Union Bank Of India Limited · NSE:UNIONBANK
Union Bank Of India — Q1 FY20 Earnings Presentation
39 slides from Union Bank Of India's earnings presentation, Aug 2, 2019
Slide 1: Financial Results Q1 FY20
Financial Results Q1 FY20 Please follow us on: Aug 02, 2019 @unionbankofindia @UnionBank Tweets UnionBankInsta UnionBankofIndiaUtube UnionBankofIndia
Slide 2: Table of Contents
Table of Contents #1 Business Performance #2 Financials #3 New Initiatives & Outcomes #4 Awards & Accolades 2
Slide 3: Snapshot as on June 30, 2019
Snapshot as on June 30, 2019 Global Business Total Business ` 751487 crore 3.7% Gross Advances ` 321473 crore Retail Total Deposit Advances Total Deposits ` 430014 crore 5.9% 15.6% YoY Operating Profit(Q1FY20) ` 1887 crore Growth FY20 Basel III Tier I Ratio 9.27 % Domestic Saving Basel III Total CAR
Slide 4: Business Performance - Liabilities
Business Performance - Liabilities Total Deposits (` crore) 5.9 % YOY 430014 415915 3055 405860 402297 2816 3738 2670 426959 413099 6.2 % 402122 399627 YOY Jun-18 Dec-18 Mar-19 Jun-19 Domestic deposit Overseas deposit CASA Portfolio CASA & Avg CASA (%) 6 % YOY 150141 33.3 34.5 34.7 34.4 138035 14300
Slide 5: Business Performance - Assets
Business Performance - Assets Gross Advances (` crore) 325392 1 % YOY 317513 321473 318615 310932 306889 2.7 % YOY 298826 303330 19789 14183 14460 14584 Jun-18 Dec-18 Mar-19 Jun-19 Domestic Advances Overseas advances Retail 15.6% YOY Agriculture 4.8% YOY MSME 3.5% YOY 48971 67174 57092 57735 56524 6
Slide 6: Diversified Loan Portfolio - RAM
Diversified Loan Portfolio - RAM RAM* share (%) in Domestic advances Retail Jun-19 55.8 27.8 Mar-19 55.7 48.5 2.5 Dec-18 56.0 8.0 6.0 7.2 Jun-18 53.3 Home Vehicle Education Mortgage Personal Others *Retail, Agriculture and MSME collectively called as “RAM sector” 6
Slide 7: Diversified Loan Portfolio - RAM
Diversified Loan Portfolio - RAM Composition of Agri loan book(%) 39 38 37 37 More than 63% of Agri. portfolio is 61 62 63 63 for Small & Marginal farmers Jun-18 Dec-18 Mar-19 Jun-19 Small & Marginal Other Agri Composition of MSME loan book(%) 24 24 25 25 75% of 43 42 41 41 MSME portfolio is 33 34
Slide 8: Diversified Loan Portfolio-Industry Exposure
Diversified Loan Portfolio-Industry Exposure Top Sector Exposure S No. Sectors (% Share in Domestic Advance) Mar-19 Jun-19 ` Crore % Share ` Crore % Share 1 Infrastructure 52200 16.8 53325 17.4 2 NBFCs and HFCs 38156 12.3 41563 13.5 w/w HFCs 13134 4.2 13750 4.5 3 Trade 39259 12.6 39942 13.0 4 Constr
Slide 9: Investments
Investments Global Investment (` Crore) 132901 121289 128415 142506 25 26 25 23 75 74 75 77 Jun-18 Dec-18 Mar-19 Jun-19 SLR(%) Non-SLR(%) Duration Particulars (Domestic) Mar 2019 Jun 2019 (Years) (` Crore) (` Crore) Mar-19 Jun-19 Available for Sale 42322 56323 3.06 2.14 W/w SLR 20984 36157 3.07 1.76
Slide 10: Overseas Operations
Overseas Operations Business from Overseas Operations Growth (%) US $ in billion Jun Mar Jun (` crore) 2018 2019 2019 Y-o-Y Y-o-Y (US$) (INR) 3.4 2.4 2.5 Total Business -26.5 -25.0 (23527) (17276) (17638) 0.5 0.4 0.4 Total Deposits -20.0 -18.3 (3738) (2816) (3055) 2.9 2.0 2.1 Total Advances -27.6 -2
Slide 11: Financial Inclusion
Financial Inclusion Progress under Pradhan Mantri Jan Dhan Yojana (PMJDY) Parameters Achievements of the Bank Villages covered 18526 No. of BCs 5537 Sub Service Areas 5537 Urban Wards 2581 Accounts opened till Jun 30, 2019 101 Lakh Deposits ` 2404 Crore RuPay Cards issued 56.97 Lakh Aadhar Seeding 7
Slide 12: Financial Inclusion
Financial Inclusion Total outstanding under Mudra loan: ` 7140 crore Progress under Mudra Yojana April to June 2019 (PMMY) No. of Sanctioned Amount Outstanding Amount Category Accounts (` crore) (` crore) Shishu (< ` 50k) 12647 21 16 Kishor (Above ` 50k-5 Lakh) 16344 353 292 Tarun (Above ` 5 Lakh-10
Slide 13: Statement of Assets & Liabilities
Statement of Assets & Liabilities (` crore) As at As at As at Growth (%) 30.06.18 31.03.19 30.06.19 Y-o-Y Q-o-Q LIABILITIES Capital 1169 1763 1763 50.8 0.0 Reserves and surplus 24091 24724 24948 3.6 0.9 Deposits 405860 415915 430014 6.0 3.4 Borrowings 47397 42864 33878 -28.5 -21.0 Other Liabilities
Slide 14: Table of Contents
Table of Contents #1 Business Performance #2 Financials #3 New Initiatives & Outcomes #4 Awards & Accolades 14
Slide 15: Cost & Yield Ratio
Cost & Yield Ratio Parameters Jun-18 (Q1) Mar-19 (Q4) Jun-19 (Q1) Domestic Global Domestic Global Domestic Global Cost of Deposit 5.53 5.50 5.68 5.66 5.63 5.61 Cost of Funds 4.90 4.81 4.73 4.63 4.96 4.93 Yield on Advances 8.19 7.90 7.98 7.51 7.96 7.81 Yield on Investment 6.90 6.84 6.55 6.48 6.89 6.8
Slide 16: Movement of NIM
Movement of NIM NIM (on Avg. Earning Assets/AEA) 2.34 2.38 2.26 2.23 2.27 2.23 2.17 2.12 Jun-18 Dec-18 Mar-19 Jun-19 NIM Domestic NIM Global NIM (on AEA excl.GNPA) 2.54 2.51 2.54 2.36 Jun-18 Dec-18 Mar-19 Jun-19 NIM- Global 16
Slide 17: Movement of NII
Movement of NII (` crore) 2626 2602 2519 2493 Jun-18 Dec-18 Mar-19 Jun-19 17
Slide 18: Operating Revenues
Operating Revenues Jun-18 Dec-18 Mar-19 Jun-19 Growth (%) Growth (%) Parameters (Q1) (Q3) (Q4) (Q1) YoY QoQ Interest Income 8701 8477 8349 8898 2.3 6.6 Interest Expense 6075 5984 5748 6380 5.0 11.0 Net Interest Income 2626 2493 2602 2519 -4.1 -3.2 Non-Interest Income 1208 1095 1272 990 -18.0 -22.2 T
Slide 19: Non Interest Income
Non Interest Income Growth Growth Jun-18 Dec-18 Mar-19 Jun-19 Parameters (%) (%) (Q1) (Q3) (Q4) (Q1) YOY QOQ a. Core Non Interest Income 655 660 731 481 -26.6 -34.2 b. Treasury Income 288 191 266 345 19.8 29.7 W/w 194 110 188 255 31.4 35.6 Profit on Sale of Investments Exchange Profit 95 81 78 9
Slide 20: Operating Profit (Quarterly)
Operating Profit(Quarterly) (` crore) 2149 1887 1810 1730 Jun-18 Dec-18 Mar-19 Jun-19 20
Slide 21: Provisions
Provisions (` crore) Jun-18 Dec-18 Mar-19 Jun-19 Parameters (Q1) (Q3) (Q4) (Q1) NPAs 1803 2139 5783 1431 Standard Assets 24 71 21 -98 Depreciation on Investment 27 -551 -26 78 Shifting Loss 411 0 0 4 Restructured Advances -25 0 -102 25 Others (FITL etc) 49 18 91 78 Taxation -270 -20 -667 143 Total 2
Slide 22: Net Profit (Quarterly)
Net Profit(Quarterly) (` crore) 225 153 130 Jun-18 Dec-18 Mar-19 Jun-19 -3370 22
Slide 23: Efficiency/Profitability Ratios
Efficiency/Profitability Ratios Return on Avg. Assets (%) Cost to Income(%) 0.17 0.12 55.3 49.6 0.1 46.2 44.0 Jun-18(Q1) Dec-18 Mar-19 Jun-19 (Q1) (Q3) (Q4) -2.71 Jun-18(Q1) Dec-18(Q3) Mar-19(Q4) Jun-19 (Q1) Jun-18 Dec-18 Mar-19 Jun-19 S. No. Efficiency Parameters (Q1) (Q3) (Q4) (Q1) 1 Return on Equ
Slide 24: Efficiency Ratios
Efficiency Ratios Jun-18 Dec-18 Mar-19 Jun-19 Sn. Profitability Parameters (Q1) (Q3) (Q4) (Q1) 1 Business per Branch ` crore 168.4 167.7 172.7 175.3 2 Business per employee ` crore 19.0 19.1 19.9 20.0 3 Gross Profit per Branch ` crore 2.0 1.7 1.6 1.8 Gross Profit per 4 ` lacs 22.5 19.2 18.6 20.2 Emp
Slide 25: Asset Quality: Movement in Non Performing Assets
Asset Quality: Movement in Non Performing Assets (` crore) Jun-18 Dec-18 Mar-19 Jun-19 Parameters (Q1) (Q3) (Q4) (Q1) Gross NPAs - Opening 49370 50157 49713 48729 Add : Additions 4652 2983 3275 3090 Less : Reductions 3049 3427 4259 3007 1. Recoveries 1252 1287 762 482 2. Up-gradation 371 510 650 288
Slide 26: Asset Quality: Sectoral
Asset Quality: Sectoral (` crore) Sectoral NPA % Slippages During Sectors NPAs Jun 2019 Q1 FY 20 Jun-18 Mar-19 Jun-19 Retail Loans 292 1408 2.65 2.09 2.44 Agriculture 891 4724 6.90 8.16 9.96 Micro & Small (MSE) 977 6649 12.03 11.53 13.4 Medium & Large 930 36031 23.25 24.42 23.7 Total 3090 48812 16.0
Slide 27: Asset Quality: Sectoral
Asset Quality: Sectoral Standard as on Mar 2019 Standard as on Jun 2019 Scheme Amount Amount Account Account (Rs. in crore) (Rs. in crore) 5:25 10 2670 11 2795 SDR 1 0* 1 0* S4A 2 66 2 66 *Account is Non-Fund Based S.N. Sector # Outstanding NPA Std. Restructured NPA + Std. Restructured (%) 1 Infrast
Slide 28: Asset Quality - NCLT I & II
Asset Quality - NCLT I & II (` crore) st nd Particulars 1 list 2 list Total Exposure to number of accounts referred under 8 15 23 IBC (as per RBI list) Loan Outstanding as of Jun 30, 2019 6024 3664 9688 Total Provisions held upto Jun 30, 2019 4084 3056 7140 Provision Coverage Ratio as of Jun 30, 201
Slide 29: Basel III : Capital Adequacy
Basel III : Capital Adequacy 32472 31213 32796 32644 283552 272974 278344 285586 11.78 11.43 11.45 11.43 9.48 9.27 8.99 9.02 7.50 7.50 8.02 7.87 Jun-18 Dec-18 Mar-19 Jun-19 CET-1 Tier I CRAR RWA Capital funds RWA Optimization 89 88.8 86.0 85.5 58.1 57.4 56.3 56.9 Jun-18 Dec-18 Mar-19 Jun-19 RWA to A
Slide 30: Shareholding Pattern
Shareholding Pattern June-19 Share Capital ` 1763 crore 9.69% Govt. of India No. of Equity Shares 176.30 crore 13.10% FIIs 2.93% DIIs Net Worth ` 19283 crore Public & others 74.28% Market Cap ` 14289 crore During Q1FY20, the Bank exercised call option on `200 crore of Basel II compliant perpetual bo
Slide 31: Extensive & specialized distribution network
Extensive & specialized distribution network Branch Distribution by Urbanization METRO RURAL 21% 29% Jammu & Kashmir URBAN Chandigarh (13) (16) 20% SEMI- (10) (19) Arunachal Pradesh URBAN Meghalaya (1) (1) Punjab Himachal Pradesh (5) (4) 30% (140) (134) (20) (23) Uttarakhand (84) (98) Haryana (110)
Slide 32: Table of Contents
Table of Contents #1 Business Performance #2 Financials #3 New Initiatives & Outcomes #4 Awards & Accolades 32
Slide 33: New Initiatives & Outcomes
New Initiatives & Outcomes More than 70% of Credit Appraisal centralized Structural Development: Creation of Centralized Processing Centres (CPCs) No of Units No. of Units Particulars Sectors covered (Mar-19) (Jun-19) ULP 74 74 Retail (Housing and Mortgage Loan) USK 38 41 Retail, Agriculture and MSM
Slide 34: New Initiatives & Outcomes
New Initiatives & Outcomes Rated Advances - Lending to higher rated borrowers… Maintained rating profile of new retail loans sanctioned Retail CIBIL Rating Profile Rating Matrix of Outstanding Corporate Loans 43 43 `162034 ` 161527 26 30 20 20 31 27 17 13 FY19 Q1FY20 750 & Above 700-750 Below 700 Ex
Slide 35: Initiatives under PSB Reforms Agenda
Initiatives under PSB Reforms Agenda Introduction of Job family concept Online OTS platform for NPA borrowers Strengthened Risk Management practices Availability of additional languages & services on U- Mobile app Implementation of IT-based Performance Management System Door step banking to senior c
Slide 36: Table of Contents
Table of Contents #1 Business Performance #2 Financials #3 New Initiatives & Outcomes #4 Awards & Accolades 36
Slide 37: Awards
Awards BFSI Award Kantar’s CX+ India Award •“Award for Digital Financial Inclusion Initiatives” – •“Exceptional Service Delivery 2019”- Public Governance Now Sector Bank Category SKOCH Award SKOCH Award •SKOCH Order-of-Merit – Successful migration of •SKOCH Gold Award - “Leadership in MSME” – CBS fr
Slide 38: 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 39: Investor queries: investor.relations@unionbankofindia.com
Investor queries: investor.relations@unionbankofindia.com 39