Union Bank Of India Limited · NSE:UNIONBANK
Union Bank Of India — Non-Deal Roadshow (January 2024)
35 slides from Union Bank Of India's roadshow presentation, Jan 31, 2024
Slide 1: Schedule of Non-deal Roadshows/ Analyst/ Institutional Investor Meet
संदर्भ Ref.:नि.से.वि.ISD/438/2023-24 ददि ंक Date : 31st January, 2024 बीएसई लिलिटे ड BSE Ltd. नेशनि टॉक एक्स्चेंज ऑफ इिं लडया लिलिटेड बीएसई लिस्टिं ग सेंटर BSE Listing Centre National Stock Exchange of India Ltd. स्िप कोड Scrip Code - 532 477 लनप्स NEAPS स्िप कोड Scrip Symbol-UNIONBANK-EQ लसक्योररटी
Slide 2: Investor Presentation January 2024
Investor Presentation Investor Presentation Corporate Corporate Presentation Presentation Digital Rupee (e₹) Financial Results Financial Results January Q3 FY23 Q3 2024 FY23 January 2024 Women Empowerment (Introduced Women’s Hockey Team) Union SWAR Union Education Premier (Employee Assistance Progra
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 on and for 9M ended 31st December 2023) ● Rich legacy of serving the nation since incorporation in 1919 ● As of 30th Sep, 2023, Union Bank is the 5th largest1 Public Sector Bank in India2 ● 9.30%2 Market Share
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 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 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 11,72,455 10,32,393 10,65,027 3,94,055 3,97,107 9,23,805 3,77,193 3,75,981 35.40% 3,35,592 36.54%
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 Dec- Amount in Rs Cr. 22 to Dec-23 31st Dec 2022 31st Dec 2023 • 3rd largest1 lender in Home 6,53,684 7,16,408 8,09,905 8,04,015 8
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)* 2.67 2.80 2.86 2.88 2.05 2.45 1.93 1.63 2.17 1.48 0.58 0.69 0.57 0.410.48 0.34 0.31 0.40 0.20 0.25 FY21 FY22 FY23 9MFY23 9MFY24 PMJJBY PMSB
Slide 12: Improving Financial Profile
3 Improving Financial Profile Improving NIMs Net Interest Income (INR Cr) Cost to Income Ratio 46.27% 8.66% 32,765 46.02% 45.74% 7.68% 7.54% 27,786 7.21% 7.14% 27,134 44.97% 24,688 24,515 4.70% 4.06% 3.92% 3.77% 43.70% 3.61% 2.71% 2.94% 3.07% 3.11% 3.10% FY21 FY22 FY23 9MFY23 9MFY24 FY21 FY22 FY23 9
Slide 13: Capital Adequacy Ratio
3 Capital Adequacy Ratio Bank has improving capital ratios 16.04% 14.52% 15.03% 12.56% 2.13% 1.98% 2.32% 1.55% 1.35% 2.21% 1.56% 1.29% 10.63% 12.36% 11.71% 9.07% FY21 FY22 FY23 9MFY24 CET 1 AT 1 Tier 2 CRAR Particulars (INR Cr) FY21 FY22 FY23 9MFY24 Tier 1 Capital 57,091 66,589 80,478 85,999 Common
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 41% 20% Urban 1% Central 29% Total Domestic Branches ATMs Semi Urban West Northern 8,477 9,889 12% North Metro 20% 30% 21% 1,027 Rural 12% East North-East 14% Nor
Slide 15: Key Initiatives
4 Key Initiatives Digital Union Kisan CRM Vyom Tatkal Scheme Lead Management Solution Mobile application with more than 350+ Offered to the existing KCC borrowers having KCC limit up to Rs. 25.00 lakhs 0.38 features 360 degree customer search for internet 0.29 banking made live 24 Digital
Slide 16: Digital Footprints
Digital Footprints (No. in Lakhs) Credit Card Users Mobile Banking Users Net Banking Users(Retail) 8.09 254 6.45 72 74 79 213 5.75 201 Dec-22 Mar-23 Dec-23 Dec-22 Mar-23 Dec-23 Dec-22 Mar-23 Dec-23 Volume of Transactions* (No. in Lakhs) Mobile Banking UPI 20,549 6,705 14,185 12,695 6,005 5,845 *Dec
Slide 17: Focus on ESG Initiatives
6 Focus on ESG Initiatives Environmental Social Governance 0.38 30 RSETI Centres, trained 3.26 lakh Board Composition 0.36 – Diverse & Board Approved ESG Risk Framework 0.29 people with Settlement Ratio of 67% as experienced Directors & Climate Risk Policy on 31.12.2023 0.29 Financed over 3 Lakh Str
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 • Vijaya Bank, Canara Bank • Andhra Bank • Axis Bank, JP Morgan Mr. Nidhu Saxena, Executive Director Mr. Ramasubr
Slide 19: Growth Strategies
VYOM Growth Strategies See ew ewe ew ew ewe ew ew ew ew ew ee ew ew ew ew ee we ee ee ee ew eee we ew ewe ew ewe ew ee ee ee ee ee -
Slide 20: Growth Strategies
Growth Strategies Enhanced digital penetration and automation • Embed digitization across full range of banking processes • Continue to develop our In-house analytics centre of excellence Continue emphasis on capital optimization and risk Establishing specialized branches focused on business managem
Slide 21: Other Information
VYOM Other Information See ew ewe ew ew ewe ew ew ew ew ew ee ew ew ew ew ee we ee ee ee ew eee we ew ewe ew ewe ew ee ee ee ee ee -
Slide 22: Improving asset quality with adequate provisioning
Improving asset quality with adequate provisioning GNPA and NNPA % PCR 13.74% 92.54% 11.11% 90.34% 88.50% 7.53% 7.93% 83.61% 4.62% 4.83% 81.27% 3.68% 1.70% 2.14% 1.08% FY21 FY22 FY23 9MFY23 9MFY24 FY21 FY22 FY23 9MFY23 9MFY24 GNPA NNPA PCR Segment wise GNPA 20.40% 18.71% 15.65% 12.52% 13.42% 12.07%
Slide 23: Asset Quality – Movement in NPAs
Asset Quality – Movement in NPAs Particulars (INR Cr unless otherwise stated) FY21 FY22 FY23 9MFY23 9MFY24 A. Gross NPA opening balance 97,193 89,788 79,587 79,587 60,987 B. Additions 17,443 22,877 12,519 9,724 8,554 C. Reductions 24,848 33,078 31,119 25,541 26,279 Recoveries 5,190 5,851 7,277 5,343
Slide 24: Asset Quality – COVID resolution framework and SMA position
Asset Quality – COVID resolution framework and SMA position Restructuring Book (31st Dec 2023) SMA Position (INR 5 Cr and above) 31st December, 2022 31st December , 2023 Segment (INR Cr) RF1.0 (O/s Amount) RF2.0 (O/s Amount) O/s % to Gross O/s % to Gross Category MSME 894 1,900 Amount advances Amoun
Slide 25: Investments
Investments Composition of Investments 100% 90% 29% 25% 25% 22% Category (INR Cr) Mar-21 Mar-22 Mar-23 Dec-23 80% 70% SLR 2,40,298 2,64,164 2,60,252 2,67,367 60% 50% 40% 71% 75% 75% 78% Non-SLR 95,885 88,838 85,118 75,439 30% 20% 10% Commercial Paper 6,715 6,401 7,047 4,053 0% FY21 FY22 FY23 9MFY24
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: Awards and Accolades
Awards and Accolades Vmware “Hero for Good” Award 2023 IBSi Global Fintech Innovation Award 2023 0.29 0.36 0.29 Received ISO27701:2019 PMS (Privacy Best Government Led Assistive Information Management System) Technology Award Certification 2nd Rank amongst all PSBs in EASE 6.0 for Q2FY24 Global Reta
Slide 28: Thank You
VYOM Thank You See ew ewe ew ew ewe ew ew ew ew ew ee ew ew ew ew ee we ee ee ee ew eee we ew ewe ew ewe ew ee ee ee ee ee -
Slide 29: Annexures
VYOM Annexures See ew ewe ew ew ewe ew ew ew ew ew ee ew ew ew ew ee we ee ee ee ew eee we ew ewe ew ewe ew ee ee ee ee ee -
Slide 30: Shareholding Pattern
Shareholding Pattern Shareholding Pattern (%) as on 31st December, 2023 Particulars As on 31.12.2023 3.97 12.29 Govt. of India Share Capital (INR Cr) 7,412 6.75 FII No. of Equity Shares (# in Cr) 741.24 DII 76.99 Promoter Holding (%) 76.99% Public & Others Market Cap (INR Cr)* 88,282 * Closing Price
Slide 31: Standalone Profit & Loss
Standalone Profit & Loss Parameters (INR Cr) FY21 FY22 FY23 9MFY23 9MFY24 1. Interest on Advances 45,766 45,236 56,760 41,101 52,520 2. Interest on Investments 20,574 19,943 21,355 15,902 16,859 3. Other Interest Income 2,428 2,766 2,628 1,736 4,049 4. Total Interest Income (1+2+3) 68,767 67,944 80,
Slide 32: Standalone Balance Sheet
Standalone Balance Sheet As on 31st March As on 31st December As on 31st December Parameters (INR Cr) As on 31st March 2021 As on 31st March 2023 2022 2022 2023 LIABILITIES Capital 6,407 6,835 6,835 6,835 7,412 Reserves and surplus 58,070 63,741 71,499 69,515 86,053 Deposits 9,23,805 10,32,393 11,17
Slide 33: Sector wise exposure
Sector wise exposure As on 31st December 2022 As on 31st December 2023 %mix to domestic %mix to domestic Particulars (INR Cr) Outstanding Outstanding advances advances Infrastructure 1,16,437 14.87 99,720 11.51 NBFCs and HFCs 1,06,400 13.59 1,25,540 14.49 Basic Metal Products 23,514 3.00 25,087 2.89
Slide 34: Abbreviations
Abbreviations NII Net Interest Income NIM Net Interest Margin RoA Return on Assets RoE Return on Equity PAT Profit After Tax PCR Provisioning Coverage Ratio STP Straight Through Process KCC Kisan Credit Card BC Business Correspondent NBFC Non Banking Financial Company SAMB Stressed Asset Management
Slide 35: Formulas
Formulas NII (Net Interest Income) Total Interest Income – Total Interest Expenses NIM (Net Interest Margin) Net Interest Income / Average Earning Assets CASA Ratio CASA Deposits / Total Deposits GNPA Gross NPA / Gross Advances NNPA NNPA / Net Advances PCR (Provisions + Technical Write off) / (GNPA
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