Union Bank Of India Limited · NSE:UNIONBANK
Union Bank Of India — Q3 FY20 Earnings Presentation
45 slides from Union Bank Of India's earnings presentation, Feb 10, 2020
Slide 1: Exchange filing cover letter for results presentation
Ref: ISDll9-201359 February 10, 2020 The Deputy General Manager, The Deputy General Manager, Corporate Relationships Dept. Listing Dept. BSE Ltd. National Stock Exchange of India Ltd. Phiroze Jeejeebhoy ~owers, Exchange PLaza, Plot No,C/I, G Block Dalal Street, Bandra-Kurla Complex, Bandra (E), Mumb
Slide 2: Financial Results Q3FY20/9MFY20
Financial Results Q3FY20/9MFY20 Please follow us on: February 10, 2020 @unionbankofindia @UnionBank Tweets UnionBankInsta UnionBankofIndiaUtube UnionBankofIndia
Slide 3: Table of Contents
Table of Contents 1 Business Performance 2 Financials 3 Strategic Initiatives - Outcome 4 Digital Banking 5 Group Entities 2
Slide 4: Performance Highlight – Q3FY20
Performance Highlight – Q3FY20 Key Parameters (YoY Growth) Key Ratios Total Business Gross Advance Rs. 781155 cr Rs. 336064 cr RONW Total Deposit 7.90% Net Profit Rs. 445091 cr Rs. 575 cr Capital Adequacy (Basel III) Improving Asset Quality CRAR NNPA 14.71% 6.99% 3
Slide 5: Business Performance - Liabilities
Business Performance - Liabilities (` crore) 442879 445091 Total Deposit 3435 3541 10.6 % YOY 415915 402297 2816 2670 439444 441550 10.5% 413099 YOY 399627 Dec-18 Mar-19 Sep-19 Dec-19 Domestic deposit Overseas deposit CASA Portfolio 34.7% 34.7% 34.2% 34.1% CASA+Retail TD as % of Total Domestic 35.5%
Slide 6: Business Performance - Assets
Business Performance - Assets Proportion of Gross Advance - (` crore) Gross Advances Dec19 325392 327057 336064 5.8 % 317513 YOY 19156 20.7% 14460 17608 14183 46.2% 4.5 % 310932 309449 316908 303330 YOY 18.5% 14.6% Dec-18 Mar-19 Sep-19 Dec-19 Overseas advances Domestic Advances Corporate & Others Ag
Slide 7: Diversified Loan Portfolio - RAM
Diversified Loan Portfolio - RAM RAM* share (%) in Domestic advances Retail 57.0 57.1 56.0 55.7 29.1 46.7 3.7 7.6 5.8 7.1 Dec-18 Mar-19 Sep-19 Dec-19 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 - RAM
Diversified Loan Portfolio - RAM Composition of Agri loan book(%) 38 37 36 37 More than 63% of Agri. portfolio is 62 63 64 63 for Small & Marginal farmers Dec-18 Mar-19 Sep-19 Dec - 19 Small & Marginal Other Agri Composition of MSME loan book(%) 24 25 26 24 76% of 42 41 40 42 MSME portfolio is 34
Slide 9: Diversified Loan Portfolio-Industry Exposure
Diversified Loan Portfolio-Industry Exposure Top Sector Exposure S No. Sectors (% Share in Domestic Advance) Sep-19 Dec-19 ` Crore % Share ` Crore % Share 1 Infrastructure 53367 17.2 52270 16.5 2 NBFCs and HFCs 43747 14.1 46687 14.7 w/w HFCs 14491 4.7 17081 5.4 3 Trade 37329 12.1 38909 12.3 4 Basic
Slide 10: NBFC Portfolio
NBFC Portfolio Total FB O/s NBFCs –46687 cr NBFC Asset Quality w/w HFCs – 17081 cr 6.00% Quality of Standard Assets-NBFC 94.00% Comapnies Backed 17.27% by Govt/PSUs Standard Asset NPA % of Std advances - Rating wise (Dec-19) 0.9 0.3 3.0 0.7 Pvt Sector 82.73% Companies 96.1 99.1 NBFC (excl HFC) HFC A
Slide 11: Investments
Investments Global Investment (` Crore) 121289 126432 170781 162598 26 25 27 27 74 75 73 73 Dec-18 Mar-19 Sep-19 Dec-19 Non-SLR(%) SLR(%) Duration Particulars (Domestic) Sep 2019 Dec 2019 (Years) (` Crore) (` Crore) Sep-19 Dec-19 Available for Sale 59445 50765 2.74 3.22 W/w SLR 37641 29879 2.74 3.40
Slide 12: Overseas Operations
Overseas Operations Business from Overseas Operations Growth (%) US $ in billion Dec Sep Dec (` crore) 2018 2019 2019 Y-o-Y Y-o-Y (US$) (INR) 2.4 2.9 3.2 Total Business 33.3 34.7 (16853) (21043) (22697) 0.4 0.4 0.5 Total Deposits 25.0 32.6 (2670) (3435) (3541) 2.0 2.4 2.68 Total Advances 34.0 35.1 (
Slide 13: Financial Inclusion
Financial Inclusion Total PMJDY Accounts Balance in PMJDY A/Cs (no. in Lacs) (Rs. in Crs) 110 2665 107 2404 2453 2111 98 94 Dec-18 Mar-19 Sep-19 Dec-19 Dec-18 Mar-19 Sep-19 Dec-19 Micro Insurance & APY - Fresh Enrolments (In Lacs) 5.18 Terminal Figures – Dec 19 (in Lacs) • PMJJBY – 14.63 2.19 2.07 •
Slide 14: Progress under Government Initiatives
Progress under Government Initiatives Total outstanding under Mudra loan: ` 7393 crore Progress under Mudra Yojana April to December 2019 (PMMY) No. of Sanctioned Amount Outstanding Amount Category Accounts (` crore) (` crore) Shishu (< 50k) 44232 86 62 Kishor (Above 50k-5 Lacs) 71325 1523 1263 Taru
Slide 15: Statement of Assets & Liabilities
Statement of Assets & Liabilities (` crore) As at As at As at As at Growth (%) 31.12.18 31.03.19 30.09.19 31.12.19 Y-o-Y Q-o-Q LIABILITIES Capital 1169 1763 1763 3423 193% 94% Reserves and surplus 24390 24724 23635 34241 40% 45% Share application 0 0 11768 0 -- -- Deposits 402297 415915 442879 44509
Slide 16: Table of Contents
Table of Contents 1 Business Performance 2 Financials 3 Strategic Initiatives - Outcome 4 Digital Banking 5 Group Entities 15
Slide 17: Cost & Yield Ratio
Cost & Yield Ratio Parameters Dec-18 (Q3) Sep-19 (Q2) Dec-19 (Q3) Dec-18 (9M) Dec-19 (9M) Domestic Global Domestic Global Domestic Global Domestic Global Domestic Global Cost of Deposit 5.61 5.59 5.68 5.66 5.55 5.53 5.56 5.54 5.62 5.60 Cost of Funds 4.95 4.87 4.79 4.76 4.75 4.69 4.94 4.85 4.84 4.80
Slide 18: Movement of NIM
Movement of NIM NIM Quarterly NIM Quarterly (on Avg. Earning Assets) (on AEA excl.GNPA) 2.55 2.47 2.38 2.44 2.35 2.23 2.23 2.27 2.74 2.51 2.54 2.61 Dec-18 Mar-19 Sep-19 Dec-19 Dec-18 Mar-19 Sep-19 Dec-19 NIM Domestic NIM Global Global NIM (9M) NIM (9M) (on Avg. Earning Assets) (on AEA excl.GNPA) 2.2
Slide 19: Net Interest Income
Net Interest Income (` crore) Quarterly 25.7% YoY 2906 3134 2493 2602 Dec-18 Mar-19 Sep-19 Dec-19 9M 12.42% YoY 7613 8559 9M FY 2019 9M FY 2020 18
Slide 20: Operating Revenues
Operating Revenues Growth Growth Dec-18 Mar-19 Sep-19 Dec-19 9M 9M Growth Parameters (%) (%) (Q3) (Q4) (Q2) (Q3) FY 19 FY 20 (%) YoY QoQ Interest Income 8477 8349 9414 9630 13.60 2.29 25717 27942 8.65 Interest Expense 5984 5748 6508 6496 8.56 -0.18 18104 19383 7.07 Net Interest Income 2493 2602 2906
Slide 21: Non Interest Income
Non Interest Income Growth Growth Dec-18 Mar-19 Sep-19 Dec-19 9M 9M Growth Parameters (%) (%) (Q3) (Q4) (Q2) (Q3) FY 19 FY 20 (%) YoY QoQ a. Core Non Interest Income 660 867 605 648 -1.79 7.13 2009 1753 -12.74 b. Treasury Income 191 266 379 135 -29.30 -64.35 632 860 35.94 W/w Profit on Sale of 110
Slide 22: Operating Profit
Operating Profit (` crore) Operating Profit(Quarterly) 32.71% YoY 2240 2402 1810 1730 Dec-18 Mar-19 Sep-19 Dec-19 Operating Profit (9 Months) 12.74% YoY 6528 5791 9M FY 2019 9MFY 2020 21
Slide 23: Provisions
Provisions (` crore) Dec-18 Mar-19 Sep-19 Dec-19 9M 9M Parameters FY19 FY20 (Q3) (Q4) (Q2) (Q3) NPAs 2139 5783 3328 1570 5652 6329 Standard Assets 71 21 570 -255 116 217 Depreciation on Investment -551 -26 -91 265 -378 253 Shifting Loss 0 0 0 0 411 4 Restructured Advances 0 -102 -21 -26 -254 -22 Oth
Slide 24: Net Profit
Net Profit Net profit(Quarterly) (` crore) 575 153 Dec-18 Mar-19 Sep-19 Dec-19 -1194 -3370 Net Profit(9M) 422 9M FY 2019 9MFY 2020 -395 23
Slide 25: Efficiency/Profitability Ratios
Efficiency/Profitability Ratios Return on Avg. Assets (%) Cost to Income(%) 0.41 55.3 49.6 44.7 43.4 46.5 44.7 0.12 0.11 Dec-18 Mar-19 Sep-19 Dec-19 9M FY 19 9M FY20 (Q3) (Q4) (Q2) (Q3) -0.87 Dec-18 Mar-19 Sep-19 Dec-19 9M FY 9M FY20 -2.71 -0.10 (Q3) (Q4) (Q2) (Q3) 19 S. Dec-18 Mar-19 Sep-19 Dec-19
Slide 26: Efficiency Ratios
Efficiency Ratios Dec-18 Mar-19 Sep-19 Dec-19 9M 9M Sn. Profitability Parameters (Q3) (Q4) (Q2) (Q3) FY 19 FY 20 Business per 1 ` crore 167.71 172.7 179.68 182.30 167.71 182.30 Branch Business per 2 ` crore 19.09 19.9 20.30 20.78 19.09 20.78 employee Gross Profit per 3 ` crore 1.69 1.6 2.09 2.24 1.8
Slide 27: Asset Quality: Movement in Non Performing Assets
Asset Quality: Movement in Non Performing Assets (` crore) Dec-18 Mar-19 Sep-19 Dec-19 9M 9M Parameters (Q3) (Q4) (Q2) (Q3) FY 19 FY 20 Gross NPAs - Opening 50157 49713 48812 49850 49370 48729 Add : Additions 2983 3275 4219 5112 10302 12421 Less: Reductions 3427 4259 3181 5038 9959 11226 1. Recoveri
Slide 28: Asset Quality: Sectoral
Asset Quality: Sectoral (` crore) Sectoral NPA % Slippages During Sectors NPAs Dec 2019 Q3 FY 20 Dec-18 Sep-19 Dec-19 Retail Loans 259 1641 2.23 2.76 2.64 Agriculture 714 5824 7.71 11.32 11.86 Micro & Small (MSE) 1121 7673 12.19 13.4 14.57 Medium & Large 3018 34786 26.22 23.6 22.74 Total 5112 49924
Slide 29: Asset Quality: Sectoral
Asset Quality: Sectoral Standard as on Sep 2019 Standard as on Dec 2019 Scheme Amount Amount Account Account (Rs. in crore) (Rs. in crore) 5:25 10 2860 10 2860 SDR 1 0* 1 0 S4A 1 12 1 12 *Account is Non-Fund Based S.N. Sector # Outstanding NPA Std. Restructured NPA + Std. Restructured (%) 1 Infrastr
Slide 30: Status of NCLT Accounts
Status of NCLT Accounts RBI List 1 O/s Rs. 4318 cr (7 A/c) PCR on NCLT Accounts RBI List 2 O/s Rs. 3390 cr (15 A/c) 96% 83% 68% 75% Others - Admitted Rs. 17477 cr (173 A/c) RBI List I RBI List II Others Total Total Rs. 25185 cr (195 A/c) 29
Slide 31: Basel III : Capital Adequacy
Basel III : Capital Adequacy 31213 32796 44160 43961 272974 278344 291613 298802 15.14 14.71 11.43 11.78 11.46 11.35 7.50 8.02 12.83 12.69 9.02 9.48 Dec-18 Mar-19 Sep-19 Dec-19 CET-1 Tier I CRAR RWA Capital funds RWA Optimization 89.2 88.9 86.0 85.5 57.4 56.3 56.4 54.8 Dec-18 Mar-19 Sep-19 Dec-19 RW
Slide 32: Shareholding Pattern
Shareholding Pattern December-19 Share Capital ` 3423 crore 5.47% 6.40% Govt. of 1.38% No. of Equity Shares ` 342.28 crore India FIIs DIIs Net Worth ` 29324 crore Public & others 86.75% Market Cap ` 18757 crore 31
Slide 33: Extensive & specialized distribution network
Extensive & specialized distribution network Branch Distribution by Urbanization METRO RURAL Jammu & Kashmir 21% 29% Chandigarh (13) (15) (10) (20) Arunachal Pradesh URBAN 20% SEMI- Meghalaya (1) (1) Punjab Himachal Pradesh (5) (5) URBAN (140) (140) (20) (24) 30% Uttarakhand (84) (120) Haryana (110)
Slide 34: Table of Contents
Table of Contents 1 Business Performance 2 Financials 3 Strategic Initiatives - Outcome 4 Digital Banking 5 Group Entities 33
Slide 35: Strategic Initiatives - Outcome
Strategic Initiatives - Outcome More than 75% of Credit Appraisal centralized Structural Development: Creation of Centralized Processing Centres (CPCs) Particular No of Units No. of Units Sectors covered s (Mar-19) (Dec-19) ULP 74 75 Retail (Housing and Mortgage Loan) USK 38 52 Retail, Agriculture a
Slide 36: Strategic Initiatives –Outcome
Strategic Initiatives –Outcome Rated Advances - Lending to higher rated borrowers… Maintained rating profile of new retail loans sanctioned Rating Matrix of Outstanding Corporate Retail CIBIL Rating Profile Loans (> `5 crore) `142547 ` 171428 51 19 63 26 16 15 ` in crore 28 65 17 58 20 21 Mar-17 Dec
Slide 37: Table of Contents
Table of Contents 1 Business Performance 2 Financials 3 Strategic Initiatives - Outcome 4 Digital Banking 5 Group Entities 36
Slide 38: Customer Delight – EASE of Banking
Customer Delight – EASE of Banking Mobile Banking Reinvented-New features added: ATM GEO LOCATOR – provides real time status of active ATMs within three different distance range, (0- 3km), (3-5km) and (5-10km). QUICK FUNDS TRANSFER - allows a user to transfer funds up to Rs5000/- per day within an
Slide 39: Enhancing Digital Footprints
ENHANCING DIGITAL FOOTPRINTS % of digital transactions 79 78.5 78 77.5 77 76.5 DEBIT CARD AUTOMATION – Real time activation of Ready kit debit cards 76 thereby reducing the TAT from 48 75.5 hours to less than a second and Mar-19 Jun-19 Sep-19 Dec-19 enhancing customer satisfaction. % of digital tran
Slide 40: Digital Banking Initiatives
Digital Banking Initiatives SOCIAL MEDIA 1427323 134838 27056 56768 14551 TIE UPS 20% instant discount Discount offers on gift Discount offer on on movie tickets items to our debit & MakeMyTrip.com on Discount on medicines booked through BMS credit card holders Domestic flights & FMCG and Apollo app
Slide 41: Table of Contents
Table of Contents 1 Business Performance 2 Financials 3 Strategic Initiatives - Outcome 4 Digital Banking 5 Group Entities 40
Slide 42: Details of Group Entities
Details of Group Entities (` crore) Subsidiaries Union Bank of India (UK) Limited Bank‟s Particulars 9MFY19 9MFY20 • Wholly owned subsidiary operating in UK Shareholding • Equity Investment – 649.33 crores Total Income 108.30 106.45 Net Profit/ (Loss) -35.44 -26.76 100% Total Assets 3370.06 3407.65
Slide 43: Details of Group Entities
Details of Group Entities (` crore) Subsidiaries Union Trustee Co. Pvt. Limited Bank‟s Particulars 9MFY19 9MFY20 • Wholly owned subsidiary Shareholding • Equity Investment – 0.06 crores Total Income 0.15 0.15 Net Profit/ (Loss) 0.03 0.005 100% Total Assets 0.17 0.17 Capital & Reserves 0.11 0.10 Join
Slide 44: 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 45: Investor queries: investor.relations@unionbankofindia.com
Investor queries: investor.relations@unionbankofindia.com 44