Union Bank Of India Limited · NSE:UNIONBANK
Union Bank Of India — Q1 FY22 Earnings Presentation
58 slides from Union Bank Of India's earnings presentation, Jul 29, 2021
Slide 1: Stock exchange filing cover letter
blniofi Bank of Srrd~a Ref: ISDl21-221163 July 29, 2021 The Deputy General Manager, TheDeputy General Manager, Corporate Relationships Dept. Listing Dept. BSE Ltd. National Stock Exchange of lndia Ltd. PhirozeJeejeebhoy Towers, Exchange Plaza, Plot No.C/I, G Block Dalal Street, Bandra-Kurla Complex,
Slide 2: Financial Results Q1FY22
Financial Results Q1FY22 29th July, 2021 Please follow us on: @unionbankofindia @UnionBank Tweets UnionBankInsta UnionBankofIndiaUtube UnionBankofIndia 1 1
Slide 3: Union Bank: Network & Group Entities
Union Bank: Network & Group Entities 9300+ Branches 11800+ ATMs 5 Subsidiaries Sales & UBI Services Ltd Marketing Union Asset Management Co Pvt Ltd Mutual Fund Union Trustee Co Pvt Ltd Banking Union Bank of India (UK) Limited Financial Services Andhra Bank Financial Services Ltd 4 Joint Ventures Ban
Slide 4: Union Bank: Sustained Improvement
Union Bank : Sustained Improvement GNPA(%) NNPA(%) NNPA to Net Worth(%) 6.9 15.0 14.6 107.42 13.7 5.2 13.6 4.6 4.7 80.82 62.7 58.04 Mar-19 Mar-20 Mar-21 Jun-21 Mar-19 Mar-20 Mar-21 Jun-21 Mar-19 Mar-20 Mar-21 Jun-21 PCR(%) Credit Cost(%) Cost To Income Ratio(%) 3.58 81.27 81.43 3.15 48.8 48.95 78.21
Slide 5: Table of Contents
Table of Contents 1 Business Performance 5-20 2 Financials 21-32 3 Asset Quality and Capital 33-40 4 Digitization Journey & ESG 41-48 5 Group Entities 49-55 4
Slide 6: Business Performance
Business Performance
Slide 7: Performance Highlights – Q1FY22
Performance Highlights – Q1FY22 309 0.71% 1.79% Total Business YoY Total Deposit YoY CASA Share bps YoY 451 30 Net Interest 9.53% NIM bps RAM Share bps YoY Income YoY YoY 135 156 170 GNPA bps PCR bps CRAR bps YoY YoY YoY 137 254.9 CET-1 bps Operating Profit 31.5% Net Profit % YoY Rs. 5303 Crores YoY
Slide 8: Business Performance - Liabilities
Business Performance - Liabilities ₹ in crore Total Deposits Total 1.79% 8,92,542 9,23,805 9,08,528 (YoY) 2,178 1,461 2,394 8,90,148 9,21,627 9,07,067 Jun-20 Mar-21 Jun-21 Domestic Deposits Overseas Deposits CASA Portfolio CASA+ Retail TD as a% of Total Domestic 33.30 36.33 36.39 Deposits as of Jun-
Slide 9: Business Performance - Assets
Business Performance - Assets ₹ in crore Gross Advances 6,50,127 6,53,684 6,45,091 20,885 16,012 14,854 6,29,242 6,37,672 6,30,237 Jun-20 Mar-21 Jun-21 Domestic Advances Overseas Advances Dom Advances and CP & Corp Bonds ₹ in crore Jun-20 Mar-21 Jun-21 Domestic Adv 6,29,242 6,37,672 6,30,237 CP & Co
Slide 10: Business Performance - Assets
Business Performance - Assets RAM Advances (%) in ₹ in crore Domestic Advances Retail 451 bps 10.61% (YoY) YoY 56.27% 56.08% 1,25,427 1,25,445 51.57% 1,13,414 Jun-20 Mar-21 Jun-21 Jun-20 Mar-21 Jun-21 *Retail, Agriculture and MSME collectively called as “RAM sector” Agriculture MSME* 12.69% 3.33% 1,
Slide 11: Diversified Loan Portfolio - RAM
Diversified Loan Portfolio - RAM Composition of Retail Advances (%) Achievement under Priority Sector as on Jun-2021 as on Jun-2021 RBI 20.3 Achieved Norms Particulars (as % of 4.2 (as % of ANBC) ANBC) 52.8 9.4 5.6 7.7 Agriculture 18% 18.6% Small and Marginal 9% 11.8% Farmers Home Loans Vehicle Loan
Slide 12: Progress under Mudra Loans
Progress under Mudra Loans ₹ in crore Progress under Mudra Yojana (PMMY) As on 30th June April 21 - June 21 2021 Sanctioned Outstanding Outstanding No. of Amount Amount Amount Category Accounts (Rs. in crore) (Rs. in crore) (Rs. in crore) Shishu (< 50k) 47,051 87 51 1,049 Kishor (Above 50k-5 Lacs) 4
Slide 13: COVID Relief Schemes
COVID Relief Schemes Helping customers to tide over the liquidity crisis through various schemes (as on 30.06.2021) ₹ in crore PM SVANidhi 1 No of Loans – 2,87,506 Amount Sanctioned - 287 Union Guaranteed Emergency Credit Line (UGECL 1.0) 2 No of Loans – 3,72,709 Amount Sanctioned – 8,370 Union Guar
Slide 14: Diversified Loan Portfolio-Industry Exposure
Diversified Loan Portfolio-Industry Exposure ₹ in crore (% Share in Domestic Advances) Jun-20 Jun-21 S No. Sectors Rs. in Crore % Share Rs. in Crore % Share 1 Infrastructure 1,06,326 16.90 1,05,214 16.69 2 NBFCs and HFCs 68,477 10.88 66,426 10.54 w/w HFCs 21,732 3.45 20,903 3.32 Basic Metal & 3 22,3
Slide 15: Rating Profile of Standard NBFC Exposure
Segment wise break up & rating of NBFC - Standard Exposure Segment wise exposure Rating Profile of Standard NBFC Exposure Breakup % Share Ratings 8 7 7 Jun-20 Mar-21 Jun-21 54 52 59 AAA 44.04 50.11 50.15 11 10 12 28 31 AA 38.02 34.77 32.02 21 Jun-20 Mar-21 Jun-21 A 12.20 13.70 12.47 Pvt others BBB 5
Slide 16: Credit Rating Matrix & CIBIL Rating Profile
Credit Rating Matrix & CIBIL Rating Profile Post Centralization of Credit underwriting- Improved Rating Profile Rating Matrix of Outstanding Corporate Loans Rating Matrix for Retail CIBIL rating Profile (> 5 Crore) fresh Sanctions (> 25 Crore) 18 52 50 58 23 65 68 80 15 28 29 59 18 17 5 4 26 17 17 1
Slide 17: Investments
Investments ₹ in crore % of SLR and Non SLR in Domestic Investments 3,31,132 3,36,184 3,43,505 30.1 28.5 27.5 69.9 71.5 72.5 Jun-20 Mar-21 Jun-21 SLR Non SLR Domestic Investments Particulars (Domestic) Jun-20 Mar-21 Jun-21 Jun-20 Mar-21 Jun-21 ₹ in crore Duration (Years) Available for Sale 1,05,111
Slide 18: Investments
Investments ₹ in crore Composition of Domestic Investments Category Jun-20 Mar-21 Jun-21 SLR Investments 2,31,400 2,40,298 2,48,985 Non-SLR Investments 99,732 95,885 94,520 Commercial Paper 8,648 6,715 6,896 Certificate of Deposits 4,733 2,884 2,625 Mutual Funds 436 746 373 Shares 5,741 5,10
Slide 19: Overseas Operations
Overseas Operations Business from Overseas Branches Overseas Branches US $ in billion Jun* Mar^ Jun^^ (₹ in crore) 2020 2021 2021 1.DIFC , Dubai 3.08 2.48 2.19 Total Business (23,277) (18,190) (16,317) 0.3 0.29 0.20 2.Hong Kong Total Deposits (2,393) (2,178) (1,462) 2.76 2.19 2.00 Total Advances (20
Slide 20: Financial Inclusion
Financial Inclusion Total PMJDY Accounts Balance in PMJDY Acc (Rs.In crore) (No. in Lakhs) 221 6,597 217 6,465 190 5,767 Jun-20 Mar-21 Jun-21 Jun-20 Mar-21 Jun-21 Finacial inclusion Acc- Fresh enrolments (in Lakhs) Terminal Figures (No. in Lakh) Scheme Jun-20 Jun-21 PMJJBY 33.12 42.15 PMSBY 133.12 1
Slide 21: Statement of Assets & Liabilities-Standalone
Statement of Assets & Liabilities-Standalone ₹ in crore Particulars As at 30.06.20 As at 31.03.21 As at 30.06.21 LIABILITIES Capital 6,407 6,407 6,835 Reserves and surplus 54,751 58,070 60,827 Deposits 8,92,542 9,23,805 9,08,528 Borrowings 93,929 51,837 51,942 Other Liabilities and Provisions 28,017
Slide 22: Financials
Financials
Slide 23: Cost & Yield Ratio (%)
Cost & Yield Ratio (%) Parameters Jun-20 (Q1) Mar-21 (Q4) Jun-21 (Q1) Domestic Global Domestic Global Domestic Global Cost of Deposit 5.04 5.03 4.28 4.27 4.18 4.17 Cost of Funds 4.35 4.31 3.80 3.74 3.77 3.71 Yield on Advances 8.06 7.87 6.35 6.24 7.39 7.26 Yield on Investment 6.51 6.49 5.92 5.90 5.95
Slide 24: Cost & Yield Ratio- Global (%) (Quarterly)
Cost & Yield Ratio- Global (%) (Quarterly) Cost of Deposit Cost of Funds Yield on Advances 5.03 4.31 7.87 7.26 4.27 3.74 3.71 4.17 6.24 Jun-20 Mar-21 Jun-21 Jun-20 Mar-21 Jun-21 Jun-20 Mar-21 Jun-21 Yield on Investment Yield on Funds Net Interest Margin 6.49 6.60 3.08 6.29 5.90 5.93 5.75 2.78 2.38 J
Slide 25: Movement of NIM (%)
Movement of NIM (%) Quarterly 3.11 3.08 2.83 2.78 2.40 2.38 Jun-20 Mar-21 Jun-21 Domestic Global 24
Slide 26: Net Interest Income
Net Interest Income ₹ in crore Net Interest Income 9.53 % YoY 7013 6403 5403 Jun-20 Mar-21 Jun-21 25
Slide 27: Operating Performance
Operating Performance ₹ in crore Jun-20 Mar-21 Jun-21 Growth (%) Growth (%) Parameters (Q1) (Q4) (Q1) YoY QoQ 1. Interest on Advances 12,463 9,970 11,346 -8.96 13.80 2. Interest on Investments 5,236 4,911 5,100 -2.60 3.85 3. Other Interest Income 730 594 689 -5.69 15.94 4. Total Interest Income (1+2
Slide 28: Non Interest Income
Non Interest Income ₹ in crore Jun-20 Mar-21 Jun-21 Growth (%) Growth (%) Parameters (Q1) (Q4) (Q1) YoY QoQ 1. Core Fee Based Income 754 1,522 1,064 41.08 -30.11 w/w a. Processing charges 136 309 218 81.60 -91.59 on Advances b. Comm. On Insurance Business 21 70 34 61.90 -51.43 C. Comm. On Govt Busin
Slide 29: Operating Profit
Operating Profit ₹ in crore Quarterly 31.45% YoY 5303 5180 4034 Jun-20 Mar-21 Jun-21 28
Slide 30: Provisions
Provisions ₹ in crore Jun-20 Mar-21 Jun-21 Parameters (Q1) (Q4) (Q1) NPAs 2,451 4,712 2,492 Standard Assets 410 -1,443 1,096 Depreciation on Investment -208 539 -205 Shifting Loss 124 0 129 Restructured Advances 86 50 -19 FITL (Std) 3 23 -13 Deferred Tax Liability 146 -610 534 Frauds-Non Credit 1 -4
Slide 31: Net Profit
Net Profit ₹ in crore Quarterly 254.93% YoY 1330 1181 333 Jun-20 Mar-21 Jun-21 30
Slide 32: Efficiency/Profitability Ratios (%)
Efficiency/Profitability Ratios (%) Return on Average Assets Cost to Income Ratio 0.49 48.71 0.43 47.96 46.51 0.12 Jun-20 Mar-21 Jun-21 Jun-20 Mar-21 Jun-21 Jun-20 Mar-21 Jun-21 S. No. Efficiency Parameters (Q1) (Q4) (Q1) 1 Return on Equity* (%) 3.30 12.23 9.99 2 Book Value Per Share 62.97 67.91 69.
Slide 33: Efficiency Ratios
Efficiency Ratios ₹ in crore Jun-20 Mar-21 Jun-21 Profitability Parameters (Q1) (Q4) (Q1) Business per Branch 160.86 169.35 166.79 Business per employee 20.28 20.17 20.15 Gross Profit per Branch 1.68 2.22 2.28 Gross Profit per Employee 0.21 0.26 0.28 32
Slide 34: Asset Quality & Capital
Asset Quality & Capital
Slide 35: OTR under COVID Resolution Framework as on 30.06.2021
OTR under COVID Resolution Framework as on 30.06.2021 ₹ in crore Resolution Framework 1.0 Resolution Framework 2.0 Implemented Implemented Category Category (30.06.2021) (30.06.2021) MSME (Up to Rs.25 cr) 2,427 MSME (Up to Rs.25 cr) 536 Personal Loans 3,702 Personal Loans 3,131 Corporate Loans 5,836
Slide 36: Asset Quality: Movement in Non Performing Assets
Asset Quality: Movement in Non Performing Assets ₹ in crore Parameters Jun-20 Mar-21 Jun-21 (Q1) (Q4) (Q1) Gross NPAs - Opening 97,193 87,968 89,788 Add : Additions 1,750 14,688 7,049 Less : Reductions 1,753 12,869 9,075 1. Recoveries 751 1,668 1,147 2. Up-gradation 755 374 3,194 3. Write Off 248 10
Slide 37: Asset Quality: Sectoral
Asset Quality: Sectoral ₹ in crore Sectoral NPA % O/s NPA Slippages During Sectors as on Q1 FY 22 Jun 2021 Jun-20 Mar-21 Jun-21 Retail Loans 1,078 6,276 4.46 4.46 5.00 Agriculture 1,406 15,500 10.59 12.07 13.04 MSME 3,139 23,114 18.45 19.43 21.17 Large Corporate & Others 1,426 42,872 18.37 16.18 14.
Slide 38: Status of NCLT Accounts
Status of NCLT Accounts RBI List 1 O/s RBI List 2 O/s Others- Admitted Total ₹ 5,903 Cr (7 A/c) ₹ 7,404 Cr (16 A/c) ₹ 46,315 Cr (436 A/c) ₹ 59,622 Cr (459 A/c) PCR on NCLT accounts 100% 99.32% 97.23% 97.76% RBI List 1 RBI List 2 Others Total (admitted) 37
Slide 39: Basel III : Capital Adequacy
Basel III : Capital Adequacy ₹ in crore Jun-20 Mar-21 Jun-21 Capital Adequacy Parameter Amt. % to RWA Amt. % to RWA Amt. % to RWA 11.62 12.56 13.32 1 Tier I 53,898 9.48 57,091 10.35 59,837 11.09 2.23 2.21 2.14 1.32 Common Equity I 47,723 8.40 50,001 9.07 52,732 9.77 1.29 1.08 Additional Tier I 6,175
Slide 40: Basel III : Ratings & Capital Raising
Basel III : Ratings & Capital Raising Basel III Capital raised during Q1FY22 Rating Agency Tier I Tier II AA-/ Stable AA+/ Stable Basel III Compliant Tier II Bonds CRISIL Ratings for ₹ 850 crores. AA-/ Negative AA+/ Negative CARE Ratings AA/ Negative AA+/ Stable Brickwork Ratings Basel III Compliant
Slide 41: Shareholding Pattern
Shareholding Pattern Particulars As on 30.06.2021 Shareholding Pattern (%) as on 30.06.21 Share Capital ₹ 6,835 crore No. of Equity Shares 683.47 crore Promoters Holding (%) 83.5% 8.0 6.8 1.7 Market Cap ₹ 26,348 crore* Net worth (30.06.2021) Rs in Crs 83.5 1.1 Share Capital 6,835 1.2 Reserve & Surpl
Slide 42: Digitization Journey Project SAMARTH 2.0 & ESG
Digitization Journey Project SAMARTH 2.0 & ESG
Slide 43: Project SAMARTH 2.0
Project SAMARTH 2.0 The Bank has initiated post-amalgamation transformation journey with focus on increased digitization Launch of Samarth 2.0 project Set up of dedicated Digitization vertical Post-amalgamation digitization project 42
Slide 44: Aspirations under SAMARTH 2.0 for next 2-3 years
Project SAMARTH 2.0 Aspirations under SAMARTH 2.0 for next 2-3 years Long term synergies Revamped CAPS, POS, Customer journey and digital channels Digitized back- New digital, digitization Credit Cards business office sales-oriented & revamp models MSME branches • Aspiring for 50% of new • Increase
Slide 45: Digital Footprints
Digital Footprints (No. in Lakhs) Debit Card Users Mobile Banking Users 449 121.9 130.4 446 87.7 427 Jun-20 Mar-21 Jun-21 Jun-20 Mar-21 Jun-21 Net Banking Users(Retail) Alternative Channels Txn % 64.7 79.1 63.8 77.1 59.7 71.6 Jun-20 Mar-21 Jun-21 Jun-20 Mar-21 Jun-21 44
Slide 46: Digital Footprints: Value of Transactions
Digital Footprints Value of Transactions Debit Card UPI ( Rs. In Billion) 113.7% 237.9% (YoY) (YoY) 519 838 436 661 392 129 Jun-20 Mar-21 Jun-21 Jun-20 Mar-21 Jun-21 45
Slide 47: Expanding Digital Footprints
Expanding Digital Footprints MSME STP up to 5 Crore H/L Top-up Loans during Q1FY22 MSME Straight Through Process No. of accounts- 241 Sanctioned Amount – ₹ 38.16 Crore No of Accounts - 4265 Cumulative Position Sanctioned Amount –₹ 4,098 Crore No. of accounts- 945 Sanctioned Amount – ₹ 192.00 Crore S
Slide 48: TReDS & PSB59
TReDS & PSB59 Key Highlights of performance in TReDS Key Highlights of performance under psbloansin59minutes.com (as on 30.06.2021) (as on 30.06.2021) Number – 27,426 No. of Applications 39,805 Bills discounted Amount – ₹ 3,325 cr Sanctioned ₹ 5,427 cr Interest income earned – ₹ 56 cr Disbursed ₹ 4,
Slide 49: Sustainability Imperative: Environment, Social & Governance (ESG)
Sustainability Imperative: Environment, Social & Governance (ESG) IDP Program: Individual Development Plan, a Employee Skill Development crucial part of Leadership Development Programme Job Families – aimed at developing skills of employees in a driven by Union Prerna. particular area and creati
Slide 50: Group Entities
Group Entities
Slide 51: Union Bank of India – Group Entities
Union Bank of India – Group Entities Union Bank of India Star Union Dai-ichi (UK) Limited Life Insurance Co Ltd Union Asset India First Life Management Co P Ltd Insurance Union Bank UBI Services Ltd ASREC India Limited of India Andhra Bank India International Financial Services Ltd Bank (Malaysia) B
Slide 52: Performance of Group Entities
Performance of Group Entities ₹ in crore Subsidiaries Union Bank of India (UK) Limited Bank’s Particulars Q1FY21 Q1FY22 Shareholding • Wholly owned subsidiary operating in UK Total Income 42.95 22.39 • Equity Investment – Rs. 1111 crores* Net Profit/ (Loss) (1.12) (8.60) 100% Total Assets 3359.62 32
Slide 53: Performance of Group Entities
Performance of Group Entities ₹ in crore Subsidiaries UBI Services Ltd. Bank’s Particulars Q1FY21 Q1FY22 Shareholding Engaged in Institutional Equity broking (commenced in November 2015). Total Income 0.77 0.71 Trading of equity shares Net Profit/ (Loss) 0.39 0.24 (proprietary), trading/investme
Slide 54: Performance of Group Entities
Performance of Group Entities ₹ in crore Subsidiaries Union Trustee Co. Pvt. Limited Bank’s Particulars Q1FY21 Q1FY22 Shareholding • Wholly owned subsidiary Total Income 0.05 0.13 • Equity Investment –Rs. 0.05 crore Net Profit/ (Loss) (0.01) 0.04 100% Total Assets • Act as a trustee company for Unio
Slide 55: Performance of Group Entities
Performance of Group Entities ₹ in crore Joint Ventures India First Life Insurance (IFLIC) Bank’s Particulars Q1FY21 Q1FY22 Shareholding • IFLIC incorporated in June 2008 . Total Income 564.29 834.10 • Current Shareholding - Bank of Baroda, Union Bank and Carmel Point Investment India Pvt Ltd Net Pr
Slide 56: Performance of Group Entities
Performance of Group Entities ₹ in crore Joint Ventures India International Bank (Malaysia) BHD Bank’s Particulars Q1FY21 Q1FY22 Shareholding • India International Bank Malaysia, Berhad Total Income 8.05 4.80 (IIBMB) located at Kuala Lumpur was incorporated on 13.08.2010 as a JV of Net Profit/ (Loss
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 feedback and queries
Please provide your valuable feedback@ icmt.unionbankofindia.co.in/investor _ feedback Investor queries: investor.relations@unionbankofindia.com 57