Union Bank Of India Limited · NSE:UNIONBANK
Union Bank Of India — Non-Deal Roadshow (February 2023)
33 slides from Union Bank Of India's roadshow presentation, Feb 20, 2023
Slide 1: Investor Presentation - Q3 FY23 Financial Results
Investor Presentation Investor Presentation Corporate Presentation Financial Results Financial Results February Q3 2023 FY23 Q3 FY23 1
Slide 2: 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 3: Agenda
Agenda 1 Union Bank of India Overview 2 Key Investment Highlights 3 Key Growth Strategies 4 Other Information 5 Annexures 3
Slide 4: Union Bank of India – An Overview
Union Bank of India – An Overview 4
Slide 5: Union Bank – India's 5th largest Public Sector Bank
Union Bank – India’s 5th largest Public Sector Bank An Overview Union Bank statistics (As of 31st Dec 2022) ● Rich legacy of serving the nation since incorporation in 1919 Gross Advances: Deposits: NII: ● As of 31st December, 2022, Union Bank is the 5th largest1 Public Sector Bank in India2 INR 8.04
Slide 6: Union Bank of India – Key Investment Highlights
Union Bank of India – Key Investment Highlights 6
Slide 7: Strong & Trusted Brand with Large Customer Base & Reach post-Amalgamation
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 8: 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 – 13.61% Y-o-Y Growth – 8.43% 10,32,392 10,65,027 3,77,193 3,75,981 9,23,805 9,37,455 3,35,592 3,46,753 4,50,668 1,60,373 37.0% 36.3% 36.5
Slide 9: 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 Dec- 21 to Dec-22 31st Mar 2020 31st Dec 2022 • 3rd largest1 lender in Home 3,46,921 6,53,684 7,16,408 6,69,531 8,04,015 20.09% th
Slide 10: Financial Inclusion – Priority Sector Lending
2 Financial Inclusion – Priority Sector Lending Total no. of Pradhan Mantri Jan-Dhan Yojana Accounts (in Lakhs) Financial Inclusion & Micro Insurance A/cs (in lakhs)* 205 286 179 171 245 238 148 217 112 41 50 48 57 43 16 20 25 24 31 7 FY20 FY21 FY22 9MFY22 9MFY23 PMJJBY PMSBY APY FY20 FY21 FY22 9MFY
Slide 11: Improving Financial Profile
3 Improving Financial Profile One of the best NIMs Net Interest Income (INR Cr) Cost to Income Ratio 46.0% 46.0% 27,786 7.8% 7.5% 24,688 24,515 45.7% 7.2% 7.1% 7.2% 21,017 4.7% 4.1% 3.6% 3.6% 3.8% 11,437 45.0% 45.0% 2.7% 2.9% 3.0% 3.1% 2.5% FY20 FY21 FY22 9MFY22 9MFY23 FY20 FY21 FY22 9MFY22 9MFY23 F
Slide 12: Capital Adequacy Ratio
3 Capital Adequacy Ratio Bank has stable capital ratios 14.5% 14.5% 12.8% 12.6% 2.3% 2.2% Raised INR 1,983 Cr 2.1% 2.2% 1.6% 1.6% via AT-1 bonds and 1.4% 1.3% INR 2,200 Cr via Tier II bonds in Q3FY23 9.4% 9.1% 10.6% 10.7% FY20 FY21 FY22 9MFY23 CET 1 AT 1 Tier 2 CRAR Particulars (INR Cr) FY20 FY21 FY
Slide 13: 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 40.9% 21% Urban 1.3% Central 29% Total Domestic Branches ATMs Semi Urban West Northern 8,707 10,953 11.4% 20.0% North Metro 29% 1,073 21% Rural 14.1% East 12.3% N
Slide 14: Rapidly expanding Digital Ecosystem
5 Putting Digital at the Core of Rapidly expanding Digital Ecosystem One Super-App for all Bank’s Strategy Financial Needs No. of Digital Journeys Live No. of A/Cs Renewed Digitally during 9M 20+ STP ₹1,600+Cr 5.91+Lakhs 79% Deposits Loans Fund Transfer Digital Disbursements during 9M % of MSME Loan
Slide 15: Digital Footprints
Digital Footprints (No. in Crores) Debit Card Users Mobile Banking Users Net Banking Users(Retail) 5.14 2.01 0.72 1.66 0.67 0.68 1.54 4.79 4.71 Dec-21 Mar-22 Dec-22 Dec-21 Mar-22 Dec-22 Dec-21 Mar-22 Dec-22 Volume of Transactions (QoQ) (No. in Crores) Mobile Banking UPI 58.45 126.95 51.90 40.33 84.8
Slide 16: Focus on ESG Initiatives
6 Focus on ESG Initiatives ● Credit facility to Renewable Energy Sector – ₹11,031 Crores as on 31.12.2022 ● ₹ 164 Crore Sanctioned as on 31.12.2022 under Union Green Miles ● Finance to MSME under TReDS :No. of Bills discounted 59,366 of ₹7536 Crores ● Sustainable Development And Business Responsibil
Slide 17: 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 • 30+ years of experience • 15+ years of experience • 30+ years of experience • Vijaya Bank, Canara Bank • Andhra
Slide 18: Growth Strategies
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Slide 19: Growth Strategies
Growth Strategies Enhanced digital penetration and automation • Embed digitization across full range of banking processes • Establish an in-house analytics centre Continue emphasis on capital optimization and risk Establishing specialized branches focused on business management segments, product lin
Slide 20: Other Information
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Slide 21: Improving asset quality with adequate provisioning
Improving asset quality with adequate provisioning GNPA and NNPA % PCR 14.2% 13.7% 88.5% 11.6% 81.3% 83.6% 82.8% 11.1% 73.6% 7.9% 5.5% 4.6% 4.1% 3.7% 2.1% FY20 FY21 FY22 9MFY22 9MFY23 FY20 FY21 FY22 9MFY22 9MFY23 GNPA NNPA PCR Segment wise GNPA 20.4% 20.4% 18.7% 19.0% 15.7% 15.7% 13.4% 11.9% 12.1% 1
Slide 22: Asset Quality – Movement in NPAs
Asset Quality – Movement in NPAs Particulars (INR Cr) FY20 FY21 FY22 9MFY22 9MFY23 A. Gross NPA opening balance 48,729 97,193 89,788 89,788 79,587 B. Additions 14,911 17,443 22,877 17,205 9,724 C. Reductions 14,555 24,849 33,079 29,207 25,541 Recoveries 4,267 5,191 5,852 3,956 5,343 Up-gradation 1,8
Slide 23: Asset Quality – COVID resolution framework and SMA position
Asset Quality – COVID resolution framework and SMA position Restructuring Book (31st December, 2022) SMA Position (INR 5 Cr and above) 31st Dec 2021 31st Dec 2022 Segment (INR Cr) RF1.0 RF2.0 O/s % to Gross O/s % to Gross Category MSME 1,399 2,921 Amount advances Amount advances Personal Loans 3,127
Slide 24: Investments
Investments Composition of Investments 100 % Category Mar-20 Mar-21 Mar-22 Dec-22 90% 31% 28% 25% 26% 80% 70% SLR 1,05,631 2,40,298 2,64,164 2,52,678 60% 50% 75% 74% 40% Non-SLR 47,319 95,885 88,838 88,150 30% 69% 72% 20% 10% Commercial Paper 5,777 6,715 6,401 5,628 0% FY20 FY21 FY22 9MFY23 Certific
Slide 25: 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 26: 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 27: Awards and Accolades
Awards and Accolades Security Leader of the Year (BFSI) under DSCI AISS Won 6 IBA Awards-2022 Cyber Security Award-2022 Awards Best Security Practices (BFSI) under DSCI AISS Award- Best Technology Bank 2022 BAI Global Innovation Award for Innovation in HR Transformation HR Awards Most Preferred Work
Slide 28: Thank You
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Slide 29: Annexures
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Slide 30: Shareholding Pattern
Shareholding Pattern Shareholding Pattern (%) as on 31st December, 2022 Particulars As on 31.12.2022 1.62 Govt. of India 8.39 Share Capital (INR Cr) 6,835 6.50 FII No. of Equity Shares (# in Cr) 683.47 DII 83.49 Promoters Holding (%) 83.49% Public & Others Market Cap (INR Cr)* 54,950 * Closing Price
Slide 31: Standalone Profit & Loss
Standalone Profit & Loss Parameters (INR Cr) FY20 FY21 FY22 9MFY22 9MFY23 1. Interest on Advances 25,078 45,766 45,236 33,781 41,101 2. Interest on Investments 10,572 20,574 19,943 14,947 15,901 3. Other Interest Income 1,581 2,428 2,766 2,042 1,737 4. Total Interest Income (1+2+3) 37,231 68,767 67,
Slide 32: Standalone Balance Sheet
Standalone Balance Sheet Parameters (INR Cr) FY20 FY21 FY22 9MFY22 9MFY23 Liabilities Capital 3,423 6,407 6,835 6,835 6,835 Reserves and surplus 30,363 58,070 63,741 63,822 69,515 Deposits 4,50,668 9,23,805 10,32,393 9,37,455 10,65,027 Borrowings 52,486 51,837 51,179 54,030 57,596 Other Liabilities
Slide 33: Sector wise exposure
Sector wise exposure 9MFY22 9MFY23 %mix to domestic %mix to domestic Particulars (INR Cr) Outstanding Outstanding advances advances Infrastructure 1,10,598 16.92 1,16,437 14.87 NBFCs and HFCs 70,218 10.74 1,06,400 13.59 Basic Metals 22,904 3.50 23,403 2.99 Food Processing 18,423 2.82 21,898 2.80 Pet
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