Union Bank Of India Limited · NSE:UNIONBANK
Union Bank Of India — Investor Presentation (March 2021)
29 slides from Union Bank Of India's investor presentation, March 2021
Slide 1: Corporate Presentation March 2021
Corporate Presentation March 2021
Slide 2: Disclaimer (1/2)
Disclaimer (1/2) By attending the meeting/telephonic call where this presentation is made, you agree to be bound by the trailing restrictions regarding the information disclosed in this presentation. This presentation has been prepared for general information purposes in respect of Union Bank of Ind
Slide 3: Disclaimer (2/2)
Disclaimer (2/2) This presentation does not constitute or form part of and should not be construed as, directly or indirectly, any advertisement, offer or an invitation or inducement to sell or issue, or any solicitation of any offer to purchase or subscribe for, any securities of the Bank by any pe
Slide 4: Core Strengths Of The Bank
Core Strengths Of The Bank Strong And Trusted Brand With Large And Growing Customer Base Diversified Asset Portfolio With A Focus on RAM Low-cost Deposit Base Resulting In Strong Funding Franchise Strong, Technology-enabled Operating Platform And Committed To Digital Banking Extensive Distribution N
Slide 5: Executive Summary
Executive Summary Trusted Large Bank With Global Presence Pan India Reach Supporting Overall Business • 4th largest PSU bank# with branch network of • Total business$ grew to INR 15,34,396 cr, growth of 9,587 and 12,961 ATMs 1.77% YoY • Serves over 120mn customers with 79,000+ • Strong liability fra
Slide 6: 4th Largest PSU Bank
4th Largest PSU Bank# Gross Advances1 INR 6,51,973 cr • Branch network share >5% in 15 States 4th Largest PSU • MSME advances market share >15% in Total Assets1 INR 10,33,346 cr Total Deposits1 Bank# 10 States INR 8,82,423 cr • 75% of Credit Processing is centralized CASA1 35.38% Offers a complete a
Slide 7: Steps Taken On Various Fronts For Shareholder Value Creation
Steps Taken On Various Fronts For Shareholder Value Creation Adoption of better practices in business Merger synergies to result in improvement in Continued Investment in Technology operations ROA and ROE • Technology enhancement is an ongoing • Adopted better practices for cost efficiency • Diversi
Slide 8: Strong Liability Franchise
Strong Liability Franchise Strong Deposit Base (Fig in INR cr) CASA growing steadily (Fig in INR cr) 34.15% 32.67% 35.38% 296,598 281,021 312,213 868,632 860,196 882,423 242,109 230,658 258,525 54,489 50,363 53,688 Mar-20 Dec-19 Dec-20 Mar-20 Dec-19 Dec-20 Current Deposits Savings Deposits CASA % CA
Slide 9: Well Diversified Loan Portfolio
Well Diversified Loan Portfolio Healthy Mix Of Overall Portfolio Tilted Towards Steady Growth In Gross Advances (Fig in INR cr) Retail, Corporate Share Coming Down 666,117 651,973 18% 18% 19% 647,532 16% 17% 18% RAM share 55% 17% 17% 18% 49% 48% 45% Mar-20 Dec-19 Dec-20 Mar-20 Dec-19 Dec-20 Corporat
Slide 10: Cost & Yield Ratio – Global (Quarterly)
Cost & Yield Ratio – Global (Quarterly) Cost of Deposits Cost of Funds Yield on Advances 4.79 8.48 5.44 5.56 4.65 8.09 4.06 7.25 4.55 Mar-20 Dec-19 Dec-20 Mar-20 Dec-19 Dec-20 Mar-20 Dec-19 Dec-20 Yield on Investments Yield on Funds Net Interest Margin 7.20 6.92 6.91 3.15 6.72 6.61 2.89 2.94 6.25 Ma
Slide 11: Profit and Loss Statement
Profit and Loss Statement Fig. in INR cr Profit and Loss FY20# 9M FY20# 9M FY21 Interest Earned 73,186 54,945 53,292 Interest Expended 49,532 37,258 34,007 Net Interest Income 23,654 17,687 19,285 Other Income 11,753 8,056 6,786 Operating Income 35,407 25,743 26,071 Operating Expenses 17,331 11,357
Slide 12: Financial Metrics
Financial Metrics (Fig in INR cr) Net Interest Income and Net Interest Other Income Margin % NIM (%) 2.97% 3.00% 2.81% 11,753 8,056 6,786 23,654 17,687 19,285 Mar-20 Dec-19 Dec-20 Mar-20 Dec-19 Dec-20 (12m) (9m) (9m) (12m) (9m) (9m) Net Interest Income Operating Profit & Profit After Tax Return on A
Slide 13: Balance Sheet
Balance Sheet Fig. in cr Balance Sheet 31.03.2020# 31.12.2019# 31.12.2020 Cash And Balances With Reserve Bank Of India 43,592 47,653 31,928 Balances With Banks And Money At Call And Short Notice 39,634 23,215 32,391 Investments 280,178 284,086 325,197 Advances 600,190 584,951 582,895 Fixed Assets 7,
Slide 14: Financial Inclusion – Priority Sector Lending
Financial Inclusion – Priority Sector Lending Total No. of Pradhan Mantri Jan-Dhan Financial Inclusion& Micro Insurance A/C s (In Yojana Accounts (in Lakhs) lakhs) 205 140.9 129.2 172 174 31.9 37.5 17.1 19.6 Pradhan Mantri Jeevan Pradhan Mantri Suraksha Atal Pension Yojana Dec-19 Mar-20 Dec-20 Jyoti
Slide 15: Subsidiaries, Associates & JVs
Subsidiaries, Associates & JVs International Domestic 100% 25% 100% 100% 100% 100% 25.10% 30% 26.02% 35% Union Bank of India Union Asset UBI Services Andhra Bank Union Trustee Star Union Dai- India First Life ASREC Limited Chaitanya India (UK) International Management Limited Financial Co. Pvt. Ltd
Slide 16: Asset Quality
Asset Quality Gross Non Performing Assets Net Non Performing Assets Provision Coverage Ratio % 6.48% 15.51% 86.18% 5.22% 78.21% 73.91% 78.33% 14.59% 67.79% 62.27% 3.27% 13.49% Mar-20 Dec-19 Dec-20 Mar-20 Dec-19 Dec-20 Mar-20 Dec-19 Dec-20 PCR % Tangible PCR % Segment Wise GNPA Status of NCLT Account
Slide 17: Asset Quality: Movement in Non Performing Assets
Asset Quality: Movement in Non Performing Assets Parameters (Rs cr) 9M 9M FY20* FY21 Gross NPAs - Opening 98,427 97,193 Add : Additions 21,396 2,755 Less : Reductions 19,391 11,980 1. Recoveries 5,174 3,523 2. Up-gradation 2,618 2,301 3. Write Off 11,598 6,156 Gross NPAs- Closing 100,432 87,968 Gros
Slide 18: Well Diversified Loan Portfolio – Industry Exposure
Well Diversified Loan Portfolio – Industry Exposure (% Share in Standard Domestic Advances) Corporate loans rating (> 5cr) Dec-20 Industry Dec-20 22.0% Fig in INR cr % Share 11 Infrastructure 87,273 15.9% 56.0% 22.0% 22 NBFCs and HFCs 62,779 11.5% w/o HFCs 17,724 3.2% A & Above BBB BB & Below Basic
Slide 19: Composition of Investments
Composition of Investments Rating-wise distribution of investments (excluding exemptions*) in Bonds and Debentures as on Composition of Investments 31.12.2020 Particulars Dec-19 Dec-20 External Rating Amount (Rs in Crs) % Total Global Investments 289,203 331,551 1 AAA 19,488 57.9% Total Domestic Inv
Slide 20: Stressed Assets
Stressed Assets Implemented Category (Fig in INR cr) (31.12.2020) MSME (Up to Rs.25 cr) 1,406 Personal Loans 1,866 Corporate 0 Total 3,272 Particulars % to Gross Advances Proforma slippages 1.8 One Time Restructure (OTR) 0.5 SMA -2 (Rs.5 Cr & Above) 0.8 Total 3.1 20
Slide 21: Basel III : Capital Adequacy & Ratings
Basel III : Capital Adequacy & Ratings (Fig in INR Cr) Capital Adequacy Dec-20 Parameter 12.98% (Fig in Rs Crores) Amt. % to RWA 2.51% Tier I 55,904 10.47 1.25% CET I 49,204 9.22 AT I 6,700 1.25 9.22% Tier II 13,367 2.51 Total Capital (Tier I+II) 69,271 12.98 Dec-20 CET I AT 1 Tier 2 Credit Rating o
Slide 22: Shareholding Pattern
Shareholding Pattern* Sr. No. Category % Shareholding A. Promoter's Holding (GOI) 89.07 B. Non Promoter's Holding 1 Institutional Investors a) Mutual Funds/UTI 0.96 b) Financial Institutions / Banks 0.10 c) Central Government/State Government(s) 0.00 d) Insurance Companies 3.53 e) Foreign Institutio
Slide 23: Digital Initiatives
Digital Initiatives Digital Lending Digital Loan Analytics Center of (STP) Origination Excellence (ACoE) • Pre-approved Personal Loan (end- • Loan Origination through Multiple • ACoE Set-up in progress with in- to-end through Mobile App) Channels – Missed Call, SMS, Call house capabilities Center, M
Slide 24: Digital Channels & Footprints
Digital Channels & Footprints Number of Users (in Number of Services % of Transactions through alternative channels lakhs) offered 106 46 78.24% 75 68 67 42 41 73.78% 39 Dec-19 Dec-20 Dec-19 Dec-20 Dec-19 Dec-20 (9m) (9m) Mobile Banking Internet Banking Mobile Banking Internet Banking Value of Trans
Slide 25: Pan India Presence
Pan India Presence Pan-India Network – As on Dec 2020 Branch & ATM Network 13,311 12,961 9,587 9,587 Chandigarh Jammu & Kashmir (23) (29) (20) (19) Arunachal Meghalaya Pradesh Himachal Pradesh Punjab (9) (7) (1) (3) (41) (47) (302) (300) Uttarakhand (125) (154) Haryana (306) (301) Delhi (259) Sikkim
Slide 26: Growth Strategy
Growth Strategy 6 Crore+ MSMEs, 11Cr+ Employees, Urban population expected to increase 17.8% share of Agri & Allied Sector in Contributes ~30% to GDP & Half of from 37.7 Crore (2011 Census) to 60 GVA for 2019-20* Country’s Export* Crore by 2030* GoI launched National Infrastructure Teledensity of 86
Slide 27: Experienced Management & Board Of Directors
Experienced Management & Board Of Directors • Joined Union Bank of India on July 01, 2017 as MD & CEO. • Prior to appointment in the Bank, he was Executive Director in Oriental Bank of Commerce. • Started his career with Central Bank of India where he rose up to the rank of General Manager. • He has
Slide 28: Awards & Recognition
Awards & Recognition Greentech HR Awards 2020 – Global HR Excellence Award by World HRD World CSR Congress 2020- Winner of The Technology Excellence & Leading Congress 2020 - Winner of the Best Service Winner of The CEO of the Year & Best Training CEO of the year Provider in HR , Award for Excellenc
Slide 29: Thank You
Thank You
Union Bank of India — Investor Presentation (March 2021) on 6ix