Union Bank Of India Limited · NSE:UNIONBANK
Union Bank Of India — Q2 FY2023 Earnings Presentation
50 slides from Union Bank Of India's earnings presentation, Oct 20, 2022
Slide 1: Financial Results Q2FY23
Financial Results Q2FY23 October 20, 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 36-40 ESG, HR Initiatives & Awards 41-46 Group Entities 47 Pe
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Slide 4: Performance Highlights – Q2FY23
Performance Highlights – Q2FY23 Global Total Gross RAM Net Interest Business Deposits Advances Advances Income 17.33% YoY 14.14% YoY 21.92% YoY 14.86% YoY 21.61% YoY Gross Advances RAM Advances Net Profit GNPA(%) NNPA(%) CRAR(%) Credit Net Profit GNPA (%) NNPA (%) Cost(%) 21.07% YoY 419 bps YoY 197
Slide 5: Union Bank: Sustained Improvement (1/2)
Union Bank : Sustained Improvement (1/2) ₹ in crore Housing Loans Vehicle Loans 10.93% 28.61% YoY 14,164 YoY 74,824 11,013 67,449 Sep-21 Sep-22 Sep-21 Sep-22 Personal Loans Gold Loans 61.37% 30.38% YoY YoY 8,514 40,303 5,276 30,911 Sep-21 Sep-22 Sep-21 Sep-22 5
Slide 6: Union Bank: Sustained Improvement (2/2)
Union Bank : Sustained Improvement (2/2) GNPA(%) NNPA(%) 14.60 13.74 5.22 4.62 11.11 3.68 8.45 2.64 Mar-20 Mar-21 Mar-22 Sep-22 Mar-20 Mar-21 Mar-22 Sep-22 PCR(%) CET-1(%) 86.61 10.63 10.67 83.61 9.07 8.60 81.27 78.21 Mar-20 Mar-21 Mar-22 Sep-22 Mar-20 Mar-21 Mar-22 Sep-22 6
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Slide 8: Business Performance
Business Performance ₹ in crore Growth(%) Parameters Sep-21 Mar-22 Jun-22 Sep-22 YoY QoQ Global Business 15,48,605 17,48,800 17,21,409 18,16,955 17.33 5.55 Domestic Business 15,32,370 17,31,371 17,02,421 17,95,464 17.17 5.47 Global Deposits 9,14,022 10,32,392 9,92,774 10,43,265 14.14 5.09 Domestic D
Slide 9: Business Performance - Liabilities
Business Performance - Liabilities Global ₹ in crore Total Deposits Deposits 9,14,022 10,32,392 9,92,774 10,43,265 14.14 % (YoY) 290 270 Domestic 257 789 Deposits 14.21% 10,32,102 10,42,995 (YoY) 9,13,233 9,92,517 Sep-21 Mar-22 Jun-22 Sep-22 Domestic Deposits Overseas Deposits Total Deposits CASA Po
Slide 10: Business Performance - Assets
Business Performance - Assets Proportion of Gross Advances (%)-Sep’22 ₹ in crore Global Advances 6,34,583 7,16,408 7,28,635 7,73,690 21.92 % YoY 18,731 21,221 15,446 17,139 Domestic Advances 7,52,469 21.54 % 6,99,269 7,09,904 YoY 6,19,137 Sep-21 Mar-22 Jun-22 Sep-22 Domestic Advances Overseas Advanc
Slide 11: Business Performance - Assets
Business Performance - Assets ₹ in crore Retail 14.45% Agriculture 15.19% YoY YoY 1,43,874 1,46,715 1,35,503 1,36,273 1,39,410 1,33,092 1,28,190 1,24,897 Sep-21 Mar-22 Jun-22 Sep-22 Sep-21 Mar-22 Jun-22 Sep-22 14.97 % MSME YoY 1,20,069 1,14,974 1,14,674 1,04,436 Sep-21 Mar-22 Jun-22 Sep-22 11
Slide 12: Diversified Loan Portfolio-Industry Exposure
Diversified Loan Portfolio-Industry Exposure ₹ in crore (% Share in Domestic Advances) S No Sectors Sep-21 Mar-22 Jun-22 Sep-22 Rs. In % Rs. In Crore % Share Rs. In Crore % Rs. In Crore % Share Crore Share Share 1 Infrastructure 1,04,495 16.88 1,11,776 15.98 1,11,414 15.69 1,14,701 15.24 2 NBFCs and
Slide 13: Achievement under Priority Sector – Sep'22
Achievement under Priority Sector –Sep’22 RBI Benchmark Achieved Particulars (as % of ANBC) (as % of ANBC) Agriculture 18.00 21.27 Small and Marginal Farmers 9.50 14.53 Micro Enterprises 7.50 8.74 Weaker Section 11.50 17.55 Women Beneficiaries 5.00 11.90 Total Priority 40.00 46.48 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 30.09.2022) PM SVANidhi 1 No of Loans – 4,16,334 Amount Sanctioned – ₹ 495 Cr Union Guaranteed Emergency Credit Line 2 No of Loans – 3,73,894 Amount Sanctioned –₹ 10,703 Cr Unio
Slide 15: Rating Profile
Rating Profile Rating - Corporate Loans(> Rs. 5 Crore) Rating- Retail in % in % 52 57 72 76 29 28 15 5 3 13 14 12 13 11 Sep-21 Sep-22 Sep-21 Sep-22 (-1 to 5) 700 & below 700-750 750 & above BB & Below BBB A & Above Rating - Standard NBFC NBFC-Segment Wise Exposure % Share Ratings Sep-22 Sep-21 Mar-2
Slide 16: Investments
Investments
Slide 17: Investments
Investments ₹ in crore % of SLR and Non SLR in Domestic Investments 3,33,869 3,53,002 3,55,635 3,47,175 27 25 24 25 73 75 76 75 Sep-21 Mar-22 Jun-22 Sep-22 SLR Non SLR Domestic Investments Particulars Sep-21 Mar-22 Jun-22 Sep-22 Sep-21 Mar-22 Jun-22 Sep-22 (Domestic) ₹ in crore M-Duration (%) Availa
Slide 18: Investments
Investments ₹ in crore Composition of Domestic Investments Category Sep-21 Mar-22 Jun-22 Sep-22 SLR Investments 2,42,965 2,64,164 2,69,024 2,60,065 Non-SLR Investments 90,904 88,838 86,611 87,110 Commercial Paper 4,029 6,401 6,455 6,332 Certificate of Deposits 1,946 1,703 1,442 2,284 Mutual Fu
Slide 19: Overseas Operations
Overseas Operations Business from Overseas Branches Overseas Branches US $ in billion Sep* Mar# Jun^ Sep^^ (₹ in 2021 2022 2022 2022 crore) 1.DIFC , Dubai Total 2.19 2.30 2.40 2.64 Business (16,238) (17,428) (18,988) (21,491) 2.Hong Kong Total 0.11 0.04 0.03 0.03 Deposits (790) (290) (257) (270) Tot
Slide 20: Financial Inclusion
Financial Inclusion :
Slide 21: Financial Inclusion
Financial Inclusion 7780 7827 7934 6680 230 245 249 282 Sep-21 Mar-22 Jun-22 Sep-22 Balance in PMJDY A/c ( Rs. In Crore) Total PMJDY Accounts (No. in Lakhs)) Performance under Financial Inclusion ( No. in Lakhs) 183.58 160.59 45.62 51.69 22.74 27.78 PMJJBY PMSBY APY Sep-21 Sep-22 21
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Slide 23: Cost & Yield Ratio (%)
Cost & Yield Ratio (%) Parameters Sep-21 (Q2) Jun-22 (Q1) Sep-22(Q2) H1FY22 H1FY23 Domestic Global Domestic Global Domestic Global Domestic Global Domestic Global Cost of Deposits 4.16 4.16 4.03 4.03 4.23 4.23 4.17 4.17 4.13 4.13 Cost of Funds 3.68 3.62 3.64 3.60 3.76 3.74 3.72 3.67 3.70 3.67 Yield
Slide 24: Cost & Yield Ratio- Global (%) (Quarterly)
Cost & Yield Ratio- Global (%) (Quarterly) Cost of Deposits Cost of Funds Yield on Advances 7.65 4.16 4.13 4.23 3.62 3.62 3.74 7.12 6.98 7.14 4.03 3.60 Sep-21 Mar-22 Jun-22 Sep-22 Sep-21 Mar-22 Jun-22 Sep-22 Sep-21 Mar-22 Jun-22 Sep-22 Yield on Investments Yield onFunds Net Interest Margin 6.10 6.21
Slide 25: Operating Performance
Operating Performance ₹ in crore Growth Growth Sep-21 Mar-22 Jun-22 Sep-22 H1 H1 Growth Parameters (%) (%) (Q2) (Q4) (Q1) (Q2) FY22 FY23 (%) YoY QoQ 1. Interest on Advances 11,165 11,454 12,259 13,811 23.70 12.66 22,511 26,070 15.81 2. Interest on Investments 4,916 4,996 5,246 5,308 7.96 1.18 10,016
Slide 26: Non Interest Income
Non Interest Income ₹ in crore Growth Growth Sep-21 Mar-22 Jun-22 Sep-22 H1 H1 Growth Parameters (%) (%) (Q2) (Q4) (Q1) (Q2) FY22 FY23 (%) YoY QoQ 1. Core Fee Based Income 1,230 1,827 1,679 1,602 30.29 -4.56 2,293 3,281 43.07 w/w a. 247 269 257 346 40.08 34.63 465 602 29.46 Processing charges Comm.
Slide 27: Provisions
Provisions ₹ in crore Sep-21 Mar-22 Jun-22 Sep-22 H1 H1 Parameters (Q2) (Q4) (Q1) (Q2) FY22 FY23 NPAs 3,693 3,154 3,653 2,816 6,185 6,469 Standard Assets 45 -104 -1,018 1,468 1,141 449 Provision on NPI -53 556 671 -113 -252 559 (Investment) Taxation (including 824 462 608 652 1,421 1,261 Deferred Ta
Slide 28: Efficiency/Profitability Ratios
Efficiency/Profitability Ratios Return on Average Assets Cost to Income Ratio 47.61 0.61 45.37 45.29 0.56 0.57 43.80 44.87 43.21 0.50 0.53 0.50 Sep-21 Mar-22 Jun-22 Sep-22 H1FY22 H1FY23 Sep-21 Mar-22 Jun-22 Sep-22 H1FY22 H1FY23 Quarterly Half-yearly Quarterly Half-yearly S. Sep-21 Mar-22 Jun-22 Sep-
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Slide 30: Asset Quality: Movement in Non Performing Assets
Asset Quality: Movement in Non Performing Assets ₹ in crore Sep-21 Mar-22 Jun-22 Sep-22 H1 H1 S.No Parameters (Q2) (Q4) (Q1) (Q2) FY22 FY23 1. Gross NPAs - Opening 87,762 77,787 79,587 74,500 89,788 79,587 2. Add : Additions 6,745 5,672 4,244 2,913 13,794 7,157 W/w Increase in balance in existing NP
Slide 31: Asset Quality: Sectoral
Asset Quality: Sectoral ₹ in crore Sectoral NPA % O/s NPA Slippages During Sectors as on Q2 FY 23 Sep 2022 Sep-21 Jun-22 Sep-22 Retail Loans 439 4,694 4.15 3.46 3.20 Agriculture 1,029 16,099 12.44 11.85 11.19 MSME 914 19,131 20.42 17.62 15.93 Large Corporate & Others 531 25,467 13.59 9.85 7.45 Total
Slide 32: COVID Resolution Framework and SMA position as on 30.09.2022
COVID Resolution Framework and SMA position as on 30.09.2022 ₹ in crore Resolution Framework 1.0 Resolution Framework 2.0 Outstanding Implemented Category Category (30.09.2022) (30.09.2022) MSME (Up to Rs.25 cr) 1,633 MSME 3,279 Personal Loans 3,216 Personal & Small Business 6,344 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 ₹ 3,917 Cr ( 4 A/c) ₹ 7,244 Cr (13 A/c) ₹ 49,821 Cr (540 A/c) ₹ 60,982 Cr (557 A/c) PCR on NCLT accounts 100% 99.39% 97.59% 97.96% RBI List 1 RBI List 2 Others Total (admitted) 33
Slide 34: Basel III: Capital Adequacy
Basel III : Capital Adequacy ₹ in crore Sep-21 Jun-22 Sep-22 Capital Adequacy Ratio(%) Parameter % to % to Amt. % to RWA Amt. Amt. RWA RWA 14.42 14.50 13.64 1 Tier I 60,187 11.32 66,928 12.14 69,457 12.26 2.28 2.24 Common Equity I 54,004 10.16 58,887 10.68 60,454 10.67 2.32 1.46 1.59 1.16 Additional
Slide 35: Shareholding Pattern
Shareholding Pattern Particulars As on 30.09.2022 Shareholding Pattern (%) as on 30.09.22 Share Capital ₹ 6,835 crore No. of Equity Shares 683.47 crore Promoters Holding (%) 83.49% 8.03 1.43 7.05 Market Cap ₹ 30,517 crore* Net worth (30.09.2022) Rs in Crs 83.49 1.1 Share Capital 6,835 1.2 Reserve &
Slide 36: Union Bank Strategic & Digital Initiatives
Union Bank Strategic & Digital Initiatives 36
Slide 37: Strategic Initiatives
Strategic Initiatives Under Credit Under Asset Quality Under Digitization END-TO-END Digitization of Union SARAS UPI Lite Sanctions and Renewal of KCC (End-to-end digital solution Loans for Recovery management) Credit Cards on UPI Scale up of Existing MUDRA STP to TARUN & KISHORE Ethical Hacking
Slide 38: Outcome of Digital Initiatives - Credit
Outcome of Digital Initiatives - Credit Retail Review STP PAPL Shishu Mudra STP MSME STP Renewal (During Half Year) (During Half Year) <10 Lacs No. Of Accounts: No. Of Accounts: No. Of Accounts: 93,183 34,379 5,668 55% of MSME Renewal Amt. Reviewed: Amt. Sanctioned: Amt. Sanctioned: <10 lacs done Rs
Slide 39: Digital Footprints
Digital Footprints (No. in Lakhs) Debit Card Users Mobile Banking Users Net Banking Users(Retail) 502 186.99 70.77 491 166.46 173.90 69.58 479 141.12 68.49 459 66.06 Sep-21 Mar-22 Jun-22 Sep-22 Sep-21 Mar-22 Jun-22 Sep-22 Sep-21 Mar-22 Jun-22 Sep-22 Volume of Transactions (QoQ) Mobile Banking (Union
Slide 40: Union Bank: Customer Touch Points
Union Bank : Customer Touch Points Total Branches Total ATMs 1,080 Branches 8,729 11,092 (1,232 ATMs) 1,229 Branches (2,029 ATMs) Sep-22 Branches (%) Sep-22 ATM (%) NORTHERN 1,744 Branches (2,270 ATMs) 29 19 21 29 27 21 25 29 NORTH EASTERN Rural Rural Semi Urban Semi Urban CENTRAL Urban Urban EASTER
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Slide 42: Committed Towards Environment
₹ 7,566 Crore Union Green Miles Credit facility extended to ₹ 106.63 Crore Sanctioned Renewable Energy Sector as on as on 30.09.2022 30.09.2022 Finance to MSME under TReDS : Total Number Rain Water Conservation : Total 57,17,000 litres rain of Bills discounted 54,871 amounting water saved through va
Slide 43: PMSvanidhi, Women SHGs, Shishu Mudra
PMSvanidhi Women SHGs Bank has sanctioned total 51,721 Total Fresh 9,846 loans amounting ₹ 158 Crores applications amounting to ₹ 93 Crore in H1 sanctioned to SHGs out of which 7,999 loans FY 2022-23 amounting ₹ 132 Crores sanctioned to women SHGs in H1 FY 2022-23 Shishu Mudra Union Nari Shakti Sche
Slide 44: Gender Diversity in Bank, Related Party Transaction Policy
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 45: Strategic Initiatives: HR
Strategic Initiatives : HR Company Growth Level Lateral Hiring in Individual development Specialized Roles program for executives Empower HER/HIM Centre of Excellence (Career counseling, Gender (established 9 CoEs for focused Committee for career employee upskilling in advancement) specialized areas
Slide 46: Awards and Accolades
Awards and Accolades UNION BANK OF INDIA WINS Union Bank of India wins BML MUNJAL Awards: Innovative 1 31st National Award for Training BUSINESS EXCELLENCE THROUGH LEARNING & Practices 2020-21 DEVELOPMENT UNION BANK OF INDIA BAGS 3 UNION BANK OF INDIA WINS AWARDS in EASE 4.0 ASSOCHAM AWARDS under th
Slide 47: Performance of Group Entities
Performance of Group Entities ₹ in crore Profit After Tax Name of the Entity Holding(%) Q1FY23 Q2FY23 Subsidiaries Union Bank of India (UK) Limited 100.00% 5.64 9.43 Union Asset Management Co. Private 100.00% 0.77 1.90 Limited UBI Services Ltd. 100.00% 0.40 0.54 Andhra Bank Financial Services Limite
Slide 48: Performance vis-à-vis Guidance
Performance vis-à-vis Guidance PARAMETERS Actual as of Sep 30, 2022 Guidance for FY-23 (YoY) Deposits Growth 14.14% 10% Advances Growth 21.92% 10-12% CASA(%) 35.63% 37.00% NIM(%) 3.15% 3.00% Gross NPA(%) 8.45 <9% Net NPA (%) 2.64 <2.90% Credit Cost (%) 1.50 <1.70% Delinquency Ratio (%) 1.80 2.00% 48
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
Union Bank of India — Q2 FY2023 Earnings Presentation on 6ix