Union Bank Of India Limited · NSE:UNIONBANK
Union Bank Of India — Q2 FY2020-21 Earnings Presentation
58 slides from Union Bank Of India's earnings presentation, Nov 6, 2020
Slide 1: Filing cover letter to stock exchanges
Ref: ISDl20-211221 November 06, 2020 The Deputy General Manager, The Deputy General Manager, Corporate Relationships Dept. Listing Dept. BSE Ltd. National Stock Exchange of India Ltd. Phiroze Jeejeebhoy Towers, Exchange Plaza, Plot No.CI1, G Block Dalal Street, Bandra-Kurla Complex, Bandra (E), Mumb
Slide 2: Financial Results Q2 & H1 FY 2020-21
Financial Results Q2 & H1 FY 2020-21 November 6th, 2020 Please follow us on: @unionbankofindia @UnionBank Tweets UnionBankInsta UnionBankofIndiaUtube UnionBankofIndia 1
Slide 3: Table of Contents
Table of Contents Amalgamation of erstwhile Andhra Bank and erstwhile Corporation Bank into Union Bank of India Erstwhile Andhra Bank and erstwhile Corporation Bank have been amalgamated into Union Bank of India w.e.f. April 1, 2020. Accordingly, Financials as of Sept 2019 and March 2020 pertains to
Slide 4: Business Performance
BUSINESS PERFORMANCE
Slide 5: Performance Highlights – Q2FY21
Performance Highlights – Q2FY21 Total Business Total Deposits Operating Profit Net Profit 3.08% YoY 3.98% YoY 1.98% YoY Rs 517 Cr CASA RAM Share GNPA Net NPA 34.61% 55.70% 14.71% 4.13% (258bps) YoY (160 bps) YoY PCR CRAR 83.16% 12.38% (890 bps) YoY (58bps) YoY 4
Slide 6: Business Performance - Liabilities
Business Performance - Liabilities Total Deposits (Rs. in crore) Total Deposits 868632 892542 886098 3.98% 852141 YOY 2394 2473 3649 4.11% 3435 890148 YOY 883625 864983 848706 Domestic Deposits Sep-19 Mar-20 Jun-20 Sep-20 Domestic Overseas CASA Portfolio CASA+Retail TD as % of Total Domestic Total C
Slide 7: Business Performance - Assets
Business Performance - Assets (Rs. in crore) Proportion of Gross Advances – Gross Advances Sep 20 Total Advances 639080 666117 650127 651062 1.87% YOY 19 20696 20885 18292 17608 1.82% 46 YOY 17 645421 621472 629242 632770 18 Sep-19 Mar-20 Jun-20 Sep-20 Corporate retail Agri MSME Overseas Domestic 4.
Slide 8: Diversified Loan Portfolio - RAM
Diversified Loan Portfolio - RAM Retail September-2019 RAM* Share in 160 Domestic advances Bps YOY 32% 46% 55.7 54.1 9% 6% 5% 2% 53 September 2020 51.5 27% 48% 10% Sep-19 Mar-20 Jun-20 Sep-20 6% 4% 5% *Retail, Agriculture and MSME collectively called as “RAM sector” Home Education Personal vehicle m
Slide 9: Diversified Loan Portfolio-Industry Exposure
Diversified Loan Portfolio-Industry Exposure Top Sector Exposure S No. Sectors (% Share in Domestic Advance) Jun-20 Sep-20 Rs in Crore % Share Rs in Crore % Share 1 Infrastructure 106326 16.90 103146 16.30 2 NBFCs and HFCs 68477 10.88 69266 10.95 w/w HFCs 21732 3.45 20148 3.18 4 Basic Metal Products
Slide 10: COVID 19: Credit Support
COVID 19: Credit Support Union Bank of India is helping customers to tide over the liquidity crisis through various schemes (30.09.2020) • No. of Loans Sanctioned – 227445 COVID Emergency Line of • Total amount Sanctioned – Rs 7297.37 Cr Credit (CELC) • No. of Loans Sanctioned –130965 Union COVID -1
Slide 11: Credit Rating Matrix & CIBIL Rating Profile
Credit Rating Matrix & CIBIL Rating Profile Rated Advances - Lending to higher rated borrowers… Improved rating profile of new retail loans sanctioned Retail CIBIL Rating Profile 24 16% 17% 18% 41 14% 18% 31 23% 25 71% 45 64% 59% 34 FY-20 Apr-Sep 2020 Mar-20 Jun-20 Sep-20 750 & above 700-750 below 7
Slide 12: Investments
Investments Global Investment (in Crore) 295126 286685 332788 330657 27 29 30 29 73 71 70 71 Sep-19 Mar-20 Jun-20 Sep-20 Non SLR SLR Duration Particulars (Domestic) Jun-2020 Sep-2020 (Years) (Rs. in Crore) (Rs. in Crore) Jun-20 Sep-20 Available for Sale 1,05,111 92,737 2.48 2.53 W/w SLR 63,965 57,36
Slide 13: Overseas Operations
Overseas Operations Business from Overseas Operations Growth (%) US $ in billion Sep* Jun** Sep# (Rs. in crore) 2019 2020 2020 Y-o-Y Y-o-Y (US$) (INR) 2.97 3.1 2.81 Total Business -5.4 -1.3 (21043) (23279) (20765) 0.48 0.3 0.33 Total Deposits -31.3 -28.0 (3435) (2394) (2473) 2.48 2.8 2.5 Total Advan
Slide 14: Financial Inclusion
Financial Inclusion Total PMJDY Accounts Balance in PMJDY A/c’s (No. in Lacs) (Rs in Crores) 200 190 5767 5764 5049 4245 174 168 Sep-19 Mar-20 Jun-20 Sep-20 Sep-19 Mar-20 Jun-20 Sep-20 Micro Insurance & APY - Fresh Enrolments (In Lacs) Terminal Figures (in Lacs) 4.02 3.33 Sep 19 Sep 20 PMJJBY 30.68
Slide 15: Progress under Government Initiatives
Progress under Government Initiatives Total outstanding under Mudra loan: Rs 16173 crore Progress under Mudra Yojana (PMMY) April 20 - September 20 As on 30 September 2020 Sanctioned No. of Outstanding Amount Category Amount No. of Accounts Accounts (Rs. in crore) (Rs. in crore) Shishu (< 50k) 19219
Slide 16: Progress under Government Initiatives
Progress under Government Initiatives Key Highlights of performance under Key Highlights of performance in TReDS psbloansin59minutes.com Number of New Applications received through the Total number bill discounted till date – 14600+ portal has crossed 12500. Total amount of bill discounted til
Slide 17: Statement of Assets & Liabilities
Statement of Assets & Liabilities (Rs. in crore) As at As at As at As at 30.09.19* 31.03.20* 30.06.20 30.09.20 LIABILITIES Capital 1763 3423 6407 6407 Reserves and surplus 23635 30363 54751 55941 Share application 11768 0 0 0 Deposits 442879 450668 892542 886098 Borrowings 40691 52486 93929 53806 Ot
Slide 18: Financials
FINANCIALS
Slide 19: Cost & Yield Ratio
Cost & Yield Ratio Parameters Sep-19 (Q2) Jun-20 (Q1) Sep-20 (Q2) H1 FY 2020 H1 FY 2021 Domestic Global Domestic Global Domestic Global Domestic Global Domestic Global Cost of Deposit 5.71 5.70 5.04 5.03 4.83 4.82 5.66 5.65 4.93 4.92 Cost of Funds 4.89 4.88 4.35 4.31 4.28 4.22 4.93 4.92 4.31 4.26 Yi
Slide 20: Cost & Yield Ratio (Quarterly) - Global
Cost & Yield Ratio (Quarterly) -Global Cost of Deposit g Cost of Funds Net Interest Margin (NIM) 5.70 4.88 2.68 5.44 4.65 2.59 5.03 4.31 4.82 4.22 2.52 2.51 Sep-19 MAR-20 Jun-20 Sep-20 Sep-19 MAR-20 Jun-20 Sep-20 Sep-19 Mar-20 Jun-20 Sep-20 (Q2) (Q4) (Q1) (Q2) (Q2) (Q4) (Q1) (Q2) (Q2) (Q4) (Q1) (Q2)
Slide 21: Cost & Yield Ratio (Half-Yearly) - Global
Cost & Yield Ratio (Half-Yearly) -Global Cost of Deposit Cost of Funds 2.64 5.65 4.92 5.58 4.84 2.60 2.51 4.92 4.26 H1FY20 Mar-20 H1FY21 H1FY20 Mar-20 H1FY21 H1FY20 Mar-20 H1FY21 FY FY FY Yield on Advances Yield on Investment Yield on Funds 8.32 8.29 7.18 7.15 7.03 6.94 7.66 6.57 6.37 H1FY20 Mar-20
Slide 22: Movement of NIM
Movement of NIM NIM Quarterly (on Avg. Earning Assets 2.74 2.68 2.64 2.59 2.56 2.56 2.52 2.51 Sep-19 Mar-20 Jun-20 Sep-20 Domestic Global NIM Half- Yearly (on Avg. Earning Assets 2.69 2.64 2.64 2.60 2.56 2.51 H1FY20 Mar-20 H1FY21 FY Domestic Global 21
Slide 23: Net Interest Income
Net Interest Income (Rs. in crore) Quarterly 6.05% YOY 6403 6293 5934 5967 Sep-19 Mar-20 Jun-20 Sep-20 Half-yearly 11.35% YOY 12696 11402 H1FY20 H1FY21 22
Slide 24: Operating Revenues
Operating Revenues (Rs. in crore) Growth Growth Sep-19 Mar-20 Jun-20 Sep-20 H1 H1 Growth Parameters (%) (%) (Q2) (Q4) (Q1) (Q2) FY20 FY21 (%) YoY QoQ Interest Income 18379 18241 18429 17776 -3.28 -3.54 36225 36205 -0.06 Interest Expense 12445 12274 12026 11483 -7.73 -4.52 24823 23509 -5.29 Net Inter
Slide 25: Non Interest Income
Non Interest Income (Rs. in crore) Growth Growth Sep-19 Mar-20 Jun-20 Sep-20 H1 H1 Growth Parameters (%) (%) (Q2) (Q4) (Q1) (Q2) FY20 FY21 (%) YOY QOQ a. Core Non Interest Income 1368 1546 754 980 -28 30 2547 1735 -32 b. Treasury Income 660 1582 631 1065 61 69 1106 1696 53 W/w Profit on Sale of 53
Slide 26: Fee Income
Fee Income (Rs. in crore) Growth Growth Sep-19 Mar-20 Jun-20 Sep-20 H1 H1 Growth Major Parameters (%) (%) (Q2) (Q4) (Q1) (Q2) FY20 FY21 (%) YOY QOQ Core Non Interest Income 1368 1546 754 980 -28 30 2547 1735 -32 w/w Processing Charges on Advances and Commission 430 566 195 163 -62 -16 785 358 -54 of
Slide 27: Operating Profit
Operating Profit (Rs. in crore) Quarterly 4643 4735 1.98% 4034 YOY 3690 Sep-19 Mar-20 Jun-20 Sep-20 Half- Yearly 2.44% 8769 YOY 8560 H1FY20 H1FY21 26
Slide 28: Provisions
Provisions (Rs. in crore) Sep-19 Mar-20 Jun-20 Sep-20 H1 H1 Parameters FY20 FY21 (Q2) (Q4) (Q1) (Q2) NPAs 5055 8527 2451 3721 8125 6172 Standard Assets 720 560 410 49 626 459 Depreciation on Investment 8 285 -208 81 33 -127 Shifting Loss 0 0 124 0 165 124 Restructured Advances -16 -24 86 -5 -8 81 Ot
Slide 29: Net Profit
Net Profit (Rs. in crore) Quarterly 333 517 Sep-19 Mar-20 Jun-20 Sep-20 -994 -7157 Half-yearly 849 H1FY20 H1FY21 -615 28
Slide 30: Efficiency/Profitability Ratios
Efficiency/Profitability Ratios Return on Avg Assets % Cost to Income Ratio 0.12 0.19 0.15 61.8 48.7 45.8 Sep-19 (Q2) Mar-20 Jun-20 Sep-20 H1FY 20 H1FY 21 44.9 46.75 (Q4) (Q1) (Q2) 44.95 -0.39 -0.12 Sep-19 Mar-20 Jun-20 Sep-20 H1FY 20 H1FY 21 -2.71 (Q2) (Q4) (Q1) (Q2) S. Sep-19 Mar-20 Jun-20 Sep-20
Slide 31: Efficiency Ratios
Efficiency Ratios (Rs. in crore) Sep-19 Mar-20 Jun-20 Sep-20 H1 H1 Profitability Parameters (Q2) (Q4) (Q1) (Q2) FY 20 FY 21 Business per Branch 155.50 160.00 161.00 160.00 155.50 160.00 Business per employee 19.50 20.00 20.00 20.44 19.56 20.44 Gross Profit per Branch 1.94 1.54 1.68 1.97 1.78 1.83 Gr
Slide 32: Asset Quality: Movement in Non Performing Assets
Asset Quality: Movement in Non Performing Assets (Rs. in crore) Sep-19 Mar-20 Jun-20 Sep-20 H1 H1 Parameters (Q2) (Q4) (Q1) (Q2) FY 20 FY 21 Gross NPAs - Opening 99361 100432 97193 97190 98427 97193 Add : Additions 6830 4303 1750 673 12727 2423 Less : Reductions 5565 7542 1753 2066 10528 3819 1. Rec
Slide 33: Asset Quality: Sectoral
Asset Quality: Sectoral (Rs. in crore) Sectoral NPA % Slippages During Sectors NPAs Sep 2020 Q2 FY 21 Sep-19 Jun-20 Sep-20 Retail Loans 165 4944 3.60 3.90 3.74 Agriculture 86 10600 9.69 10.59 9.89 MSME 197 21932 14.04 17.04 17.57 Large Corporate & others 225 58321 22.94 20.15 20.32 Total 673 95797 1
Slide 34: Status of NCLT Accounts
Status of NCLT Accounts RBI List 1 O/s PCR on NCLT accounts Rs. 9005 cr (8 A/c) 100% 99% RBI List 2 O/s Rs.9316 cr (18 A/c) 97% Others - Admitted 96% Rs.44973 cr (466 A/c) Total RBI LIST 1 RBI LIST 2 OTHERS TOTAL Rs.63294 cr ( 492 A/c) 33
Slide 35: Basel III: Capital Adequacy
Basel III : Capital Adequacy 9.74 9.48 10.05 8.6 8.4 8.91 01.04.2020 Jun-20 Sep-20 CET-1 Tier 1 (Rs. in crore) (Rs. in crore) Capital Raising During Quarter Bank raised Basel III compliant Tier II Bonds for Rs.1000 Crores @ 7.42% coupon during Sept 2020. Bank exercised call option of Basel III compl
Slide 36: Shareholding Pattern
Shareholding Pattern September-2020 1% 5% 5% Share Capital Rs.6,407 crore No. of Equity Shares Rs.640.68 crore Net Worth Rs. 41,626 crore 89% Govt. of India FII DII public & others 35
Slide 37: Update on Amalgamation
UPDATE ON AMALGAMATION
Slide 38: Organization Structure
Organization Structure Organisation Design: Revamped Tier Structure & CPCs Corporate Office Zonal Offices (18) Regional Offices (125) Branches (9590) No. of Units No. of Units No. of Units Particulars Sectors covered (Sep-19) (Jun-20) (Sep-20) ULP 75 75 121 Retail (Housing and Mortgage Loan) USK 45
Slide 39: Specialized structures rationalization exercise completed
Specialized structures in amalgamated entity Specialized structures rationalization exercise completed boosting field level operational efficiency Count in Amalgamated entity 40 Mid Corporate 7 Industrial 23 Recovery 14 Collection & Payment Branches Finance Branch Structures Service (CAPS) Branches
Slide 40: IT Amalgamation progressing well
IT Amalgamation progressing well with Key channel applications already integrated Applications Integrated for both eCB Applications Integrated for eCB and and eAB in progress for eAB IMPS Internet Banking ATM Switch Mobile Banking Payment channels integrated for customers onboarded as and when NEFT
Slide 41: Core Banking migration progress
2 Phases of eCB branch migration concluded 1 525 branches already 2 migrated to Union Bank CBS Migration planned Significant progress in Core Banking without change of 3 System migration with bank on the Account number for way of completing integration in customers record time Entire eCB branch netw
Slide 42: Organization Structure rolled out and operationalized
Update On Amalgamation Organization Structure rolled out and operationalized Organization structure re-vamped during Q1 to suit strategic focus Rollout complete with key personnel posted and assumed charge in verticals Bank-wide KRAs revamped and operationalized, aligning with growth priorities
Slide 43: Update On Amalgamation
2. Update On Amalgamation | Branch Rationalization ATM Rationalization ] Other Cost rationalization | ] ] | 42
Slide 44: Digital Banking, New Initiatives & ESG
DIGITAL BANKING, NEW INTIATIVES & ESG
Slide 45: Expanding Digital Footprints
Expanding Digital Footprints ATMs/ Debit Internet cards POS Mobile Banking Banking •Vast network of 13287 •Vide network of 3.58 Lac •With customer base of •With a customer base of ATMs with 4.37 crores terminals. 93.37 Lacs, Union Bank 65.50 Lacs, internet debit card base. provides a bunch of •Live
Slide 46: Expanding Digital Footprints: Value of Transactions
Expanding Digital Footprints Value of Transactions Credit Card UPI Debit Card (Rs. in Billion) 303 370 13 125 7 145 Sep-19 Sep-20 Sep-19 Sep-20 Sep-19 Sep-20 45
Slide 47: Doorstep Banking
Doorstep Banking Doorstep Banking services through Mobile app, Web Based Portal and Call Centre. 561 branches providing DSB services across the country. As on 20.10.2020 , 401 transactions were completed since launch. Creating awareness- FAQs and information displayed in our Bank Website. 18 lakh em
Slide 48: Five Channels Six products
Dial-a-Loan (New Product in the offing) Five Channels Six products Business Loan Missed Calls (Upto Rs 5 crore) Mudra Loan SMS Vehicle Loan Call Centres Home Loan Internet Banking Personal Loan Mobile Banking Credit Card 47
Slide 49: ESG Practices
ESG Practices • Sending Monthly e-statement • Bank contributed Rs. 14.75 Lacs • The Bank has laid emphasis on to all customers having email through Union Bank Social fairness, transparency and id. Foundation towards accountability for • Entire lighting fixtures of CO Community Development performanc
Slide 50: Group Entities
GROUP ENTITIES
Slide 51: Performance of Subsidiaries, JVs & Associates
Performance of Subsidiaries, JVs & Associates Subsidiary/JV/ Name Associates Subsidiary Union Bank of India (UK) Limited Subsidiary Union Asset Management Co. Private Limited Subsidiary Corp Bank Securities Limited Subsidiary Andhra Bank Financial Services Limited Subsidiary Union Trustee Co. Pvt. L
Slide 52: Details of Group Entities
Details of Group Entities (Rs. in crore) Subsidiaries Union Bank of India (UK) Limited Bank’s Particulars H1FY20 H1FY21 Shareholding •Wholly owned subsidiary operating in UK Total Income 76.69 68.08 • Equity Investment – Rs. 1005.43 crores Net Profit/ (Loss) 1.23 19.85 100% Total Assets 3,287.76 3,2
Slide 53: Details of Group Entities
Details of Group Entities (Rs. in crore) Subsidiaries Corp Bank Securities Limited Bank’s Particulars H1FY20 H1FY21 Shareholding •Engaged in Institutional Equity broking Total Income 5 2 (commenced in November 2015). Net Profit/ (Loss) 3 1 •Trading of equity shares (proprietary), trading/investment
Slide 54: Details of Group Entities
Details of Group Entities (Rs. in crore) Subsidiaries Union Trustee Co. Pvt. Limited Bank’s Particulars Q2FY20 Q2FY21 Shareholding •Wholly owned subsidiary Total Income 0.10 0.10 • Equity Investment –Rs. 0.05 crore Net Profit/ (Loss) 0.01 0.01 • Act as a trustee company for Union Mutual 100% Total A
Slide 55: Details of Group Entities
Details of Group Entities (Rs. in crore) Joint Venture India First Life Insurance (IFLIC) Bank’s Particulars H1FY20 H1FY21 Shareholding • IFLIC incorporated in June 2008 . Total Income 1547 2774 • Current Shareholding - Bank of Baroda, Union Bank and Carmel Point Investment India Net Profit/ (Loss)
Slide 56: Details of Group Entities
Details of Group Entities (Rs. in crore) Joint Venture India International Bank (Malaysia) BHD Bank’s Particulars H1FY20 H1FY21 Shareholding • India International Bank Malaysia ,Berhad ( Total Income 28.44 24.60 IIBMB) located at Kuala Lumpur was Net Profit/ (Loss) 4.39 2.30 incorporated on 13.08.20
Slide 57: Disclaimer
Disclaimer Except for the historical information contained herein, statements in this presentation which contain words or phrases such as “is”, “aims”, „will‟, „would‟, „indicating‟, „expected to‟ etc., and similar expressions or variations of such expressions may constitute „forward-looking stateme
Slide 58: Investor queries
Investor queries: investor.relations@unionbankofindia.com 57
Union Bank of India — Q2 FY2020-21 Earnings Presentation on 6ix