Union Bank Of India Limited · NSE:UNIONBANK
Union Bank Of India — Q1 FY21 Earnings Presentation
59 slides from Union Bank Of India's earnings presentation, Aug 21, 2020
Slide 1: Exchange filing cover letter for results presentation
Ref: ISDl20-211141 August 21, 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), Mumbai
Slide 2: Financial Results Q1 FY20-21
Financial Results Q1 FY20-21 August 21, 2020 Please follow us on: @unionbankofindia @UnionBank Tweets UnionBankInsta UnionBankofIndiaUtube UnionBankofIndia
Slide 3: Table of Contents
Table of Contents 1 Business Performance 2 Financials 3 Update on Amalgamation 4 Response to COVID 19 5 Strategic Initiatives 6 Group Entities Amalgamation of Andhra Bank and Corporation Bank into Union Bank of India Andhra Bank and Corporation Bank amalgamated into Union Bank of India w.e.f. April
Slide 4: Performance Highlights – Q1FY21
Performance Highlights – Q1FY21 Key Parameters (YoY Growth) Key Ratios Total Business Gross Advances Rs. 1542668 cr Rs. 650127 cr Total Deposit Operating Profit Rs. 892542 cr Rs. 4034 cr Capital Adequacy (Basel III) Improving Asset Quality CRAR NNPA 11.62% 4.97% 3
Slide 5: Business Performance - Liabilities
Business Performance - Liabilities (Rs. in crore) 892542 Total Deposit 832178 868632 2394 3649 7.3% YOY 3055 7.4 % 864983 890148 YOY 829123 Jun-19 Mar-20 Jun-20 Domestic deposit Overseas deposit CASA Portfolio CASA+Retail TD as % of Total Domestic 32.2% 34.2% 33.3% Deposit as of Jun-2020 267663 2965
Slide 6: Business Performance - Assets
Business Performance - Assets Proportion of Gross Advances – Jun 20 (Rs. in crore) Gross Advances 2.0% 637173 666117 650127 YOY 18.2% 14584 20696 20885 46.1% 20.0% 1.1% 645421 629242 YOY 622589 15.7% Corporate & Others Agriculture Retail MSME Jun-19 Mar-20 Jun-20 Overseas advances Domestic Advances
Slide 7: Diversified Loan Portfolio - RAM
Diversified Loan Portfolio - RAM RAM* share (%) in Domestic advances Retail 55.7 55.7 55.1 28.6 47.3 3.4 9.5 5.5 5.6 Jun-19 Mar 20 Jun-20 Home Vehicle Education Mortgage Personal Others (incl. HFC+Staff loans) *Retail, Agriculture and MSME collectively called as “RAM sector” 6
Slide 8: Diversified Loan Portfolio-Industry Exposure
Diversified Loan Portfolio-Industry Exposure Top Sector Exposure (o/s) S No. Sectors (% Share in Domestic Advances) June -20 Rs. in Crore % Share 1 Infrastructure 90659 14.41 2 NBFCs and HFCs 68477 10.88 w/w HFCs 21732 5.06 3 Basic Metal Products 22370 3.56 4 Construction 17798 2.83 5 Food Processin
Slide 9: Investments
Investments Global Investment (in Crore) 265673 286685 332788 25 29 30 75 71 70 Jun-19 Mar -20 Jun-20 Non-SLR(%) SLR(%) Duration Particulars (Domestic) Mar 2020 Jun 2020 (Years) (Rs. in Crore) (Rs. in Crore) Mar-20 Jun-20 Available for Sale 74,091 1,05,111 2.79 2.48 W/w SLR 34,458 63,965 2.66 3.03 N
Slide 10: Overseas Operations
Overseas Operations Business from Overseas Operations Growth (%) US $ in billion Jun Mar Jun (Rs. in crore) 2019 2020 2020 Y-o-Y Y-o-Y (US$) (INR) 2.5 3.2 3.1 Total Business 24.0 32.0 (17638) (24345) (23279) 0.4 0.5 0.3 Total Deposits -25.0 -21.6 (3055) (3649) (2394) 2.1 2.7 2.8 Total Advances 33.3
Slide 11: Financial Inclusion
Financial Inclusion Total PMJDY Accounts Balance in PMJDY A/Cs (no. in Lacs) (Rs. in Crs) 5767 190 5049 174 4197 160 Jun-19 Mar-20 Jun-20 Jun-19 Mar-20 Jun-20 Micro Insurance & APY - Fresh Enrolments (In Lacs) 3.33 Terminal Figures (in Lacs) Jun 19 Jun 20 1.42 PMJJBY 29.55 33.11 0.94 0.97 0.61 0.64
Slide 12: Progress under Government Initiatives
Progress under Government Initiatives Total outstanding under Mudra loan: Rs.14880 crore Progress under Mudra Yojana (PMMY) April 20 - June 20 As on 30 June 2020 No. of Sanctioned Amount Outstanding Amount Category Accounts (Rs. in crore) (Rs. in crore) Shishu (< 50k) 71596 125 682 Kishor (Above 50k
Slide 13: Statement of Assets & Liabilities
Statement of Assets & Liabilities (Rs. in crore) As at 30.06.19* As at 31.03.20* As at 30.06.20 LIABILITIES Capital 1763 3423 6407 Reserves and surplus 24948 30363 54751 Share application 0 0 0 Deposits 430014 450668 892542 Borrowings 33878 52486 93929 Other Liabilities and Provisions 10978 13743 28
Slide 14: Financials
1 Business Performance 2 Financials 3 Update on Amalgamation 4 Response to COVID 19 5 Strategic Initiatives 6 Group Entities 13
Slide 15: Cost & Yield Ratio
Cost & Yield Ratio Parameters Jun-19 (Q1) Mar-20 (Q4) Jun-20 (Q1) Domestic Global Domestic Global Domestic Global Cost of Deposit 5.65 5.64 5.45 5.44 5.04 5.03 Cost of Funds 5.00 4.98 4.70 4.65 4.35 4.31 Yield on Advances 8.34 8.25 8.24 8.09 8.04 7.87 Yield on Investment 6.95 6.92 6.75 6.72 6.51 6.4
Slide 16: Movement of NIM
Movement of NIM NIM Quarterly (on Avg. Earning Assets) 2.64 2.59 2.55 2.51 2.56 2.52 Jun-19 Mar-20 Jun-20 NIM Domestic NIM Global 15
Slide 17: Net Interest Income
Net Interest Income (Rs. in crore) Quarterly 17.1% YoY 5468 5967 6403 Jun-19 Mar-20 Jun-20 16
Slide 18: Operating Revenues
Operating Revenues Jun-19 Mar-20 Jun-20 Growth (%) Growth (%) Parameters (Q1) (Q4) (Q1) YoY QoQ Interest Income 17846 18241 18429 3.3 1.0 Interest Expense 12378 12274 12026 -2.8 -2.0 Net Interest Income 5468 5967 6403 17.1 7.3 Non-Interest Income 1897 3698 1462 -22.9 -60.5 Total Income 19743 21939 1
Slide 19: Non Interest Income
Non Interest Income Jun-19 Mar-20 Jun-20 Growth (%) Growth (%) Major Parameters (Q1) (Q4) (Q1) YoY QoQ a. Core Non Interest Income 1181 1546 748 -36.7 -51.6 b. Treasury Income 448 1582 637 42.2 -59.7 W/w 312 1455 519 66.3 -64.3 Profit on Sale of Investments Exchange Profit 136 128 118 -13.2 -7.8
Slide 20: Fee Income
Fee Income Jun-19 Mar-20 Jun-20 Growth (%) Growth (%) Major Parameters (Q1) (Q4) (Q1) YoY QoQ Core Non Interest Income 1181 1546 748 -36.7 -51.6 W/w Processing Charges on 195 328 182 -6.7 -44.5 Advances Commission of LC/BG (Inland) 202 238 65 -67.8 -72.7 Commission/Brokerage on Life/Non- 30 55 23 -2
Slide 21: Operating Profit
Operating Profit (Rs. in crore) Operating Profit(Quarterly) 3.0% YoY 3918 4034 3690 Jun-19 Mar-20 Jun-20 20
Slide 22: Provisions
Provisions (Rs. in crore) Jun-19 Mar-20 Jun-20 Parameters (Q1) (Q4) (Q1) NPAs 3070 8527 2451 Standard Assets -99 550 410 Depreciation on Investment 25 285 -208 Shifting Loss 165 0 124 Restructured Advances 8 -24 86 Others 121 215 692 Taxation 67 2023 0 Total 3538 10847 3701 21
Slide 23: Net Profit
Net Profit (Rs. in crore) Net profit (Quarterly) 381 333 Jun-19 Mar-20 Jun-20 -7157 22
Slide 24: Efficiency/Profitability Ratios
Efficiency/Profitability Ratios Return on Avg. Assets (%) Cost to Income(%) 61.8 0.15 0.12 46.8 48.7 Jun-19 Mar-20 Jun-20 (Q1) (Q4) (Q1) Jun-19 Mar-20 Jun-20 -2.71 (Q1) (Q4) (Q1) Jun-19 Mar-20 Jun-20 S. No. Efficiency Parameters (Q1) (Q4) (Q1) 1 Return on Equity* (%) 3.8 -73.86 3.3 2 Book Value Per
Slide 25: Efficiency Ratios
Efficiency Ratios Jun-19 Mar-20 Jun-20 Sn. Profitability Parameters (Q1) (Q4) (Q1) 1 Business per Branch Rs. in crore 153 160 161 2 Business per employee Rs. in crore 19 20 20 3 Gross Profit per Branch Rs. in crore 1.63 1.54 1.68 4 Gross Profit per Employee Rs. in lacs 20.8 19.6 21.2 24
Slide 26: Asset Quality: Movement in Non Performing Assets
Asset Quality: Movement in Non Performing Assets (Rs. in crore) Jun-19 Mar-20 Jun-20 Parameters (Q1) (Q4) (Q1) Gross NPAs – Opening 98427 100432 97193 Add : Additions 5897 4303 1750 Less: Reductions 4962 7542 1753 1. Recoveries 1021 1982 751 2. Up-gradation 961 733 755 3. Write Off 2980 4827 247 Gro
Slide 27: Asset Quality: Sectoral
Asset Quality: Sectoral (Rs. in crore) Sectoral NPA % Slippages During Sectors NPAs Jun 20 Q1 FY 21 Jun-19 Mar-20 Jun-20 Retail Loans 171 5075 3.11 3.68 3.90 Agriculture 104 10832 9.21 11.14 10.59 Micro & Small (MSE) 463 15631 14.25 16.32 17.04 Medium & Large 1012 65652 23.11 19.54 20.15 Total 1750
Slide 28: Status of NCLT Accounts
Status of NCLT Accounts RBI List 1 O/s Rs. 9005 cr (8 A/c) PCR on NCLT Accounts RBI List 2 O/s Rs. 9248 cr (17 A/c) 100% 100% 92% 89% Others - Admitted Rs. 44526 cr (460 A/c) RBI List I RBI List II Others Total Total Rs. 62779 cr (485 A/c) 27
Slide 29: Basel III : Capital Adequacy
Basel III : Capital Adequacy 65370 66041 544423 568251 12.01 11.62 8.60 8.40 9.74 9.48 01.04.20 Jun-20 CET-1 Tier I CRAR RWA Capital funds RWA Optimization 87.4 81.7 01.04.20 Jun-20 RWA to Advance 28
Slide 30: Shareholding Pattern
Shareholding Pattern June 2020 Share Capital Rs.6407 crore Govt. of 0.83% India 5.02%5.08% FIIs No. of Equity Shares Rs.640.68 crore DIIs Net Worth Rs.40337crore 89.07% Public & others 29
Slide 31: Capital Structure - AE
Capital Structure - AE Equity Share Exchange Ratio Shareholding Pattern Pre & Post Amalgamation Pre - Post Amalgamation • 325 equity share of face value of Rs.10 Amalgamation each fully paid up capital in Union Bank of India for every 1000 equity shares of (in crore) 31.03.20 01.04.20 30.06.20 the f
Slide 32: Update on Amalgamation
1 Business Performance 2 Financials 3 Update on Amalgamation 4 Response to COVID 19 5 Strategic Initiatives 6 Group Entities 31
Slide 33: Amalgamated Entity : Position
Amalgamated Entity : Position (Rs. in crore) Parameters March 31, 2020 April 1, 2020 Union Bank Union Bank Union Bank (Standalone) (Amalgamated) (Amalgamated) Total Deposit 450668 868632 868632 Gross Advances 346921 666117 666117 Total Business 797589 1534749 1534749 CASA Ratio-Domestic(%) 35.59 34.
Slide 34: Amalgamated Entity : Position
Amalgamated Entity : Position (Rs. in crore) Parameters March 31, 2020 (FY) April 1, 2020 Union Bank Union Bank Union Bank (Standalone) (Amalgamated) (Amalgamated) Yield on Advances (Global) (%) 7.8 8.3 8.1 Cost of Deposits (Global) (%) 5.6 5.6 5.4 NIM (Global) (%) 2.3 2.6 2.6 Yield on Investments (
Slide 35: Amalgamated Entity : Position
Amalgamated Entity : Position (Rs. in crore) Parameters March 31, 2020 April 1, 2020 Union Bank Union Bank Union Bank (Standalone) (Amalgamated) (Amalgamated) Gross NPA (Rs. In Crores) 49085 97193 97639 Gross NPA Ratio (%) 14.15 14.59 14.66 Net NPA (Rs. In Crores) 17303 31325 31454 Net NPA Ratio (%)
Slide 36: Amalgamation: Bringing rich legacies together
Amalgamation: Bringing rich legacies together The standing of resultant entity; Post amalgamation of Andhra Bank and Corporation Bank with Union Bank w.e.f April 01,2020 Combined, we have a strong legacy with 310 years of experience Good people to bank with Celebrating our 100 Years of existence F
Slide 37: Strength of different entities
Strength of different entities • Strong CA franchise: • Strong Agri portfolio Highest CA ratio (9%) & • Strength in fee income high avg. balance per • High deposit market share • Strong risk CA in AP, Telangana management practices • Aggressive POS • Good starting in position in • Strong Savings A/C
Slide 38: Amalgamation: Standing of Amalgamated Entity
Amalgamation: Standing of Amalgamated Entity 9500+ Branches 13300+ ATMs 8000+ BC points Wider reach of the amalgamated 120+ Mn Customers bank to drive this vision 75,000+ Employees 37
Slide 39: Amalgamation during COVID 19
Amalgamation during COVID 19 Strategy created to drive amalgamation in Covid-19 induced disruptions Re-purposed MAP Facilitated remote working VC to replace physical meetings • Master amalgamation plan • IT vendors provided VPN • Progress reviews and (MAP) re-purposed for post- connectivity for UAT
Slide 40: Amalgamation: Bringing rich legacies together
Amalgamation: Bringing rich legacies together New CPCs MSME processing center SARAL - 90 SARAL/SARAL LITE now live with 42 new/converted units Retail processing center – ULP : 46 new/converted ULPs has now taken total ULP count to 121 39
Slide 41: Amalgamation: Cost Synergy Realization
Amalgamation: Cost Synergy Realization Branch ATM Vendor cost Network IT cost Sale of Rationalization optimization rationalization premises rationalization 40
Slide 42: Amalgamation- Market Share
20 Andhra Pradesh 14 Telangana 11 Goa 9 Odisha 8 Uttar Pradesh 8 Madhya Pradesh 8 Karnataka 7 Chattisgarh 7 Maharashtra 6 Delhi 6 Sikkim 5 Gujarat 5 Chandigarh 5 Kerala 5 West Bengal 4 Uttarakhand 4 Haryana 4 Jharkhand 4 Tamil Nadu 4 Punjab Amalgamation- Market Share State wise % market share of ama
Slide 43: Response to COVID 19
1 Business Performance 2 Financials 3 Update on Amalgamation 4 Response to COVID 19 5 Strategic Initiatives - Outcome 6 Group Entities 42
Slide 44: COVID 19: Bank Response
COVID 19: Bank Response Union Bank of India is helping customers to tide over the liquidity crisis through various schemes COVID Emergency Line of Credit (CELC) Union COVID -19 Personal Loan Scheme (UCPLS) Union SHG COVID Suvidha Loan (USCSL) Union Guaranteed Emergency Credit Line (UGECL) Liberalise
Slide 45: COVID 19: Extending Govt Schemes
COVID 19: Extending Govt Schemes Employee Safety • 99% Branches Operational • 937 cr credited under PM • 88% ATM Operational Kisan • Introduced Work from Home • 33 cr e – Transactions • Staggered Working Hours • 1437 cr credited to PMJDY • 2.40 cr BC Transactions Women beneficiaries. • Sanitization
Slide 46: Strategic Initiatives
1 Business Performance 2 Financials 3 Update on Amalgamation 4 Response to COVID 19 5 Strategic Initiatives 6 Group Entities 45
Slide 47: Strategic Initiatives
Strategic Initiatives Structural Development: Creation of Centralized Processing Centres (CPCs) No. of Units No. of Units No. of Units Particulars Sectors covered (Jun-19) (Mar-20) (Jun-20) ULP 75 75 75 Retail (Housing and Mortgage Loan) USK 45 62 62 Retail, Agriculture and MSME SARAL 47 48 48 MSME,
Slide 48: Strategic Initiatives
Strategic Initiatives Rated Advances - Lending to higher rated borrowers… Improved rating profile of new retail loans sanctioned Rating Matrix of Outstanding Corporate Loans (> Rs. 5 crore) Retail CIBIL Rating Profile 293216 277047 23 41 16 17 33 14 18 25 70 65 44 34 Mar-20 Jun-20 FY 20 Apr 20 - Jun
Slide 49: ESG Practices
ESG Practices • 2.00 Crore CASA e-statements • Bank employees contributed Rs • Well balanced Governance with issued for June 2020 quarter. 14.78 Crores to PM CARES FUND set of code of conduct and code of • State of Art Tier III green data for nation’s battle against COVID19 Corporate Governance ensu
Slide 50: Expanding Digital Footprints
Expanding Digital Footprints ATMs/ Debit cards POS Mobile Banking Internet Banking • Vast network of 13239 • Vide network of 3.61 Lac • With customer base of • With a customer base of ATMs with 4.27 crores terminals. 87.73 Lacs, Union Bank 64.01 Lacs, internet debit card base. provides a bunch of ba
Slide 51: Group Entities
1 Business Performance 2 Financials 3 Update on Amalgamation 4 Response to COVID 19 5 Strategic Initiatives - Outcome 6 Group Entities 50
Slide 52: Performance of Subsidiaries, JVs & Associates
Performance of Subsidiaries, JVs & Associates Type Name 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. Limited Joint Venture
Slide 53: Details of Group Entities
Details of Group Entities (Rs. in crore) Subsidiaries Union Bank of India (UK) Limited Bank‟s Particulars Q1FY20 Q1FY21 • Wholly owned subsidiary operating in UK Shareholding • Equity Investment – 1005.43 crores Total Income 43.02 43.02 Net Profit/ (Loss) 2.16 (1.13) 100% Total Assets 3217.44 3348.4
Slide 54: Details of Group Entities
Details of Group Entities (Rs. in crore) Subsidiaries Corp Bank Securities Limited Bank‟s Particulars Q1FY20 Q1FY21 • Engaged in Institutional Equity broking Shareholding (commenced in November 2015). Total Income 3.28 0.77 •Trading of equity shares (proprietary), Net Profit/ (Loss) 2.05 0.39 tradin
Slide 55: Details of Group Entities
Details of Group Entities (Rs. in crore) Subsidiaries Union Trustee Co. Pvt. Limited Bank‟s Particulars Q1FY20 Q1FY21 • Wholly owned subsidiary Shareholding Total Income 0.05 0.05 • Equity Investment – 0.05 crore Net Profit/ (Loss) 0.02 (0.01) • Act as a trustee company for Union Mutual 100% Total A
Slide 56: Details of Group Entities
Details of Group Entities (Rs. in crore) Joint Venture India First Life Insurance (IFLIC) Bank‟s Particulars Q1FY20 Q1FY21 • IFLIC incorporated in June 2008 . Shareholding • Current Shareholding - Bank of Baroda, Union Total Income 980.18 1212.18 Bank and Carmel Point Investment India Pvt Net Profit
Slide 57: Details of Group Entities
Details of Group Entities (Rs. in crore) Joint Venture India International Bank (Malaysia) BHD Bank‟s Particulars Q1FY20 Q1FY21 • India International Bank Malaysia , Berhad Shareholding Total Income 18.43 17.47 ( IIBMB) located at Kuala Lumpur was Net Profit/ (Loss) 2.21 1.71 incorporated on 13.08.2
Slide 58: 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 59: Investor queries
Investor queries: investor.relations@unionbankofindia.com 58