Union Bank Of India Limited · NSE:UNIONBANK
Union Bank Of India — Q3 FY2021 Earnings Presentation
62 slides from Union Bank Of India's earnings presentation, Jan 29, 2021
Slide 1: Stock exchange cover letter on financial results presentation
Ref: 1SD/20-211269 January 29, 2021 The Deputy General Manager, The Deputy General Manager, Corporate Relationships Dept. Listing Dept. BSE Ltd. National Stock Exchange o f India Ltd. Phiroze Jeejeebhoy Towers, Exchange Plaza, Plot No.C/1, G Block Dalal Street, Bandra-Kurla Complex, Bandra (E), Mumb
Slide 2: Financial Results Q3 & 9M FY20-21
Financial Results Q3&9M- FY20-21 January 29, 2021 Please follow us on: @unionbankofindia @UnionBank Tweets UnionBankInsta UnionBankofIndiaUtube UnionBankofIndia 1
Slide 3: Table of Contents
Table of Contents 1 • Strategic & Digital Initiatives & ESG • Business Performance 2 • Financials 3 • Asset Quality & Capital 4 • Update on Amalgamation 5 • Group Entities 6 Amalgamation of erstwhile Andhra Bank and erstwhile Corporation Bank with Union Bank of India Erstwhile Andhra Bank and erstwh
Slide 4: Strategic & Digital Initiatives & ESG
Ea «9 % 2x Strategic & Digital Initiatives & ESG
Slide 5: Strategic & Digital Initiatives
Strategic & Digital Initiatives 4
Slide 6: Expanding Digital Footprints
Expanding Digital Footprints ATMs/ Debit Internet cards POS Mobile Banking Banking •Vast network of 12961 •Wide network of 3.17 Lac •With customer base of •With a customer base of 67 ATMs with 4.36 crores terminals. 106.34 Lakh, Union Bank Lakh, Internet Banking is debit card base. provides a bunch
Slide 7: Digital Channels
Digital Channels Number of Users (in lakhs) 106 % of Transactions through 75 68 alternative channels 67 Dec-19 Dec-20 78.24% Mobile Banking Internet Banking 73.78% Number of Services offered 46 41 28 21 Dec-19 Dec-20 Mar-19* Dec-20 Mobile Banking Internet Banking 6
Slide 8: Expanding Digital Footprints Value of Transactions
Expanding Digital Footprints Value of Transactions (Rs. in Billion) Credit Card UPI U Mobile 876 1726 12 382 3 253 Dec-19 Dec-20 Dec-19 Dec-20 Dec-19 Dec-20 7
Slide 9: EASE 3.0
EASE 3.0 The EASE reforms agenda is aimed at institutionalising clean and smart Banking and was launched in November 2017. EASE 1.0 was the foundation and EASE 2.0 Banking Reforms Index was based on the foundation of EASE 1.0. This enables Banks to identify the areas of improvements as well as k
Slide 10: EASE 3.0: Q2 FY21
EASE 3.0 : Q2 FY 21 Among Top 3 PSBs in three themes Theme 1: Smart Lending for Aspiring India 4th Rank Theme2: Tech-enabled ease of Banking Progress: Mar‟20 baseline 18% to Sept‟20 release Theme 5: Deepening FI and Customer Protection 9
Slide 11: Sustainability Imperative (ESG)
Sustainability Imperative (ESG) • Energy • Saving through eco-friendly • UNION PRERNA: Holistic • The Bank has put in place a lights, air conditioners and framework for integration across comprehensive whistle blower Utilization of solar PV system. PMS, talent policy to prevent unethical management,
Slide 12: Business Performance
Ea «9 % 2x BUSINESS PERFORMANCE
Slide 13: Performance Highlights – Q3FY21
Performance Highlights – Q3FY21 CASA RAM Share Total Business Total Deposits 35.38% 56.87% 1.77% YoY 2.58 % YoY (271 bps) YoY (297 bps) YoY Operating Profit Net Profit NII Rs 5311 Cr Rs.727 Cr 9.04% YoY 12.16% QoQ 40.62% QoQ GNPA Net NPA PCR CRAR 13.49% 3.27% 86.18% 12.98% (122 bps) QoQ (86 bps) QoQ
Slide 14: Business Performance - Liabilities
Business Performance - Liabilities Total Deposits (Rs. in crore) Total Deposits 2.58% 860196 868632 886098 882423 YoY 2473 3011 3649 3541 2.66% 883625 879412 864983 YOY 856655 Domestic Deposits Dec-19 Mar-20 Sep-20 Dec-20 Overseas Deposits Domestic Deposits CASA Portfolio CASA + Retail TD as % of To
Slide 15: Business Performance - Assets
Business Performance - Assets Composition of Gross Advance Dec-20 Gross Advances (Rs. in crore) 19% 647532 666117 651062 651973 0.69% YOY 45% 20696 1.09% 18% 18292 16748 YOY 19156 645421 628376 632770 635225 18% Dec-19 Mar-20 Sep-20 Dec-20 Corporate& Retail Agriculture MSME others Domestic Advances
Slide 16: Diversified Loan Portfolio - RAM
Diversified Loan Portfolio - RAM Composition of Retail Advance % RAM Advance in Domestic Advances December-2020 297 bps 19% YOY 4% 10% 54% 56.87% 6% 55.18% 7% Home Loans Vehicle Loans Education Loans 53.90% Mortgage Loans Personal Loans Others 52.57% Achievement under Priority Sector as on 31.12.202
Slide 17: COVID 19: Credit Support
COVID 19: Credit Support Union Bank of India is helping customers to tide over the liquidity crisis through various schemes (31.12.2020) Total amount S. No. of Loans Name of the Scheme sanctioned NO sanctioned (Rs.cr) 1. COVID Emergency Line of Credit (CELC) 113880 3652 2. Union COVID -19 Personal L
Slide 18: Diversified Loan Portfolio - Industry Exposure
Diversified Loan Portfolio-Industry Exposure (% Share in Domestic Advance) Sep-20 Dec-20 S No. Sectors Rs. in Crore % Share Rs. in Crore % Share 1 Infrastructure 103146 16.30 102289 16.10 2 NBFCs and HFCs 69266 10.95 67424 10.61 w/w HFCs 20148 3.18 18985 2.99 Basic Metal & 4 22626 3.58 21794 3.43 Me
Slide 19: Segment wise break up & rating of NBFC Exposure
Segment wise break up & rating of NBFC - Standard Exposure. Segment wise exposure Rating Profile of Standard NBFC Exposure Breakup Sep-20 Dec-20 14 12 11 Exposure Exposure Ratings % Share % Share (Rs in Crs) (Rs in Crs) 59 58 60 AAA 25436 39.58 25607 41.04 8 9 9 AA 25856 40.24 23899 38.31 17 21 22 A
Slide 20: Credit Rating Matrix & CIBIL Rating Profile
Credit Rating Matrix & CIBIL Rating Profile Rating Matrix… Improved rating profile of new retail loans sanctioned Rating Matrix of outstanding Corporate loans Retail CIBIL Rating Profile (>5 crore) 16% 24% 5% 16 18 22 9% 14 27% 23 22 24% 71 52% 59 56 43% Mar-20 Sep-20 Dec-20 FY-20 Apr-Dec 2020 A & A
Slide 21: Investments
Investments Global Investment (Rs. in Crore) 289203 286685 330657 331551 27 29 29 29 73 71 71 71 Dec-19 Mar-20 Sep-20 Dec-20 SLR NON SLR Total Investment Duration Particulars (Domestic) Sep-2020 Dec-2020 (Years) (Rs. in Crore) (Rs. in Crore) Sep-20 Dec-20 Available for Sale 92,737 83785 2.53 2.30 W/
Slide 22: Investments
Investments (Rs. In Crore) Composition of Domestic Investment Growth % Category Dec-19 Mar-20 Sep-20 Dec-20 Y-o-Y Q-o-Q SLR Investment 208567 200763 233196 235126 13 1 Non-SLR Investment 78665 84006 95937 94550 20 -1 Commercial Paper 4324 6144 6080 6005 39 -1 Certificate of Deposits 2725 5349 23
Slide 23: Overseas Operations
Overseas Operations (Rs. in crore) Business from Overseas Branches Overseas Branches US $ in Growth (%) billion Dec* Sep** Dec^ (Rs. in 2019 2020 2020 Y-o-Y Y-o-Y crore) (US$) (INR) 1.DIFC , Dubai Total 3.18 2.81 2.70 -15.1 -12.9 Business (22697) (20765) (19759) Total 0.49 0.33 0.41 2.Hong Kong -17.
Slide 24: Financial Inclusion
Financial Inclusion Total PMJDY Accounts Balance in PMJDY Accounts (in Lakh) (In crore) 205 200 5837 5764 5049 4557 172 174 Dec-19 Mar-20 Sep-20 Dec-20 Dec-19 Mar-20 Sep-20 Dec-20 Financial inclusion Acc- Fresh enrolments Terminal Figures (in Lakh) (in Lakh) Dec 19 Dec 20 PMJJBY 31.91 37.48 PMSBY 12
Slide 25: Progress under Government Initiatives
Progress under Government Initiatives (Rs. in crore) Total outstanding under Mudra loan: Rs.18,016 crores. Progress under Mudra Yojana (PMMY) April 20 - December 20 As on 31st December 2020 No. of Sanctioned Outstanding No. of Outstanding Category Accounts Amount Amount Accounts Amount Shishu (< 50k
Slide 26: Progress under Government Initiatives
Progress under Government Initiatives Key Highlights of performance in TReDS Key Highlights of performance under psbloansin59minutes.com (as on 31.12.2020) (as on 31.12.2020) Number of New Applications received through the Total number bill discounted till date- 16,612+ portal has crossed 20,900
Slide 27: Statement of Assets & Liabilities
Statement of Assets & Liabilities (Rs. in crore) As at As at As at As at 31.12.19* 31.03.20* 30.09.20 31.12.20 LIABILITIES Capital 3423 3423 6407 6407 Reserves and surplus 34241 30363 55941 57610 Share application 0 0 0 0 Deposits 445091 450668 886098 882423 Borrowings 36572 52486 53806 57242 Other
Slide 28: Financials
Ea «a % Zz FINANCIALS
Slide 29: Cost & Yield Ratio
Cost & Yield Ratio Parameters Dec-19 (Q3) Sep-20 (Q2) Dec-20 (Q3) 9M FY 2020 9M FY 2021 Domestic Global Domestic Global Domestic Global Domestic Global Domestic Global Cost of Deposit 5.57 5.56 4.83 4.82 4.56 4.55 5.64 5.63 4.81 4.80 Cost of Funds 4.82 4.79 4.28 4.22 4.12 4.06 4.91 4.88 4.25 4.20 Yi
Slide 30: Cost & Yield Ratio - Global (Quarterly)
Cost & Yield Ratio- Global (Quarterly) Cost of Deposit Cost of Funds Yield on Advances 5.56 5.44 8.48 4.82 4.79 4.55 4.65 8.09 4.22 7.45 4.06 7.25 Dec-19 Mar-20 Sep-20 Dec-20 Dec-19 Mar-20 Sep-20 Dec-20 Dec-19 Mar-20 Sep-20 Dec-20 (Q3) (Q4) (Q2) (Q3) (Q3) (Q4) (Q2) (Q3) (Q3) (Q4) (Q2) (Q3) Yield on
Slide 31: Movement of NIM
Movement of NIM* NIM Quarterly 3.20 3.15 2.95 2.89 2.98 2.94 2.83 2.78 Dec-19 Mar-20 Sep-20 Dec-20 Domestic Global NIM 9-Months 3.07 3.00 2.86 2.81 9M-FY20 9M-FY21 Domestic Global *NIM is calculated on AEA ( Net Basis) . 30
Slide 32: Net Interest Income
Net Interest Income (Rs. in crore) Quarterly 4.85% 6590 YOY 6285 6293 5967 Dec-19 Mar-20 Sep-20 Dec-20 9.04% 9-Months YOY 19285 17687 9M-FY20 9M-FY21 31
Slide 33: Operating Performances
Operating Performances Dec-19 Mar-20 Sep-20 Dce-20 Growth Growth Growth Parameters 9M FY20 9M FY21 (Q3) (Q4) (Q2) (Q3) (%) YoY (%) QoQ (%) 1. Interest on Advances 13004 12651 11880 11452 -11.93 -3.60 38376 35795 -6.72 2. Interest on Investments 4991 4879 5266 5161 3.41 -1.99 14533 15663 7.77 3. Othe
Slide 34: Non Interest Income
Non Interest Income Growth Growth Dec-19 Mar-20 Sep-20 Dec-20 Growth Parameters (%) (%) 9M FY20 9M FY21 (Q3) (Q4) (Q2) (Q3) (%) YoY QoQ 1. Core Fee Based Income 1359 1546 980 1321 -2.76 34.80 3913 3057 -21.88 Processing charges and LC/BG a. 462 578 202 5000 8.23 147.52 1247 920 -26.22 Commission b.
Slide 35: Operating Profit
Operating Profit Quarterly (Rs. in crore) 5827 5311 4735 3690 Dec-19 Mar-20 Sep-20 Dec-20 9- Months 14386 14079 9M-FY20 9M-FY21 34
Slide 36: Provisions
Provisions (Rs. in crore) Dec-19 Mar-20 Sep-20 Dec-20 9M 9M Parameters (Q3) (Q4) (Q2) (Q3) FY20 FY21 NPAs 3898 8526 3721 3036 12024 9208 Standard Assets -211 550 51 2227 415 2688 Depreciation on Investment 336 285 81 22 370 -104 Shifting Loss 0 0 0 0 165 124 Restructured Advances -2 -24 -5 -54 -11 3
Slide 37: Net Profit
Net Profit Quarterly (Rs. in crore) 1159 727 517 Dec-19 Mar-20 Sep-20 Dec-20 -7157 9 Months 1576 544 9M-FY20 9M-FY21 36
Slide 38: Efficiency/Profitability Ratios
Efficiency/Profitability Ratios cost to income ratio Return on Average Assets 0.45 61.82 0.28 44.95 44.71 44.11 46.00 41.45 0.19 0.19 0.07 Dec-19 Mar-20 Sep-20 Dec-20 9M-FY20 9M-FY21 -2.71 Dec-19 Mar-20 Sep-20 Dec-20 9M-FY20 9M-FY21 Dec-19 Mar-20 Sep-20 Dec-20 9M 9M S. No. Efficiency Parameters (Q3)
Slide 39: Efficiency Ratios
Efficiency Ratios (Rs. in crore) Dec-19 Mar-20 Sep-20 Dec-20 9M 9M Profitability Parameters (Q3) (Q4) (Q2) (Q3) FY 20 FY 21 Business per Branch 157.17 160.04 160.29 160.00 157.17 160.00 Business per employee 19.92 20.41 20.44 19.41 19.92 19.41 Gross Profit per Branch 2.43 1.54 1.97 2.21 2.00 1.96 Gr
Slide 40: Asset Quality & Capital
Ea «a ASSET QUALITY & CAPITAL
Slide 41: OTR & COVID Related Provisions as on 31.12.2020
OTR & COVID Related Provisions as on 31.12.2020 (Rs. in crore) Implemented Invoked/Estimated 31.03.2021 Category (31.12.2020) Implementation Expected MSME (Up to Rs.25 cr) 1406 1472 2878 Personal Loans 1866 1384 3250 Corporate 0 10598 10598 Total 3272 13454 16726 % to Gross Particulars Advances Prof
Slide 42: Asset Quality: Movement in Non Performing Assets
Asset Quality: Movement in Non Performing Assets (Rs. in crore) Parameters Dec-19 Mar-20 Sep-20 Dec-20 9M 9M (Q3) (Q4) (Q2) (Q3) FY20 FY21 Gross NPAs - Opening 100626 100432 97190 95797 98427 97193 Add : Additions 8669 4303 673 332 21396 2755 Less : Reductions 8863 7542 2066 8160 19391 11980 1. Reco
Slide 43: Asset Quality: Sectoral
Asset Quality: Sectoral (Rs. in crore) Slippages Sectoral NPA % NPAs Dec Sectors During Q3 2020 FY 21 Dec-19 Sep-20 Dec-20 Retail Loans 21 3293 3.44 3.05 3.04 Agriculture 12 10112 10.06 9.60 8.71 MSME 33 15191 17.20 17.57 15.67 Large Corporate & others 266 59372 21.13 19.99 18.50 Total 332 87968 15.
Slide 44: Status of NCLT Accounts
Status of NCLT Accounts RBI List 1 O/s Rs. 9,073 Cr (A/c) No. of Outstanding Particulars Accounts (Rs. In Crs) RBI List 2 O/s Rs.9,233 Cr (A/c) 515* 62956 Total Accounts admitted by NCLT w/w Others- Admitted Accounts where Resolution plan 105 16618 Rs.52,706 Cr (A/c) approved by CoC w/w Total Accoun
Slide 45: Basel III: Capital Adequacy & Ratings
Basel III : Capital Adequacy & Ratings Capital Adequacy 01.04.2020 Sep-20 Dec-20 Parameter % to % to Amt. Amt. Amt. % to RWA RWA RWA 1 Tier I 53036 9.74 54760 10.05 55904 10.47 2.33 2.51 2.27 1.14 1.25 1.14 Common Equity I 46836 8.60 48560 8.91 49204 9.22 Additional Tier I 6200 1.14 6200 1.14 6700 1
Slide 46: Shareholding Pattern
Shareholding Pattern December-2020 Particulars As on 31.12.2020 1% 6% 4% Share Capital Rs.6,407 crore No. of Equity Shares Rs.640.68 crore Net Worth Rs.42,950 crore Promoters Holding (%) 89.07% Market Cap* Rs.20,214 crore 89% * Closing Price taken from NSE as of 31st December 2020 (31.55). Govt. of
Slide 47: Update on Amalgamation
Ea «9 % 2x UPDATE ON AMALGAMATION
Slide 48: 3 Banks have come together
Amalgamation Update 96 Years On 01st April 2020 3 Banks have come together….. Where India Banks 9500+ Branches Year: 1923 13000+ ATMs 100 Years 8.5+ Tn Deposits Good people to Bank with 5.5+ Tn Advances Year:1919 114 Years 120+ Mn Customers 77,000+ Employees Prosperity for All Year: 1906
Slide 49: Amalgamation Update – Features
Amalgamation Update – Features Geographical spread MSME business Financial Inclusion Credit centralization Branch network share MSME market Total BC points 75% credit processing >5% in 15 states share>15% in 10 > 1100 centralized states Rural & Semi Urban Large corporate Risk management Analytics cr
Slide 50: Organization Structure
Organization Structure Organisation Design: Revamped Tier Structure & CPCs Corporate Office Zonal Offices (18) Regional Offices (125) Branches (9587) No. of Units No. of Units No. of Units Particulars Sectors covered (Dec-19) (Sep-20) (Dec-20) ULP 75 121 129 Retail (Housing and Mortgage Loan) USK 52
Slide 51: Organization Structure & New Initiatives
Organization Structure & New Initiatives Organization structure for Central Office and Field has been rolled out along with Centralised Processing Centres ( CPCs) and specialized branches Training on KRAs, operating model, processes etc to employees of all verticals has been completed Cultural Integ
Slide 52: Amalgamation Update - Key Synergy Benefits
Amalgamation Update - Key Synergy Benefits Initiative Aspiration Progress 437 identified Branch 750 130 approved Network Rs 375.00 Crore 76 Colocation commenced ATM 600 ATMs 158 Closed rationalization IT Cost Rs 240 Crore Cost avoidance of Rs 167 Crore 40+ cost synergy initiatives are being Other Co
Slide 53: Amalgamation Update – Completion Status
Amalgamation Update – Completion Status Key Milestones Achieved on Day 0 Seamless IT Integration in with minimal disruptions Record Time Harmonized products and policies Both Banks branches migrated to Harmonized charges & interest rates Union Bank network as on 25.01.2021 Harmonized Risk rating fra
Slide 54: Group Entities
Ea «a GROUP ENTITIES
Slide 55: 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 56: Details of Group Entities
Details of Group Entities (Rs. in crore) Subsidiaries Union Bank of India (UK) Limited Bank’s Particulars 9MFY20 9MFY21 Shareholding •Wholly owned subsidiary operating in UK Total Income 108.04 87.60 • Equity Investment – Rs. 1005.43 crores Net Profit/ (Loss) (27.16) 0.40 100% Total Assets 3409.73 3
Slide 57: Details of Group Entities
Details of Group Entities (Rs. in crore) Subsidiaries Corp Bank Securities Limited Bank’s Particulars 9MFY20 9MFY21 Shareholding • Engaged in Institutional Equity broking (commenced in November 2015). Total Income 7.69 2.49 • Trading of equity shares (proprietary), Net Profit/ (Loss) 3.61 1.28 tradi
Slide 58: Details of Group Entities
Details of Group Entities (Rs. in crore) Subsidiaries Union Trustee Co. Pvt. Limited Bank’s Particulars 9MFY20 9MFY21 Shareholding •Wholly owned subsidiary Total Income 0.15 0.15 • Equity Investment –Rs. 0.05 crore Net Profit/ (Loss) (0.01) (0.02) • Act as a trustee company for Union Mutual Fund 100
Slide 59: Details of Group Entities
Details of Group Entities (Rs. in crore) Joint Venture India First Life Insurance (IFLIC) Bank’s Particulars 9MFY20 9MFY21 Shareholding • IFLIC incorporated in June 2008 . Total Income 2229.98 2698.58 • Current Shareholding - Bank of Baroda, Union Bank and Carmel Point Investment India Pvt Ltd Net P
Slide 60: Details of Group Entities
Details of Group Entities (Rs. in crore) Joint Venture India International Bank (Malaysia) BHD Bank’s Particulars 9MFY20 9MFY21 Shareholding • India International Bank Malaysia ,Berhad ( Total Income 29.08 24.00 IIBMB) located at Kuala Lumpur was incorporated on 13.08.2010 as a JV of E- Net Profit/
Slide 61: 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 62: Investor queries
Please provide your valuable feedback@ icmt.unionbankofindia.co.in/investor _ feedback Investor queries: investor.relations@unionbankofindia.com 61
Union Bank of India — Q3 FY2021 Earnings Presentation on 6ix