Union Bank Of India Limited · NSE:UNIONBANK
Union Bank Of India — Q1 FY23 Earnings Presentation
50 slides from Union Bank Of India's earnings presentation, Jul 26, 2022
Slide 1: Financial Results Q1FY23
Financial Results Q1FY23 July 26, 2022 Please follow us on: @unionbankofindia @UnionBank Tweets UnionBankInsta UnionBankofIndiaUtube UnionBankofIndia 1
Slide 2: Table of Contents
Performance Highlights 3-4 Sustained Improvement 5-6 Business Performance 7-15 Investments 16-19 Financial Inclusion 20-21 Table of Financials 22-28 Contents Asset Quality and Capital 29-35 Union Bank Digital Journey 36-42 ESG 43-46 Group Entities 47 Performance vis-à-vis Guida
Slide 3: Performance Highlights
Performance Highlights
Slide 4: Performance Highlights – Q1FY23
Performance Highlights – Q1FY23 10.80% 9.27% 12.95% 12.17% 8.11% YoY YoY YoY YoY YoY Total Gross Net Total RAM Interest Business Deposits Advances Advances Income Net Profit GNPA (%) NNPA (%) CET-1 CRAR(%) 32.02% 338 bps 138 bps 91 bps 110 bps YoY YoY YoY YoY YoY 4
Slide 5: Union Bank: Sustained Improvement (1/2)
Union Bank : Sustained Improvement (1/2) ₹ in crore Retail Loans Housing Loans 11.13% 9.82% 1,39,410 YoY YoY 1,25,445 72,704 66,204 Jun-21 Jun-22 Jun-21 Jun-22 Vehicle Loans 35.44% Gold Loans 24.67% YoY YoY 13,135 36,234 9,698 29,064 Jun-21 Jun-22 Jun-21 Jun-22 5
Slide 6: Union Bank: Sustained Improvement (2/2)
Union Bank : Sustained Improvement (2/2) GNPA(%) NNPA(%) 14.60 5.22 13.74 4.62 3.68 11.11 3.31 10.22 Mar-20 Mar-21 Mar-22 Jun-22 Mar-20 Mar-21 Mar-22 Jun-22 PCR(%) CET-1(%) 84.75 10.68 83.61 10.63 8.60 9.07 81.27 78.21 Mar-20 Mar-21 Mar-22 Jun-22 Mar-20 Mar-21 Mar-22 Jun-22 6
Slide 7: Business Performance
Business Performance
Slide 8: Business Performance
Business Performance ₹ in crore Growth(%) Parameters Jun-21 Mar-22 Jun-22 YoY QoQ Global Business 15,53,619 17,48,800 17,21,409 10.80 -1.57 Domestic Business 15,37,304 17,31,371 17,02,421 10.74 -1.67 Global Deposits 9,08,528 10,32,392 9,92,774 9.27 -3.84 Domestic Deposits 9,07,067 10,32,102 9,92,517
Slide 9: Business Performance - Liabilities
Business Performance - Liabilities ₹ in crore Total Deposits 9,08,528 10,32,392 9,92,774 9.27 % (YoY) 290 257 1,461 9.42% 10,32,102 (YoY) 9,92,517 9,07,067 Domestic Deposits Jun-21 Mar-22 Jun-22 Domestic Deposits Overseas Deposits Total Deposits CASA Portfolio CASA+ Retail TD + Non Callable Bulk Dep
Slide 10: Business Performance - Assets
Business Performance - Assets Gross Advances ₹ in crore 6,45,091 7,16,408 7,28,635 12.95% YoY 17,139 18,731 14,854 7,09,904 6,99,269 6,30,237 Jun-21 Mar-22 Jun-22 Gross Advances Domestic Advances Overseas Advances Proportion of Gross Advances (%)-June’22 19 16 5 46% 46 19 9 52 54% 5 10 19 Home Loans
Slide 11: Business Performance - Assets
Business Performance - Assets ₹ in crore Retail 11.13% Agriculture 14.04% 1,39,410 YoY YoY 1,36,273 1,35,503 1,33,092 1,25,445 1,18,825 Jun-21 Mar-22 Jun-22 Jun-21 Mar-22 Jun-22 MSME 11.26% YoY 1,14,974 1,14,674 1,03,060 Jun-21 Mar-22 Jun-22 11
Slide 12: Diversified Loan Portfolio-Industry Exposure
Diversified Loan Portfolio-Industry Exposure ₹ in crore (% Share in Domestic Advances) S No Sectors Jun-21 Mar-22 Jun-22 Rs. In Crore % Share Rs. In Crore % Share Rs.In Crore % Share 1 Infrastructure 1,05,214 16.69 1,11,776 15.98 1,11,414 15.69 2 NBFCs and HFCs 66,426 10.54 90,149 12.89 92,540 13.04
Slide 13: Achievement under Priority Sector – Jun'22
Achievement under Priority Sector –Jun’22 RBI Benchmark Achieved Particulars (as % of ANBC) (as % of ANBC) Agriculture 18.00 19.70 Small and Marginal Farmers 9.50 13.58 Micro Enterprises 7.50 7.97 Weaker Section 11.50 16.12 Total Priority 40.00 43.61 13
Slide 14: COVID Relief & Govt. Guaranteed Schemes
COVID Relief & Govt. Guaranteed Schemes Helping customers to tide over the liquidity crisis through various schemes (as on 30.06.2022) PM SVANidhi 1 No of Loans – 3,64,772 Amount Sanctioned – ₹ 392 Cr Union Guaranteed Emergency Credit Line 2 No of Loans – 3,73,809 Amount Sanctioned –10,667 ₹ Cr Unio
Slide 15: Rating Profile
Rating Profile Rating - Corporate Loans(> Rs. 5 Crore) Rating- Retail in % in % 50 56 68 79 29 28 17 4 4 11 17 12 15 10 Jun-21 Jun-22 Jun-21 Jun-22 (-1 to 5) 700 & below 700-750 750 & above BB & Below BBB A & Above Rating - Standard NBFC NBFC-Segment Wise Exposure % Share Jun-22 Ratings Jun-21 Mar-2
Slide 16: Investments
Investments
Slide 17: Investments
Investments ₹ in crore % of SLR and Non SLR in Domestic Investments 3,43,505 3,53,002 3,55,635 27 25 24 73 75 76 Jun-21 Mar-22 Jun-22 SLR Non SLR Domestic Investments Particulars (Domestic) Jun-21 Mar-22 Jun-22 Jun-21 Mar-22 Jun-22 ₹ in crore M-Duration (%) Available for Sale 89,893 95,518 89,533 1.
Slide 18: Investments
Investments ₹ in crore Composition of Domestic Investments Category Jun-21 Mar-22 Jun-22 SLR Investments 2,48,985 2,64,164 2,69,024 Non-SLR Investments 94,520 88,838 86,611 Commercial Paper 6,896 6,401 6,455 Certificate of Deposits 2,625 1,703 1,442 Mutual Funds 373 318 288 Shares 5,184 5,14
Slide 19: Overseas Operations
Overseas Operations Business from Overseas Branches Overseas Branches US $ in billion Jun* Mar# Jun^ (₹ in 2021 2022 2022 crore) 1.DIFC , Dubai Total 2.19 2.30 2.40 Business (16,317) (17,428) (18,988) 2.Hong Kong Total 0.20 0.04 0.03 Deposits (1,462) (290) (257) Total 2.00 2.26 2.37 3.Sydney Advance
Slide 20: Financial Inclusion
Financial Inclusion a
Slide 21: Financial Inclusion
Financial Inclusion Total PMJDY Accounts (No. in Lakhs) Balance in PMJDY A/c ( Rs. In Crore) 249 7,780 7,827 245 221 6,597 Jun-21 Mar-22 Jun-22 Jun-21 Mar-22 Jun-22 Performance under Financial Inclusion ( No. in Lakhs) 180.92 149.02 50.62 26.28 42.15 20.66 PMJJBY PMSBY APY Jun-21 Jun-22 21
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Slide 23: Cost & Yield Ratio (%)
Cost & Yield Ratio (%) Parameters Jun-21 (Q1) Mar-22 (Q4) Jun-22 (Q1) Domestic Global Domestic Global Domestic Global Cost of Deposits 4.18 4.17 4.13 4.13 4.03 4.03 Cost of Funds 3.77 3.71 3.66 3.62 3.64 3.60 Yield on Advances 7.39 7.26 7.10 6.98 7.27 7.14 Yield on Investments 6.23 6.20 6.01 5.99 6.
Slide 24: Cost & Yield Ratio- Global (%) (Quarterly)
Cost & Yield Ratio- Global (%) (Quarterly) Cost of Deposits Cost of Funds Yield on Advances 4.17 3.71 3.62 3.60 7.26 6.98 7.14 4.13 4.03 Jun-21 Mar-22 Jun-22 Jun-21 Mar-22 Jun-22 Jun-21 Mar-22 Jun-22 Yield on Investments Yield onFunds Net Interest Margin 6.20 5.99 6.03 6.29 6.18 5.97 3.08 3.00 2.75
Slide 25: Operating Performance
Operating Performance ₹ in crore Jun-21 Mar-22 Jun-22 Growth (%) Growth (%) Parameters (Q1) (Q4) (Q1) YoY QoQ 1. Interest on Advances 11,346 11,454 12,259 8.05% 7.03% 2. Interest on Investments 5,100 4,996 5,246 2.86% 5.00% 3. Other Interest Income 689 724 669 -2.90% -7.60% 4. Total Interest Income
Slide 26: Non Interest Income
Non Interest Income ₹ in crore Jun-21 Mar-22 Jun-22 Growth (%) Growth (%) Parameters (Q1) (Q4) (Q1) YoY QoQ 1. Core Fee Based Income 1,064 1,827 1,679 57.80% -8.10% w/w a. 218 269 257 17.89% -4.46% Processing charges b. Comm. On Insurance Business 34 78 61 79.41% -21.79% c. Comm. On Govt Business 7
Slide 27: Provisions
Provisions ₹ in crore Jun-21 Mar-22 Jun-22 Parameters (Q1) (Q4) (Q1) NPAs 2,492 3,154 3,653 Standard Assets 1,064 -104 -1,052 Provision on NPI (Investment) -198 556 671 Taxation (including Deferred Tax) 598 462 608 Others 44 12 9 Total 4,000 4,080 3,890 27
Slide 28: Efficiency/Profitability Ratios
Efficiency/Profitability Ratios Return on Average Assets(%) Cost to Income Ratio(%) 0.53 47.61 0.50 47.10 0.43 44.87 Jun-21 Mar-22 Jun-22 Jun-21 Mar-22 Jun-22 Quarterly Quarterly Jun-21 Mar-22 Jun-22 S. No. Efficiency Parameters (Q1) (Q4) (Q1) 1 Return on Equity (%) * 9.99 11.12 11.52 2 Book Value P
Slide 29: Asset Quality and Capital
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Slide 30: Asset Quality: Movement in Non Performing Assets
Asset Quality: Movement in Non Performing Assets ₹ in crore Parameters Jun-21 Mar-22 Jun-22 (Q1) (Q4) (Q1) Gross NPAs - Opening 89,788 77,787 79,587 Add : Additions 7,049 5,672 4,244 W/w Increase in balance in existing NPA 209 409 530 Fresh slippages 6,840 5,263 3,714 Less : Reductions 9,075 3,872 9
Slide 31: Asset Quality: Sectoral
Asset Quality: Sectoral ₹ in crore Sectoral NPA % O/s NPA Slippages During Sectors as on Q1 FY 23 Jun 2022 Jun-21 Mar-22 Jun-22 Retail Loans 587 4,821 5.00 3.67 3.46 Agriculture 1,387 16,059 13.04 11.58 11.85 MSME 976 20,211 21.17 18.71 17.62 Large Corporate & Others 1,294 33,409 14.70 11.33 9.85 To
Slide 32: COVID Resolution Framework and SMA position as on 30.06.2022
COVID Resolution Framework and SMA position as on 30.06.2022 ₹ in crore Resolution Framework 1.0 Resolution Framework 2.0 Outstanding Implemented Category Category (30.06.2022) (30.06.2022) MSME (Up to Rs.25 cr) 1,797 MSME 3,408 Personal Loans 3,297 Personal & Small Business 6,469 Agriculture Allied
Slide 33: Status of NCLT Accounts
Status of NCLT Accounts RBI List 1 O/s RBI List 2 O/s Others- Admitted Total ₹ 4,081 Cr ( 6 A/c) ₹ 7,339 Cr ( 13 A/c) ₹ 48,710 Cr ( 543 A/c) ₹ 60,131, Cr (562 A/c) PCR on NCLT accounts 100% 99.41% 97.19% 97.66% RBI List 1 RBI List 2 Others Total (admitted) 33
Slide 34: Basel III: Capital Adequacy
Basel III : Capital Adequacy ₹ in crore Jun-21 Mar-22 Jun-22 Capital Adequacy Ratio(%) Parameter % to % to Amt. % to RWA Amt. Amt. RWA RWA 14.52 14.42 13.32 1 Tier I 59,837 11.08 66,589 12.20 66,928 12.14 2.32 2.28 2.23 Common Equity I 52,732 9.77 58,049 10.63 58,887 10.68 1.56 1.46 1.32 Additional
Slide 35: Shareholding Pattern
Shareholding Pattern Particulars As on 30.06.2022 Shareholding Pattern (%) as on 30.06.22 Share Capital ₹ 6,835 crore No. of Equity Shares 683.47 crore Promoters Holding (%) 83.49% 8.48 1.13 6.90 Market Cap ₹ 23,409 crore* Net worth (30.06.2022) Rs in Crs 83.49 1.1 Share Capital 6,835 1.2 Reserve &
Slide 36: Union Bank Digital Journey
Union Bank Digital Journey 36
Slide 37: Digital Products
Digital Products PAPL Union Nxt Pre-approved Personal A new-age Super App Loans for all Banking Needs Union Dial UV Conn Lead Generation WhatsApp Banking channel Facility Shishu FDR Mobile MUDRA STP FD A/C Opening on End- to- end digital mobile App sanction MSME STP MSME Credit Card Providing credit
Slide 38: Union SARAS-End to End Recovery Management
Union SARAS-End to End Recovery Management Union - S RAS Stress Asset Recovery Automated Based on Application Programming Interface Solution SARFAESI DRT Civil Suit Arbitration Revenue Lok IBC & Valuation Insurance Recovery Adalat NCLT Vehicle Staff Advocates Engagement Willful Non- Write-Off E-Cour
Slide 39: SAMARTH 2.0 successfully completes 12 months
SAMARTH 2.0 successfully completes 12 months Several initiatives in place to set the bank for sustained digital transformation Customer Experience Next-generation Innovation in operating models Robust Bank Operations Revitalization Product Suite for key businesses Re-vamped U-Mobile Experience Pre-A
Slide 40: Initiatives to strengthen bank's Credit Card Business
Various Initiatives are being taken to strengthen bank's Credit Card Business 1 2 3 Revitalized Launch of MSME Card- Introduction of product offerings first of its kind Preapproved Credit Card • 50 days of interest free period; • Co-branded credit card variant – • >2.5 lac customer base higher contr
Slide 41: Digital Footprints
Digital Footprints (No. in Lakhs) Debit Card Users Mobile Banking Users Net Banking Users(Retail) 491 70 479 166 174 68 130 449 65 Jun-21 Mar-22 Jun-22 Jun-21 Mar-22 Jun-22 Jun-21 Mar-22 Jun-22 Volume of Transactions (QoQ) Mobile Banking (Union nxt) UPI 5,190 5,286 9,916 8,487 3,474 4,436 Jun-21 Mar
Slide 42: Union Bank: Customer Touch Points
Union Bank : Customer Touch Points Total Branches Total ATMs 1,084 Branches 8,729 11,154 (1,238 ATMs) 1,231 Branches (2,010 ATMs) Jun-22 Branches (%) Jun-22 ATM (%) NORTHERN 1,740 Branches (2,324 ATMs) 29 19 21 29 27 21 25 29 NORTH EASTERN Rural Rural Semi Urban Semi Urban CENTRAL Urban Urban EASTER
Slide 43: ESG
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Slide 44: Committed Towards Environment
₹ 7,308 Crore Union Green Miles Credit facility extended to ₹ 63.85 Crore Sanctioned Renewable Energy Sector as on as on 30.06.2022 30.06.2022 Finance to MSME under TReDS : Total Number Rain Water Conservation : Total 55,97,000 litres rain of Bills discounted 50,463 of amounting ₹ water saved throug
Slide 45: Svanidhi, Women SHGs, Union Kissan Pushpak
Svanidhi Women SHGs Bank has sanctioned total 18,617 Total 1.03 lakh loans amounting ₹ 7,127 Crores applications amounting to ₹ 30.03 Crore in sanctioned to SHGs out of which 90,341 loans Q1 FY 2022-23 amounting ₹ 6,329 Crores sanctioned to women SHGs in Q1 FY 2022-23 Union Kissan Union Nari Shakti
Slide 46: Gender Diversity and Governance Policies
Gender Diversity in Bank Related Party Transaction Policy To ensure proper approval and reporting of Female staff constitutes approximate 29% of transactions between the Bank and its Related total staff strength in the Bank Parties including Board of Directors and Key Managerial Personnel of the Ban
Slide 47: Performance of Group Entities
Performance of Group Entities ₹ in crore Profit After Tax Name of the Entity Holding(%) FY22 Q1FY23 Subsidiaries Union Bank of India (UK) Limited 100.00% 40.00 5.64 Union Asset Management Co. Private Limited 100.00% 11.89 0.77 UBI Services Ltd. 100.00% 24.54 0.40 Andhra Bank Financial Services Limit
Slide 48: Performance vis-à-vis Guidance
Performance vis-à-vis Guidance PARAMETERS Actual as of June 30, 2022 Guidance for FY-23 (YoY) Deposits Growth 9.27% 10% Advances Growth 12.95% 10-12% CASA(%) 36.19% 37.00% NIM(%) 3.00% 3.00% Gross NPA(%) 10.22% <9% Net NPA (%) 3.31% <2.90% Credit Cost (%) 2.02% <1.70% Delinquency Ratio (%) 2.67% 2.0
Slide 49: 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 50: Investor queries
Please provide your valuable feedback@ icmt.unionbankofindia.co.in/investor _ feedback Investor queries: investor.relations@unionbankofindia.bank 50