Union Bank Of India Limited · NSE:UNIONBANK
Union Bank Of India — Non-Deal Roadshow (July 2023)
34 slides from Union Bank Of India's roadshow presentation, Jul 31, 2023
Slide 1: Exchange cover letter: analyst presentation disclosure
संदर्भ Ref.:नि.से.नि.ISD/182/2023-24 नदि ंक Date : July 31, 2023 BSE Ltd. National Stock Exchange of India Ltd. BSE Listing Centre NEAPS Scrip Code 532 477 Scrip Symbol-UNIONBANK-EQ Security – UBI-AT/BB महोदया Madam/महोदय Sir, Subject: Disclosures pertaining to Non-deal Roadshows / Analyst / Institu
Slide 2: Investor Presentation Q1 FY24
Investor Presentation Investor Presentation Corporate Presentation Financial Results Financial Results July Q3 2023 FY23 Q3 FY23 1
Slide 3: Disclaimer
Disclaimer Agenda This presentation has been prepared for general information purposes in respect of Union Bank of India (“Bank”) together with its subsidiary and associate, as applicable (together, with the Bank, the “Group”) only, without regard to any specific objectives, suitability, financial s
Slide 4: Agenda
Agenda 1 Union Bank of India Overview 2 Key Investment Highlights 3 Key Growth Strategies 4 Other Information 5 Annexures 3
Slide 5: Union Bank of India – An Overview
Union Bank of India – An Overview 4
Slide 6: Union Bank – India's 5th largest Public Sector Bank
Union Bank – India’s 5th largest Public Sector Bank1 An Overview Union Bank statistics (As of 30th Jun 2023) ● Rich legacy of serving the nation since incorporation in 1919 ● As of 31st March, 2023, Union Bank is the 5th largest1 Public Sector Bank in India2 Gross Advances: Deposits: NII: ● 9.49%2 S
Slide 7: Union Bank of India – Key Investment Highlights
Union Bank of India – Key Investment Highlights 6
Slide 8: Strong & Trusted Brand with Large Customer Base & Reach
Strong & Trusted Brand with Large Customer Base & Reach post - Amalgamation 1 Significant low-cost deposit base resulting in strong funding profile 2 Diversified asset portfolio with a strong presence in the relatively stable and granular RAM sectors 3 Steadily improving NIMs and cost to income rati
Slide 9: Strengthening liability franchise with consistent growth in CASA
1 Strengthening liability franchise with consistent growth in CASA driving down cost of deposits Strong Deposit Base (INR Cr) CASA Deposits (INR Cr) Y-o-Y Growth – 13.63% Y-o-Y Growth – 7.17% 11,17,716 11,28,052 10,32,392 9,92,774 3,94,055 9,23,805 3,85,084 3,77,193 3,59,335 3,35,592 36.54% 36.20% 3
Slide 10: Consistently growing, well diversified, granular loan book
2 Consistently growing, well diversified, granular loan book Stable and diversified asset mix with more than half in RAM assets Granular Retail Franchise YoY growth from Jun-22 to Jun-23 31st Mar 2023 30th Jun 2023 6,53,684 • 3rd largest1 lender in Home 7,16,408 8,09,905 7,28,635 8,18,457 12.33% the
Slide 11: Financial Inclusion – Priority Sector Lending
2 Financial Inclusion – Priority Sector Lending Total no. of Pradhan Mantri Jan-Dhan Yojana Accounts (in Cr) Financial Inclusion & Micro Insurance A/cs (in Cr)* 2.36 2.80 2.84 2.49 1.93 2.45 1.63 1.81 2.17 1.48 0.68 0.58 0.51 0.410.48 0.34 0.20 0.25 0.26 0.30 FY21 FY22 FY23 Q1FY23 Q1FY24 PMJJBY PMSB
Slide 12: Improving Financial Profile
3 Improving Financial Profile Improving NIMs Net Interest Income (INR Cr) Cost to Income Ratio 47.61% 8.43% 32,765 7.68% 27,786 46.27% 7.21% 7.14% 7.14% 46.02% 45.74% 24,688 4.06% 4.52% 3.61% 3.92% 3.60% 43.66% 2.94% 3.07% 3.00% 3.13% 2.71% 7,582 8,840 FY21 FY22 FY23 Q1FY23 Q1FY24 FY21 FY22 FY23 Q1F
Slide 13: Capital Adequacy Ratio
3 Capital Adequacy Ratio Bank has improving capital ratios 16.04% 15.95% 14.52% 12.56% 2.13% 2.09% 2.32% 1.55% 1.52% 2.21% 1.56% 1.29% 10.63% 12.36% 12.34% 9.07% FY21 FY22 FY23 Q1FY24 CET 1 AT 1 Tier 2 CRAR Particulars (INR Cr) FY21 FY22 FY23 Q1FY24 Tier 1 57,091 66,589 80,478 81,776 Common Equity T
Slide 14: Pan India presence through a wide network of Branches & Touch Points
4 Pan India presence through a wide network of Branches & Touch Points Pan India network of branches Location/ Region wise presence South Urban 1.30% 40.89% Central 20.40% Total Domestic Branches ATMs 28.65% Semi Urban West Northern 8,558 10,195 11.56% 19.98% North 29.70% Metro 21.24% 1,042 Rural Ea
Slide 15: Rapidly expanding Digital Ecosystem
5 Rapidly expanding Digital Ecosystem 350+ journeys to capture the end-to-end customer lifecycle Conversational AI Seamless Journey Hyper Personalization Omni-channel Experience Consumer assets Business consumer assets CRM & digital- Digital Contact Embedded Finance Segment-specific approach assiste
Slide 16: Digital Footprints
Digital Footprints (No. in Crores) Credit Card Users Mobile Banking Users Net Banking Users (Retail) 2.13 2.25 0.06 0.07 0.74 0.75 1.74 0.69 0.05 Jun-22 Mar-23 Jun-23 Jun-22 Mar-23 Jun-23 Jun-22 Mar-23 Jun-23 Volume of Transactions (QoQ) (No. in Crores) Mobile Banking UPI 60.05 60.45 164.02 52.86 14
Slide 17: Focus on ESG Initiatives
6 Focus on ESG Initiatives ● Credit facility to Renewable Energy Sector – ₹10,939 Crores as on 30.06.2023 ● ₹ 260 Crore Sanctioned as on 30.06.2023 under Union Green Miles ● Finance to MSME under TReDS :No. of Bills discounted 68,947 of ₹8,969 Crores ● Sustainable Development And Business Responsibi
Slide 18: Highly Experienced Board of Directors
7 Highly Experienced Board of Directors Mr. Srinivasan Varadarajan, Non Executive – Ms. A. Manimekhalai, MD & CEO Mr. Nitesh Ranjan, Executive Director Independent Director - Chairperson • Axis Bank, JP Morgan • Vijaya Bank, Canara Bank • Andhra Bank Mr. Nidhu Saxena, Executive Director Mr. Sameer S
Slide 19: Growth Strategies
VYOM Growth Strategies a ey
Slide 20: Growth Strategies
Growth Strategies Enhanced digital penetration and automation • Embed digitization across full range of banking processes • Establish an in-house analytics centre of excellence Continue emphasis on capital optimization and risk Establishing specialized branches focused on business management segment
Slide 21: Other Information
VYOM Other Information a ey
Slide 22: Improving asset quality with adequate provisioning
Improving asset quality with adequate provisioning GNPA and NNPA % PCR 13.74% 11.11% 90.34% 90.86% 10.22% 7.53% 7.34% 84.75% 83.61% 4.62% 81.27% 3.68% 3.31% 1.70% 1.58% FY21 FY22 FY23 Q1FY23 Q1FY24 FY21 FY22 FY23 Q1FY23 Q1FY24 GNPA NNPA PCR Segment wise GNPA 20.40% 18.71% 17.62% 15.65% 12.07% 11.58%
Slide 23: Asset Quality – Movement in NPAs
Asset Quality – Movement in NPAs Particulars (INR Cr) FY21 FY22 FY23 Q1FY23 Q1FY24 A. Gross NPA opening balance 97,193 89,788 79,587 79,587 60,987 B. Additions 17,443 22,877 12,518 4,244 3,241 C. Reductions 24,849 33,079 31,118 9,331 4,124 Recoveries 5,191 5,852 7,277 1,481 1,166 Up-gradation 2,674
Slide 24: Asset Quality – COVID resolution framework and SMA position
Asset Quality – COVID resolution framework and SMA position Restructuring Book (30th Jun 2023) SMA Position (INR 5 Cr and above) 30th Jun, 2022 30th Jun, 2023 Segment (INR Cr) RF1.0 RF2.0 O/s % to Gross O/s % to Gross Category MSME 1,000 2,107 Amount advances Amount advances Personal Loans 2,543 5,4
Slide 25: Investments
Investments Composition of Investments 100% Category Mar-21 Mar-22 Mar-23 Jun-23 90% 28% 25% 25% 22% 80% 70% SLR 2,40,298 2,64,164 2,60,252 2,73,407 60% 50% 40% 72% 75% 75% 78% Non-SLR 95,885 88,838 85,118 75,633 30% 20% 10% Commercial Paper 6,715 6,401 7,047 4,595 0% FY21 FY22 FY23 Q1FY24 Certifica
Slide 26: Union Bank – Subsidiaries, Associates & JV
Union Bank – Subsidiaries, Associates & JV International Domestic 100% 25% 100% 100% 100% 100% 25.10% 26.02% 35% Union Bank of India Union Asset UBI Services Andhra Bank Union Trustee Star Union Dai- ASREC Limited Chaitanya India (UK) Limited. International Management Limited Financial Co. Pvt. Ltd
Slide 27: Strengthening HR Practices
Strengthening HR Practices Setting the Foundation Step 1 ● Unique Role & Measurable KRAs for entire workforce ● Job Families to build specialized, future ready skill-sets Digitized process & Control Step 2 HR practices ● Assignment of roles & KRAs through role clarity tool ● Objective performance ap
Slide 28: Awards and Accolades
Awards and Accolades Economic Times - Future Ready Gold Category in BFSI for Union Prerna Project by Organization 2023-24 Award SKOCH Awards 1st Rank in the category of “ Best Guarantee Disability Positive Award 2023 Coverage (Number)” for FY 2022-23 by by BW People CGTMSE 27
Slide 29: Thank You
A VYOM afore de tH) vient Bank er ATE aT TET Government of india Undertaking _Thank You
Slide 30: Annexures
A VYOM afore de tH) vient Bank er ATE aT TET Government of india Undertaking Annexures a ey
Slide 31: Shareholding Pattern
Shareholding Pattern Shareholding Pattern (%) as on 30th June, 2023 Particulars As on 30.06.2023 1.46 8.22 Govt. of India Share Capital (INR Cr) 6,835 6.83 FII No. of Equity Shares (# in Cr) 683.47 DII 83.49 Promoters Holding (%) 83.49% Public & Others Market Cap (INR Cr)* 49,381 * Closing Price tak
Slide 32: Standalone Profit & Loss
Standalone Profit & Loss Parameters (INR Cr) FY21 FY22 FY23 Q1FY23 Q1FY24 1. Interest on Advances 45,766 45,236 56,760 12,259 16,639 2. Interest on Investments 20,574 19,943 21,355 5,246 5,585 3. Other Interest Income 2,428 2,766 2,628 669 1,254 4. Total Interest Income (1+2+3) 68,767 67,944 80,743
Slide 33: Standalone Balance Sheet
Standalone Balance Sheet Parameters (INR Cr) FY21 FY22 FY23 Q1FY23 Q1FY24 Liabilities Capital 6,407 6,835 6,835 6,835 6,835 Reserves and surplus 58,070 63,741 71,499 65,422 74,529 Deposits 9,23,805 10,32,393 11,17,716 9,92,774 11,28,051 Borrowings 51,837 51,179 43,137 57,651 31,545 Other Liabilities
Slide 34: Sector wise exposure
Sector wise exposure Q1FY23 Q1FY24 %mix to domestic %mix to domestic Particulars (INR Cr) Outstanding Outstanding advances advances Infrastructure 1,11,414 15.69 1,02,812 12.96 NBFCs and HFCs 92,540 13.04 1,07,795 13.59 Basic Metals 23,300 3.28 24,039 3.03 Petroleum/Coal/Nuclear 12,172 1.71 8,044 1.