Growth Outlook: Growth remains benign and Uco bank expects loan growth to
remain within RBI’s projection for the system (~16%). The bank is focussing on
non corporate book with targeted increase in gold loans to Rs15bn, Home loans
from Rs30bn to Rs45bn. Also Uco bank is targeting non-fund based trade
income by increasing their LC business to Rs150bn from Rs85bn now.
CASA Initiatives: The bank is targeting at improving CASA balances through
customer acquisition and capturing higher share of flow business. Uco is now
the sole banker for the oil payments made to Iran and CA balances on this
account is has increased to ~Rs 25bn over the past two months, and the bank
see the CA balances increasing further on this count.
Other highlights: (1) The bank has bulk deposit of ~30% and inline with FinMin
directive aims to bring dependence down to <15 expects="expects" p="p" significant="significant" uco="uco">reduction in the average age of the employees over next 5 yrs as with ~24000
employees currently, Uco has ~2000 retirements every yr which they are
replacing with a younger workforce (3) Uco’s tier‐I capital is ~8% and
management estimates total capital requirement of Rs140bn over next 5 yrs .
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