, projected real GDP growth for FY FY 2022-23 while showing better resilience
2023-24 at 6.5%, with Q1 at 8.0%; Q2 at 6.5%; Q3 than most of its global peers. In H2 FY 2022-23,
at 6.0%; and Q4 at 5.7%. These numbers indicate equity markets resumed the positive tone amidst
recovery from pandemic-led slow-down and overall strong buying by the Foreign Portfolio Investors
broadening of economic activity; the expected (FPIs), robust corporate earnings, correction in
moderation in inflation; the fiscal consolidation commodity prices, and good progress of the
with focus on capital spending. Downside risks monsoon.
to growth emanate from tightening monetary
4.2 Sensex declined by 2.5% in H1:2022-23 to close at
policies, failure of financial institutions in AEs,
57,108. Sensex gained 2.7% in H2 to close at 58,992
monetary policy actions of the U.S Federal Reserve
on March 31, 2023. Continuing the resilience, the
(the US Fed), drag from net external demand,
BSE banking index (the Bankex), gained by 0.9% in
global financial market volatility, EL Nino impact
March 2023 in contrast to declines of 25.2% and
on agriculture and Oil shocks, etc.
13.8% in the US and European banking benchmarks
3 Price scenario: respectively in March 2023.
3.1 Headline inflation, measured by the consumer 5 Yield Movement:
price index (CPI), remained above the RBI’s
5.1 During H1:2022-23, G-sec yields exhibited two-way
upper target level of 6% in H1:FY 2022-23. Global
movements. The benchmark 10-year yield rose by
commodity price shocks resulted in spill-overs
64 basis points (bps) during Q1, driven by the rise
in domestic markets. In Q1 FY 2022-23, the heat
in US yields and crude prices; the announcement
wave and consequent production losses added
of a larger than anticipated Central Government
to a sharp pick-up in prices. As a result, headline
borrowing calendar for H1:2022-23, higher than
inflation reached to 7.3% in Q1 FY 2022-23, and
expected CPI inflation prints, and repo rate hikes.
6.9% in Q2 FY 2022-23. Pricing pressure continued
to remain higher in H2 FY 2022-23 too followed by 5.2 During H2, G-sec yields were largely range-
improvement in domestic demand, spike in input bound. Yields hardened in October 2022, tracking
costs and stickiness in core inflation. In Q3 and higher than expected domestic CPI inflation for
Q4 FY 2022-23, headline inflation was at 6.1% and September. The yield moderated in November,
6.5%, which was comparatively lower than the first taking cues from softening US yields with a lower-
half, but continued to be higher than RBI’s policy than-expected US CPI print and declining crude
mandate. prices. In Q4, yields softened in early February
on a lower than anticipated market borrowing
3.2 Prices of food basket showed upward bias during
programme of the central government for FY 2023-
the year due to sustained price pressures from
24. The yield on 10-year G-Sec closed 2022-23 at
cereals and spices and a pick-up in protein-based
7.31%.
food inflation. Nevertheless, prices of vegetables
and other perishables showed some transient 5.3 Yields on T-bills firmed up across tenors in sync
corrections in H2, which pulled the overall numbers with the increases in the policy repo rate and the
marginally. Volatility in fuel prices continued as a introduction of the Standing Deposit Facility (SDF)
part of global supply shocks and related spill-over. and moderation in surplus liquidity.
However, during the entire year FY 2022-23, core
6 External Sector
inflation (excluding food and fuel) was sticky at 6%
6.1 Amidst persisting geopolitical tensions and
reflective of higher prices of essential services.
slowing external demand, merchandise exports
3.3 Inflation trajectory for FY 2023-24 would be lost pace, with growth of 6.7% to USD 450 billion
shaped by both domestic and global factors and in FY2022-23. Merchandise imports, however,
expectations remain largely range bound with remained buoyant, at USD 714 billion, rising 16.5%
gradual cooling, The RBI projects CPI inflation at from year ago, reflecting strong domestic demand
5.1% for FY 2023-24, with Q1 at 4.6%, Q2 at 5.2%, conditions. These developments led to a widening
Q3 at 5.4 % and Q4 at 5.2%. of the merchandise trade deficit.
Integrated Annual Report
2022-23 165

6.2 The current account deficit (CAD) was 2.8% of 7.2 In FY 2022-23, the RBI brought-in various
GDP in Q1:2022-23. The CAD narrowed to 2.2% of modifications in the liquidity operations including
GDP in Q3 from 3.7% in Q2, mirroring the trend in introduction of the SDF at 25 bps below the policy
merchandise trade deficit for FY 2022-23. repo rate thereby removing Fixed Rate Reverse
6.3 Net Foreign Direct Investments (FDI) flows stayed Repo (FRRR) as the floor for Liquidity Adjustment
strong at USD 28 billion, albeit lower than USD Facility (LAF) from April 2022. In September, it
38.6 billion a year ago. The FPIs reduced their announced the merger of the 28-day variable rate
exposure in domestic capital market, reflecting reverse repo (VRRR) with the fortnightly 14-day

Strategy, Model & Capitals

the generalized risk aversion towards EME assets main auction.
in the face of the strengthening of US dollar, 7.3 Further, the RBI provided a forward- looking
intensified geopolitical tensions, elevated global guidance for remaining vigilant, agile, and nimble
inflation and faster policy tightening by major in its liquidity management operations to meet
central banks. the productive requirements of the economy
6.4 In the currency market, the Indian rupee (INR) while mitigating the impact of global spillovers on
traded with a depreciating bias against the US domestic financial markets.
dollar (USD) in H1:2022-23. Market interventions 8 RBI’s policy decisions:
by the RBI contained volatility and ensured orderly
8.1 During FY 2022-23, the Monetary Policy Committee
movement of the INR. The appreciation of the US
(MPC) increased the policy repo rate by 250 bps,
dollar, triggered by aggressive rate hikes and the
and policy remained focussed on progressively
hawkish stance of the US Fed, exerted depreciation
aligning inflation with the target, while supporting
pressure on EME currencies in H2 2022. Dragged

Notice
growth.
by these concerns, the INR touched an all-time low
of 83.2 per USD in October 2022. Nevertheless, the 8.2 Reflecting these developments, the weighted
INR outperformed major EME currencies, including average call money rate (WACR), on an average,
the Argentine Peso, the South African Rand, and was broadly aligned with the repo rate with 3 basis
the Turkish Lira during 2022-23. points (bps) above the repo rate in H2 as compared
with 27 bps below in H1 of FY 2022-23.
6.5 India’s foreign exchange reserves stood at
USD 578.4 billion, equivalent to 9.7 months of 9 Banking environment:
merchandise imports in FY 2022-23. 9.1 In FY 2022-23, despite a hostile global financial

Statutory Reports
6.6 Non-food bank credit of scheduled commercial environment, Indian banking system remained
banks (SCBs) rose 15.4% year-on-year (y-o-y) resilient with improved profitability, adequate
as at end-March 2023 from 9.7% a year ago. capital buffers and moderate levels of non-
Improvement in bank credit was seen across all performing loans.
major sectors. Credit to the agriculture sector grew 9.2 Aggregate deposits of SCBs registered a faster
by 15.4% (y-o-y) in FY 2022-23 as compared with growth (9.6% y-o-y as on 24th March 2023, as
9.9% a year ago, supported by the above normal compared to 8.9% growth as on 25th March 2022)
monsoon and the enhanced target for agricultural during FY 2022-23, due to considerable increase in
credit. Credit growth to industry registered a interest rates.
growth of 5.7% in FY 2022-23 as compared to

Financial Statements
7.5% previous year, led by medium industry and 9.3 Banks’ deposit and lending rates moved higher
sustained growth in the micro, small and medium in tandem with increases in the policy repo rate.
enterprises (MSME) segment. Retail loans with The Weighted Average Lending Rate (WALRs)
growth of 20.6% y-o-y, aided by housing and vehicle on fresh rupee loans rose by 181 bps during
loans, remained the major driver of overall credit May 2022-March 2023. The weighted average
growth during the FY 2022-23. domestic term deposit rate (WADTDR) on fresh
deposits increased by 242 bps during May 2022
7 Liquidity conditions: to March 2023. The transmission to WADTDR on
7.1 Liquidity conditions remained highly volatile outstanding deposits has picked-up gradually,
during the FY 2022-23. In H1:2022-23, the focus of reflecting the longer maturity profile of term
liquidity management moved to gradual, calibrated deposits contracted at fixed rates.
withdrawal of surplus liquidity in a non-disruptive 9.4 Asset quality of the SCBs improved, with the overall
manner. Accordingly, surplus liquidity moderated non-performing assets (NPA) ratio declining to
further in H2:2022-23.
 Integrated Annual Report
166 2022-23

4.5% in December 2022 from 6.5% a year ago. • Dedicated NRI Back office has been established
Asset quality improved across all the major at Mangalore with a view to providing support to
sectors. NRI & NRI focussed branches. Customer queries &
grievances are also handled by the team.
10 Resources Mobilisation
• Relationship Managers have been posted at
Total deposits of the Bank stood at `11,17,716 crore.
regional offices & other identified centres to cater
CASA deposits stood at 35.25% of total deposits.
to the needs of Top clients / HNI customers at
Composition of Deposits: their doorstep and provide them with personalized
(` in crore) service on case to case basis.

11 Credit Management
Particulars 31.03.2022 31.03.2023
11.1 Overall Credit:
Total Deposits 10,32,392 11,17,716
The Bank’s total advance was `8,09,905 as of
CASA Deposits 3,77,193 3,94,055 31.03.2023, the corporate & others advance stood
Saving Deposits 3,04,541 3,20,075 at `3,73,188 Crore. 14 Large Corporate Branches
Current Deposits 72,652 73,980 (LCB) and 56 Mid Corporate Branches (MCBs)
across the country are catering to the needs of
Initiatives taken during the year: corporate clientele. Your Bank has made judicious
• Bank aimed at an exclusive focus on Salary disbursements to investment-grade projects of the
accounts. The salary portfolio has shown a growth large corporate, thus participating in the growth
of 26.55%. opportunities in the Indian economy.
• Special SB products such as SBHNI Prime was 11.2 Mid Corporate:
launched to cater to the needs of the affluent
• Your Bank registered growth of 15.12% on a
section of society.
YOY basis in Mid corporate accounts.
• Special Account for Minors (Industry First product):
• A total of 171 New Business Proposals
Union Muskaan launched to inculcate Saving amounting to `21,615 crore have been
habits among children and to help parents/ approved during FY 2022-23, out of which final
guardians build a corpus for the child’s future. The sanction has been accorded in 64 accounts
scheme also has the additional feature of a free amounting to `7704 crore.
term insurance facility attached with RD linked to
• To increase non-interest income, enhancement
each MUSKAAN Account.
was accorded in Non-Fund Based limit (Off
• Pan India’s 233 branches have been identified for Balance sheet exposure) amounting to `3000
handling/accepting bulk deposits of `2 crores crore in 91 accounts.
and above. This has helped other branches to
11.3 MSME:
concentrate on retail term deposits and the CASA
portfolio.
Business Growth:
• Special Retail Deposit Schemes in the slab of 599
(` in crore)
days, 700 days, 800 days & 3 years launched to
give momentum to growth in the retail deposit
Particulars 31.03.2022 31.03.2023 YoY Growth
segment. This helped your Bank garner total of
(%)
`1,00,000 Cr (approx.) from 20,46,357 accounts as
on 31.03.2023 Total MSME 110577 125022 13.06
Advances
• MOU signed with Indian Navy and Naval Dockyard
Mumbai for opening Salary accounts of Navy
MSME advances have registered YoY growth of
Personnel and Naval Civilians
13.06 % during the FY 2022-23.
• “Pravasi Hamara Gaurav” drive was conducted,
and 77 NRI meets were organized in Pan India with
a focus on garnering quality business from NRIs.
Integrated Annual Report
2022-23 167

Performance under identified MSME Schemes: To cater to MSME Client Base and timely address
Detailed below is the performance of your Bank their credit requirements, 80 additional Union
under the identified MSME Schemes during the MSME First Branch (UMFBs) were launched
year. during the FY 2022-23 taking the number of
total specialized branches to 105 with an MSME
Name of the Sanctioned A/c Sanctioned Amt.
portfolio of `9000.00 Crores.
scheme (Number) (` In Crore)
To cater to the requirements of the Startups,
Union MSME 5,525 4,307
a specialized Startup Branch was launched in

Strategy, Model & Capitals

Suvidha
Bangalore during FY 2022-23.
Union Nari Shakti 19,637 2,357
Creation of the Dedicated “Centralized Guarantee
Union Equipment 899 819
Cell” for Credit Guarantee Schemes: In order to have
Finance
focused approach and freeing field functionaries
Union Ayushman 567 378 for marketing activity and business growth,
Plus operational activities related to credit guarantee
Union Solar 108 105 are shifted to a dedicated back-office structure. The
Guarantee Cell is set up at MSME Vertical, Central
Union Nari Shakti: An exclusive scheme for Office. Further, a need was felt for automation of
financing women entrepreneurs i.e. “Union Nari the process. To ensure timely compliance with
Shakti” Scheme with attractive features such as the credit guarantee-related activities, an inhouse
waiver of Processing charges, reduced margin portal called ‘Credit Guarantee Management
requirement, collateral coverage, rate of interest Solutions (CGMS)’ was created. This portal had a

Notice
etc. The total number of accounts financed as pivot role in the API integration of fresh guarantee
on 31.03.2023 is 24,669 with sanctioned amount coverage with CGTMSE. CGMS was made live on
of ` 3232.57 Crores and outstanding balance of 1st September’22 for all India Branches. Currently,
` 2598.11 Crores. During the FY 2022-23, your all the new credit guarantees are obtained online
Bank sanctioned 19,637 fresh accounts to the tune through the CGMS portal, and also guarantee fee
of ` 2357.33 Crores. Including the enhancement is debited directly to accounts from the backend.
portion in the existing accounts, your Bank This is to ensure seamless activities related to
sanctioned 20,618 accounts to the tune of obtaining guarantee coverage under the various
` 2489.64 Crores. To take a leap further, Your Bank Schemes, claim lodgment, and maintenance of the

Statutory Reports
has introduced end-to end digital New platform for portfolios in time bound manner.
Fresh Nari Shakti applications during the FY 2022- Training Programme: During FY 2022-23,
23. This platform enables Existing to Bank (ETB) & Marketing officers were introduced to the MSME
New to Bank (NTB) customers to avail loan above Loan Points (MLP), and each of them was imparted
` 2.00 Lakhs & up to ` 10.00 Lakhs through mobile an orientation and training programme on credit
and web application interfaces in a self-service appraisal and marketing. In order to have the
mode. complete development of credit officers posted
MSME Loan Points: During the financial year, at MSME Loan Points (MLP), including the MLP
MSME processing centers of your Bank have Heads, training was provided within the existing

Financial Statements
sanctioned/appraised credit proposals (including training structure to improve the knowledge level
Agri and corporate) of `35,598 Crore, out of which for better implementation at their job role.
` 18,140 Crore was within their own delegation. PMEGP (Prime Minister’s Employment Generation
Outreach Camps: Executives from the Central Programme): Bank is playing an instrumental role in
Office have regularly visited their assigned regions the implementation of the PMEGP Scheme across
to drive the growth of the MSME business. This has all the regions with regular monitoring at all levels.
resulted in increased monitoring of their regions During the FY 2022-23 Bank has enabled 7,562
with improved MSME business numbers. Individuals to embark on the entrepreneurship
journey with total assistance (Margin Money) of
Cluster Schemes: Bank has approved 33 cluster
` 298 Crore.
schemes across Pan India. During the financial
year, the utilization under the approved clusters PMMY (Pradhan Mantri Mudra Yojna): To promote
has increased from `2191 Crore as on March 2022 entrepreneurship and to enable micro credit to the
to `10,113 Crore as on March 2023. aspiring youth, Bank has been at the forefront in
implementing the Pradhan Mantri Mudra Yojna
by sanctioning 814221 applications with a total
 Integrated Annual Report
168 2022-23

sanction of ` 13,078 Crore during the FY 2022-23.  Total Retail growth of `23429 Crore over March’22.
PMSVANidhi (PM Street Vendor’s Atma Nirbhar
 Growth on YOY basis is at 17.19 %.
Nidhi): To implement the financial inclusion of
Street Vendors by providing them with micro-
 PAN India basis, RLPs (CPCs) sanctioned Retail
credit and inculcating the habit of financial
loans of ` 32375 Cr during FY 2022-23.
discipline among them, your Bank has assisted
1,15,695 street vendors with `193.83 Crores under Initiatives Taken:
PMSVANidhi scheme during the FY 2022-23.
 Separate scheme for Special Education Loans for
Initiatives to reduce environmental footprint as a
Abroad Study, Special Education Loan Scheme for
part of ESG initiatives:
Premier Medical Institutes (Union Medicos)
Digital Banking Initiatives: MSME Customers can
 Dedicated education loan officers are earmarked
now apply for loans digitally for their business
in the field as the single point contact for education
requirements. On this front, Bank has launched
loans.
an end-to-end digital solution like Straight through
Processing (STP) Kishore and Tarun Mudra Loans  Introduction of a separate Retail Gold loan scheme
(up to `10.00 Lacs). Union Nari Shakti (up to for Education loans.
`10.00 Lacs) and GST Gain (up to `25.00 Lacs) are  Introduction of Digital Education Loan for Studies
also available digitally. in Premier Institutes.
Union Solar (New Product): Bank has launched  Launch of Union Suraksha Personal loan to finance
this product to finance the borrowers for installing for credit life premium.
Solar Power Plants for their captive use and help
 UBISL has been empaneled as CSA for canvassing
in moving towards usage of non-conventional
education loan leads.
sources of energy. In order to make the scheme
attractive and cost-effective, waiver of collateral  Maruti Suzuki Integration with Bank’s Lending
requirements and concessional rate of interest is Automation System (LAS).
approved. 12.1 Agriculture: Agriculture lending has always been
12 Retail: the priority area for your bank. Agriculture advances
constituted 17.77% of the Gross advances of your
The Total Retail Advances (excluding PWO) reached
Bank as of 31.03.2023. Your Bank registered a
`1,59,702 crores registering overall Y-o-Y growth of
Y-o-Y growth of 14.20% in Agriculture during FY
17.19%.
2022-23 with an outstanding of `1,51,993 Cr as of
Product-wise Y-o-Y growth under Retail Lending is as 31.03.2023.
under:
Outstanding credit to small and marginal farmers
(` in crore) as of March 31, 2023, stood at `95,171 Cr, which
constituted 13.33 percent of ANBC against the
Scheme Actual Actual Growth % Growth benchmark of 9.50 percent of ANBC. During FY
March’22 March’23 over Over 2022-23, Bank issued 4.11 lakh fresh Kisan Credit
March’ 22 March 22 Cards amounting to `6,896.45 Cr.
Home 71929 79726 7797 10.84 12.2 Priority Sector Advances:
Miles 12705 16597 3892 30.63
Education 7590 9419 1829 24.10 Your Bank remains committed to extending
Mortgage 12607 14308 1701 13.49 credit facilities to the needy segments of society.
Personal 6126 11734 5608 91.54 Your bank’s priority sector advance stood at
Others 26025 28812 2787 10.71 `302006 Cr as on March 31, 2023. Against the
Total Retail 136982 160595 23613 17.24 statutory target of 40% under Priority sector
Advance advances, your Bank achieved 42.31 percent of the
(incl. PWO) Adjusted Net Bank Credit (ANBC) for the Quarter
PWO (-) 709 893 184 25.95 that ended March-2023 after excluding the PSLC
Total Retail 136273 159702 23429 17.19 sales and including the investments in RIDF/
A d v a n c e SIDBI/MUDRA/NHB.
(Excluding Against the statutory target of 18% under
PWO) Agriculture Priority as on March 31, 2023, Bank’s
performance is 18.97%. Bank could also sell the
Integrated Annual Report
2022-23 169

surplus of `15450 Cr under PSLC-Small & Marginal 24 RSETIs in districts where your Bank has “Lead
Farmer. Bank Responsibility”. As of March 31, 2023, the
(` in crore) total number of candidates trained in our RSETIs
is 308494, out of which 205525 candidates have
Benchmark been employed. Thus, in total, your Bank has 30
Particulars % to FY 2022-
(Including RIDF)
31.03.23 31.03.22 Y-o-Y (%)
ANBC 23 (% of RSETIs (including 24 RSETIs wherein our Bank is
ANBC) the Lead Bank) present across the country, creating
Priority Sector employment opportunities for Unemployed Rural

Strategy, Model & Capitals

Credit (After youth.
302006 272282 10.91 42.31 40%
Deducting PSLC-
Sold) • Regional Rural Banks (RRBs): Your Bank sponsors
Agriculture Chaitanya Godavari Grameen Bank (CGGB),
Priority Sector
(After Deducting
135430 127343 6.35 18.97 18% Guntur, Andhra Pradesh state. It has a network
PSLC-Sold) of 238 CBS Branches spread over three districts
Small & Marginal of Andhra Pradesh, namely, East Godavari, West
Farmers (After Godavari & Guntur. The business of CGGB has
95171 88194 7.91 13.33 9.50%
Deducting PSLC-
Sold) increased to `17582.21 crore, with a growth of
Credit to Weaker
19.77 percent during FY 2022-23. Total Deposits
section (After
118631 104698 13.30 16.62 11.50%
stood at `7481.59 Cr and Advances at `8820.64
Deducting PSLC-
Cr with a Net profit of `232.34 Cr. The Gross NPA
Sold)
is 0.63%, and Net NPA is 0% as of 31.03.2023.
Specific Lending for Social Upliftment
• Pradhan Mantri Fasal Bima Yojana (PMFBY):

Notice
Your Bank has continued to keep its focus on social Your Bank is implementing PMFBY for the
development and equal opportunities for all segments benefit of farmers who face climatic adversities
of society. Accordingly, your Bank extended credit very often and suffer a lot. All farmers, including
facilities to various weak and unserved sections of sharecroppers and tenant farmers, grow the
society, specifically women, minority communities, and notified crops in the notified areas covered under
self-help groups. PMFBY.
• Women Beneficiaries: With a view to promoting • Area Specific Schemes
entrepreneurs among women and making
Bank has formulated 32 Area Specific Schemes
them self-reliant, your Bank encourages credit

Statutory Reports
based on the available potential for the benefit of
to women entrepreneurs. During FY 2022-23,
the farmers in the respective areas to augment
Total outstanding loans to women beneficiaries
lending under agriculture.
increased from `89110 crore in March 2022 to
`105954 Crore in March 2023, i.e., a growth of • Atmanirbhar Bharat Schemes/Emerging
18.90%. Renewable Sectors:
• Minority Communities: Your Bank is extending Your Bank has started capitalizing on huge
finance to the minority communities in line with the investment taking place in Agri Infrastructure,
Government of India directives on the welfare of Animal Husbandry, and Food Processing through
minority communities. As on March 31, 2023, the various Atmanirbhar Bharat Schemes like the

Financial Statements
outstanding credit to minorities stood at `28,314 Agri Infrastructure Fund, Animal Husbandry
crore, which constitutes 9.38 percent of Priority Infrastructure Development Fund, and Pradhan
sector advances. Mantri Formalization of Micro Food Processing
Enterprises.
• Weaker Section: Your Bank has been actively
participating in financing for weaker sections of Your Bank is also leveraging other schemes
society. Finances to weaker section net sale of under renewable energy like Compressed biogas
PSLC-SF/MF has increased from `104698 crore to schemes, solar power plants, and solarization of
`118631 crore, as on March 31, 2023, registering a pump sets under the PM KUSUM Scheme to help
growth of 13.30 percent. Outstanding credit stood in achieving sustainable development goals and
at 16.62 percent of ANBC against a benchmark of improving Green Financing.
11.50 percent. • Digitization of KCC
• Rural Self Employment Training Institute (RSETI): Your Bank rolled out Kisan Credit Card Auto
With the aim of mitigating the employment problem Renewal STP (Straight Through Processing) in
among the rural youth, your Bank has established
 Integrated Annual Report
170 2022-23

the entire state of Karnataka on 29.11.2022 & • Cumulative enrolments under APY increased by
in the state of Madhya Pradesh on 30.11.2022. 8.77 lakhs during the year. As of 31.03.2023, Your
Fintech has been onboarded and will be scaled Bank has achieved 123% of the Target of 7.1 lakhs
up gradually in all remaining states where land allocated by the Dept. of Financial Services for FY
records are digitized). Kisan Credit Card STP for 2022-23 for APY enrolments.
Fresh sanctions up to ` 1.60 lakhs has been rolled • No of BCs increased to 17662 from 16948.
out in the State of Madhya Pradesh on 11.11.2022
and launched in 11 branches of Karnataka state on New initiatives taken:
20.03.2023 on a pilot basis. a. Enrolment of New Pension Scheme (NPS) at BC
12.3 Financial Inclusion: Points.

Summary of performance during the FY 2022-23: b. BC Monitoring Mobile App is made live at the
Google Play store to enable the Branch/RO/CO to
(` in lacs) complete the BC Monitoring through Mobile and
S . Parameters 31.03.2022 31.03.2023 will have the advantages like Paperless Inspection
No of BCs, Geo Tagging, Social Audit concept, Real-
1 No. of PMJDY A/cs 244.78 280.00 Time MIS of the audit coverage, Risk categorization,
2 Balances in PMJDY a tool for Preventive Vigilance measures and
7780 9046 Early Warning Signal of irregularities at BC points,
A/cs (Crs)
availability of Reports through Dashboard, etc.
3 RuPay Cards issued
118 156
A/cs 13 International Banking
4 Aadhaar Seeded A/ Overseas business of your Bank stood at `36,229 Crore
204 229
cs
as on March 31, 2023, compared to `17,429 Cr as on
5 Zero Balance A/cs 42 47 March 31, 2022. Your Bank has three overseas branches
6 Overdraft Sanctioned 2.44 2.41 in Hong Kong, DIFC (Dubai), and Sydney (Australia) and
7 APY (cumulative) 25.01 33.77 operates in London, United Kingdom, through its wholly
owned subsidiary, Union Bank of India (UK) Ltd, and
8 PMJJBY in PMJDY
6.52 8.39 in Kuala Lumpur (Malaysia) through its Joint Venture
A/cs
- India International Bank (Malaysia) Berhad, which is a
9 PMSBY in PMJDY A/ Joint Venture with Bank of Baroda and Indian Overseas
29.77 36.57
cs
Bank. The Gross Advance portfolio of the foreign
10 No Transactions at branches has grown by 43.55%, and Operating Profit
1045 1110
BC Point has grown by 7.46% for the FY 2022-23.
11 Amount of
Transactions at BC 62945 71618 Trade Finance
Point (Crs) Your Bank offers a bouquet of Trade Finance products
12 Average Enrolment and services to exporters and importers through an
Per Day Per Branch extensive, well-equipped branch network that operates
10 14
at Aadhar Enrolment in India and abroad. The agenda is to support 150
Centres (Nos) Authorized Dealing branches spread across the length
13 Financial Literacy & breadth of the country, Centralized Trade Finance
3358 4128 Back offices, and Centralized SWIFT Back Office for
Camps
orderly growth of the Trade Finance portfolio, formulate
• 35.65 lakhs PMJDY accounts are opened during policies, and innovate new products as per the market
FY 2022-23, Your Bank has achieved 132% of the demands and changing regulatory norms.
target under PMJDY Saturation Drive Campaign. Bank aims to improve synergies and trade flow between
• Total Deposit balances in PMJDY accounts have Domestic Offices and Foreign Offices/ Correspondent
increased by ` 1266 crores over the previous year Banks and the trading community by forming a strong
(i.e., from `7780 crore to `9046 crore). link between them.
Your Bank facilitates the growth of Export Credit
by actively involving branches, trade bodies & other
stakeholders.
Integrated Annual Report
2022-23 171

Global Payments & Services continuously leading to a reduction in pending EDPMS

International Exchange Vostro Branch- International / IRMs / Export advances entries over a period of time,
Exchange Vostro Branch (IEVB) facilitates Inward and we could succeed in the removal of these entries
Remittances from Overseas locations to India & substantially, enhancing customer satisfaction.
Opening & Maintenance of Vostro Accounts for Foreign LIBOR to ARR (Alternate Reference Rate) / RFR (Risk-
Banks, Rupee Drawing Arrangements of Exchange Free Rate) Transition
Houses & Special Rupee Vostro Accounts.
With the introduction of an Alternate Reference Rate
Your Bank is in the process of introducing various (ARR) to replace LIBOR, there is a major transition in

Strategy, Model & Capitals

Foreign Exchange Services at your fingertips via its the Global Trade Ecosystem. Your Bank has taken the
“Vyom” App, like Inward & Outward Remittances, initiative to implement & Automate the ARR regime in
followed by various other Trade Finance products its Trade Finance operations.
through the mobile app.
Centralized SWIFT Back Office (CSBO)
Correspondent Banking Relations - Your Bank is a pivot
SWIFT is an integrated web-enabled messaging
in maintaining and reviewing RMA relationships with a
software that runs centrally and is accessed by the
network of 717 banks in 114 countries. Your Bank has
interface channels and branches, facilitating the
943 RMAs with 673 Banks in 94 Countries and Nostro
electronic exchange of financial and non–financial
Relationships with 33 Banks.
messages.
“Trade Finance Set Up” A centralized SWIFT office has been set up in Mumbai
Your Bank is well-equipped to provide a wide range for handling cross-border transactions over the SWIFT
of products and services to exporters and importers network and for ensuring smooth & fully secured

Notice
through an extensive branch network that operates transmission of messages.
domestically and internationally.
Trade Finance Solution – Trade Nxt
Your Bank facilitates the growth of Export Credit
As part of digitization and redesigning of trade finance
by actively involving branches, trade bodies & other
processes, your Bank has launched Trade Finance
stakeholders.
Solution, i.e., Trade Nxt.
To facilitate the Trade Community, Forex Service
Trade Nxt is a Unique Digital Trade Services Platform
Charges have been rationalized and aligned with the
for our customers to transact Foreign exchange
market. Bank has also introduced many system-related
transactions efficiently & at their convenience. The

Statutory Reports
enhancements and updates in the SWIFT system.
platform supports all types of trade transactions,
Your Bank has in place Centralized Trade Finance back including Exports, Imports, Guarantees, and
offices at Mumbai & Mangaluru for central processing Remittances.
of Trade Finance Transactions, which are exclusively
Key Features:
set up to provide a one-stop solution for access to our
customers.  Convenience - Avail service from your home or
office, No need to visit branches.
Your Bank is committed to ensuring FEMA compliance
across your Bank. The department ensures timely  24x7 Availability - Trade-related transactions can
submission of RBI / FEMA-related returns and issuing be initiated round the clock.

Financial Statements
instructions concerning revisions in FEMA / RBI  Customization - Personalized dashboards and
guidelines. customized templates.
Exporters/Importers meet  Paperless Banking via Digitization - Dedicated
Various Exporters/Importer meets were conducted portal for managing all trade transactions, Auto
across India to increase awareness of the banking mailer intimations of advice, and SWIFT messages.
facilities offered by your Bank. New products like Union  Process Improvement - Driven by AI and OCR
Trade Current Account (UTCA) and Trade Nxt have Technologies to initiate and process transactions
been introduced for the benefit of our customers. Also, (Implementation under progress)
existing schemes like Union Exports have been made
 Efficiency - Substantial improvement in TAT due to
more attractive.
Digitization and Centralization
TRRACS Software, EDPMS / IDMPMS  Relationship Manager - Improved Customer
Your Bank has in place the Trade Regulatory Reporting service through dedicated Relationship Managers
and Compliance Solution (TRRACS) software that is
 Integrated Annual Report
172 2022-23

 Compliance - Complying with Regulatory Norms 10 year G-sec made a high of 7.62 in June 22 from
& Procedures along with International Best 6.84 in March 22. Accordingly, bank took prudent
Practices. investment decision and kept the duration lower in
the AFS book to minimize the impact of the yields
FEMA Audit
hardening. The modified duration of AFS book
The branches that are authorized to deal (Authorised was kept at 1.32 in FY22-23 against 1.20 in FY21-
Dealers) in Foreign Exchange Transactions, including 22. Bank made investment at opportune time to
CSBO, and Trade Finance Processing Back Offices, are augment the interest income from the investment
subjected to FEMA compliances. portfolio. Bank’s total domestic investment was
KYC / AML-CFT Measures to the tune of `3, 45,370 crore as on 31-03-2023
Your Bank has been taking comprehensive steps to whereas it was `3, 53,002 crore as on 31-03-2022.
implement KYC norms/guidelines across your Bank Bank has actively managed the liquidity and the
. Bank has a board-approved policy on Know Your liquidity position remains comfortable during the
Customer (KYC) standards, Anti-Money Laundering FY 2022-23.
(AML), and Combating of Financing of Terrorism (CFT) Bank has good presence in USD-Rupee Spot and
measures, in line with the extant RBI Master Direction USD-Rupee Forward markets and command good
on KYC. market share in merchant foreign exchange flows.
Workshops / Events held by Bank Summary of performance:
• India International Cargo & Logistics Exhibition (` in crore)
from 30.11.2022 to 02.12.2022 at Mumbai &
companies have participated in the exhibition. Particulars FY 2022 -23 FY 2021-22
Interest income 24,438.39 22,780.00
• Almus Rupee Money Conference’2022 on
10.12.2022 at Mumbai. Profit on sale of 1,083.00 3,401.00
Investment
• BFSI Insight Summit 2022 from 21.12.2022 to
Exchange profit 813.00 640.00
22.12.2022, in Mumbai.
(Forex)
• FIEO’s capacity building programme under the
Total Treasury 26,334.39 26,821.00
initiative district as an export hub on 21.1.2023 at
Income
Jaipur.
b. New Initiatives during the Year:
• IESS (International Engineering Sourcing Show)
Chennai – 16th to 18th March 2023
Debt syndication:
14 Treasury operations Debt syndication activity started during the FY, and
- To act as a prudent liquidity manager in line with Bank has earned fee-based income to the tune of `
Bank’s corporate goal, Treasury aims at generating 1.51 Cr.
optimum profit while managing the credit, market, c. Treasury Strategy:
and liquidity risks as per policy guidelines. Better
cash management by different short-term money - As interest rate is likely peaked in most of the
market instruments and forex market. Maintaining economies as inflationary pressure is ebbing,
a decent SLR & Non-SLR investment book with interest rate cycle is expected to reverse. We
appropriate Modified duration will help us to are closely looking into all the opportunities
enhance our profitability. and accordingly diversifying the portfolio
- Conserve your Bank’s capital by reducing high with adding duration to this to maximize the
capital-intensive instruments and increase the NIM trading gain as well as to augment the interest
and ROCE by leveraging the less capital-intensive income.
instruments. - Explore all available arbitrage opportunities in
a. Summary of performance during 2022 – 23: the financial market, such as forex Vs. money
market, dated securities Vs. interest rate
During the FY, the repo rate increased by 250 bps,
future (IRF), dated securities Vs. overnight
from 4.00 to 6.50 percent, to tame the higher
index swap (OIS), long-term treasury liabilities
inflation. This results in hardening of the yields and
Vs. structured derivatives etc.
Integrated Annual Report
2022-23 173

- Strengthening manpower through various in-  Use of digital platforms (portals like 99 acres.com,
house and external training like ACI dealing housing.com, foreclosure .com, and OLX) for wider
certification, mastering the trading game, etc., publicity to attract more and more bidders while
for improving overall efficiency level at every auctioning NPA.
stage. Recovery Strategies initiated:
- To make the sales team even more capable
Restructuring of NPA Accounts.
by increasing the size of members and using
the digital mode to onboard new customers Recovery through legal recourse :

Strategy, Model & Capitals

and provide a seamless experience to old
 Swift and effective use of legal remedies under
and new customers of your Bank. Exploring
SARFAESI and DRT Acts for quick recovery.
possibilities of expanding PD business
through the sales team.  Creation of a strong/flawless database for
SARFAESI actions and DRT filed accounts.
d. Increasing existing customer business share and
onboarding new customers:  Filing of Suits in all the eligible accounts without
fail and close follow-up of the SUITs that have
Treasury Relationship group will drive FX
already been filed before DRTs.
business from existing as well as acquisition of
new customers; White label screen to customer Recovery through OTS :
can increase FX volume; Trade Finance solution
(Finstra) will provide more FX Business due to  Focus on negotiated settlements for OTS/
flexibility to customers for document handling. resolution of NPA accounts are discussed with

Notice
high ticket borrowers during visits by Executives.
15 Asset Quality
 Structured OTS Scheme (OSDL-2023) for Doubtful-
Summary of Performance: II, III, and Loss NPA account with R/L OS Balance
NPA Level reduced from ` 79,587 crore as of March up to ` 5 crore is launched w.e.f. 31.03.2023.
2022 to ` 60,987 Crore as of March 2023 with reduction
Bank will continue to lay emphasis on guarding against
of ` 18,600 crore.
fresh slippages and focus on recovery/Upgradation
The details of NPA movement are as follows : vigorously so as to bring down the level of NPA
(` in crore) consistently.

Statutory Reports
Weekly Mega recovery camps were planned to be
Particulars FY 2021 FY 2022 FY 2023
organized on a Pan India basis.
Gross NPA 89788 79587 60987
Recovery through sale of assets to ARCs/NARCL :
Gross NPA % 13.74 11.11 7.53
 Bank will identify NPA accounts to explore for the
Net NPA 27281 24303 12928
Sale of distressed assets to ARCs/NBFCs/BANKs/
Net NPA % 4.62 3.68 1.7
FIs so as to keep the NPA levels at an acceptable
Fresh Slippages + 17443 22877 12518 level in line with the requirements of the regulator.
Increase in O/S
 Shifting of High-level NPA to NARCL
Cash Recoveries / 7865 13595 11943

Financial Statements
Upgradation Recovery through NCLT :
Recovery in TWO 2537 2750 5549
 To improve the timely recovery performance of
Write-Offs 16983 19484 19175
your Bank , emphasis has also been given to the
PCR 81.27 83.61 90.34 identification of eligible accounts to be filed before
NCLT for reduction of NPA levels.
Digital Initiatives Taken under project UNION SARAS:
 Under personal insolvency Form ‘B’ had been
 Showcasing properties on the common auction issued to all the guarantors of the corporate debtor.
platform, i.e., eBkray, under the Indian Banks
 Initiating action against personal guarantors where
Auctions Mortgaged Properties Information
CIRP is going on.
(IBAPI) portal launched by IBA at monthly prefixed
dates for the entire financial year to enable the Recovery through specialized branches :
filed functionaries to showcase all the eligible
properties for auction.  NPA Accounts with O/s of 20.00 lakh and above up
to ` 25.00 crore are transferred to ARBs.
 Integrated Annual Report
174 2022-23

 7 new ARBs are opened during the current Financial SMS alerts to customers and conversion of the leads
year for a focused approach in the Resolution/ shared by ACoE. SMS alerts are already being sent to
Recovery of NPAs of ` 20 lakhs to less than ` 25 customers.
crores. A redemption option for Sovereign Gold Bonds has
Various campaigns are launched to improve the been developed in Finacle, doing away with the manual
recovery performance, like provision buster, Thunder-2, process of sending physical applications.
Heat the beat, Pace the race-I, II, III, and DRT Campaign. DIGITAL INITIATIVES:
National Lok Adalat was conducted on various dates 1. M/s. Fintech Blue Solutions Pvt. Ltd. is working on
as per the National Lok Adalat calendar. Apart from developing a digital platform. SUD Life, Care Health,
this, Lok Adalat is also conducted by Regions at regular and Manipal Cigna working in VYOM. Onboarding
intervals under Aegis of District Legal Service Authority. other channel partners is under process.
16 Relationship Banking 2. M/s. Finwizard Technology Private Limited has
Your Bank earned an income of `353.36 crore through developed a digital platform for Mutual Funds.
the distribution of third-party products during the year Platform running successfully on VYOM.
2022-23. 3. Branch portal under process for Mutual Funds.
(` in crore)
Business ACTUALS ACTUALS % 17 Government Business
Parameter FY 2021-22 FY 2022-23 Achievement  Non-Interest Income from Govt Business reached
Life Insurance 170.24 233.69 56.04% ` 132.90 Crores, showing a growth of 70% against
Non-Life
last year’s performance of ` 78.18 Crores.
48.14 50.76 39.50%
Insurance  Total Govt. resources reached ` 3,15,196 Crores
Health Insurance 38.03 49.13 44.57% W/w Govt CASA reached ` 68,368 crores.
Mutual Fund 17.66 19.77 42.74%  Finished 2nd Position in National Pension System
Total Income 274.07 353.36 50.34% Citizen Model, after SBI in PSB Category. This year
your Bank added 33,558 accounts, showing a
INITIATIVES DURING THE YEAR growth of 35.27% against last financial year.

• Revival of Corporate tie-up with Nippon India  Mobilised 22,208 Pension Accounts and recorded
Mutual Fund to grow business under the Mutual 54.31% growth over the previous year.
Fund segment.  Added 2,87,560 new Small Savings Scheme
• Corporate tie-up with LIC Mutual Fund. accounts and reached 12.96 lakh A/Cs. Recorded
14% growth over the previous year.
• Select Insurance products from SUD Life, Care
Health, and Manipal Cigna were onboarded on the  Tax Challan collection reached 6.2 Million in the FY,
VYOM app for purchase through digital channels. amassing ` 90,381 crores.
Products from other channel partners are in the  Enabled NPS Account opening Integration through
process of being onboarded shortly. Banking Correspondents.
• Mutual Fund investments through the VYOM app  Signed MoU with Indian Navy for Salary Account
were made live in November’22 opening.
• A personal loan scheme was introduced for  Signed MoU with Gram Volunteers/Ward Volunteers
premium funding of Credit life insurance policies. & Village Secretariats / Ward Secretariats (GVWV
NEW PRODUCTS LAUNCHED: & VSWS) Department, Vijayawada, for opening
Employees Salary Accounts
UNICARE: ‘UNICARE’ policy from Bajaj Allianz General
Insurance Company was launched to cater to the needs  Integration with EPFO for Pension Disbursement
of HNI customers of your Bank for EPFO pensioners.

PINK Health: Manipal Cigna’s Cancer plan for women.  21 Central Nodal Agency (CNA) accounts were
added with a budget of `4,316 Crore and a present
Chola Farmer Care package: Policy launched by Chola
balance of `812 Crores.
MS for compensation to the farmer due to property
losses, accident losses, other personal losses, and loan  Mobilised 226 Single Nodal Agency (SNA)
protection up to the sum insured or loan outstanding, accounts and 1700 plus sub-agency accounts with
whichever is lower.
Integrated Annual Report
2022-23 175

a budget of ` 35,000 crores & present balance of ` also been on stabilizing the automation and digitization
5,733 Crores. of processes being launched by your Bank so that they
 Mobilised 3,700 plus Gram Panchayat Accounts can function seamlessly.
and also canvassed 33 MPLAD Accounts of newly The industry has also recognized and lauded your
elected MPs. Bank’s efforts through numerous awards received
 Enabled e-Stamping facility in 630 branches under during 2022-23 for HR innovation, Leadership, Preferred
15 States. Workplace & Training.
Union Prerna Project:

Strategy, Model & Capitals

 Enabled online bond subscription facility for RBI
Bond. Skill profiling exercise:
 Provided Collection facility of Vidyalaya Vikas
Your Bank has undertaken skill assessment and gap
Nidhi of 595 Navodaya Vidyalaya School.
assessment for employees in Scale 4 & 5 in order to
 Mobilised Hybrid Annuity Model (HAM) Escrow connect essential requirements of their jobs and their
account of NMCG. abilities and knowledge needed for that job to develop
 Mobilised Current Account of 4G Saturation Project futuristic capabilities for the bank. An in-house skill
Account of BSNL with Budgetary Allocation of ` profiling tool has been developed, which will assess the
24,000 Crores. skill of employees based on their self-declaration and
multiple choice questions, which are designed to test
 Mobilised Account of U.P. JAL NIGAM (RURAL) at
a mix of knowledge and scenario-based testing on a
Orai.
group of skills having a mix of traditional and new age
Various type of collection facility through skills required in banking. The exercise will help your

Notice
Payment Gateway was enabled for 17 Government Bank in associating skills required for specific jobs
Organizations, namely: within the bank, determining the levels of expertise
• Kerala State Beverages required for various roles, helping analyze skill gaps
in employees, training need analysis, providing skill
• Central Pollution Control Board
development opportunities for the employees, etc.
• Etawah Safari Parks Samiti
Succession Planning Exercise:
• Karnataka Housing Board
Your Bank has undertaken the succession planning
• HSIDC
exercise for key executive positions in order to

Statutory Reports
• Panvel Municipal Corporation plan smooth execution of leadership transition to
• NBCC (India) Ltd (EMG NEW MOTI BAGH) ensure business continuity with the help of a Talent
• Udupi City Municipal Council Management & Succession Planning Tool that has been
developed to provide the list of probable successors
• Odisha Lift Irrigation Corporation Ltd
for different critical positions. The tool with various
• Gujarat Matikam Kalakari and Rural Technology data inputs like role suitability, PMS score, behavioral
Institute Gujarat competency mapping, functional competency mapping,
• The Fertilisers and Chemical Travancore Limited role history, etc., provides suitable successors for a
• Odisha Power Generation Corporation Ltd. particular position.

Financial Statements
• Indian Institute of Food Science and Technology The exercise will help your Bank to identify the
• Netaji Subhash University of Technology necessary skills, knowledge, and attributes to succeed
the incumbent in each key position of the bank.
• NIFT – Shimla, Jodhpur and Kolkata
Probable successors can be assessed against the
• Navodaya Vidyalaya Samiti competencies and skills of potential successors and
• Arun Jaitley National Institute of Fin. Mgt fill the gaps between these through targeted training
and development activities, to ensure that successors
18. Human Resources Management have the knowledge, skills, and abilities necessary to
succeed in future leadership roles.
Your Bank has been at the forefront when it comes
to introducing industry best practices in order to Wings Programme for Branch Heads (Scale IV &
empower its workforce as well as in order to achieve Above):
its corporate objectives. In addition to the focus on The Wings Programme is an exclusive training
people development, the focus during FY 2022-23 has programme to promote women’s leadership at
Scale IV & above. The training programme content
 Integrated Annual Report
176 2022-23

includes fostering Growth Mindset, Decision Making, drive thought leadership in the broader BFSI space.
Negotiation Skills, Effective Time Management, and Your Bank has made significant investments to ensure
other behavioral skills along with Business strategies. that each Unionite has access to a best-in-class faculty
Power Him & Empower Her: network, new-age content, external collaborations and
innovative training design.
The Power Him and Empower Her committees have
been created with a focus on gender-centric issues In order to keep the learning journey of its workforce
of males and females in their career trajectory. uninterrupted various webinars, short duration/long
The members of these committees are reaching duration programs were conducted. 172 Inland External
out to employees grouped with specific issues like training programs were conducted, which covered 703
employees not appearing for promotion, employees employees, and 7 Overseas programs were conducted,
facing career progression problems, constraints, etc. which covered 43 employees. A total of 1171 long-
The committees conduct various discussion sessions duration programs were conducted, which covered
and motivate employees through various interactive 45965 employees, and 290 small-duration programs
ways like workshops, webinars, etc., to help them were conducted, covering 39414 employees (A total
manage their work-life balance. Various CSR initiatives of 1461 internal training programs were conducted
and camps have also been undertaken by these covering 85379 employees) at the ZLC level.
committees, which has helped your Bank in garnering A total of 136 training programs were conducted by
business opportunities as well. all ULAs and trained over 3500 employees in FY 2022-
Employee Wellness (Employee Assistance Program): 23. More than 66000 Learning Hours of training are
imparted by ULAs to improve the proficiency level of
Bank has taken the initiative to extend various wellness the participants in various new age skills.
facilities for employees for their holistic well-being
under Union Prerna’s Suraksha- HR Benefits Program. During FY 22-23 total of 14 advanced training programs
An employee assistance programme was conducted and 20 functional/core training programs were
on a pilot basis at three centers Mumbai, Delhi & developed. Also, 28 case studies have been developed
Bengaluru. Through this programme, the employees by the faculty members.
and their dependent family members benefitted Faculty members are encouraged to write articles and
through counseling assistance which helped the publish the same in reputed magazines/journals. A
employees who were experiencing issues like financial total of 180+ articles written by our faculty members
instability, improving work relationships, performance are published in reputed journals like Indian Banker,
improvement, mental health, occupational stress, Banking Finance, banker Plus, IIBF, etc.
coping with major life events, etc. Through these Bank has empaneled four premier academic institutes,
interactions, we have been able to identify some of i.e., ISB-Hyderabad, IIM-Indore, IIM-Kozhikode & MDI-
the major issues faced by the employees, which are Gurugram, to help the training system to bring in fresh
anxiety, interpersonal & relationship conflict, work- perspectives & ideas in training curriculum through
life balance, confused thinking, negative thoughts, their expertise from diverse background & global
and marital conflicts. With regular counseling of experience.
employees, your Bank will benefit from the improved
mental health of employees, reduced absenteeism, To create a think tank and innovation & research hub for
increased productivity at work, and reduced stress your Bank and undertake new research to infuse best-
levels in employees. market practices in the training system, Bank inducted
11 Research Officers in the training system through the
Learning & Development: internal selection process. Our research officers have
Bank has embarked on an ambitious journey to completed 20+ research projects, out of which 10 are
become one of the top 3 PSB lenders in the country. already published.
Consequently, our employees need to be equipped with Mega Experiential Training Action (META) is a highly
skills that make us competitive and ahead of our peers. digitized and cost-effective training initiative with a
With this foresight, our Bank has embarked on a new wider reach to bring in a substantial increase in training
L&D journey to build a future-ready talent pool with hours per employee is initiated.
skill sets that complement the vision of your Bank and
promote culture. This is oriented towards enhanced participation to
inculcate & nurture the spirit of continuous learning/
The major step in this journey is the creation of 9 Union innovation amongst staff members. META Learning
Learning Academies (ULAs) to enable Unionites to has 4 pillars, and each pillar has a unique design
achieve this bold ambition set forth for your Bank and and methodology with an objective of participative
Integrated Annual Report
2022-23 177

learning: 1. Query-Based Training Sessions: Practical/ During the Financial year 2022-23, your Bank received
need-based/ targeted training to respond to the 85 Shields for outstanding performance in Official
field functionary’s concerns. 2. Staggered Training Language Implementation from different TOLICs (Town
Program: To enhance two-way communication and Official Language Implementation Committees) set up
outcome-oriented learning. 3. Union Manch: Platform by the Govt. of India, Ministry of
to share the success stories of the Field. 4. UBIQUE: Home Affairs, Rajbhasha Vibhag, across the country.
To crowdsource innovative/creative ideas to resolve A total of 183 individual prizes were won by the staff
various issues which are affecting your Bank ’s members of your Bank in various Hindi Competitions

Strategy, Model & Capitals

performance. across the country. Digital KCC STP is available in Hindi
Bank also rolled out exclusive learning series, namely and Kannada Languages. SMS facility for all customers
‘Union Learnathon’, to supplement the training and is available in 13 languages. The call Centre facility
developmental needs of staff members for career is also available in 11 Indian languages. The Mobile
development. In the Union Learnathon series, 8800 Banking application – ‘VYOM’ is available in 12 Indian
MCQs, 97 Practice sets, and 26 Digdarshika were languages. During the year, your Bank also published
hosted to foster the culture of continuous learning and Cartoon Books on the Mobile Banking application ‘Mera
intended to upskill staff members. Under Union Prajna Bank-Hamesha Mere Saath’ and 11 cartoon books on
(e-learning module), several Union Radio and Union ‘Ethics’ in Hindi.
Podcasts are hosted. `Union Dhara’, Your Bank’s quarterly bilingual corporate
The training system of your Bank has won several in-House Journal, and ‘Union Srijan’ Hindi Magazine
awards like IAC Corporate Awards 2023 for “Pioneering of your Bank received the prestigious Public Relations
Work in Creating Future Ready Inclusive Organization”, Council of India (PRCI) Gold award in `Best in-House

Notice
“The BML Munjal Award for Business Excellence Magazine’ and Consolation Award under ‘Journal
through Learning & Development,” and “31st National Print Regional Award’ categories respectively. ‘Union
Award for Innovative Training Practices 2020-21 under Srijan’ Hindi Magazine of your Bank has also won
BFSI and IT/ITES services category instituted by ISTD”. the prestigious Ashirwad Award. `Union Dhara’ has
published special issues on `Jammu & Kashmir’ &
Official Language:
`Operation’. Union Srijan also published special issues
Your Bank received 18 prestigious Kshetriya Rajbhasha on `Haryana’ & ‘Senior Citizens’.
Puraskars from the Department of Official Language,
Ministry of Home Affairs, GoI in various Regions/

Statutory Reports
FGMOs:

Manpower Strength:
The total manpower of your Bank as of 31.03.2023 stood at 75,594.

TOTAL
OFFICERS CLERKS SUB-STAFF TOTAL
STRENGTH
YEAR MALE FEMALE MALE FEMALE MALE FEMALE MALE FEMALE
2020-21 31629 11505 17763 8225 6585 2495 55977 22225 78202

Financial Statements
2021-22 31326 11469 16389 7705 5979 2333 53694 21507 75201
2022-23 31814 11734 16774 7886 2170 5216 53804 21790 75594
The effectiveness and efficiency of your Bank’s human resources have a direct bearing on the growth of the bank. We
have long been working to ensure that there is always a sufficient workforce available in all fields and functional outlets
of your Bank in order to provide a high level of service to our clients.
Your Bank has been reviewing the requirement of staff in various cadres every year, and an analysis of the vacancies
in various cadres is being made having regard to the growth of the business, future branch expansion/ rationalization,
attrition on account of resignations, retirements on superannuation/ VRS, etc.
 Integrated Annual Report
178 2022-23

The guidelines for reservation in employment for specified categories are strictly followed by your Bank as per Govt.
Policy on reservations. Accordingly, the indents are placed with the Institute of Banking Personnel Selection (IBPS),
Mumbai. The representation of all reserved categories of employees within the overall staff strength is as detailed
below:

Particulars Officers Clerks Sub-staffs Total

Total Employees 43548 24660 7386 75594
Within which
Scheduled Castes (SCs) 7521 17.27% 4680 18.98% 2668 36.12% 14869 19.67%
Scheduled Tribes (STs) 3432 7.88% 1934 7.84% 614 8.31% 5980 7.91%
Other Backward Classes
12787 29.36% 7597 30.81% 2372 32.11% 22756 30.10%
(OBCs)
Ex-Servicemen 884 2.02% 3214 13.03% 614 8.31% 4712 6.23%
Women 11734 26.95% 7886 31.98% 2170 29.38% 21790 28.82%
Minority Communities 3119 7.16% 1723 6.99% 557 7.54% 5399 7.14%

19 Network
The branch network of our Bank is widely spread across the country with 8577 branches and 3 overseas branches
(Hongkong, Sydney, Dubai DIFC) as on March 31, 2023. Out of these, 58 percent of the branches are in rural and semi-
urban centers.

Table 11: Branches Network As on 31.03.2023

Rural Semi-Urban Urban Metro Foreign Total
No. Of Branches 2545 2458 1755 1819 3 8580
Branches (%) 30 29 20 21 -- 100
Your Bank has also total 17662 Business Correspondents, 10835 ATMs, 7 Digital Banking Units (DBU), 5 Owned
Subsidiaries, 3 Joint Ventures and 1 Associate Organisation.

20 Information Technology ATMs, and multi-function Sampurna ATMs that provide

a number of value-added services, such as mobile top-
Your Bank is committed to becoming a next-generation
up, e-cash remittance, direct tax payment, inter Bank
digital savvy Bank with a focus on inclusive, responsive,
mobile payment service remittance, NEFT, and mutual
and responsible banking through customer centricity,
funds payments.
employee empowerment, and value creation for all
stakeholders. Your Bank continues to progress on this Major strides by your Bank in digital adoption include:
agenda with the launch of multiple new-age initiatives • First public sector Bank (PSB) to go live on the
by adopting several technologies like Augmented account aggregator ecosystem;
Reality/Virtual Reality (AR/VR), Artificial Intelligence
/Machine Learning, Natural Language Processing, • The first PSB to achieve triple ISO for its IT
Blockchain, etc. systems; ISO 27001:2013 (Information Security
Management System), ISO 22301:2019 (Business
Your Bank has been transforming IT architecture Continuity Management System) & ISO 31000:2018
to ensure high-performance access to business (IT Risk Management).
systems and cloud-based applications, complying with
regulatory norms without compromising security. We • First PSB to implement end-to-end auto-renewals
are also employing Enterprise Solution Architecture of MSME loans up to ₹1 million;
Practices for new applications to support innovations • First PSB to implement multi-language in Finacle,
in diverse, dynamic, and complex environments. mobile banking applications, and SMS;
Your Bank invested in infrastructure, technology • Union Bank stands 2nd in ATM Switch Processing
platforms, and digital applications, which included among all banks across the country.
the integration of our core banking applications with • Average Monthly CBS transactions – 194+ crore.
Internet banking, mobile banking, ATMs, and electronic Daily average transaction volume in the last six
payment systems. Also introduced various other months increased by 20%.
banking platforms, such as Tabulous Banking, Talking
Integrated Annual Report
2022-23 179

• The average system uptime is 99.97% which is at loans through Digital Channels.
par with the best-in-class Bank under EASE 4.0. Multiple promising fintech companies and new start-
• First Bank in India to introduce Metaverse in ups are being onboarded through the Sandbox Platform.
Banking. Bank has developed a comprehensive Digital Trade
• Achieved prestigious PCI-DSS (Payment Card Platform for Exporters and Importers, bringing ease of
Industry – Data Security Standard) certification doing business 24/7 and a delightful user experience.
covering all the payment Systems and processes Bank’s on-premises private cloud hosts more than 140
dealing with cards to secure card payment applications. Bank has implemented Office 365 through

Strategy, Model & Capitals

infrastructure. Software As a Service (SaaS) and is in the process of
• Introduction of several innovative solutions like adopting the public cloud.
WhatsApp Banking, Voice Banking, Open Banking Bank has a very strong and resilient IT system with
Architecture, Digital Platform, Straight Through strong BCP to ensure Zero Data Loss for critical
Processing (STP), Robotic Process Automation applications of your Bank. Bank has invested in
(RPA), Pre-Approved Personal Loans (PAPL), etc. Advanced Performance Monitoring Tool for real-time
Bank has implemented various advanced Technology monitoring of IT infrastructure and a DR Automation
solutions like Interactive & Personalised video-based tool for all critical applications in order to perform
solutions, Whatsapp Banking, Palm Banking, Video KYC automated DR Switchover for BCP. Further, Bank has
Solutions, etc., and is in the process of implementing established a Site Recovery Manager (SRM) solution
Microservices Architecture for container-based cloud- for Private Cloud for online replication of data and
ready applications complying with regulatory norms automating the recovery process from DC Site to DR

Notice
without compromising security. At the same time, Bank Site.
is fostering Enterprise Solution Architecture Practices Bank has set up the Cyber Security Centre of Excellence,
for new applications to support new innovations in which in coordination with the Cyber Security Operations
diverse, dynamic, and complex environments. Centre (CSOC), ensures “Security Defence in Depth” and
Further, Bank is also working along with the RBI IT protects your Bank ’s Information assets from breaches
innovation Hub on Digital Ledger based Block Chain and compromises & ensures robust cyber resilience
Technology, and RBI has selected Union Bank among through continuous surveillance.
other Peer banks for doing a pilot on Central Bank Digital Union Bank of India is transforming to become a next-
currency (CBDC). Union Bank of India is the pioneer generation digital Bank and has envisaged the potential

Statutory Reports
in launching the Account Aggregator platform and is of open banking with fintech as partners and have
also working closely with all Technology stakeholders leveraged the benefits of APIs.
to integrate with Open Network for Digital Commerce Bank is in the process of digital transformation by
(ONDC) and Open Credit Enablement Network (OCEN) exploring innovative solutions, Fintech partnerships,
for Digital Lending. Our Bank is the first among PSBs and new emerging technologies such as AI/ML, 5G,
that enable Bank Rupay Credit Card on UPI. Artificial Blockchain, Metaverse, DevSecOps, etc. Bank has
Intelligence (AI) based conversational Banking is established an Analytics Centre of Excellence (ACOE),
being implemented using Amazon Alexa and Google which will effectively use Data Lake for proper analysis
Assistant Voice Bots. Services like Balance Inquiries, of customer data and preferences by leveraging the
Account statements, Cheque Book requests can be

Financial Statements
technologies like AI/ML.
done using voice banking.
As a part of the futuristic and innovative strategy, we
Union Bank of India offers a “Digital Experience” to its are planning to endeavour in the following areas.
customers through innovative products like Uni-verse –
The Metaverse of Banking, which is a virtual Lounge for • Cloud Native Applications, which can be hosted on
customers to access various product information with Hybrid Cloud to move digital resources where they
an immersive user experience. are needed quickly.

Bank has recently set up a Testing Centre of Excellence • Enable AI & Virtual Reality (VR) for new-age
(TCoE), Application Performance Monitoring System, banking.
App Modernisation Tools (Kubernetes), etc., to achieve • Banking through the Internet of Things (IoT) and
robust system performance, and Robotic Process Connected devices.
Automation is implemented for reducing manpower
• Security and Fraud Prevention.
utilization. Straight Through Process (STP) journeys are
implemented to ease the process of availing/renewing • Implementing a Micro services-based Omni-
 Integrated Annual Report
180 2022-23

Channel Platform to cater to unified customer at the apex level supported by operational level
experience on various channels. committees of top executives for managing various
• Use of new practices like DevOps tools for risks. The Board of Directors of your Bank approves
continuous Development, integration, and the Risk appetite and Risk policies of your Bank.
deployment of in-house projects and app The RMC supervises the implementation of the risk
modernization. strategy and policies, reviews the level and direction
of risk, prudential ceilings, and portfolio diversification,
Progress on Digital Channels and monitors the risk reporting. The risk strategy and
policies are effectively communicated to all branches
Growth on Digital Channels (Figures in Crs) and offices of your Bank .
Channels 31.03.2022 31.03.2023 Annual Growth
Your Bank addresses Credit, Market, and Operational
Absolute (%) risk through appropriate policies, organization
Mobile Banking structure, risk management techniques, adequate
Users 1.65 2.13 0.48 29 systems and procedures, and monitoring and reporting
Internet mechanisms. Risk management activity has been
Banking Users 0.68 0.74 0.06 9 extended to field-level units by posting Risk Officers at
FGMOs and ROs. The primary responsibility of these
21 Transaction Monitoring & Fraud Risk Officers is to identify, assess, monitor, report, and
suggest mitigants. It has a well-defined risk appetite
Management statement and an independent risk function to ensure
Bank has put in place Off-site Transactions Monitoring that your Bank operates within its risk appetite.
System (OTMS) within A&ID since 2013 which is
Credit Risk Management
responsible for monitoring various types of transactions,
especially monitoring irregularities in transactions, by Your Bank has well-defined credit appraisal mechanisms
means of which, early signals can be triggered. and risk management frameworks in place for the
identification, measurement, monitoring, and control of
With the presence of an effective and proactive
the risks in credit exposures.
mechanism of EFRMS, bank has also implemented real
time monitoring of newly opened SB & CD accounts in Your Bank has various instruments like Credit Risk
the CBS - Finacle itself. Management Policies, Credit Approval Committees,
Prudential Exposure Limits, a Risk Rating system,
Bank has a full-fledged Fraud Management team
and Risk-based pricing for Credit Risk/Portfolio
which carries out the root cause analysis of frauds on
Management.
a continuous basis and puts forth all the suggestions
for mitigation of frauds and plugging the loopholes, Your Bank has a standardized and well-defined approval
present in the system, if any. process for all advances. It adopts a committee
approach for credit sanctions and has approval
During the FY 2022-23, the AML/CFT team (Anti Money
committees at various levels.
Laundering / Combating of Financial Terrorism) has
submitted 10 typologies to FIU-India. In FIU-India Bi- The business environment is analyzed and researched
monthly meeting, the Principal Officer has presented in in a structured manner by a dedicated team of experts
detail the various scenarios and typologies observed by to decide Bank’s outlook and growth appetite in the
the AML-CFT team and the same was appreciated by identified industries/sectors/segments. Your Bank has
FIU-Ind. also subscribed to industry research/analysis reports
from top research companies for internal consumption.
22 Risk Management Risky sectors are monitored continuously and
Your Bank has a proactive approach toward risk wherever warranted; exposure concerned is reviewed
management. Its risk philosophy involves developing immediately.
and maintaining a healthy portfolio within its risk Your Bank also conducts Stress Tests every quarter
appetite and regulatory framework. Your Bank on its Credit portfolio. Stress Scenarios are regularly
constantly endeavors to ensure that the business updated in line with RBI guidelines, industry best
function partners with the risk management function to practices, and changes in macroeconomic variables.
enhance shareholder value and ensure judicious use of
available capital. Your Bank has put in place an Early Warning Signal
(EWS) system based on a predictive analytical
Risk Management is a Board driven function in your approach, which helps to identify the stress signals well
Bank with the Risk Management Committee (RMC) in advance and helps to take appropriate mitigation
Integrated Annual Report
2022-23 181

measures to maintain the desired credit quality of (NSFR). Monitoring of liquidity is proactively done both
borrowers on a regular basis. through the stock approach and flow approach.
Your Bank uses various Credit Risk Assessment Market Risk stems from the Trading positions assumed
Models and scorecards for assessing borrower-wise by your Bank in debt/equity instruments, forex
credit risk. Your Bank also has in place a ‘Dynamic transactions, and Derivatives. The key drivers of Market
Rating framework’, which facilitates early identification Risk are Interest Rate Risk, Equity Risk, and Forex Risk.
of stress and triggers and adoption of appropriate
Some of the key risk measures include position limits,
mitigation mechanisms. Bank has also introduced the
tenor limits, price sensitivity measurement tools such

Strategy, Model & Capitals

‘Credit Risk Review Framework’ for large value accounts
as PV01 and Modified Duration (MD), Value At Risk
to strengthen loan underwriting.
(VaR), Net Overnight Open Position Limit (NOOPL),
Your Bank has adopted an IT platform for credit Daylight Limits, Stop loss limits at both dealer and
appraisal processes through Lending Automation security level is being monitored on a daily basis.
Solutions (LAS). Internal Rating models are hosted on
The Risk measures are further supplemented by a
these platforms, which are interfaced with CIBIL, RBI
Board-approved ‘Stress Testing Policy’, which guides
defaulters’ lists, etc.
your Bank in assessing the potential impact of adverse
While arriving at Bank’s CRAR, the capital charge scenarios on your Bank ’s Investment book, including
on credit risk is computed based on a Standardized forex exposures and their impact on your Bank ’s Profit
approach. & Loss. The Stress Testing results are being submitted
Your Bank has adopted the RAROC Framework for to the Board on a periodic basis.
optimal risk-reward considerations, wherein RAROC The Market Risk capital charge of your Bank is computed

Notice
computation for all fresh sanctions/reviews/renewals using the Standardized Measurement Method (SMM)
of MSME and Corporate proposals above a certain cut- by applying the regulatory factors.
off limit is mandatory. Credit decisions related to the
Operational Risk Management
concession in Rate of Interest (ROI) are linked to the
RAROC of the borrower, which will help in maintaining Operational Risk is the risk of loss resulting from
the profitability of your Bank and value creation for the inadequate or failed internal processes, people, and
stakeholders. systems or from external events. To manage Operational
Risks, your Bank has in place a comprehensive
Asset Liability and Market Risk Management Operational Risk Management Framework, whose

Statutory Reports
Asset Liability Management Policy, Treasury Policy, implementation is supervised by the Operational Risk
and Market Risk Policy aid in the management and Management Committee (ORMC) and reviewed by the
mitigation of interest rate risk, liquidity risk, and market Risk Management Committee of the Board.
risk in the banking and trading books. The overall
An independent Operational Risk Management Cell
responsibility of managing the market risk lies with the
implements the framework. Under the framework, your
Asset Liability Committee (ALCO). The fundamental
Bank has three lines of defence. The first line of defence
focus is to add value both from the earnings perspective
is the business unit (including support and operations)
and the economic value perspective. The ALM Desk
which is primarily responsible for managing Operational
and Mid-Office measure and monitor the market risk in
Risk on a day-to-day basis. The second line of defence
your Bank ing and Trading books, respectively.
is the Risk Management Department, which develops

Financial Statements
The Asset Liability Committee meets regularly policies, procedures, and techniques to assess and
to review and decide on the size, mix, tenor, and monitor the effectiveness of your Bank’s internal
composition of various assets and liabilities. It controls. Internal Audit is the third line of defence. The
primarily does identification, measurement, monitoring, team reviews the effectiveness of governance, risk
and management of liquidity and interest rate risk. The management, and internal controls within your Bank.
pricing of asset and liability products is also decided by
The comprehensive systems and procedures, internal
ALCO.
control system, and audit are used as primary means
Your Bank ensures proactive liquidity management, for managing Operational risk. Your Bank has in place
develops stress scenarios, and also has a contingency a Board approved Operational Risk Management Policy
funding plan in place. Bank has adopted the liquidity based on Reserve Bank of India guidelines. All new
risk management guidelines issued by RBI pursuant products/processes introduced by your Bank pass
to the Basel III framework on liquidity standards. through a Product & Process Risk Evaluation process
These include intraday liquidity management, Liquidity to identify and address the operational risk issues.
Coverage Ratio (LCR), and Net Stable Funding Ratio
 Integrated Annual Report
182 2022-23

Variations in existing products, as well as risks in Environment, Social, Governance (ESG) & Climate Risk
outsourcing activities, are also reviewed. Your Bank has Management
compiled data relating to operational losses incurred Your Bank’s Board has acknowledged the need to
during the last seventeen years, and it is analyzed for address the impact of ESG & Climate change risk. Your
taking corrective measures so that these losses do Bank is committed to addressing the challenges to the
not recur. The process has also been put in place to environment by creating a positive impact through its
conduct Risk and Control Self-Assessment (RCSA) for businesses.
assessing the residual risks in the products/processes
of your Bank. Key Risk Indicators (KRIs) have been The Risk Management Committee (RMC) looks into
identified for various processes, and the threshold Climate Risk related matters of your Bank. Your Bank
limits have been fixed. has formed the ESG Steering Committee (ESGSC),
which comprises EDs and Heads of business & control
Your Bank is currently following the Basic Indicator verticals for ESG transition in your Bank. Your Bank has
Approach (BIA) for capital computation under formulated a Board approved ESG Risk Framework &
Operational Risk. Climate Risk Policy.
Your Bank is also creating a risk awareness culture by The Stakeholders’ Relationship Committee (SRC) of
embedding it through the existing training system at all the Board will oversee your Bank ’s ESG programme,
levels. Internal as well as external training is conducted strategy, initiatives, policies, reporting, and disclosures.
in your Bank for the Risk Officers. To imbibe the risk The SRC also reviews and evaluates the ESG risks
culture in your Bank across various functions and field identified by your Bank and collaborates with the
functionaries, e-learning modules on Risk Management Board and its Committees to monitor and establish the
have been made mandatory. mitigation plan for such risks.
As part of digital adoption, your Bank has developed Your Bank has identified vertical-wise ESG-related
a Vendor Risk Management System. It captures all action points and timelines. A Sub-committee has been
the details related to vendors, and it also hosts a risk formed comprising verticals looking after the premises
assessment model, focusing on the risk associated of your Bank, Information Technology & Operations
with the outsourced activity. to formulate action points to achieve net zero in your
Your Bank has a robust Business Continuity Plan and Bank’s own operations. Further, another Sub-committee
Disaster Recovery Plan that is periodically tested to has been formed under the credit verticals of your Bank,
ensure that it can meet any operational contingencies. A which will be the driving force behind the transition of
well-documented Board approved Business Continuity the credit portfolio of your Bank towards sustainable/
plan is in place to minimize business disruptions and green finance. The Committee is working on finding out
system failure and potential impact on its business, new avenues and opportunities for sustainable finance
employees, and customers during any unforeseen by measuring & reducing the percentage of credit
adverse event or circumstances. The plan is designed exposure to polluting industries in the loan portfolio of
in accordance with the regulatory guidelines and is your Bank. Under the RMD, a separate ESG risk desk
reviewed regularly. Further, Bank has also constituted has been formed. Your Bank has also started the
a BCP Quick Response Team (QRT) for IT and Non IT integration of ESG in all its training programmes.
related Disruptions. QRT monitors the disruption and Your Bank is in the process of incorporating ESG &
gives necessary directions to various Verticals/fields, Climate Risk in its ICAAP. Your Bank is also taking
and also monitors the situation till normalcy is restored. help from external experts for providing consultancy
Group Risk Management services related to the ESG Transition of your Bank.
Group Risk entails the risks faced by any of the group Your Bank is working towards setting a time-bound
entities that have a common resonance across the quantitative target for reduction in emissions/reduction
group, which may have a group-wide impact. in emissions intensity/carbon neutrality. Your Bank
Your Bank, through its group entities, participates in will be aligned with national goals and targets in the
diversified financial services like banking, securities nation’s collective transition to a low-carbon economy.
and capital markets, insurance, mutual fund, and retail Enterprise Risk Management (ERM)
asset businesses. Bank has put in place a framework/ An ERM framework enables a firm to gain a clear view
policy for the assessment of risks for its Group entities, of its overall risk level. It helps to manage and align risk
internal controls, mitigants, and capital assessment with strategy at a whole Bank level. It encompasses,
under normal and stressed conditions.
Integrated Annual Report
2022-23 183

among others, a Risk Appetite framework and the governance systems and processes.
establishment of consistent Risk culture in your Bank. During the year FY 2022-23, Bank has conducted 7279
Your Bank has a Board approved ERM policy in place. Branch audits and 656 audits for other units.
Bank also conducts a comprehensive Internal Capital Apart from the above audits, Bank has a Concurrent
Adequacy Assessment Process (ICAAP) wherein Audit system covering 1863 branches/units covering
the material risks faced by your Bank are listed, and 55.12% of the Total Deposits and 76.92% of the Total
their measurement and management methodologies Advances of your Bank , which ensures compliance
are enumerated. Besides the Pillar-I risks, the Pillar-II with RBI guidelines and also conducts Management

Strategy, Model & Capitals

risks are also assessed. The adequacy of the capital Audit, IS Audit, Swift Audit, Bill of Entry audit, Foreign
under normal & stressed conditions and to meet future Branches’ audit, Forex Branches audit and Expenditure
business requirements are also assessed. Audit for effective follow-up and monitoring.
23 Compliance 25 Cyber Security
Your Bank has implemented a robust compliance Your Bank puts cyber security front and center to
system along with a well-documented Compliance safeguard the bank’s stakeholder interests while
Policy. The focus of the compliance function is growing its digital business with an omnichannel
adherence to regulatory compliance, statutory presence. Bank has cultivated a strong cybersecurity
compliance, compliance with fair practice codes and culture to increase digital trust among its stakeholders.
other prescribed codes, government policies, your Bank Bank has established the Cybersecurity Centre of
’s internal policies, and prevention of money laundering Excellence (CCoE) at its premises in Hyderabad, tasked
and funding of illegal activities. with learning, imbibing, and implementing industry-

Notice
Your Bank conducts regular Compliance Test Checks leading new-generation cybersecurity technologies that
of various Banking functions undertaken by various will not only protect your Bank ’s cybersecurity assets
Central Office Departments, Field Level controlling but also focus on a comprehensive awareness and
offices, and branches. education programme for its employees and customers.
Your Bank has an in-house Compliance package to CCoE has signed MoU with external institutes such as
monitor & manage responses to communications the Centre for Development of Advance Computing
received from Regulators (RBI, SEBI, etc.) / Government (CDAC), Hyderabad and Cyber Security Centre of
of India (MoF) and IBA. Periodic compliance test Excellence, Department of IT & Electronics, Government
of West Bengal (WB-CS-CoE) for using their expertise in

Statutory Reports
checks are put in place for the effective implementation
of mandatory guidelines. The role & responsibility of the conducting cybersecurity awareness webinars/training
Compliance Function is clearly defined for every tier in for stakeholders.
your Bank. Your Bank has a well-established reporting Your Bank has also developed a Comprehensive
system to ensure regulatory and statutory compliance Cybersecurity Awareness Programme (CCSAP) for
through the self-certification process. A compliance customers and employees. Your Bank reaches out
certificate is submitted by branches to the respective to customers with awareness campaigns across
ROs & from ROs to FGMOs. FGMOs & CO verticals multiple channels, such as SMS, emails, ATMs, display
submit the Compliance Certificate to the Compliance units in branches, social media, and on Bank website.
Department every quarter. A field-level structure of Cybersecurity awareness webinars for customers are

Financial Statements
compliance has been established through Zonal being conducted pan India at Bank’s all zonal office
Compliance Officers and Zonal Compliance Monitoring locations. A unique, first-of-its-kind initiative has been
Committee. the introduction of cybersecurity mascots “U SuरKsha”
Your Bank has implemented a Compliance and “U रKshak” to personalize and promote educational
Monitoring Tool, an application built cybersecurity safety tips to its people. Bank has
In-house to enable individual-level compliance designated Digital Ambassadors in all Branches to
monitoring, certification, and verification in line with the spread cybersecurity awareness at the grassroots level.
EASE 4.0 deliverables. In addition, your Bank drives initiatives to further the
Ministry of Home Affairs, Government of India’s Cyber
24 Internal Audit Jaagrookta Diwas (CJD), which is observed on the first
An effective and efficient internal audit function Wednesday of every month. On this day, Union Bank
provides independent assurance to the Board and sends e-mails on cybersecurity topics to customers,
senior Management on the quality and effectiveness posts creatives on social media, and invites eminent
of your Bank ‘s internal control, risk management, and speakers from the cybersecurity domain to conduct
 Integrated Annual Report
184 2022-23

engaging webinars. In sync with international practice, Union Bank of India has also implemented a
the annual National Cybersecurity Awareness Month cybersecurity framework and established a 24x7 Cyber
(NCSAM) is celebrated throughout the month of Security Operation Centre (C-SOC) with a dedicated,
October with a daily webinar on different cybersecurity skilled team that works around the clock. The C-SOC
topics. Your Bank, during its training programs, is helps to identify, detect and prevent cyber threats. It
also disseminating information regarding reporting is tightly integrated with critical business applications
Cybercrime in the National Cyber Crime portal of Govt to monitor attack vectors at various layers. Bank has
of India by visiting https://cybercrime.gov.in or dialing adopted the ‘Security by design’ approach to strengthen
1930. the cybersecurity posture of your Bank by automating
Bank is strengthening and promoting cybersecurity its data security controls and developing a robust IT
culture amongst its staff members by implementing an infrastructure.
annual action plan for various cybersecurity activities To provide holistic protection for its cyber infrastructure,
which includes conducting town hall meetings pan Bank has adopted a ‘Defence in depth’ strategy with a
India, daily mail with cybersecurity tips, interactive comprehensive, multi-layered security architecture in
puzzles, and crosswords. To evaluate and help place. Your Bank has also implemented cybersecurity
employees to know their cyber hygiene risk profile, solutions at each level, like perimeter security, network
My Cyber Hygiene, an online cybersecurity self-risk security, application security, endpoint security, identity,
assessment programmes, is made available for staff and access management, threat Intelligence, and data
members. security to protect its IT assets. The Ethical Hacking
Bank regularly publishes internal booklets and news Lab, set up by your Bank under its CCoE, is tasked with
snippets to update staff members on the latest identifying the gaps in the perimeter or internet-facing
cybersecurity news and trends. The booklet, “Union application/assets of your Bank on a daily basis.
Shield”, has been released in various regional languages The Vulnerability Assessment/Penetration Testing Lab
to maximise its reach and spread awareness. A (VA/PT) is also under CCoE, and it conducts a quarterly
monthly phishing simulation exercise for all employees VA or PT of critical applications and all the applications
creates awareness and identifies weak points among twice a year. With the help of external vendors, your
the staff that can be addressed with additional training Bank also conducts red-teaming exercises to identify
and handholding. Union Bank has also formulated the the vulnerabilities, business risks, the efficacy of the
Cybersecurity Executive Development Programme defences, etc., in its IT infrastructure. These simulate
(CSEDP) to offer in-house certification for senior the actions of an attacker and test the mitigating
management in IT and Cybersecurity. Your Bank controls that are already in place.
has also created a robust cybersecurity governance Cyber Security Awareness
structure comprising policies, procedures, guidelines,
and committees at the executive and Board levels. Bank never failed in bringing innovative ideas for
incorporating Cyber Security at the root level of the
State of the Art technologies Organization. Some of them are:
Your Bank has harmonized its policies and action • First Bank to launch Cyber Security Mascot
plans in line with Digital Payment Security Controls (U-SuरKsha (Female Mascot) and U-रKshak (Male
for Internet banking, mobile banking applications, Mascot) for creating Cyber Security Awareness.
ATM operations, and other generic security controls.
Your Bank ’s Data Centre (DC) & Disaster Recovery • Developed My Cyber Hygiene portal for evaluating
(DR) site has ISO certifications for Information the cyber awareness level of staff.
Security Management Systems (27001) and Business • Introduced daily cyber security awareness
Continuity Management System (22301). Your Bank programme “SABKO BATAOO” which provides
’s Enterprise Risk Management System is ISO 31000 knowledge on Cyber Security to Staff.
certified. Your Bank has PCI-DSS certification for all
• Conducting Town Hall Meetings PAN India to
card payment systems and ATM Switch operations.
spread awareness of Cybersecurity among staff
Multiple measures are in place to protect systems and
members & customers across the zones in India.
confidential Bank/customer data, such as a defense-in-
depth architecture with layered defensive mechanisms • Your Bank , in coordination with CDAC, Hyderabad,
and a data loss or leakage prevention strategy. This is conducting online webinars for Bank customers
includes protecting data processed on end-point across India.
devices, data in transmission as well as data stored • Created Multilingual Podcasts on Cyber Security
on systems. Data security and protection are also Awareness.
mandated at your Bank ’s vendor-managed facilities.
Integrated Annual Report
2022-23 185

Your Bank conducted the Cybersecurity Awareness • Now report on Positive can be generated by
campaign “Cyber Security Awareness Mission–2022-23” branches also- First in the PSUs
across India during the month of October 2022. Daily • Bulk uploading of cheques for reconfirmation in
webinars were conducted virtually for all the employees Internet banking -First in PSUs.
of your Bank .
Simplified/ Instant DEMAT Account Opening :
Bank is also observing Cyber Jaagrookta Diwas every
month on the first Wednesday, and the following Opening of DEMAT account through the DAO menu in
activities are being conducted: Finacle in less than one minute and through Internet

Strategy, Model & Capitals

banking in 2 minutes.
• Cybersecurity Awareness programme to
customers/staff in association with CDAC Revamping of Chatbot - Implementation in Internet &
Hyderabad. Mobile Banking :

• Cybersecurity Awareness creatives are being The chatbot is implemented in Internet Banking &
posted on social media platforms. Mobile Banking. New features have been added. Now
chatbot is made available in Hindi & English. Only a few
26 Operations banks have a Hindi version. Chatbot in UVCONN under
INITIATIVES TAKEN development.
Video KYC has been made live for all DBUs, 3 FGMO GRIEVANCE REDRESSAL MECHANISM
(Ahmedabad, Mumbai, Pune) & 5 regions (Ludhiana, The Grievance Redressal Mechanism has been
Lucknow, Mumbai South, Thane & Kanpur). Around strengthened to cater to the need of the customers. The
4000+ accounts have been opened through V-KYC. roles and responsibilities at each level of the Grievance

Notice
Video KYC Cell has been set up in Lucknow. Redressal Mechanism have been clearly identified and
UVConn 2.0: defined. Mechanism to resolve the complaints and
Standard Operating Practices has been defined at all
UVConn is a digital platform where customers can
levels to speed up the process of grievance redressal.
access basic enquires and services using Whatsapp
Messenger. UVConn leverages the WhatsApp Grievance Redressal Policy: - Policy outlines the
communication platform to connect with customers framework for addressing customer grievances; it aims
for inquiries related to their accounts. UVConn currently at minimizing instances of customer complaints and
Live in 7 languages (English, Hindi, Kannada, Telugu, grievances through a well-structured escalation matrix
and pre-defined TATs depending on the nature of the

Statutory Reports
Tamil, Bangla, and Marathi). There are 6 Enquiries and
Services (Account Balance, Mini Statement, Cheque complaint. The purpose is to ensure prompt as well as
Status, Cheque Book Request, Stop Cheque, Locker effective redressal of customer complaints.
rent inquiry, Green PIN, ATM Card block/Unblock, PPF Union Care 2.0 Handbook has been issued by the
Balance, SSA Balance), and Positive pay. Currently, bank, which covers the categorization of complaints,
10 Lakhs+ users are on-boarded over UVConn, and probable reasons for complaints and remedial
45 Lakhs+ inquiries are triggered by customers over measures, escalation matrix, and updated contact
UVConn. details of officials nominated for resolving customer
Projects implemented: complaints in the area of ATM, Internet Banking,
Pension, Mobile Banking, Door Step Banking, NEFT/
E-nomination : Nomination through Mobile banking,

Financial Statements
RTGS, ASBA/DEMAT, etc. The Handbook helps the
Internet banking, branch banking, WhatsApp banking,
Field Functionaries for early resolution of customer
and Corporate website.
complaints in a better way.
Positive Pay : Reconfirmation of Cheque. Presently it is
Your Bank has now uploaded the contact and other
made mandatory in cheques of ₹5.00 lacs and above.
details of FGRO and RGRO on our website to enable
The facility is available through Branch, SMS, Mobile,
ease to the customer in quick resolution of complaints.
UVConn, Internet banking, and corporate website. Limit
We have also issued a detailed action plan, Do’s &
options are also made available to the customers.
Don’ts, and alternate arrangements during the tour/
• There are more than 110 reconfirmations daily leave of RGROs/FGROs for redressal of grievances
above `5.00 lakhs. posted at ROs/ZOs. Now our website contains the
structured Grievance Redressal Mechanism from the
Chief Grievance Officer level to ZO and RO levels.
 Integrated Annual Report
186 2022-23

The details of customers complaints received during branch network and various platforms.
the financial year 2022-23 are given below: All our branches and offices, including our training
centres, have implemented core banking solutions.
Particulars Count
Our international branches have also implemented
Complaints outstanding as of 1st April 1,395 core banking solutions that connect all our multiple
2022 (including BO Complaints) delivery channels to a common platform. Core banking
2,52,086 solutions facilitate the networking of branches,
Complaints received during the year enabling customers to operate their accounts and
(including BO Complaints) avail of banking services from any of our branches
Complaints resolved during the year 2,52,954 on the core banking solutions network, regardless of
(including BO Complaints) where that customer maintains their account. Our core
banking solutions deployment comprises three sites,
Complaints outstanding as of 31st 527
the primary site, the near site, and the disaster recovery
March 2023 (including BO Complaints) site, located in different seismic zones.
Union Bank of India caters to its customers across
27 Analytics Capabilities
metropolitan, urban, semi-rural, and rural areas through
Bank has embarked on its journey of scaling up
a range of delivery methods to enable them to access
its analytics capabilities and enhancing its data
our products and services, including physical branches,
culture and competencies. The Analytics Centre of
rural branches, financial inclusion outlets, internet
Excellence (ACoE), set up by your Bank, collaborates
banking, and telephone banking. As of March 31, 2023,
and communicates across business verticals to
we had 8,870 domestic branches in India across 28
develop bespoke use cases and dashboards. Bank has
states and 8 union territories. We also have 219 Retail
formulated a dedicated Policy for ACoE to drive the
Loan Points and 125 MLPs as of March 31, 2023, to
effective use of analytics within your Bank .
serve as dedicated credit processing centres for
customers in the RAM sectors. Some of the areas where Analytics has been used in
your Bank are mentioned below:
Our international operations include the operations of
our subsidiary, Union Bank of India (UK) Limited, and Digital Lending: Analytics is being used to understand
our three branches in Hong Kong, DIFC, and Sydney. In customers’ behaviour and account information, thereby
addition, we have a representative office in Abu Dhabi. offering pre-approved personal loans to existing
Our Bank also has a joint venture in Malaysia, India customers through end-to-end digital journeys.
International Bank (Malaysia) BHD. We are planning to Fraud Detection: Analytics is used to identify potential
open a branch in Gujarat International Finance Tec-City frauds. Bank is using real-time analytics to monitor
(GIFT City) [in Fiscal 2023] when regulatory approvals transactions and identify unusual patterns that could
are in place. As on March 31, 2023, our Bank had 10,835 indicate fraud.
ATMs, of which 7,889 were located at our branches
(on-site), and 2,946 were located off-site. Most of Operations: Bank has deployed an ML-based model to
our ATMs function 24/7 and are located at various identify churn in CASA customers and also prescribe
commercial establishments and at other convenient appropriate action for their retention.
locations, offering our customers the convenience of Marketing and Sales: Analytics-generated leads have
facilities, such as cash withdrawal, balance enquiry, helped your Bank identify potential customers, offer
mini statements of accounts, and fund transfer. We personalized products and services, and improve
also operate cash deposit machines and passbook customer satisfaction.
kiosks. Further Bank has made 27 services like Cash
Risk Management: Analytics is used to identify,
Deposit and Withdrawal, Green Pin, Request for Loan,
measure and manage risk across your Bank . Your
etc., operational in 7 Digital Banking Units (DBU).
Bank uses predictive analytics to assess the likelihood
Business Correspondents act as agents on our behalf of default on loans and identify potential NPA.
and accept deposits or make cash payments when
Smart Reporting: Bank has developed many visual
customers would like to deposit or withdraw money
dashboards to track business under the CASA, Retail
to or from their accounts at locations other than a
loans, and MSME loans portfolio with peer banks in the
traditional Bank branch. We have adopted technologies
market.
and processes to serve the changing requirements of
our customers and to ensure efficient and accessible
services to our customers through our diversified
Integrated Annual Report
2022-23 187

28 Credit Compliance and Monitoring necessary for the perpetual growth & profitability of the
organization.
To re-tune the processes and improve data accuracy
and operational efficiency, we have done ‘End-to-End’ The facets of vigilance are classified into preventive,
automation of the CERSAI registration process, and we participative & punitive. Rather than punitive actions,
have integrated the same through the LAS platform. the efficiency of vigilance in an organization is counted
In this new process, CERSAI of loan assets will be on efficiency in bringing Reformation in systems &
registered with the help of LAS, which will eradicate procedures by preventing unhealthy practices and
the current issues and difficulties faced by field ensuring hassle-free delivery services.

Strategy, Model & Capitals

functionaries. Your Bank has adopted a Whistle Blower Policy
Bank Guarantee E-confirmation Software: pursuant to which employees of your Bank can raise
their concerns relating to fraud, malpractice, or any
As an integral part of business, your Bank issues
other activity or event which is against the interest of
guarantees on behalf of the customers for various
your Bank or society as a whole. As per the Whistle
purposes. At present, the beneficiary organization of
Blower Policy, the Executive Director looking after HR
your Bank Guarantee seeks confirmation of details
is the designated Nodal Officer for all whistle-blower
of the issuance of your Bank guarantee from issuing
complaints. In order to sensitize the staff members
bank’s centralized cell, i.e., the E-Confirmation Cell’
and citizens about the importance of the PIDPI/
(ECC) at Credit Compliance & Monitoring, Central
Whistleblower mechanism, Short Video Films on PIDPI
Office.
& Corruption have been prepared in house by Bank staff
In order to ease the process for E-confirmation, a new for circulation on Social Media handles of your Bank like
in-house software is prepared, enabling us to check Facebook, Youtube, and Twitter, etc. to educate masses

Notice
Bank Guarantee details and send E-confirmation to the to come out and report incidences of fraud/ corruption.
beneficiary’s email ID in your Bank ’s prescribed format
Total 02 films have been prepared, which were
with a single click. This software will result in the time-
launched during VAW-2022. The use of technology
saving and error-free submission of E-confirmation.
and advancement were shown as effective tools in
QR code for Collection: the animation movie on Corruption Free India for a
Dynamic QR Code through SMS and WhatsApp Developed Nation.
message at regular intervals to be sent to the borrower To safeguard your Bank against internal/external
on a registered mobile number with Loan details and threats such as fraud, bribery, corruption, abuse of

Statutory Reports
overdue details. authority, and non-compliance with laid down systems &
The borrower will scan the QR Code, which will provide procedures, constant vigilance at all levels is necessary
him/her Loan Account details for information and the through a process called ‘participative vigilance’. To
option for payment of EMI/Overdue or amount of his/ popularize the scheme, awareness is created during
her own choice, followed by generation of e-Receipt the VAW and during preventive vigilance visits to the
branches.
Tie-up with Mom and Pop stores:
Preventive Vigilance Visits are surprise visits to
A list of the Kirana stores/ general stores (along with the
branches by vigilance officials, the very purpose of
location /address) providing Business Correspondent
which is to sensitize the staff about the importance of
Services in a nearby area of the borrower has to be
following the laid down rules and procedures by your

Financial Statements
provided through SMS and Whatsapp to the borrower
Bank from time to time. In F.Y. 2022-23, 9071 visits
for payment of Loan EMI either in Cash or through
were conducted.
handheld devices used by them.
In addition to the PVV, an offsite surveillance system is
29 Vigilance adopted by your Bank , which helps in the detection of
The Vigilance department in your Bank is headed by the abnormal transactions, irregularities, etc., and thereby
Chief Vigilance Officer (CVO), who acts as an extended initiates corrective action. During the year, 232284
arm of the CVC. The CVO is assisted by a team of alerts were raised under off-site surveillance, which
Functional Vigilance Officers and Field Vigilance Officers was reviewed by CVO during quarterly ZVC meetings
stationed at the Central Office and Zonal Vigilance Cells for timely action and closure.
/ Regional Vigilance Cells, respectively, headed by a During the year, various systemic improvements have
DGM and 6 AGMs. The vigilance administration in your been undertaken by the concerned departments as
Bank acts as a moral gatekeeping of the employee’s suggested by the Vigilance Department in order to
conduct in order to promote sound business decisions streamline the processes and systems in your Bank.
 Integrated Annual Report
188 2022-23

Control Returns are also sent regularly to various towards the Independence of our Nation.
statutory and regulatory bodies (CVC, RBI, MOF, CBI, This year your Bank has released a dedicated song on
etc.) as demanded by them to enable them to exercise this year’s theme- “Corruption Free India for a Developed
a general check and supervision over our vigilance Nation,” in the presence of Hon’ble Shri Suresh N
cases and anti-corruption work. In compliance Patel, then CVC, during the Vigilance Awareness Week
with CVC directions, our Bank observes Vigilance celebrations. The song was conceptualized, composed,
Awareness Week from October to November every and sung by in-house people. A total of 1,000
year by executing numerous activities in & outside the employees, from bottom to top ladder, participated
organization with the aim of sensitizing& spreading in the song, pledging their ideation towards making
awareness amongst staff, children, youth, and all India- a corruption-free nation. The song received wide
citizens of the country, including the rural population. publicity and accolades.
This year, the pre-inauguration ceremony of VAW-2022
began in our Bank by commencing precursor activities Coming to the punitive part, as against the total staff
as advised by the central vigilance commission. strength of 75594 as of 31.03.2023, the number of
pending vigilance cases is 293, i.e., 0.38%. During the
During the solemn occasion of observing Vigilance year,1105 complaints were received by the department
Awareness Week from 31st Oct to 06th Nov 2022 & 1098 have been disposed of, including 27 complaints
under the theme “Corruption Free India for a Developed pertaining to the previous year. During the year,
Nation”, we were able to entail participation of 9.34 investigations were ordered in 83 cases & reports
lac citizens, including staff members, by oath-taking were received in 92 cases, including 14 investigation
of integrity pledge through online mode and conduct reports pertaining to the previous year. Investigation
17938 outreach activities apart from undertaking visits reports in 05 cases are awaited, which are less than 03
in birthplaces of freedom fighters recognised by GoI months old. TAT for completing the investigation and
under Azadi Ka Amrit Mohotsav by vigilance officials. submission of the investigation report to the Vigilance
We were opportune to organize an event with top department stood at 57 days as against the benchmark
executives in the boardroom graced by a visit & address of 90 days.
by then CVC Shri Suresh N Patel during VAW-2022.
A new initiative Vigilance Perception Index (VPI), has
For knowledge enrichment of our staff, we unveiled been undertaken, which will enable Field General
four short series on Vigilance Manual, Procurement, Managers/ Regional Heads to assess the level
Disciplinary Action & Banks guidelines. Also, CVC, of implementation and effectiveness of available
in coordination with our Bank, has published a preventive vigilance tools of your Bank based on
cartoon booklet in Hindi & English as well for creating the review of 10 selected parameters in the Zonal
awareness among the common citizens/students Vigilance Committee meetings on a quarterly basis.
about corruption, ethics, etc. The compliance culture of your Bank has considerably
Various lectures related to Vigilance Awareness Week improved, which is evident from the fact that at the time
were organized by PAN INDIA. An exclusive radio of launching total VPI score of your Bank was 67.31% &
interview of CVO Shri. Umesh Kumar Singh, with the the same has now improved to 97.91%.
title “PATE KI BAAT,” has also been broadcasted on RED Union Reformation- A project has been launched to
FM to reach the masses to create awareness about inculcate Business Ethics and reintegrate punished
PIDPI & Vigilance Awareness Week. employees into mainstream banking is launched in your
An online Quiz on PIDPI was conducted for all (staff Bank . This project works on the concept of positive
as well as the General public) on a Pan India basis punishment, which entails the placement of deterrents
with automated certificate generation and the facility so that the occurrence of an unwanted event can be
to download a book containing short stories on moral avoided. Further, in the case of penalized employees,
values for children/ students. counseling and training are part of the curriculum,
Drawing inspiration from ‘Azaadi ka Amrit Mahotsav’, which will help them re-establish themselves in the
birthplaces of unsung freedom fighters were workplace as well as reduce the reoccurrence of any
identified, and visits were made by executives such lapses in the future.
from Vigilance Department, Central Office to such 30 Opportunities
places commemorating their contribution to Indian
30.1 Pan India Presence: Post amalgamation, your
Independence and taking inspiration from their efforts
Bank has emerged as the 4th largest Bank in
to fight against corruption, making India a Corruption
terms of total business and 4th largest in terms
Free Developed Nation. A movie was also released
of network among the PSBs. Your Bank has a
in honour of these heroes who contributed greatly
Integrated Annual Report
2022-23 189

network of 8870 branches across all the states offerings can help in meeting customer financial
& Union Territories, 10800 plus ATMs,17600 plus needs holistically.
BC points, an employee base of 75594, and a 30.6 Higher Market Share: Being the 5th largest PSB in
customer base of over 155 million. the country with a pan-India presence, your Bank
30.2 Strong organization structure: The creation has a very strong market share in most of the
of centralized processing cells has enhanced Indian States. During the quarter that ended Dec’22
customer focus and increased lead generation on a y-o-y basis, your Bank has improved its share
by branches due to the shift of processing in PSBs in Total Business (52 bps), Deposits (41

Strategy, Model & Capitals

to Centralised Processing Centers (CPCs). bps) & Credit (64 bps). Going forward, consistent
Furthermore, dedicated monitoring teams at ROs improvement in share is quite challenging.
and dedicated recovery branches, supported Therefore, Bank has decided to initiate project
by Regional Office Collection Centers (RCOCs)/ POWER, which represents Enhanced Publicity &
Feet on Street (FOS), have assisted your Bank in Advertisement, Outreach, and Customer Connect
reducing stress and improving recovery. On the through robust marketing, HR Initiatives to
sourcing front, your Bank has started generating Empower Employees and Re-creating products
analytics-based leads and widened the scope of and processes with the vision to improve its share
services of our subsidiary, UBI Services Limited on a continuous basis by selecting one aspirational
(UBISL), and entered into tie-ups with Fintechs. district in each region, where your Bank would
30.3 Digitisation: Gen Z is expected to influence focus on converting the opportunity available in
businesses across industries. They comprise the selected district into business.
1.8 billion people making up 24% of the global 30.7 Sustainability of Growth & Scope or Further

Notice
population by 2030. This has led to the focus of Improvement: As per Enhanced Access & Service
your Bank towards digitization to offer seamless Excellence (EASE) Index for Q3 FY 2023, Union
banking among this generation that relies majorly Bank of India currently ranks first. Our bank’s GNPA
on smartphones and digital mediums for their dropped sharply by 369 basis points (bps) YoY to
financial interactions and transactions. On 7.93%. NNPA went down by 195 bps YoY to 2.14%.
the digitization front, various straight-through Provision Coverage Ratio PCR stood at 88.50%.
processing (STP) journeys for Retail, Agriculture, Your Bank has set benchmarks under various
and MSME (RAM) segments have been launched. themes like “Modern Technology Capabilities”
Bank has envisaged to set-up a Next-Generation & “Employee Development and Governance,

Statutory Reports
Data Repository solution (Data Lake) to meet its “Digitally Enabled Customer Offerings”, and “Big
Analytical and Reporting requirements Digital Data & Analytics”. However, your Bank needs to
Transformation requirements. Data Lake can store focus on the sustainability of growth and needs to
multi-structured data from diverse sources to meet develop to find scope for continued growth across
present & future needs and to support Advanced all the areas of operations.
Analytics, Deep Learning Algorithms & Real Time
30.8 Skilled and Diverse Workforce: Your Bank has one
Decision Analytics.
of the youngest workforces, with an average age of
30.4 Government initiatives: Focus of the Government less than 40 years. A relatively younger workforce
aimed at building better infrastructure, particularly will help your Bank for easy transformation

Financial Statements
in rural areas, will lead to an increasing number towards becoming a digitally savvy Bank. Policy
of households with electricity and water supply, changes are in vogue to upskill youngsters and
adding more demand for telecom and gas build specialization across chosen job Families.
connections and subsequently increasing the Besides, women-centric benefits are in place to
customer base of Bharat Bill Payment System ensure greater participation in the promotion
(BBPS) users. process by eligible candidates across the women’s
30.5 Low penetration of financial services: As workforce.
the average per capita income for the country
increases, there could be a further increase in the
31 Threats
penetration of financial services. There is great 31.1 Stiff Competition: Interest rates could remain
potential ahead in deepening financial products, higher for the first half of FY 2023-24, and the
especially in wealth management, payments, competition for liabilities will be tough. All the
insurance, and pension products in India. Banks major banks will be on getting a higher share of
with rich branch network presence and digital incremental deposits mobilised by the banking
 Integrated Annual Report
190 2022-23

industry. The Government has also raised interest 32 Outlook

on small savings to attract a higher flow of savings
32.1 The year 2022-23 was a year of resurgence
from households. Even though the impact of the
for India’s economy despite the tailwind of the
global banking collapse may be limited in India,
pandemic and the headwind of the geo-political
the spread of the crisis globally could constrict
conflict intertwining to escalate global economic
capital flow in India and other emerging markets.
uncertainty. Indian economy has grown to fifth
This could potentially have a negative impact on
largest economy by GDP. Improved macroeconomic
the Indian economy, as well as on other economies
stability as seen in the moderate current account
that rely on capital inflows.
deficit, easing inflation pressure, and resilience
31.2 Uncertain Business Environment: Globally, the in banking system is expected to strengthen the
worry is that the core inflation could remain sticky, outlook further. These fundamentals support
and price rises could become entrenched due to the projections of World Bank estimate of 6.3%
the relatively tight economic environment facing and Asian Development Bank (ADB) estimate of
several territories, which is placing unprecedented 6.4% for FY 2023-24. Growth numbers would be
pressure on central banks. Banks in India have further supported by improving rural demand, the
performed considerably well in FY2022-23 after Government’s thrust on infrastructure spending,
the pandemic hit the economy hard. Be it in terms revival in corporate investment, healthy bank credit,
of recovering bad loans, generating better profits, and moderating commodity prices. Downside
or having higher provisions, both the public and risks to growth include headwinds of prolonged
private sector banks have witnessed positive geopolitical tensions, tighter global financial
traits. Going forward, the impact of high inflation conditions, global financial market volatility and
on household savings/consumption and the effect slowing external demand.
of the increase in interest rates and servicing costs
32.2 Bank credit offtake remained buoyant on resilient
on vulnerable borrowers will remain risks.
economic activity. Though some corrections in
31.3 Rise in NPA levels: As the moratorium given peak growth numbers are expected, credit growth
during the pandemic to the retail and MSME sector is expected to remain double digit in FY 2023-
will end during 2023-24, there are chances of a rise 24 followed by sustained deposit inflow. With
in NPA levels as many of the small and medium inflation seen softening below target level, the RBI
business units have failed to gain momentum has affected pause on rate hikes while remaining
after the pandemic. Recent past, the pricing of the vigilant, strengthening India’s prospects while
loan products by the banks was high due to the mitigating the impact of global spill overs on
interest rate hike by the Reserve Bank. Also, the domestic financial markets.
Inflationary pressure in the economy remains a
For and on behalf of the Board of Directors
threat. Hence, the consumers may be delaying the
payments towards their Loan Accounts, resulting
in increased stress in your Bank ‘s book.
Place: Mumbai (Srinivasan Varadarajan)
Date: 23.06.2023 Chairman
Integrated Annual Report
2022-23 191

Corporate Governance Report

1. BANK’S PHILOSOPHY ON CORPORATE Prohibition of Insider Trading, Related Party

GOVERNANCE Transaction Policy, Whistle Blower Policy, Staff
1.1 Union Bank of India is committed to good corporate Related Matters, Vigilance etc.
governance practices. The Bank has laid emphasis
1.6 The Bank being a listed entity complies with the

Strategy, Model & Capitals

on the cardinal values of fairness, transparency and
Corporate Governance provisions of the SEBI (Listing
accountability for performance at all levels, thereby
Obligations & Disclosure Requirements) Regulations,
enhancing the shareholders’ value and protecting the
2015.
interests of the stakeholders.
2. BOARD OF DIRECTORS
1.2 The Bank considers itself as trustee of its shareholders
and acknowledges its responsibility towards them for 2.1 The composition of the Board of Directors is
creation and safeguarding their wealth. During the year governed by the provisions of the Banking Companies
under review, the Bank continued its pursuit of achieving (Acquisition and Transfer of Undertakings) Act, 1970,
these objectives through adoption of corporate as amended and Nationalised Banks (Management and
strategies, prudent business plans, monitoring of major Miscellaneous Provisions) Scheme, 1970, as amended.
risks and pursuing policies and procedures to satisfy its
2.2 The responsibilities of the Board include monitoring
legal and ethical responsibilities.
overall functioning of Bank including but not limiting to

Notice
1.3 The Bank firmly believes that the self-discipline and approval of policies for conduct of business, business
sincerity of the Board and other stakeholders in carrying reviews, assessing the independence of the audit and
out their responsibilities provide the bedrock for a clean, risk function, detailed scrutiny of quarterly and annual
transparent and trustworthy Corporate Governance financial results, NPA management and provisioning
regime which in turn will earn continuous support and integrity, compliance of regulatory and statutory
trust of stakeholders. guidelines, customer protection, financial inclusion,
overall supervision of human resources etc.
1.4 The changing landscape on account of the COVID-19
pandemic has posed additional challenges and your 2.3 The Board has constituted various sub-committees and

Statutory Reports
Bank has shown the character, maturity and resilience delegated its powers for different functional areas to
to deal with the situation since March 2020 and would the committees of the Board. The Board as well as its
continue to demonstrate the same going forward. Committees meet at periodic intervals.

1.5 To implement the best practices, the Board has framed 2.4 As on 31st March, 2023, the Board comprised of five
a Code of Corporate Governance. The code helps to whole-time Directors viz. Managing Director & Chief
inculcate a spirit of good corporate governance right Executive Officer (MD & CEO) and four Executive
from the top. It basically encompasses and documents Directors appointed by the Government of India besides
the practices followed in the Bank in conduct of its seven Non-Executive Directors who are eminent
duties towards all the stakeholders like: personalities from various walks of life. Their rich and
varied experience guides the Bank in its progress and

Financial Statements
• Functioning of Board and its various Committees achievements in various spheres.

• Compliance (Regulatory and Policy) 2.5 The positions of Workmen Employee Director and
Officer Employee Director to be nominated by the
• Relation with shareholders Central Government were vacant during the year.
The positions of CA category Director and Part-Time
• Disclosures by Bank and its Directors
Non official Director to be nominated by the Central
• Corporate Social Responsibility and Government were vacant as on 31.03.2023.

• Other miscellaneous issues viz. Code of Conduct 2.6 Composition of the Board of Directors as on 31st March,
for Directors & Senior Management Personnel, 2023 is as under:
 Integrated Annual Report
192 2022-23

Number of No. of
Full Name of memberships Chairmanships Remarks
Membership
the Director, Holding of ACB & SRC of ACB & SRC (Nature of appointment in the
Sr. Appointment in
Designation of Bank’s in Public Ltd. in Public Ltd. Bank/Other Listed Companies
No. Date Committees
& Category shares Companies Companies and Area of Expertise)
of the Bank $
including the including the
Bank Bank
1 Shri Srinivasan 07-11-2022 RMC Nil 2 2 Appointed as Non-Executive
Varadarajan, SCMF Chairman and Part-Time Non-
Non-Executive NRC Official Director u/s 9(3)(h)
Chairman and BCPE of the Banking Companies
Part-Time Non- (Acquisition and Transfer of
Official Director Undertakings) Act, 1970, to hold
(Non-Executive – office for a period of three years
Independent) from the date of notification
i.e. 07.11.2022 or until further
orders, whichever is earlier.
Area of Expertise: Banking &
Finance
2 Ms. A. 03-06-2022 MCB Nil 3 2 Appointed as a Whole Time
Manimekhalai, SRC Director u/s 9(3)(a) of the
Managing Director RMC Banking Companies (Acquisition
& CEO ITSC and Transfer of Undertakings)
(Executive) SCMF Act, 1970, to hold office for a
DPPC period of three years from the
STCB date of assumption of office
HRSC i.e., 03.06.2022 or until further
CAC-I orders whichever is earlier.
REMC Area of Expertise: Banking &
CDRCF Marketing
RCNCB & WD

3 Shri Nitesh Ranjan, 10-03-2021 MCB 6725 2 Nil Appointed as a Whole Time
Executive Director SRC Director u/s 9(3)(a) of the
(Executive) ITSC Banking Companies (Acquisition
REMC and Transfer of Undertakings)
HRSC Act, 1970, for a period of 3 years
CAC-I w.e.f. the date of assumption of
CDRCF office i.e., from 10.03.2021 or
until further orders, whichever
is earlier.
Area of Expertise: Economics,
Finance & Management
4 Shri Rajneesh 21-10-2021 MCB Nil 1 Nil Appointed as a Whole Time
Karnatak, SRC Director u/s 9(3)(a) of the
Executive Director ITSC Banking Companies (Acquisition
(Executive) REMC and Transfer of Undertakings)
(till 28.04.2023) HRSC Act, 1970, for a period of 3 years
CAC-I w.e.f. the date of assumption of
CDRCF office i.e., from 21.10.2021 or
until further orders, whichever
is earlier.
Area of Expertise: Banking &
Finance
Integrated Annual Report
2022-23 193

Number of No. of
Full Name of memberships Chairmanships Remarks
Membership
the Director, Holding of ACB & SRC of ACB & SRC (Nature of appointment in the
Sr. Appointment in
Designation of Bank’s in Public Ltd. in Public Ltd. Bank/Other Listed Companies
No. Date Committees
& Category shares Companies Companies and Area of Expertise)
of the Bank $
including the including the
Bank Bank
5 Shri Nidhu Saxena, 01-02-2022 MCB Nil 2 Nil Appointed as a Whole Time
Executive Director SRC Director u/s 9(3)(a) of the

Strategy, Model & Capitals

(Executive) ITSC Banking Companies (Acquisition
REMC and Transfer of Undertakings)
HRSC Act, 1970, for a period of 3 years
CAC-I w.e.f. the date of assumption of
CDRCF office i.e., from 01.02.2022 or
until further orders, whichever
is earlier.
Area of Expertise: Banking &
Marketing
6 Shri 21-11-2022 MCB Nil 1 Nil Appointed as a Whole Time
Ramasubramanian SRC Director u/s 9(3)(a) of the
S, Executive ITSC Banking Companies (Acquisition
Director REMC and Transfer of Undertakings)
(Executive) HRSC Act, 1970, for a period of 3 years
CAC-I w.e.f. the date of assumption of
CDRCF office i.e., from 21.11.2022 or

Notice
until further orders, whichever
is earlier.
Area of Expertise: Banking &
Finance
7 Shri Sameer 08-11-2021 ACB Nil 2 Nil Nominated as a Director by
Shukla SRC Central Government u/s 9(3)
Government ITSC (b) of the Banking Companies
Nominee Director SCMF (Acquisition and Transfer of
(Non-Executive) DPPC Undertakings) Act, 1970, to hold
REMC the post until further orders.
HRSC Area of Expertise: Management

Statutory Reports
BCPE & Finance

8 Shri Arun Kumar 26-04-2019 MCB Nil 1 Nil Nominated as a Director by

Singh, RBI ACB Central Government on the
Nominee Director DPPC recommendation of RBI u/s 9(3)
(Non-Executive) (c) of the Banking Companies
(Acquisition and Transfer of
Undertakings) Act, 1970, to hold
the post until further orders.
Area of Expertise: Banking,
Finance & Information
Technology

Financial Statements
9 Shri Suraj 21-12-2021 ACB Nil 2 1 Nominated as a Part Time
Srivastava, Part- SRC Non-Official Director by
Time Non-Official RMC Central Government u/s 9(3)
Director SCMF (h) of the Banking Companies
(Non-Executive - STCB (Acquisition and Transfer of
Independent) NRC Undertakings) Act, 1970, for
RCNCB & WD a period of three years from
the date of notification i.e.
21.12.2021 or until further
orders, whichever is earlier.
Area of Expertise: Audit,
Taxation and Finance
 Integrated Annual Report
194 2022-23

Number of No. of
Full Name of memberships Chairmanships Remarks
Membership
the Director, Holding of ACB & SRC of ACB & SRC (Nature of appointment in the
Sr. Appointment in
Designation of Bank’s in Public Ltd. in Public Ltd. Bank/Other Listed Companies
No. Date Committees
& Category shares Companies Companies and Area of Expertise)
of the Bank $
including the including the
Bank Bank
10 Shri Laxman S. 21-03-2022 MCB Nil 1 Nil Nominated as a Part Time
Uppar, Part-Time SRC Non-Official Director by
Non-Official RMC Central Government u/s 9(3)
Director SCMF (h) of the Banking Companies
(Non-Executive - STCB (Acquisition and Transfer of
Independent) NRC Undertakings) Act, 1970, for
RCNCB & WD a period of three years from
the date of notification i.e.
21.03.2022 or until further
orders, whichever is earlier.
Area of Expertise: Learning &
Development, Management and
CSR
11 Dr. Jayadev 28-06-2018 ACB 200 1 Nil Elected as Shareholder Director
Madugula, RMC u/s 9(3)(i) of the Banking
Shareholder ITSC Companies (Acquisition and
Director BCPE Transfer of Undertakings) Act,
(Independent Non- HRSC 1970, for a period of three years
Executive) from 28.06.2018 to 27.06.2021
and re-elected for further period
of three years from 28.06.2021
Area of Expertise: Banking,
Finance & Risk Management
12 Ms. Priti Jay 29-07-2021 ACB 1000 3 1 Elected as Shareholder Director
Rao, Shareholder SRC u/s 9(3)(i) of the Banking
Director ITSC Companies (Acquisition and
(Independent Non- SCMF Transfer of Undertakings) Act,
Executive) HRSC 1970, for a period of three years
from 29.07.2021 to 28.07.2024.

Area of Expertise: Information

Technology, HR & CSR

$ Abbreviations of Committee Names

ACB - Audit Committee of the Board

BCPE - Board Committee for Performance Evaluation
CAC -I - Credit Approval Committee – I
CDRCF - Committee of Directors for Raising of Capital Fund
RMC - Risk Management Committee
SCMF - Special Committee on Monitoring of Frauds of ` 1 crore & above
SRC - Stakeholders Relationship Committee
DPPC - Disciplinary Proceedings & Promotion Committee
STCB - Share Transfer Committee of the Board
HRSC - HR Sub-Committee of the Board
ITSC - IT Strategy Committee
MCB - Management Committee of the Board
NRC - Nomination & Remuneration Committee
RCNCB&WD - Review Committee for Non Cooperative Borrowers & Willful Defaulters of the Bank
REMC - Recovery Management Committee of the Board
Integrated Annual Report
2022-23 195

2.7 Appointments/Cessations during the Financial Year 2022-23:

The following new directors inducted on the Board during the financial year 2022-23:-

Sr. Date of Expiry date of Nature of

Name Age Appointment Brief Profile
No. current term Expertise
1. Shri Srinivasan 58 07.11.2022 06.11.2025 or Banking & Shri Srinivasan Varadarajan has to his credit, more
Varadarajan until further Finance than three decades of experience in Banking and
orders, Financial services. He last served as the Deputy

Strategy, Model & Capitals

whichever is Managing Director of Axis Bank before setting up
earlier his own advisory practice in 2019. As a financial
advisor, he has worked with a leading international
consulting firm, a sovereign wealth fund, a large
corporate group, a NBFC group and a private
sector Bank. Shri Srinivasan Varadarajan was the
Managing Director and Head of Markets with J.P.
Morgan, India. He was also the CEO, J P Morgan
Chase Bank in India.
He served on various RBI Committees including
the Technical Advisory Committee, Committee for
Repos and Committee for STRIPS. He was also
the Chairman of Fixed Income Money Market and
Derivatives Association of India (FIMMDA) and
Primary Dealers Association of India (PDAI). He
was also the member of the Indo UK Financial

Notice
Partnership Forum.
He holds an Engineering Degree from the College
of Engineering, Anna University, Chennai and PG
Diploma in Management from the Indian Institute
of Management, Calcutta.
2. Ms. A. Manimekhalai 57 03.06.2022 02.06.2025 or Banking & Ms. A. Manimekhalai is a seasoned Banker with
until further Marketing experience of more than 3 decades. She started her
orders, career in erstwhile Vijaya Bank as an Officer in 1988
whichever is and rose successively as Branch Head, Regional
earlier Head and Functional Head of various Departments

Statutory Reports
at Corporate Office. She was instrumental in
devising & implementation of strategic policies
covering core areas like strategic planning, setting
organizational goals, growth strategies, action
plans, compliance, internal control, etc.
Prior to joining Union Bank of India, Ms. A
Manimekhalai was an Executive Director at Canara
Bank, wherein she oversaw strategic planning,
credit & related matters, inspection, marketing
and financial inclusion, State Level Lead Bank
responsibilities and the functioning of Regional
Rural Banks. She played a pivotal role in effecting

Financial Statements
successful amalgamation of Canara Bank and
Syndicate Bank. She has extensive experience
as Director on the Board of five other companies
namely Canbank Factors Ltd., Canbank Computer
Services Ltd., Canara HSBC Oriental Bank of
Commerce Life Insurance Co. Ltd., General
Insurance Corporation of India, India Infrastructure
Finance Company Ltd. and Trustee, Canara Robeco
Asset Management Co.
 Integrated Annual Report
196 2022-23

Sr. Date of Expiry date of Nature of

Name Age Appointment Brief Profile
No. current term Expertise
A member of various committees and working
groups constituted by Government of India, she
has actively contributed towards policymaking,
including drawing the future road map of RRBs,
Financial Inclusion, Agriculture Value-chain
Finance, Banking Correspondent issues and
creating synergies for seamless credit flow to
Health Care and Education.

Ms. Manimekhalai holds Master of Business

Administration (Marketing) from Bangalore
University, and a Diploma in Human Resource
Management from Narsee Monjee Institute
of Management Studies (NMIMS), Mumbai. A
beneficiary of various executive development
programs at leading institutes of country, she is
also a Certified Associate of Indian Institute of
Bankers (CAIIB).
3. Shri 55 21.11.2022 20.11.2025 or Banking & Shri Ramasubramanian S. assumed office
Ramasubramanian S until further Finance as Executive Director of Union Bank of India
orders, w.e.f. from November 21, 2022. Prior to joining
whichever is Union Bank of India, he was Chief General
earlier
Manager of Canara Bank. He has to his
credit more than 25 years of rich experience
in various facets of Banking like Corporate
Credit, MSME/Retail Credit, International
Credit and forex. He holds a Bachelor degree
in Science along with CAIIB qualification.
Throughout his banking career, he has worked
at different locations and branch categories
including Prime Corporate Credit Wing,
Large Corporate, Mid Corporate Branches
and Hong Kong Branch of Canara Bank and
administrative offices including Head Office.
He is one of the Top Executive Grade officers
who underwent Leadership Development
Strategy Program organized by Financial
Services Institutions Bureau (erstwhile
Banks Board Bureau). He is in the standing
Committee for Corporate Credit of IBA.
He is also nominated to participate in
Kamath Committee on COVID related loan
Restructuring. He is well versed in operations
and administration equally.

Cessations: The following members ceased to be the Directors during the financial year 2022-23:
Integrated Annual Report
2022-23 197

Sr. Name of Director Designation Date of Cessation Reason

No.
1. Shri Rajkiran Rai G Managing Director & CEO 31.05.2022 Completion of Tenure
2. Shri Manas Ranjan Biswal Executive Director 30.04.2022 Completion of Tenure

2.8 Inter-se relationship of Directors:

There is no inter-se relationship amongst the Directors.

Strategy, Model & Capitals

2.9 Committee Membership of Directors:
In terms of regulations 26(1) of SEBI (LODR) Regulations, 2015, Chairpersonship and Membership of Audit Committee
of the Board (ACB) and Stakeholders Relationship Committee (SRC) are considered for this disclosure.

No Director of the Bank was a member in more than 10 Committees or acted as Chairperson of more than 5 Committees
across all listed entities/public limited companies in which he / she was a Director during the year 2022-23.

Details of Membership/Chairmanship held by the Directors on the Committees of the Bank and other listed/public
limited companies where he /she was a Director as on 31.03.2023 are given here under:

Sr. Name of Member/

Name & Designation of Director Name of Company
No. Committee Chairman
1 Shri Srinivasan Varadarajan, 1. India Debt Resolution Company Limited ACB Chairman
Non-Executive Chairman and 2. Institutional Investor Advisory Services India ACB Chairman

Notice
Part-Time Non-Official Director Limited
2 Ms. A. Manimekhalai, 1.General Insurance Corporation of India ACB Chairperson
Managing Director & CEO 2.General Insurance Corporation of India SRC Chairperson
3. Union Bank of India SRC Member
3 Shri Nitesh Ranjan, Executive 1.Union Bank of India SRC Member
Director 2. National Payments Corporation of India ACB Member
4 Shri Rajneesh Karnatak, Union Bank of India SRC Member
Executive Director

Statutory Reports
5 Shri Nidhu Saxena, 1.Union Bank of India SRC Member
Executive Director 2. UBI Services Ltd ACB Member
6 Shri Ramasubramanian S, Union Bank of India SRC Member
Executive Director
7 Shri Sameer Shukla, Government Union Bank of India ACB Member
Nominee Director Union Bank of India SRC Member
8 Shri Arun Kumar Singh, Union Bank of India ACB Member
RBI Nominee Director
9 Shri Suraj Srivastava, 1.Union Bank of India ACB Chairman

Financial Statements
Part-Time Non-Official Director 2.Union Bank of India SRC Member
10 Shri Laxman S. Uppar, Union Bank of India SRC Member
Part-Time Non-Official Director
11 Dr. Jayadev Madugula, Union Bank of India ACB Member
Shareholder Director
12 Ms. Priti Jay Rao, 1.Mastek Limited ACB Member
Shareholder Director 2.Union Bank of India SRC Chairman
3. Union Bank of India ACB Member

2.10 Details of Familiarization Programmes attended by Directors:

 Integrated Annual Report
198 2022-23

The details of training programmes attended by (* 2 Board Meetings held on 14.02.2023)

Directors of the Bank are made available on Bank’s
website under the following link: 5. COMMITTEES OF THE BOARD
The Board of Directors of the Bank has constituted
h t t p : // w w w. u n i o n b a n k o f i n d i a . c o . i n / e n g l i s h /
various committees of Directors and/or executives
familarisation.aspx
to look into different areas of strategic importance
2.11 In terms of requirement of Schedule V of the Listing
in terms of Reserve Bank of India / SEBI / Govt. of
Regulations, a Practicing Company Secretary has
India guidelines on Corporate Governance and Risk
certified that none of the directors on the Board of
Management. The important Committees are as under-
the Bank have been debarred or disqualified from
being appointed or continuing as directors of Bank by 1. Management Committee of the Board (MCB)
the SEBI / Ministry of Corporate Affairs or any such
statutory authority and the certificate from Practicing 2. Audit Committee of the Board (ACB)
Company Secretary in this regard forms part of Annual 3. Risk Management Committee (RMC)
Report.
4. Special Committee on monitoring of Frauds of
2.12 The Board of Directors of the Bank confirms that the
`1.00 crore and above (SCMF)
independent directors of the Bank fulfil the conditions
specified in Listing Regulations and are independent of 5. Recovery Management Committee of the Board
the management. (ReMC)

3. ANNUAL GENERAL MEETING 6. HR Sub-Committee of the Board (HRSCB)

The Twentieth Annual General Meeting of the 7. Stakeholders Relationship Committee (SRC)*
Shareholders of the Bank was held on Thursday, 30th 8. IT Strategy Committee (ITSC)
June, 2022 through VC/OAVM where the following
directors were present: 9. Nomination & Remuneration Committee (NRC)

10. Disciplinary Proceedings & Promotion Committee

Name Designation
(DPPC)
Ms. A. Manimekhalai Managing Director & CEO
Shri Nitesh Ranjan Executive Director 11. Share Transfer Committee of the Board (STCB)

Shri Rajneesh Karnatak Executive Director 12. Review Committee for Non Cooperative Borrowers
Shri Nidhu Saxena Executive Director &Willful Defaulters of the Bank (RCNCB &WD)
Shri Sameer Shukla Govt. of India Nominee
13. Credit Approval Committee-I (CAC - I)
Director
Shri Suraj Srivastava Part-Time Non-Official 14. Committee of Directors for Raising of Capital Fund
Director (CDRCF)
Shri Laxman S Uppar Part-Time Non-Official
15. Board Committee for Performance Evaluation
Director
(BCPE)
Dr. Jayadev Madugula Shareholder Director
Ms. Priti Jay Rao Shareholder Director 5.1 Management Committee of the Board (MCB)

5.1.1 Composition:
4. BOARD MEETINGS
In pursuance of Clause 13 of the Nationalized Banks
Details of Board Meetings held during the Financial (Management & Miscellaneous Provisions) Scheme,
Year 2022-23: 1970 (as amended), the Management Committee of
The Board met 17 times during the year 2022-23 on the Board consists of –
26.04.2022, 13.05.2022, 26.05.2022, 28.06.2022, • Managing Director & CEO,
08.07.2022, 26.07.2022, 10.08.2022, 29.09.2022,
• Executive Directors,
20.10.2022, 01.11.2022, 11.11.2022, 29.11.2022,
21.12.2022, 20.01.2023, 14.02.2023* and 23.03.2023.
Integrated Annual Report
2022-23 199

• RBI Nominee Director nominated under section major functions of ACB are enumerated below:
9(3)(c) and
1. ACB provides directions as also oversees the
• Three other Non-Executive Directors under Section operation of the total audit function in the Bank.
9 (3) (e), (f), (h) & (i) nominated by the Board for Total audit function implies the organization,
a period of one year and may be re-nominated operationalization and quality control of internal
thereafter for a period of six months each for two audit and inspection within the Bank and follow-up
times on the statutory / external audit of the Bank and

Strategy, Model & Capitals

Ms. A. Manimekhalai., Managing Director & CEO of inspection by RBI.
the Bank chaired the Committee.
2. ACB reviews the internal inspection/audit
5.1.2 Functions: functions in the Bank i.e. the system, its quality and
Pursuant to the directives of Ministry of Finance, effectiveness in terms of follow-up. It reviews the
Government of India, Management Committee of inspection reports of specialized and extra-large
the Board is constituted by the Board of Directors for branches and all branches with unsatisfactory
considering various business matters viz. sanctioning/ ratings. It also specially focuses on the follow-up
review of credit proposals, loan compromise/write-off of:-
proposals, approval of capital and revenue expenditure
• Inter-branch adjustment accounts
beyond the powers of Credit Approval Committee-I,

Notice
acquisition and hiring of premises, investments, • Un-reconciled long outstanding entries in
donations, etc. Inter-Bank accounts and Nostro accounts

During the year 2022-23, 23 meetings of MCB were • Arrears in balancing of books at various
held. branches
5.2 Audit Committee of the Board (ACB)
• Frauds
5.2.1 Composition:
• All other major areas of housekeeping.

Statutory Reports
The Audit Committee of the Board (ACB) has been
constituted by the Bank as per the guidelines of Reserve 3. ACB obtains and reviews quarterly reports from
Bank of India and Ministry of Finance, Government the Compliance Officers appointed in the Bank in
of India. The ACB at present consists of following terms of guidelines of RBI and SEBI.
members –
4. Regarding statutory audits, ACB follows up on all
• Nominees of Govt. of India & Reserve Bank of India the issues raised in the Long Form Audit Reports.
and It interacts with the external auditors before and
• Three other Non-Executive Directors / Independent after the finalization of annual / semi-annual

Financial Statements
Directors. financial accounts and on the audit reports.

Executive Directors are the invitees to the meeting. 5. ACB reviews the accounting policies and practices,
Shri Suraj Shrivastava, Part-Time Non-Official Director related party transactions, Mechanism for Whistle-
chaired the Committee. Blower, Management Discussion and Analysis
and Quarterly and Annual Financial Results of the
Company Secretary acts as Secretary to the ACB
in terms of Regulation 18(1)(e) of the SEBI (LODR) Bank.
Regulations, 2015.
6. In addition to the above, the functions of the Audit
5.2.2 Functions: Committee include the role of the Audit Committee
The ACB reviews the functions of the Bank as and review of information by audit committee as
mandated by calendar of items issued by the RBI. The
 Integrated Annual Report
200 2022-23

defined under Part – C of Schedule II – Corporate Bank and to fix accountability in the event of breach of
Governance of SEBI (LODR) Regulations, 2015. approved Risk Appetite

The Committee met 11 times during the year 2022-23 The Committee met 5 times during the year 2022-23.
on 13.05.2022, 27.06.2022, 26.07.2022, 08.08.2022,
5.4 Special Committee of the Board of Directors for
14.09.2022, 20.10.2022, 18.11.2022, 13.01.2023,
monitoring of Fraud of `1.00 crore and above (SCMF)
20.01.2023, 01.03.2023 and 17.03.2023.
5.4.1 Composition:
5.3 Risk Management Committee (RMC)
Special Committee of the Board of Directors for
5.3.1 Composition: monitoring of frauds of ` 1 crore and above is
The Bank had constituted Supervisory Committee of constituted as per the guidelines issued by Reserve
Directors on Risk and Asset Liability Management Bank of India. At present the Audit Committee of Board
in terms of RBI guidelines. In terms of SEBI (LODR) (ACB) is required to oversee the internal inspection,
Regulations, 2015, the Board of Directors shall statutory audit, inter branch/inter bank accounts and
constitute a Risk Management Committee (RMC) in top major areas of housekeeping etc. The ACB is also
1000 listed entities determined on the basis of market required to focus attention on preventive aspects and
capitalization. Considering the similarity in functions, follow–up action being initiated by the bank on frauds.
the Board in its meeting dated 06.12.2019 changed the However, this Special Committee focuses on Monitoring
name of Supervisory Committee of Directors on Risk and following up of cases of frauds involving amounts
& Asset Liability Management (SCR & ALM) to Risk of ` 1 crore and above exclusively while ACB continues
Management Committee (RMC). to monitor all the cases of frauds in general.

The Committee consists of the following members: The Special Committee is constituted with following
members of the Board of Directors:
• Non-Executive Chairman
• Non-executive Chairman
• Managing Director & CEO
• Managing Director & CEO
• Three Non-Executive / Independent Directors.
• Two members from the Audit Committee of the
5.3.2 Functions:
Board
The Committee is constituted to supervise the functions
of Risk and Asset Liability Management in the Bank. The • Two other members from the Board excluding RBI
Committee is responsible for identifying, evaluating and nominee Director
monitoring the overall risks faced by the Bank.
Functions:
Ministry of Finance, Govt. of India vide letter no. The major function of the Special Committee is to
F.No. 16/19/2019-BO.Idated 30.08.2019, envisaged monitor and review all the cases of frauds of ` 1 crore
and above so as to:
institution of a Risk Appetite Framework for a
structured approach to manage, measure and control • Identify the systemic lacunae, if any that facilitated
risk, consisting of – i. A Risk Appetite Statement and perpetration of the fraud and put in place measures
Risk Limits for the Bank; ii. Policies, Processes, Controls to plug the same.
and Systems for both material and reputational risks iii.
• Identify the reasons for delay in detection, if any
Delineation of roles and responsibilities for overseeing
and/or reporting to top management of the Bank
implementation and monitoring.
and RBI.
It was further envisaged that the Risk Management
• Monitor progress of CBI /Police Investigation and
Committee may be given a mandate to periodically
recovery position.
review adherence to the Risk Appetite framework of the
Integrated Annual Report
2022-23 201

• Ensure that the staff accountability is examined at Bank chaired the Committee.
all levels in all the cases of frauds and staff side
5.6.2 Functions:
action, if required, is completed quickly without
loss of time. To oversee & review the implementation of following
aspects:
• Review the efficacy of the remedial action taken to
prevent recurrence of frauds, such as strengthening 1. Overall Strategy for the Bank on HR.
of internal controls.

Strategy, Model & Capitals

• Overall manpower plan and skills gap
identification.
• Put in place other measures as may be considered
relevant to strengthen preventive measures against • Systems, procedures and structures to attract
frauds. and groom right talent.

The Committee met 4 times during the year 2022-23. • Succession planning.

2. Development of performance management system

5.5 Recovery Management Committee of the Board
covering all staff in the Bank
(ReMC)
• Performance assessment on transparent Key
5.5.1 Composition: Responsibility Areas.
A Board level Sub Committee for Recovery Management
• System of providing developmental feedback

Notice
has been formed as per Ministry of Finance, Government to all staff.
of India guidelines to monitor the progress in recovery
on regular basis and this Committee would submit its 3. Fine tuning of policies on HR in line with Bank’s
strategy and market realities.
report to the Board.
• Reward and incentives
The composition of the Committee is:
• Promotions
• Managing Director & CEO
• Deployment

Statutory Reports
• Executive Directors
• Government of India Nominee Director 4. Training

Ms. A. Manimekhalai, Managing Director & CEO of the • Specialist business skills training
Bank chaired the Committee.
• General retraining / reorientation for all staff
5.5.2 Functions:
5. IT automation of all HR related activities
To monitor the progress in recovery on regular basis
The Committee has held 5 meetings during the year
and submit the report to the Board.
2022-23.

Financial Statements
The Committee has held 4 meetings during the year 5.7 Stakeholders Relationship Committee of the Board
2022-23. (SRCB)

5.7.1. Composition:
5.6 Human Resources Sub-Committee of the Board
(HRSCB) Pursuant to the SEBI (Listing Obligations & Disclosure
Requirements) Regulations, 2015, the Stakeholders
5.6.1 Composition: Relationship Committee (SRC) has been constituted
The Committee consists of Managing Director & CEO, with Executive Directors and Three Non-Executive
Executive Directors, Government Nominee Director and Directors.

any two Directors nominated by the Board. In addition, Ms. Priti Jay Rao, Shareholder Director, is the present
two experts in Human Resources also participate as Chairperson of the Committee.
special invitees.

Ms. A. Manimekhalai, Managing Director & CEO of the

 Integrated Annual Report
202 2022-23

5.7.2. Functions: 6. Identify and recommend to the Board and the

Committees of the Bank, the emerging risks related
Stakeholders’ related: to ESG

1. Monitoring and resolving the grievances of the The Committee has held 4 meetings during the year
security holders of the Bank including complaints 2022-23.
related to transfer/transmission of shares, non-
receipt of annual report, non-receipt of declared 5.7.3. Name & Designation of Compliance Officer:
dividends, issue of new/duplicate certificates,
Pursuant to Regulation 6 of SEBI (Listing Obligations &
general meetings etc.
Disclosure Requirements) Regulations, 2015, Shri S.K.
2. Review of measures taken for effective exercise of Dash has been appointed as Company Secretary and
voting rights by shareholders. designated as the Compliance Officer of the Bank for
3. Review of adherence to the service standards Investor Grievances.
adopted by the Bank in respect of various services
being rendered by the Registrar & Share Transfer 5.7.4. Details of Shareholder Complaints during the year
Agent. 2022-23:

4. Review of the various measures and initiatives A comparative chart showing number of complaints
taken by the Bank for reducing the quantum of received, responded and pending for the financial year
unclaimed dividends and ensuring timely receipt of ended 31.03.2023 vis-à-vis 31.03.2022 is as under:-
dividend warrants/annual reports/statutory notices
For F.Y. For F.Y.
by the shareholders of the company. Sr.
No
Particulars ended ended
31.03.23 31.03.22
Customer Service related:
a. No. of shareholders
1. To oversee the functions of overall customer complaints pending at the 0 0
grievance redressal in the Bank beginning of the year
b. No. of shareholders
2. To monitor the customer services and guide in complaints received 14 8
improving the customer service in the Bank during the year
c. No. of shareholders
3. To frame and review the Policies in the interest of
complaints resolved 14 8
customers’ interest protection. during the year
d. No. of shareholders
Corporate Social Responsibility related:
complaints pending at the 0 0
1. To review the Corporate Social Responsibility Policy end of the year
of the Bank
5.8 Information Technology Strategy Committee (ITSC)
2. To approve and review the activities / projects
undertaken by the Union Bank Social Foundation 5.8.1 Composition:
Trust periodically.
As a part of IT Governance measures, RBI has
recommended creation of IT Strategy Committee of the
ESG related:
Board to advise the Board on strategic direction on IT
1. To exercise oversight over ESG related activities. and to review IT Investments on behalf of the Board.
The Committee consists of:
2. Provide strategic guidance and oversight over all
• MD & CEO
matters and activities relating to ESG;
• Executive Directors
3. Monitor implementation and execution of ESG
related initiatives and policies; • Govt. Nominee Director

4. Assess impact of various ESG initiatives; • Two Non-Executive Directors one of whom shall be
independent Director
5. Review disclosure of ESG matters to internal and
external stakeholders; • Two Outside IT Experts
Integrated Annual Report
2022-23 203

• Chief Information Officer (CGM/GM heading the IT • To act as Board level Sub-Committee on Digital
function of the Bank) Transactions to advice, guide and monitor
enhancing digital transactions of the Bank.
Ms. Priti Jay Rao, Shareholder Director chaired the
Committee. The Committee has held 5 meetings during the year
2022-23.
5.8.2 Functions:
5.9 Nomination & Remuneration Committee (NRC)
• Approving IT strategy and policy documents.

Strategy, Model & Capitals

The Bank earlier had two separate Committees viz.
• Ensuring that the management has put an effective Nomination Committee and Remuneration Committee
strategic planning process in place. constituted in terms of earlier guidelines issued by
RBI and MOF. MOF vide its communication F. No.
• Ratifying that the business strategy is indeed
16/19/2019-BO.1 dated 30.08.2019 advised that in place
aligned with IT strategy.
of separate Nomination Committee of the Board and
• Ensuring that the IT organizational structure Remuneration Committee of the Board, the Bank may
complements the business model and its direction. constitute a single committee named Nomination and
Remuneration Committee for carrying out the functions
• Ascertaining that management has implemented entrusted to the said two committees and having
processes and practices that ensure that the IT composition as specified vide RBI’s communication
delivers value to the business. RBI/DBR/2019-20/71 Master Direction DBR.Appt. No.
9/29.67.001/2019-20, dated August 2, 2019.
• Ensuring IT investments represent a balance of

Notice
risks & benefits and that budgets are acceptable. Thus, pursuant to the above-mentioned MOF guidelines,
the Board of Directors approved the constitution of a
• Monitoring the methods that management uses single Nomination and Remuneration Committee (NRC)
to determine the IT resources needed to achieve in place of two separate Committees in line with RBI
strategic goals and provide high level direction for guidelines w.e.f. 06.12.2019.
sourcing & use of IT resources.
5.9.1 Composition:
• Ensuring proper balance of IT investments for
Reserve Bank of India vide its Master Direction No.
sustaining bank’s growth.
9/29.67.001/2019-20 dated 02.08.2019 has issued

Statutory Reports
• Ensure adequate mitigation for exposure towards Reserve Bank of India (‘Fit and Proper’ Criteria for
IT risks & controls, evaluating effectiveness of Elected Directors on the Boards of PSBs) Directions,
management’s monitoring. 2019. In terms of Para 4.1 of the said directions,
the bank is required to constitute a Nomination and
• Assessing Senior Management’s performance in Remuneration Committee for undertaking a process
implementing IT strategies. of due diligence to determine the ‘fit and proper’ status
of the persons to be elected as directors under Section
• Issuing high level policy guidance (e.g. related to
9(3)(i) of the Banking Companies (Acquisition and
risk, funding or sourcing tasks).
Transfer of Undertakings) Act, 1970. The Composition
• Confirming whether IT or business architecture is of the Committee at present is as under:

Financial Statements
to be designed, so as to derive maximum business • Non-Executive Chairman
value from IT.
• Two Non-Executive Directors nominated under
• Overseeing the aggregate funding of IT at a bank- section 9(3)(h) of the Act
level, and ascertaining if the management has
resources to ensure the proper management of IT 5.9.2 Functions:
risks.
To undertake a process of due diligence to determine
• Reviewing IT performance measurement and the ‘fit and proper’ status of the persons to be elected
contribution of IT to business (i.e. delivering the as directors under Section 9(3)(i) of the Banking
promised value). Companies (Acquisition and Transfer of Undertakings)
Act, 1970.
• To build up mechanism to undertake IT disaster
management. The Committee met one time during FY 2022-23 on
15.03.2023.
 Integrated Annual Report
204 2022-23

5.10 Disciplinary Proceedings & Promotion Committee Managers

(DPPC)
The Committee has held 6 meetings during the year
The Bank earlier had two separate Committee viz. 2022-23.
Directors Promotion Committee (DPC) and Disciplinary 5.11 Share Transfer Committee of the Board (STCB)
Proceedings Committee – Vigilance/Non-Vigilance
(DPC-V). 5.11.1 Composition:
MOF vide its communication F. No. 16/19/2019-BO.1
dated 30.08.2019 advised to review in its Board the The Committee consists of:
need for continuation of Board committees set up at the
• Managing Director & CEO or in absence, Executive
bank’s own initiative and the possibility of their functions
Director in charge of Board Secretariat
being discharged by another Board committee or the
Board, with a view to rationalise their number. • Two Non-Executive Directors
The Board of Directors with a view to rationalize its
Ms. A. Manimekhalai, Managing Director & CEO of the
Committees and considering the MOF guidelines dated
Bank chaired the Committee.
24.10.1990 and basic composition, decided to merge
Directors’ Promotion Committee and Disciplinary 5.11.2 Functions:
Proceedings Committee – Vigilance/ Non-Vigilance
w.e.f. 06.12.2019. With a view to effecting speedy transfer of shares, the
Bank has constituted a Share Transfer Committee of
5.10.1 Composition: the Board with powers to confirm transfer, transmission,
demat and issue of duplicate shares etc.
The Board of Directors has approved the constitution of
Further, in the interest of investors and with a view
the Committee as below –
to enhance ease of dealing in securities markets by
• Managing Director & CEO investors, SEBI, vide its circular dated 25.01.2022,
decided that the listed entities shall henceforth issue the
• Government Nominee Director shares in dematerialized mode only while processing
the following service requests:
• RBI Nominee Director
a. Issue of duplicate securities certificate;
Independent members / Outside experts to be inducted
while conducting interview for the promotion process b. Claim from Unclaimed Suspense Account;
from Scale VI to VII and Scale VII to VIII.
c. Renewal / Exchange of securities certificate;
Ms. A. Manimekhalai, Managing Director & CEO of the
Bank chaired the Committee. d. Endorsement;
5.10.2 Functions: e. Sub-division / Splitting of securities certificate;
• To conduct Promotion Process from TEGS VI to
TEGS VII and TEGS VII to TEGS VIII, f. Consolidation of securities certificates / folios;

• consider appeals of Executives in TEGS VI & g. Transmission;

VII against non-promotions to TEGS VII & VIII
h. Transposition;
respectively,
During the year, the STCB met 4 times and 20 Resolutions
• to consider promotions to TEGS VII & VIII in cases
were passed by circulation.
where Sealed Cover Procedure is adopted
5.12 Review Committee for Non Cooperative Borrowers
• To review Vigilance, Non-Vigilance disciplinary and Willful Defaulters (RCNCB &WD)
cases and departmental enquiries.
The Bank earlier had two separate Committee
• To review APAR marks of Top Executives upon viz. Review Committee for Classification of Non-
their representation within 15 days from the date of Cooperative Borrower (RCNCB) and Review Committee
disclosure. on Willful Defaulters of the Bank (RCWDB). MOF vide
its communication F. No. 16/19/2019-BO.1 dated
• To review the appeal against the Regular 30.08.2019 advised to review in its Board the need for
Departmental Action for major penalty for General continuation of Board committees set up at the bank’s
Integrated Annual Report
2022-23 205

own initiative and the possibility of their functions being 5.13.2 Functions:
discharged by another Board committee or the Board,
with a view to rationalise their number. The Committee is authorized by the Board /
Shareholders, as the case may be to complete the
The Board of Directors with a view to rationalize its necessary formalities for raising of capital funds
Committees and based on the composition of the and to do all such acts, deeds, and things as it may
above two committees, decided to merge the same and in its absolute discretion deem necessary, proper
to constitute a single Committee for identification of and desirable including but not limited to decide on
Wilful Defaulters and classification of Non-Cooperative quantum & mode(s), number of tranches, price or

Strategy, Model & Capitals

Borrowers namely Review Committee for Non prices, discount/premium, reservations to employees,
Cooperative Borrowers and Willful Defaulters with the customers, existing shareholders and/or any other
following composition w.e.f. 06.12.2019 – persons as decided by the Board and as provided under
• Managing Director & CEO SEBI regulations and the timing of such issue(s), calling
the issue open at its discretion subject to applicable
• Any two Independent Directors Rules and Regulations and GoI & RBI approval.
Ms. A. Manimekhalai, Managing Director & CEO of the The Committee has held 5 meetings during the year
Bank chaired the Committee. 2022-23.
5.12.1 Functions:
5.14 Board Committee for Performance Evaluation (BCPE)
• The committee shall review the orders of the
Approving Committee i.e. Executive Director 5.14.1 Composition:

Notice
Headed Committee recording the Borrower to be
Ministry of Finance vide communication no. F. No.
non-cooperative. The order shall become final only
9/5/2009-IR dated 30.08.2019 advised the Bank
after it is confirmed by the Review Committee of
to constitute a Board Committee for Performance
the Board.
Evaluation of Managing Directors & CEO, Executive
• On a half–yearly basis review the status of non- Directors in charge of internal Control Functions (Risk,
cooperative borrowers for deciding whether their Compliance and Audit) and General Managers in charge
names can be declassified as evidenced by their of internal control Functions (Risk, Compliance and
return to credit discipline and cooperative dealings Audit) of the bank.

Statutory Reports
before its submission to the Board. Further as per MOF communication dated 14.11.2019,
the Board Committee for Performance Evaluation is
• Review & confirm the orders passed by Committee
to be constituted with the approval of the Board with
headed by Executive Director on classification of
following members –
Borrowers as Willful Defaulters.
1. Non-Executive Chairman (NEC)
• Reviewing the quarterly Return submitted to CRILC.
2. Government nominee Director, and
The Committee has held 4 meetings during the year 3. Longest serving Shareholder Director on the Board.
2022-23.
In case of vacancy in the office of NEC, the Chairman of
5.13 Committee of Directors for Raising of Capital Fund Audit Committee of the Board shall be a member of the

Financial Statements
(CDRCF) Committee in place of NEC.

5.14.2 Functions:
5.13.1 Composition:
To appraise, review and accept the Annual Performance
As per the approval given by the Board the committee
Appraisal Reports of the Managing Director and CEOs,
is constituted to complete the necessary formalities for
Executive Directors and Chief General Managers in
raising of capital funds. The Committee consists of
charge of Risk, Compliance and Audit.
MD & CEO and Executive Directors.
The Committee has held 2 meetings during the year
Ms. A. Manimekhalai, Managing Director & CEO of the 2022-23.
Bank chaired the Committee.
 Integrated Annual Report
206 2022-23

5.15 Credit Approval Committee-I (CAC-I) • Chief General Manager / General Manager in-
charge of the Finance/Chief Financial Officer and
5.15.1 Composition:
• Chief General Manager / General Manager in-
As per clause 13A of the Nationalised Banks
charge of the Risk Management
(Management and Miscellaneous Provisions) Scheme,
1970, the Bank has constituted the Credit Approval Ms. A. Manimekhalai, Managing Director & CEO of the
Committee-I. The Committee shall exercise the powers Bank chaired the Committee.
of the Board in respect of any single credit proposal
upto `800 crore (in case of A & above externally rated 5.15.2 Functions:
accounts having valid rating) and up to ` 600 crore in
All credit related matters including approval/review-
case of other accounts and group exposure upto ` 800
renewal, miscellaneous requests, interest concessions,
crore and in case exposure exceeds such limits, it shall
compromise/write off proposals, approval of capital
be considered by the Management Committee of the
and revenue expenditure, acquisition and hiring of
Board.
premises, etc. within its delegated authority are being
The composition of CAC-I is as under: put up before the CAC-I for approval.
• Managing Director & CEO The Committee has held 32 meetings during the year
2022-23.
• Executive Directors
5.16The details of Directors, their attendance in the Board
• Chief General Manager / General Manager in- and other Committee Meetings during the year is
charge of the Credit appended at the end of this Corporate Governance
Report.

6. GENERAL BODY MEETINGS

The details of the General Body Meetings of the Shareholders held during last 3 years are given below:

Nature of Meeting Date & Time Venue Special Resolution

18 Annual
th
4 August, 2020
th
Central Office, Union Bank, To set off the Bank’s accumulated losses
General Meeting at 11:00 a.m. Mumbai through VC or OAVM of `32758,49,47,263.10 (Rupees Thirty Two
Thousand Seven Hundred Fifty Eight Crores
Forty Nine Lacs Forty Seven Thousand Two
Hundred Sixty Three and Ten Paise only) as
at 31st March, 2020 by utilizing the balance
standing to the credit of Share Premium
Account of Bank as on the date of set off
and take the same into account during
current Financial Year 2020-21.
Extraordinary 30 December,
th
Central Office, Union Bank, ¬To raise Capital through FPO/Rights /
General Meeting 2020 at 11:00 Mumbai through VC or OAVM QIP/Preferential allotment etc. by way of
a.m. an offer document / prospectus or such
other document, in India or abroad, such
number of equity shares, upto `6,800 crore
(including premium, if any).
Extraordinary 25 June, 2021
th
Central Office, Union Bank, Election of ONE Shareholder Director was
General Meeting at 11:00 a.m. Mumbai through VC or OAVM the only agenda at the Meeting and the
(Cancelled) Bank received only ONE valid nomination
and therefore the meeting was cancelled
as per Reg.66 of the Union Bank of India
(Shares and Meetings) Regulations, 1998,
as amended.
Integrated Annual Report
2022-23 207

Nature of Meeting Date & Time Venue Special Resolution

19th Annual 10th August, 2021 Central Office, Union Bank, ¬To raise Capital through FPO/Rights /
General Meeting at 11:00 a.m. Mumbai through VC or OAVM QIP/Preferential allotment etc. by way of
an offer document / prospectus or such
other document, in India or abroad, such
number of equity shares, upto `3,500 crore
(including premium, if any).

Strategy, Model & Capitals

20th Annual 30th June, 2022 Central Office, Union Bank, Raising of Capital of the Bank by way of
General Meeting at 11:00 a.m. Mumbai through VC or OAVM issuance of fresh Equity Shares and / or by
issuance of Additional Tier-1 / Tier-2 Capital
as per BASEL III Guidelines for an amount
not exceeding ` 8100 crore.

7. DISCLOSURES additional fees for chairing the meeting of the Board

and for chairing the meeting of committees of the
The Bank is governed by the Banking Regulations
Board, as decided by the Board of Directors subject to
Act 1949, Banking Companies (Acquisition and overall ceiling of ₹25 lakhs per director per annum.
Transfer of Undertakings) Act, 1970, Nationalised
The Board of Directors in its meeting held on July 29,
Banks (Management & Miscellaneous Provisions)
2020, approved payment sitting fees of `70,000 with

Notice
Scheme, 1970, SEBI (Listing Obligations & Disclosure effect from April 1, 2021 for attending per meeting of
Requirements) Regulations, 2015 and guidelines/ the Board and `35,000 for attending per meeting of the
circulars issued by RBI, GoI and SEBI. committees of the Board. Additional fees of `20,000
for chairing per meeting of the Board and `10,000 for
It is stated that the Bank is complying with the applicable chairing per meeting of committees of the Board was
mandatory requirements of Listing Regulations. also approved.
The above information is also available on Bank’s website
Compliance with respect to non-mandatory
under following link: http://www.unionbankofindia.
requirements is also given in this report. The other

Statutory Reports
co.in/english/Making-payment.aspx
disclosure requirements stipulated by the Listing
Regulation are as under: Travelling & Halting Allowance:

7.1 Remuneration of Directors: In addition to fees to which a director is entitled to be

paid, every such director travelling in connection with
Managing Director & CEO and Executive Directors
the work of the Bank shall be reimbursed his Travelling
are being paid remuneration and reimbursement of
& Halting expenses, if any, in terms of the provisions
traveling & halting expenses as per the rules framed
of clauses 17 of the Nationalized Banks (Management
by Government of India in this regard. Other terms
and Miscellaneous Provisions) Scheme, 1970, on such
and conditions of the appointment of whole-time
basis as may be fixed by Central Government from time
directors are as per clause 8 of the Nationalised Banks

Financial Statements
to time.
(Management and Miscellaneous Provisions) Scheme,
1970. The details of the same are given in the notes to 7.2 Disclosure on Material Significant Related Party
accounts. Transactions:
Sitting Fees: Other than those in the normal course of banking
The Directors appointed under clause (e), (f), (g), (h) business, the Bank has not entered into any materially
and (i) of sub-section (3) of section (9) of the Banking significant Related Party Transaction that has potential
Companies Act are entitled to sitting fees as mentioned conflict with interests of the Bank at large.
below in accordance with circular F.No.15/1/2011- It is an established practice in the Bank that Directors
BO.I dated August 30, 2019 issued by Department of do not take part in the deliberations of the Board and
Financial Services, Ministry of Finance, Government other Sub-Committees of the Board, when matters
of India, in terms of clause 17(1) of the Nationalised relating to them or to their relatives/firms/companies in
Banks Scheme for attending meetings of the Board and which they are interested are discussed.
meetings of the committees of the Board, along with
 Integrated Annual Report
208 2022-23

7.3 Disclosure of Pecuniary Relationship or Transactions: The Bank didn’t have any materially significant related
party transactions that had potential conflict with the
The Bank’s Non-Executive Directors do not have any interest of the Bank at large during the FY 2022-23.
pecuniary relationship or transaction with the Bank
except to the extent of transactions done in the normal 7.9 Dividend Distribution Policy:
course of banking business and the sitting fees paid to
The Bank has formulated Policy for declaration of
them by the Bank for their attendance in the Board and
dividend for the year 2022-23. The said policy can be
Committee meetings of the Board of the Bank.
accessed via following link
7.4 Proceeds from Public issues, Right issues, Preferential
https://www.unionbankofindia.co.in/english/aboutus-
issues etc.:
policiescodes.aspx
During the year 2022-23, the Bank has issued Basel III
Compliant Tier 2 Bonds to the tune of ` 2200 crore and 7.10 Takeover Code:
Basel III Compliant AT 1 Bonds to the tune of ` 1983
The Bank has also complied from time to time with the
crore. The said proceeds were utilized for augmenting
provisions of SEBI (Substantial Acquisition of Shares
the Bank’s Tier 1 and Tier 2 Capital in terms of Basel
and Takeovers) Regulations, 2011 as amended.
III guidelines of RBI and to enhance the long-term
resources of the Bank. 7.11 Compliance with SEBI (Prohibition of Insider Trading)
Regulations, 2015:
7.5 Penalties or Strictures:

No penalties or strictures were imposed on the Bank In pursuance of the Regulations, the Bank has
by any of the Stock Exchanges, SEBI or any Statutory formulated Code of Conduct for Prevention of Insider
Authority on any matter relating to Capital Markets Trading for Designated Employees and Directors for
during the last three years. dealing in Shares of the Bank. Various forms have been
7.6 Whistle Blower Policy: designed to receive periodical information from the
Designated Employees and the Directors of the Bank,
The Bank has put in place the Whistle Blower Policy and
as required in terms of these Regulations. Further, the
same can be accessed via following link –
Trading Window for dealing in shares of the Bank was
https://www.unionbankofindia.co.in/english/aboutus- kept closed for the Directors and Designated Employees
policiescodes.aspx. of the Bank as per the following details:
The Audit Committee of the Board periodically reviews
Dates of closure of
the functioning of the said policy. It is further stated trading window
Purpose of closure
that no employee has been denied access to the Audit
31st March 2022 to Declaration of Financial
Committee of the Board.
15th May 2022 Results for the year ended
7.7 Policy for determining Material Subsidiary: 31st March 2022.
30th June 2022 to 28th Declaration of Financial
In compliance with Regulation 46(2)(h) of SEBI (Listing
July 2022 Results for the quarter ended
Obligations & Disclosure Requirements) Regulations,
30th June 2022.
2015, the Bank has formulated Policy for determining
1st October 2022 to Declaration of Financial
Material Subsidiary and same can be accessed via
22nd October 2022 Results for the quarter ended
following link https://www.unionbankofindia.co.in/
30th September 2022.
english/aboutus-policiescodes.aspx
1st January 2023 to Declaration of Financial
However as on date there is no material subsidiary of 22nd January 2023 Results for the year ended
the Bank. 31st December 2022.
7.8 Related Party Transaction Policy:
7.12 Management Discussion and Analysis:
The Bank has formulated Related Party Transaction
Policy on dealing with Related Party Transactions. The same has been given separately in the Annual
The said policy can be accessed via following link Report.
https://www.unionbankofindia.co.in/english/aboutus-
policiescodes.aspx.
Integrated Annual Report
2022-23 209

7.13 Compliance Reports on Corporate Governance: Women at Workplace (Prevention, Prohibition and
Redressal) Act, 2013:
The Bank has submitted quarterly compliance reports
on Corporate Governance in the specified format to BSE a. number of complaints filed during the financial year
Ltd (BSE) & National Stock Exchange of India Ltd (NSE) 2022-23 : 17 (Seventeen)
within stipulated timeline.
b. number of complaints disposed of during the
7.14 Dissemination of Information on Website: financial year 2022-23 : 16 (Sixteen)

Strategy, Model & Capitals

The Bank has disseminated the required information c. number of complaints pending as on end of the
under clauses (b) to (i) of sub-regulation 46 of Listing financial year 2022-23 : 1 (One)
Regulations on its website www.unionbankofindia.
co.in. 7.17 Branch Network:
7.15 Details of Fees paid to Statutory Auditors:
The branch network of our Bank is widely spread
Total fees for all services paid by the Bank and its across the country with 8577 branches and 3 overseas
subsidiaries, on a consolidated basis, to Statutory branches (Hongkong, Sydney, Dubai DIFC) as on March
Auditor during Financial Year 2022-23 is ` 74.49 Crore. 31, 2023 out of these 58 percent of the branches are in
rural and semi-urban centers.
7.16 Disclosures in relation to the Sexual Harassment of

Branches Network As on 31.03.2023

Notice
Rural Semi-Urban Urban Metro Foreign Total
No. Of Branches 2545 2458 1755 1819 3 8580
Branches (%) 30 29 20 21 -- 100

Statutory Reports
Financial Statements
 Integrated Annual Report
210 2022-23

7.18 Credit Rating

List of all credit ratings obtained along with revisions during the financial year 2022-23, for all debt instruments or any
fixed deposit programme or any scheme or proposal of the Bank involving mobilization of funds, whether in India or
abroad:

Basel III Certificates of

Rating Agency Additional Tier 1 Tier 2 Deposits Outlook
Brickwork BWR AA BWR AA+ - Stable
CRISIL CRISIL AA CRISIL AA+ - Stable
CARE CARE AA CARE AA+ - Positive
India Ratings IND AA IND AA+ IND A1+ Stable
ICRA Ltd - ICRA AA+ ICRA A1+ Stable

FITCH - Rating report dated October 21, 2022:

Category Rating
Long Term Issuer default Rating (IDR) “BBB-” Outlook Stable
Short Term Issuer Default Rating (IDR) F3
Viability Rating (VR) b

Vide its Rating Rationale dated April 28, 2023, Fitch Ratings assigned Ex-Government Support ‘xgs’ ratings to banks
in the Asia-Pacific (APAC) region. Ex-Government Support ratings, where an ‘xgs’ suffix is added to the corresponding
existing rating assigned to Banks that are not rated as public-sector policy Banks and whose Long-Term Issuer Default
Ratings (IDRs) incorporate assumptions of Government support.

In line with the Bank Ex-Government support Ratings criteria, Union Bank of India has been assigned a Long-Term
Foreign currency IDR (xgs) at the level of its existing Viability Ratings (VR).

Standard & Poor’s- Rating Date: January 31, 2023

Category Rating
Issuer Credit Rating
(Long term/ Short Term) BB+/Stable/B
Standalone Credit Profile (SACP) bb-
Bank's Senior Unsecured Notes
(Long term) BB+
Outlook: Stable

7.19 Details of Material Subsidiaries of the Bank: None of the Subsidiaries of the Bank is a Material Subsidiary.

8. MEANS OF COMMUNICATION
The quarterly, half-yearly and annual financial results of the Bank were published in leading newspapers including
Business Standard (English), The Free Press Journal (English), Navbharat (Hindi) and Navshakti (Marathi). The results
are simultaneously displayed on the Bank’s website www.unionbankofindia.co.in Similarly, the press releases issued by
the Bank, related presentations, shareholding pattern, etc. are also simultaneously placed on the Bank’s website under
the head “Investor Relations”.
Integrated Annual Report
2022-23 211

9. SHAREHOLDERS’ INFORMATION
9.1 Financial Year – 1st April 2022 to 31st March 2023
9.2 Listing of Equity Shares & Bonds - The Bank’s equity shares are listed on BSE and NSE and Bonds listed on NSE. The
details of stock scrip code are as follows:

Name Code
BSE Limited (BSE), 532477
Phiroze Jeejeebhoy Towers,

Strategy, Model & Capitals

Dalal Street, Mumbai - 400 001
National Stock Exchange of India Limited (NSE), Exchange Plaza, Plot No. C/1, G Block, UNIONBANK-EQ
Bandra-Kurla Complex, Bandra (E), Mumbai-400 051

The Annual Listing Fee for Equity Shares for the financial year 2023-24 has been paid to both the Stock Exchanges on
21st April, 2023.

The Bank has issued and allotted unsecured Non-Convertible taxable, subordinated Basel III complaint Tier II and additional
Tire I bonds in the nature of debentures from time to time. The relevant details thereof as on 31.03.2023 are as under:

Sr. Amount Date of Maturity Coupon Rate

ISIN Bond Description Series
No. (in ` Cr.) Allotment Date (%)(p.a.)
1 INE692A08029 Basel III Compliant Bond Series 1,000 15-Sep-16 Perpetual 9.50

Notice
Additional Tier I XX
2 INE692A08110 Basel III Compliant Bond Series 500 15-Dec-20 Perpetual 8.73
Additional Tier I XXVII
3 INE692A08128 Basel III Compliant Bond Series 1,000 11-Jan-21 Perpetual 8.64
Additional Tier I XXVIII
4 INE692A08136 Basel III Compliant Bond Series 205 29-Jan-21 Perpetual 8.73
Additional Tier I XXIX
5 INE692A08169 Basel III Compliant Bond Series 2,000 22-Nov-21 Perpetual 8.70
Additional Tier I XXXII
6 INE692A08177 Basel III Compliant Bond Series 1,500 20-Dec-21 Perpetual 8.40

Statutory Reports
Additional Tier I XXXIII
7 INE692A08185 Basel III Compliant Bond Series 1,500 02-Mar-22 Perpetual 8.50
Additional Tier I XXXIV
8 INE692A08193 Basel III Compliant Bond Series 1,320 25-Jul-22 Perpetual 8.69
Additional Tier I XXXV
9 INE692A08227 Basel III Compliant Bond Series 663 23-Dec-22 Perpetual 8.40
Additional Tier I XXXVII
10 INE692A09266 Basel III Compliant Bond Series 2,000 22-Nov-13 22-Nov-23 9.80
Tier II XVII-A
11 INE692A08045 Basel III Compliant Bond Series 750 24-Nov-16 24-Nov-26 7.74
Tier II XXII

Financial Statements
12 INE112A08051 Basel III Compliant Bond Series 1,000 8-Nov-19 8-Nov-29 8.93
Tier II II
13 INE692A08094 Basel III Compliant Bond Series 1,000 16-Sep-20 16-Sep-30 7.42
Tier II XXV
14 INE692A08102 Basel III Compliant Bond Series 1,000 26-Nov-20 26-Nov-35 7.18
Tier II XXVI
15 INE692A08144 Basel III Compliant Bond Series 850 24-Jun-21 24-Jun-31 7.19
Tier II XXX
16 INE692A08151 Basel III Compliant Bond Series 1,150 9-July-21 9-July-36 7.25
Tier II XXXI
17 INE692A08219 Basel III Compliant Bond Series 1,500 29-Nov-22 29-Nov-37 7.85
Tier II XXXVI-A
18 INE692A08201 Basel III Compliant Bond Series 700 29-Nov-22 29-Nov-32 7.80
Tier II XXXVI-B
Total 19,638.00
 Integrated Annual Report
212 2022-23

9.3 Dividend:
The Board of Directors has recommended a dividend of ` 3 per equity share of face value `10/-for FY 2022-23.

9.4 Particulars of AGM:

Board Meeting for considering Accounts Saturday, 6th May, 2023
Date, Time & Venue of AGM Friday, 4th August, 2023 at 11.00 AM through Video Conferencing (VC) or
Other Audio-Visual Means (OAVM) facility at Central Office, Union Bank
of India, Mumbai (the deemed venue of the Meeting)
Dates of Book Closure Saturday, 29th July, 2023 to Friday, 4th August, 2023 (both days inclusive)
Opening & Closing of E-Voting Tuesday, 1st August, 2023 (9:00 AM IST) to
Thursday, 3rd August, 2023 (5:00 PM IST)

9.5 Financial Calendar:

The tentative calendar for declaration of results for the financial year 2023-24 is given below:

Financial Results Likely release of results

For the quarter ending June 30, 2023 By August 10, 2023
For the quarter ending September 30, 2023 By November 10, 2023
For the quarter ending December 31, 2023 By February 10, 2024
For the year ending March 31, 2024 By May 15, 2024

9.6 Share Transfer System and Redressal of Investors’ The Shareholder / claimant shall submit duly filled
Grievances: up Form ISR-4 (ISR-5 for Transmission) and the RTA /
The Bank has constituted the Share Transfer Committee listed entity shall, after processing the service requests,
of the Board to consider the transfer of shares and
other related matters. In terms of SEBI guidelines dated issue a “Letter of Confirmation” instead of physical
08.06.2018 & SEBI Press Release dated 03.12.2018, certificates to the shareholder / claimant within 30 days
physical transfer of shares is not permitted after of such requests after removing objections, if any.
31.03.2019, thus, shareholders are requested to open
a demat account and dematerialise their physical The Letter of Confirmation shall be valid for 120
shareholding.
days from the date of its issuance within which the
Further, in the interest of investors and with a view shareholder / claimant shall make a request to the
to enhance ease of dealing in securities markets by depository participant for dematerializing the said
investors, SEBI, vide its circular dated 25.01.2022,
decided that the listed entities shall henceforth issue the securities.
shares in dematerialized mode only while processing
the following service requests: The RTA shall issue a reminder after the end of 45 days
and 90 days from the date of issuance of Letter of
a. Issue of duplicate securities certificate; Confirmation, informing the securities holder / claimant
to submit the demat request.
b. Claim from Unclaimed Suspense Account;
The RTA shall retain the physical share certificate as per
c. Renewal / Exchange of securities certificate;
the existing procedure and deface the certificate with
d. Endorsement; a stamp “Letter of Confirmation Issued” on the face /
reverse of the certificate, subsequent to processing the
e. Sub-division / Splitting of securities certificate;
service request.
f. Consolidation of securities certificates / folios;
Depository Participant shall generate the demat request
g. Transmission; on the basis of Letter of Confirmation and forward the
same to the Listed entity / RTA for processing the demat
h. Transposition; request.
Integrated Annual Report
2022-23 213

If demat request is not received within 120 days of the recording of shareholders’ requests, solution of
Letter of Confirmation, shares shall be credited to the shareholders’ grievances amongst other activities
Suspense Escrow Demat Account of the entity. connected with the issue of shares. The Investors may
lodge their transfer deeds / requests / complaints with
In compliance with SEBI (Listing Obligations &
the RTA at the address mentioned below.
Disclosure Requirements) Regulations, 2015, the
Bank has appointed KFin Technologies Limited as The Bank has also established Investor Services
its Registrars and Share Transfer Agent (RTA) with Division at its Central Office, Mumbai. The Shareholders

Strategy, Model & Capitals

a mandate to process transfer of Shares, dividend, may contact Company Secretary, Investor Services
Division for any of their requests/complaints.

Registrar & Share Transfer Agent (RTA) Debenture Trustee Company Secretary
KFIN Technologies Limited IDBI Trusteeship Services Limited Investor Services Division
Unit: Union Bank of India Asian Building, Ground Floor, 17, R. Union Bank of India
Selenium, Tower B, Plot 31-32, Kamani Marg, Ballard Estate, 12th Floor, Central Office,
Gachibowli, Financial District, Mumbai – 400001 239, Vidhan Bhavan Marg,
Nanakramguda, Hyderabad - 500032 Tel- (022) 40807001 Nariman Point, Mumbai-400 021.
Tel No: 040- 67162222 Fax- (022) 66311776 Tel-(022) 2289 6636
Fax No: 040 – 23001153 Email: Fax-(022) 22025238

Notice
Email: [email protected] [email protected], E-mail:
[email protected] [email protected]

9.7 Other communications:

In addition to timely responses to the queries of the (CDSL) for dematerialisation of the Bank’s shares.
shareholders, the Bank proactively sends a half yearly The ISIN code allotted to the Bank’s Equity Shares is
communication to the shareholders to promote good INE692A01016.
investors’ relations.

Statutory Reports
Therefore, it is requested that the shareholders holding
The Bank sent Half-yearly Communication through email the shares in physical mode may get their shares
to all the shareholders whose email id is registered with dematerialized in their own interest as it will save them
the Bank / DP. from the need of safe custody of the share certificates
which at times may lead to loss/mutilation. Besides,
9.8 Dematerialisation of shares:
this would also provide them instant liquidity as the
The Bank has entered into agreements with both the
shares of the Bank is traded in demat form. This would
Depositories viz. National Securities Depositories Ltd.
also result in easy and faster collection of dividend
(NSDL) and Central Depository Services (India) Ltd.
payments.

Financial Statements
Particulars of shares in Demat and Physical form held by the shareholders as of 31.03.2023 are as under:

Category No of Shareholders No. of Shares % of shareholding

Physical 82,760 1,56,69,245 0.23
Demat
NSDL 2,99,080 90,05,79,727 13.18
CDSL 4,01,711 591,84,98,494 87.31
TOTAL 7,83,551 683,47,47,466 100.00
 Integrated Annual Report
214 2022-23

Note: Entire Shareholding of the Promoter of the Bank is in Dematerialized Form.

Further, in pursuance of the circular issued by SEBI, a practicing Company Secretary has also conducted reconciliation
of Share Capital Audit on a quarterly basis. During the course of reconciliation of Share Capital audit, no discrepancy in
updation/maintenance of the Register of Members or processing of demat requests was found and the capital held in
physical mode and demat mode tallied with the issued capital.

The Bank has sent various communications to its shareholders holding shares in physical form to dematerialize the
same. As a result, 1796 shareholders dematerialized their 4,07,085 shares held in physical form during the year 2022-
23.

9.9 Market Price, Volume of shares traded in Stock Exchanges:

BSE NSE BSE SENSEX
Months High Low Volume High Low Volume
High Low
(`) (`) (Nos.) (`) (`) (Nos.)
Apr-2022 44.8 37.85 249.14 44.85 37.8 1,969.83 60845.1 56009.07
May-2022 39.1 33.55 189.62 39 33.5 1,776.24 57184.21 52632.48
Jun-2022 39.9 34.1 136.85 40 34.1 1,484.42 56432.65 50921.22
Jul-2022 38.8 34 112.27 38.8 34 1,116.11 57619.27 52094.25
Aug-2022 43.7 38.05 159.35 43.7 38 1,672.64 60411.2 57367.47
Sep-2022 48.45 41.75 246.10 48.45 41.8 2,361.02 60676.12 56147.23
Oct-2022 54.7 42.6 256.67 54.7 42.6 2,290.17 60786.7 56683.4
Nov-2022 83.7 51.3 604.28 83.7 51.2 7,351.18 63303.01 60425.47
Dec-2022 96.4 66.75 775.58 96.4 66.7 9,160.44 63583.07 59754.1
Jan-2023 83.85 72.15 378.79 83.8 72.25 3,609.20 61343.96 58699.2
Feb-2023 79.7 65.35 219.21 79.7 65.35 1,863.51 61682.25 58795.97
Mar-2023 75.6 60.32 320.73 75.6 60.35 2,699.07 60498.48 57084.91
Closing Price as on 65.37 66.55 -
31.03.23
Market Cap `44,678 crore ` 45,485 crore -
Integrated Annual Report
2022-23 215

Strategy, Model & Capitals

Notice
9.10 Distribution of Shareholding:

As of 31.03.2023 As of 31.03.2022

Shareholding No. of No. of

% to No. of % to % to No. of % to
share- share-
total shares total total shares total
holders holders
Upto 500 665546 84.94 74079944 1.08 642618 82.42 76427698 1.12
501 to 1000 52924 6.75 40433982 0.59 58277 7.47 45172534 0.66
1001 to 2000 26956 3.44 40668815 0.60 30157 3.87 45971773 0.67

Statutory Reports
2001 to 3000 15910 2.03 40039611 0.59 20276 2.60 51007654 0.75
3001 to 4000 7608 0.97 26522967 0.39 9745 1.25 34019956 0.50
4001 to 5000 4329 0.55 20258665 0.30 5544 0.71 26009371 0.38
5001 to 10000 6522 0.83 46280143 0.68 8289 1.06 59067045 0.86
10001 & above 3756 0.48 6546463339 95.78 4793 0.62 6497071435 95.06
Total 783551 100 6834747466 100 779699 100.00 6834747466 100.00

The face value of Bank’s per Equity share is `10/-.

Financial Statements
 Integrated Annual Report
216 2022-23

9.11 Shareholding pattern:

The Shareholding Pattern of the Bank’s shares as of 31.03.2023 vis-a-vis 31.03.2022 is as follows:

As of 31.03.2023 As of 31.03.2022
Category of shareholder No. of shares No. of shares
% to total holding % to total holding
held held
Promoter
Government of India 5,70,66,60,850 83.49 5,70,66,60,850 83.49
Public
Institutional Investors
Mutual Funds & UTI 155330626 2.27 6,42,39,168 0.94
Banks, Financial Institutions, Insurance 410675574 6.01 4178,25,501 6.11
Companies (Central/ State Govt.
Institutions)
FIIs & Foreign Mutual Funds 8,07,63,510 1.18 8,07,63,510 1.18
OTHERS
Private Corporate Bodies 24023255 0.35 4,89,41,688 0.72
Indian Public 416682742 6.1 50,84,00,256 7.44
NRIs/OCBs/Qualified Foreign Investor 7470165 0.11 79,16,493 0.12
Total 6834747466 100.00 6,43,47,47,466 100.00

9.12 List of Top 10 Shareholders of the Bank:

The list of top 10 shareholders of the Bank as on 31.03.2023 is as follows:

Sr. No. Name Shares % To capital

1 PRESIDENT OF INDIA 5706660850 83.495
2 LIFE INSURANCE CORPORATION OF INDIA 385692691 5.643
3 HDFC TRUSTEE COMPANY LTD - A/C HDFC MID - 70861014 1.037
CAPOPPORTUNITIES FUND
4 QUANT MUTUAL FUND - QUANT ACTIVE FUND 44537000 0.652
5 NIPPON LIFE INDIA TRUSTEE LTD-A/C NIPPON INDIA ETF NIFTY PSU 16797434 0.246
BANK BEES
6 VANGUARD EMERGING MARKETS STOCK INDEX FUND, A SERIES OF 15442120 0.226
VANGUARD INTERNATIONAL EQUITY INDEX FUNDS
7 VANGUARD TOTAL INTERNATIONAL STOCK INDEX FUND 14900616 0.218
8 KOTAK PSU BANK ETF 11752304 0.172
9 BNP PARIBAS ARBITRAGE - ODI 10605382 0.155
10 REKHA RAKESH JHUNJHUNWALA 8400000 0.123

9.13 Unclaimed/Unpaid Dividend:

The amount of dividend that remained unclaimed for a period of seven years from the date of transfer of dividend to the
Unpaid Dividend Account shall be transferred to the Investor Education and Protection Fund (IEPF). The proposed date
of transfer for various dividend accounts as on date are given below:
Integrated Annual Report
2022-23 217

Dividend Proposed Date

Sr. Unpaid Dividend Bank Financial Balance as on
Account Rate of dividend of Transfer to
No Account No. Year 31.03.2023 (`)
pertaining to IEPF
1 UBI 317901090049775 2015-16 `1.95 per share 08-08-23 1,02,50,036.15
2 E-AB 117911100001802 2015-16 `0.50 per share 31-08-23 57,60,465.42
3 UBI 066221090000005 2021-22 `1.90 per share 11.08.29 3,61,25,128.59
TOTAL 5,21,35,630.16

Strategy, Model & Capitals

The shareholders who have not claimed the above dividends till now are requested to make a claim at the earliest to
the Registrar & Share Transfer Agent or the Investor Services Division of the Bank. A format of indemnity bond in this
respect is available on the website of the bank (www.unionbankofindia.co.in).

9.14 Unclaimed Shares:

a) In Physical Form:
As per Schedule VI of the SEBI (Listing Obligations & Disclosure Requirements), 2015 i.e. Manner of Dealing with
Unclaimed Shares, the Bank opened a Unclaimed Suspense Account in March, 2012 after completion of procedure
as instructed by SEBI. The shares issued in physical form during IPO of the Bank in the year 2002, which are still
unclaimed are controlled in this account. The details of the shares lying in this account are as follows:

Notice
Particulars No. of shareholders No. of shares
Balance as of 01.04.2022 lying in Demat Suspense Account 4 600
Shareholders approached for transfer during the financial year 2022-23 NIL NIL
Shareholders to whom shares were transferred during the year 2022-23 NIL NIL
Balance as on 31.03.2023 lying in Demat Suspense Account 4 600

b) In Demat Form:

Statutory Reports
As per Schedule VI of the SEBI (Listing Obligations & Disclosure Requirements), 2015 i.e. Manner of Dealing with
Unclaimed Shares, the Bank has opened a Demat Suspense Account in March 2010 after completion of procedure
as instructed by SEBI. The shares allotted to the applicants at the time of Bank’s FPO during 2006 but not credited
to their respective demat account due to some technical reasons are controlled in this account. The details of the
shares lying in this account are as follows:

Particulars (UBI-FPO) No. of shareholders No. of shares

Balance as of 01.04.2022 lying in Demat Suspense Account 216 26414
Shareholders approached for transfer during the financial year 2022-23 0 0

Financial Statements
Shareholders to whom shares were transferred during the year 2022-23 0 0
Balance as on 31.03.2023 lying in Demat Suspense Account 216 26,414

Particulars (E-AB and E-CB) No. of shareholders No. of shares

Balance as of 01.04.2022 lying in Demat Suspense Account 175 17,431
Shareholders approached for transfer during the financial year 2022-23 7 4342
Shareholders to whom shares were transferred during the year 2022-23 7 4342
Balance as on 31.03.2023 lying in Demat Suspense Account 168 13089

The voting rights on above- mentioned all shares shall remain frozen till the rightful owner of these shares claims
the same to their respective Demat Account.
 Integrated Annual Report
218 2022-23

10. EXTENT OF COMPLIANCE WITH DISCRETIONARY REQUIREMENTS OF LISTING REGULATIONS

Sr.
Non-Mandatory Requirement Extent of Compliance
No
1. Board Complied with.
A non-executive Chairman may be entitled to maintain
a Chairperson’s Office at the listed entity’s expense
and also allowed reimbursement of expenses incurred
in performance of his /her duties.
2. Shareholder Rights Half-yearly communication is sent by way of an email
A half-yearly declaration of financial performance to all the shareholders who registered their email IDs
including summary of the significant events in with the Bank / RTA of the Bank.
last six months, may be sent to each household of
shareholders.
3. Modified opinion(s) in Audit Report There has been no modified opinion in audit report
The listed entity may move towards a regime of during the year under review.
financial statements with unmodified audit opinion.
4. Reporting of Internal Auditor As per the Board approved Risk Based Internal Audit
The Internal auditor may report directly to the Audit Policy, the Internal Auditors report directly to the Chief
Committee. General Manager, Audit & Inspection Department.
However, details with latest position of Flash Reports
& Special Reports given by internal auditors are placed
before the Audit Committee of the Board.

For and on behalf of the board of directors

Place: Mumbai (Srinivasan Varadarajan)

Date: 23.06.2023 Chairman
Integrated Annual Report
2022-23 219

Strategy, Model & Capitals

DECLARATION ON CODE OF CONDUCT

Notice
The Board has laid down a Code of Conduct for all the Board Members and Senior Management of the Bank and the same
is posted on the website of the Bank. The Directors and Senior Management have affirmed compliance with the Code of
Conduct for the financial year 2022-23.

For Union Bank of India

Statutory Reports
Place: Mumbai (A. Manimekhalai.)
Date: 06.06.2023 Managing Director & Chief Executive Officer

Financial Statements
 Integrated Annual Report
220 2022-23

Independent Auditors’ Certificate on Corporate Governance

To The Members of Union Bank of lndia

We have examined the compliance of conditions of Corporate Governance by Union Bank of India, for the year ended on
March 31, 2023, as stipulated in the relevant provisions of Securities and Exchange Board of India (Listing Obligations &
Disclosure Requirements) Regulations, 2015 (‘Listing Regulations’) amended from time to time as referred to in Regulation
15(2) of the Listing Regulations for the year April 01, 2022 to March 31, 2023.

The compliance of conditions of Corporate Governance is the responsibility of the Management. Our examination was
carried out in accordance with the Guidance Note on Corporate Governance, issued by the Institute of Chartered Accountants
of India (ICAI) and was limited to procedures and implementation thereof, adopted by the Bank for ensuring the compliance
of the conditions of Corporate Governance. It is neither an audit nor an expression of opinion on the financial statement of
the Bank.

Based on our examination of relevant records, in our opinion and to the best of our information and according to the
explanations given to us, we certify that the Bank has complied with the conditions of Corporate Governance as stipulated
in the above-mentioned Listing Regulations, as applicable for the year ended March 31, 2023.

We further state that such compliance is neither an assurance as to the future viability of the Bank nor the efficiency or
effectiveness with which the Management has conducted the affairs of the Bank.

This certificate is issued with reasonable assurance as mentioned in Independent Auditor’s Report for various certificates
issued during the Statutory Audit of Union Bank of India for the Financial Year 2022-23.
For M/s R G N Price & Co. For M/s SARDA & PAREEK LLP For M/s C R Sagdeo & Co.
Chartered Accountants Chartered Accountants Chartered Accountants
FRN 002785S FRN 109262W/W100673 FRN 108959W

CA P. M. Veeramani CA Niranjan Joshi CA Sachin V. Luthra

Partner Partner Partner
Membership No.023933 Membership No.102789 Membership No. 109127
UDIN: 23023933BGVFVB8763 UDIN: 23102789BGWREB5291 UDIN: 23109127BGQVHR6655

For M/s P V A R & Associates For Mis Gopal Sharma & Co For M/s N B S & Co.
Chartered Accountants Chartered Accountants Chartered Accountants
FRN 005223C FRN002803C FRN 110100W

CA Ruchi Agarwal CA Gautam Sharma CA Pradeep J. 046940

Partner Partner Partner
Membership No. 504134 Membership No. 079224 Membership No. 046940
UDIN: 23504134BGWTPP4106 UDIN: 23079224BGTKQ02274 UDIN: 23046940BGPTTS7892

Place: Mumbai
Date :May 06, 2023
Integrated Annual Report
2022-23 221

Form No. MR-3

Secretarial Audit Report
For the period 01-04-2022 to 31-03-2023
[Pursuant to Regulation 24A of the SEBI (LODR) Regulations, 2015, read with
SEBI Circular CIR/CFD/CMD1/27/2019 Dated February 08, 2019]

To,
The Members,

Strategy, Model & Capitals

Union Bank of India
Central Office, Mumbai

We have conducted the secretarial audit of the compliance of applicable statutory provisions and the adherence to good
corporate practices by Union Bank of India (hereinafter called “the Bank”). Secretarial Audit was conducted in a manner that
provided us a reasonable basis for evaluating the corporate conducts/statutory compliances and expressing our opinion
thereon.

Based on our verification of the Bank’s books, papers, minute books, forms and returns filed and other records maintained
by the Bank and also the information provided by the Bank, its officers, agents and authorized representatives during the
conduct of secretarial audit, we hereby report that in our opinion, the Bank has, during the audit period covering 1st April,
2022 to 31st March, 2023 complied with the statutory provisions listed hereunder and also that the Bank has proper Board-
processes and compliance-mechanism in place to the extent, in the manner and subject to the reporting made hereinafter:

Notice
We have examined the books, papers, minute books, forms and returns filed and other records maintained by the Bank for
the audit period April 01, 2022 to March 31, 2023 according to the provisions of:

i. The Banking Companies (Acquisition & Transfer of Undertakings) Act, 1970;

ii. The Nationalised Banks’ (Management & Miscellaneous Provisions) Scheme, 1970;
iii. The Banking Regulation Act, 1949 & Banking Regulation (Companies) Rules, 1949 (as amended from time to time);
iv. The Reserve Bank of India Act,1945 and Master Directions, Notifications and Guidelines etc., issued by RBI from time to
time.

Statutory Reports
v. The Union Bank of India (Shares and Meetings) Regulations, 1998;
vi. The Depositories Act, 1996 and the Regulations and Bye-laws Framed there under;
vii. Foreign Exchange Management Act, 1999 and the rules and regulations made thereunder to extent of Foreign Direct
Investment, Overseas Direct Investment and External Commercial borrowing;
viii. The following Regulations and Guidelines prescribed under the Securities and Exchange Board of India Act, 1992 (‘SEBI
Act’):-
a) The Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011;

b) The Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015 ;

c) The Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018; (Not Financial Statements
applicable to the Bank during the period under review)

d) The Securities and Exchange Board of India (Share Based Employee Benefits and Sweat Equity) Regulations, 2021;
(Not applicable to the Bank during the period under review)

e) The Securities and Exchange Board of India (Issue and Listing of Non-Convertible Securities) Regulations, 2021;

f) The Securities and Exchange Board of India (Delisting of Equity Shares) Regulations, 2021; (Not applicable to the
Bank during the period under review)

g) The Securities and Exchange Board of India (Buyback of Securities) Regulations, 2018; (Not applicable to the Bank
during the period under review)
 Integrated Annual Report
222 2022-23

h) Securities and Exchange Board of India (Investor Protection and Education Fund) Regulations, 2009;

i) The Securities and Exchange Board of India (Registrars to Issue and Share Transfer Agents) Regulations, 1993

j) The Securities and Exchange Board of India (Depositories and Participants) Regulations, 2018;

We have relied on the representation made by the Bank and its Officers for systems and mechanism formed by the Bank for
compliances under other applicable Acts, Laws and Regulations to the Bank.

We have also examined compliance with the applicable clauses of the following:

a) Secretarial Standards issued by The Institute of Company Secretaries of India. (Not applicable as Bank is not
incorporated under the Companies Act, 2013)
b) The Securities Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (“Listing
Regulation”).
During the period under review the Bank has generally complied with the provisions of the Act, Rules, Regulations, Guidelines
etc.

We further report that

The Board of Directors of the Bank is duly constituted with proper balance of Executive Directors, Non-Executive Directors
and Independent Directors. The changes in the composition of the Board of Directors that took place during the period under
review were carried out in compliance with the provisions of the Act, Rules and Regulations.

Adequate notice is given to all directors to schedule the Board Meetings, agenda and detailed notes on agenda were sent
at least seven days in advance, and a system exists for seeking and obtaining further information and clarifications on the
agenda items before the meeting and for meaningful participation at the meeting.

Majority decision is carried through while the dissenting members’ views are captured and recorded as part of the minutes.

We further report that there are adequate systems and processes in the Bank commensurate with the size and operations
of the Bank to monitor and ensure compliance with applicable laws, rules, regulations and guidelines.

We further report that during the audit period, the Bank had following specific events or actions which might have a bearing
on the Bank’s affairs in pursuance of the above referred laws, rules, regulations, guidelines, standards, etc.:

1. Superannuation of Shri Manas Ranjan Biswal as Executive Director of the Bank

2. Cessation of Shri Mangesh Mandrekar as Company Secretary and Compliance Officer of the Bank & Designation of Shri
S.K. Dash as Company Secretary and Compliance Officer of the Bank.
3. Superannuation of Shri Rajkiran Rai G. as Managing Director & Chief Executive Officer of the Bank .
4. Appointment of Ms. A. Manimekhalai as Managing Director & Chief Executive Officer of the Bank .
5. Issue & Allotment of ` 1983 Crore of Unsecured, Subordinated, Taxable, Non-Convertible, Perpetual, fully paid-up Basel
III Compliant Additional Tier-1 Bond (“Bonds”).
6. Cessation from service of Shri B. S. Venkatesha, Chief Risk Officer of the Bank & Appointment of Shri Omprakash S
Karwa as Chief Risk Officer of the Bank.
7. Appointment of Shri Srinivasan Varadarajan as a Part-time Non-Official Director as well as Non-Executive Chairman of
the Bank
8. Appointment of Shri Ramasubramanian S as the Executive Director of the Bank
9. Issue and Allotment of `2200 crore Unsecured, Subordinated, Non-Convertible, Taxable, Fully Paid-Up Basel III Compliant
Tier- 2 Bonds in the nature of Debentures eligible for inclusion in Tier 2 Capital (“Bonds”).
Integrated Annual Report
2022-23 223

10. Appointment of KFin Technologies Limited as Registrar to Issue and Share Transfer Agent (RTA) of the Bank in place of
Datamatics Business Solutions Ltd, the earlier RTA.
For Ragini Chokshi & Co
Company Secretaries

Strategy, Model & Capitals

Firm Registration Number: 92897
Place: Mumbai
Date: 30.05.2023

Umashankar Hegde
Partner
M.No: A22133 #CP No: 11161
UDIN : - A022133E000416648
ICSI Unique Code: P1988MH05 6900
Peer Review Certificate No -659/2020

This report is to be read with our letter of even date which is annexed as Annexure ‘A’ and forms an integral part of this

Notice
report.

Statutory Reports
Financial Statements
 Integrated Annual Report
224 2022-23

Annexure - A
To,
The Members,
Union Bank of India
Central Office, Mumbai

Our Secretarial Audit Report for the Financial Year ended on March 31, 2023 of even date is to be read along with this letter.

1. Maintenance of Secretarial records is the responsibility of the Management of the Bank. Our responsibility is to express
an opinion on these Secretarial records based on our audit.
2. We have followed the audit practices and processes as were appropriate to obtain reasonable assurance about the
correctness of the contents of the Secretarial records. The verification was done on test basis to ensure that correct
facts are reflected in Secretarial records. We believe that the processes and practices, we follow provide a reasonable
basis for our opinion.
3. We have not verified the correctness and appropriateness of financial records and Books of Accounts of the Bank.
4. Wherever required, we have obtained the Management representation about the compliance of laws, rules and
regulations and happening of events etc.
5. The compliance of the provisions of Corporate and other applicable laws, rules, regulations, standards is the responsibility
of Management. Our examination was limited to the verification of procedures on test basis.
6. The Secretarial Audit report is neither an assurance as to the future viability of the Bank nor of the efficacy or effectiveness
with which the Management has conducted the affairs of the Bank.

For Ragini Chokshi & Co

Company Secretaries
Firm Registration Number: 92897
Place: Mumbai
Date: 30.05.2023

Umashankar Hegde
Partner
M.No: A22133 #CP No: 11161
UDIN : - A022133E000416648
ICSI Unique Code: P1988MH05 6900
Peer Review Certificate No -659/2020
Integrated Annual Report
2022-23 225

Secretarial Compliance Report of Union Bank of India

for the year ended 31st March, 2023
[Under Regulation 24A of Securities and Exchange Board of India
(Listing Obligations and Disclosure Requirements) Regulations, 2015]

We have examined:
(a) all the documents and records made available to us and explanation provided by UNION BANK OF INDIA (“the listed
entity”),

Strategy, Model & Capitals

(b) the filings/ submissions made by the listed entity to the stock exchanges,
(c) website of the listed entity,
(d) any other document/ filing, as may be relevant, which has been relied upon to make this certification,
For the year ended March 31, 2023 (“Review Period”) in respect of compliance with the provisions of:
(a) The Securities and Exchange Board of India Act, 1992 (“SEBI Act”) and the Regulations, circulars, guidelines issued
thereunder; and
(b) the Securities Contracts (Regulation) Act, 1956 (”SCRA”), rules made thereunder and the Regulations, circulars,
guidelines issued thereunder by the Securities and Exchange Board of India (”SEBI”);
The specific Regulations, whose provisions and the circulars/guidelines issued thereunder, have been examined, include:-
(a) Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 and as

Notice
amended from time to time;
(b) Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018 and as
amended from time to time;
(c) Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011 and as
amended from time to time;;
(d) Securities and Exchange Board of India (Buyback of Securities) Regulations, 2018; (Not Applicable to the Bank during
the period under review)
(e) Securities and Exchange Board of India (Share Based Employee Benefits and Sweat Equity) Regulations, 2021 and as

Statutory Reports
amended from time to time; (Not Applicable to the Bank during the period under review)
(f) Securities and Exchange Board of India (Issue and Listing of Non—Convertible Securities) Regulations,2021;
(g) Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015 and as amended from time to
time;
(h) Securities and Exchange Board of India (Depositories & Participants) Regulations, 2018
(i) Securities and Exchange Board of India (Delisting of Equity Shares) Regulations, 2021; (Not Applicable to the Bank
during the period under review)
(j) Securities and Exchange Board of India (Investor Protection and Education Fund) Regulations, 2009;

Financial Statements
and circulars/guidelines issued thereunder;
 Integrated Annual Report
226 2022-23

We hereby report that, during the Review Period the Compliance status of the listed entity is appended as below:

Sr. Particulars Compliance Observations/ Remarks by PCS

No. status (Yes/No/
NA)
1 Secretarial Standards: NA Union Bank of India is a corresponding
bank constituted under Banking Companies
The compliances of the Bank are in accordance (Acquisition and Transfer of Undertaking)
with the applicable Secretarial Standards (SS) Act,1970. The provisions of the Companies
issued by the Institute of Company Secretaries Act ,2013 are not applicable to the Bank.
India (ICSI) notified by the Central Government
under section 118(10) of the Companies Act, 2013
and mandatorily applicable .
2 Adoption and timely updation of the Policies: Yes None

• All applicable policies under SEBI Regulations

are adopted with the approval of board of
directors of the listed entities
• All the policies are in conformity with SEBI
Regulations and has been reviewed & timely
updated as per the regulations/ circulars/
guidelines issued by SEBI
3 Maintenance and disclosures on Website: Yes None

• The listed entity is maintaining a functional

website
• Timely dissemination of the documents/
information under a separate section on the
website
• Web-links provided in the annual corporate
governance reports under Regulation 27(2) are
accurate and specific which re-directs to the
relevant document(s)/ section of the website
4 Disqualification of Director: Yes None

None of the Director of the Bank are disqualified

under Section 164 of Companies Act, 2013.
5 To examine details related to Subsidiaries of listed NA (a) No Material Subsidiary has been
entities have been examined w.r.t: identified. (b) Examined the disclosures
of other subsidiaries and found in order.
(a) Identification of material subsidiary companies
(b) Disclosures requirements of material as well
as other subsidiaries
6 Preservation of Documents: Yes None

The listed entity is preserving and maintaining

records as prescribed under SEBI Regulations and
disposal of records as per Policy of Preservation of
Documents and Archival policy prescribed under
SEBI LODR Regulations, 2015.
Integrated Annual Report
2022-23 227

Sr. Particulars Compliance Observations/ Remarks by PCS

No. status (Yes/No/
NA)
7 Performance Evaluation: Yes None

The listed entity has conducted performance

evaluation of the Board, Independent Directors
and the Committees at the start of every financial

Strategy, Model & Capitals

year/during the financial year as prescribed in SEBI
Regulations.
8 Related Party Transactions:

(a) The listed entity has obtained prior approval Yes

of Audit Committee for all Related party
transactions. No such instances were observed during the
period
(b) The listed entity has provided detailed N.A
reasons along with confirmation whether the
transactions were subsequently approved/
ratified/rejected by the Audit Committee, in
case no prior approval has been obtained.
9 Disclosure of events or information: Yes None

Notice
The listed entity has provided all the required
disclosure(s) under Regulation 30 along with
Schedule III of SEBI LODR Regulations, 2015 within
the time limits prescribed there under.
10 Prohibition of Insider Trading: Yes None

The listed entity is in compliance with Regulation

3(5) & 3(6) SEBI (Prohibition of Insider Trading)
Regulations, 2015

Statutory Reports
11 Actions taken by SEBI or Stock Exchange(s), if any: NA No such instances were observed during the
period.
No Action(s) has been taken against the listed
entity/ its promoters/ directors/ subsidiaries either
by SEBI or by Stock Exchanges (including under
the Standard Operating Procedures issued by SEBI
through various circulars) under SEBI Regulations
and circulars/ guidelines issued there under.
12 Additional Non-compliances, if any: NA No additional non- compliances were found
for the period under review.

Financial Statements
No additional non-compliance observed for all SEBI
regulation/ circular/ guidance note etc.
 Integrated Annual Report
228 2022-23

Compliances related to resignation of statutory auditors from listed entities and their material subsidiaries as per SEBI
Circular CIR/CFD/CMD1/114/2019 dated 18th October, 2019:

Sr. Particulars Compliance Status Observations/Remarks by PCS

No. (Yes/No/NA)
1 Compliances with the following conditions while appointing/re-appointing an auditor
i. If the auditor has resigned within 45 days from NA Not applicable during the period
the end of a quarter of a financial year ,the under review
auditor before such resignation, has issued the
limited review/ audit report for such quarter; or
ii. If the auditor has resigned after 45 days from NA Not applicable during the period
the end of a quarter of a financial year, the under review
auditor before such resignation, has issued the
limited review/ audit report for such quarter as
well as the next quarter; or
iii. If the auditor has signed the limited review/ audit NA Not applicable during the period
report for the first three quarters of a financial under review
year, the auditor before such resignation, has
issued the limited review/ audit report for the
last quarter of such financial year as well as the
audit report for such financial year.
2 Other conditions relating to resignation of statutory auditor
i. Reporting of concerns by Auditor with respect
to the listed entity/ its material subsidiary to
the Audit Committee:
a In case of any concern with the NA Not applicable during the period
management of the listed entity/material under review
subsidiary such as non-availability of
information / non-cooperation by the
management which has hampered the
audit process, the auditor has approached
the Chairman of the Audit Committee of
the listed entity and the Audit Committee
shall receive such concern directly and
immediately without specifically waiting
for the quarterly Audit Committee
meetings.
b In case the auditor proposes to resign,
all concerns with respect to the
proposed resignation, along with relevant
documents has been brought to the notice
of the Audit Committee. In cases where
the proposed resignation is due to non-
receipt of information / explanation from
the company, the auditor has informed the
Audit Committee the details of information
/explanation sought and not provided by
the management, as applicable.
c The Audit Committee/ Board of Directors,
as the case may be, deliberated on the
matter on receipt of such information from
the auditor relating to the proposal to resign
as mentioned above and communicate its
views to the management and the auditor.
Integrated Annual Report
2022-23 229

Sr. Particulars Compliance Status Observations/Remarks by PCS

No. (Yes/No/NA)
ii. Disclaimer in case of non-receipt of information: NA Not applicable during the period
under review
The auditor has provided an appropriate
disclaimer in its audit report, which is in
accordance with the Standards of Auditing
as specified by ICAI/ NFRA, in case where the

Strategy, Model & Capitals

listed entity/ its material subsidiary has not
provided information as required by the auditor.
3 The listed entity / its material subsidiary has NA Not applicable during the period
obtained information from the Auditor upon under review
resignation, in the format as specified in Annexure-A
in SEBI Circular CIR/ CFD/CMD1/114/2019 dated
18th October, 2019.

The Bank has complied with the points 6(A) and 6 (B) as mentioned in SEBI No. CIR/CFD/CMD1/114/2019 dated October
18, 2019 and it has incorporated all the terms and conditions in the respective appointment letter / supplemental letter
issued to the Statutory Auditors.

The listed entity has complied with the provisions of the above Regulations and circulars/ guidelines issued thereunder,
except in respect of matters specified below: -

Notice
-NIL-

Statutory Reports
Financial Statements
 The listed entity has taken the following actions to comply with the observations made in previous reports:
230
Sr Compliance Requirement Regulation/ Deviations Action Type of Details of Fine Observations / Remarks of The Practicing Company Secretary Management response Remarks
No. (Regulations/ circulars/guidelines Circular taken action violation Amount
including specific clause) by
1 Regulation 17(b) of the SEBI (LODR) Regulation 17(b) Since the Bank - - - Though the provisions related to independent directors do not With the induction of Now Complied
Regulations 2015 doesn’t have a apply to public sector banks as they are not established under Non-Executive Chairman with.
non-executive the Companies Act, and the Act establishing the PSBs does not (Independent), the Board
Where the listed entity does not have Chairperson, based define independent directors, the communication of Ministry of the Bank is composed
a regular on executive chairperson, on the number of of Finance no. F.No.6/20/2019- BO.I dated 30/08/2019, has of requisite number of
at least half of the board of directors directors on the clarified that that the non official director appointed clause independent directors as per
shall comprise of independent board, the board (g) and the non official directors appointed under clause (h) of SEBI LODR
directors comprise of at section 9(3) of Banking Companies (Acquisition & Transfer of
least 6 independent Undertakings) Act, 1970, are similar in nature to independent
directors. directors In view of this clarification, the Board of the Bank
has decided to consider the directors appointed/nominated
under clauses (g) (h) and (i) of the section referred above as
independent directors. During the year under report, the Board
did not have a director appointed under clause (g) and had two
directors each nominated/elected under clause (h) and (¡) of the
above section. Based on this decision of the Board, the bank
had only 4 independent directors against the requirement of 6
directors.
2 Regulation 19(1) of the SEBI (LODR), Due to non- As per the directions of the Reserve Bank of India, the Committee As per RBI Circular dated Now
Regulations, 2015 availability of the should comprise of the non-executive director nominated under 26.04.2021, NRC shall Complied
prescribed number section 9(3)(g) and three non-executive directors nominated consist of only Non- with.
The Board of Directors shall constitute of non-executive/ under section 9(3) (h) of the Banking Companies (Acquisition & executive Directors and
the Nomination and Remuneration independent Transfer of Undertakings) Act, 1970. Though the Board did not atleast half of the Members
committee consisting of at least directors on the have a non-executive director nominated under section 9 (3)(g) shall be independnt. Bank’s
three non-executive directors with at Board of the Bank of the Act, it had two directors each nominated under section NRC is composed of all Non-
least two-third of the directors being there was shortage 9(3)(h) and elected under 9(3)(i) of the Act to constitute the executive and Independent
independent directors. of members in this committee, satisfying the requirements of the composition of Directors.
Committee. the committee under LODR . The functions of this Committee
were taken up by the Board of the Bank pursuant to Clause
14A of the Nationalized Banks (Management and Miscellaneous
Provisions) Scheme, 1970.

Assumptions & Limitation of scope and Review:

1. Compliance of the applicable laws and ensuring the authenticity of documents and information furnished, are the responsibilities of the management of the Bank.
2. Our responsibility is to certify based upon our examination of relevant documents and information. This is neither an audit nor an expression of opinion.
3. We have not verified the correctness and appropriateness of financial Records and Books of Accounts of the Bank.
4. This Report is solely for the intended purpose of compliance in terms of Regulation 24A (2) of the SEBI (Listing Obligations and Disclosure Requirements)
Regulations, 2015 and is neither an assurance as to the future viability of the Bank nor of the efficacy or effectiveness with which the management has conducted
the affairs of the Bank
For Ragini Chokshi & Co
Company Secretaries

Umashankar Hegde
Date: 19.05.2023 (Partner)
Place: Mumbai M.No: A22133,
CP No: 11161
2022-23
Integrated Annual Report

UDIN : A022133E000322730
Integrated Annual Report
2022-23 231

CERTIFICATE OF NON-DISQUALIFICATION OF DIRECTORS

[Pursuant to Regulation 34(3) and Schedule V Para C clause (10)(i) of the SEBI
(Listing Obligations and Disclosure Requirements) Regulations, 2015]

To,
The Members,
Union Bank of India
Union Bank Bhavan, 239,

Strategy, Model & Capitals

Vidhan Bhavan Marg, Nariman Point,
Mumbai - 400 021
We have examined the relevant registers, records, forms, returns and disclosures received from the Directors of Union
Bank of India (hereinafter referred to as ‘the Bank’) having Central Office at Union Bank Bhavan, 239, Vidhan Bhavan Marg,
Nariman Point, Mumbai - 400 021, produced before us by the Bank for the purpose of issuing this Certificate, in accordance
with Regulation 34(3) read with Schedule V Para C Clause 10(i) of the Securities and Exchange Board of India (Listing
Obligations and Disclosure Requirements)Regulations, 2015.
In our opinion and to the best of our information and according to the verifications (including Directors Identification Number
(DIN) status at the portal (www.mca.gov.in) as considered necessary and explanations furnished to us by the Bank & its
officers, We hereby certify that none of the Directors on the Board of the Bank as stated below for the Financial Year ended
March 31, 2023 have been debarred or disqualified from being appointed or continuing as Directors of companies by the
Securities and Exchange Board of India, Ministry of Corporate Affairs, or any such other Statutory Authority.

Notice
Director Date of
Sr.
Name of the Director Identification Appointment in the
No.
Number Bank
1. Srinivasan Varadarajan 00033882 07-11-2022
2. A. Manimekhalai 08411575 03-06-2022
3. Nitesh Ranjan 08101030 10-03-2021
4 Rajneesh Karnatak 08912491 21-10-2021
5. Nidhu Saxena 09691292 01-02-2022

Statutory Reports
6. Ramasubramanian S 08747165 21-11-2022
7. Sameer Shukla 06435463 08-11-2021
8. Arun Kumar Singh 09498086 26-04-2019
9. Suraj Srivastava 09444372 21-12-2021
10. Laxman S Uppar 02453845 21-03-2022
11. Jayadev Madugula 03574167 28-06-2018
12. Priti Jay Rao 03352049 29-07-2021

Ensuring the eligibility for the appointment / continuity of every Director on the Board is the responsibility of the management

Financial Statements
of the Bank. Our responsibility is to express an opinion on these based on our verification. This certificate is neither an
assurance as to the future viability of the Bank nor of the efficiency or effectiveness with which the management has
conducted the affairs of the Bank.

For Ragini Chokshi & Co

Company Secretaries
Firm Registration Number: 92897

Umashankar Hegde
Date: 17.05.2023 (Partner)
Place: Mumbai M.No: A22133,
CP No: 11161
UDIN : A022133E000319155
 Integrated Annual Report
232 2022-23

CEO & CFO CERTIFICATION

To,
The Board of Directors,
Union Bank of lndia,
Mumbai.

CEO and CFO Certificate under Regulation 17(8) of SEBl

(Listing ObIigations & Disclosure Requirements) Regulations, 2015

This is to certify that to the best of our knowledge and belief,

A. We have reviewed financial statements and the cash flow statement for the year and that to the best of our knowledge
and belief:
(1) these statements do not contain any materially untrue statement or omit any material fact or contain statements that
might be misleading;

(2) these statements together present a true and fair view of the Listed entity's affairs and are in compliance with existing
accounting standards, applicable laws and regulations.

B. There are, to the best of our knowledge and belief, no transactions entered into by the listed entity during the year which
are fraudulent, illegal or violative of the listed entity's code of conduct.
C. We accept responsibility for establishing and maintaining internal controls for financial reporting and that we have
evaluated the effectiveness of internal control systems of the Listed entity pertaining to financial reporting and have
disclosed to the auditors and the audit committee, deficiencies in the design or operation of such internal controls, if any,
of which we are aware and the steps we have taken or propose to take to rectify these deficiencies,
D. We have indicated to the auditors and the Audit committee
(1) significant changes in internal control over financial reporting during the year;

(2) significant changes in accounting policies during the year and that the same have been disclosed in the notes to the
financial statements; and

(3) instances of significant fraud of which they have become aware and the involvement therein, if any, of the
management or an employee having a significant role in the listed entity's internal control system over financia[
reporting.

For Union Bank of India For Union Bank of India

(Prafulla Kumar Samal) A. Manimekhalai

(Chief Financial Officer) Managing Director & CEO

Shri P. K. Samal, CFO

Place: Mumbai
Date: 06.05.2023
5.16 Details of Directors, their attendance in the Board and other Committee Meetings during 2022-23 are as follows :

Board and Member of the Committee(s) of the Board

Sl.
2022-23

Name of the Director Type Board MCB ACB SRC RMC ITSC SCMF DPPC STCB **
No.
Held* attended Held* attended Held* attended Held* attended Held* attended Held* attended Held* attended Held* attended Held* attended
1 Shri Srinivasan Varadarajan NEC 7 6 - - - - - - 2 2 - - 2 2 - -
Since 07.11.2022
2 Ms.A.Manimekhalai MD & CEO 14 14 20 20 - - 3 3 4 4 4 4 3 3 6 6 4 4
Since 03.06.2022
Integrated Annual Report

3 Shri Nitesh Ranjan ED 17 17 23 18 4 4 4 3 3 2 5 5 1 1 - - - -

Since 10.03.2021
4 Shri Rajneesh Karnatak ED 17 16 23 22 - - 4 4 3 2 5 4 - - - - - -
Since 21.10.2021
5 Shri Nidhu Saxena ED 17 17 23 21 1 1 4 4 3 3 5 5 1 1 - - - -
Since 01.02.2022
6 Shri Ramasubramanian S ED 6 6 10 10 - - 2 2 - - 2 2 - - - - - -
Since 21.11.2022
7 Shri Sameer Shukla, Central Govt NED 17 10 - - 11 8 4 2 - - 5 4 4 2 6 6 - -
Nominee Director Since 08.11.2021
8 Shri Arun Kumar Singh NED 17 17 23 23 11 10 - - - - - - - - 6 6 - -
RBI Nominee Director Since 26.04.2019
9 Shri Suraj Srivastava ID/NED 17 17 - - 11 11 4 4 5 5 - - 2 2 - - 3 3
Since 21.12.2021
10 Shri Laxman S. Uppar ID/NED 17 17 21 20 - - - - 2 2 - - 3 3 - - 3 3
Since 21.03.2022
11 Dr. Jayadev Madugula ID / SD 17 16 - - 11 11 4 4 5 5 5 4 1 1 - - 1 1
Since 28.06.2018
12 Ms. Priti Jay Rao ID/SD 17 15 18 17 2 2 4 4 4 4 5 5 3 3 - - 1 1
Since 29.07.2021
The following are the details of attendance of directors who were on the Board of the Bank during FY 2022-23 prior to 31.03.2023
1 Shri Rajkiran Rai.G MD & CEO 3 3 3 3 - - 1 1 1 1 1 1 1 1 -- -- - -
Since 01.07.2017 till 31.05.2022
2 Shri Manas Ranjan Biswal Since ED 1 1 1 1 - - - - - - 1 1 1 1 - - - -
01.03.2019 till 30.04.2022

* Number of meetings held during the tenure of the Director

** 20 Proposals was circulated as Circular Resolution at different time intervals to the Share Transfer Committee and got it approved.

MD & CEO - Managing Director & Chief Executive Officer

ED- Executive Director
NED - Non Executive Director
ID - Independent Director
SD - Shareholder Director
NEC- Non Executive Chairman
233

Financial Statements Statutory Reports Notice Strategy, Model & Capitals

 234
5.16 Details of Directors, their attendance in the Board and other Committee Meetings during 2022-23 are as follows :

Sl. Board and Member of the Committee(s) of the Board

Name of the Director Type
No. RCNCB & WD NRC HRSC CAC-I REMC CDRCF BCPE
Held* attended Held* attended Held* attended Held* attended Held* attended Held* attended Held* attended
1 Shri Srinivasan Varadarajan NEC - - 1 1 - - - - - - - - 1 1
Since 07.11.2022
2 Ms.A.Manimekhalai MD & 4 4 - - 4 4 29 29 4 4 5 5 - -
Since 03.06.2022 CEO
3 Shri Nitesh Ranjan ED - - - - 5 3 32 28 4 3 5 5 - -
Since 10.03.2021
4 Shri Rajneesh Karnatak ED - - - - 5 5 32 30 4 3 5 3 - -
Since 21.10.2021
5 Shri Nidhu Saxena ED - - - - 5 4 32 26 4 4 5 3 - -
Since 01.02.2022
6 Shri Ramasubramanian S ED - - - - 2 2 12 11 2 2 2 2 - -
Since 21.11.2022
7 Shri Sameer Shukla NED - - - - 5 4 - - 4 4 - - 2 2
Central Govt Nominee Director
Since 08.11.2021
8 Shri Arun Kumar Singh NED - - - - - - - - - - - - - -
RBI Nominee Director
Since 26.04.2019
9 Shri Suraj Srivastava ID/ 3 3 1 1 - - - - - - - - - -
Since 21.12.2021 NED
10 Shri Laxman S. Uppar ID/ 3 3 1 1 - - - - - - - - - -
Since 21.03.2022 NED
11 Dr. Jayadev Madugula ID/SD 1 1 - - 5 4 - - - - - - 2 2
Since 28.06.2018
12 Ms. Priti Jay Rao ID/SD 1 1 - - 5 4 - - - - - - 1 1
Since 29.07.2021
The following are the details of attendance of directors who were on the Board of the Bank during FY 2022-23 prior to 31.03.2023
1 Shri Rajkiran Rai.G MD & - - - - 1 1 3 3 - - - - - -
Since 01.07.2017 till 31.05.2022 CEO
2 Shri Manas Ranjan Biswal Since ED - - - - - - 2 2 - - - - - -
01.03.2019 till 30.04.2022

* Number of meetings held during the tenure of the Director

2022-23
Integrated Annual Report
Integrated Annual Report
2022-23 235

Independent Auditors’ Report

To

The President of India /

The Members of Union Bank of India

Strategy, Model & Capitals

Mumbai

Report on Audit of the Standalone Financial Statements

Opinion
1. We have audited the accompanying Standalone Financial Statements of Union Bank of India (‘the Bank’), which
comprise the Balance Sheet as at 31st March 2023, the Profit and Loss Account and the Statement of Cash Flows for
the year then ended, and notes to financial statements including a summary of significant accounting policies and other
explanatory information in which are included the returns for the year ended on that date of

i) Head Office, 20 branches, 1 Treasury Branch, 18 FGM Offices audited by us

ii) 2691 branches audited by statutory branch auditors and

Notice
iii) 3 overseas branches audited by local auditors.

The branches audited by us and those audited by other auditors have been selected by the Bank in accordance with the
guidelines issued to the Bank by the Reserve Bank of India (the RBI). Also incorporated in the Balance Sheet, the Profit
and Loss Account and the Statement of Cash Flows are the returns from 6406 branches and offices which have not
been subjected to audit. These unaudited branches account for 23.82 % of advances, 37.81% of deposits, 17.01 % of
interest income and 33.86 % of interest expenses.

Statutory Reports
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone
financial statements give the information required by the Banking Regulation Act, 1949 in the manner so required for
bank and are in conformity with accounting principles generally accepted in India and:

a. the Balance Sheet, read with the notes thereon is a full and fair Balance Sheet containing all the necessary particulars,
is properly drawn up so as to exhibit a true and fair view of the state of affairs of the Bank as at 31st March, 2023;

b. the Profit and Loss Account, read with the notes thereon shows a true balance of profit for the year ended on that
date; and

Financial Statements
c. the Cash Flow Statement gives a true and fair view of the cash flows for the year ended on that date.

Basis for Opinion

2. We conducted our audit in accordance with the Standards on Auditing (SAs) issued by the Institute of Chartered
Accountants of India (the “ICAI”). Our responsibilities under those Standards are further described in the Auditor’s
Responsibilities for the Audit of the standalone Financial Statements section of our report. We are independent of the
Bank in accordance with the Code of Ethics issued by the ICAI together with ethical requirements that are relevant to
our audit of the financial statements in accordance with the accounting principles generally accepted in India, including
the Accounting Standards issued by ICAI, and provisions of section 29 of the Banking Regulation Act, 1949 and
circulars and guidelines issued by Reserve Bank of India (‘RBI”) from time to time and we have fulfilled our other ethical
responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence we
have obtained is sufficient and appropriate to provide a basis for our opinion.
 Integrated Annual Report
236 2022-23

Emphasis of the Matter

3. We draw your attention to Note No. 15(b)(ii)(b)(iv)(a) of schedule 18 – Notes to Accounts to the standalone financial
statements regarding unamortised part of additional liability on account of revision in family pension carried forward
from last year amounting to ` 1521.62 crores, has been fully charged to profit and loss account during the year ended
March 31, 2023. There is no unamortised expenditure in the Balance Sheet on account of additional family pension.

Our opinion is not modified in respect of these matters.

Key Audit Matters

4. Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of
the standalone financial statements of the current period. These matters were addressed in the context of our audit
of the standalone financial statements as a whole, and in forming our opinion thereon, and we do not provide a
separate opinion on these matters. We have determined the matters prescribed below to be the key audit matters to be
communicated in our report.

Sr. Key Audit Matter How it was dealt with in our report
1 Income Recognition, Asset Classification (IRAC) and provisioning on Loans & Advances and Investments as per the
regulatory requirements
Loans & Advances and Investments are the largest Our audit was focused on income recognition, asset
class of assets forming 85.98% of the total assets classification and provisioning pertaining to advances due to
as on March 31, 2023. Classification, income the materiality of the balances and associated impairment
recognition and loss provisioning on the same are provisions.
based on objective parameters as prescribed by
the regulations (Reserve Bank of India’s prudential Our audit procedures included the assessment of controls
norms and other guidelines). The management of over the approval, disbursements and monitoring of loans, and
the Bank relies heavily on its IT systems (including reviewing the logic and assumptions used in the CBS and other
Core Banking Solution), exercise significant related IT systems for compliance of the IRAC and provisioning
estimates and judgement, manual interventions, and norms and its operating effectiveness.
uses services of experts (like independent valuers,
These included evaluation and understanding of following:
Lawyers, legal experts and other professional) to
determine asset classification, income recognition • Bank’s internal control system in adhering to the Relevant
and provisioning for losses. RBI guidelines regarding income recognition, asset
classification and provisioning pertaining to advances/
The Bank has system based identification of non-
investments;
performing assets in accordance with IRAC Norms
• System controls and manual controls over the timely
recognition of non-performing assets (NPA/NPI);
• Operational existence and effectiveness of controls over
provisioning calculation models from the IT systems;
• Overall Controls on the loan approval, disbursement and
monitoring process in case of advances and controls over
the purchase, sale and hold decisions making system in
case of investments
• We tested sample of loans/investments (in cases of
branches visited by us) to assess whether they had been
identified as non performing on a timely manner, income
recognized and provisioning made as per IRAC norms.
• We have also reviewed the reliability, effectiveness and
accuracy of manual interventions, wherever it has come to
our notice, on test check basis.
Integrated Annual Report
2022-23 237

Sr. Key Audit Matter How it was dealt with in our report
• We have relied on the reports/returns and work done by
other Statutory Branch Auditors (SBA) in cases of branches
not visited by us to get an overall comfort with respect to
overall compliance in accordance with SA 600 - Using the
Work of Another Auditor.
• We have reviewed the work done by other experts like

Strategy, Model & Capitals

Independent valuers, Lawyers, Legal Experts and other
such professionals who have rendered services to the
Bank, in accordance with SA 620 Using the Work of an
Auditor’s Expert.
• Further we have also reviewed the Bank’s system of
monitoring potentially weak and sensitive accounts which
show a sign of stress.
• We have also reviewed the reports and observations of the
Bank’s internal audit/inspection reports and observations
of the concurrent auditors for the same.
• Verification of valuation, classification, provisioning
and income recognition of investments by carrying out

Notice
substantive test including arithmetic accuracy, data
accuracy and control over the financial reporting system.
We have test checked and assessed the efficacy of the system
based identification of NPA
2 Information Technology (IT) and controls impacting financial reporting
In the normal course of its business, the Bank’s Our audit procedures included verifying, testing and reviewing
financial accounting and reporting systems are the design and operating effectiveness of the IT system by
highly dependent on the effective working of the verifying the reports/returns and other financial and non-

Statutory Reports
Core Banking Solution (CBS) and other IT systems financial information generated from the system on a test
linked to the CBS or working independently. check basis.
Extensive volume, variety and complexity of
transactions are processed daily and there is a risk Our audit procedures included:
that automated accounting procedures and related
• Ensuring that deficiencies noticed in our verification on test
internal controls may not be accurately designed
check basis were informed to the management for corrective
and operating effectively. Particular areas of focus
action;
relate to the logic that is fed into the system, sanctity
and reliability of the data, access management and • Carrying out independent alternative audit procedures
segregation of duties. These underlying principles like substantive testing in areas where deficiencies were

Financial Statements
are important because they ensure that changes to noticed;
applications and data are appropriate, authorized,
• Analytical procedures like ratio analysis, trend analysis,
cleansed and monitored, so that the system
reasonable tests, comparative analysis;
generates accurate and reliable reports/ returns
and other financial and non-financial information • Reliance on the work performed by the statutory branch
that is used for the preparation and presentation of auditors and the rectification entries (MOCs) passed based
the financial statements. on branch audits;
• Reliance on external vendor inspection reports wherever
We have relied on the consistent and accurate
made available.
functioning of CBS and other IT systems for the
following: • Reviewed the IS Audit Reports and discussed with IT
Department on compliance with key IT controls.
• Asset Classification and Income recognition as
per the Reserve Bank of India guidelines;
• Provisioning on the advance portfolio;
 Integrated Annual Report
238 2022-23

Sr. Key Audit Matter How it was dealt with in our report
• Identification of advances and liability items
and its maturity pattern in various brackets;
• Reconciliation and ageing of various suspense
and sundry accounts, impersonal accounts,
inter-branch balances and other such accounts;
• Recording Investment transactions
• Interest expense on deposits and other
liabilities;
3 Recognition and measurement of Deferred tax
The Bank has recognised a net deferred tax asset Our audit procedures included the risk assessment to gain
of ₹ 8,65,97,447 (in ‘000) as on March 31, 2023. an understanding of the applicable tax laws and relevant
Besides objective estimation, recognition and regulations applicable to the Bank. Based on our understanding,
measurement of deferred tax asset is based on we performed both tests of related internal key controls and
the judgment and numerous estimates regarding substantive audit procedures with the assistance of tax
the availability and visibility of profits in the future. specialists. We performed the following audit procedures as
The recent decrease in the amount of deferred part of our controls testing including, but not limited to:
tax assets presumes availability and forecasting
of profits over an extended period of time thus • Evaluation of the policies used for recognition and
decreasing uncertainty and the inherent risk of measurement of deferred tax assets in accordance with
inappropriate recognition of the said asset. AS 22 Accounting for Taxes on Income;
• Assessed the method, assumptions and other parameters
used with reference to uniformity, management
representations, consistency and continuity like budget
and midterm projections prepared by the management
including earning growth and applicable tax rates and
tested the arithmetical accuracy
• Assessed the probability of the availability and visibility
of profits against which the bank will be able to use this
deferred tax asset in the future.

Information Other than the Standalone Financial Statements and Auditors’ Report thereon
5. The Bank’s Board of Directors is responsible for the other information. The other information comprises the Highlights
for the year, Directors’ Report including annexures to Directors’ Report, key financial ratios, Business responsibility
Report and Corporate Governance report in the Annual Report, but does not include the standalone financial statements
and our auditor’s report thereon, which is expected to be made available to us after the date of this Auditors’ Report.
Our opinion on the standalone financial statements does not cover the Other Information and Pillar 3 disclosures under
the Basel III Disclosure and we do not express any form of assurance conclusion thereon.
In connection with our audit of the Standalone Financial Statements, our responsibility is to read the Other Information
identified above and, in doing so, consider whether the Other Information is materially inconsistent with the Standalone
Financial Statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated.
If, based on the work we have performed on the Other Information that we obtained prior to the date of this Auditors’
Report, we conclude that there is a material misstatement of this Other Information, we are required to report that fact.
We have nothing to report in this regard.
When we read the other information, if we conclude that there is a material misstatement therein, we are required to
communicate the matter to those charged with governance.
Integrated Annual Report
2022-23 239

Responsibilities of Management and Those Charged with Governance for the Standalone
Financial Statements
6. The Bank’s Board of Directors is responsible with respect to the preparation of these standalone financial statements that
give a true and fair view of the financial position, financial performance and cash flows of the Bank in accordance with
the accounting principles generally accepted in India, including the Accounting Standards issued by ICAI to the extent
applicable, and provisions of Section 29 of the Banking Regulation Act, 1949 and circulars and guidelines issued by the
Reserve Bank of India (‘RBI’) from time to time. This responsibility also includes maintenance of adequate accounting
records in accordance with the provisions of the Act for safeguarding of the assets of the Bank and for preventing and

Strategy, Model & Capitals

detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments
and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal
financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records,
relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from
material misstatement, whether due to fraud or error.
In preparing the standalone financial statements, management is responsible for assessing the Bank’s ability to continue
as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of
accounting unless management either intends to liquidate the Bank or to cease operations, or has no realistic alternative
but to do so.
The Board of Directors are also responsible for overseeing the Bank’s financial reporting process.

Auditor’s Responsibilities for the Audit of the Standalone Financial Statements

Notice
7. Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from
material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable
assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with SAs will always
detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material
if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken
on the basis of these financial statements.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional scepticism
throughout the audit. We also:

Statutory Reports
• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error,
design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and
appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from
fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control.

• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are
appropriate in the circumstances.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and
related disclosures made by management.

• Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on Financial Statements
the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast
significant doubt on the bank’s ability to continue as a going concern. If we conclude that a material uncertainty
exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements
or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence
obtained up to the date of our auditor’s report. However, future events or conditions may cause the bank to cease to
continue as a going concern.

• Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and
whether the financial statements represent the underlying transactions and events in a manner that achieves fair
presentation.
 Integrated Annual Report
240 2022-23

We communicate with those charged with governance regarding, among other matters, the planned scope and timing
of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during
our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical
requirements regarding independence, and to communicate with them all relationships and other matters that may
reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most
significance in the audit of the financial statements of the current period and are therefore the key audit matters. We
describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or
when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because
the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such
communication.

Other Matters
8. We did not audit the financial statements / information of 2694 branches and offices including 3 foreign branches
included in Standalone Financial Results of the Bank whose financial statements/ information reflects total assets of
` 2,66,41,76,397.19 (in thousand) at March 31, 2023 and total revenue of ₹ 25,17,25,101.73 (in thousand) for the year
ended on that date, as considered in the Standalone Financial Results. These branches and offices cover 36.86% of
advances, 58.04% of deposits and 48.89% of Non – performing assets as on 31st March 2023 and 26.39% of revenue
for the year ended 31st March 2023. The financial statements/ information of these branches have been audited by the
branch auditors whose reports have been furnished to us and in our opinion in so far as it relates to the amounts and
disclosures included in respect of branches, are based solely on the report of such branch auditors.
Our opinion is not modified in respect of this matter.

Report on Other Legal and Regulatory Requirements

9. The Balance Sheet and the Profit and Loss Account have been drawn up in accordance with Section 29 of the Banking
Regulation Act, 1949;
Subject to the limitations of the audit indicated in paragraphs 5 and 8 above and as required by the Banking Companies
(Acquisition and Transfer of Undertakings) Act, 1970/1980, and subject also to the limitations of disclosure required
therein, we report that:
a) We have obtained all the information and explanations which, to the best of our knowledge and belief, were
necessary for the purposes of our audit and have found them to be satisfactory;

b) The transactions of the Bank, which have come to our notice, have been within the powers of the Bank; and

c) The returns received from the offices and branches of the Bank have been found adequate for the purpose of our
audit.

10. As required by letter No. DOS.ARG.No.6270/08.91.001/2019-20 dated March 17, 2020 on “Appointment of Statutory
Central Auditors (SCAs) in Public Sector Banks – Reporting obligations for SCAs from FY 2019-20”, read with subsequent
communication dated May 19, 2020 issued by the RBI, we further report on the matters specified in paragraph 2 of the
aforesaid letter as under:
(a) In our opinion, the aforesaid standalone financial statements comply with the applicable accounting standards, to
the extent they are not inconsistent with the accounting policies prescribed by RBI.

(b) In our opinion there are no observations or comments on financial transactions or matters which have any adverse
effect on the functioning of the bank.

(c) As the bank is not registered under the Companies Act, 2013 the disqualifications from being a director of the bank
under sub-section (2) of Section 164 of the Companies Act, 2013 do not apply to the bank.

(d) There are no qualifications, reservations or adverse remarks relating to the maintenance of accounts and other
matters connected therewith.
Integrated Annual Report
2022-23 241

(e) Our audit report on the adequacy and operating effectiveness of the Bank’s internal financial controls over financial
reporting is given in Annexure A to this report. Our report expresses an unmodified opinion on the Bank’s internal
financial controls over financial reporting with reference to the Standalone Financial Statements as at 31st March
2023.

11. We further report that:

a) in our opinion, proper books of account as required by law have been kept by the Bank so far as it appears from our
examination of those books and proper returns adequate for the purposes of our audit have been received from

Strategy, Model & Capitals

branches not visited by us;

b) the Balance Sheet, the Profit and Loss Account and the Statement of Cash Flows dealt with by this report are in
agreement with the books of account and with the returns received from the branches not visited by us;

c) the reports on the accounts of the branch offices audited by branch auditors of the Bank under section 29 of the
Banking Regulation Act, 1949 have been sent to us and have been properly dealt with by us in preparing this report;
and

d) In our opinion, the Balance Sheet, the Profit and Loss Account and the Statement of Cash Flows comply with the
applicable accounting standards, to the extent they are not inconsistent with the accounting policies prescribed by
RBI.

For M/s R G N Price & Co. For M/s SARDA & PAREEK LLP For M/s C R Sagdeo & Co.

Notice
Chartered Accountants Chartered Accountants Chartered Accountants
FRN 002785S FRN 109262W/W100673 FRN 108959W

CA P. M. Veeramani CA Niranjan Joshi CA Sachin V. Luthra

Partner Partner Partner
Membership No.023933 Membership No.102789 Membership No. 109127
UDIN: 23023933BGVFVB8763 UDIN: 23102789BGWREB5291 UDIN: 23109127BGQVHR6655

For M/s P V A R & Associates For M/s Gopal Sharma & Co. For M/s N B S & Co.

Statutory Reports
Chartered Accountants Chartered Accountants Chartered Accountants
FRN 005223C FRN 002803C FRN 110100W

CA Ruchi Agarwal CA Abhishek Sharma CA Pradeep J. Shetty

Partner Partner Partner
Membership No. 504134 Membership No. 079224 Membership No. 046940
UDIN:23504134BGWTPP4106 UDIN: 23079224BGTKQO2274 UDIN: 23046940BGPTTS7892

Place of Signature: Mumbai

Date of Report: 06.05.2023

Financial Statements
 Integrated Annual Report
242 2022-23

ANNEXURE “A” TO THE INDEPENDENT AUDITOR’S REPORT (Referred to in paragraph 10(a)

under ‘Report on Other Legal and Regulatory Requirements’ section of our report of even
date) Report on the Internal Financial Controls Over Financial Reporting as required by
the Reserve Bank of India (the “RBI”) Letter DOS.ARG.No.6270/08.91.001/2019-20 dated
March 17, 2020 (as amended) (the “RBI communication”)
We have audited the internal financial controls over financial reporting of Union Bank of India (“the Bank”) as of March 31,
2023 in conjunction with our audit of the standalone financial statements of the Bank for the year ended on that date which
includes internal financial controls over financial reporting of the Bank’s branches.

Management’s Responsibility for Internal Financial Controls

The Bank’s management is responsible for establishing and maintaining internal financial controls based on the internal
control over financial reporting criteria established by the Bank considering the essential components of internal control
stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of
Chartered Accountants of India. These responsibilities include the design, implementation and maintenance of adequate
internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business,
including adherence to the Bank’s policies, the safeguarding of its assets, the prevention and detection of frauds and errors,
the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as
required under the Banking Regulation Act, 1949 and the circulars and guidelines issued by the Reserve Bank of India.

Auditor’s Responsibility
Our responsibility is to express an opinion on the Bank’s internal financial controls over financial reporting based on our
audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial
Reporting (the “Guidance Note”) issued by the Institute of Chartered Accountants of India (the “ICAI”) and the Standards
on Auditing (SAs) issued by the ICAI, to the extent applicable to an audit of internal financial controls. Those Standards and
the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable
assurance about whether adequate internal financial controls over financial reporting were established and maintained and
if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls
over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting
included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material
weakness exists, and testing and evaluating the design and operating effectiveness of internal financial controls based on
the assessed risk. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of
material misstatement of the financial statements, whether due to fraud or error.

We believe that the audit evidence we have obtained and the audit evidence obtained by the branch auditors, in terms of their
reports referred to in the Other Matters paragraph below, is sufficient and appropriate to provide a basis for our audit opinion
on the Bank’s internal financial controls over financial reporting.

Meaning of Internal Financial Controls Over Financial Reporting

A Bank’s internal financial controls over financial reporting is a process designed to provide reasonable assurance regarding
the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with
generally accepted accounting principles. A Bank’s internal financial controls over financial reporting includes those policies
and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the
transactions and dispositions of the assets of the Bank; (2) provide reasonable assurance that transactions are recorded
as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles,
and that receipts and expenditures of the Bank are being made only in accordance with authorisations of management
Integrated Annual Report
2022-23 243

and directors of the Bank; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorised
acquisition, use, or disposition of the Bank’s assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls Over Financial Reporting

Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion
or improper management override of controls, material misstatements due to error or fraud may occur and not be detected.
Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to

Strategy, Model & Capitals

the risk that the internal financial controls over financial reporting may become inadequate because of changes in conditions,
or that the degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion, and to the best of our information and according to the explanations given to us and based on the consideration
of the reports of the branch auditors referred to in the Other Matters paragraph below, the Bank has, in all material respects,
adequate internal financial controls over financial reporting and such internal financial controls over financial reporting were
operating effectively as at March 31, 2023, based on the criteria for internal control over financial reporting established by
the Bank considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial
Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India”.

Other Matters

Notice
Our aforesaid report insofar as it relates to the operating effectiveness of internal financial controls over financial reporting
of 2691 branches and offices is based on the corresponding reports of the respective branch auditors of those branches.

Our opinion is not modified in respect of this matter.

For M/s R G N Price & Co. For M/s SARDA & PAREEK LLP For M/s C R Sagdeo & Co.
Chartered Accountants Chartered Accountants Chartered Accountants
FRN 002785S FRN 109262W/W100673 FRN 108959W

Statutory Reports
CA P. M. Veeramani CA Niranjan Joshi CA Sachin V. Luthra
Partner Partner Partner
Membership No.023933 Membership No.102789 Membership No. 109127
UDIN: 23023933BGVFVB8763 UDIN: 23102789BGWREB5291 UDIN: 23109127BGQVHR6655

For M/s P V A R & Associates For M/s Gopal Sharma & Co. For M/s N B S & Co.
Chartered Accountants Chartered Accountants Chartered Accountants
FRN 005223C FRN 002803C FRN 110100W

Financial Statements
CA Ruchi Agarwal CA Abhishek Sharma CA Pradeep J. Shetty
Partner Partner Partner
Membership No. 504134 Membership No. 079224 Membership No. 046940
UDIN:23504134BGWTPP4106 UDIN: 23079224BGTKQO2274 UDIN: 23046940BGPTTS7892

Place of Signature: Mumbai

Date of Report: 06.05.2023
 Integrated Annual Report
244 2022-23

Standalone Balance Sheet

As on 31st March, 2023 (` in 000’)
Schedule As on As on
Particulars
Number 31 March, 2023 31 March, 2022
CAPITAL AND LIABILITIES
Capital 1 6,83,47,475 6,83,47,475
Reserves and Surplus 2 71,49,94,658 63,74,13,875
Share Application Money - -
Deposits 3 11,17,71,63,220 10,32,39,26,349
Borrowings 4 43,13,74,686 51,17,90,975
Other Liabilities and Provisions 5 41,56,44,474 33,44,31,936
TOTAL 12,80,75,24,513 11,87,59,10,609
ASSETS
Cash and Balances with Reserve Bank of India 6 50,25,42,741 46,11,25,911
Balances with Banks and Money at Call and Short Notice 7 61,89,61,793 73,38,77,672
Investments 8 3,39,29,90,482 3,48,50,73,915
Advances 9 7,61,84,54,577 6,61,00,46,627
Fixed Assets 10 8,82,56,071 7,19,13,038
Other Assets 11 58,63,18,849 51,38,73,446
12,80,75,24,513 11,87,59,10,609
Contingent Liabilities 12 6,07,80,94,194 6,50,24,77,545
Bills for Collection 43,56,67,177 66,08,94,129
Significant Accounting Policies 17
Notes to Accounts 18
The Schedules referred to above form an integral part of the Standalone Balance Sheet
(PANKAJ KUMAR) (PRAFULLA KUMAR SAMAL)
DY. GENERAL MANAGER CHIEF FINANCIAL OFFICER
For and on behalf of the Board of Directors
(RAMASUBRAMANIAN S) (NIDHU SAXENA) (NITESH RANJAN)
EXECUTIVE DIRECTOR EXECUTIVE DIRECTOR EXECUTIVE DIRECTOR

(ARUN KUMAR SINGH) (SURAJ SRIVASTAVA)

DIRECTOR DIRECTOR

(LAXMAN S UPPAR) (JAYADEV MADUGULA) (PRITI JAY RAO)

DIRECTOR DIRECTOR DIRECTOR

(A. MANIMEKHALAI)
MANAGING DIRECTOR & CEO

(SRINIVASAN VARADARAJAN)
CHAIRMAN
As per our report of even date attached.

For M/s R G N Price & Co. For M/s SARDA & PAREEK LLP For M/s C R Sagdeo & Co.
Chartered Accountants Chartered Accountants Chartered Accountants
FRN 002785S FRN 109262W/W100673 FRN 108959W

CA P M Veeramani CA Niranjan Joshi CA Sachin V Luthra

Partner Partner Partner
Membership No.023933 Membership No.102789 Membership No. 109127
UDIN: 23023933BGVFVB8763 UDIN: 23102789BGWREB5291 UDIN: 23109127BGQVHR6655

For M/s P V A R & Associates For M/s Gopal Sharma & Co. For M/s NBS & Co.
Chartered Accountants Chartered Accountants Chartered Accountants
FRN 005223C FRN 002803C FRN 110100W

CA Ruchi Agarwal CA Abhishek Sharma CA Pradeep J. Shetty

Partner Partner Partner
Membership No.504134 Membership No.079224 Membership No. 046940
UDIN:23504134BGWTPP4106 UDIN: 23079224BGTKQO2274 UDIN: 23046940BGPTTS7892

Place : MUMBAI
Date : 6th May, 2023
Integrated Annual Report
2022-23 245

Standalone Profit and Loss Account

For the Year Ended 31st March, 2023
(` in 000’)
Schedule For the Year Ended For the Year Ended
Particulars Number 31 March, 2023 31 March, 2022
I. INCOME
Interest Earned 13 80,74,33,386 67,94,39,508
Other Income 14 14,63,31,530 12,52,48,172

Strategy, Model & Capitals

TOTAL 95,37,64,916 80,46,87,680
II. EXPENDITURE
Interest Expended 15 47,97,79,957 40,15,74,864
Operating Expenses 16 21,93,13,319 18,43,80,735
Provision And Contingencies 17,03,38,863 16,64,11,123
TOTAL 86,94,32,139 75,23,66,722
III. Profit/ (Loss) for the year 8,43,32,777 5,23,20,958
Transfer from Investment Fluctuation Reserve 58,32,008 -
ADD : PROFIT/(LOSS) BROUGHT FORWARD - -
TOTAL 9,01,64,785 5,23,20,958
IV. APPROPRIATIONS
Transfer To Statutory Reserve 2,10,83,194 1,30,80,240
Transfer To Capital Reserve 9,45,461 1,22,12,675
Transfer To Investment Fluctuation Reserve - 65,68,682
Transfer To Revenue and Other Reserves 3,40,30,807 22,53,341
Transfer To Special Reserve u/s Sec 36(1)(viii) 60,00,000 52,20,000

Notice
Investment Reserve Account 17,69,006 -
Proposed Dividend 2,05,04,309 1,29,86,020
Balance in Profit and Loss Account 58,32,008 -
TOTAL 9,01,64,785 5,23,20,958
EARNINGS PER SHARE (BASIC AND DILUTED) (FV ₹ 10) 12.34 7.73
Significant Accounting Policies 17
Notes To Accounts 18
The Schedules referred to above form an integral part of the Standalone Profit and Loss Account
(PANKAJ KUMAR) (PRAFULLA KUMAR SAMAL)
DY. GENERAL MANAGER CHIEF FINANCIAL OFFICER
For and on behalf of the Board of Directors

Statutory Reports
(RAMASUBRAMANIAN S) (NIDHU SAXENA) (NITESH RANJAN)
EXECUTIVE DIRECTOR EXECUTIVE DIRECTOR EXECUTIVE DIRECTOR

(ARUN KUMAR SINGH) (SURAJ SRIVASTAVA)

DIRECTOR DIRECTOR

(LAXMAN S UPPAR) (JAYADEV MADUGULA) (PRITI JAY RAO)

DIRECTOR DIRECTOR DIRECTOR

(A. MANIMEKHALAI)
MANAGING DIRECTOR & CEO

(SRINIVASAN VARADARAJAN)
CHAIRMAN
As per our report of even date attached.

Financial Statements
For M/s R G N Price & Co. For M/s SARDA & PAREEK LLP For M/s C R Sagdeo & Co.
Chartered Accountants Chartered Accountants Chartered Accountants
FRN 002785S FRN 109262W/W100673 FRN 108959W

CA P M Veeramani CA Niranjan Joshi CA Sachin V Luthra

Partner Partner Partner
Membership No.023933 Membership No.102789 Membership No. 109127
UDIN: 23023933BGVFVB8763 UDIN: 23102789BGWREB5291 UDIN: 23109127BGQVHR6655

For M/s P V A R & Associates For M/s Gopal Sharma & Co. For M/s NBS & Co.
Chartered Accountants Chartered Accountants Chartered Accountants
FRN 005223C FRN 002803C FRN 110100W

CA Ruchi Agarwal CA Abhishek Sharma CA Pradeep J. Shetty

Partner Partner Partner
Membership No.504134 Membership No.079224 Membership No. 046940
UDIN:23504134BGWTPP4106 UDIN: 23079224BGTKQO2274 UDIN: 23046940BGPTTS7892

Place : MUMBAI
Date : 6th May, 2023
 Integrated Annual Report
246 2022-23

Schedules forming part of the Standalone Balance Sheet

As on 31st March, 2023
(` in 000’)
As on As on
Particulars
31 March, 2023 31 March, 2022
SCHEDULE 1 - CAPITAL :
I. Authorised :
10,00,00,00,000 Equity Shares of `10 each 10,00,00,000 10,00,00,000
(Previous Year 10,00,00,00,000 Equity Shares of `10 each)
II. Issued, Subscribed, called up & Paid up :
i. 570,66,60,850 Equity Shares of `10
each, held by Central Government 5,70,66,609 5,70,66,609
(Previous Year 570,66,60,850 Equity Shares)
ii. 112,80,86,616 Equity Shares of `10
each, held by Public 1,12,80,866 1,12,80,866
(Previous Year 112,80,86,616 Equity Shares)
Less: Calls unpaid - -
Add: Forfeited shares - -
TOTAL 6,83,47,475 6,83,47,475

(` in 000’)
Particulars As on 31 March, 2023 As on 31 March, 2022
SCHEDULE 2 - RESERVES & SURPLUS :
I. Statutory Reserve :
As per last balance sheet 14,62,88,901 13,32,08,662
Addition during the year 2,10,83,194 16,73,72,095 1,30,80,239 14,62,88,901
II. Capital Reserve :
i) Revaluation Reserve :
As per last balance sheet 4,75,70,741 4,89,84,778
Addition during the year 1,51,92,862 79,201
Deduction during the year 14,39,378 14,93,238
6,13,24,225 4,75,70,741
ii) Capital Reserve
As per last balance sheet 5,89,24,839 4,67,12,164
Addition during the year 9,45,461 1,22,12,675
5,98,70,300 5,89,24,839
iii) Amalgamation Adjustment Reserve 1,30,95,979 13,42,90,504 1,30,95,979 11,95,91,559
III. Share Premium :
As per last balance sheet 18,34,11,800 17,32,70,019
Addition during the year - 1,01,92,652
Deduction during the year - 18,34,11,800 50,871 18,34,11,800
IV. Revenue and Other Reserves :
i) Revenue Reserve :
As per last balance sheet 10,83,72,439 9,64,54,761
Addition during the year 3,64,81,537 1,31,16,426
Deduction during the year - 11,98,748
Total 14,48,53,976 10,83,72,439
ii) Special Reserve u/s Sec 36(1)(viii) of
the Income Tax Act, 1961
As per last balance sheet 6,02,98,789 5,50,78,789
Addition during the year 60,00,000 52,20,000
Total 6,62,98,789 6,02,98,789
Integrated Annual Report
2022-23 247

(` in 000’)
Particulars As on 31 March, 2023 As on 31 March, 2022
iii) Foreign Currency Translation Reserve
As per last balance sheet 30,319 10,42,370
Addition during the year 40,439 23,859
Deduction during the year 24,92,338 10,35,910
Total (24,21,580) 30,319
iv) Investment Fluctuation Reserve

Strategy, Model & Capitals

As per last balance sheet 1,93,61,583 1,27,92,901
Addition during the year - 65,68,682
Deduction During The year 58,32,008 -
1,35,29,575 1,93,61,583
v) Investment Reserve Account
As per last balance sheet - -
Addition during the year 17,69,006 -
Deduction During The year - -
17,69,006 -
vi) Special Reserve Profit on FX Swap 58,485 22,40,88,251 58,485 18,81,21,615
vii) Balance in Profit and Loss Account 58,32,008 -
TOTAL 71,49,94,658 63,74,13,875

Notice
SCHEDULE 3 - DEPOSITS :
A.
I. Demand Deposits
i) From Banks 1,75,66,930 81,32,959
ii) From Others 72,22,34,695 73,98,01,625 71,83,91,699 72,65,24,658
II. Savings Bank Deposits 3,20,07,52,745 3,04,54,07,826
III. Term Deposits
i) From Banks 17,64,32,725 2,27,87,325
ii) From Others 7,06,01,76,125 7,23,66,08,850 6,52,92,06,540 6,55,19,93,865

Statutory Reports
TOTAL 11,17,71,63,220 10,32,39,26,349
B.
i). Deposits of branches in India 11,06,08,94,903 10,32,10,23,919
ii). Deposits of branches outside India 11,62,68,317 29,02,430
TOTAL 11,17,71,63,220 10,32,39,26,349
SCHEDULE 4 - BORROWINGS :
I) Borrowings in India
a. Reserve Bank of India 13,38,20,000 14,20,90,000
b. Other Banks - 1,99,29,833
c. Other Institutions and Agencies 2,30,94,294 2,98,96,073

Financial Statements
d. Perpetual Bonds- Tier I 9,68,80,000 8,70,50,000
e. Subordinated Bonds - Tier II 9,95,00,000 35,32,94,294 10,05,00,000 37,94,65,906
II) Borrowings Outside India 7,80,80,392 13,23,25,069
TOTAL 43,13,74,686 51,17,90,975
Secured Borrowings included in I & II above 13,90,42,858 14,70,29,470
SCHEDULE 5 - OTHER LIABILITIES AND
PROVISIONS :
I. Bills Payable 2,64,97,502 2,68,90,202
II. Interest Accrued 5,97,92,681 4,52,33,997
III. Others* (Including Provisions) 32,93,54,291 26,23,07,737
TOTAL 41,56,44,474 33,44,31,936
*includes provision for Standard Assets
` 5,57,95,524 (Previous Year ` 6,56,67,690)
 Integrated Annual Report
248 2022-23

(` in 000’)
Particulars As on 31 March, 2023 As on 31 March, 2022
SCHEDULE 6 - CASH AND BALANCES WITH
RESERVE BANK OF INDIA:
I. Cash in hand
(Including Foreign Currency Notes and 2,83,88,225 3,78,19,394
Gold)
II. Balances with Reserve Bank of India
(a) in Current Account 47,41,54,516 42,33,06,517
(b) in Other Accounts 0,000 0,000
TOTAL 50,25,42,741 46,11,25,911
SCHEDULE 7 - BALANCES WITH BANKS AND
MONEY AT CALL AND SHORT NOTICE :
I. Balances with banks in India
i) Balances with Banks
a) In Current Accounts 56,30,727 22,24,274
b) In Other Deposit Accounts 5,77,33,962 6,08,75,196
ii) Money at Call and short notice
a) with Banks 5,00,000 0,000
b) with Other Institutions 31,23,03,614 37,61,68,303 55,41,14,877 61,72,14,347
II. Outside India
i) In Current Accounts 39,25,300 29,80,253
ii) In other Deposit Accounts 23,88,68,190 11,36,83,072
iii) Money at call & Short Notice 0,000 24,27,93,490 0,000 11,66,63,325
TOTAL 61,89,61,793 73,38,77,672
SCHEDULE 8 - INVESTMENTS :
I. Investments in India
i) Government Securities 2,60,25,15,576 2,64,16,37,956
ii) Other Approved Securities 0,000 0,000
iii) Shares 2,04,13,250 2,30,53,036
iv) Debentures and Bonds 63,15,34,188 69,38,31,055
v) Subsidiaries and joint ventures 38,88,095 33,86,095
vi) Others (Commercial Paper, Mutual 10,55,57,112 9,51,30,775
Funds, Venture Capital, Security Receipt
etc.)
Total 3,36,39,08,221 3,45,70,38,917
II. Investments outside India
i) Govt. Securities (Including Local 1,72,90,809 1,61,01,880
Authority)
ii) Other Investments (Bonds) 3,35,490 4,60,268
iii) Subsidiaries and Joint Ventures 1,14,55,962 1,14,72,850
Total 2,90,82,261 2,80,34,998
TOTAL 3,39,29,90,482 3,48,50,73,915
III. i) Investments in India
Gross Value 3,44,22,02,551 3,51,85,30,523
Provision for Depreciation 7,82,94,330 6,14,91,606
Net Value 3,36,39,08,221 3,45,70,38,917
ii) Investments outside India
Gross Value 2,93,43,600 2,83,51,221
Provision for Depreciation 2,61,339 3,16,223
Net Value 2,90,82,261 2,80,34,998
TOTAL 3,39,29,90,482 3,48,50,73,915
Integrated Annual Report
2022-23 249

(` in 000’)
As on As on
Particulars
31 March, 2023 31 March, 2022
SCHEDULE 9 - ADVANCES (Net)
A.
i) Bills purchased and discounted 3,29,53,001 3,87,09,874
ii) Cash Credits, Overdrafts and Loans repayable on demand 3,48,54,48,344 2,87,88,96,001

Strategy, Model & Capitals

iii) Term Loans 4,10,00,53,232 3,69,24,40,752
TOTAL 7,61,84,54,577 6,61,00,46,627
B.
i) Secured by tangible assets* 6,23,77,30,877 5,34,44,92,520
ii) Covered by Bank/Government Guarantees 12,26,93,689 13,06,61,251
iii) Unsecured 1,25,80,30,011 1,13,48,92,856
TOTAL 7,61,84,54,577 6,61,00,46,627
*includes advances against book debt ` 88,79,31,907 ( previous year
` 61,83,30,066)
C. Sectorial Classification of Advances
I. Advances in India:
i) Priority Sector 2,85,85,94,969 2,59,52,39,457
ii) Public Sector 81,73,80,496 72,72,96,155
iii) Banks 6,33,569 2,22,975

Notice
iv) Others 3,71,91,49,598 3,13,82,79,933
TOTAL 7,39,57,58,632 6,46,10,38,520
II. Advances Outside India:
i) Due From Banks 4,91,50,582 5,31,10,677
ii) Due from Others
a) Bills Purchased and Discounted 3,86,506 12,11,011
b) Syndicated loans 0,000 5,47,141
c) Others 17,31,58,857 9,41,39,278
TOTAL 22,26,95,945 14,90,08,107

Statutory Reports
TOTAL 7,61,84,54,577 6,61,00,46,627

(` in 000’)
Particulars As on 31 March, 2023 As on 31 March, 2022
SCHEDULE 10 - FIXED ASSETS :
A. TANGIBLE ASSETS
I. Premises
At cost/valuation as per last balance 8,08,71,144 8,15,36,732
sheet

Financial Statements
Additions during the year 2,16,56,329 6,10,204
Deduction during the year 67,16,482 12,75,792
9,58,10,991 8,08,71,144
Less: Depreciation till date 2,75,63,468 6,82,47,523 2,63,31,743 5,45,39,401
II. Capital Work-in-Progress
At cost as per last balance sheet 3,60,997 6,22,879
Additions during the year 1,08,106 1,26,601
Deductions during the year 2,63,665 2,05,438 3,88,483 3,60,997
III. Land
At cost as per last balance sheet 24,98,636 12,45,683
Additions during the year 12,33,904 13,08,678
Deductions during the year 97,572 55,725
36,34,968 24,98,636
Less: Amortisation till date 7,02,457 29,32,511 4,52,022 20,46,614
 Integrated Annual Report
250 2022-23

(` in 000’)
Particulars As on 31 March, 2023 As on 31 March, 2022
IV. Other Fixed Assets (including Furniture
and Fixtures)
a) Assets given on lease
At cost as per last balance sheet 2,65,352 2,65,352
Less: Depreciation till date 2,65,352 - 2,65,352 -
b) Others
At cost/valuation as per last balance 6,86,74,933 6,46,03,010
sheet
Additions during the year 69,39,880 48,67,443
Deductions during the year 12,39,295 7,95,520
7,43,75,518 6,86,74,933
Less: Depreciation till date 5,93,53,695 1,50,21,823 5,60,79,797 1,25,95,136
B. INTANGIBLE ASSETS
Computer Software
At cost as per last balance sheet 1,20,83,338 1,12,22,581
Additions during the year 8,77,862 8,72,637
Deduction during the Year 11,50,741 11,880
1,18,10,459 1,20,83,338
Less: Amortisation till date 99,61,683 18,48,776 97,12,448 23,70,890
TOTAL 8,82,56,071 7,19,13,038
SCHEDULE 11 - OTHER ASSETS :
I. Inter-Office Adjustments (Net) 2,20,20,700 1,79,97,045
II. Interest Accrued 9,08,48,858 7,68,96,049
III. Tax Paid/ Tax deducted at source (Net of 6,73,41,164 5,39,12,604
provision)
IV. Stationery and stamps 62,780 63,349
V. Non-Banking assets acquired in satisfaction 1,334 1,334
of claims
VI. Others* 27,43,38,697 21,24,01,949
VII. Deferred Tax Assets (Net) 8,65,97,447 12,29,23,747
VIII. MAT Credit Entitlement 4,51,07,869 2,96,77,369
TOTAL 58,63,18,849 51,38,73,446
*Includes Deposit placed with NABARD/SIDBI/
NHB amounting to ₹ 10,61,55,991 (Previous
Year ₹ 9,64,56,088)
SCHEDULE 12 - CONTINGENT LIABILITIES :
I. Claims against the bank not acknowledged 3,02,01,462 3,31,30,212
as debts
II. Liability for partly paid Investments 0,000 0,000
III. Liability on account of outstanding Forward 4,13,13,28,582 4,36,34,96,833
Exchange Contracts
IV. Guarantees given on behalf of Constituents
a) In India 66,40,64,012 65,35,08,697
b) Outside India 1,42,21,966 67,82,85,978 1,65,75,655 67,00,84,352
V. Acceptances, endorsements and other 99,64,00,071 1,26,92,16,524
obligations
VI. Disputed Tax demands under appeals 20,98,89,819 13,77,78,737
VII. Amout transferred to DEAF Scheme 2014 3,19,88,282 2,87,70,887
TOTAL 6,07,80,94,194 6,50,24,77,545
Bills for Collection 43,56,67,177 66,08,94,129
Integrated Annual Report
2022-23 251

Schedules forming part of the Standalone Profit & Loss Account

For the year ended 31st March, 2023
(` in 000’)
For the Year Ended For the Year Ended
Particulars
31 March, 2023 31 March, 2022
SCHEDULE 13 - INTEREST EARNED :

Strategy, Model & Capitals

I. Interest/Discount on advances/bills 56,76,01,357 45,23,55,006
II. Income on Investments 21,35,50,354 19,94,28,382
III. Interest on balances with Reserve Bank of India & other Inter Bank 2,11,68,449 2,14,08,267
Funds
IV. Others 51,13,226 62,47,853
TOTAL 80,74,33,386 67,94,39,508
SCHEDULE 14 - OTHER INCOME :
I. Commission, Exchange and Brokerage 2,15,14,101 1,73,98,170
II. Profit on sale of investments (Net) 79,80,536 3,41,11,874
III. Profit on revaluation of Investments (Net) 28,51,483 (10,70,995)
IV. Profit / (Loss) on sale of land, buildings & other assets (Net) (14,860) (3,489)
V. Profit on exchange transactions (Net) 81,30,829 60,80,630
VI. Income earned by way of Dividends, etc from subsidiaries and/or 3,250 24,700

Notice
joint ventures abroad/ in India
VII. Miscellaneous Income 10,58,66,191 6,87,07,282
TOTAL 14,63,31,530 12,52,48,172
SCHEDULE 15 - INTEREST EXPENDED :
I. Interest on Deposits 44,34,00,344 37,45,42,117
II. Interest on Reserve Bank of India/Inter-Bank Borrowings 1,84,28,879 1,05,59,953
III. Others 1,79,50,734 1,64,72,794
TOTAL 47,97,79,957 40,15,74,864

Statutory Reports
SCHEDULE 16 - OPERATING EXPENSES :
I. Payments to and provisions for employees 12,38,97,058 10,11,46,061
II. Rent, Taxes and Lighting 1,06,77,413 1,07,06,732
III. Printing and Stationery 11,38,303 9,67,655
IV. Advertisement and Publicity 11,70,445 6,13,743
V. Depreciation on Bank's property 73,71,511 73,81,013
VI. Directors' fees, allowances and expenses 14,278 8,287
VII. Auditors' fees and expenses(including branch auditors) 6,89,129 6,30,321
VIII. Law Charges 16,29,256 14,08,632
IX. Postage, Telegrams, Telephones, etc. 32,04,977 31,10,629

Financial Statements
X. Repairs and maintenance 36,09,658 32,71,779
XI. Insurance 1,53,61,120 1,28,77,009
XII. Other expenditure 5,05,50,171 4,22,58,874
TOTAL 21,93,13,319 18,43,80,735
 Integrated Annual Report
252 2022-23

Significant Accounting Policies (Standalone) : Schedule 17

1. Basis of Preparation 3.5. Income (Other than interest) on investments in

“Held to Maturity” (HTM) category acquired at
The financial statements have been prepared in
discount to the face value is recognized as follows:
accordance with requirements prescribed under the
Third Schedule of the Banking Regulation Act, 1949. The 3.5.1.On interest bearing securities, it is recognized only
accounting and reporting policies of the Bank used in at the time of sale/ redemption.
the preparation of these financial statements conform 3.5.2. On Zero- coupon securities, it is accounted
to Generally Accepted Accounting Principles in India for over the balance tenor of the securities on a
(Indian GAAP), the guidelines issued by Reserve Bank constant yield basis.
of India (RBI) from time to time and the Accounting
3.6. Dividend is accounted on an accrual basis where
Standards (AS) issued by the Institute of Chartered
the right to receive the dividend is established.
Accountants of India (ICAI) to the extent applicable and
practices generally prevalent in the banking industry in 3.7. Sale of NPAs accounted in terms of extant RBI
guidelines.
India.
3.8. Interest on Income-tax refunds is accounted for
2. Use of Estimates
on receipt of Intimation order from the Income Tax
The preparation of financial statements requires the Department.
management to make estimates and assumptions
considered in the reported amount of Assets and 4. Appropriation of Recovery :
Liabilities (including Contingent Liabilities) as of the Recoveries other than by way of OTS/NCLT shall be
date of the financial statements and the reported appropriated as under:
Income and Expenses during the reporting period.
4.1. When there is no agreement between the debtor
Management believes that the estimates wherever
and creditor as to how monies paid by the debtor are
used in the preparation of the financial statements are
required to be appropriated by the creditor, the order of
prudent and reasonable. Difference between the actual
appropriation is as under:
results and estimates is recognized in the period in
which the results are known / materialized. For Term Loans:

3. Revenue Recognition  Towards expenses & costs etc.

3.1. Income and Expenditure have been accounted for
 Towards unrecovered interest reversed on the date
on accrual basis unless otherwise stated.
of NPA.
3.2. Income on Non-Performing Assets (NPAs) is
 Interest held in dummy ledger (unapplied interest).
recognized to the extent realized as per the
prudential norms prescribed by the RBI. Income  Towards arrears of principal/EMI till the date of
accounted for in the preceding year and remaining recovery.
unrealized is derecognized in respect of assets
classified as NPAs during the year.  Towards running ledger balance.

3.3. Commission on Letter of Guarantee/Letter of For Running Accounts:

Credit is accounted on accrual basis.
 Towards expenses & costs etc.
3.4. Exchange and brokerage earned, rent on Safe
Deposit Lockers, income from Aadhaar cards,  Towards interest held in dummy ledger (unapplied
Minimum balance charges etc. are accounted for interest) including unrecovered interest reversed at
on realization basis. the time of NPA.
Integrated Annual Report
2022-23 253

 Towards principal. 6.1.1. Government Securities

4.2. In case borrower stipulates terms of appropriation 6.1.2. Other Approved Securities
differently than above and if such different terms of
6.1.3. Shares
appropriation is accepted by Bank then appropriation of
recoveries will be as per the sanction terms. 6.1.4. Debentures & Bonds

4.3. In case of OTS & all NCLT accounts, recovery either 6.1.5. Investments in Subsidiaries & Joint Ventures

Strategy, Model & Capitals

through resolution/liquidation: and

Appropriation of recovery to be done as discussed here 6.1.6. Other Investments

under or as per the sanction stipulations
The Investment portfolio of the Bank is further classified
 Towards principal. in accordance with the RBI guidelines contained in
Master Circular DoR.MRG.42/21.04.141 /201-22 dated
 Towards interest held in dummy ledger (unapplied August 25, 2021 (updated March 23,2022, March 31,
interest) including unrecovered interest reversed at 2022, April 08, 2022 and December 08, 2022) into three
the time of NPA. categories viz.,

 Towards expenses & costs etc. a) Held to Maturity (HTM)

4.4. In case of Non-Performing Investment recovery will be b) Available for Sale (AFS)

Notice
apportioned as mentioned below:
c) Held for Trading (HFT)
a. Towards expenses & costs etc.
6.2. As per RBI guidelines, the following principles
b. Towards unrecovered interest reversed on the date have been adopted for the purpose of valuation
of NPI.
6.2.1. Securities held in “HTM” – at acquisition cost.
c. Interest held in dummy ledger (unapplied interest).
6.2.1.1. The excess of acquisition cost over the face

Statutory Reports
d. Towards arrears of principal/EMI till the date of
value is amortized over the remaining period
recovery.
of maturity and in case of discount; it is not
e. Towards running ledger balance recognized as income.

5. Cash Flow Statements: 6.2.1.2. Investments in Regional Rural Banks are valued
Cash Flow statement of the Bank is prepared as per AS- at carrying cost.
3. Cash Flow statement is mainly classified as:
6.2.1.3. Investments in Subsidiaries and Joint Ventures
5.1. Cash flow from Operating Activities: This activity are valued at carrying cost.

Financial Statements
includes cash flow generated from Operational
activities. 6.2.1.4. Diminution, other than temporary, in the value
of its investment in subsidiaries/joint ventures,
5.2. Cash Flow from Investing Activities: This activity
which are included in HTM shall be provided for.
includes cash flow generated from investments.

5.3. Cash Flow from Financials Activities: This activity 6.2.2. Securities held in “AFS” and “HFT” categories
includes the cash flow generated from financial
6.2.2.1. Securities held in “AFS” and “HFT” categories are
instruments.
valued classification wise and scrip-wise and
6. Investments net depreciation, if any, in each classification
6.1. In conformity with the requirements of Form A is charged to Profit & Loss account while net
of the Third Schedule to the Banking Regulations appreciation, if any, is ignored.
Act, 1949, Investments are classified as under:
 Integrated Annual Report
254 2022-23

6.2.2.2. Valuation of securities is arrived at as follows: I Security Receipts Valuation of the same will be
done as per RBI Guidelines
A Govt. of India As per Quotation put out by on classification, valuation
Securities Financial Benchmarks India and operation of Investment
(Central Govt. Pvt Ltd (FBIL) portfolio of commercial Banks
Securities) (RBI/DOR/2021-22/81 DOR.
B State Development On appropriate yield to MGR.42/21.04.141/2021-22)
Loans, State Govt. maturity basis as per FIMMDA dated Aug 25, 2021 and as
Securities, Securities Guidelines amended from time to time.
guaranteed by
Central/ State 6.3. Interbank/RBI Repo and Interbank/ RBI Reverse
Government, PSU Repo transactions are accounted for in accordance
Bonds with extant RBI guidelines.
C Equity Shares As per Market rates, if quoted,
6.4. As per the extant RBI guidelines, the shifting
otherwise at break-up value,
as per latest audited balance of securities from one category to another is
sheet (not more than 18 accounted for as follows:
months old). In absence of
both, at ` 1/- per company. The 6.4.1. From AFS/HFT categories to HTM category,
break-up value is computed at lower of book value or market value as on
excluding revaluation reserve. the date of shifting. Depreciation, if any, is fully
provided for.
D Preference Shares As per Market rates, if quoted,
or on appropriate yield to
6.4.2. From HTM category to AFS/HFT category,
maturity basis not exceeding
redemption value as per 6.4.2.1. If the security is originally placed at discount in
FIMMDA guidelines.
HTM category, at acquisition cost / book value.
E Debentures/Bonds As per Market rates, if quoted,
otherwise on appropriate 6.4.2.2. If the security is originally placed at a premium,
yield to maturity basis as per at amortized cost.
FIMMDA guidelines.
F Mutual Funds(MF) As per stock exchange The securities so shifted are revalued immediately and
quotations, if quoted. In case resultant depreciation is fully provided for.
of unquoted units, as 6.4.3. From AFS to HFT category and vice versa, at
per latest Repurchase price book value.
declared by concerned MF. In
cases where latest repurchase 6.5. The non-performing investments are identified and
price is not available, as per depreciation / provision is made as per the extant
Net Asset Value (NAV)
RBI guidelines.
G Treasury Bills At carrying cost
/ Certificate 6.6. Profit / Loss on sale of investments & net
of Deposits / depreciation on investment in any category are
Commercial Papers taken to the profit & loss account (net appreciation
H Venture Capital At declared NAV or Breakup is ignored). However, in case of profit on sale of
Funds (VCF) NAV as per audited Balance investments in “HTM” category, an equivalent
Sheet which is not more amount (net of taxes and net of transfer to Statutory
than 18 months old. If NAV / Reserves) is appropriated to the Capital Reserve
audited financial statements
account.
are not available for more than
18 months continuously, at 6.7. Commission, brokerage, broken period interest etc.
`1/- per VCF
on securities is debited / credited to Profit & Loss
Account.

6.8. Brokerage and STT paid on purchase and sale of

Equity is accounted to price of the deal.

6.9. The Amortization of premium on HTM Securities is

Integrated Annual Report
2022-23 255

computed using Straight-line Method. and non-performing, based on the guidelines issued
by the RBI. Loan Assets become Non-Performing
6.10. The Bank is following weighted average Price Assets (NPAs) where:
(WAP) for accounting of investment portfolio.
7.2.1. In respect of term loans, interest and/or
6.11. As per the extant RBI guidelines, the Bank instalment of principal remains overdue for a
follows ‘Settlement Date’ for accounting of period of more than 90 days;
investments transactions.
7.2.2. In respect of Overdraft or Cash Credit advances,

Strategy, Model & Capitals

6.12. Income from the units of Mutual Fund, Venture the account remains “out of order”, i.e.
Capital & Security Receipt shall be recognized
on Cash Basis. 7.2.2.1. the outstanding balance in the CC/OD
account remains continuously in excess of
6.13. Derivative Contracts the sanctioned limit/drawing power for 90
days.
6.13.1. The Interest Rate Swap which hedges interest
bearing Asset or Liability are accounted for 7.2.2.2. The outstanding balance in the CC/OD
in the financial statements on accrual basis account is less than the sanctioned limit/
except the swap designated with an Asset or drawing power but there are no credits
Liability that is carried at market value or lower continuously for 90 days, or
of cost or market value. Gains or losses on
the termination of swaps are recognized over 7.2.2.3. the outstanding balance in the CC/OD
the shorter of the remaining contractual life of account is less than the sanctioned limit/

Notice
the swap or the remaining life of the Asset / drawing power but credits are not enough
Liability. to cover the interest debited during the
previous 90 days period.
6.13.2. Trading swap transactions are marked to
market with changes recorded in the financial 7.2.3. In respect of bills purchased/discounted, the
statements. (profit if any, is ignored) bill remains overdue for a period of more than
90 days;
6.13.3. In the case of option contracts, guidelines
issued by Foreign Exchange Dealers 7.2.4. In respect of agricultural advances for short

Statutory Reports
Association of India (FEDAI) from time to duration crops, where the instalment of
time for recognition of income, premium and principal or interest remains overdue for two
discount are being followed. crop seasons.

6.13.4. Arbitrage Income earned on forex swap 7.2.5. In respect of agricultural advances for long
transactions is accounted in Profit / Loss on duration crops, where the principal or interest
Exchange Transactions category. remains overdue for one crop season.

7. Advances 7.2.6. A working capital borrower account will

7.1. All advances are classified under four become NPA if such irregular drawings are
categories: permitted in the account for a continuous

Financial Statements
period of 90 days even though the unit may be
7.1.1. Standard, working or the borrower’s financial position is
satisfactory.
7.1.2. Sub-standard,
7.2.7. An account where the regular/ ad hoc credit
7.1.3. Doubtful and limits have not been reviewed/ renewed within
180 days from the due date/ date of ad hoc
7.1.4. Loss assets.
sanction will be treated as NPA.
Provisions required on such advances are made as
7.2.8. The amount of liquidity facility remains
per the extant prudential norms issued by the RBI
outstanding for more than 90 days, in respect of
in terms of Master Circular RBI/2022-2023/15 DOR.
a securitization transaction undertaken in terms
STR.REC.4/21.04.048/2022-23 dated April 01,2022 as
of the Reserve Bank of India (Securitization of
under:
Standard Assets) Directions, 2021
7.2. Loans and Advances are classified as performing
 Integrated Annual Report
256 2022-23

7.2.9. In respect of derivative transactions, the necessary provision in this regard.

overdue receivables representing positive
mark-to-market value of a derivative contract, 7.3. NPAs are classified into Sub-Standard, Doubtful
if these remain unpaid for a period of 90 days and Loss Assets, based on the following
from the specified due date for payment. criteria stipulated by RBI:

7.2.10. Accounts where there is erosion in the value of 7.3.1. Sub-standard: A loan asset that has remained
security/frauds committed by borrowers non-performing for a period less than or equal
to 12 months,
7.2.10.1. In respect of accounts where there are potential
threats for recovery on account of erosion 7.3.2. Doubtful: A loan asset that has remained in the
in the value of security or non-availability of sub-standard category for a period exceeding
security and existence of other factors such 12 months,
as frauds committed by borrowers it will not
7.3.3. Loss: A loan asset where loss has been
be prudent that such accounts should go
identified but the amount has not been fully
through various stages of asset classification.
written off.
In cases of such serious credit impairment,
the asset should be straightaway classified as 7.4. Provisions are made for NPAs as per the
doubtful or loss asset as appropriate. extant guidelines prescribed by the regulatory
authorities, subject to minimum provisions as
7.2.10.2. E
 rosion in the value of security can be reckoned
prescribed below:
as significant when the realizable value of the
security is less than 50 per cent of the value
Sub-Stan- i. A general of 15% of the total outstand-
assessed by the bank or accepted by RBI at dard ing
the time of last inspection, as the case may Assets: ii. Additional provision of 10% for expo-
be. Such NPAs may be straightaway classified sures which are unsecured ab-initio;
under doubtful category. iii. However, Unsecured Exposure, ab-in-
itio, in respect of infrastructure loan
7.2.10.3. If the realizable value of the security, as accounts where certain safeguards
assessed by the bank/ approved valuers/RBI is such as escrow accounts are available
less than 10 per cent of the outstanding in the - 20% (instead of 25% as stated above)
borrowal accounts, the existence of security Doubtful-Se- i. Up to one year – 25%
should be ignored and the asset should be cured ii. One to three years – 40%
straightaway classified as loss asset Portion iii. More than three years – 100%
Doubtful 100%
7.2.11. In respect of MSME accounts which will be Unsecured
restructured in terms of RBI Circular No DOR. Portion
No.BP.BC.34/21.04.048/2019-20 February 11,
Loss Asset 100%
2020 with reference to Circular No DBR.No.BP.
BC.18/21.04.048/2018-19 dated 1st January, 7.5. Advances are stated net of specific loan loss
2019 and kept in standard category, the Bank
provisions, Counter cyclical provisioning buffer
shall maintain a provision of 5% in addition
to the provision already held. Reversal of said and unrecovered interest held in Sundry /claims
provision shall be made in accordance with the received from Credit Guarantee Trust Fund (CGTF)
said circular. / Export Credit Guarantee Corporation (ECGC)
relating to non-performing assets.
7.2.12. In terms of RBI guidelines relating to ‘Covid 19
Regulatory Package’ on Asset Classification 7.6. In respect of foreign offices, classification of
and Provisioning RBI has issued circular
loans and advances and provisions for NPAs are
no.DOR.No.BP.BC/3/21.04.048/2020-21 &
circular no. DOR.No.BP.BC/4/21.04.048/2020- made as per the local regulations or as per the
21 dated 06th August, 2020, DoR.STR. norms of RBI, whichever is more stringent.
REC.12/21.04.048/2021-22 & DoR.STR.
REC.11/21.04.048/2021-22 dated May 7.7. For restructured/rescheduled assets, provisions
05th, 2021 with reference to restructuring of are made in accordance with the guidelines
Corporate & Retail Loan, Bank shall maintain issued by the RBI, which require that the difference
Integrated Annual Report
2022-23 257

between the fair value of the loan before and The applicable rates of depreciation are as under:
after restructuring is provided for, in addition to
provision for NPAs. S. Useful Life Rate in
Capital Asset
No. (Years) percentage
7.8. In the case of loan accounts classified as NPAs, 1 Immovable Property- Not
Land stipulated;
an account may be reclassified as a performing
accordingly, NIL
asset if it conforms to the guidelines prescribed no
by the regulators. depreciation

Strategy, Model & Capitals

2 Building with RCC
7.9. Amounts recovered against debts written off are frame structure (Both
60 1.67
recognized as revenue in the year of recovery. Residential & Non-
residential)
7.10. The general provision on Standard Advances is 3 Furniture 10 10.00
held in “Other Liabilities and Provisions” reflected 4 Fixtures 10 10.00
in schedule 5 of the Balance Sheet and is not 5 Air-conditioning
considered for arriving at both net NPAs and net plants (Package &
10 10.00
advances. Standard Assets provision to be water/air cooled
ductable)
made as per IRAC RBI/2022-2023/15 DOR.STR.
6 Split & Window Air
REC.4/21.04.048/2022-23 dated April 01,2022 5 20.00
conditioners
and any subsequent circular issued from time to

Notice
7 Electrical installation
time. 5 20.00
and equipments

7.11. Provision on Suspense accounts entries 8 Solar Power

15 6.67
Equipment
outstanding for more than six months are made
9 Elevators & Lifts 15 6.67
at 100% except the claim receivable from Govt./
10 Civil & Flooring work
Govt. Bodies like Interest Subsidy on crop loan/ 5 20.00
in leased Premises
export advance, Pension receivable etc.
11 Telephone Equipment 5 20.00

Statutory Reports
8. Property, Plant and Equipment 12 Motorcycles,
Scooters & other 10 10.00
8.1. Premises and Other Fixed Assets are stated at cost, mopeds
net of accumulated depreciation and accumulated 13 Motor Cars,
impairment losses, if any. The cost comprises Motor Lorries and
of purchase price, eligible borrowing costs and Electrically operated
vehicles including 8 12.50
directly attributable costs of bringing the Asset to
battery powered or
its working condition for the intended use less trade fuel cell powered
discounts and rebates. Subsequent expenditure vehicles
incurred on assets put to use is capitalized only 14 Mobile Phones 3 33.33
when it increases the future benefits from such 15 Generators 15 6.67 Financial Statements
assets or their functional capability. Land and 16 Office Equipment/
5 20.00
Buildings, if revalued are stated at revalued amount. Appliances,
The appreciation on revaluation is credited to 17 Computers &
computer software
Revaluation Reserve and the depreciation provided 3 33.33
forming integral part
thereon is deducted there from and shall be credited of hardware
to Revenue Reserves in terms of revised AS-10 on 18 ATM & allied items 5 20.00
“Property, Plant and Equipment”. 19 UPS & allied items 5 20.00

8.2. Depreciation on Fixed Assets is provided for on 20 Servers & Networks 6 16.66
the Straight-Line Method at the rates prescribed in
Expenditure Policy of the Bank from time to time.
 Integrated Annual Report
258 2022-23

S. Useful Life Rate in The Bank has a policy of creation and utilization of
Capital Asset Counter Cyclical Provisioning Buffer separately for
No. (Years) percentage
21 End user devices Advances and Investments. The quantum of provision
such as desktops, to be created is assessed at the end of each financial
laptops, i-pads, year. The counter Cyclical Provisions are utilized only
3 33.33
tablets, printer &
Scanner, digital for contingencies under extra ordinary circumstances
watches etc. specified in the policy with prior permission of the RBI.
22. SDV lockers, Strong
Room door, Cash 11. Transactions involving Foreign Exchange
20 5.00
Safe etc. (Along with Accounting for transactions involving foreign exchange
Fixtures).
is done in accordance with AS-11 on “The Effects of
23. Items provided to
Changes in Foreign Exchange Rates”, issued by the
staff (Furniture/ 5 20.00
Electrical and etc.) ICAI. In terms of AS-11, the foreign currency operations
of the Bank are classified as a) Integral Operations and
8.3. Depreciation on premises is provided on composite b) Non Integral Operations.
cost, wherever the value of Land and Buildings is
not separately identifiable. All overseas branches, offshore banking units, overseas
subsidiaries are treated as non- integral operations
8.4. Depreciation on Leased assets and Leasehold and domestic operations in foreign exchange and
improvements is recognized on a straight-line representative offices are treated as integral operations.
basis using rates determined with reference to the
primary period of lease. Accounting for Integral operations:
11.1. Monetary and Non- Monetary Assets and
9. Impairment of Assets
Liabilities are revalued at the exchange rates
Impairment losses (if any) on Fixed Assets (including notified by FEDAI at the close of the year and
revalued assets) are recognised in accordance with AS- resultant gain / loss is recognized in the Profit &
28 on “Impairment of Assets” issued by the ICAI and Loss Account.
charged off to Profit and Loss Account. The carrying
costs of assets are reviewed at each Balance sheet 11.2. Income & Expenditure items are recognized at
date if there is any indication of impairment based the exchange rates prevailing on the date of the
on internal/external factors. An impairment loss is transaction.
recognized wherever the carrying cost of an asset
11.3. Forward exchange contracts are recorded at
exceeds its recoverable amount. The recoverable
the exchange rate prevailing on the date of
amount is the greater of the assets net selling price and
commitment. Outstanding forward exchange
value in use. In assessing value in use, the estimated
contracts are revalued at the exchange rates
future cash flows are discounted to their present value
notified by FEDAI for specified maturities and at
using a pre-tax discount rate that reflects current market
interpolated rates for contracts of ‘in-between’
assessments of the time value of money and risks
maturities. The resultant gains or losses are
specific to the asset. After impairment, depreciation
recognized in the Profit & Loss account.
is provided on the revised carrying cost of the asset
over its remaining useful life. A previously recognized 11.4. Contingent liabilities on account of guarantees,
impairment loss is increased or reversed depending acceptances, endorsements and other obligations
on changes in circumstances. However, the carrying are stated at the exchange rates notified by FEDAI
value after reversal is not increased beyond the carrying at the close of the year.
value that would have prevailed by charging usual
depreciation if there was no impairment.
12. Accounting for Non–Integral operations
12.1. Revenue Recognition
10. Counter Cyclical Provisioning Buffer
Integrated Annual Report
2022-23 259

Income and Expenditure are recognized / procedures of the employees concerned, these
accounted for as per the local laws of the contributions retained with the Bank. The
respective countries. Bank recognizes such annual contributions in
the year to which they relate. Upon receipt of
12.2. Asset Classification and Loan Loss
the Permanent Retirement Account Number
Provisioning
(PRAN), the consolidated contribution amounts
Asset classification and loan loss provisioning are transferred to the NPS trust.
are made as per the local laws of the respective
13.2.2. Defined Benefit Plan:

Strategy, Model & Capitals

countries or as per RBI guidelines whichever is
higher. Gratuity, Pension and Leave Encashment are
defined benefits plans. These are provided
12.3. Fixed Assets and Depreciation
for on the basis of an actuarial valuation
12.3.1. Fixed Assets are accounted for at historical as per Accounting Standard-15 “Employee
cost. Benefit” issued by the Institute of Chartered
Accountants of India, made at the end of
12.3.2. Depreciation on Fixed Assets is provided as per each financial year, based on the projected
the applicable laws of the respective countries. unit credit method. Actuarial gains/losses are
immediately taken to the Profit & Loss account.
12.4. Assets and Liabilities (monetary and non-
monetary as well as Contingent Liabilities) are 14. Segment Reporting
translated at the closing rates notified by FEDAI
The Bank recognizes the Business segment as the

Notice
at the close of the year.
Primary reporting segment and Geographical segment
12.5. Income & Expenditure are translated at the as the Secondary reporting segment, in accordance
quarterly average closing rates notified by with the RBI guidelines and in the compliances with the
FEDAI at the end of respective quarters. Accounting Standard-17 “Segment Reporting” issued
by the Institute of Chartered Accountants of India.
12.6. All resulting exchange differences are Business segments are classified into
accumulated in ‘Foreign Currency Translation 14.1. Treasury Operations,
Reserve’.
14.2. Corporate and Wholesale Banking,

Statutory Reports
13. Employee Benefits:
13.1. Short Term Employment Benefits: 14.3. Retail Banking Operations and

The undiscounted amounts of short-term (w/w Digital Banking Segment as and when
employee benefits (e.g. medical benefits) applicable)
payable wholly within twelve months of 14.4. Other Banking Operations.
rendering the services are treated as short
term and recognized during the period in which 15. Lease Transactions
the employee rendered the service.
Lease payments for Assets taken on operating lease

Financial Statements
13.2. Long term Employee Benefits: recognized as an expense in the profit and loss account
on a straight-line basis over the lease term.
13.2.1. Defined Contribution Plans:

The Bank operates a new pension scheme 16. Earnings per Share
(NPS) for all officers/employees joining the The Bank reports the basic and diluted Earnings per
Bank on or after 1st April,2010, which is a Share in accordance with AS 20. Earnings per Share is
defined contribution plan, such new joinees
calculated by dividing the net Profit or Loss (after tax)
not being entitled to become members of the
for the year attributable to the Equity shareholders by the
existing Pension Scheme. As per the scheme,
the covered employees contribute 10% of weighted average number of Equity shares outstanding
their basic pay plus dearness allowance to the during the year. Diluted earnings per share reflect the
scheme together with 14% of their basic pay potential dilution that could occur if contracts to issue
plus dearness allowance as contribution from Equity shares were exercised or converted during the
the Bank. Pending completion of registration
 Integrated Annual Report
260 2022-23

year. Diluted earnings per Equity share is calculated by account in terms of Section 52 of the Companies Act,
using the weighted average number of Equity shares 2013.
and dilutive potential Equity shares outstanding as at
20. Consolidation of the Accounts:
the year-end.
Bank is having five subsidiaries i.e. Union Asset
17. Taxation: Management Company Private Limited, Union Trustee
Company Private Limited, Union Bank of India (UK)
This comprises of provision for Income tax and deferred
Limited, Andhra Bank Financial Services Limited and
tax charge or credit (reflecting the tax effects of timing UBI Services Ltd.
differences between accounting income and taxable
Bank is having three Joint Ventures i.e. Star Union Dai-
income for the period) as determined in accordance Ichi Life Insurance Company Ltd., ASREC (India) Ltd.
with AS-22 on “Accounting for taxes on Income” and India International Bank (Malaysia) Berhad.
issued by the ICAI. Provision for Tax is made for both Bank is having one associate Chaitanya Godavari
current and deferred taxes. Current tax is provided on Grameen Bank.
the taxable income using applicable tax rate. Deferred The consolidated financial statements are prepared on
Tax Assets and Deferred Tax Liabilities arising on the basis of:
account of timing differences and which are capable of 20.1. Audited Accounts of the parent bank (Union
reversal in subsequent periods are recognized using the Bank of India)
tax rates and the tax laws that have been enacted or
20.2. Consolidation of Subsidiaries: Line by Line
substantively enacted till the date of the Balance Sheet.
aggregation of the Income/Expenditure/
Deferred Tax Assets are not recognized unless there
Assets/Liabilities of the subsidiaries with
is ‘reasonable certainty’ that sufficient future taxable the respective line item of the parent bank,
income will be available against which such Deferred after eliminating all intra-group transactions,
Tax Assets will be realized. In case of carry forward of unrealized profits/loss in terms of AS 21 on
unabsorbed depreciation and tax losses, Deferred Tax Consolidated Financial Statements issued by
Institute of Chartered Accountants of India
Assets are recognized only if there is “virtual certainty”.
(ICAI).
18. Provisions, Contingent Liabilities and Contingent 20.3. Consolidation of Associates: The Investment
Assets in Associate is accounted for consolidation
In terms of AS 29-Provisions, Contingent Liabilities as per Equity Method in terms of AS 23 on
and Contingent Assets issued by the ICAI, the Bank Accounting for Investments in Associates in
Consolidated Financial Statement issued by
recognizes provisions only when it has a present
Institute of Chartered Accountants of India
obligation as a result of a past event, it is probable that (ICAI).
an outflow of resources embodying economic benefits
will be required to settle the obligation and when a 20.4. Consolidation of Joint Ventures: Line by Line
consolidation is done with proportionate share
reliable estimate of the amount of the obligation can
in Joint Venture in terms of AS-27 on Financials
be made. Contingent Assets are not recognized in Reporting in Interest of Joint Venture issued
the financial statements since this may result in the by Institute of Chartered Accountants of India
recognition of income that may not be realized. (ICAI).

19. Share Issue Expenses:

Share Issue expenses are charged to the Share Premium
Integrated Annual Report
2022-23 261

SCHEDULE 18 – NOTES TO ACCOUNTS (STANDALONE):

DISCLOSURES IN TERMS OF THE RESERVE BANK OF INDIA GUIDELINES

1. REGULATORY CAPITAL
The Bank is subjected to Basel III capital adequacy guidelines stipulated by RBI with effect from April 1, 2013. The
guidelines provide a transition schedule for Basel III implementation till Oct. 1, 2021. As per RBI Guidelines, Basel III has
been completely implemented from Oct. 1, 2021. As per guidelines, the Tier I capital is made up of Common Equity Tier

Strategy, Model & Capitals

I (CET I) and Additional Tier I Capital (AT 1).

Basel III guidelines require the Bank to maintain minimum capital to Risk Weighted Assets ratio (CRAR) of 11.50% with
minimum CET I of 8.00% and minimum Tier I CRAR of 9.50% (both inclusive of Capital Conservation Buffer of 2.50%) as
at March 31, 2023.

During the year, the Bank has issued Basel III compliant Tier-2 bonds of ₹ 2,200 Crore & additional Tier-1 Bonds of ₹
1,983 crore in tranches and exercised call option for redemption of Basel III compliant Tier-2 bonds of ₹ 2,300.00 crore
& additional Tier-1 Bonds of ₹ 1,000.00 crore.

a) Composition of Regulatory Capital:

(` in Crore)

Notice
Sr.
Particulars 31.03.2023 31.03.2022
No
i. Common Equity Tier 1 capital (CET 1) 71,491.90 58,048.85
(net of deductions, if any)
ii. Additional Tier 1 capital 8,985.99 8,539.83
iii. Tier 1 capital (i + ii) 80,477.89 66,588.68
iv. Tier 2 capital 12,300.56 12,692.32
v. Total capital (Tier 1+Tier 2) 92,778.45 79,281.00

Statutory Reports
vi. Total Risk Weighted Assets (RWAs) 5,78,454.82 5,45,922.81
vii. CET 1 Ratio (CET 1 as a percentage of RWAs) 12.36 10.63
viii. Tier 1 Ratio (Tier 1 capital as a percentage of RWAs) 13.91 12.20
ix. Tier 2 Ratio (Tier 2 capital as a percentage of RWAs) 2.13 2.32
x. Capital to Risk Weighted Assets Ratio (CRAR) (Total Capital as a 16.04 14.52
percentage of RWAs)
xi. Leverage Ratio 5.73 5.17
xii. Percentage of the shareholding of
a) Government of India 83.49 83.49
Financial Statements
b) State Government -- --
c) Sponsor Bank -- --
xiii. Amount of paid-up equity capital raised during the year -- 1,447.17
xiv. Amount of non-equity Tier 1 capital raised during the year, of which:
a) Basel III compliant Perpetual Non-Cumulative Preference Shares -- --
b) Basel III compliant Perpetual Debt Instruments 1,983.00 5,000.00
xv. Amount of Tier 2 capital raised during the year, of which --
a) Perpetual Cumulative Preference Shares -- --
b) Redeemable Non-Cumulative Preference Shares -- --
c) Basel III compliant Redeemable non convertable tier II Bonds 2,200.00 2,000.00
 Integrated Annual Report
262 2022-23

b) Draw down from Reserves

During the year 2022-23, the Bank has not drawn any amount from other reserves towards unamortized of Frauds.
However, Bank has drawn ₹ 583.20 Crore from Investment Fluctuation Reserve.
2. ASSET LIABILITY MANAGEMENT
a) Maturity pattern of certain items of assets and liabilities
Current Year 2022-23
(` in crore)
>6
2-7 8-14 15-30 31 days-2 >2-3 >3-6 >1-3 >3-5 >5
Day 1 months-1 TOTAL
DAYS DAYS DAYS months months months years years years
year
Deposits 16,719.54 24,897.19 17,582.29 15,386.37 27,291.25 46,680.66 82,771.68 1,63,434.74 1,61,274.09 80,204.10 4,81,474.41 1117716.32

Advances 19,713.45 31,128.05 23,916.23 49,224.70 18,235.92 31,896.75 50,852.13 54,002.81 3,36,508.35 47,328.90 99,038.17 7,61,845.46
Investments 87,469.35 10,712.95 888.30 2,993.82 5,506.13 17,324.42 5,710.88 8,220.90 68,822.45 17,556.16 1,14,093.69 3,39,299.05
Borrowings 963.24 8,333.29 4,085.78 1,996.21 572.85 254.44 2,123.29 3,610.00 2,310.97 1,996.06 16,891.33 43,137.47
Foreign 5,317.26 5,843.41 1,016.52 10,915.50 3,748.05 3,259.63 13,035.32 5,403.49 11,913.15 9,366.84 187.01 70,006.19
Currency
assets
Foreign 4,984.28 1,553.01 998.49 2,717.99 2,947.61 4,647.05 3,478.54 3,586.05 8,792.19 6,039.50 315.07 40,059.79
Currency
liabilities

Previous year 2021-22

(` in crore)
>6
2-7 8-14 15-30 31 days-2 >2-3 >3-6 >1-3 >3-5 >5
Day 1 months-1 TOTAL
DAYS DAYS DAYS months months months years years years
year
Deposits 12,750.62 22,568.14 15,505.37 24,224.17 31,592.76 34,111.25 77,995.40 1,47,057.37 1,20,848.10 86,172.71 4,59,566.76 1032392.63

Advances 6,038.86 11,250.55 9,483.94 21,912.53 4,709.33 17,723.78 34,326.71 62,738.47 2,98,295.75 71,329.79 1,23,194.95 6,61,004.66
Investments 1,44,407.71 18,199.02 1,748.39 5,135.88 1,441.91 22,859.62 26,503.85 25,831.24 13,504.34 20,494.70 68,380.73 3,48,507.39
Borrowings 803.30 778.30 602.84 1,132.91 831.74 1,104.87 1,713.57 5,643.17 19,676.78 3,676.24 15,215.38 51,179.10
Foreign 4,900.56 2,797.74 2,961.84 2,339.01 3,635.01 5,975.17 4,771.74 5,434.65 10,170.15 7,449.49 27.23 50,462.59
currency
assets
Foreign 2,921.98 927.90 1,638.95 1,650.41 1,661.87 3,276.05 3,395.36 5,638.17 6,322.48 6,492.50 265.12 34,190.79
currency
liabilities

b) Liquidity Coverage Ratio

LCR aims to ensure that a bank maintains an adequate level of unencumbered High-Quality Liquid Assets (HQLAs)
that can be converted into cash to meet its liquidity needs for a 30 calendar day time horizon under a significantly
severe liquidity stress scenario specified by RBI.

LCR is the ratio of HQLA to Net Cash Outflow.

HQLA
LCR =
Net Cash Outflows over 30 days

High Quality Liquid Assets (HQLA):

Liquid assets comprise of high quality assets that can be readily sold or used as collateral to obtain funds in a range
of stress scenarios. They should be unencumbered i.e. without legal, regulatory or operational impediments. Assets
are considered to be high quality liquid assets if they can be easily and immediately converted into cash at little or
no loss of value. HQLA is categorized into two : a) Level 1 Assets, and b) Level 2 Assets. Level 2 Assets are further
sub divided into Level 2A Assets & Level 2B Assets based on Liquidity & Price Volatility.
Integrated Annual Report
2022-23 263

Minimum requirement of LCR as stipulated by RBI is 100% for the calendar year 2019 onwards. LCR is applicable to
bank’s domestic operations as well as overseas operations.

Level 1 assets are stock of HQLA without any haircut. Level 1 Assets mainly comprise Cash including excess Cash
Reserve Ratio (CRR) , Excess SLR (Statutory Liquidity Ratio), Marginal Standing Facility (2% of Net Demand and
Time Liability w.e.f. 01st January 2022) & FALLCR (16.00% of Net Demand and Time Liability).

A haircut of 15% is applied on current market value of Level 2A asset. Level 2A assets mainly comprise of securities

Strategy, Model & Capitals

with 20% risk weight. A 50% haircut is applied on current market value of Level 2B asset. Level 2B assets should not
be more than 15% of the total stock of HQLA. Level 2B assets mainly comprise Securities with risk weights higher
than 20% but not higher than 50%.

Net Cash Outflows

The total net cash outflows is defined as the total expected cash outflows minus total expected cash inflows.
In order to determine cash outflows, the Bank, in terms of RBI guidelines, segregates its deposits into various
customer segments, viz Retail (which include deposits from Natural Persons), Small Business Customers (those
with total aggregated funding upto ` 7.5 crore) and deposits from Non Financial Customers (NFC) and Other Legal
Entity Customers (OLE). Total expected cash inflows are calculated by multiplying the outstanding balances of
various categories of contractual receivables by the rates at which they are expected to flow in, up to an aggregate

Notice
cap of 75% of total expected cash outflows.

Brief about LCR of the Bank

The entities covered are Union Bank of India Ltd. And Union Bank of India UK Ltd. The Bank during the three months
ended 31st March 2023 maintained average HQLA of ₹ 2,70,381 crores. Level 1 assets are the main drivers of HQLA
for the bank. They contribute to 97% of the total stock of HQLA. Based on daily averages for the quarter ended
31st March 2023, Facility to avail Liquidity for Liquidity Coverage Ratio constitutes the highest portion to HQLA i.e.
around 64% of the total HQLA. Level 2 assets which are lower in quality as compared to Level 1 assets, constitute

Statutory Reports
3% of the total stock of HQLA against maximum permissible level of 40%.

Bank’s exposure is mainly in Indian Rupee. Unsecured wholesale funding constitute major portion of total funding
sources. Retail deposits and deposits from small business customers contributed around 22% and 4% of the total
weighted cash outflows, respectively. Deposits from non-financial corporates contributed around 43% of the total
weighted cash outflows. The other contingent funding obligations primarily include bank guarantees (BGs) and
letters of credit (LCs) issued on behalf of the Bank’s clients. Inflows by various counterparties contribute around
77% of the total weighted cash inflows.

Bank has calculated LCR for all working days over the March 2023 quarter. The average of the daily observation of

Financial Statements
66 data points is calculated. The average LCR for the quarter ended 31st March 2023 is 167.42% as against 157.20%
for the quarter ended December 2022, and is well above the present minimum requirement prescribed by RBI of
100% for the calendar year 2023.

Movement of Average LCR during Financial Year 2022-23

Quarter June 2022 September 2022 December 2022 March 2023 FY 2022-23
LCR Ratio 177.23 176.29 157.20 167.42 169.45
 264
Quantitative Disclosure (Quarter wise)

(` in crore)
March 2022 Quarter June 2022 Quarter September 2022 quarter December 2022 quarter March 2023 quarter
Total Total Total Total Total Total Total Total Total
Total
Unweighted Unweighted Weighted Unweighted Weighted Unweighted Weighted Unweighted Weighted
Weighted
Value Value Value Value Value Value Value Value Value
Value
(Average) (Average) (Average) (Average) (Average) (Average) (Average) (Average) (Average)
High Quality Liquid Assets
1 Total High Quality Liquid Assets 2,80,230.24 2,77,655.44 2,85,874.82 2,83,471.76 2,72,796.14 2,70,526.80 2,54,845.43 2,52,755.92 2,72,365.27 2,70,381.26
(HQLA)
Cash Outflows
2 Retail deposits and deposits from 6,14,334.98 47,119.13 6,25,940.05 48,160.84 6,31,943.26 48,711.45 6,36,133.95 49,080.23 6,46,869.46 49,883.30
small business customers, of which:
(i) Stable deposits 2,86,287.44 14,314.37 2,88,663.30 14,433.17 2,89,657.58 14,482.88 2,90,663.22 14,533.16 2,96,072.85 14,803.64
(ii) Less stable deposits 3,28,047.54 32,804.75 3,37,276.75 33,727.67 3,42,285.68 34,228.57 3,45,470.73 34,547.07 3,50,796.61 35,079.66
3 Unsecured wholesale funding, of 2,00,598.22 1,01,620.62 2,06,251.79 1,03,380.30 2,00,358.09 1,01,590.06 2,15,331.51 1,10,366.55 2,43,570.32 1,20,721.42
which:
(i) Operational deposits (all - - - - - - - - - -
counterparties)
(ii) Non-operational deposits (all 2,00,598.22 1,01,620.62 2,06,251.79 1,03,380.30 2,00,358.09 1,01,590.06 2,15,331.51 1,10,366.55 2,43,570.32 1,20,721.42
counterparties)
(iii) Unsecured debt 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
4 Secured wholesale funding 422.26 7.72 3,620.07 9.50 1,260.89 1.93 3,979.56 - 3,663.14 -
5 Additional requirements, of which 1,32,737.42 21,653.42 1,43,767.95 22,850.08 1,37,798.14 20,531.91 1,35,207.29 18,972.06 1,31,809.13 15,033.14
(i) Outflows related to derivative 27.26 27.26 20.31 20.31 44.51 44.51 75.97 75.97 79.02 79.02
exposures and other collateral
requirements
(ii) Outflows related to loss of funding on - - - - - - - -
debt products
(iii) Credit and liquidity facilities 1,32,710.16 21,626.16 1,43,747.64 22,829.76 1,37,753.63 20,487.40 1,35,131.32 18,896.09 1,31,730.11 14,954.11
6 Other contractual funding obligations 3,201.84 3,201.84 3,710.09 3,710.09 3,620.63 3,620.63 2,971.14 2,971.14 3,609.33 3,609.33
7 Other contingent funding obligations 90,030.40 2,700.94 86,943.70 2,608.34 88,357.30 2,650.75 88,203.10 2,646.10 91,305.09 2,739.15
8 TOTAL CASH OUTFLOWS 10,41,325.12 1,76,303.67 10,70,233.64 1,80,719.15 10,63,338.31 1,77,106.72 10,81,826.55 1,84,036.09 11,20,826.48 1,91,986.34
Cash Inflows
9 Secured lending (e.g reverse repos) 36,175.58 0.02 18,836.01 0.00 2,302.80 - 1,217.00 - 4,103.18 -
10 Inflows from fully performing 18,458.03 13,489.62 21,684.25 16,347.74 24,872.09 17,871.82 25,867.34 18,316.49 32,328.30 23,567.09
exposures
11 Other cash inflows 4,499.09 4,499.09 4,427.01 4,427.01 5,782.78 5,782.78 4,938.06 4,938.06 6,917.47 6,917.47
12 TOTAL CASH INFLOWS 59,132.70 17,988.73 44,947.27 20,774.75 32,957.67 23,654.60 32,022.40 23,254.54 43,348.96 30,484.56
13 TOTAL HQLA 2,77,655.44 2,83,471.76 2,70,526.80 2,52,755.92 2,70,381.26
14 TOTAL NET CASH OUTFLOWS 1,58,314.93 1,59,944.41 1,53,452.12 1,60,781.54 1,61,501.78
15 LIQUIDITY COVERAGE RATIO (%) 175.38% 177.23% 176.29% 157.20% 167.42%
2022-23
Integrated Annual Report
Integrated Annual Report
2022-23 265

c) Net Stable Funding Ratio (NSFR)

i) Qualitative Disclosure:

The objective of the Net Stable Funding Ratio (NSFR) is to promote the resilience of bank’s liquidity risk profiles and
to incentivize a more resilient banking sector over a longer time horizon. The NSFR will require banks to maintain a
stable funding profile in the form of Capital & liabilities in relation to the composition of their assets and off-balance
sheet activities.

Strategy, Model & Capitals

NSFR is defined as the amount of available stable funding relative to the amount of required stable funding.

Available Stable Funding (ASF)

NSFR =
Required Stable Funding (RSF)

RBI issued the regulations on the implementation of the Net Stable Funding Ratio in May 2018 with minimum
requirement of equal to at least 100%. The implementation is effective from 1st October, 2021. NSFR is applicable
to Bank’s domestic operations as well as overseas operations and computed at standalone and consolidated level.

Available Stable Funding (ASF) is defined as the portion of capital and liabilities expected to be reliable which
is determined by various factor weights according to the nature and maturity of liabilities with liabilities having
maturity of 1 year or more receiving 100 weight.

Notice
Required Stable Funding (RSF) is defined as the portion of on balance sheet and off-balance sheet exposures which
requires to be funded on an ongoing basis. The amount of such stable funding required is a function of the liquidity
characteristics and residual maturities of the various assets held.

Brief about NSFR of the Bank

The entities covered are Union Bank of India Ltd. And Union Bank of India UK Ltd. The main drivers of the Available

Statutory Reports
Stable Funding (ASF) are the capital base, retail deposit base, and funding from non-financial companies and long-
term funding from institutional clients. The capital base formed around 10%, retail deposits (including deposits
from small sized business customers) formed 69% and wholesale funding formed 21% of the total Available Stable
Funding, after applying the relevant weights.

The Required Stable Funding primarily comprised lending to corporates, retail clients and financial institutions
which constituted 85% of the total RSF after applying the relevant weights. The stock of High-Quality Liquid Assets
which majorly includes cash and reserve balances with the RBI, government debt issuances attracted no or low
amount of stable funding due to their high quality and liquid characteristic. Accordingly, the HQLA constituted

Financial Statements
only 2% of the Required Stable Funding after applying the relevant weights. Other assets and Contingent funding
obligations, such as committed credit facilities, guarantees and letters of credit constituted 13% of the Required
Stable Funding.

Bank has maintained comfortable stable funding buffers with Available Stable Funding at consolidated level of
`9,42,399 Crores against `6,76,671 Crores of Required Stable Funding, resulting in a consolidated NSFR of 139.27%
as on 31st March, 2023.
 Integrated Annual Report
266 2022-23

ii) Quantitative Disclosure

NSFR Disclosure Template-Consolidated,March,2023 (` in crore)

Unweighted value by residual maturity
Sr. Weighted
Details 6 months to
No. No maturity < 6 months ≥ 1yr value
< 1yr
ASF Item
1 Capital: (2+3) 73472.52 0.00 2000.00 18565.48 92038.00
2 Regulatory capital 73472.52 0.00 0.00 927.48 74400.00
3 Other capital instruments 0.00 0.00 2000.00 17638.00 17638.00
4 Retail deposits and deposits from small 326162.46 113777.94 260622.47 2539.51 646702.81
business customers: (5+6)
5 Stable deposits 40994.80 29833.11 202307.84 1869.82 261348.79
6 Less stable deposits 285167.66 83944.83 58314.64 669.69 385354.02
7 Wholesale funding: (8+9) 74748.93 154529.84 173378.83 14931.52 200097.63
8 Operational deposits 0.00 0.00 0.00 0.00 0.00
9 Other wholesale funding 74748.93 154529.84 173378.83 14931.52 200097.63
10 Other liabilities: (11+12) 47026.01 18329.10 1610.00 3560.37 3560.37
11 NSFR derivative liabilities 32.74 0.00 0.00 0.00 0.00
12 All other liabilities and equity not 46993.27 18329.10 1610.00 3560.37 3560.37
included in the above categories
13 Total ASF (1+4+7+10) 942399.71
RSF Item
14 Total NSFR high-quality liquid assets 15865.86
(HQLA)
15 Deposits held at other financial 53.84 0.00 0.00 0.00 26.49
institutions for operational purposes
16 Performing loans and securities: 1330.58 154093.90 61825.48 635915.07 576113.75
(17+18+19+21+23)
17 Performing loans to financial institutions 0.00 0.00 0.00 0.00 0.00
secured by Level 1 HQLA
18 Performing loans to financial institutions 0.00 81215.04 15206.23 19712.90 34141.10
secured by non-Level 1 HQLA and
unsecured performing loans to financial
institutions
19 Performing loans to non- financial corporate 0.00 67617.10 39686.95 506522.55 458900.37
clients, loans to retail and small business
customers, and loans to sovereigns, central
banks and PSEs, of which:
20 With a risk weight of less than or equal 0.00 0.00 0.00 0.00 0.00
to 35% under the Basel II Standardised
Approach for credit risk
21 Performing residential mortgages, of 0.00 62.09 186.77 80496.34 52447.05
which:
22 With a risk weight of less than or equal 0.00 62.09 186.77 80496.34 52447.05
to 35% under the Basel II Standardised
Approach for credit risk
23 Securities that are not in default and 1330.58 5199.67 6745.54 29183.29 30625.23
do not qualify as HQLA, including
exchange-traded equities
24 Other assets: (sum of rows 25 to 29) 65903.32 14408.88 0.00 1261.18 75473.33
25 Physical traded commodities, including 0.00 0.00
gold
26 Assets posted as initial margin for 3040.96 0.00 0.00 2584.82
derivative contracts and contributions to
default funds of CCPs
27 NSFR derivative assets 0.00 0.00 0.00 0.00
28 NSFR derivative liabilities before 80.96 0.00 0.00 80.96
deduction of variation margin posted
29 All other assets not included in the 65903.32 11286.96 0.00 1261.18 72807.56
above categories
30 Off-balance sheet items 221871.20 0.00 0.00 9191.06
31 Total RSF (14+15+16+24+30) 676671.20
32 Net Stable Funding Ratio (%) 139.27%
Integrated Annual Report
2022-23 267

NSFR Disclosure Consolidated, March, 2022 (` in crore)

Unweighted value by residual maturity
Sr. Weighted
Details 6 months to
No. No maturity < 6 months ≥ 1yr value
< 1yr
ASF Item
1 Capital: (2+3) 65,865.83 500.00 2,800.00 16,317.85 82,183.68
2 Regulatory capital 65,865.83 0.00 0.00 862.85 66,728.68
3 Other capital instruments 0.00 500.00 2800.00 15,455.00 15,455.00
4 Retail deposits and deposits from small 3,06,015.13 1,23,377.43 1,12,229.03 1,18,948.30 6,15,904.72
business customers: (5+6)

Strategy, Model & Capitals

5 Stable deposits 1,57,204.34 16,642.91 16,092.51 19,955.67 2,00,398.44
6 Less stable deposits 1,48,810.80 1,06,734.52 96,136.52 98,992.63 4,15,506.28
7 Wholesale funding: (8+9) 71,238.13 1,52,239.14 1,04,620.69 45,879.68 1,88,062.72
8 Operational deposits 0.00 0.00 0.00 0.00 0.00
9 Other wholesale funding 71,238.13 1,52,239.14 1,04,620.69 45,879.68 1,88,062.72
10 Other liabilities: (11+12) 38,317.01 6,967.54 4,843.17 20,613.39 20,613.39
11 NSFR derivative liabilities 0.00 0.00 0.00 0.00 0.00
12 All other liabilities and equity not 38,317.01 6,967.54 4,843.17 20,613.39 20,613.39
included in the above categories
13 Total ASF (1+4+7+10) 9,06,764.50
RSF Item
14 Total NSFR high-quality liquid assets 15,873.09
(HQLA)
15 Deposits held at other financial 39.04 0.00 0.00 0.00 19.52
institutions for operational purposes

Notice
16 Performing loans and securities: 2,238.58 1,71,639.17 36,535.76 5,58,433.59 5,05,993.64
(17+18+19+21+23)
17 Performing loans to financial institutions 0.00 0.00 0.00 0.00 0.00
secured by Level 1 HQLA
18 Performing loans to financial institutions 0.00 97,166.19 1,253.47 24,561.57 28,446.79
secured by non-Level 1 HQLA and
unsecured performing loans to financial
institutions
19 Performing loans to non- financial 0.00 70,851.92 28,600.27 4,25,903.02 3,89,150.15
corporate clients, loans to retail and
small business customers, and loans to

Statutory Reports
sovereigns, central banks and PSEs, of
which:
20 With a risk weight of less than or equal 0.00 40,631.05 3,716.58 1,12,683.89 95,418.35
to 35% under the Basel II Standardised
Approach for credit risk
21 Performing residential mortgages, of 0.00 53.30 127.95 59,707.96 38,900.80
which:
22 With a risk weight of less than or equal 0.00 53.30 127.95 59,707.96 38,900.80
to 35% under the Basel II Standardised
Approach for credit risk
23 Securities that are not in default and 2,238.58 3,567.75 6,554.07 48,261.04 49,495.90
do not qualify as HQLA, including

Financial Statements
exchange-traded equities
24 Other assets: (sum of rows 25 to 29) 78,600.04 11,828.54 0.00 1,996.47 87,378.54
25 Physical traded commodities, including 0.00 0.00
gold
26 Assets posted as initial margin for 2,012.38 0.00 0.00 1,710.52
derivative contracts and contributions to
default funds of CCPs
27 NSFR derivative assets 173.75 0.00 0.00 173.75
28 NSFR derivative liabilities before 87.04 0.00 0.00 87.04
deduction of variation margin posted
29 All other assets not included in the 78,600.04 9,555.37 0.00 1,996.47 85,407.22
above categories
30 Off-balance sheet items 1,17,104.57 0.00 0.00 5,855.23
31 Total RSF (14+15+16+24+30) 6,15,120.01
32 Net Stable Funding Ratio (%) 147.41%
 268
3. Investments

a) Composition of investment portfolio

As at 31.03.2023 (` in crore)
Investments in India Investments outside India Total
Government Investments
Other Subsidiaries Total securities Subsidiaries Total
Government Debentures
Approved Shares and/or joint Others investments (including and/or joint Others investments
Securities and Bonds
Securities ventures in India local ventures outside India
authorities)
Held to maturity
Gross 2,22,125.35 - - 52,161.68 393.80 3,998.21 2,78,679.04 - 1,148.71 0.40 1,149.11 2,79,828.15
Less: Provision for - - - (200.00) (5.00) - (205.00) - (3.11) (3.11) (208.11)
non-performing
investments (NPI)
Net 2,22,125.35 - - 51,961.68 388.80 3,998.21 2,78,474.04 - 1,145.60 0.40 1,146.00 2,79,620.04
Available for Sale
Gross 37,798.39 - 5,007.44 13,388.83 - 8,994.58 65,189.24 1,739.88 - 45.37 1,785.25 66,974.49
Less: Provision for - - (2,966.26) (2,221.01) - (2,437.08) (7,624.35) (10.80) - (12.21) (23.01) (7,647.36)
depreciation & NPI
Net 37,798.39 - 2,041.18 11,167.82 - 6,557.50 57,564.89 1,729.08 - 33.16 1,762.24 59,327.13
Held for trading
Gross 327.82 - 0.15 24.00 - - 351.97 - - - - 351.97
Less: Provision for - - - (0.08) - - (0.08) - - - - (0.08)
depreciation & NPI
Net 327.82 - 0.15 23.92 - - 351.89 - - - - 351.89

Total Investments 2,60,251.56 - 5,007.59 65,574.51 393.80 12,992.79 3,44,220.25 1,739.88 1,148.71 45.77 2,934.36 3,47,154.61
Less: Provision for - - - (200.00) (5.00) - (205.00) - (3.11) - (3.11) (208.11)
NPI
Less: Provision for - - (2,966.26) (2,221.09) - (2,437.08) (7,624.43) (10.80) - (12.21) (23.01) (7,647.44)
depreciation & NPI
Net 2,60,251.56 0.00 2,041.33 63,153.42 388.80 10,555.71 3,36,390.82 1,729.08 1,145.60 33.56 2,908.24 3,39,299.06

Note:
Note: 1. Provision provided in Subsidiaries and/or Joint Venture (in India & outside India) is on account of Standard MTM and not NPI.
2. Provision for Non-performing investments includes only Held to Maturity Category.
3. Provision for depreciation and NPI includes Available for sale and Held for Trading Category.
2022-23
Integrated Annual Report
As at 31.03.2022 (` in crore)
Investments in India Investments outside India Total
Investments
2022-23

Government
Other Subsidiaries Total securities Subsidiaries Total
Government Debentures
Approved Shares and/or joint Others investments (including and/or joint Others investments
Securities and Bonds
Securities ventures in India local ventures outside India
authorities)
Held to maturity
Integrated Annual Report

Gross 1,99,238.04 - 59.71 56,762.49 343.61 346.90 2,56,750.75 -- 1,148.71 0.40 1,149.11 2,57,899.86
Less: Provision for - - - (80.00) (5.00) - (85.00) -- (1.43) - (1.43) (86.43)
non-performing
investments (NPI)
Net 1,99,238.04 - 59.71 56,682.49 338.61 346.90 2,56,665.75 -- 1,147.28 0.40 1,147.68 2,57,813.43
Available for sale
Gross 65,341.29 - 5,085.76 14,182.17 - 10,908.61 95,517.83 1,640.39 - 45.62 1,686.01 97,203.84
Less: Provision for - - (2,840.17) (1,481.55) - (1,742.43) (6,064.15) (30.20) - - (30.20) (6,094.35)
depreciation & NPI
Net 65,341.29 - 2,245.59 12,700.62 - 9,166.18 89,453.68 1,610.19 - 45.62 1,655.81 91,109.49
Held for trading
Gross (415.53) - - - - - (415.53) -- - - - (415.53)
Less: Provision for - - - - - - 0.00 -- - - - -
depreciation & NPI
Net (415.53) - - - - - (415.53) -- - - - (415.53)
Total Investments 2,64,163.80 - 5,145.47 70,944.66 343.61 11,255.51 3,51,853.04 1,640.39 1,148.71 46.02 2,835.12 3,54,688.16
Less: Provision for - - - (80.00) (5.00) - (85.00) - (1.43) - (1.43) (86.43)
NPI
Less: Provision for - - (2,840.17) (1,481.55) - (1,742.43) (6,064.15) (30.20) - - (30.20) (6,094.35)
depreciation & NPI
Net 2,64,163.80 0.00 2,305.30 69,383.11 338.61 9,513.08 3,45,703.90 1,610.19 1,147.28 46.02 2,803.49 3,48,507.39

Note: 1. Provision provided in Subsidiaries and/or Joint Venture (in India & outside India) is on account of Standard MTM and not NPI.
2. Provision for Non-performing investments includes only Held to Maturity Category.
3. Provision for depreciation and NPI includes Available for sale and Held for Trading Category.
269

Financial Statements Statutory Reports Notice Strategy, Model & Capitals

 Integrated Annual Report
270 2022-23

b) Movements of Provisions for Depreciation and Investment Fluctuation Reserve

(` in Crore)
Particulars 2022-23 2021-22
i) Movement of provisions held towards depreciation on investments
a) Opening Balance 6,180.78 6,227.42
b) Add: Provisions made during the year 2,119.77 631.43
c) Less: Write off / Write back of excess provisions during the 444.98 678.07
year
d) Closing Balance 7,855.57 6,180.78
ii) Movement of Investment Fluctuation Reserve
a) Opening Balance 1,936.16 1,279.29
b) Add: Amount transferred during the year -- 656.87
c) Less: Drawdown 583.20 0.00
d) Closing Balance 1,352.96 1,936.16
iii) Closing balance in IFR as a percentage of closing balance of 2.00 2.00
investments in AFS and HFT/Current category
iv) Movement of Investment Reserve
a) Opening Balance -- --
b) Add: Amount transferred during the year 176.90 --
c) Less: Drawdown -- --
a) Closing Balance 176.90 --

During the FY 2022-23, Investment Reserve has been created since the bank is currently maintaining excess
provision in AFs and HFT categories to the tune of ₹ 362.56 Crore and the amount has been transferred net of taxes
& transfer to Statutory Reserve.

c) Sale and transfers to/from HTM category

The Bank has not made sales and transfers to/from HTM category during the financial year 2022 - 23 exceeding 5 per
cent of the book value of investments held in HTM category at the beginning of the year. The 5 per cent threshold to
above will exclude:

i. The one-time transfer of securities to/from HTM category with the approval of Board of Directors permitted to be
undertaken by banks at the beginning of the accounting year.

ii. Direst sale from HTM for bringing down SLR holding in HTM category consequent to a downward revision in SLR
requirements by RBI.

iii. Sale to Reserve Bank of India under liquidity management operations of RBI like Open Market Operations (OMO) and
the Government securities acquisition programme (GSAP).

iv. Repurchase of Government Securities by Government of India from banks under buyback / switch operations.

v. Repurchase of State Development Loans by respective state governments under buyback / switch operations.

vi. Additional shifting of securities explicitly permitted by the Reserve Bank of India
Integrated Annual Report
2022-23 271

d) Non-SLR investment portfolio

i) Non-performing non-SLR investments

(` in Crore)
S.
Particulars 2022-23 2021-22
no.
a) Opening Balance 4,431.69 4,811.06
b) Additions during the year since 1st April 1,910.06 566.54

Strategy, Model & Capitals

c) Reductions during the above period 416.15 945.91
d) Closing balance 5,925.60 4,431.69
e) Total provisions held 5,737.00 4,036.84

ii) Issuer composition of non-SLR investments

The issuer composition of investments in securities, other than Government and other approved securities is given
below:

(` in crore)
Extent of Extent of Below Extent of Extent of
Sl. Amount Private Investment Grade Unrated Unlisted
Issuer Placement Securities Securities Securities
no.

Notice
2022-23 2021-22 2022-23 2021-22 2022-23 2021-22 2022-23 2021-22 2022-23 2021-22
a) PSUs 4,193.09 4,087.05 1,418.66 1,170.10 -- -- 3,080.52 3,197.29 0.58 22.83
b) FIs 4,046.13 2,680.13 1,765.47 595.68 -- -- -- -- -- --
c) Banks 2,816.78 2,057.83 2,177.16 1,850.15 -- -- 5.00 -- -- --
d) Private 24,269.13 29,301.27 20,609.27 24,005.23 20.00 456.28 448.37 413.54 126.16 138.94
Corporate
e) Subsidiaries/ 1,542.52 1,492.32 1,542.52 1,492.32 -- -- -- -- -- --
Joint Ventures

Statutory Reports
f) Others 50,035.42 50,905.77 46,481.31 47,310.71 -- -- -- -- -- --
g) Provision (7,855.57) (6,180.78) -- -- -- -- -- -- -- --
held towards
depreciation
TOTAL 79,047.49 84,343.59 73,994.39 76,424.19 20.00 456.28 3,533.89 3,610.83 126.74 161.77

e) Repo Transactions (in face value terms)

The following tables set forth for the periods indicated, the details of securities sold and purchased under repo and
reverse repo transactions respectively including transactions under Liquidity Adjustment Facility (LAF) and Marginal

Financial Statements
Standing Facility (MSF).

(` in crore)
Minimum Maximum Daily Average Outstanding
Particulars outstanding outstanding outstanding as on
during the year during the year during the year 31.03.2023
i) Securities sold under Repo
a) Government securities 14,129.54 21,902.81 15,874.76 14,509.54
b) Corporate debt securities -- -- -- --
c) Any other securities 10.33 10.33 10.33 10.33
ii) Securities purchased under Reverse Repo
a) Government securities 255.00 60,605.07 6,067.94 763.49
b) Corporate debt securities -- -- -- --
c) Any other securities -- -- -- --
 Integrated Annual Report
272 2022-23

f) Profit of ₹ 193.77 Crore (previous year ₹ 2,120.13 crore) on sale of “Held to Maturity” category securities have been
taken to profit and loss account initially.

g) In respect of “Held to Maturity” category, the excess of acquisition cost over face value of the securities amortized
during the year amounted to ₹ 723.50 crore (previous year ₹ 719.79 Crore).

h) Total investments made in shares, convertible debentures and units of equity linked mutual funds / venture capital
funds and also advances against shares aggregate to ` 2,353.41 crore (previous year ` 2,523.77 crore).

4. Asset Quality
a) Classification of advances and provisions held

(` in crore)
Standard Non-performing

FY 2022-23 Total Total Non- Total

Standard Sub-standard Doubtful Loss Performing
Advances Advances
Gross Standard Advances and NPAs
Opening Balance 6,36,820.81 11,040.55 49,449.47 19,097.04 79,587.07 7,16,407.87
Add: Additions during the year 12,518.60 12,518.60
Less: Reductions during the year* 31,118.38 31,118.38
Closing balance 7,48,918.02 7,118.16 34,950.72 18,918.41 60,987.29 8,09,905.31
*Reductions in Gross NPAs due to: 31,118.38 31,118.38
i) Upgradation 4,666.03 4,666.03
ii) Recoveries (excluding recoveries from 7,277.35 7,277.35
upgraded accounts)
iii) Technical/ Prudential Write-offs 16,805.74 16,805.74
iv) Write-offs other than those under (iii) 2,369.26 2,369.26
above
Provisions (excluding Floating Provisions)
Opening balance of provisions held 6,566.77 2,377.63 33,650.81 18,628.10 54,656.53 61,223.30
Add: Fresh provisions made during the year 12,478.97 12,478.97
Less: Excess provision reversed/ Write-off 987.21 19,506.32 20,493.53
loans
Closing balance of provisions held 5,579.56 1,892.61 27,035.25 18,701.32 47,629.18 53,208.74
Amount kept in Sundry Deposits-ECGC Claim 430.68 430.68
received/Recovery in suit filed accounts/
sacrifice in restructured NPA accounts
Net NPAs
Opening Balance 8,659.30 15,524.13 119.87 24,303.30 24,303.30
Add: Fresh additions during the year 12,048.29
Less: Reductions during the year 23,424.15
Closing Balance 5,199.52 7,727.92 0.00 12,927.44 12,927.44
Floating Provisions
Opening balance Nil
Add: Fresh provisions made during the year Nil
Less: Amount draw down during the year Nil
Closing balance of floating provisions Nil
Integrated Annual Report
2022-23 273

(` in crore)
Standard Non-performing

FY 2022-23 Total Total Non- Total

Standard Sub-standard Doubtful Loss Performing
Advances Advances
Technical write-offs and the recoveries
made thereon
Opening Balance of Technical write-offs/ 68,680.43

Strategy, Model & Capitals

Prudential written off accounts
Add: Technical/Prudential write-off during 16,805.73
the year
Less: Recoveries made from previously 12,693.64
Technical/Prudential written-off accounts
during the year
Closing Balance 72,792.52

(` in crore)
Standard Non-performing

FY 2021-22 Total Total Non- Total

Standard Sub-standard Doubtful Loss Performing
Advances Advances

Notice
Gross Standard Advances and NPAs
Opening Balance 5,63,896.13 13,489.56 50,540.50 25,758.14 89,788.20 6,53,684.33
Add: Additions during the year 22,877.39 22,877.39
Less: Reductions during the year* 33,078.53 33,078.53
Closing balance 6,36,820.81 11,040.55 49,449.47 19,097.04 79,587.07 7,16,407.87
*Reductions in Gross NPAs due to: 33,078.53 33,078.53
i) Upgradation 7,742.82 7,742.82

Statutory Reports
ii) Recoveries (excluding recoveries from 5,851.28 5,851.28
upgraded accounts)
iii) Technical/ Prudential Write-offs 18,025.70 18,025.70
iv) Write-offs other than those under (iii) 1,458.73 1,458.73
above
Provisions (excluding Floating Provisions)
Opening balance of provisions held 5,112.97 2,272.67 34,896.24 24,679.04 61,847.95 66,960.92
Add: Fresh provisions made during the year 11,919.46 11,919.46
Less: Excess provision reversed/ Write-off 19,110.88 19,110.88

Financial Statements
loans
Closing balance of provisions held 6,566.77 2,377.63 33,650.81 18,628.10 54,656.53 61,223.30
Amount kept in Sundry Deposits-ECGC Claim received/Recovery in suit filed accounts/sacrifice in 522.65 522.65
restructured NPA accounts/floating provision
Net NPAs
Opening Balance 11,197.34 15,165.99 917.19 27,280.52 27,280.52
Add: Fresh additions during the year 10,986.46 10,986.46
Less: Reductions during the year 13,963.68 13,963.68
Closing Balance 8,659.30 15,524.13 119.87 24,303.30 24,303.30
 Integrated Annual Report
274 2022-23

(` in crore)
Standard Non-performing

FY 2021-22 Total Total Non- Total

Standard Sub-standard Doubtful Loss Performing
Advances Advances
Floating Provisions
Opening balance 306.20
Add: Fresh provisions made during the year --
Less: Amount draw down during the year 306.20
Closing balance of floating provisions Nil
Technical write-offs and the recoveries
made thereon
Opening Balance of Technical write-offs/ 55,877.88
Prudential written off accounts
Add: Technical / Prudential write-off during 17,611.07
the year
Less: Recoveries made from previously 4,808.52
Technical / Prudential written-off accounts
during the year
Closing Balance 68,680.43

Ratios (in per cent) 2022-23 2021-22

Gross NPA to Gross Advances 7.53 11.11
Net NPA to Net Advances 1.70 3.68
Provision coverage ratio 90.34 83.61

b) Sector-wise Advances and Gross NPAs

(` in crore)
2022-23 2021-22
Percentage Percentage
Sr. Outstanding of Gross Outstanding of Gross
Sector
No. Total Gross NPA NPAs to total Total Gross NPAs NPAs to total
Advances Advances in Advances Advances in
that sector that sector
i) Priority Sector
a) Agriculture and allied activities 1,43,493.24 13,691.94 9.54 1,24,395.26 13,543.61 10.89
b) Advances to industries sector eligible 39,428.37 5,576.86 14.14 39,765.31 8,167.11 20.54
as priority sector lending
c) Services 85,855.21 10,104.78 11.77 75,149.63 13,349.25 17.76
d) Personal loans 38,088.39 2,808.90 7.37 39,275.53 2,098.46 5.34
Sub-total (i) 3,06,865.21 32,182.48 10.49 2,78,585.73 37,158.43 13.34
ii) Non Priority Sector
a) Agriculture and allied activities 7,736.63 1,117.94 14.45 8,696.56 1,863.22 21.42
b) Industry 1,08,328.10 10,001.65 9.23 1,43,378.04 20,574.40 14.35
c) Services 1,89,560.91 9,178.30 4.84 1,65,324.21 13,950.23 8.44
d) Personal loans 1,97,414.46 8,506.92 4.31 1,20,423.35 6,040.79 5.02
Sub-total (ii) 5,03,040.10 28,804.81 5.73 4,37,822.16 4,24,28.64 9.69
Total (i+ii) 8,09,905.31 60,987.29 7.53 7,16,407.88 79,587.07 11.11
Integrated Annual Report
2022-23 275

Details of industry wherein Sub-sector advances is more than 10% of the total advances of industry sector:

Industry 2022-23
Percentage
Sr. Outstanding of Gross
No. Sector Total Gross NPA NPAs to total
Advances Advances
in that sector
I Basic Metals AND Metal Products 25,124.64 1,689.75 6.73%

Strategy, Model & Capitals

II Infra 94,202.45 7,569.17 8.04%

Industry 2021-22
Percentage
Sr. Outstanding of Gross
No. Sector Total Gross NPA NPAs to total
Advances Advances
in that sector
I Basic Metals & Metal products 16,014 4,557 28.46
II Construction 40,734 8,898 21.84
III Food manufacturing & processing 18,758 5,101 27.19

Notice
c) OVERSEAS ASSETS, NPAs AND REVENUE
(` in crore)
Particulars 31.03.2023 31.03.2022
Total Assets 31,540.79 26,418.31
Total NPAs 2,357.98 2,265.25
Total Revenue 1,096.75 426.24

d) Particulars of resolution plan and restructuring under RBI circular DBR.No..BP.BC.45/21.04.048/2018-19 dated June

Statutory Reports
7, 2019:

(` in crore)
No. of Investment Provision
Particulars
accounts value Held
i) Debt converted into Equity Based on RBI June 2019 Circular 6 104.77 54.25

ii) Details of accounts subjected to restructuring

(` in crore)
Micro, Small
Retail (excluding
Agriculture and Corporates (excluding and Medium
agriculture and Total

Financial Statements
allied activities MSME) Enterprises
MSME)
(MSME)
Standard Mar-23 Mar-22 Mar-23 Mar-22 Mar-23 Mar-22 Mar-23 Mar-22 Mar-23 Mar-22
Number of 3,108 6,883 26 32 46,871 1,05,979 56,303 70,032 1,06,308 1,82,926
borrowers
Gross 223.74 332.44 6,638.44 9,246.36 3,335.35 5,707.11 8,185.46 9,533.55 18,383.00 24,819.45
Amount
Provision 21.29 32.64 397.38 673.44 290.72 435.10 786.35 949.69 1,495.75 2,090.87
held
Substandard Number of 1,308 579 -- 2 23,973 34,772 3,802 3,088 29,083 38,441
borrowers
Gross 38.46 14.45 -- 72.94 639.22 1,008.81 359.88 298.33 1,037.56 1,394.52
Amount
Provision 5.86 2.24 -- 13.15 100.31 160.32 55.12 46.61 161.28 222.32
held
 Integrated Annual Report
276 2022-23

(` in crore)
Micro, Small
Retail (excluding
Agriculture and Corporates (excluding and Medium
agriculture and Total
allied activities MSME) Enterprises
MSME)
(MSME)
Doubtful Number of 1,479 1,224 17 67 47,300 21,852 2,718 1,202 51,514 24,345
borrowers
Gross 92.52 207.61 1,787.82 10,144.05 1,748.85 2,032.77 230.10 153.34 3,859.30 12,537.77
Amount
Provision 78.07 172.95 985.82 8,817.41 873.33 1,349.91 117.60 88.94 2,054.82 10,429.20
held
Loss Number of 101 54 13 59 3,449 2,144 4,588 1814 8,151 4071
borrowers
Gross 49.00 171.34 2,149.74 6,972.99 184.16 564.96 146.99 89.14 2,529.88 7,798.43
Amount
Provision 49.00 171.31 2,149.74 6,968.74 182.01 567.01 146.99 89.00 2,527.73 7,796.06
held
Total Number of 5,996 8,740 56 160 1,21,593 1,64,747 67,411 76,136 1,95,056 2,49,783
borrowers
Gross 403.72 725.83 10,576.00 26,436.34 5,907.58 9,313.65 8,922.44 10,074.36 25,809.74 46,550.18
Amount
Provision 154.22 379.13 3,532.94 16,472.75 1,446.37 2,512.33 1,106.06 1,174.23 6,239.58 20,538.45
held

e) Divergence is asset classification and provisioning

No disclosure on divergence in asset classification and provisioning for NPAs is required with respect to RBI’s supervisory
process for the year ended March 31, 2022, based on the conditions mentioned in RBI circular No. RBI/2022-23/130
DOR.ACC.REC.No.74/21.04.018/2022-23 dated October 11, 2022.
f) Disclosure of transfer of loan exposure:

i) The Bank has not transferred any loans not in default during FY 2022-23.

ii) Details of loans not in default acquired through assignment are given below:

(` in crore)
Particulars 2022-23 2021-22
Aggregate Amount of Loans acquired 2772.99 1,962.42
Weighted average residual maturity (in months) 74.59 144.00
Weighted average holding period by originator (in months) 12.47 20.42
Retention of beneficial economic interest by the originator 10.00% 10.00%
Tangible Security Coverage 72.13% 273.96%

The loans acquired are not rated as these are to Non-corporate Borrowers.

iii) The Bank has not acquired any non-performing assets during FY 2022-23.

iv) Details of non-performing loans transferred are given below:

FY 2022-23 (Amount in ` crore)

To other
To permitted
Particulars To ARCs transferees
transferees
(please specify)
No. of accounts 10
Aggregate principal outstanding of loans transferred 3,248.82
Weighted average residual tenor of the loans transferred 119.42
(months)
Nil Nil
Net book value of loans transferred (at the time of transfer) Nil
Aggregate consideration 1,472.76
Additional consideration realized in respect of accounts 45.09
transferred in earlier years
Integrated Annual Report
2022-23 277

FY 2021-22 (Amount in ` crore)

To other
To permitted
Particulars To ARCs transferees
transferees
(please specify)
No. of accounts 8
Aggregate principal outstanding of loans transferred 1,181.38
Weighted average residual tenor of the loans transferred Nil

Strategy, Model & Capitals

Net book value of loans transferred (at the time of transfer) 108.59 Nil Nil
Aggregate consideration 623.60
Additional consideration realized in respect of accounts 28.52
transferred in earlier years

v) Distribution of the SRs held across the various categories of Recovery Ratings assigned to such SRs by the credit rating
agencies as on 31st March, 2023 are as under:

Recovery Rating Band Book Value (` in crore)

As on 31.03.2023 As on 31.03.2022
RR1+ 222.25 12.33
RR1 384.06 878.44

Notice
RR2 186.16 303.07
RR3 53.27 148.63
RR4 181.07 382.41
RR5 391.09 376.79
RR6 -- 25.30
Unrated 815.86 78.23
Total 2,233.76 2,205.20

Statutory Reports
During the FY ending 31st March, 2023, two new SRs to the tune of ₹ 342.68 Crore have been added in the portfolio and
100% provision has been made on the book value of the Security Receipts.

g) Fraud Accounts

(` in crore)
Particulars 31.03.2023 31.03.2022
Number of frauds reported 366 638
Amount involved in fraud 5,504.38 3,942.37
Amount outstanding in fraud 5,418.30 3,674.70

Financial Statements
Amount of Provision made for such frauds 5,418.30 3,554.83
Amount of Unamortized Provision debited from “other reserve” as at the end 0.00 119.87
of Year
 Integrated Annual Report
278 2022-23

h) Details of resolution plan implemented under Resolution framework for Covid 19 related stress as per RBI circular dtd.
6th August 2020 and 5th May, 2021 are as below:

(` in crore)
(A) (E)
Exposure Exposure
to accounts (B) (C) (D) to accounts
classified of (A) aggregate Of (A), Amount Of (A) amount classified
as standard debt that slipped written off paid by the as standard
Type of borrower
consequent to into NPA during during the half borrower during consequent to
implementation the half-year year the half year implementation
of resolution of resolution
plan- position as plan- position as
at 30.09.21 (A) at 31.03.2022
Personal Loans 8467.55 248.64 0.00 504.10 7714.81
Corporate persons 3924.88 30.93 0.00 157.85 3736.10
Of which, MSMEs 270.18 30.93 0.00 20.76 218.49
Others 251.17 27.47 0.00 16.36 207.34
Total 12,643.60 307.04 - 678.31 11,658.25

i) In terms of RBI Circular No. DBR.BP.BC.18/21.04.048/2018-19 dated 1st January, 2019, DOR.No.
BP.BC.34/21.04.048/2019-20 dated 11 February, 2020, DOR.No.BP.BC/4/21.04.048/2020-21 dated 6th August, 2020
th

and DOR.STR.REC.12/21.04.048/2021-22 dated 5th May, 2021 on “Restructuring of Advances – Micro, Small & Medium
Enterprises (MSME) Sector (One Time Restructuring)”, the Bank has restructured the MSME borrower accounts as
under:

No of Accounts restructured ` in Crore

1,21,122 5,052.85

j) In terms of RBI circular no. DOR.STR.REC.11/21.04.048/2021-22 dated 05.05.2021 under Resolution Framework 2.0 for
Individuals & Small Business, the details are as under:

Position as of 31.03.2023
Sector
No. of borrowers Amount in ` crore
Personal & Small Business 42,860 5,914.65
Agri/Allied 4,997 269.71
Total 47,857 6,184.36

k) In terms of RBI Circular DBR.No.BP.BC.45/21.04.048/2018-19 dated 7th June, 2019 on Prudential Framework for
Resolution of Stressed Assets, the bank is holding provision as on 31st March, 2023 in 16 accounts as detailed below:

(` in crore)
Amount of loans Amount of loans to Amount of loans as Provisions required Provision held on
impacted by RBI be classified as NPA on 31.03.2023 out of for loans covered 31.03.2023
circular (B) classified as NPA under RBI circular
out of (A)
(A) (B) (C) (D) (E)
4,003.90 2,588.58 2,588.58 678.09 678.09

l) As per RBI circular No. DBR No. BP. 15199/21.04.048/2016-17 and DBR No. BP. 1906/21.04.048/2016-17 dated June 23,
2017 and August 28, 2017 respectively, for the accounts covered under the provisions of the Insolvency and Bankruptcy
Code (IBC), the Bank has made a total provision of ₹ 10,568.54 Crore (including Technically Written Off accounts of ₹
10,510.66 crore) covering 100% of the total outstanding as on 31st March, 2023.
Integrated Annual Report
2022-23 279

5. EXPOSURES
a) Exposure to Real Estate Sector
(` in crore)
Sr.
Category 31.03.2023 31.03.2022
No.
i) Direct exposure 99,387.40 91,038.56
a) Residential Mortgages -

Strategy, Model & Capitals

Lending fully secured by mortgages on residential property that is or will be 84,322.00 76,189.00
occupied by the borrower or that is rented;

-O
 ut of the above, individual housing loan eligible for inclusion in Priority Sector 32,831.00 34,702.00
Advances
b) Commercial Real Estate –
lending secured by mortgages on commercial real estates (office buildings, retail 15,065.40 14,849.56
space, multi-purpose commercial premises, multi-family residential buildings,
multi-tenanted commercial premises, industrial or warehouse space, hotels, land
acquisition, development and construction, etc.) Exposure would also include
non-fund based (NFB) limits.
c) Investments in Mortgage-Backed Securities (MBS) and other securitized
exposures -
i. Residential, Nil Nil

Notice
ii. Commercial Real Estate. Nil Nil
ii) Indirect Exposure
Fund based and non-fund based exposures on National Housing Bank (NHB) and 46,693.51 44,862.16
Housing Finance Companies (HFCs).
Total Exposure to Real Estate Sector 1,46,080.91 1,35,900.72

b) Exposure to Capital Market

(` in crore)

Statutory Reports
Sr.
Category 31.03.2023 31.03.2022
No.
i) Direct investment in equity shares, convertible bonds, convertible debentures 1,208.79 1,364.85
and units of equity oriented mutual funds the corpus of which is not exclusively
invested in corporate debt.
ii) Advances against shares/bonds/debentures or other securities or on clean 1.35 1.32
basis to individuals for investment in shares (including IPOs/ESOPs), convertible
bonds, convertible debentures and units of equity oriented mutual funds
iii) Advances for any other purposes where shares or convertible bonds or convertible 299.20 319.28
debentures or units of equity oriented mutual funds are taken as primary security
iv) Advances for any other purposes to the extent secured by the collateral security of 1,198.71 825.61 Financial Statements
shares or convertible bonds or convertible debentures or units of equity oriented
mutual funds i.e. where the primary security other than shares/ convertible
bonds/ convertible debentures/ units of equity oriented mutual funds does not
fully cover the advances
v) Secured and unsecured advances to stockbrokers and guarantees issued on 1,058.30 393.50
behalf of stockbrokers and market makers
vi) Loans sanctioned to corporate against the security of shares /bonds/ -- --
debentures or other securities or on clean basis for meeting promoter
contribution to the equity of new companies in anticipation of raising resources
vii) Bridge loans to companies against expected equity flows /issues. -- --
 Integrated Annual Report
280 2022-23

(` in crore)
Sr.
Category 31.03.2023 31.03.2022
No.
viii) Underwriting commitments taken up by the Banks in respect of primary issue -- --
of shares or convertible bonds or convertible debentures and units of equity
oriented mutual funds
ix) Financing to stockbrokers for margin trading -- --
x) All exposures to Venture Capital Funds (both registered and unregistered) will 1,144.62 1,158.92
be deemed to be on par with equity and hence will reckon for compliance with
the capital market exposure.
Total exposure to Capital Market 4,910.97 4,063.48

c) Risk Category -wise Country Exposure

(` in crore)
Net Exposure Provision held Net Exposure Provision held
Risk Category
31.03.2023 31.03.2023 31.03.2022 31.03.2022
Insignificant 31,603.27 Nil 16,345.90 Nil
Low 22,760.29 Nil 13,396.01 Nil
Moderately Low 513.30 Nil 74.41 Nil
Moderate 227.78 Nil 181.59 Nil
Moderately High 670.21 Nil 134.84 Nil
High 101.17 Nil 1.18 Nil
Very High 0.00 Nil 5.28 Nil
Total 55,876.02 Nil 30,139.21 Nil

As per Country Risk Policy 2022-23, Bank has used ECGC country risk classification for the Trade Exposure and other
than Trade exposure in India both for branches in India and for overseas branches.

Bank will make provision for country risk exposure only in respect of a country where the net funded exposure is 1% or
more of its total assets.

d) Unsecured advances
(` in crore)
Particulars 31.03.2023 31.03.2022
Total unsecured advances of the bank 1,25,803.00 1,13,489.29
Out of the above, amount of advances for which intangible securities such as Nil Nil
charge over the rights, licenses, authority etc. have been taken
Estimated value of such intangible collateral securities Nil Nil

e) Factoring exposure
(` in crore)
Particulars As on As on
31.03.2023 31.03.2022
TReDS Exposure in terms of DBR.No.FSD.BC.32/24.01.007/2015-16 dated 30th 523.83 543.54
July 2015 (Para 8).
Integrated Annual Report
2022-23 281

f) Intra Group Exposure

(` in crore)
Particulars 31.03.2023 31.03.2022
Total amount of Intra group exposure 539.98 490.44
Total amount of Top 20 Intra group exposure 539.98 490.44
Percentage of Intra group exposure to total exposure of the Bank on borrowers/ 0.05 0.05
customers

Strategy, Model & Capitals

Details of breach of limits on Intra group exposure and regulatory action NIL NIL
thereon, if any

g) Un-Hedged Foreign Currency Exposures

In terms of guidelines issued by Reserve Bank of India with regard to UFCE, Bank has approved Policy on Unhedged
Foreign Currency Exposure of Clients 2022-23. While framing the policy, bank has taken into consideration the exchange
risks arising out of volatility in the forex market and accordingly has made suitable provisions to reduce the risks. Bank
has also taken into consideration credit risks arising out of unhedged foreign currency exposure and accordingly Bank
has put in place risk mitigation measures by incorporating additional loan pricing framework. Total provision made for
exposures to entities with UFCE for the year ended March 2023 is ₹16.83 Crore.

6. CONCENTRATION OF DEPOSITS, ADVANCES, EXPOSURES AND NPAs:

a) Concentration of Deposits

Notice
(` in crore)
Particulars 31.03.2023 31.03.2022
Total Deposits of twenty largest depositors 89,178.87 97,755.30
Percentage of Deposits of twenty largest depositors to Total Deposits of the 7.98 9.47
Bank.

b) Concentration of Advances
(` in crore)
Particulars 31.03.2023 31.03.2022

Statutory Reports
Total Advances of twenty largest borrowers/customers 1,35,080.37 1,04,418.65
Percentage of Advances of twenty largest borrowers to Total Advances of the 16.46 14.35
Bank

c) Concentration of Exposures
(` in crore)
Particulars 31.03.2023 31.03.2022
Total Exposures of twenty largest borrowers/customers 1,43,096.26 1,39,132.22
Percentage of Exposures of twenty largest borrowers/customers to Total 13.41 14.57

Financial Statements
Exposures of the Bank on borrowers / customers

d) Concentration of NPAs
(` in crore)
Particulars 31.03.2023 31.03.2022
Total Exposures to top twenty NPA accounts 10,510.60 11,098.86
Percentage of Exposures to the twenty largest NPA Exposures to total Gross 17.23 13.95
NPAs
 Integrated Annual Report
282 2022-23

7. DERIVATIVES
a) Forward Rate Agreement/Interest Rate Swap
(` in crore)
Sr.
Particulars 31.03.2023 31.03.2022
No.
i) The notional principal of swap agreements 42,093.16 17,840.00
ii) Losses which would be incurred if counterparties failed to fulfill their 136.65 110.71
obligations under the agreements
iii) Collateral required by the Bank upon entering into swaps Nil Nil
iv) Concentration of credit risk arising from the Swaps Banking Industry Banking Industry
v) The fair value of the swap book 4.65 4.96

Note:
I. Interest rate swaps in Indian Rupees were undertaken for hedging Reciprocal Loan Arrangements.

II. The Bank has entered into Floating to Fixed or Fixed to Floating Interest Rate Swap transactions for trading during
the year.

III. All underlying for hedge transactions are on accrual basis.

b) Exchange Traded Interest Rate Derivatives

(` in crore)
Sr.
Particulars 31.03.2023 31.03.2022
No.
i) Notional principal amount of exchange traded interest rate Buy Sell Buy Sell
derivatives undertaken during the year (instrument-wise) Interest
Rate Future
a) 577GS2030 -- -- 70.00 70.00
b) 585GS2030 -- -- 1,963.00 1,963.00
c) 664GS2035 -- -- 428.00 428.00
d) 610GS2031 1,215.04 1,215.04 3,035.02 3,035.02
e) 654GS2032 1,074.28 1,074.28 -- --
f) 726GS2032 1,180.76 1,180.74 -- --
ii) Notional principal amount of exchange traded interest rate
derivatives outstanding as on 31st March 2023 (instrument-wise)
a) 726GS2032 0.02 Nil
iii) Notional principal amount of exchange traded interest rate Nil Nil
derivatives outstanding and not "highly effective" (instrument-wise)
iv) Mark-to-market value of exchange traded interest rate derivatives Nil Nil
outstanding and not "highly effective" (instrument wise)

c) Disclosures on Risk Exposures in Derivatives

i) Qualitative disclosure:
a) The Bank deals in two groups of derivative transactions within the framework of RBI guidelines.

i) Over the Counter Derivatives

ii) Exchange Traded Derivatives

The Bank deals in Forward Rate Agreement, Interest Rate Swaps, Cross Currency Swap and Currency
Options in Over the Counter Derivatives group.
Integrated Annual Report
2022-23 283

In Exchange Traded Derivatives Group, the Bank trades in Currency Futures and Interest Rate Futures. The
Bank is Trading & clearing member with three Exchanges viz. National Stock Exchange (NSE), Bombay
Stock Exchange (BSE) & Metropolitan Stock Exchange (MSEIL), on their Currency Derivative segment, as
permitted by Reserve Bank of India. The Bank carries out proprietary trading in currency futures on these
exchanges. The Bank has set up the necessary infrastructure for Front, Mid and Back office operations.
Daily Mark to Market (MTM) and Margin obligations are settled with the exchanges as per guidelines
issued by the Regulators.
The Bank trades in Interest Rate Futures on National Stock Exchange. The bank has necessary

Strategy, Model & Capitals

infrastructure for Front, Mid and Back office operations in place. Daily Mark to Market (MTM) and Margin
obligations are settled with the exchanges as per guidelines issued by the Regulators.
The Bank undertakes derivative transactions for proprietary trading/market making, hedging own balance
sheet and for offering to customers, who use them for hedging their risks within the prevalent regulations.
Proprietary trading/market making positions are taken in Rupee Interest Rate Swap, Currency Futures and
Interest Rate Futures. While derivative instruments present immense opportunity for making a quantum
leap in non-interest income and also for hedging market risk, it exposes the Bank to various risks. The Bank
has adopted the following mechanism for managing different risks arising out of derivative transactions.
a) In terms of the structure, operations in the Treasury Branch are segregated into following three
functional areas, which are provided with trained officers with necessary systems support and their
responsibilities are clearly defined.

Notice
I) Front Office (Dealing Room) - Ensures Compliance with trade origination requirements as per Bank’s
policy and RBI guidelines.

II) Mid-Office - Risk Management, Accounting Policies and Management

III) Back Office - Settlement, Reconciliation, Accounting.

Mid Office monitors transactions in the trading book and excesses, if any, are reported to Risk
management Department for necessary action. Mid Office also measures the financial risk for
transactions in the trading book on a daily basis, by way of Mark to Market. Daily Mark to Market

Statutory Reports
position is reported to Risk Management Department, for onward reporting of the risk profile to the
Directors’ Committee on the Assets and Liability Management.

  In case of corporate clients transactions are concluded only after the inherent credit exposures are
quantified and approved in terms of approval process laid down in the Treasury Policy for customer
appropriateness and suitability. The necessary documents like ISDA agreements are duly executed.
The bank has adopted Current Exposure Method for monitoring credit exposures.

Bank has entered into Credit Support Annex (CSA) with few banks. CSA is a legal document regulating
the terms and conditions under which collateral is posted to mitigate counterparty credit risk in
bilateral derivative transactions.

b) Treasury Policy of the Bank lays down the types of financial derivative instruments, scope of usages, and Financial Statements
approval process as also the limits like the open position limits, deal size limits, stop loss limits and counterpart
exposure limit for trading in approved instruments.

Various Risk Limits are set up and actual exposures are monitored vis-à-vis the limits.

 These limits are set up taking in to account market volatility, business strategy and management experience.
Risk limits are in place for risk parameters viz. PV01, stop loss, counterparty credit exposure. Actual positions
are measured against these limits periodically and breaches if any are reported promptly. The Bank ensures
that the Gross PV01 position arising out of all non option derivative contracts is within the 0.25% of net worth
of the Bank.

c) The Bank also uses financial derivative transactions for hedging its own Balance Sheet Exposures. Treasury
Policy of the Bank spells out approval process for hedging the exposures. The hedge transactions are monitored
 Integrated Annual Report
284 2022-23

on a regular basis. The notional profit or loss calculated on Mark to Market basis, PV01 and VaR on these deals
are reported to the Assets Liability Committee (ALCO) every month. Hedge effectiveness is the degree to which
changes in the fair value or cash flows of the hedged items that are attributed to a hedged risk are offset by
changes in the fair value or cash flows of the hedging instruments. This exercise is carried out periodically to
ensure hedge effectiveness.

d) The hedged/un-hedged transactions are recorded separately. The hedged transactions are accounted for on
accrual basis. All trading contracts are mark-to-market and resultant gross gain or loss is recorded in income
statement.

In case of Option contracts, guidelines issued by FEDAI from time to time for recognition of income, premium,
and discount are being followed.

To mitigate the credit risk, the Bank has policy in place to sanction limits to the counterparty Banks and
Counterparty clients. The Bank adopts Current Exposure method for monitoring counterparty exposure
periodically. While sanctioning derivative limit, the competent authority may stipulate condition of obtaining
collaterals/margin as deemed appropriate. The derivative limit is reviewed periodically along with other credit
limits.

The customer related derivative transactions are covered with counterparty banks, on back-to-back basis for
identical amount and tenure and the bank does not carry any market risk.

ii) Quantitative disclosure:

(` in crore)
Quantitative Disclosures
31-03-2023 31-03-2022
S.
Particular Currency Interest Rate Currency Interest Rate
No.
Derivatives Derivatives Derivatives Derivatives
(a) Derivatives (Notional Principal Amount)
(i) For Hedging 3,994.00 3,165.00 370.64 2,180.00
(ii) For Trading 4,13,578.41 38,928.18 4,44,008.28 15,660.00
(b) Marked to Market Position
(i) Asset (+) 1,430.12 135.51 1,818.71 88.38
(ii) Liability (-) (1,326.16) (130.46) (1,683.63) (88.67)
(c) Credit Exposure (*) 10,364.27 493.24 11,041.95 267.08
(d) Likely impact of one percentage change in
interest rate (100*PV01) (in Lacs)
(i) On Hedging Derivatives -20,888.16 3,686.11 0.00 4,392.29
(ii) On Trading Derivatives -16.62 47.77 0.00 134.01
(e) Maximum and minimum of 100*PV01
observed during the year (in Lacs)
I. Maximum
(i) On Hedging (10,744.86) 4,652.40 0.00 5,454.20
(ii) On Trading 1,023.14 2,548.55 0.00 2,345.28
II. Minimum
(i) On Hedging (23,138.00) 3,686.11 0.00 1,407.51
(ii) On Trading (25.97) 14.82 0.00 22.40

*Note:

1. Credit Exposure of Interest Rate Derivatives also includes the exposure on Hedging deals.

2. Credit Exposure of Currency Derivatives also includes the exposure on Hedging deals
Integrated Annual Report
2022-23 285

d) CREDIT DEFAULT SWAPS:

The Bank has not entered into any Credit Default Swap transactions during the FY 22-23.

8. Disclosures relating to securitisation: Nil

9. Off – Balance Sheet SPVs sponsored by the Bank: Nil

10. TRANSFERS TO DEPOSITOR EDUCATION AND AWARENESS FUND (DEAF)

Strategy, Model & Capitals

(` in crore)
Particulars 31.03.2023 31.03.2022
Opening balance amounts transferred to DEAF 2,877.09 2,375.24
Add: Amounts transferred to DEAF during the Year 387.59 545.18
Less: Amount reimbursed by DEAF towards claims 65.85 43.33
Closing balance of Amount transferred to DEAF 3,198.83 2,877.09

11. DISCLOSURE OF COMPLAINTS:

Summary information on complaints received by the bank from customers and from the Office of Ombudsman (OBOs)

Particulars
Sr. 2022-23 2021-22

Notice
Complaints received by the Bank from its customers
No.
1. Number of complaints pending at beginning of the year (Including BO 1,395 10,780
Complaints)
2. Number of complaints received during the year (Including BO Complaints) 2,52,086 3,28,216
3. Number of complaints disposed during the year (Including BO Complaints) 2,52,954 3,37,601
3.1 Of which, number of complaints rejected by the bank 610 415
4. Number of complaints pending at the end of the year (Including BO 527 1,395
Complaints)

Statutory Reports
Maintainable complaints received by the bank from OBOs
5. Number of maintainable complaints received by the bank from OBOs 6,167 7,971
5.1 Of 5, number of complaints resolved in favour of the bank by BOs 2,241 7,229
5.2 Of 5, Number of complaints resolved through conciliation/ mediation/ 3,924 740
advisories issued by BOs
5.3 Of 5, number of complaints resolved after passing of Awards by BOs 2 2
against the bank.
6. Number of Awards unimplemented within the stipulated time (other than 0 0
those appealed)

Note:- Financial Statements

Maintainable complaints refer to complaints on the grounds specifically mentioned in Integrated Ombudsman Scheme,
2021 (Previously Banking Ombudsman Scheme, 2006) and covered within the ambit of the Scheme. However, the
above data collated from CMS site also includes those complaints settled by agreement per Clause 11 as well as
Rejected Complaints as per Clause 13 of Ombudsman Scheme 2006 which is under correspondence.
 Integrated Annual Report
286 2022-23

Top five grounds of complaints received by the Bank from customers (Including BO Complaints)
% increase/
Number of Number of decrease in Number of Of 5, number
complaints complaints the number complaints of complaints
Grounds of complaints (i.e.
pending at the received of complaints pending at pending
Complaints relating to)
beginning of during the received over the end of the beyond 30
the year year the previous year days
year
1 2 3 4 5 6
Current Year (2022-23)
01.04.2022 2022-23 31.03.2023 31.03.2023
ATM/Debit Cards 324 203453 (4.91%) 98 0
Internet/Mobile/Electronic 213 23432 (62.25%) 50 0
Banking
Levy of Charges Without prior 47 3860 (62.72%) 1 0
Notice/Excessive Charges/
Foreclosure Charges
Cheques/Drafts/Bills 11 765 (77.56%) 8 0
Credit Cards 32 1892 (40.76%) 0 0
Others 768 18684 (46.97%) 370 2
Total 1395 252086 (23.19%) 527 2
Previous Year (2021-22)
01.04.2021 2021-22 31.03.2022 31.03.2022
ATM/Debit Cards 4,583 2,13,956 -26.73% 324 50
Internet/Mobile/Electronic 344 62,068 1.61% 213 -
Banking
Levy of Charges Without prior 2,389 10,355 23.19% 47 71
Notice/Excessive Charges/
Foreclosure Charges
Cheques/Drafts/Bills 52 3,410 -36.03% 11 -
Credit Cards 27 3,194 -17.10% 32 17
Others 3,385 35,233 -20.51% 768 60
Total 10,780 3,28,216 -20.92% 1,395 198

12. DISCLOSURE OF PENALTIES IMPOSED BY RBI AND OTHER REGULATOR:

(` in crore)
Year ended Year ended
31st March 2023 31st March 2022
Name of Regulator
No. of Amount No. of Amount
Cases Cases
Banking Regulation Act, 1949 0 0.00 1 1.00
Other Regulators 0 0.00 1 0.46

13. Key Management Personnel – Remuneration paid.

(` in crore)
Particulars 31.03.2023 31.03.2022
CEO and Managing Director 0.49 0.37
Executive Directors 1.28 1.21
Total 1.77 1.58
Integrated Annual Report
2022-23 287

14. Other Disclosures

a) BUSINESS RATIOS

(` in crore)
Sr.
Particulars 31.03.2023 31.03.2022
No.
i) Interest Income as a percentage to Working Funds 6.60 6.11
ii) Non-interest income as a percentage to Working Funds 1.20 1.13

Strategy, Model & Capitals

iii) Cost of Deposit 4.37 4.12
iv) Net Interest Margin 2.90 2.71
v) Operating Profit as a percentage to Working Funds 2.08 1.97
vi) Return on Assets 0.69 0.47
vii) Average Business (Deposits plus advances) per employee (₹ in crore) 23.14 20.48
vi) Net Profit per employee (₹ in crore) 0.11 0.07

b) BANCASSURANCE BUSINESS:

The breakup of income derived from bancassurance business is given here below:

(` in crore)
Sr.
Nature of Income 31.03.2023 31.03.2022

Notice
No.
1. Life Insurance Policies 233.39 170.24
2. Non Life Insurance Policies 50.76 48.14
3. Health Insurance 49.13 38.03

c) Marketing and distribution

Details of fees / remuneration received in respect of the marketing and distribution function (excluding bancassurance
business):

Statutory Reports
(` in crore)
Sr.
Nature of Income 31.03.2023 31.03.2022
No.
1. Distributing Mutual Fund Business 19.76 17.66

d) Priority Sector Lending Certificate

Other income of the Bank inter alia includes commission income of ` 167.16 Crore from sale of Priority Sector Lending
Certificate. Traded value of PSCL certificate are given below:

Financial Statements
(` in crore)
Category Traded Value
PSLC-General --
PSLC-Small & Marginal Farmer 15,450.00
TOTAL 15,450.00
 Integrated Annual Report
288 2022-23

e) Provision & Contingencies

(` in crore)
Break up of Provision & Contingencies 31.03.2023 31.03.2022
Provision / (Reversal) for NPI on Investment 1,915.18 214.61
Provision towards NPA 12,478.98 11,613.25
Provision/(Reversal) towards Standard Assets (992.73) 1,449.02
Net Provision made towards Income Tax (IT)/ Deferred tax assets (DTA) 3,704.45 3,347.31
Other Provision and Contingencies:
- Shifting Loss -- --
- Restructured Advances (96.98) (32.94)
- Others 24.98 49.83
TOTAL 17,033.88 16,641.08

f) Implementation of IFRS converged Indian Accounting Standards (Ind AS)

The RBI vide DBR.BP.BC.No. 76/21.07.001/2015-16 dated 11th February 2016, has prescribed the roadmap for
implementation of Indian Accounting Standards (Ind-AS) in the Banks and the Banks needs to disclose the strategy for
Ind-AS implementation, including the progress made in this regard. The Bank accordingly, has appointed a Consultant
to assist in implementation of the Ind-AS. Further, the Bank has procured the required softwares and onboarded the
vendor for software implementation of Indian Accounting Standards (Ind-AS). The Bank has also constituted a Steering
Committee to oversee the progress made and the Audit Committee of the Board is being apprised of the same from
time to time. Further, in terms of DO.DBR.BP.No.2535/21.07.001/2017-18 dated 13th September 2017, the Bank had
been submitting Proforma Ind AS financial statements to the RBI on quarterly basis till 31st March 2021. Thereafter, in
term of RBI’s (Department of Regulation) mail dated 8th August 2021, bank has been advised to submit Proforma Ind
AS financial statements on half yearly basis. Last proforma financials for the half year ended 30th September 2022 was
submitted to RBI vide letter dated 22nd November 2022.

g) Payment of DICGC insurance premium

(` in crore)
Sr. No. Particulars 31.03.2023 31.03.2022
i) Payment of DICGC Insurance Premium (Inclusive of GST) 1,448.90 1,278.48
ii) Arrears in payment of DICGC premium (Inclusive of GST) -- --

15. DISCLOSURES AS PER ACCOUNTING STANDARDS ISSUED BY THE INSTITUTE OF CHARTERED

ACCOUNTANTS OF INDIA

a. REVENUE RECOGNITION (AS 9)

Income and Expenditure have been accounted for on accrual basis except certain items of income are recognized on
realization basis as per Accounting Policy no.3.4 of Schedule 17 of Significant Accounting Policies which however, is
not considered to be material.

b. EMPLOYEE BENEFITS (AS 15 - REVISED)

i) Short Term Employment Benefits:

The undiscounted amounts of short-term employee benefits (e.g. medical benefits) payable wholly within twelve
months of rendering the service are treated as short term and recognized during the period in which the employee
rendered the service.
Integrated Annual Report
2022-23 289

ii) Long Term Employee Benefits:

a) Defined Contribution Plans:

The Bank operates a new pension scheme (NPS) for all officers/employees joining the Bank on or after 1st April,2010,
which is a defined contribution plan, such new joinees not being entitled to become members of the existing
Pension Scheme. As per the scheme, the covered employees contribute 10% of their basic pay plus dearness
allowance to the scheme together with 14% contribution from the Bank. Pending completion of registration

Strategy, Model & Capitals

procedures of the employees concerned, these contributions retained with the Bank. The Bank recognizes such
annual contributions in the year to which they relate. Upon receipt of the Permanent Retirement Account Number
(PRAN), the consolidated contribution amounts are transferred to the NPS trust.

The Bank has Defined Contribution Pension Scheme (DCPS) applicable to all categories of officers and employees
joining the Bank on or after April 1, 2010. The scheme is managed by National Pension Scheme (NPS) Trust under
the aegis of the Pension Fund Regulatory and Development Authority. National Securities Depository Limited has
been appointed as the Central Record Keeping Agency for the NPS. During F.Y. 2022-2023, the Bank has contributed
` 525.36 crores including arrears of ` 0.12 crores (Previous Year `501.51 crore) to NPS.

b) Defined Benefit Plan:

Gratuity, Pension and Leave Encashment are defined benefit plans. These are provided for on the basis of an actuarial

Notice
valuation as per Accounting Standard-15 “Employee Benefit” issued by the Institute of Chartered Accountants of
India, made at the end of each financial year, based on the projected unit credit method. Actuarial gains/losses are
immediately taken to the Profit & Loss account.

Defined Benefit Plans – Employee’s Pension plan and Gratuity plan:

The Bank has accounted for employee benefits as per Accounting Standards issued by the Institute of Chartered
Accountants of India, as per actuarial valuation report for the year ended March 31, 2023.

Statutory Reports
(` in crore)
S. 31.03.2023 31.03.2022
Particular
No. Gratuity Pension Gratuity Pension
i) Table showing change in Defined Benefit Obligation:
Liability at the beginning of the year 3,197.81 28,650.99 3,355.82 26,011.41
Interest Cost 233.76 2,120.17 232.56 1,797.39
Current Service Cost 163 184.38 161.12 212.30
Past Service Cost (Vested Benefit NIL NIL NIL NIL
Amortized)

Financial Statements
Past Service Cost (Vested Benefit) NIL NIL NIL 1902.02
Liability Transfer in NIL NIL NIL NIL
Liability Transfer out NIL NIL NIL NIL
(Benefit paid) (334.38) (2,120.73) (465.84) (2,341.52)
Actuarial (Gain)/loss on obligation –due to change
In the financial assumption (63.88) (278.47) (119.57) (1,446.34)
in demographic assumption NIL NIL 2.86 63.46
Actuarial (Gain) / Loss on obligations 29.55 614.25 30.86 2,452.27
Liability at the end of the year 3,225.86 29,170.59 3,197.81 28,650.99
 Integrated Annual Report
290 2022-23

(` in crore)
S. 31.03.2023 31.03.2022
Particular
No. Gratuity Pension Gratuity Pension
ii) Table of Fair value of Plan Assets:
Fair value of Plan Assets at the beginning of 3,367.60 27,043.50 2,746.43 26,720.88
the year
Expected return on Plan Assets 246.17 2,001.22 190.33 1,846.41
Contributions NIL 1,780.29 843.37 551.42
Transfer from Other Company 0.29 NIL NIL NIL
Transfer to Other Company NIL NIL NIL NIL
(Benefit paid) (334.38) (2,120.73) (465.84) (2,341.52)
Actuarial (Gain)/loss on Plan Assets (17.33) 49.96 (53.31) (266.31)
Fair Value of Plan Assets at the end of the 3,262.35 28,754.24 3,367.60 27,043.50
year
Actuarial (Gain)/loss on obligation for the (34.33) 335.78 (85.85) 1,069.39
period
Actuarial (Gain)/loss on Plan Assets 17.33 (49.96) (53.31) (266.31)
Total Actuarial (Gain)/loss to be recognized (17.00) 285.82 (139.16) 803.08
iii) Recognition of Transitional Liability :
Transitional Liability at start NIL NIL NIL NIL
Transitional Liability recognized during the NIL NIL NIL NIL
year
Transitional Liability at end NIL NIL NIL NIL
iv) Actual return on Plan Assets :
Expected Return on Plan Assets 246.17 2,001.22 190.33 1,846.41
Actuarial Gain/(Loss) on Plan Assets (17.33) 49.96 53.31 266.31
Actual return on Plan Assets 228.84 2,051.18 243.64 2,112.72
v) Expenses recognized in the Income Statement:
Current Service Cost 163.00 184.38 161.12 212.30
Interest Cost (12.41) 118.95 42.23 (49.02)
Expected Return on Plan Assets NIL NIL NIL NIL
Past Service Cost (Vested Benefit NIL NIL NIL NIL
Amortized) recognized
Past Service Cost (Vested Benefit) NIL 1,521.62 NIL 380.40
recognized(1/5 of enhanced family pension)
Recognition of Transition Liability NIL NIL NIL NIL
Actuarial (Gain) or Loss (17.00) 285.82 (139.16) 803.08
Expenses Recognized in P & L 133.59 2,110.77 64.19 1346.76
vi) Balance Sheet Reconciliation:
Opening Net Liability (Last year net amount (169.79) 85.87 609.39 (709.47)
recognized in the balance sheet)
Expenses as above 133.59 2,110.77 64.19 1,346.76
Transfer from other Company (Net) (0.29) NIL NIL NIL
Transfer to other Company (Net) NIL NIL NIL NIL
(Employer Contribution) NIL (1,780.29) (843.37) (551.42)
Net (Asset)/Liability Amount recognized in (36.49) 416.35 (169.79) 85.87
Balance Sheet
Integrated Annual Report
2022-23 291

(` in crore)
S. 31.03.2023 31.03.2022
Particular
No. Gratuity Pension Gratuity Pension
vii) Other Details:
Pension is payable at the rate of 1/66
Salary for Each Year of Service Subject to
Maximum of 50%.

Strategy, Model & Capitals

Gratuity is payable at the rate of 15 days
salary for each year of service subject to
maximum of ` 20,00,000 or as per the Bank
scheme.
Actuarial gain / loss is accounted for in the
year of occurrence.
Salary escalation is considered as advised
by the company which is in line with the
industry practice considering promotion and
demand and supply of the employees.
No. of Members 75,618 21,138 75,201 23,216
Salary Per Month 513.88 513.88 354.44 182.95
Contribution for next year 139.74 587.94 - 592.76

Notice
viii) Category of assets:
Government of India Assets 61.47 565.13 63.45 585.14
Corporate Bonds/FDR 25.75 720.80 36.15 721.81
Special Deposits Scheme - - - -
State Govt. 82.81 1,379.39 101.17 1,185.78
Property NIL NIL NIL NIL
Other 64.13 454.17 244.10 1,733.36

Statutory Reports
Insurer Managed Funds 3,028.18 25,634.75 2,897.20 22,492.80
Mutual Fund NIL NIL 25.53 324.61
Total 3,262.34 28,754.24 3,367.60* 27,043.50*

*Note: Return on investments in LIC & other insurance companies is expected at 7.50% while arriving Pension liability
and Gratuity liability at the Fair Value of Plan Assets for the FY2022-23 as against the 7.25% considered for arriving
Pension and Gratuity liability for the FY2021-22.
(` in crore)
Surplus/Deficit in the Plan: Gratuity Plan

Financial Statements
Amount recognized in the Balance-Sheet 31.03.23 31.03.22 31.03.21 31.03.20* 31.03.19*
Liability at the end of the year 3,225.86 3,197.81 3,355.82 1,291.94 1,222.64
Fair value of Plan Assets at the end of the year 3,262.35 3,367.60 2,746.43 1,219.01 1,202.14
Difference 36.49 169.79 (609.39) (72.93) (20.50)
Unrecognized Past Service Cost Nil Nil Nil Nil Nil
Unrecognized Transition Liability Nil Nil Nil Nil Nil
Amount Recognized in the Balance Sheet 36.49 169.79 (609.39) (72.93) (20.50)
* Amount mentioned for Union Bank (Standalone) only.
 Integrated Annual Report
292 2022-23

(` in crore)
Amount recognized in the Balance-Sheet Gratuity Plan
Experience Adjustment 31.03.23 31.03.22 31.03.21 31.03.20* 31.03.19*
On plan liability (Gain) / Loss 29.55 30.86 752.31 25.87 7.91
On plan Assets (Loss) / Gain (17.33) 53.31 34.41 7.20 (13.03)
* Amount mentioned for Union Bank (Standalone) only.

(` in crore)
Surplus/Deficit in the Plan: Pension Plan
Amount recognized in the Balance-Sheet 31.03.23 31.03.22 31.03.21 31.03.20* 31.03.19*
Liability at the end of the year 29,170.59 28,650.99 26,011.41 12,746.69 12,158.43
Fair value of Plan Assets at the end of the year 28,754.24 27,043.50 26,720.88 12,607.16 12,308.84
Difference (416.35) (1,607.49) 709.47 (139.53) 150.41
Unrecognized Past Service Cost Nil 1,521.62 Nil Nil Nil
Unrecognized Transition Liability Nil Nil Nil Nil Nil
Amount Recognized in the Balance Sheet (416.35) (85.87) 709.47 (139.53) 150.41
* Amount mentioned for Union Bank (Standalone) only.

(` in crore)
Amount recognized in the Balance-Sheet Pension Plan
31.03.23 31.03.22 31.03.21 31.03.20* 31.03.19*
Experience Adjustment
On plan liability (Gain) / Loss 614.25 2,452.27 1,456.27 938.90 125.22
On plan Assets (Loss) / Gain 49.96 266.31 81.65 75.23 7.18
* Amount mentioned for Union Bank (Standalone) only.

2022-23 2021-22
Principal actuarial assumption used (%)
Gratuity Pension Gratuity Pension
Discount Rate Prev. 7.31 7.40 6.93 6.91
Rate of return on Plan Assets Prev. 7.31 7.40 6.93 6.91
Salary Escalation Prev. 5.00 5.00 5.00 5.00
Attrition Rate Prev. 2.00 2.00 2.00 2.00
Discount Rate Current 7.49 7.53 7.31 7.40
Rate of Return on Plan Assets Current 7.49 7.53 7.31 7.40
Salary Escalation Current 5.00 5.00 5.00 5.00
Attrition Rate Current 2.00 2.00 2.00 2.00

iii) Other long term Employee Benefits:

Details of Provisions made for various Long-Term Employees Benefits during the year are as follows:
(` in crore)
Sr.
Other Long Term Benefits 31.03.2023 31.03.2022
No.
1. Pension 2,110.77 1,346.76
2. Leave Travel Concession 3.66 13.41
3. Leave Encashment 149.30 48.70

Bank is having provision of ` 268.76 Crore towards Sick Leave on prudential basis though there is no payout.
Integrated Annual Report
2022-23 293

iv) Unamortized Family pension & Gratuity Liabilities:

Particulars 31.03.2023 31.03.2022

Pension
a) Balance brought forward 1,521.62 NIL
b) Gross Liability NIL 1,902.02
c) Charged to Profit & Loss account 1,521.62 380.40

Strategy, Model & Capitals

d) Balance Carried forward NIL 1,521.62
Gratuity
a) Charged to Profit & Loss account NIL NIL
b) Carried forward NIL NIL

a. Pursuant to the revision in family pension payable to the employees of the Bank, covered under 11th Bi- Partite Settlement
and joint note dated November 11, 2020, the Bank had arrived additional liability at ₹ 1,902.02 Crore as per Actuarial
valuation, of which a sum of ₹ 380.40 Crore was amortized during the FY 2021-22, in terms of RBI Circular no. RBI/2021-
22/105 DOR.ACC.REC.57/21.04.018/2021-22 dated October 04, 2021 and unamortized part of ₹ 1,521.62 Crore has been
fully charged to the Profit & Loss Account during the year ended March 31, 2023. There is no unamortized expenditure
in the Balance Sheet on account of additional family pension.

c. i) SEGMENT REPORTING (AS-17)

(` in crore)

Notice
Standalone
Year Ended
Business Segment
(Audited) (Audited)
31.03.2023 31.03.2022
Segment Revenue
Treasury Operations 26,442.90 26,815.66
Retail Banking Operations 31,078.66 26,198.04
(a) Digital Banking Operations 569.38 NA

Statutory Reports
(b) Other Retail Banking Operations 30,509.28 26,198.04
Corporate /Wholesale Banking 35,941.71 25,776.79
Other Banking Operations 1,979.37 1,397.64
Unallocated 496.71 403.35
Total Segment Revenue 95,939.35 80,591.48
Less Inter-segment Revenue (562.86) (122.70)
Income from operations 95,376.49 80,468.78
Segment Results
Treasury Operations 2,426.80 6,002.74

Financial Statements
Retail Banking Operations 5,059.25 4,508.68
(a) Digital Banking Operations (43.07) NA
(b) Other Retail Banking Operations 5,102.32 4,508.68
Corporate Banking 3,091.44 (3,093.72)
Other Banking Operations 1,063.52 758.37
Unallocated 496.71 403.35
Total Profit/(Loss) Before Tax 12,137.72 8,579.42
Provision for Tax 3,704.45 3,347.31
Net Profit/(Loss) after Tax 8,433.27 5,232.11
Segment Assets
Treasury Operations 4,64,788.70 4,78,735.97
Retail Banking Operations 3,59,680.33 3,18,913.60
(a) Digital Banking Operations 42,263.05 NA
 Integrated Annual Report
294 2022-23

(` in crore)
Standalone
Year Ended
Business Segment
(Audited) (Audited)
31.03.2023 31.03.2022
(b) Other Retail Banking Operations 3,17,417.28 3,18,913.60
Corporate/Wholesale Banking 4,26,011.76 3,68,181.73
Other Banking Operations - -
Unallocated 30,271.66 21,759.76
Total 12,80,752.45 11,87,591.06
Segment Liabilities
Treasury Operations 4,56,704.84 4,70,252.54
Retail Banking Operations 3,28,812.17 2,90,449.81
(a) Digital Banking Operations 38,724.27 NA
(b) Other Retail Banking Operations 2,90,087.90 2,90,449.81
Corporate/Wholesale Banking 3,88,190.19 3,35,313.11
Other Banking Operations - -
Unallocated 28,711.04 20,999.47
Total 12,02,418.24 11,17,014.93
Capital Employed
Treasury Operations 8,083.86 8,483.43
Retail Banking Operations 30,868.16 28,463.79
(a) Digital Banking Operations 3,538.78 NA
(b) Other Retail Banking Operations 27,329.38 28,463.79
Corporate/Wholesale Banking 37,821.57 32,868.62
Other Banking Operations - -
Unallocated 1,560.62 760.29
Total 78,334.21 70,576.13

Notes:
1. The Bank operates in four segments viz., Treasury, Retail, Corporate / Wholesale and Other Banking Operations.
These segments have been identified in line with AS-17 on segment reporting issued by the Institute of Chartered
Accountants of India (ICAI) after considering the nature and risk profile of the products and services, the target
customer profiles, the organizational structure and the internal reporting system of the bank. The bank has disclosed
the business segment as primary segment. The revenue and other parameters of foreign branch for the period are
within the threshold limits stipulated as per AS-17 and hence the bank has only one reportable segment.

2. Segment wise income, expenditure, Capital employed which are not directly allocable have been allocated to the
reportable segments based on assumptions as considered appropriate by the management.

3. Figure of previous period have been regrouped/reclassified wherever necessary.

4. In accordance with RBI circular DOR.AUT.REC.12/22.01.001/2022-23 dated April 7, 2022 on Establishment of

Digital Banking Units, the Bank has for the first time disclosed ‘Digital Banking’ as a sub-segment of the Retail
Banking segment.

c. ii) In terms of RBI circular no. RBI/DOR/2021-22/83 DOR.ACC.REC.No.45/21.04.018/2021-22 dated August 30, 2021
(Updated as on February 20, 2023), the following disclosures are required:
a. In case of Other Liabilities and Provisions, any item under the head “Others (including provisions)” exceeds one
per cent of the total assets,
Integrated Annual Report
2022-23 295

b. In case of Other Assets, any item under the head “Others” exceeds one per cent of the total assets,

c. In case of Other Income, any item under the head “Miscellaneous Income” exceeds one per cent of the total income,

d. In case of Operating Expenses, any item under the head “Other expenditure” exceeds one per cent of the total
income,

Statement Showing item in Sch. 14- Other income Sub Head – Miscellaneous income

Strategy, Model & Capitals

% of Total
Item under the Sub Head (₹ in Crore)
Income
Processing Charges for Advances 1,178.18 1.24
Miscellaneous Earning 1,004.21 1.05
Recovery In Write Off 5,549.49 5.82

There is no other disclosure related to other heads as mentioned above.

RELATED PARTY DISCLOSURES (AS-18)

i. List of Related Parties

a) Subsidiaries

Notice
• Union Asset Management Co. Pvt. Ltd.
• Union Trustee Company Pvt. Ltd.
• Union Bank of India (UK) Ltd.
• Andhra Bank Financial Services Ltd.
• UBI Services Ltd.

b) Joint Venture

• Star Union Dai-Ichi Life Insurance Co. Ltd.

• ASREC (India) Ltd.

Statutory Reports
• India International Bank (Malaysia) Berhad

c) Associate

• Chaitanya Godavari Grameena Bank

d) Key Management Personnel

(` in crore)
Remuneration paid for the Year
Name Designation
ended 31st March 2023

Financial Statements
Shri Rajkiran Rai G. @ Managing Director & CEO 0.19
Ms. A Manimekhalai # Managing Director & CEO 0.30
Shri Manas Ranjan Biswal ## Executive Director 0.11
Shri Nitesh Ranjan Executive Director 0.39
Shri Rajneesh Karnatak Executive Director 0.34
Shri Nidhu Saxena Executive Director 0.32
Shri Ramasubramanian S ^ Executive Director 0.12

@ Till 31.05.2022
# From 03.06.2022
## Till 30.04.2022
^ From 21.11.2022
 Integrated Annual Report
296 2022-23

Parties with whom transactions were entered into during the year

No disclosure is required in respect of related parties, which are “State controlled Enterprises” as per
paragraph 9 of Accounting Standard (AS) 18. Further, in terms of paragraph 6 of AS 18, transactions in the
nature of Banker – Customer relationship have not been disclosed including those with Key Management
Personnel and relatives of Key Management Personnel.

As per the RBI Master Direction, KMPs are construed to be the Whole Time Directors of the Bank.

e. “Leases” – Premises taken on Operating Lease (AS 19):

The Bank has no non-cancellable operating lease during the FY 2022-23. Hence, additional disclosure
under AS-19 is not applicable. However, the amount of lease payment recognized in the profit & loss
account for operating lease is ` 801.99 crore (PY ` 816.15 crore)

f. EARNING PER SHARE (AS-20)

Basic earnings per equity share are computed by dividing net profit after tax by the weighted average
number of equity shares outstanding during the year. The diluted earnings per equity share is computed
using the weighted average number of equity shares and weighted average number of diluted potential
equity shares outstanding during the year.

The computation of earnings per share is given below:

Particulars 31.03.2023 31.03.2022
Number of Equity shares at the beginning of the year 6,83,47,47,466 6,40,68,44,355
Number of Equity shares issued during the year Nil 42,79,03,111
Number of Equity shares outstanding at the end of the year 6,83,47,47,466 6,83,47,47,466
Weighted Average Number of Equity Shares used in computing 6,83,47,47,466 6,77,26,13,590
Basic Earnings per share
Weighted Average Number of Shares used in computing diluted 6,83,47,47,466 6,77,26,13,590
Earnings per share
Net Profit/(Loss) ` in Crore 8,433.28 5,232.11
Basic Earnings per share (`) 12.34 7.73
Diluted Earnings per share (`) 12.34 7.73
Nominal Value per share (`) 10.00 10.00

g. PROVISION FOR TAXES:

i. Deferred Tax (AS-22)

(` in crore)
Sr.
Particulars 31.03.2023 31.03.2022
No.
Deferred Tax Assets
1 Employee Benefits (Leave Encashment) 534.18 474.78
2 Depreciation on Fixed Assets 395.89 358.42
3 On account of other provisions 11405.67 14,069.38
4 Foreign Currency Translation Reserve -84.48 1.14
5 Standard Asset 0.00 588.37
Total 12251.26 15,492.08
Deferred Tax Liabilities
Integrated Annual Report
2022-23 297

(` in crore)
Sr.
Particulars 31.03.2023 31.03.2022
No.
1 Accrued interest on securities 1274.79 1,092.63
2 Special Reserves u/s 36(i)(viii) 2316.74 2,107.08
3 Depreciation on Investment --
Total 3,591.53 3,199.71

Strategy, Model & Capitals

Net Deferred Tax Asset 8,659.73 12,292.37
Net Deferred Tax Liability Nil

ii. Direct Tax

(` in crore)
Particulars 31.03.2023 31.03.2022
Provision for Income Tax (Including Deferred tax ) 3,704.45 3,347.31

CORPORATE TAXATION:
Provision for tax is made for both current and deferred taxes. Current tax is provided on the taxable income
using applicable tax rates and tax laws. Deferred Tax Assets and Deferred Tax Liabilities arising on account

Notice
of timing differences and which are capable of reversal in subsequent periods are recognized using the tax
rates and the tax laws that have been enacted or substantively enacted till the date of the Balance Sheet.

Deferred Tax Assets are recognized only if there is virtual certainty of realization of such assets in future.
Deferred Tax Assets/Liabilities are reviewed at each Balance Sheet date based on developments during the
year.

h. INVESTMENT IN JOINT VENTURES (AS – 27)

Statutory Reports
Investments include ` 286.88 Crores (Previous year ` 236.68 Crores) representing Bank’s interest in Star
Union Dai-ichi Life Insurance Co., ASREC(India) Limited, and India International Bank (Malaysia) BHD.

i. Revaluation of Property
Land and Building of the bank were revalued as on 31.12.2019 at Fair Market Value as determined by
approved valuer have further been revalued as on 31.12.2022 at Fair Market Value by approved valuer. The
resultant increase in value thereof on such revaluations amounting to ₹ 1,418.26 crore for Premises and
₹ 101.02 crore for Vacant Land as on 31.12.2022 have been credited to Revaluation Reserve. As AS-10
(Revised), the depreciation of revalued portion is recouped from Revaluation Reserve resulting in decrease

Financial Statements
in Revaluation Reserve by ₹ 125.20 crore for the year ended 31st March, 2023.

j. IMPAIRMENT OF ASSET (AS-28)

In the opinion of the Management, there is no indication for Impairment during the year with regard to the
asset to which Accounting Standards 28 applies.

k. CONTINGENT LIABILITIES (AS – 29)

Contingent liabilities referred to in Schedule-12 at S. No.(I) & (VI) are dependent upon the outcome of
court/arbitration/out of court settlement, the amount being called up, terms of contractual obligations,
devolvement and raising of demand by parties concerned, disposal of appeals respectively.

l. During the current year, there is no material prior period item (as per AS 5) and no discontinued operations
(as per AS 24).
 Integrated Annual Report
298 2022-23

m. Climate Control
Union Bank of India has a policy in place in name of “Sustainable Development and Business Responsibility
Policy” which is reviewed every year and last reviewed by the Board on 02.03.2023. Through this policy,
the Bank is committed to make effort to protect and restore the environment. Bank has taken various
initiatives like Electricity Conservations, avoid usage of plastic bottles for packaged drinking water etc.
To manage Environmental, Social and Governance (ESG) and climate risk, the Bank’s Board has put in
place “ESG Risk Framework and Climate Risk Policy”. The Bank has formed ESG Steering Committee to
formulate and implement ESG strategy and transition in the Bank.

n. BALANCING OF BOOKS, RECONCILIATION OF INTER BRANCH / BANK TRANSACTIONS

(i) Confirmation/ Reconciliation of balance with foreign banks and other banks has been obtained/carried
out.

(ii) Adjustment of outstanding entries in Suspense Accounts, Sundry Deposits, Clearing Adjustments,
Bank Reconciliation Statements and various inter-branch/office accounts is in progress.

(iii) Pending final clearance of the (i) and (ii), the overall impact, if any, on the accounts, in the opinion of
the management will not be significant.

o. Compliance to the Provision of MSME Development Act, 2006

Bank is complying with the extant provisions of MSME Development Act, 2006 and there has been no
reported cases of any delayed payments of the principal amount or interest due thereon to Micro, Small
and Medium Enterprises.

The figures of the previous year have been regrouped/rearranged wherever considered necessary.

(PANKAJ KUMAR) (PRAFULLA KUMAR SAMAL)

DY. GENERAL MANAGER CHIEF FINANCIAL OFFICER

(RAMASUBRAMANIAN S) (NIDHU SAXENA) (NITESH RANJAN)

EXECUTIVE DIRECTOR EXECUTIVE DIRECTOR EXECUTIVE DIRECTOR

(ARUN KUMAR SINGH) (SURAJ SRIVASTAVA)

DIRECTOR DIRECTOR

(LAXMAN S UPPAR) (JAYADEV MADUGULA) (PRITI JAY RAO)

DIRECTOR DIRECTOR DIRECTOR

(A. MANIMEKHALAI)
MANAGING DIRECTOR & CEO

(SRINIVASAN VARADARAJAN)
CHAIRMAN

For M/s R G N Price & Co. For M/s SARDA & PAREEK LLP For M/s C R Sagdeo & Co.
Chartered Accountants Chartered Accountants Chartered Accountants
FRN 002785S FRN 109262W/W100673 FRN 108959W

CA P M Veeramani CA Niranjan Joshi CA Sachin V Luthra

Partner Partner Partner
Membership No.023933 Membership No.102789 Membership No. 109127
UDIN: 23023933BGVFVB8763 UDIN: 23102789BGWREB5291 UDIN: 23109127BGQVHR6655

For M/s P V A R & Associates For M/s Gopal Sharma & Co. For M/s NBS & Co.
Chartered Accountants Chartered Accountants Chartered Accountants
FRN 005223C FRN 002803C FRN 110100W

CA Ruchi Agarwal CA Abhishek Sharma CA Pradeep J. Shetty

Partner Partner Partner
Membership No.504134 Membership No.079224 Membership No. 046940
UDIN:23504134BGWTPP4106 UDIN: 23079224BGTKQO2274 UDIN: 23046940BGPTTS7892
Place : MUMBAI
Date : 6th May, 2023
Integrated Annual Report
2022-23 299

Standalone Cash Flow Statement

For the Year Ended 31st March, 2023
(` in lacs)
S. Year ended Year ended
Particulars
No. 31 March, 2023 31 March, 2022
A CASH FLOW FROM OPERATING ACTIVITIES:

Strategy, Model & Capitals

Net Profit Before Tax 12,13,772 8,57,941
Adjustments for:
Depreciation on Fixed Assets 73,715 73,809
Provision for Investments 1,67,478 21,461
Provision for Non Performing Assets (Net) 12,47,897 11,61,326
Provision for Standard Asset (1,16,241) 1,36,521
Provision for other items (Net) 9,770 10,072
(Profit)/Loss on Sale or Disposal of Fixed Assets 149 35
Interest on Borrowings : Capital Instruments 1,58,601 1,55,133
Dividend received from Investments (6,968) (3,019)
Transfer to/from reserves (67,520) 72,382
Sub Total 26,80,653 24,85,662
Adjustments for:

Notice
Increase / (Decrease) in Deposits 85,32,369 1,08,58,729
Increase / (Decrease) in Other Liabilities and Provisions 10,48,458 (90,800)
(Increase) / Decrease in Investments 7,63,829 (17,40,928)
(Increase) / Decrease in Advances (1,13,31,977) (81,63,505)
(Increase) / Decrease in Other Assets (7,67,147) 4,45,843
Direct taxes paid (Net of Refund) (3,27,752) (1,73,612)
NET CASH FLOW FROM OPERATING ACTIVITIES (A) 5,98,433 36,21,389
B CASH FLOW FROM INVESTING ACTIVITIES :

Statutory Reports
Purchase of Fixed Assets (3,05,524) (73,970)
Proceeds from Sale/Adjustment of Fixed asset 68,230 15,382
(Increase)/Decrease in Investment in Subsidiary (10,473) 19,907
Dividend received from Investment 6,968 3,019
NET CASH FLOW FROM INVESTING ACTIVITIES (B) (2,40,799) (35,662)
C CASH FLOW FROM FINANCING ACTIVITIES :
Proceeds from issue of Equity Share Capital Including Share Premium - 1,44,208
(Net)
Proceeds from issue of Capital Instruments 98,300 7,00,000
Repayments of Capital Instruments (10,000) (5,40,000)

Financial Statements
(Decrease)/Increase Borrowings other than Capital Instruments (8,92,463) (2,25,801)
Interest Paid on Borrowings : Capital Instruments (1,58,601) (1,55,133)
Dividend paid during the year (1,29,861) -
NET CASH FLOW FROM FINANCING ACTIVITIES (C) (10,92,624) (76,726)
Net Increase (Decrease) in Cash & Cash Equivalent ( A )+( B )+( C ) (7,34,990) 35,09,001
Cash and Cash Equivalents as at the beginning of the year 1,19,50,036 84,41,035
Net cash and cash equivalents at the end of the year 1,12,15,045 1,19,50,036
 Integrated Annual Report
300 2022-23

(` in lacs)
S. Year ended Year ended
Particulars
No. 31 March, 2023 31 March, 2022
Components of Cash and Cash equivalents
D CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE YEAR
Cash and Balances with RBI (including FC notes) 46,11,259 37,88,046
Balances with Banks and Money at call 73,38,777 46,52,989
Net cash and cash equivalents at the beginning of the year 1,19,50,036 84,41,035
E CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR
Cash and Balance with RBI (including FC notes) 50,25,427 46,11,259
Balances with Banks and Money at call 61,89,618 73,38,777
Net cash and cash equivalents at the end of the year 1,12,15,045 1,19,50,036
Previous Year’s figures have been regrouped/recasted wherever considered necessary to correspond with the year ended
classification/ presentation.

(PANKAJ KUMAR) (PRAFULLA KUMAR SAMAL)

DY. GENERAL MANAGER CHIEF FINANCIAL OFFICER

(RAMASUBRAMANIAN S) (NIDHU SAXENA) (NITESH RANJAN)

EXECUTIVE DIRECTOR EXECUTIVE DIRECTOR EXECUTIVE DIRECTOR

(ARUN KUMAR SINGH) (SURAJ SRIVASTAVA)

DIRECTOR DIRECTOR

(LAXMAN S UPPAR) (JAYADEV MADUGULA) (PRITI JAY RAO)

DIRECTOR DIRECTOR DIRECTOR

(A. MANIMEKHALAI)
MANAGING DIRECTOR & CEO

(SRINIVASAN VARADARAJAN)
CHAIRMAN
Auditors Certificate:
We, the undersigned Statutory Auditors of the Union Bank of India, have verified the above Standalone Cash Flow Statement
of the Bank for the year ended 31.03.2023. The statement has been prepared in Indirect Method in accordance with the
AS-3, “Cash Flow Statement” issued by The Institute of Charterted Accountants of India and with the requirments of the
SEBI (Listing Obligations & Disclosure Requirements), 2015 and is based on and in agreement with the corresponding
Standalone Profit & Loss Account and the Standalone Balance Sheet of the Bank covered by our report of the May 06, 2023
to the members.

For M/s R G N Price & Co. For M/s SARDA & PAREEK LLP For M/s C R Sagdeo & Co.
Chartered Accountants Chartered Accountants Chartered Accountants
FRN 002785S FRN 109262W/W100673 FRN 108959W

CA P M Veeramani CA Niranjan Joshi CA Sachin V Luthra

Partner Partner Partner
Membership No.023933 Membership No.102789 Membership No. 109127
UDIN: 23023933BGVFVB8763 UDIN: 23102789BGWREB5291 UDIN: 23109127BGQVHR6655

For M/s P V A R & Associates For M/s Gopal Sharma & Co. For M/s NBS & Co.
Chartered Accountants Chartered Accountants Chartered Accountants
FRN 005223C FRN 002803C FRN 110100W

CA Ruchi Agarwal CA Abhishek Sharma CA Pradeep J. Shetty

Partner Partner Partner
Membership No.504134 Membership No.079224 Membership No. 046940
UDIN:23504134BGWTPP4106 UDIN: 23079224BGTKQO2274 UDIN: 23046940BGPTTS7892
Place : MUMBAI
Date : 6th May, 2023
Integrated Annual Report
2022-23 301

Independent Auditors’ Report

To

The President of India /

The Members of Union Bank of India

Strategy, Model & Capitals

Mumbai

Report on Audit of the Consolidated Financial Statements

Opinion
1. We have audited the accompanying Consolidated Financial Statements of Union Bank of India (the “Bank”) which
comprise the Consolidated Balance Sheet as at March 31, 2023, the Consolidated Profit and Loss Account and the
Consolidated Cash Flow Statement for the year then ended, and Notes to the Consolidated Financial Statements
including Significant Accounting Policies and other explanatory information, in which following are incorporated –

a. Audited Standalone Financial Statements of the Bank;

b. Audited Financial Statements of 2 Domestic Subsidiaries, 1 Regional Rural Banks (Associate) 1 Foreign Subsidiary

Notice
Entity and 1 Foreign Jointly Controlled Entity.

c. Unaudited financial statements of 2 domestic Subsidiaries and 2 Domestic Jointly Controlled Entities

The above entities together with the Bank are referred to as the “Group”.

In our opinion and to the best of our information and according to explanations given to us, and based on the consideration
of the reports of the other auditors on separate financial statements, the unaudited financial statements and the other
financial information of the subsidiaries, Jointly controlled entities and associates as furnished by the management, the

Statutory Reports
aforesaid Consolidated Financial Statements are in conformity with accounting principles generally accepted in India
and give:

a. true and fair view in case of the Consolidated Balance Sheet, of the state of affairs of the Bank as at March 31, 2023;

b. true balance of Profit in case of Consolidated Profit & Loss account for the year ended on that date; and

c. true and fair view of the cash flows in case of Consolidated Cash Flows Statement for the year ended on that date.

Basis of Opinion
2. We conducted our audit in accordance with the Standards on Auditing (SAs) issued by Institute of Chartered Accountants

Financial Statements
of India (the “ICAI”). Our responsibilities under those Standards are further described in the Auditor’s Responsibilities
for the Audit of the Consolidated Financial Statements section of our report. We are independent of the Group Bank in
accordance with the Code of Ethics issued by the ICAI together with ethical requirements that are relevant to our audit of
the financial statements, and we have fulfilled our other ethical responsibilities in accordance with these requirements
and the Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
basis for our opinion.

Emphasis of Matter
3. We draw your attention to Note No. 8 (c) (ii) (a) of schedule 18 – Notes to Accounts to the standalone financial
statements regarding unamortised part of additional liability on account of revision in family pension carried forward
from last year amounting to ₹ 1,521.62 crores, has been fully charged to profit and loss account during the year ended
March 31, 2023. There is no unamortised expenditure in the Balance Sheet on account of additional family pension.

Our opinion is not modified in respect of this matter.

 Integrated Annual Report
302 2022-23

Key Audit Matters

4. Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the
consolidated financial statements of the current period. These matters were addressed in the context of our audit
of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a
separate opinion on these matters. We have determined the matters prescribed below to be the key audit matters to be
communicated in our report.

Sr. Key Audit Matter How it was dealt with in our report
1 Income Recognition, Asset Classification (IRAC) and provisioning on Loans & Advances and Investments as
per the regulatory requirements
Loans & Advances and Investments are Our audit was focused on income recognition, asset classification
the largest class of assets forming 85.98% and provisioning pertaining to advances due to the materiality of
of the total assets as on March 31, 2023. the balances and associated impairment provisions.
Classification, income recognition and
loss provisioning on the same are based Our audit procedures included the assessment of controls over the
on objective parameters as prescribed by approval, disbursements and monitoring of loans, and reviewing
the regulations (Reserve Bank of India’s the logic and assumptions used in the CBS and other related IT
prudential norms and other guidelines). systems for compliance of the IRAC and provisioning norms and
The management of the Bank relies heavily its operating effectiveness.
on its IT systems (including Core Banking
These included evaluation and understanding of following:
Solution), exercise significant estimates
and judgement, manual interventions, and • Bank’s internal control system in adhering to the Relevant RBI
uses services of experts (like independent guidelines regarding income recognition, asset classification
valuers, Lawyers, legal experts and and provisioning pertaining to advances/investments;
other professional) to determine asset
• System controls and manual controls over the timely
classification, income recognition and
recognition of non-performing assets (NPA/NPI);
provisioning for losses.
• Operational existence and effectiveness of controls over
The Bank has system based identification provisioning calculation models from the IT systems;
of non-performing assets in accordance
• Overall Controls on the loan approval, disbursement and
with IRAC Norms
monitoring process in case of advances and controls over the
purchase, sale and hold decisions making system in case of
investments
• We tested sample of loans/investments (in cases of branches
visited by us) to assess whether they had been identified as
non performing on a timely manner, income recognized and
provisioning made as per IRAC norms.
• We have also reviewed the reliability, effectiveness and
accuracy of manual interventions, wherever it has come to
our notice, on test check basis.
• We have relied on the reports/returns and work done by other
Statutory Branch Auditors (SBA) in cases of branches not
visited by us to get an overall comfort with respect to overall
compliance in accordance with SA 600 - Using the Work of
Another Auditor.
Integrated Annual Report
2022-23 303

Sr. Key Audit Matter How it was dealt with in our report
• We have reviewed the work done by other experts like
Independent valuers, Lawyers, Legal Experts and other such
professionals who have rendered services to the Bank, in
accordance with SA 620 Using the Work of an Auditor’s
Expert.
• Further we have also reviewed the Bank’s system of monitoring

Strategy, Model & Capitals

potentially weak and sensitive accounts which show a sign of
stress.
• We have also reviewed the reports and observations of the
Bank’s internal audit/inspection reports and observations of
the concurrent auditors for the same.
• Verification of valuation, classification, provisioning and
income recognition of investments by carrying out substantive
test including arithmetic accuracy, data accuracy and control
over the financial reporting system.
We have test checked and assessed the efficacy of the system
based identification of NPA
2 Information Technology (IT) and controls impacting financial reporting

Notice
In the normal course of its business, the Our audit procedures included verifying, testing and reviewing
Bank’s financial accounting and reporting the design and operating effectiveness of the IT system by
systems are highly dependent on the verifying the reports/returns and other financial and non-financial
effective working of the Core Banking information generated from the system on a test check basis.
Solution (CBS) and other IT systems linked
to the CBS or working independently. Our audit procedures included:
Extensive volume, variety and complexity
• Ensuring that deficiencies noticed in our verification on test
of transactions are processed daily and
check basis were informed to the management for corrective
there is a risk that automated accounting

Statutory Reports
action;
procedures and related internal controls
may not be accurately designed and • Carrying out independent alternative audit procedures like
operating effectively. Particular areas of substantive testing in areas where deficiencies were noticed;
focus relate to the logic that is fed into the • Analytical procedures like ratio analysis, trend analysis,
system, sanctity and reliability of the data, reasonable tests, comparative analysis;
access management and segregation of
• Reliance on the work performed by the statutory branch
duties. These underlying principles are
auditors and the rectification entries (MOCs) passed based
important because they ensure that changes
on branch audits;
to applications and data are appropriate,
authorized, cleansed and monitored, so • Reliance on external vendor inspection reports wherever

Financial Statements
that the system generates accurate and made available.
reliable reports/ returns and other financial • Reviewed the IS Audit Reports and discussed with IT
and non-financial information that is used Department on compliance with key IT controls.
for the preparation and presentation of the
financial statements.

We have relied on the consistent and

accurate functioning of CBS and other IT
systems for the following:

• Asset Classification and Income

recognition as per the Reserve Bank of
India guidelines;
 Integrated Annual Report
304 2022-23

Sr. Key Audit Matter How it was dealt with in our report
• Provisioning on the advance portfolio;
• Identification of advances and liability
items and its maturity pattern in various
brackets;
• Reconciliation and ageing of various
suspense and sundry accounts,
impersonal accounts, inter-branch
balances and other such accounts;
• Recording Investment transactions
• Interest expense on deposits and other
liabilities;
3 Recognition and measurement of Deferred tax
The Bank has recognised a net deferred tax Our audit procedures included the risk assessment to gain an
asset of ₹ 8,65,97,447 (in ‘000) as on March understanding of the applicable tax laws and relevant regulations
31, 2023. Besides objective estimation, applicable to the Bank. Based on our understanding, we performed
recognition and measurement of deferred both tests of related internal key controls and substantive audit
tax asset is based on the judgment procedures with the assistance of tax specialists. We performed
and numerous estimates regarding the the following audit procedures as part of our controls testing
availability and visibility of profits in the including, but not limited to:
future. The recent decrease in the amount
of deferred tax assets presumes availability • Evaluation of the policies used for recognition and
and forecasting of profits over an extended measurement of deferred tax assets in accordance with AS
period of time thus decreasing uncertainty 22 Accounting for Taxes on Income;
and the inherent risk of inappropriate • Assessed the method, assumptions and other parameters
recognition of the said asset. used with reference to uniformity, management
representations, consistency and continuity like budget and
midterm projections prepared by the management including
earning growth and applicable tax rates and tested the
arithmetical accuracy
• Assessed the probability of the availability and visibility of
profits against which the bank will be able to use this deferred
tax asset in the future.
Information Other than the Consolidated Financial Statements and Auditors’ Report thereon
5. The Bank’s Board of Directors is responsible for the other information. The other information comprises the Highlights
for the year, Directors’ Report including annexures to Directors’ Report, key financial ratios, Business responsibility Report
and Corporate Governance report in the Annual Report, but does not include the consolidated financial statements and
our auditor’s report thereon, which is expected to be made available to us after the date of this Auditors’ Report.
Our opinion on the consolidated financial statements does not cover the Other Information and Pillar 3 disclosures
under the Basel III Disclosure and we do not express any form of assurance conclusion thereon.
In connection with our audit of the Consolidated financial statements, our responsibility is to read the other information
and, in doing so, consider whether the other information is materially inconsistent with the Consolidated financial
statements or our knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed on the Other Information that we obtained prior to the date of this Auditors’
Report, we conclude that there is a material misstatement of this Other Information, we are required to report that fact.
We have nothing to report in this regard.
When we read the other information, if we conclude that there is a material misstatement therein, we are required to
communicate the matter to those charged with governance.
Integrated Annual Report
2022-23 305

Responsibilities of Management and Those Charged with Auditor’s Responsibilities for the Audit of the Consolidated
Governance for the Consolidated Financial Statements Financial Statements
6. The Bank’s Board of Directors are responsible for 7. Our objectives are to obtain reasonable assurance
preparation and presentation of these consolidated about whether the consolidated financial statements as
Financial Results that give a true and fair view of the a whole are free from material misstatement, whether
consolidated financial position, financial performance due to fraud or error, and to issue an auditor’s report that
and consolidated cash flows and other financial includes our opinion. Reasonable assurance is a high
information of the Group including its associate level of assurance, but is not a guarantee that an audit

Strategy, Model & Capitals

and jointly controlled entity in accordance with the conducted in accordance with SAs will always detect
Accounting Standard 21- “Consolidated Financial a material misstatement when it exists. Misstatements
Statements”, Accounting Standards 23- “Accounting can arise from fraud or error and are considered material
for Investments in Consolidated Financial Statements” if, individually or in the aggregate, they could reasonably
and Accounting Standards 27 – Financial Reporting be expected to influence the economic decisions of
of Interest in Joint Venture” issued by the Institute of users taken on the basis of these consolidated financial
Chartered Accountants of India, the relevant provisions statements.
of the Banking Regulation Act, 1949, the circulars, As part of an audit in accordance with SAs, we exercise
guidelines and directions issued by the Reserve Bank professional judgment and maintain professional
of India (RBI) from time to time (“RBI Guidelines”) and scepticism throughout the audit. We also:
other accounting principles generally accepted in India.
• Identify and assess the risks of material
The respective Board of Directors of the entities misstatement of the financial statements, whether
included in the Group and of its associate and jointly due to fraud or error, design and perform audit

Notice
controlled entity are responsible for maintenance procedures responsive to those risks, and obtain
of adequate accounting records in accordance with audit evidence that is sufficient and appropriate
the provisions of the Act/ Banking Regulations Act, to provide a basis for our opinion. The risk of not
1949 for safeguarding the assets of the Group and detecting a material misstatement resulting from
preventing and detecting frauds and other irregularities; fraud is higher than for one resulting from error,
selection and application of appropriate accounting as fraud may involve collusion, forgery, intentional
policies; making judgements and estimates that are omissions, misrepresentations, or the override of
reasonable and prudent; and design, implementation internal control.
and maintenance of adequate internal financial controls

Statutory Reports
that were operating effectively for ensuring accuracy • Obtain an understanding of internal control relevant
and completeness of the accounting records, relevant to the audit in order to design audit procedures that
to the preparation and presentation of the Consolidated are appropriate in the circumstances.
Financial Statements that give a true and fair view and
are free from material misstatement, whether due to • Evaluate the appropriateness of accounting policies
fraud and error. used and the reasonableness of accounting
estimates and related disclosures made by
In preparing the consolidated Financial statements, the
management.
respective Board of Directors of the entities included
in the Group and of its associate and jointly controlled • Conclude on the appropriateness of management’s
entity are responsible for assessing the ability of use of the going concern basis of accounting and,
Financial Statements
the group and of its associate and jointly controlled based on the audit evidence obtained, whether
entity to continue as a going concern, disclosing, as a material uncertainty exists related to events or
applicable, matters related to going concern and using conditions that may cast significant doubt on the
the going concern basis of accounting unless the Board bank’s ability to continue as a going concern. If we
of Directors either intends to liquidate the Group or to conclude that a material uncertainty exists, we are
cease operations, or has no realistic alternative but to required to draw attention in our auditor’s report to
do so. the related disclosures in the financial statements
The respective Board of Directors of the entities or, if such disclosures are inadequate, to modify
included in the Group and of its associate and jointly our opinion. Our conclusions are based on the audit
controlled entity are responsible for overseeing the evidence obtained up to the date of our auditor’s
financial reporting process of the Group and of its report. However, future events or conditions may
associate and jointly controlled entity. cause the bank to cease to continue as a going
concern.
 Integrated Annual Report
306 2022-23

• Evaluate the overall presentation, structure and solely on the reports of the other auditors.
content of the financial statements, including the The consolidated financial statements also include
disclosures, and whether the financial statements the unaudited Financial Results of 2 subsidiaries and 2
represent the underlying transactions and events in jointly controlled entities whose Financial Statements/
a manner that achieves fair presentation. Financial Results/ Financial information reflect Group’s
We communicate with those charged with governance share of total assets of ₹ 5,20,44,943 (in thousands)
regarding, among other matters, the planned scope as at 31st March 2023, Group’s share of total revenue
and timing of the audit and significant audit findings, of ₹ 1,77,52,017 (in thousands) and Group’s share of
including any significant deficiencies in internal control total net profit after tax of ₹ 4,04,522 (in thousands)
that we identify during our audit. for the year ended 31st March 2023, as considered in
the consolidated Financial Results. These unaudited
We also provide those charged with governance with Financial Statements/Financial Results/ financial
a statement that we have complied with relevant information has been furnished to us duly certified
ethical requirements regarding independence, and to by the Bank’s management and our opinion on the
communicate with them all relationships and other consolidated Financial Results, in so far as it relates
matters that may reasonably be thought to bear on to the amounts and disclosures included in respect of
our independence, and where applicable, related these subsidiaries and jointly controlled entities are
safeguards. based solely on such reviewed/unaudited Financial
From the matters communicated with those charged Statements/Financial Results/Financial information.
with governance, we determine those matters that In our opinion and according to the information and
were of most significance in the audit of the financial explanations given to us by Bank’s management, these
statements of the current period and are therefore Financial Statements/Financial Results / Financial
the key audit matters. We describe these matters in information are not material to the Group.
our auditor’s report unless law or regulation precludes The entities of the Group whose financial statements
public disclosure about the matter or when, in extremely are included in the Consolidated Financial Statements
rare circumstances, we determine that a matter should are listed in Schedule 18 of Notes to Accounts which
not be communicated in our report because the forms part of the Consolidated Financial Statements of
adverse consequences of doing so would reasonably the Group.
be expected to outweigh the public interest benefits of
such communication. Our opinion on the consolidated financial statements
is not modified in respect of the above matters with
Other Matters respect to our reliance on the work done and the reports
8. We did not audit the financial statements of 3 of the other auditors.
subsidiaries and 1 Jointly controlled entity included in
the consolidated financial statements, whose financial Report on Other Legal and Regulatory Requirements
statements reflect total assets of ₹ 4,47,55,068 (in 9. The Consolidated Balance Sheet and the Profit & Loss
thousand) as at March 31, 2023 and total revenues of Account have been drawn up in accordance with section
₹ 22,11,654 (in thousand) for the year ended on that date 29 of the Banking Regulation Act, 1949.
net Loss after tax amounting to ₹ 4,33,866 (in thousand) 10. Subject to limitation of the audit indicated in paragraph 5
for the year ended on that date, as considered in the and 8 above and as required by the Banking Companies
consolidated financial statements. The Consolidated (Acquisition and Transfer of Undertakings) Act,
Financial Statements also include the Group’s share 1970/1980, based on our audit and on the consideration
of Net Profit after tax amounting to ₹ 8,13,202 (in of report of the other auditors on separate financial
thousand) for the year ended 31st March, 2023 as statements and the other financial information of
considered in the Consolidated Financial Statements, in subsidiaries, associate and jointly controlled entities,
respect of one associate, whose Financial Statements as noted in the ‘other matter’ paragraphs to the extent
/ financial information have not been audited by us. applicable and also subject to the limitations of
These financial statements have been audited by other disclosure required therein and we report that:
auditors whose report have been furnished to us by a) We have obtained all the information and
the Management and our opinion on the consolidated explanations which to the best of our knowledge
financial statements, in so far as it relates to the and belief, were necessary for the purposes of our
amounts and disclosures included in respect of these audit and have found them to be satisfactory;
subsidiaries and jointly controlled entities, are based
Integrated Annual Report
2022-23 307

b) The transactions of Bank, which have come to our notice, have been within the power of Bank; and

c) The returns received from the offices and branches of the bank have been found adequate for the purpose of our
audit.

11. We further report that:

a) in our opinion, proper books of account as required by law have been kept by the Bank so far as it appears from our
examination of those books and proper returns adequate for the purposes of our audit have been received from
branches not visited by us;

Strategy, Model & Capitals

b) The Consolidated Balance Sheet, Consolidated Profit and Loss account and Consolidated Cash flow statement
dealt with by this report are in agreement with the books of account and with the returns received from branches
not visited by us;

c) The reports on the accounts of the branches and offices audited by branch auditors of the Bank under section 29
of the Banking Regulation Act, 1949 have been sent to us and have been properly dealt with by us in preparing this
report;

d) in our opinion, the Consolidated Balance Sheet, Consolidated Profit and Loss account and Consolidated Cash
flow statement comply with the applicable accounting standards, to the extent they are not inconsistent with the
accounting policies prescribed by the RBI.

Notice
For M/s R G N Price & Co. For M/s SARDA & PAREEK LLP For M/s C R Sagdeo & Co.
Chartered Accountants Chartered Accountants Chartered Accountants
FRN 002785S FRN 109262W/W100673 FRN 108959W

CA P. M. Veeramani CA Niranjan Joshi CA Sachin V. Luthra

Partner Partner Partner
Membership No.023933 Membership No.102789 Membership No. 109127
UDIN: 23023933BGVFVC3602 UDIN: 23102789BGWREC1919 UDIN: 23109127BGQVHR54391

Statutory Reports
For M/s P V A R & Associates For M/s Gopal Sharma & Co. For M/s N B S & Co.
Chartered Accountants Chartered Accountants Chartered Accountants
FRN 005223C FRN 002803C FRN 110100W

CA Ruchi Agarwal CA Abhishek Sharma CA Pradeep J. Shetty

Partner Partner Partner
Membership No. 504134 Membership No. 079224 Membership No. 046940
UDIN:23504134BGWTPQ8986 UDIN: 23079224BGTKQP5499 UDIN: 23046940BGPTTT2512

Financial Statements
Place of Signature: Mumbai
Date of Report: 06.05.2023
 Integrated Annual Report
308 2022-23

Consolidated Balance Sheet

As on 31st March, 2023
(` in 000’)
Schedule As on As on
Particulars
Number 31 March, 2023 31 March, 2022
CAPITAL AND LIABILITIES
Capital 1 6,83,47,475 6,83,47,475
Preference Share Capital Issued by Subsidiary Company 1A 10,40,035 10,40,035
Reserves and Surplus 2 71,86,47,629 63,92,23,739
Minority Interest 2A - -
Deposits 3 11,20,32,19,225 10,34,36,77,535
Borrowings 4 42,73,65,947 51,24,51,999
Other Liabilities and Provisions 5 46,49,50,783 37,29,15,316
TOTAL 12,88,35,71,094 11,93,76,56,099
ASSETS
Cash and Balances with Reserve Bank of India 6 50,25,81,072 46,11,58,920
Balances with Banks and Money at Call and Short Notice 7 62,34,07,568 73,64,23,289
Investments 8 3,43,72,69,559 3,51,83,90,437
Advances 9 7,64,27,66,793 6,63,35,56,506
Fixed Assets 10 8,84,79,756 7,20,83,095
Other Assets 11 58,90,66,347 51,60,43,852
Goodwill on Consolidation - -
TOTAL 12,88,35,71,094 11,93,76,56,099
Contingent Liabilities 12 6,08,09,92,755 6,51,14,68,340
Bills for Collection 43,56,67,177 66,08,94,128
Significant Accounting Policies 17
Notes to Accounts 18
The Schedules referred to above form an integral part of the Consolidated Balance Sheet
(PANKAJ KUMAR) (PRAFULLA KUMAR SAMAL)
DY. GENERAL MANAGER CHIEF FINANCIAL OFFICER
For and on behalf of the Board of Directors
(RAMASUBRAMANIAN S) (NIDHU SAXENA) (NITESH RANJAN)
EXECUTIVE DIRECTOR EXECUTIVE DIRECTOR EXECUTIVE DIRECTOR
(ARUN KUMAR SINGH) (SURAJ SRIVASTAVA)
DIRECTOR DIRECTOR
(LAXMAN S UPPAR) (JAYADEV MADUGULA) (PRITI JAY RAO)
DIRECTOR DIRECTOR DIRECTOR
(A. MANIMEKHALAI)
MANAGING DIRECTOR & CEO
(SRINIVASAN VARADARAJAN)
CHAIRMAN
As per our report of even date attached.

For M/s R G N Price & Co. For M/s SARDA & PAREEK LLP For M/s C R Sagdeo & Co.
Chartered Accountants Chartered Accountants Chartered Accountants
FRN 002785S FRN 109262W/W100673 FRN 108959W

CA P. M. Veeramani CA Niranjan Joshi CA Sachin V. Luthra

Partner Partner Partner
Membership No.023933 Membership No.102789 Membership No. 109127
UDIN: 23023933BGVFVC3602 UDIN: 23102789BGWREC1919 UDIN: 23109127BGQVHRS4391

For M/s P V A R & Associates For M/s Gopal Sharma & Co. For M/s N B S & Co.
Chartered Accountants Chartered Accountants Chartered Accountants
FRN 005223C FRN 002803C FRN 110100W

CA Ruchi Agarwal CA Abhishek Sharma CA Pradeep J. Shetty

Partner Partner Partner
Membership No. 504134 Membership No. 079224 Membership No. 046940
UDIN:23504134BGWTPQ8986 UDIN: 23079224BGTKQP5499 UDIN: 23046940BGPTTT2512

Place : MUMBAI
Date : 6th May, 2023
Integrated Annual Report
2022-23 309

Consolidated Profit and Loss Account

For the Year Ended 31st March, 2023
(` in 000’)
Schedule For the Year Ended For the Year Ended
Particulars
Number 31 March, 2023 31 March, 2022
I. INCOME
Interest Earned 13 81,16,31,823 68,22,96,573
Other Income 14 15,91,53,525 13,52,44,131
TOTAL 97,07,85,348 81,75,40,704

Strategy, Model & Capitals

II. EXPENDITURE
Interest Expended 15 48,03,28,447 40,17,84,651
Operating Expenses 16 23,48,73,032 19,70,26,117
Provision And Contingencies 17,12,80,436 16,66,44,918
TOTAL 88,64,81,915 76,54,55,686
iii. Consolidated Net Profit/(Loss) before Minority Interest and Share of 8,43,03,433 5,20,85,018
Earnings in Associate
Add:-Share of profit in Associate 8,13,202 5,68,187
Consolidated Net Profit/(Loss) for the year before deducting Minority 8,51,16,635 5,26,53,205
Interest
(Less):-Minority Interest - -
Consolidated Net Profit/(Net Loss) for the year attributable to the group 8,51,16,600 5,26,53,205
Transfer from Investment Fluctuation Reserve 58,32,008 00,00,000
Add : Profit/(Loss) Brought Forward 35 35
Amount Available for Appropriation 9,09,48,643 5,26,53,240
IV. Appropriation
Transfer To Statutory Reserve 2,10,83,194 1,31,93,989

Notice
Transfer To Capital Reserve 9,45,461 1,22,12,675
Transfer To Investment fluctuation Risk Reserve - 65,68,682
Transer To Revenue And Other Reserves 3,48,14,630 24,71,838
Transfer To Special Reserve [Sec36(I)(viii)]of the Income Tax Act,1961] 60,00,000 52,20,000
Transfer to Investment Reserve Account 17,69,006 -
Proposed Dividend 2,05,04,309 1,29,86,021
Balance in Profit and Loss Account 58,32,043 35
TOTAL 9,09,48,643 5,26,53,240
Earnings per share (Basic and Diluted in `) of FV of `10/- each 18(13) 12.45 7.77
Significant Accounting Policies 17
Notes To Accounts 18
The Schedules referred to above form an integral part of the Consolidated Profit & Loss A/c

Statutory Reports
(PANKAJ KUMAR) (PRAFULLA KUMAR SAMAL)
DY. GENERAL MANAGER CHIEF FINANCIAL OFFICER
For and on behalf of the Board of Directors
(RAMASUBRAMANIAN S) (NIDHU SAXENA) (NITESH RANJAN)
EXECUTIVE DIRECTOR EXECUTIVE DIRECTOR EXECUTIVE DIRECTOR
(ARUN KUMAR SINGH) (SURAJ SRIVASTAVA)
DIRECTOR DIRECTOR
(LAXMAN S UPPAR) (JAYADEV MADUGULA) (PRITI JAY RAO)
DIRECTOR DIRECTOR DIRECTOR
(A. MANIMEKHALAI)
MANAGING DIRECTOR & CEO
(SRINIVASAN VARADARAJAN)
CHAIRMAN
As per our report of even date attached.

For M/s R G N Price & Co. For M/s SARDA & PAREEK LLP For M/s C R Sagdeo & Co. Financial Statements
Chartered Accountants Chartered Accountants Chartered Accountants
FRN 002785S FRN 109262W/W100673 FRN 108959W

CA P. M. Veeramani CA Niranjan Joshi CA Sachin V. Luthra

Partner Partner Partner
Membership No.023933 Membership No.102789 Membership No. 109127
UDIN: 23023933BGVFVC3602 UDIN: 23102789BGWREC1919 UDIN: 23109127BGQVHRS4391

For M/s P V A R & Associates For M/s Gopal Sharma & Co. For M/s N B S & Co.
Chartered Accountants Chartered Accountants Chartered Accountants
FRN 005223C FRN 002803C FRN 110100W

CA Ruchi Agarwal CA Abhishek Sharma CA Pradeep J. Shetty

Partner Partner Partner
Membership No. 504134 Membership No. 079224 Membership No. 046940
UDIN:23504134BGWTPQ8986 UDIN: 23079224BGTKQP5499 UDIN: 23046940BGPTTT2512

Place : MUMBAI
Date : 6th May, 2023
 Integrated Annual Report
310 2022-23

Schedules forming part of the Consolidated Balance Sheet

As on 31st March, 2023
(` in 000’)
As on As on
Particulars
31 March, 2023 31 March, 2022
SCHEDULE 1 - CAPITAL :
I. Authorised :
10,00,00,00,000 Equity Shares of `10 each 10,00,00,000 10,00,00,000

II. Issued, Subscribed & Paid up :

i. 570,66,60,850 Equity Shares of `10 5,70,66,609 5,70,66,609
each, held by Central Government

ii. 11280866110 Equity Shares of `10 each, held by Public 1,12,80,866 1,12,80,866
6,83,47,475 6,83,47,475

SCHEDULE 1A - PREFERENCE SHARE CAPITAL ISSUED BY SUBSIDIARY

COMPANY :
10,40,03,544 Participatory Non-Redemable Compulsorily convertible 10,40,035 10,40,035
Preference Shares of ` 10 Each (Issued by Union Asset Management
Company Private Limited, a subsidiary company ) to Dai Ichi Life
Holdings Inc on May 17, 2018 for a tenure of 20 years)
TOTAL 10,40,035 10,40,035

(` in 000’)
Particulars As on 31 March, 2023 As on 31 March, 2022
SCHEDULE 2 - RESERVES & SURPLUS :
I. Statutory Reserve :
As per last Balance Sheet 14,68,21,655 13,36,27,665
Addition during the year 2,10,83,194 16,79,04,849 1,31,93,989 14,68,21,655
II. Capital Reserve :
A) Capital Reserve
As per last Balance Sheet 5,89,33,239 4,67,20,564
Addition during the year 9,45,461 1,22,12,675
Deductions during the year - -
5,98,78,700 5,89,33,239
B) Revaluation Reserve :
As per last Balance Sheet 4,75,70,740 4,89,84,778
Addition during the year 1,51,92,863 79,201
Deduction during the year 14,39,378 14,93,238
6,13,24,225 4,75,70,741
C) Amalgamation Reserves
As per last Balance Sheet 1,30,95,979 1,30,95,979
Addition during the year - -
Deduction during the year - -
1,30,95,979 13,42,98,904 1,30,95,979 11,95,99,958
III. Capital Reserve on Consolidation
As per last Balance Sheet 4,21,351 6,63,498
Addition during the year - -
Deduction during the year 3,01,200 1,20,151 2,42,147 4,21,351
Integrated Annual Report
2022-23 311

(` in 000’)
Particulars As on 31 March, 2023 As on 31 March, 2022
IV. Share Premium :

Strategy, Model & Capitals

As per last Balance Sheet 18,39,26,860 17,37,85,077
Addition during the year 3,01,198 1,01,92,652
Deduction during the year - 18,42,28,058 50,870 18,39,26,860
V. Revenue and other Reserves :
i) Revenue Reserves :
As per last Balance Sheet 10,74,30,020 9,53,58,032
Addition during the year 3,75,80,223 1,36,44,810
Deduction during the year 25,786 15,72,823
14,49,84,457 10,74,30,020
Less:- Minority Interest - -
14,49,84,457 10,74,30,020
ii) Special Reserve Sec 36(1)(viii)
As per last Balance Sheet 6,02,98,789 5,50,78,789
Addition during the year 60,00,000 52,20,000

Notice
6,62,98,789 6,02,98,789

iii) Special Reserve profit on Fx Swap

As per last Balance Sheet 58,485 58,485
Addition during the year 843 -
Deduction during the year - -
59,328 58,485

iv) Investment fluctuation reserve

Statutory Reports
As per last Balance Sheet 1,93,61,583 1,27,92,901
Addition during the year - 65,68,682
Deduction during the year 58,32,008 -
1,35,29,575 1,93,61,583

v) Foreign Currency Translation Reserve

As per last Balance Sheet 12,73,628 20,15,886
Addition during the year 8,11,962 2,95,338
Deduction during the year 24,94,495 10,37,597
(4,08,905) 12,73,628

Financial Statements
vi) Debenture Redemption reserve
As per last Balance Sheet 31,375 -
Addition during the year - 31,375
Deduction during the year - -
31,375 31,375

vii) Investment Reserve Account

As per last Balance Sheet - -
Addition during the year 17,69,006 -
Deduction during the year - -
17,69,006 22,62,63,624 - 18,84,53,880
VI. Balance in Profit and Loss Account
Balance in Profit and Loss Account 58,32,043 35
TOTAL 71,86,47,629 63,92,23,739
 Integrated Annual Report
312 2022-23

(` in 000’)
Particulars As on 31 March, 2023 As on 31 March, 2022
SCHEDULE 2 A Minority Interest
Opening Balance - -
Add/(Less):- Increase/(Decrease) during the year - -
Total Minority Interest

(` in 000’)
Particulars As on 31 March, 2023 As on 31 March, 2022
SCHEDULE 3 - DEPOSITS :
I. Demand Deposits
i) From Banks 1,75,66,930 81,32,959
ii) From Others 72,24,22,466 73,99,89,396 71,90,31,754 72,71,64,713

II. Savings Bank Deposits 3,20,10,49,443 3,04,57,69,582

III. Term Deposits

i) From Banks 17,64,32,725 2,27,87,325
ii) From Others 7,08,57,47,660 7,26,21,80,385 6,54,79,55,915 6,57,07,43,240
TOTAL 11,20,32,19,225 10,34,36,77,535
Deposits of branches in India 11,05,94,29,728 10,31,96,69,265
Deposits of branches outside India 14,37,89,497 2,40,08,270
TOTAL 11,20,32,19,225 10,34,36,77,535

(` in 000’)
Particulars As on 31 March, 2023 As on 31 March, 2022
SCHEDULE 4 - BORROWINGS :
A. Borrowings in India
i. Reserve Bank of India 13,38,20,000 14,20,90,000
ii. Other Banks 75,821 1,98,28,213
iii. Other Institutions and Agencies 2,34,63,987 3,02,20,231
iv. Perpetual Bonds 9,68,80,000 8,70,50,000
v. Subordinated Bonds 9,95,00,000 10,05,00,000
vi. 7 years infra bonds - -
35,37,39,808 37,96,88,444
B. Borrowings Outside India 7,36,26,139 13,27,63,555
TOTAL 42,73,65,947 51,24,51,999
Secured Borrowings included in A & B above 13,90,42,858 14,70,29,470

(` in 000’)
As on As on
Particulars
31 March, 2023 31 March, 2022
SCHEDULE 5 - OTHER LIABILITIES AND PROVISIONS ::
I. Bills Payable 2,64,97,502 2,68,90,202
II. Interest Accrued 6,03,43,341 4,54,94,112
III. Others (including provisions)* 37,81,09,940 30,05,31,002
TOTAL 46,49,50,783 37,29,15,316
* Includes provison for Standard Assets ` 5,59,63,289 (Previous Year ` 6,57,86,258)
Integrated Annual Report
2022-23 313

(` in 000’)
As on As on
Particulars
31 March, 2023 31 March, 2022
SCHEDULE 6 - CASH AND BALANCES WITH RESERVE BANK OF INDIA :
I. Cash in Hand 2,84,16,340 3,78,48,706
(including foreign currency notes and Gold)
II. Balances with Reserve Bank of India
(a) in Current Account 47,41,54,986 42,33,09,768

Strategy, Model & Capitals

(b) in other Account 9,747 446
TOTAL 50,25,81,072 46,11,58,920

(` in 000’)
As on As on
Particulars
31 March, 2023 31 March, 2022
SCHEDULE 7 - BALANCES WITH BANKS AND MONEY AT CALL AND
SHORT NOTICE :
I) In India
i) Balances with Banks
a) In Current Accounts 61,55,270 24,07,403

Notice
b) In Other Deposit Accounts 5,85,95,898 6,15,83,178
ii) Money at Call & Short notice
a) With Banks 5,00,000 -
b) With Other Institutions 31,23,03,614 55,41,14,877
37,75,54,782 61,81,05,458
II. Outside India
i) In Current Accounts 54,81,900 33,72,152
ii) In other Deposit Accounts 23,88,70,885 11,36,93,769

Statutory Reports
iii) Money at call & short notice 15,00,001 12,51,910
24,58,52,785 11,83,17,831
TOTAL 62,34,07,568 73,64,23,289
SCHEDULE 8 - INVESTMENTS :
I. Investments in India
i) Government Securities 2,62,25,87,764 2,65,82,89,693
ii) Other Approved Securities 91,11,365 58,64,924
iii) Shares 2,45,33,686 2,62,42,463

Financial Statements
iv) Debentures and Bonds 64,33,93,358 70,34,90,650
v) Subsidiaries and Joint Ventures/Associate 35,02,148 26,88,946
vi) 
Others ( Commercial Paper,Mutual Funds, Venture 11,10,88,502 10,05,44,011
Capital,Security Receipt, Etc.)
Total 3,41,42,16,823 3,49,71,20,687
II. Investments outside India
i) Govt Securities (including Local Authorities) 1,86,90,375 1,85,57,542
ii) Shares 3,35,490 6,810
iii) Other Investments (Bonds) 40,26,870 27,05,398
iv) Subsidiaries and Joint Ventures 0 0
Total 2,30,52,736 2,12,69,750
TOTAL 3,43,72,69,559 3,51,83,90,437
 Integrated Annual Report
314 2022-23

(` in 000’)
As on As on
Particulars
31 March, 2023 31 March, 2022
III. Investments in India
Gross Value 3,49,25,11,153 3,55,86,12,295
Less: Provision for Depreciation 7,82,94,330 6,14,91,607
Net Value of Investment in India 3,41,42,16,823 3,49,71,20,688
IV. Investments outside India
Gross Value 2,33,14,075 2,15,85,972
Less: Provision for Depreciation 2,61,339 3,16,223
Net Value of Investment outside India 2,30,52,736 2,12,69,749
TOTAL 3,43,72,69,559 3,51,83,90,437

(` in 000’)
As on As on
Particulars
31 March, 2023 31 March, 2022
SCHEDULE 9 - ADVANCES (Net)
I i) Bills Purchased and Discounted 3,29,74,692 3,87,31,665
ii) Cash Credits, Overdrafts and Loans Repayable on Demand 3,48,61,71,808 2,87,95,84,813
iii) Term Loans 4,12,36,20,293 3,71,52,40,028
TOTAL 7,64,27,66,793 6,63,35,56,506
II i) Secured by Tangible Assets
(includes Advance against Book Debts) 6,25,80,98,735 5,36,44,78,377
ii) Covered by Bank/Government Guarantees 12,26,93,689 13,07,52,505
iii) Unsecured 1,26,19,74,369 1,13,83,25,624
TOTAL 7,64,27,66,793 6,63,35,56,506
III Sectorial Classification of Advances
A. Advances in India
i) Priority Sector 2,85,85,94,969 2,59,52,39,457
ii) Public Sector 81,73,80,496 72,72,96,155
iii) Banks 6,33,569 2,22,975
iv) Others 3,71,92,11,698 3,13,83,22,359
TOTAL 7,39,58,20,732 6,46,10,80,946
B. Advances Outside India
i) Due From Banks 5,39,13,567 5,45,65,135
ii) Due from Others
a) Bills Purchased and Discounted 4,08,197 12,32,802
b) Syndicated Loans - 5,47,141
c) Others 19,26,24,296 11,61,30,482
24,69,46,060 17,24,75,560
TOTAL 7,64,27,66,793 6,63,35,56,506
Integrated Annual Report
2022-23 315

(` in 000’)
Particulars As on 31 March, 2023 As on 31 March, 2022
SCHEDULE 10 - FIXED ASSETS :
A. TANGIBLE ASSETS
I. Premises
At cost/valuation as per last balance 8,09,82,724 8,16,49,772
sheet

Strategy, Model & Capitals

Additions during the year 2,16,26,582 6,12,275
Deductions during the year 67,17,063 12,79,323
9,58,92,243 8,09,82,724
Less: Depreciation till Date 2,76,06,610 6,82,85,633 2,64,08,228 5,45,74,496
II. Capital Work-in-Progress
At cost as per last balance sheet 3,70,133 6,30,768
Additions during the year 3,25,262 1,87,638
Deductions during the year 4,73,766 2,21,629 4,48,273 3,70,133
III. Land
At cost as per last balance sheet 24,98,636 12,45,683
Additions during the year 12,33,904 13,08,678

Notice
Deductions during the year 97,572 55,725
36,34,968 24,98,636
Less: Depreciation till Date 7,02,457 29,32,511 4,52,022 20,46,614
IV. Other Fixed Assets
(including Furniture and Fixtures)
a) Assets given on lease
At cost as per last balance sheet 2,68,478 2,68,478
Addition during the year 45,920 -

Statutory Reports
Deductions during the year - -
3,14,398 2,68,478
Less: Depreciation till Date 3,12,863 1,536 2,68,478 -
b) Others
At cost/valuation as per last balance 6,90,59,835 6,49,59,025
sheet
Additions during the year 70,01,866 49,20,419
Deductions during the year 12,54,203 8,19,609
7,48,07,497 6,90,59,835

Financial Statements
Less: Depreciation till Date 5,96,87,939 1,51,19,558 5,63,82,534 1,26,77,301
B. INTANGIBLE ASSETS
(i) Computer Software
At cost as per last balance sheet 1,23,74,205 1,14,93,797
Additions during the year 9,41,715 9,10,278
Deductions during the year 11,51,692 29,870
1,21,64,227 1,23,74,205
Amortisation till Date 1,02,45,338 19,18,889 99,59,654 24,14,551
TOTAL 8,84,79,756 7,20,83,095
 Integrated Annual Report
316 2022-23

(` in 000’)
As on As on
Particulars
31 March, 2023 31 March, 2022
SCHEDULE 11 - OTHER ASSETS :
I. Inter-Office Adjustments (net) 2,20,20,700 1,79,97,046
II. Interest Accrued 9,19,16,723 7,77,68,178
III. Tax paid/Tax deducted at source (Net of Provisions) 6,75,66,225 5,41,13,751
IV. Stationery and Stamps 62,780 63,349
V. Non-Banking Assets acquired in satisfaction of claims 1,334 1,334
VI. Others 27,57,45,972 21,34,52,492
VII. Deferred Tax Assets (Net) 8,66,27,845 12,29,53,434
VIII. MAT Credit 4,51,24,768 2,96,94,268
TOTAL 58,90,66,347 51,60,43,852
SCHEDULE 12 - CONTINGENT LIABILITIES :
I. Claims against the Bank not acknowledged as debts 3,02,43,174 3,32,70,455
II. Liability for partly paid Investments - -
III. Liability on account of outstanding forward exchange contracts 4,13,37,63,836 4,37,12,08,481
IV. Guarantees given on behalf of Constituents
i) In India 66,40,64,012 65,35,08,697
ii) Outside India 1,42,33,661 1,65,87,098
V. Acceptances, Endorsements and Other Obligations 99,64,20,847 1,26,99,57,903
VI. Other items of Contingent Liability - -
VII. Disputed Tax demands under Appeals 21,02,78,944 13,81,64,819
VIII. Amount transfered to DEAF Scheme 2014 3,19,88,282 2,87,70,887
TOTAL 6,08,09,92,755 6,51,14,68,340
Integrated Annual Report
2022-23 317

Schedules forming part of the Consolidated Profit & Loss Account

for the year ended 31st March 2023

(` in 000’)
Year Ended Year Ended
Particulars
31 March, 2023 31 March, 2022
SCHEDULE 13 - INTEREST EARNED:

Strategy, Model & Capitals

I. Interest/Discount on Advances/Bills 56,87,45,745 45,29,33,293
II. Income on Investments 21,63,56,463 20,15,94,684
III. Interest on Balances with RBI & Other Inter Bank Funds 2,13,17,912 2,14,39,537
IV. Others 52,11,704 63,29,059
TOTAL 81,16,31,823 68,22,96,573
SCHEDULE 14 - OTHER INCOME :
I. Commission, Exchange and Brokerage 2,18,70,990 1,71,90,485
II. Profit on Sale of Investments - (Net) 86,24,178 3,52,44,503
III. Profit on revaluation of Investments (Net) 25,73,612 (13,43,760)
IV. Profit/ (Loss) on Fixed Asset - (Net) (14,860) (3,489)
V. Profit on Exchange Transactions - (Net) 81,33,570 60,83,678
VI. a) Lease Finance Income - -

Notice
b) Lease Management Fee - -
c) Overdue Charges - -
d) Interest on Lease Rent Receivables - -
VII. Miscellaneous Income 11,79,66,035 7,80,72,713
TOTAL 15,91,53,525 13,52,44,131
SCHEDULE 15 - INTEREST EXPENDED :
I. Interest on Deposits 44,38,31,965 37,47,18,766

Statutory Reports
II. Interest on Reserve Bank of India/Inter Bank Borrowing 1,85,04,007 1,05,60,975
III. Others 1,79,92,476 1,65,04,910
TOTAL 48,03,28,447 40,17,84,651
SCHEDULE 16 - OPERATING EXPENSES :
I. Payments to and Provisions for Employees 12,52,40,040 10,26,36,661
II. Rent, Taxes and Lighting 1,08,23,277 1,08,29,331
III. Printing and Stationery 11,55,291 9,75,942
IV. Advertisement and Publicity 13,34,511 6,94,846
V. a) Depreciation on Bank's Property other than Leased Assets 74,45,671 74,48,149

Financial Statements
b) Depreciation on Leased Assets - -
VI. Directors' Fees, Allowances and Expenses 61,641 48,608
VII. Auditors' Fees and Expenses (including Branch Auditors) 7,44,948 6,70,847
VIII. Law Charges 17,37,120 15,25,868
IX. Postage, Telegrams, Telephones, etc. 32,23,483 31,25,474
X. Repairs and Maintenance 37,33,263 33,75,669
XI. Insurance 1,37,50,448 1,16,58,849
XII. Amortization of Goodwill, if any - -
XIII. Other Expenditure 6,56,23,339 5,40,35,874
TOTAL 23,48,73,032 19,70,26,117
 Integrated Annual Report
318 2022-23

Significant Accounting Policies (Consolidated) : Schedule 17

1. Basis of Preparation 5 Subsidiary UBI Services Ltd. 100%

The financial statements have been prepared and 6 JV Star Union Dai-Ichi Life 25.10%
presented under the historical cost convention and Insurance Co Ltd.
accrual basis of accounting, unless otherwise stated. 7 JV ASREC (India) Ltd 26.02%
These are prepared following the Going Concern 8 JV India International Bank 25.00%
(Malaysia) BHD
concept, in accordance with requirements prescribed
9 Associate Chaitanya Godavari 35%
under the Third Schedule of the Banking Regulation
Grameena Bank
Act, 1949. The accounting and reporting policies of
the Bank used in the preparation of these financial The consolidated financial statements are prepared
statements conform to Generally Accepted Accounting on the basis of:
Principles in India (Indian GAAP), the guidelines issued 1) Audited Accounts of the parent bank (Union
by Reserve Bank of India (RBI) from time to time and Bank of India)
the Accounting Standards (AS) issued by the Institute
2) Consolidation of Subsidiaries: Line by Line
of Chartered Accountants of India (ICAI) to the extent
aggregation of the Income/Expenditure/
applicable and practices generally prevalent in the
Assets/Liabilities of the subsidiaries with
banking industry in India. In respect of foreign offices,
the respective line item of the parent bank,
statutory provisions and practices prevailing in foreign
after eliminating all intra-group transactions,
countries are complied with.
unrealized profits/loss in terms of AS 21 on
2. Use of Estimates Consolidated Financial Statements issued by
The preparation of financial statements in conformity Institute of Chartered Accountants of India
with GAAP requires the management to make estimates (ICAI).
and assumptions considered in the reported amount of
3) Consolidation of Associates: The Investment
Assets and Liabilities (including Contingent Liabilities)
in Associate is accounted for consolidation
as of the date of the financial statements and the
as per Equity Method in terms of AS 23 on
reported Income and the Expenses during the reporting
Accounting for Investments in Associates in
period. Management believes that the estimates
Consolidated Financial Statement issued by
wherever used in the preparation of the financial
Institute of Chartered Accountants of India
statements are prudent and reasonable. Actual results
(ICAI).
can differ from these estimates. Any revision in the
accounting estimates is recognized prospectively in the 4) Consolidation of Joint Ventures: Line by Line
current and future period. consolidation is done with proportionate share
3. Basis of consolidation in Joint Venture in terms of AS-27 on Financials
Reporting in Interest of Joint Venture issued
a) Bank is having 5 subsidiaries, 3 JVs and 1
by Institute of Chartered Accountants of India
associate. The details are as under:-
(ICAI).
S. Nature Entities Stake
No. b) In case of Domestic Associate/Subsidiaries and
Joint Venture, accounting adjustments arising
1 Subsidiary Union Asset Management 100%
Company Pvt Ltd due to different accounting policies followed by
parent bank and associate/subsidiaries and Joint
2 Subsidiary Union Trustee Co Pvt Ltd 100%
Venture have not been carried out due to practical
3 Subsidiary Union Bank of India (UK) Ltd 100% difficulties on the basis of data provided by
4 Subsidiary Andhra Bank Financial 100% associates/ subsidiaries and Joint Venture as the
Services Ltd amounts are not material.
Integrated Annual Report
2022-23 319

c) The difference between cost to the Group of its vi) Dividend is accounted on an accrual basis
investment in the subsidiaries and the Parent’s where the right to receive the dividend is
portion of the equity of the subsidiaries is established.
recognized in the CFS as Goodwill / Capital Reserve,
as the case may be. vii) Sale of NPAs accounted in terms of extant RBI
guidelines.
d) Minority interest in the net assets of the
consolidated subsidiaries consists of: viii) Interest on Income-tax refunds is accounted
for on receipt of Intimation order from the

Strategy, Model & Capitals

i) The amount of equity attributable to the Income Tax Department.
minority at the date on which investment in a
b) Non-Banking entities
subsidiary is made and
Life Insurance
ii) The minority share of movements in revenue
reserves / loss and equity since the date the i. Premium Income
parent subsidiary relationship came into
existence. Premium (net of GST) is recognized as income
when due. For linked business, premium is
iii) The excess, and any further losses applicable recognized when the associated units are
to the minority, are adjusted against the created. Top up premiums are considered as
majority interest except to the extent that the single premium. Premium on lapsed policies

Notice
minority has a binding obligation to, and is able is recognized as income when such policies
to, make good the losses are reinstated. Commission received on
reinsurance ceded is recognized as income
4. Revenue Recognition
in the period in which reinsurance premium is
a) Banking entities
ceded.
i) Income and Expenditure have been accounted
for on accrual basis unless otherwise stated. ii. Income from linked funds

Statutory Reports
ii) Income on Non-Performing Assets (NPAs) Income from linked funds which includes
is recognized to the extent realized as per premium allocation charges, policy
the prudential norms prescribed by the RBI.
administrative charges, mortality charges, fund
Income accounted for in the preceding year
management charges etc. are recovered from
and remaining unrealized is derecognized in
respect of assets classified as NPAs during the the linked funds in accordance with the terms
year. and conditions of policies issued.

iii) Commission on Letter of Guarantee/Letter of iii. Reinsurance Premium

Credit is accounted on accrual basis.
Cost of reinsurance ceded is accounted

Financial Statements
iv) Exchange and brokerage earned, rent on Safe
for at the time of recognition of premium
Deposit Lockers, income from Aadhaar cards
income in accordance with the treaty or in
Minimum balance charges etc. are accounted
for on realization basis. principle arrangement with the reinsurer. Profit
commission on reinsurance ceded is netted off
v) Income (Other than interest) on investments against premium ceded on reinsurance.
in “Held to Maturity” (HTM) category acquired
at discount to the face value is recognized as iv. Benefits paid (including claims)
follows:
Benefits paid comprise of policy benefits &
a) On interest bearing securities, it is recognized
claim settlement costs, if any. Death, rider
only at the time of sale / redemption.
& surrender claims are accounted for on
b) On Zero- coupon securities, it is accounted for receipt of intimation. Survival benefit claims
over the balance tenor of the securities on a and maturity claims are accounted for when
constant yield basis.
 Integrated Annual Report
320 2022-23

due. Withdrawals & surrenders under linked 5. Investments

policies are accounted for in the respective
i) Classification
schemes when the associated units are
cancelled. Reinsurance recoveries on claims In conformity of the requirements in form A of the
are accounted for in the same period as the Third Schedule to the Banking Regulations Act,
related claims. 1949, Investments are classified as under::

v. Acquisition Costs a) Government Securities

b) Other Approved Securities

Acquisition costs are costs that vary with and
are primarily related to acquisition of insurance c) Shares
contracts and are expensed in the period in
d) Debentures & Bonds
which they are incurred.
e) Investments in Subsidiaries & Joint Ventures,
vi. Liability for life policies and

Actuarial liability for life policies in force and f) Other Investments

for policies in respect of which premium has
The Investment portfolio of the Bank is
been discontinued but a liability exists, is
further classified in accordance with the RBI
determined by the Appointed Actuary using the
guidelines contained in Master Circular DoR.
gross premium method and in case of group
MRG.42/21.04.141 /2021-22 dated August
business, unearned premium reserve method,
25, 2021 (updated March 23,2022, March 31,
in accordance with accepted actuarial practice,
2022, April 08, 2022 and December 08, 2022)
requirements of Insurance Act, 1938, IRDA
into three categories viz.,
regulations and the stipulations of Institute of
Actuaries of India. a) Held to Maturity (HTM)

b) Available for Sale (AFS)

Asset Management
i. Investment management fees are recognized c) Held for Trading (HFT)
net of tax on an accrual basis as a percentage ii) Basis of Valuation
of the average daily net assets of the mutual
As per RBI guidelines, the following principles have
fund schemes (excluding the investments
been adopted for the purpose of valuation:
made by the company in the schemes) such
that it does not exceed the limit prescribed by a) Securities held in “HTM” – at acquisition cost:
the SEBI (Mutual Funds) Regulations, 1996 and The excess of acquisition cost over the face
any further amendments. value is amortized over the remaining period
of maturity and in case of discount; it is not
ii. Investment advisory fees are recognized on
recognized as income.
accrual basis in accordance with the terms of
contract with the customers. b) Investment in Regional Rural Banks is valued at
carrying cost.
iii. Interest income is recognized using the time
proportion method, based on the rates implicit c) Investments in Subsidiaries and Joint Ventures
in the transaction. are valued at carrying cost

iv. Dividend income is recognized when right to d) Diminution other than temporary, if any, in
receive is established. valuation of such investments is provided for.
Integrated Annual Report
2022-23 321

e) Securities held in “AFS” and “HFT” categories are F Mutual Funds(MF) As per stock exchange
valued classification wise and scrip-wise and quotations, if quoted. In
net depreciation, if any, in each classification case of unquoted units, as
is charged to Profit & Loss account while net per latest Repurchase price
appreciation, if any, is ignored. declared by concerned

f) Valuation of other securities is arrived at as MF. In cases where latest

follows: repurchase price is not

Strategy, Model & Capitals

available, as per Net Asset
A Govt. of India As per Quotation put out Value (NAV)
Securities by Financial Benchmarks
(Central Govt. India Pvt Ltd (FBIL) G Treasury Bills / At carrying cost
Securities) Certificate of Deposits
/ Commercial Papers
B State Development On appropriate yield to H Venture Capital Funds At declared NAV or Breakup
Loans, State Govt. maturity basis as per (VCF) NAV as per audited
Securities, Securities FIMMDA Guidelines Balance Sheet which is
guaranteed by Central/ not more than 18 months
State Government, old. If NAV / audited

Notice
PSU Bonds financial statements are
C Equity Shares As per Market rates, if not available for more than
quoted, otherwise at break- 18 months continuously, at
up value, as per latest ₹ 1/- per VCF
audited balance sheet I Security Receipts Valuation of the same
(not more than 18 months will be done as per RBI
old). In absence of both, Guidelines on classification,
at ₹ 1/- per company. The valuation and operation

Statutory Reports
break-up value is computed of Investment portfolio of
excluding revaluation commercial Banks (RBI/
reserve. DOR/2021-22/81 DOR.
D Preference Shares As per Market rates, if MGR.42/21.04.141/2021-
quoted, or on appropriate 22) dated Aug 25, 2021 and
yield to maturity basis not as amended from time to
exceeding redemption time.
value as per FIMMDA
iii) Interbank REPO / Reverse REPO transactions

Financial Statements
guidelines.
are accounted for in accordance with extant RBI
E Debentures/Bonds As per Market rates, if
guidelines.
quoted, otherwise on
appropriate yield to
maturity basis as per
FIMMDA guidelines.
 Integrated Annual Report
322 2022-23

iv) As per the extant RBI guidelines, the shifting ‘Settlement Date’ for accounting of investments
of securities from one category to another is transactions.
accounted for as follows:
xii) Income from the units of Mutual Fund, Venture
a) From AFS / HFT categories to HTM category, Capital & Security Receipt shall be recognized on
at lower of book value or market value as on Cash Basis.
the date of shifting. Depreciation, if any, is fully
6. Derivative Contracts:
provided for.
a) The Interest Rate Swap which hedges interest
b) From HTM category to AFS / HFT
bearing Asset or Liability are accounted for in the
category,
financial statements on accrual basis except the
• If the security is originally placed at swap designated with an Asset or Liability that is
discount in HTM category, at acquisition carried at market value or lower of cost or market
cost/ book value
value. Gains or losses on the termination of swaps
• If the security is originally placed at a are recognized over the shorter of the remaining
premium, at an amortized cost. contractual life of the swap or the remaining life of
the Asset / Liability.
c) From AFS to HFT category and vice versa, at
book value. b) Trading swap transactions are marked to market
with changes recorded in the financial statements.
d) The securities so shifted are revalued (profit if any, is ignored)
immediately and resultant depreciation is fully
provided for. c) In the case of option contracts, guidelines issued
by Foreign Exchange Dealers Association of India
v) The non-performing investments are identified and (FEDAI) from time to time for recognition of income,
provision is made as per the extant RBI guideline. premium and discount are being followed.

vi) Profit / Loss on sale of investments & net d) Arbitrage Income earned on forex swap
depreciation on investment in any category are transactions is accounted in Profit / Loss on
taken to the profit & loss account (net appreciation Exchange Transactions category.
is ignored). However, in case of profit on sale of
investments in “HTM” category, an equivalent 7. Advances
amount (net of taxes and net of transfer to Statutory
i) Advances in India, are classified under four
Reserves) is appropriated to the Capital Reserve
categories, i.e.
account.
(a) Standard,
vii) Commission, brokerage, broken period interest etc.
on securities is debited / credited to Profit & Loss (b) Sub-standard,
account.
(c) Doubtful and
viii) Brokerage and STT paid on purchase and sale of
(d) Loss assets.
Equity is accounted to price of the deal.
Provisions required on such advances are made
ix) The Amortization of premium on HTM Securities is
as per the extant prudential norms issued by the
computed using Straight-line Method.
RBI in terms of Master Circular RBI/2022-2023/15
x) The Bank is following weighted average Price DOR.STR.REC.4/21.04.048/2022-23 dated April
(WAP) for accounting of investment portfolio. 01,2022. In respect of foreign offices, Advances
are classified in accordance with Prudential Norms
xi) As per the extant RBI guidelines, the Bank follows
prescribed by the RBI or local laws of the host
Integrated Annual Report
2022-23 323

country in which advances are made, whichever is ii) Depreciation on Fixed Assets is provided for on
more stringent. the Straight-Line Method at the rates prescribed in
Expenditure Policy of the Bank from time to time.
ii) Advances are stated net of specific loan loss
The applicable rates of depreciation are as under:
provisions, counter cyclical provisioning buffer
and unrecovered interest held in sundry / claims Sr. Useful Life Rate in
Capital Asset
received from Credit Guarantee Trust for Micro No. (Years) percentage
& Small Enterprises (CGTMSE)/Export Credit

Strategy, Model & Capitals

1 Immovable Property- Not
Guarantee Corporation (ECGC) relating to non- Land stipulated;
performing assets. accordingly, NIL
no
depreciation
iii) The general provision on Standard Advances is
2 Building with RCC
held in “Other Liabilities and Provisions” reflected
frame structure (Both
in schedule 5 of the Balance Sheet and is not 60 1.67
Residential & Non-
considered for arriving at both net NPAs and residential)
net advances. Standard Assets provision to be 3 Furniture 10 10.00
made as per IRAC RBI/2022-2023/15 DOR.STR. 4 Fixtures 10 10.00
REC.4/21.04.048/2022-23 dated April 01,2022 and 5 Air-conditioning plants
any subsequent circular issued from time to time. (Package & water/air 10 10.00
cooled ductable)

Notice
iv) Amounts recovered against debts written off are 6 Split & Window Air
5 20.00
recognized as revenue in the year of recovery. conditioners
7 Electrical installation
v) Provision on Suspense accounts entries 5 20.00
and equipments
outstanding for more than six months are made at 8 Solar Power
15 6.67
100% except the claim receivable from Govt./Govt. Equipment
Bodies like Interest Subsidy on crop loan/export 9 Elevators & Lifts 15 6.67
advance, Pension receivable etc. 10 Civil & Flooring work in

Statutory Reports
5 20.00
leased Premises
8. Property, Plant and Equipment 11 Telephone Equipment 5 20.00

i) Premises and Other Fixed Assets are stated at cost, 12 Motorcycles, Scooters
10 10.00
& other mopeds
net of accumulated depreciation and accumulated
13 Motor Cars, Motor
impairment losses, if any. The cost comprises Lorries and Electrically
of purchase price, eligible borrowing costs and operated vehicles
8 12.50
directly attributable costs of bringing the Asset to including battery
powered or fuel cell
its working condition for the intended use less trade
powered vehicles

Financial Statements
discounts and rebates. Subsequent expenditure
14 Mobile Phones 3 33.33
incurred on assets put to use is capitalized only
15 Generators 15 6.67
when it increases the future benefits from such
16 Office Equipment/
assets or their functional capability. Land and 5 20.00
Appliances,
Buildings, if revalued are stated at revalued amount.
17 Computers &
The appreciation on revaluation is credited to computer software
3 33.33
Revaluation Reserve and the depreciation provided forming integral part
thereon is deducted there from and shall be credited of hardware

to Revenue Reserves in terms of revised AS-10 on 18 ATM & allied items 5 20.00
“Property, Plant and Equipment”. 19 UPS & allied items 5 20.00
20 Servers & Networks 6 16.66
 Integrated Annual Report
324 2022-23

10. Counter Cyclical Provisioning Buffer

Sr. Useful Life Rate in
Capital Asset
No. (Years) percentage The Bank has a policy for creation and utilization of
21 End user devices such Counter Cyclical Provisioning Buffer separately for
as desktops, laptops, advances and investments. The quantum of provision
i-pads, tablets, printer 3 33.33
to be created is assessed at the end of each financial
& Scanner, digital
watches etc. year. The counter cyclical provisions are utilized only
for contingencies under extra ordinary circumstances
22 SDV lockers, Strong
Room door, Cash specified in the policy with prior permission of the RBI.
20 5.00
Safe etc. (Along with
Fixtures). 11. Transactions involving Foreign Exchange
23 Items provided to staff Accounting for transactions involving foreign exchange
(Furniture/Electrical 5 20.00
and etc.) is done in accordance with AS 11, (The Effects of
Changes in Foreign Exchange Rates), issued by the ICAI.
iii) Depreciation on premises is provided on composite As stipulated in AS 11, the foreign currency operations
cost, wherever the value of Land and Buildings is of the Bank are classified as under
not separately identifiable.
a) Integral Operations and
iv) Depreciation on Leased assets and Leasehold b) Non Integral Operations.
improvements is recognized on a straight-line
basis using rates determined with reference to the All Overseas Branches, Offshore Banking Units,
primary period of lease. Overseas Subsidiaries are treated as Non-Integral
Operations and domestic operations in foreign
v) Depreciation on fixed assets outside India and fixed exchange and Representative Offices are treated as
assets of subsidiaries / associates is provided as Integral Operations.
per regulatory requirements / or prevailing practices
a) Translation in respect of Integral Operations
of respective country / industry.
i. Income and Expenditure items are recognized
9. Impairment of Assets
at the exchange rates prevailing on the date of
The carrying costs of assets are reviewed at each the transaction.
balance sheet date if there is any indication of
ii. Foreign Currency Monetary and Non-Monetary
impairment based on internal / external factors. An
Assets and Liabilities are translated at the
impairment loss is recognized wherever the carrying
closing spot rates notified by FEDAI at the end
cost of an asset exceeds its recoverable amount. The
of each quarter.
recoverable amount is the greater of the assets net
selling price and value in use. In assessing value in use, iii. Contingent liabilities on account of guarantees,
the estimated future cash flows are discounted to their acceptances, endorsements and other
present value using a pre-tax discount rate that reflects obligations are stated at the exchange rates
current market assessments of the time value of notified by FEDAI at the close of the year
money and risks specific to the asset. After impairment,
depreciation is provided on the revised carrying cost iv. The resulting exchange differences are
of the asset over its remaining useful life. A previously recognized as income or expenses and are
recognized impairment loss is increased or reversed accounted through Profit and Loss Account.
depending on changes in circumstances. However, the
v. Forward exchange contracts are recorded at
carrying value after reversal is not increased beyond the
the exchange rate prevailing on the date of
carrying value that would have prevailed by charging
commitment. Outstanding forward exchange
usual depreciation, if there was no impairment.
contracts are revalued at the exchange rates
Integrated Annual Report
2022-23 325

notified by FEDAI for specified maturities and at contributions retained with the Bank. The
interpolated rates for contracts of ‘in-between’ Bank recognizes such annual contributions in
maturities. The resultant gains or losses are the year to which they relate. Upon receipt of
recognized in the Profit and Loss account. the Permanent Retirement Account Number
(PRAN), the consolidated contribution amounts
b) Translation in respect of Non Integral Operations are transferred to the NPS trust.
i) Assets and Liabilities (including contingent ii. Defined Benefit Plan:

Strategy, Model & Capitals

liabilities) are translated at the closing spot
rates notified by FEDAI at the end of each Gratuity, Pension and Leave Encashment are
quarter defined benefit plans. These are provided
for on the basis of an actuarial valuation
ii) Foreign Exchange Spot and Forwards as per Accounting Standard-15 “Employee
contingent liabilities outstanding as at the Benefit” issued by the Institute of Chartered
balance sheet date are translated at the closing Accountants of India, made at the end of
spot and forward rates respectively notified by each financial year, based on the projected
FEDAI and at interpolated rates for contracts unit credit method. Actuarial gains/losses are
of interim maturities. immediately taken to the Profit & Loss account.
iii) Income and Expense are translated at quarterly 13. Segment Reporting
average rate notified by FEDAI at the end of

Notice
each quarter. The Bank recognizes the Business segment as the
Primary reporting segment and Geographical segment
iv) The resulting exchange differences are not as the Secondary reporting segment, in accordance
recognized as income or expense for the with the RBI guidelines and in the compliances with the
period but accumulated in a separate account Accounting Standard-17 “Segment Reporting” issued
“Foreign Currency Translation Reserve” till the by the Institute of Chartered Accountants of India.
disposal of the net investment. Business segments are classified into
12. Employee Benefits 13.1. Treasury Operations,

Statutory Reports
A. Short Term Employment Benefits: 13.2. Corporate and Wholesale Banking,
The undiscounted amounts of short term employee 13.3. Retail Banking Operations and
benefits (e.g. medical benefits) payable wholly (w/w Digital Banking Segment as and when
within twelve months of rendering the service are applicable)
treated as short term and recognized during the 13.4. Other Banking Operations.
period in which the employee rendered the service.
14. Lease Transactions
B. Long Term Employee Benefits:
Lease payments for assets taken on operating lease are

Financial Statements
i. Defined Contribution Plans: amortized over the lease term. The properties taken on
lease / rental basis are renewable / cancellable at the
The Bank operates a new pension scheme option of the Bank. The Bank’s liabilities in respect of
(NPS) for all officers/employees joining the disputes pertaining to additional rent / lease rent are
Bank on or after 1st April,2010, which is a recognized on settlement or on renewal.
defined contribution plan, such new joinees
not being entitled to become members of the 15. Earnings Per Share
existing Pension Scheme. As per the scheme,
Earnings per share are calculated by dividing the net
the covered employees contribute 10% of
profit or loss (after tax) for the year attributable to the
their basic pay plus dearness allowance to the
equity shareholders by the weighted average number
scheme together with 14% of their basic pay
of equity shares outstanding during the year. Diluted
plus dearness allowance as contribution from
earnings per share reflect the potential dilution that
the Bank. Pending completion of registration
could occur if contracts to issue equity shares were
procedures of the employees concerned, these
exercised or converted during the year. Diluted earnings
 Integrated Annual Report
326 2022-23

per equity share are calculated by using the weighted Tax Assets will be realized. In case of carry forward of
average number of equity shares and dilutive potential unabsorbed depreciation and tax losses, Deferred Tax
equity shares outstanding during the year. Assets are recognized only if there is “virtual certainty”.

16. Taxation 17. Provisions, Contingent Liabilities and Contingent

Assets
This comprises of provision for Income tax and deferred
tax charge or credit (reflecting the tax effects of timing As per AS 29 (Provisions, Contingent Liabilities and
differences between accounting income and taxable Contingent Assets) issued by the ICAI, the Bank
income for the period) as determined in accordance recognizes provisions only when it has a present
with AS-22 on “Accounting for taxes on Income” obligation as a result of a past event, it is probable that
issued by the ICAI. Provision for Tax is made for both an outflow of resources embodying economic benefits
current and deferred taxes. Current tax is provided on will be required to settle the obligation and when a
the taxable income using applicable tax rate. Deferred reliable estimate of the amount of the obligation can
Tax Assets and Deferred Tax Liabilities arising on be made. Contingent Assets are not recognized in
account of timing differences and which are capable of the financial statements since this may result in the
reversal in subsequent periods are recognized using the recognition of income that may never be realized.
tax rates and the tax laws that have been enacted or
substantively enacted till the date of the Balance Sheet. 18. Share Issue Expenses:
Deferred Tax Assets are not recognized unless there Share Issue expenses are charged to the Share Premium
is ‘reasonable certainty’ that sufficient future taxable account in terms of Section 52 of the Companies Act,
income will be available against which such Deferred 2013.
Integrated Annual Report
2022-23 327

SCHEDULE 18 – NOTES TO ACCOUNTS (CONSOLIDATED)

1. The particulars of the subsidiaries whose financial statements are consolidated with the standalone financial statement
of the Bank (the Parent) are as under:

Proportion of
Country of Ownership by
Names of Subsidiaries
Incorporation the parent as
on 31.03.2023

Strategy, Model & Capitals

Union Asset Management Company Private Limited India 100%
Union Trustee Company Private Limited India 100%
Union Bank of India UK Limited United
100%
Kingdom
Andhra Bank Financial Services Limited India 100%
UBI Services ltd India 100%

2. The particulars of Joint Venture considered in the Consolidated Financial Statements are as under :

Names of Joint Venture Country of Proportion of

Incorporation Ownership
Star Union Dai–Ichi Life Insurance Company Limited (Non- Banking) India 25.10%

Notice
ASREC (India) Ltd India 26.02%
India international bank (MALAYSIA) BHD India 25.00%

3. The particulars of Associate considered in the Consolidated Financial Statements are as under:

Names of Associates Country of Proportion of

Incorporation Ownership
Chaitanya Godavari Grameena Bank India 35%

Statutory Reports
The value of the investment made by the Bank is ` 1,542.52 Crore as on 31st March 2023 which is treated as long term
investment.

4 The financial statements of the subsidiaries, joint venture and associate which are used in the consolidation have
been drawn up to the same reporting date as that of the Parent i.e. 31st March 2023 except for India International Bank
(Malaysia) BHD for 31st December, 2022.

5 The Consolidated Financial Statements have been prepared on the basis of audited financial statements of Union Asset
Management Company Private Limited, Union Trustee Company Private Limited, Union Bank of India (UK) Limited,

Financial Statements
Chaitanya Godavari Grameena Bank for the financial year ended 31.03.2023, India International Bank (Malaysia) BHD
for the period ended 31.12.2022 and unaudited financials of Star Union Dai-ichi Life Insurance Company Limited, UBI
Services LTD, ASREC(INDIA) Limited and Andhra Bank Financial Services Limited for the financial year ended 31.03.2023.

6 Adjustment of outstanding entries in Suspense Accounts, Sundry Deposits, Clearing Adjustments, Bank Reconciliation
Statements and various inter-branch/office accounts is in progress on an ongoing basis. Pending final clearance of the
same, the overall impact, if any, on the accounts, in the opinion of the management will not be significant.
 Integrated Annual Report
328 2022-23

7 DISCLOSURES IN TERMS OF THE RESERVE BANK OF INDIA GUIDELINES

7.1. A. Capital

The Bank is subjected to Basel III capital adequacy guidelines stipulated by RBI with effect from April 1, 2013. The
guidelines provide a transition schedule for Basel III implementation till Oct. 1, 2021. As per RBI Guidelines, Basel III has
been completely implemented from Oct. 1, 2021. As per guidelines, the Tier I capital is made up of Common Equity Tier
I (CET I) and Additional Tier I Capital (AT 1).

Basel III guidelines require the Bank to maintain minimum capital to Risk Weighted Assets ratio (CRAR) of 11.50% with
minimum CET I of 8.00% (inclusive of Capital Conservation Buffer of 2.50%) and minimum Tier I CRAR of 9.50% as at
March 31, 2023.

During the year, the Bank has issued Basel III compliant Tier-2 bonds of ` 2,200 Crore & additional Tier-1 Bonds of `
1,983 crore in tranches and exercised call option for redemption of Basel III compliant Tier-2 bonds of ` 2,300.00 crore
& additional Tier-1 Bonds of ` 1,000.00 crore.

The computation of Capital Adequacy as per the framework is indicated below:

(Amount in ` crore)
Sr.
Particulars 31.03.2023 31.03.2022
No.
i. Common Equity Tier 1 capital (CET 1) / Paid up share capital and reserves (net 71,879.53 58,205.98
of deductions, if any)
ii. Additional Tier 1 capital / Other Tier 1 capital 8,985.99 8,539.83
iii. Tier 1 capital (i + ii) 80,865.52 66,745.81
iv. Tier 2 capital 12,299.90 12,692.32
v. Total capital (Tier 1+Tier 2) 93,165.42 79,438.12
vi. Total Risk Weighted Assets (RWAs) 5,82,024.83 5,48,469.51
vii. CET 1 Ratio (CET 1 as a percentage of RWAs) / Paid-up share capital and reserves 12.35 10.61
as percentage of RWAs
viii. Tier 1 Ratio (Tier 1 capital as a percentage of RWAs) 13.89 12.17
ix. Tier 2 Ratio (Tier 2 capital as a percentage of RWAs) 2.11 2.31
x. Capital to Risk Weighted Assets Ratio (CRAR) (Total Capital as a percentage of 16.01 14.48
RWAs)
xi. Leverage Ratio 5.74 5.17
xii. Percentage of the shareholding of
a) Government of India 83.49 83.49
b) State Government (specify name) -- --
c) Sponsor Bank -- --
xiii. Amount of paid-up equity capital raised during the year -- 1,447.17
xiv. Amount of non-equity Tier 1 capital raised during the year, of which:
a) Basel III compliant Perpetual Non-Cumulative Preference Shares -- --
b) Basel III compliant Perpetual Debt Instruments 1,983.00 5,000.00
xv Amount of Tier 2 capital raised during the year, of which
a) Perpetual Cumulative Preference Shares -- --
b) Redeemable Non-Cumulative Preference Shares -- --
c) Basel III compliant Redeemable Non-convertible Tier 2 Bonds 2,200.00 2,000.00
Integrated Annual Report
2022-23 329

7.2 Provisions and Contingencies

(` in crore)
Break up of Provision & Contingencies.
31.03.2023 31.03.2022
shown under the head in Profit & Loss:
Provision / (Reversal) for Depreciation on Investment 1,915.53 200.48
Provision towards NPA 12,506.77 11931.44
Provision/(Reversal) towards Standard Assets (988.37) 1451.35

Strategy, Model & Capitals

Net Provision made towards Income Tax/Deferred tax 3,716.20 3357.84
Other Provision and Contingencies: (22.08) (276.62)
TOTAL 17,128.04 16664.49

7.3 Counter Cyclical Provisioning Buffer / Floating Provision:

(` in crore)
Sr.
Particulars 31.03.2023 31.03.2022
No.
i) Opening Balance Nil 306.20
ii) Additional provisions made during the accounting year Nil Nil
iii) Amount of drawdown made during the accounting year Nil 306.20

Notice
iv) Closing balance Nil Nil

8 EMPLOYEE BENEFITS (AS 15 - REVISED) (Parent Bank)

i) Short Term Employment Benefits:

The undiscounted amounts of short-term employee benefits (e.g. medical benefits) payable wholly within twelve
months of rendering the service are treated as short term and recognized during the period in which the employee
rendered the service.

Statutory Reports
ii) Long Term Employee Benefits:

a) Defined Contribution Plans:

The Bank operates a new pension scheme (NPS) for all officers/employees joining the Bank on or after 1st
April,2010, which is a defined contribution plan, such new joinees not being entitled to become members of
the existing Pension Scheme. As per the scheme, the covered employees contribute 10% of their basic pay
plus dearness allowance to the scheme together with 14% contribution from the Bank. Pending completion
of registration procedures of the employees concerned, these contributions retained with the Bank. The Bank

Financial Statements
recognizes such annual contributions in the year to which they relate. Upon receipt of the Permanent Retirement
Account Number (PRAN), the consolidated contribution amounts are transferred to the NPS trust.

The Bank has Defined Contribution Pension Scheme (DCPS) applicable to all categories of officers and
employees joining the Bank on or after April 1, 2010. The scheme is managed by National Pension Scheme
(NPS) Trust under the aegis of the Pension Fund Regulatory and Development Authority. National Securities
Depository Limited has been appointed as the Central Record Keeping Agency for the NPS. During F.Y. 2022-
2023, the Bank has contributed ` 525.36 crores including arrears of ` 0.12 crores (Previous Year `501.51 crore)
to NPS.
 Integrated Annual Report
330 2022-23

b) Defined Benefit Plan:

Gratuity, Pension and Leave Encashment are defined benefit plans. These are provided for on the basis of
an actuarial valuation as per Accounting Standard-15 “Employee Benefit” issued by the Institute of Chartered
Accountants of India, made at the end of each financial year, based on the projected unit credit method.
Actuarial gains/losses are immediately taken to the Profit & Loss account.

c) Defined Benefit Plans – Employee’s Pension plan and Gratuity plan:

The Bank has accounted for employee benefits as per Accounting Standards issued by the Institute of Chartered
Accountants of India, as per actuarial valuation report for the year ended March 31, 2023.

(` in crore)
S. 31.03.2023 31.03.2022
Particular
No. Gratuity Pension Gratuity Pension
i) Table showing change in Defined Benefit Obligation:
Liability at the beginning of the year 3,197.81 28,650.99 3,355.82 26,011.41
Interest Cost 233.76 2,120.17 232.56 1,797.39
Current Service Cost 163.00 184.38 161.12 212.30
Past Service Cost (Vested Benefit NIL NIL NIL NIL
Amortized)
Past Service Cost (Vested Benefit) NIL NIL NIL 1902.02
Liability Transfer in NIL NIL NIL NIL
Liability Transfer out NIL NIL NIL NIL
(Benefit paid) (334.38) (2,120.73) (465.84) (2,341.52)
Actuarial (Gain)/loss on obligation –due to change
In the financial assumption (63.88) (278.47) (119.57) (1,446.34)
in demographic assumption NIL NIL 2.86 63.46
Actuarial (Gain) / Loss on obligations 29.55 614.25 30.86 2,452.27
Liability at the end of the year 3,225.86 29,170.59 3,197.81 28,650.99
ii) Table of Fair value of Plan Assets:
Fair value of Plan Assets at the be-ginning 3,367.60 27,043.50 2,746.43 26,720.88
of the year
Expected return on Plan Assets 246.17 2,001.22 190.33 1,846.41
Contributions NIL 1,780.29 843.37 551.42
Transfer from Other Company 0.29 NIL NIL NIL
Transfer to Other Company NIL NIL NIL NIL
(Benefit paid) (334.38) (2,120.73) (465.84) (2,341.52)
Actuarial (Gain)/loss on Plan Assets (17.33) 49.96 (53.31) (266.31)
Fair Value of Plan Assets at the end of the 3,262.35 28,754.24 3,367.60 27,043.50
year
Actuarial (Gain)/loss on obligation for the (34.33) 335.78 (85.85) 1,069.39
period
Actuarial (Gain)/loss on Plan Assets 17.33 (49.96) (53.31) (266.31)
Total Actuarial (Gain)/loss to be recognized (17.00) 285.82 (139.16) 803.08
iii) Recognition of Transitional Liability:
Transitional Liability at start NIL NIL NIL NIL
Transitional Liability recognized dur-ing the NIL NIL NIL NIL
year
Transitional Liability at end NIL NIL NIL NIL
Integrated Annual Report
2022-23 331

(` in crore)
S. 31.03.2023 31.03.2022
Particular
No. Gratuity Pension Gratuity Pension
iv) Actual return on Plan Assets:
Expected Return on Plan Assets 246.17 2,001.22 190.33 1,846.41
Actuarial Gain/(Loss) on Plan Assets (17.33) 49.96 53.31 266.31
Actual return on Plan Assets 228.84 2,051.18 243.64 2,112.72
v) Expenses recognized in the Income Statement:

Strategy, Model & Capitals

Current Service Cost 163.00 184.38 161.12 212.30
Interest Cost (12.41) 118.95 42.23 (49.02)
Expected Return on Plan Assets NIL NIL NIL NIL
Past Service Cost (Vested Benefit NIL NIL NIL NIL
Amortized) recognized
Past Service Cost (Vested Benefit) NIL 1,521.62 NIL 380.40
recognized(1/5 of enhanced family pension)
Recognition of Transition Liability NIL NIL NIL NIL
Actuarial (Gain) or Loss (17.00) 285.82 (139.16) 803.08
Expenses Recognized in P & L 133.59 2,110.77 64.19 1346.76
vi) Balance Sheet Reconciliation:
Opening Net Liability (Last year net amount (169.79) 85.87 609.39 (709.47)

Notice
recognized in the balance sheet)
Expenses as above 133.59 2,110.77 64.19 1,346.76
Transfer from other Company (Net) (0.29) NIL NIL NIL
Transfer to other Company (Net) NIL NIL NIL NIL
(Employer Contribution) NIL (1,780.29) (843.37) (551.42)
Net (Asset)/Liability Amount recog-nized in (36.49) 416.35 (169.79) 85.87
Balance Sheet
vii) Other Details:
Pension is payable at the rate of 1/66 Salary

Statutory Reports
for Each Year of Service Subject to Maximum
of 50%.
Gratuity is payable at the rate of 15 days
salary for each year of service subject to
maxi-mum of ` 20,00,000 or as per the Bank
scheme.
Actuarial gain / loss is accounted for in the
year of occurrence.
Salary escalation is considered as advised
by the company which is in line with the
industry practice considering promotion and

Financial Statements
demand and supply of the employees.
No. of Members 75,618 21,138 75,201 23,216
Salary Per Month 513.88 513.88 354.44 182.95
Contribution for next year 139.74 587.94 - 592.76
viii) Category of assets:
Government of India Assets 61.47 565.13 63.45 585.14
Corporate Bonds/FDR 25.75 720.80 36.15 721.81
Special Deposits Scheme - - - -
State Govt. 82.81 1,379.39 101.17 1,185.78
Property NIL NIL NIL NIL
Other 64.13 454.17 244.10 1,733.36
Insurer Managed Funds 3,028.18 25,634.75 2,897.20 22,492.80
Mutual Fund NIL NIL 25.53 324.61
Total 3,262.34 28,754.24 3,367.60* 27,043.50*
 Integrated Annual Report
332 2022-23

*Note: Return on investments in LIC & other insurance companies is expected at 7.50% while arriving Pension liability and Gratuity liability
at the Fair Value of Plan Assets for the FY2022-23 as against the 7.25% considered for arriving Pension and Gratuity liability for the
FY2021-22.
(` in crore)
Surplus/Deficit in the Plan: Gratuity Plan
Amount recognized in the Balance-Sheet 31.03.23 31.03.22 31.03.21 31.03.20* 31.03.19*
Liability at the end of the year 3,225.86 3,197.81 3,355.82 1,291.94 1,222.64
Fair value of Plan Assets at the end of the year 3,262.35 3,367.60 2,746.43 1,219.01 1,202.14
Difference 36.49 169.79 (609.39) (72.93) (20.50)
Unrecognized Past Service Cost Nil Nil Nil Nil Nil
Unrecognized Transition Liability Nil Nil Nil Nil Nil
Amount Recognized in the Balance Sheet 36.49 169.79 (609.39) (72.93) (20.50)
*Amount mentioned for Union Bank (Standalone) only.
(` in crore)
Amount recognized in the Balance-Sheet Gratuity Plan
Experience Adjustment 31.03.23 31.03.22 31.03.21 31.03.20* 31.03.19*
On plan liability (Gain) / Loss 29.55 30.86 752.31 25.87 7.91
On plan Assets (Loss) / Gain (17.33) 53.31 34.41 7.20 (13.03)
* Amount mentioned for Union Bank (Standalone) only.
(` in crore)
Surplus/Deficit in the Plan: Pension Plan
Amount recognized in the Balance-Sheet 31.03.23 31.03.22 31.03.21 31.03.20* 31.03.19*
Liability at the end of the year 29,170.59 28,650.99 26,011.41 12,746.69 12,158.43
Fair value of Plan Assets at the end of the year 28,754.24 27,043.50 26,720.88 12,607.16 12,308.84
Difference (416.35) (1,607.49) 709.47 (139.53) 150.41
Unrecognized Past Service Cost Nil 1,521.62 Nil Nil Nil
Unrecognized Transition Liability Nil Nil Nil Nil Nil
Amount Recognized in the Balance Sheet (416.35) (85.87) 709.47 (139.53) 150.41
* Amount mentioned for Union Bank (Standalone) only.

(` in crore)
Amount recognized in the Balance-Sheet Pension Plan
Experience Adjustment 31.03.23 31.03.22 31.03.21 31.03.20* 31.03.19*
On plan liability (Gain) / Loss 614.25 2,452.27 1,456.27 938.90 125.22
On plan Assets (Loss) / Gain 49.96 266.31 81.65 75.23 7.18
* Amount mentioned for Union Bank (Standalone) only.

2022-23 2021-22
Principal actuarial assumption used (%)
Gratuity Pension Gratuity Pension
Discount Rate Prev. 7.31 7.40 6.93 6.91
Rate of return on Plan Assets Prev. 7.31 7.40 6.93 6.91
Salary Escalation Prev. 5.00 5.00 5.00 5.00
Attrition Rate Prev. 2.00 2.00 2.00 2.00
Discount Rate Current 7.49 7.53 7.31 7.40
Rate of Return on Plan Assets Current 7.49 7.53 7.31 7.40
Salary Escalation Current 5.00 5.00 5.00 5.00
Attrition Rate Current 2.00 2.00 2.00 2.00
Integrated Annual Report
2022-23 333

i) Other long term Employee Benefits:

Details of Provisions made for various Long-Term Employees Benefits during the year are as follows:

(` in crore)
Sr.
Other Long Term Benefits 31.03.2023 31.03.2022
No.
1 Pension 2,110.77 1,346.76

Strategy, Model & Capitals

2 Leave Travel Concession 3.66 13.41
3 Leave Encashment 149.30 48.70

Bank is having provision of `268.76 Crore towards Sick Leave on prudential basis though there is no payout.

ii) Unamortized Family pension & Gratuity Liabilities:

(` in crore)
Particulars 31.03.2023 31.03.2022
Pension
a) Balance brought forward 1,521.62 NIL
b) Gross Liability NIL 1,902.02
c) Charged to Profit & Loss account 1,521.62 380.40

Notice
d) Balance Carried forward NIL 1,521.62
Gratuity
a) Charged to Profit & Loss account NIL NIL
b) Carried forward NIL NIL

a. Pursuant to the revision in family pension payable to the employees of the Bank, covered under 11th Bi- Partite
Settlement and joint note dated November 11, 2020, the Bank had arrived additional liability at ₹ 1,902.02 Crore
as per Actuarial valuation, of which a sum of ₹ 380.40 Crore was amortized during the FY 2021-22, in terms of RBI
Circular no. RBI/2021-22/105 DOR.ACC.REC.57/21.04.018/2021-22 dated October 04, 2021 and unamortized part

Statutory Reports
of ₹ 1,521.62 Crore has been fully charged to the Profit & Loss Account during the year ended March 31, 2023. There
is no unamortized expenditure in the Balance Sheet on account of additional family pension.

b. In terms of RBI circular no. RBI/DOR/2021-22/83 DOR.ACC.REC.No.45/21.04.018/2021-22 dated August 30, 2021
(Updated as on February 20, 2023), the following disclosures are required (Parent Bank):

a. In case of Other Liabilities and Provisions, any item under the head “Others (including provisions)” exceeds one
per cent of the total assets,

b. In case of Other Assets, any item under the head “Others” exceeds one per cent of the total assets,

Financial Statements
c. In case of Other Income, any item under the head “Miscellaneous Income” exceeds one per cent of the total
income,

d. In case of Operating Expenses, any item under the head “Other expenditure” exceeds one per cent of the total
income,

(₹ in Crore)
Statement Showing item in Sch. 14- Other income Sub Head – Miscellaneous in-come
Item under the Sub Head (₹ in Crore) % of Total
Income
Processing Charges for Advanc-es 1,178.18 1.24
Miscellaneous Earning 1,004.21 1.05
Recovery In Write Off 5,549.49 5.82
There is no other disclosure related to other heads as mentioned above.
 Integrated Annual Report
334 2022-23

10. SEGMENT REPORTING (AS-17)

10.1. Business Segments:

(` in crore)
Consolidated
Year Ended
Business Segment
(Audited) (Audited)
31.03.2023 31.03.2022
(a) Segment Revenue
1 Treasury Operations 26,442.90 26,815.66
2 Retail Banking Operations 31,078.66 26,198.04
(a) Digital Banking Operations 569.38 NA
(b) Other Retail Banking Operations 30,509.28 26,198.04
3 Corporate /Wholesale Banking 35,941.71 25,776.79
4 Other Banking Operations 1,979.37 1,397.64
5 Unallocated 2,198.75 1,688.64
Total Segment Revenue 97,641.39 81,876.77
Less Inter-segment Revenue (562.86) (122.70)
Income from operations 97,078.53 81,754.07
(b) Segment Results
1 Treasury Operations 2,426.80 6,002.74
2 Retail Banking Operations 5,059.25 4,508.68
(a) Digital Banking Operations (43.07) NA
(b) Other Retail Banking Operations 5,102.32 4,508.68
3 Corporate Banking 3,091.44 (3,093.72)
4 Other Banking Operations 1,063.52 758.37
5 Unallocated 505.46 390.27
Total Profit/(Loss) Before Tax 12,146.47 8,566.34
(c) Provision for Tax 3,716.12 3,357.84
(d) Net Profit/(Loss) after Tax 8,430.35 5,208.50
Add: Share of Profit in Associate 81.32 56.82
(e) Consolidated Net Profit/(Loss) 8,511.67 5,265.32

(f) Segment Assets

1 Treasury Operations 4,64,788.70 4,78,735.97
2 Retail Banking Operations 3,59,680.33 3,18,913.60
(a) Digital Banking Operations 42,263.05 NA
(b) Other Retail Banking Operations 3,17,417.28 3,18,913.60
3 Corporate/Wholesale Banking 4,26,011.76 3,68,181.73
4 Other Banking Operations - -
5 Unallocated 37,876.32 27,934.31
Total 12,88,357.11 11,93,765.61
Integrated Annual Report
2022-23 335

(` in crore)
Consolidated
Year Ended
Business Segment
(Audited) (Audited)
31.03.2023 31.03.2022
(g) Segment Liabilities
1 Treasury Operations 4,56,704.84 4,70,252.54

Strategy, Model & Capitals

2 Retail Banking Operations 3,28,812.17 2,90,449.81
(a) Digital Banking Operations 38,724.27 NA
(b) Other Retail Banking Operations 2,90,087.90 2,90,449.81
3 Corporate/Wholesale Banking 3,88,190.19 3,35,313.11
4 Other Banking Operations - -
5 Unallocated 35,846.39 26,889.03
Total 12,09,553.60 11,22,904.49
(h) Capital Employed
1 Treasury Operations 8,083.86 8,483.43
2 Retail Banking Operations 30,868.16 28,463.79

Notice
(a) Digital Banking Operations 3,538.78 NA
(b) Other Retail Banking Operations 27,329.38 28,463.79
3 Corporate/Wholesale Banking 37,821.57 32,868.62
4 Other Banking Operations - -
5 Unallocated 2,029.92 1,045.28
Total 78,803.51 70,861.12

Notes:

Statutory Reports
1. The Bank operates in four segments viz., Treasury, Retail, Corporate / Wholesale and Other Banking Operations.
These segments have been identified in line with AS-17 on segment reporting issued by the Institute of Chartered
Accountants of India (ICAI) after considering the nature and risk profile of the products and services, the target
customer profiles, the organizational structure and the internal reporting system of the bank. The bank has disclosed
the business segment as primary segment. The revenue and other parameters of foreign branch for the period are
within the threshold limits stipulated as per AS-17 and hence the bank has only one reportable segment.

2. Segment wise income, expenditure, Capital employed which are not directly allocable have been allocated to the

Financial Statements
reportable segments based on assumptions as considered appropriate by the management.

3. Figure of previous period have been regrouped/reclassified wherever necessary.

4. In accordance with RBI circular DOR.AUT.REC.12/22.01.001/2022-23 dated April 7, 2022 on Establishment of

Digital Banking Units, the Bank has for the first time disclosed ‘Digital Banking’ as a sub-segment of the Retail
Banking segment.
 Integrated Annual Report
336 2022-23

11. RELATED PARTY DISCLOSURES (AS-18) (Parent Bank)

11.1 List of Related Parties

a) Subsidiaries
• Union Asset Management Co. Pvt. Ltd.
• Union Trustee Company Pvt. Ltd.
• Union Bank of India (UK) Ltd.
• Andhra Bank Financial Services Ltd.
• UBI Services Ltd.
b) Joint Venture
• Star Union Dai-Ichi Life Insurance Co. Ltd.

• ASREC (India) Ltd.

• India International Bank (Malaysia) Berhad

c) Associate

• Chaitanya Godavari Grameena Bank

d) Key Management Personnel (₹ in Crore)

Remuneration paid for the

Name Designation
Year ended 31st March 2023
Shri Rajkiran Rai G. @ Managing Director & CEO 0.19
Ms. A Manimekhalai # Managing Director & CEO 0.30
Shri Manas Ranjan Biswal ## Executive Director 0.11
Shri Nitesh Ranjan Executive Director 0.39
Shri Rajneesh Karnatak Executive Director 0.34
Shri Nidhu Saxena Executive Director 0.32
Shri Ramasubramanian S^ Executive Director 0.12

@ Till 31.05.2022
# From 03.06.2022
## Till 30.04.2022
^ From 21.11.2022
Parties with whom transactions were entered into during the year
No disclosure is required in respect of related parties, which are “State controlled Enterprises” as per paragraph 9
of Accounting Standard (AS) 18. Further, in terms of paragraph 6 of AS 18, transactions in the nature of Banker –
Customer relationship have not been disclosed including those with Key Management Personnel and relatives of
Key Management Personnel.

As per the RBI Master Direction, KMPs are construed to be the Whole Time Directors of the Bank.
e) Key Management Personnel – Remuneration paid
(` in crore)
Particulars 31.03.2023 31.03.2022
CEO and Managing Director 0.49 0.37
Executive Directors 1.28 1.21
Total 1.77 1.58
Integrated Annual Report
2022-23 337

Parties with whom transactions were entered into during the year

No disclosure is required in respect of related parties, which are “State controlled Enterprises” as per paragraph 9
of Accounting Standard (AS) 18. Further, in terms of paragraph 5 of AS 18, transactions in the nature of Banker –
Customer relationship have not been disclosed including those with Key Management Personnel and relatives of
Key Management Personnel.

12. EARNING PER SHARE (AS-20)

Strategy, Model & Capitals

Basic earnings per equity share are computed by dividing net profit after tax by the weighted average number of equity
shares outstanding during the year. The diluted earnings per equity share is computed using the weighted average
number of equity shares and weighted average number of diluted potential equity shares outstanding during the year.

The computation of earnings per share is given below:

Particulars 31.03.2023 31.03.2022

Number of Equity shares at the beginning of the year 6,83,47,47,466 640,68,44,355
Number of Equity shares issued during the year Nil 42,79,03,111
Number of Equity shares outstanding at the end of the year 6,83,47,47,466 6,83,47,47,466
Weighted Average Number of Equity Shares used in computing Basic 6,83,47,47,466 6,77,26,13,590

Notice
Earnings per share
Weighted Average Number of Shares used in computing diluted Earnings per 6,83,47,47,466 6,77,26,13,590
share
Net Profit/(Loss) ` in Crore 8,511.67 5,265.32
Basic Earnings per share (`) 12.45 7.77
Diluted Earnings per share (`) 12.45 7.77
Nominal Value per share (`) 10 10

Statutory Reports
13. PROVISION FOR TAXES:
Deferred Tax (AS-22)
(` in crore)
Sr. Particulars 31.03.2023 31.03.2022
No.
Deferred Tax Assets
1 Employee Benefits (Leave Encashment) 534.18 474.78
2 Depreciation on Fixed Assets 395.67 358.12
3 On account of other provisions 11,408.93 14,072.58

Financial Statements
4 Foreign Currency Translation Reserve -84.48 1.14
5 Standard Asset 0.00 588.37
6 Others -0.01 0.07
Total 12,254.30 15,495.05
Deferred Tax Liabilities
1 Accrued interest on securities 1,274.79 1,092.63
2 Special Reserves u/s 36(i)(viii) 2,316.74 2,107.08
3 Depreciation on Investment -- --
Total 3,591.53 3,199.71
Net Deferred Tax Asset 8,662.77 12,295.34
Net Deferred Tax Liability Nil Nil
 Integrated Annual Report
338 2022-23

14. IMPAIRMENT OF ASSET (AS-28)

In the opinion of the Management, there is no indication for Impairment during the year with regard to the asset to which
Accounting Standards 28 applies.

15. Additional information disclosed in the separate financial statements of the parent and the subsidiaries have no bearing
on the true and fair view of the Consolidated Financial Statements (CFS) and also the information pertaining the items
which are not material, have not been disclosed in the CFS.

16. The Management believes that there would not be any significant impact on Bank’s performance in future and going
concern assumptions.

17. The figures of the previous year have been regrouped / rearranged wherever considered necessary.

Signatories to Schedules 1 to 18

(PANKAJ KUMAR) (PRAFULLA KUMAR SAMAL)

DY. GENERAL MANAGER CHIEF FINANCIAL OFFICER

(RAMASUBRAMANIAN S) (NIDHU SAXENA) (NITESH RANJAN)

EXECUTIVE DIRECTOR EXECUTIVE DIRECTOR EXECUTIVE DIRECTOR

(ARUN KUMAR SINGH) (SURAJ SRIVASTAVA)

DIRECTOR DIRECTOR

(LAXMAN S UPPAR) (JAYADEV MADUGULA) (PRITI JAY RAO)

DIRECTOR DIRECTOR DIRECTOR

(A. MANIMEKHALAI)
MANAGING DIRECTOR & CEO

(SRINIVASAN VARADARAJAN)
CHAIRMAN

For M/s R G N Price & Co. For M/s SARDA & PAREEK LLP For M/s C R Sagdeo & Co.
Chartered Accountants Chartered Accountants Chartered Accountants
FRN 002785S FRN 109262W/W100673 FRN 108959W

CA P M Veeramani CA Niranjan Joshi CA Sachin V Luthra

Partner Partner Partner
Membership No.023933 Membership No.102789 Membership No. 109127
UDIN: 23023933BGVFVC3602 UDIN: 23102789BGWREC1919 UDIN: 23109127BGQVHS4391

For M/s P V A R & Associates For M/s Gopal Sharma & Co. For M/s NBS & Co.
Chartered Accountants Chartered Accountants Chartered Accountants
FRN 005223C FRN 002803C FRN 110100W

CA Ruchi Agarwal CA Abhishek Sharma CA Pradeep J. Shetty

Partner Partner Partner
Membership No.504134 Membership No.079224 Membership No. 046940
UDIN:23504134BGWTPQ8986 UDIN: 23079224BGTKQP5499 UDIN: 23046940BGPTTT2512
Place : MUMBAI
Date : 6th May, 2023
Integrated Annual Report
2022-23 339

Consolidated Cash Flow Statement

For the Year Ended 31st March, 2023
(` in lacs)
S. Year ended Year ended
Particulars
No. 31 March, 2023 31 March, 2022
A CASH FLOW FROM OPERATING ACTIVITIES:

Strategy, Model & Capitals

Net Profit Before Tax 12,14,647 8,56,634
Adjustments for:
Depreciation on Fixed Assets 74,457 73,809
Provision for Investments 1,67,478 20,048
Provision for Non Performing Assets (Net) 12,50,677 11,62,524
Provision for Standard Asset (1,15,806) 1,36,754
Provision for other items (Net) 14,760 11,339
(Profit)/Loss on Sale or Disposal of Fixed Assets (149) 35
Interest on Borrowings : Capital Instruments 1,58,601 1,55,133
Share of Profit in Associate 8,132 5,682
Transfer to/from reserve (56,928) 63,465
Sub Total 27,15,870 24,85,426

Notice
Adjustments for:
Increase / (Decrease) in Deposits 86,00,976 1,08,71,383
Increase / (Decrease) in Other Liabilities and Provisions 11,51,603 (5,55,146)
(Increase) / Decrease in Investments 6,61,560 (12,92,420)
(Increase) / Decrease in Advances (1,14,16,687) (81,66,081)
(Increase) / Decrease in Other Assets (7,74,427) 3,45,116
Direct taxes paid (Net of Refund) (3,27,752) (54,388)
NET CASH FLOW FROM OPERATING ACTIVITIES (A) 6,11,143 36,33,890

Statutory Reports
B CASH FLOW FROM INVESTING ACTIVITIES :
Purchase of Fixed Assets (3,06,555) (74,953)
Proceeds from Sale/Adjustment of Fixed asset 68,280 30,788
(Increase)/ Decrease in Investment in Subsidiary (17,830) (11,606)
NET CASH FLOW FROM INVESTING ACTIVITIES (B) (2,56,105) (55,771)

C CASH FLOW FROM FINANCING ACTIVITIES :

Financial Statements
Proceeds from Issue of Preference Share Capital Issued by Subsidiary - -
Company Including Share Premium (Net)
Proceeds from issue of Equity Share Capital Including Share Premium - 1,44,208
(Net)
Proceeds from issue of Capital Instruments 98,300 7,00,000
Repayments of Capital Instruments (10,000) (5,40,000)
(Decrease)/Increase Borrowings other than Capital Instruments (8,65,254) (2,27,704)
Interest Paid on Borrowings : Capital Instruments (1,58,601) (1,55,133)
Dividend paid during the year (1,29,861) -
NET CASH FLOW FROM FINANCING ACTIVITIES (C) (10,65,416) (78,629)
Net Increase (Decrease) in Cash & Cash Equivalent ( A )+( B )+( C ) (7,10,377) 34,99,488
Cash and Cash Equivalents as at the beginning of the year 1,19,75,822 84,76,334
Cash and Cash Equivalents as at the end of the year 1,12,65,445 1,19,75,822
 Integrated Annual Report
340 2022-23

(` in lacs)
S. Year ended Year ended
Particulars
No. 31 March, 2023 31 March, 2022
Components of Cash and Cash equivalents
D CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE YEAR
Cash and Balances with RBI (including FC notes) 46,11,589 37,88,571
Balances with Banks and Money at call 73,64,233 46,87,762
Net cash and cash equivalents at the beginning of the year 1,19,75,822 84,76,334
E CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR
Cash and Balance with RBI (including FC notes) 50,25,811 46,11,589
Balances with Banks and Money at call 62,39,634 73,64,233
Net cash and cash equivalents at the end of the year 1,12,65,445 1,19,75,822
Previous Year’s figures have been regrouped/recasted wherever considered necessary to correspond with the year ended
classification/ presentation.

(PANKAJ KUMAR) (PRAFULLA KUMAR SAMAL)

DY. GENERAL MANAGER CHIEF FINANCIAL OFFICER
(RAMASUBRAMANIAN S) (NIDHU SAXENA) (NITESH RANJAN)
EXECUTIVE DIRECTOR EXECUTIVE DIRECTOR EXECUTIVE DIRECTOR
(ARUN KUMAR SINGH) (SURAJ SRIVASTAVA)
DIRECTOR DIRECTOR
(LAXMAN S UPPAR) (JAYADEV MADUGULA) (PRITI JAY RAO)
DIRECTOR DIRECTOR DIRECTOR
(A. MANIMEKHALAI)
MANAGING DIRECTOR & CEO
(SRINIVASAN VARADARAJAN)
CHAIRMAN

Auditors Certificate:
We, the undersigned Statutory Auditors of the Union Bank of India, have verified the above consolidated Cash Flow Statement
of the Bank for the year ended 31.03.2023. The statement has been prepared in Indirect Method in accordance with the
AS-3, “Cash Flow Statement” issued by The Institute of Charterted Accountants of India and with the requirments of the
SEBI (Listing Obligations & Disclosure Requirements), 2015 and is based on and in agreement with the corresponding
Consolidated Profit & Loss Account and the Consolidated Balance Sheet of the Bank covered by our report of the May 06,
2023 to the members.

For M/s R G N Price & Co. For M/s SARDA & PAREEK LLP For M/s C R Sagdeo & Co.
Chartered Accountants Chartered Accountants Chartered Accountants
FRN 002785S FRN 109262W/W100673 FRN 108959W

CA P M Veeramani CA Niranjan Joshi CA Sachin V Luthra

Partner Partner Partner
Membership No.023933 Membership No.102789 Membership No. 109127
UDIN: 23023933BGVFVC3602 UDIN: 23102789BGWREC1919 UDIN: 23109127BGQVHS4391

For M/s P V A R & Associates For M/s Gopal Sharma & Co. For M/s NBS & Co.
Chartered Accountants Chartered Accountants Chartered Accountants
FRN 005223C FRN 002803C FRN 110100W

CA Ruchi Agarwal CA Abhishek Sharma CA Pradeep J. Shetty

Partner Partner Partner
Membership No.504134 Membership No.079224 Membership No. 046940
UDIN:23504134BGWTPQ8986 UDIN: 23079224BGTKQP5499 UDIN: 23046940BGPTTT2512
Place : MUMBAI
Date : 6th May, 2023
Integrated Annual Report
2022-23 341

Disclosures under Basel III Capital Regulations

In accordance with Reserve Bank of India’s Master Circular on Basel III Capital Regulations dated 1 April, 2022 as amended,
Banks are required to make Pillar 3 disclosures under Basel III capital requirements. The Bank has made these disclosures
which are available on its website at the following link:

https://www.unionbankofindia.co.in/english/basel-disclosures-iii.aspx

Strategy, Model & Capitals

Notice
Statutory Reports
Financial Statements
 Integrated Annual Report
342 2022-23

Business Responsibility and Sustainability Report

Business Responsibility and Sustainability Report as required by SEBI has hosted on the website of the Bank that is
www.unionbankofindia.co.in Any member interested in obtaining physical copy of the same may write to Company Secretary
of the Bank.
Integrated Annual Report
2022-23 343

GREEN INITIATIVE – APPEAL TO SHAREHOLDERS

TO GET NOTICES / ANNUAL REPORTS &
OTHER COMMUNICATION THROUGH E-MAIL

Shareholders holding Shares in Demat Accounts are requested to: Register an email ID in their Demat A/c.

Shareholders holding Shares in Physical form are requested to:

Send their consent by filling up and signing the Form ISR-1 together with relevant documents to our Registrar & Share

Strategy, Model & Capitals

Transfer Agent at their address given hereunder:

KFin Technologies Limited

Unit: Union Bank of India
Selenium Tower B, Plot 31 & 32
Financial District, Nanakramguda
Hyderabad – 500032
Email: [email protected]
Toll free: 1800 309 4001
Website: www.kfintech.com

The said Form ISR-1 is available on the website of the Bank at www.unionbankofindia.co.in/english/important-announcement-
to-physical-shareholders.aspx

Notice
Statutory Reports
QR Code is get Form ISR-1
Dividend Mandate:
Shareholders holding Shares in Demat Accounts are requested to:
furnish/ update bank account details with the Depository Participant, to receive dividend directly in the bank account.

Shareholders holding Shares in Physical form are requested to:

To furnish/ update bank account details with our Registrar & Share Transfer Agent by filing the said Form ISR-1 together
with relevant documents, to receive dividend directly in the bank account.

Financial Statements
 Integrated Annual Report
344 2022-23

NOTES
Integrated Annual Report

2022-23

AT UNION BANK OF INDIA, WE BELIEVE IN A

BRIGHTER, GREENER, AND MORE CONNECTED
INDIA, WHERE EVERYONE CAN PROSPER AND
ENJOY THE BENEFITS OF INNOVATION AND
FINANCIAL ACCESS.

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www.unionbankofindia.co.in Integrated Annual Report 2022-23

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