About United Bank of India
(UBI) is a state-owned commercial bank in India, established in 1950 and headquartered in Kolkata, eastern India. The bank is controlled by the Government of India (Government Ownership is over 96%). It is listed on the National Stock Exchange of India and the Mumbai Stock Exchange (ticker code UNITEDBNK/533171). In 1969, the Government of India nationalised it and became part of India's state-owned banking system. In September 2019, the bank's board of directors agreed in principle to merge with Oriental Bank of Commerce and be absorbed by the Punjab National Bank (PNB); After its official entry into force on April 1, 2020, UBI was merged with OBC into PNB, which became India's second largest state-owned bank.
Service Coverage
Coverage area: Mainly serving the whole country of India, with a focus on the eastern and northeastern regions. According to 2019 data, UBI has about 2,055 branches in India, in addition to one overseas branch each in Kolkata, New Delhi and Mumbai.
Offline outlets: Through the head office, 36 regional offices and more than 2,000 outlets, a three-level organizational structure has been formed. This network has enabled UBI to operate extensively in rural and semi-urban areas of India.
ATM distribution: UBI has a nationwide ATM network, and customers can withdraw money at their own ATMs for free. In addition, the bank's debit card can be used at all Visa or NFS Alliance member ATMs (no fees for the first 5 transactions), after which there will be a small fee for ATM withdrawals and non-financial transactions.
Regulatory & Compliance
regulator: As a commercial bank in India, UBI is regulated by the Reserve Bank of India (RBI) and the Ministry of Finance of India, and follows the Banking Act and other relevant regulations. It is also regulated by the Securities and Exchange Board of India (SEBI) after its listing.
Deposit Insurance: According to the Deposit Insurance and Credit Guarantee Corporation of India (DICGC), all commercial bank deposits are covered by government insurance with a maximum payout of INR 500,000 (including interest). Depositors of UBI are entitled to compensation in the event of a liquidation or merger of banks.
Compliance Record: In recent years, UBI has been placed on the RBI's Early Corrective Action (PCA) list, mainly due to its high non-performing loan ratio and low capital adequacy ratio. In December 2017, RBI imposed restrictions on UBI (such as restricting dividends, branch expansion, etc.), urging it to increase capital and expand its capacity and make strict provisions. In terms of non-performing loans, UBI has broken the warning line (net non-performing ratio of more than 9%), so the regulator has asked it to draw more provisions. Overall, UBI has improved its compliance status in recent years by replenishing capital with government injections.
Financial Health
Capital Adequacy Ratio: UBI's capital adequacy ratio (CAR) of approximately 13.00% for the fiscal year ended March 31, 2019, was higher than the regulatory requirement of 8.875% for the same period. This level indicates that its capital structure is relatively sound.
Non-Performing Loan Ratio: As of the end of March 2019, UBI's non-performing loan ratio remained high. The bank's non-performing loan ratio was as high as more than 24% in 2018 and dropped to 16.48% in 2019. The corresponding net non-performing loan ratio (net NPA) is approximately 8.64%. Despite the improvement, it is still above the industry average and requires continued attention. The bank's provision coverage ratio for FY2019 was approximately 52%, indicating that it has more than half of the provisions for non-performing loans.
Liquidity indicators: Although there is a lack of publicly available data, as a large state-owned bank, UBI must meet the requirements of the RBI for indicators such as the liquidity coverage ratio (LCR), and generally maintain it above the regulatory line. In 2019, UBI completed its consolidation and capital replenishment plan, which helped strengthen the overall liquidity position.
Profitability: UBI's total assets in FY2019 were approximately Rs 15.153 trillion. Net loss for the year due to increased provisions (approximately Rs. −231.6 billion); Q1 2020 picked up with a net profit of around Rs.10.5 billion. Overall, UBI's earnings have fluctuated historically, and it needs to rely on follow-up governance and the support of the parent bank for continuous improvement.
Deposit & Loan Products
deposits: UBI offers a wide range of savings and fixed deposit products. The interest rate of a regular savings account is about 3.00%–3.50% per annum; Enjoy a higher interest rate of 3.50% for large deposits (over Rs 100 crore). Accounts are usually designed with a "zero balance" and there is also a minimum balance requirement (e.g. Rs. 500 minimum for savers with a cheque book). Fixed Deposit has a flexible tenor, with a higher interest rate of about 7% (depending on the tenor and policy). UBI also issues certificates of deposit for institutional investors, which enjoy relatively high interest rates for large amounts.
Housing Loans: UBI housing loans can be used for up to 30 years and support the purchase and self-construction of homes. The loan amount can cover 75%–80% of the home price. The latest standard interest rate is around 8.60%–9.95% p.a., with a processing fee of about 0.50% of the loan amount (capped at Rs.50,000) and allows for early repayment without penalty interest. Loan applicants need to have a stable income and corresponding qualifications.
Car Loan Business: Banks provide loans for new and used cars. The interest rate for new car loans is calculated based on the one-year MCLR (benchmark interest rate) plus points, and the MCLR is usually +0.30% (about 8.90%) for male customers and +0.25% (about 8.85%) for women. The interest rate on used car loans is slightly higher (about 9.65%). The loan term is generally not more than 7 years (for new cars) or 5 years (for used cars). The processing fee is 0.59% of the loan amount (minimum Rs. 600 and maximum Rs. 11,800) with no early repayment charge.
Personal Loans: UBI offers personal loans with a credit line of up to Rs 10 lakh for wage earners, retirees, etc. The latest interest rate is around 11.75%–15.45% with a maturity of up to 60 months. There is usually no early repayment fee, and you can flexibly support early or partial repayment. The borrowing conditions mainly depend on the applicant's income and credit history, and there is no fixed minimum income requirement, but the higher the credit score, the easier it is to be approved and the lower the interest rate.
Other loans: Banks also offer special products such as education loans (up to Rs 10 million in China and up to Rs 20 million for studying abroad), agricultural loans, loans for small and micro enterprises, and gold loans, which usually have preferential interest rates and low handling fees.
List of common expenses
Account Management Fee: There is no monthly fee for a general savings account, but a minimum balance must be maintained (e.g. around INR 1,000 for a metro branch and around INR 500 for a township branch). If the requirement is not met, a non-maintenance fee (penalty interest) may be charged.
Minimum Balance Requirement: Savings account with cheque book minimum balance of about Rs 500; Maintain a minimum of Rs.1,000 for a regular current account (depending on the branch level). Some banks also offer "zero balance" accounts or maintenance-free accounts for the elderly.
Transfer fee: Banks support domestic NFS/IMPS/NEFT/RTGS transfers, usually with low or even free transfer fees for online banking or mobile banking. Cross-border wire transfer fees are higher (depending on the destination country and amount). Remittance over the counter or over the counter may be subject to a fixed fee or commission rate; Customers can enjoy preferential rates through online banking, mobile banking, etc.
Overdraft Fee: Business current accounts can apply for an overdraft, and interest will be charged on a daily basis when using the overdraft limit, with a fixed fee may be attached. Overdraft limits, APRs and fees vary depending on the account type.
ATM fees: Withdrawals at UBI's own ATM are free of charge; With other ATMs, the first 5 transactions per month are free of charge, and the subsequent withdrawals are charged at about INR 24 per transaction. Non-transaction inquiries (balances, bills) are about INR 9 per transaction (free of charge for the first 5 transactions).
Other Fees: Replacement debit card is subject to approximately INR 150 plus tax; Re-issuance of the PIN code will cost Rs 50. The annual credit card fee varies depending on the card type. Services such as money orders, cheque cashing, account erasure, etc. may also be subject to a handling fee (depending on the percentage or fixed amount).
Digital Service Experience
Mobile Banking and Online Banking: UBI provides multi-platform mobile banking applications (such as United mBank) and online banking services, supporting account inquiry, real-time transfers, Features such as bill payment and investment product purchases. Users can handle most banking transactions at any time through the mobile app.
Voice Banking: In 2019, UBI partnered with FSS and Amazon to launch a voice-based banking service (similar to Alexa) that allows customers to check balances, recent transactions, reset passwords, or request checkbooks. This innovation elevates the contactless service experience and ensures security with multi-factor authentication (voice + OTP).
Technological innovation: Banks use machine learning and artificial intelligence technologies to improve services, such as intelligent voice interaction to analyze customer needs. In addition, UBI supports real-time statement and bill management, and integrates investment and wealth management modules (such as bonds and funds) in online banking. In the field of payment, it is also connected to UPI, BHIM and other systems to achieve fast transfer and QR code payment.
User evaluation: In mainstream app stores, UBI's mobile banking apps generally score in the upper middle (about 4 stars), and user reviews mostly praise the ease of operation, but there is occasional stability feedback. Overall, UBI has continued to optimize online functions and interfaces in recent years to improve user satisfaction.
Customer Service Quality
Service Channel: UBI provides a 24-hour customer service hotline (national unified customer service number 1800-345-0345), supporting bilingual service in Hindi and English. Customers can also submit inquiries and complaints through the bank's website, email or social media. There are online messages or electronic forms on the bank's official website and online banking.
Response and resolution: Officially, its customer service team is open all year round (only holidays are adjusted according to regulations). The Bank is committed to responding to customer inquiries and complaints in a timely manner, and frequently asked questions are generally dealt with within the same day. Despite the lack of publicly available complaint rate data, UBI, as a major state-owned bank, is required to handle customer disputes in accordance with India's financial consumer protection regulations and regularly report customer complaints and rectification to RBI.
User satisfaction: According to user feedback, UBI performed moderately in terms of loan approval speed and branch processing efficiency; The online service experience has been gradually improved, and special features such as voice services have been well received. In terms of multi-language support, in addition to English, the service staff can usually provide support in Hindi and local languages to adapt to the needs of customers in different regions.
Security measures
security of funds: All savings deposits of UBI are insured by the Indian Deposit Insurance Corporation of India and pay out up to Rs 500,000. Banks use chip debit cards and implement OTP and multi-factor authentication for online transactions (online banking, mobile banking) to prevent fraudulent activities. The bank also deploys monitoring tools and risk control models in its business systems to detect suspicious transactions in a timely manner.
Data Security: In October 2019, UBI's Data Center, Disaster Recovery Center, and Cyber Security Center were certified to ISO 27001:2013 Information Security Management System. This certification demonstrates that the bank's information security management complies with international standards, including encryption, access control, and emergency response mechanisms. So far, no major data breaches have been publicly reported.
Anti-fraud: The bank has a Security Operations Center (SOC) that monitors transactions and system logs 24 hours a day, and works with industry associations to share blacklist information. The daily limit on debit cards (now Rs 100,000) and the transaction frequency limit also reduce the risk of theft. For online payments, real-time risk assessment and behavior analysis technologies have been introduced to improve the security of customer funds.
Featured Services & DifferentiationUBI
offers a wide range of products for different customer segments: "Student Savings Accounts" are designed for students and young people, often with no maintenance fees and small loans; Exclusive benefits such as preferential term interest rates, priority credit support, and health insurance for senior customers; Promote green finance, provide loans to environmental protection enterprises and renewable energy projects, and install energy-saving equipment in sub-branches; Private banking services for high-net-worth clients (clients with large AUM), including personalized investment advisory and fiduciary services. In addition, UBI has also launched a special credit and wealth management plan for farmers and small and micro business owners, reflecting its inclusive and differentiated service positioning.
Market Position & AccoladesBefore
being incorporated into PNB, UBI was one of the important state-owned banks in India. Its total assets at the end of FY2019 amounted to approximately Rs 15.15 trillion. Following the announcement of the merger plan in 2019, the PNB with OBC is expected to become the second largest state-owned bank in India after Bank for State (SBI). UBI is one of the largest state-owned banks, with a large deposit and loan base and branch network. The bank and its employees have also received several industry recognitions, such as the "Best Rural Financial Services Award". Overall, UBI has been recognized by the industry for its digitalization and technological innovation, such as the introduction of voice banking in 2019, showing its market influence in pursuing technology-driven services.
