Union Bank Of India Limited · NSE:UNIONBANK
Union Bank Of India — Q2 FY20 Earnings Presentation
43 slides from Union Bank Of India's earnings presentation, Nov 14, 2019
Slide 1: Financial Results Q2 FY20 & H1 FY20
Financial Results Q2 FY20 & H1 FY20 Please follow us on: November 14, 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 Group Entities 2
Slide 3: Snapshot as on September 30, 2019
Snapshot as on September 30, 2019 Total Business ` 769936 crore Global Business 7.3% Gross Advances ` 327057 crore Retail Total Advance Deposit Total Deposits ` 442879 crore 15.7% 11% YoY Operating Profit(H1FY20) ` 4127 crore Growth FY 20 Basel III Tier I Ratio 12.83 % Domestic Savings Advance Depos
Slide 4: Business Performance - Liabilities
Business Performance - Liabilities (` crore) Total Deposit 442879 430014 3435 11 % YOY 415915 3055 399092 2816 2207 439444 10.7% 426959 413099 YOY 396885 Sep-18 Mar-19 Jun-19 Sep-19 Domestic deposit Overseas deposit CASA Portfolio CASA+Retail TD as % of Total Domestic 34.1% 34.7% 34.4% 34.0% Deposit
Slide 5: Business Performance - Assets
Business Performance - Assets Gross Advances (` crore) 318563 325392 321473 327057 2.7 % YOY 14460 14584 17608 16556 2.5 % YOY 302007 310932 306889 309449 Sep-18 Mar-19 Jun-19 Sep-19 Domestic Advances Overseas advances Retail 15.7% YOY Agriculture 4% YOY MSME 4.5% YOY 57735 59335 48971 67174 68888 5
Slide 6: Diversified Loan Portfolio - RAM
Diversified Loan Portfolio - RAM RAM* share (%) in Domestic advances Retail 57.0 55.7 55.8 54.2 28.2 47.4 3.4 7.9 6.0 7.0 Sep-18 Mar-19 Jun-19 Sep-19 Home Vehicle Education Mortgage Personal Others (incl. HFC+Staff loans) *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(%) 38 37 37 36 More than 64% of Agri. portfolio is 62 63 63 64 for Small & Marginal farmers Sep-18 Mar-19 Jun-19 Sep-19 Small & Marginal Other Agri Composition of MSME loan book(%) 24 25 25 26 74% of 43 41 41 40 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 Sep-19 ` Crore ` Crore ` Crore % Share 1 Infrastructure 52200 53325 53367 17.2 2 NBFCs and HFCs 38156 41563 43747 14.1 w/w HFCs 13134 13750 14491 4.7 3 Trade 39259 39942 37329 1
Slide 9: Investments
Investments Global Investment (` Crore) 130063 128415 142506 170781 26 25 23 27 74 75 77 73 Sep-18 Mar-19 Jun-19 Sep-19 SLR(%) Non-SLR(%) Duration Particulars (Domestic) Jun 2019 Sep 2019 (Years) (` Crore) (` Crore) Jun-19 Sep-19 Available for Sale 56323 59445 2.14 2.74 W/w SLR 36157 37641 1.76 2.74
Slide 10: Overseas Operations
Overseas Operations Business from Overseas Operations Growth (%) US $ in billion Sep Jun Sep (` crore) 2018 2019 2019 Y-o-Y Y-o-Y (US$) (INR) 2.6 2.5 2.9 Total Business 11.5 12.1 (18764) (17638) (21043) 0.3 0.4 0.4 Total Deposits 33.3 55.6 (2207) (3055) (3435) 2.3 2.1 2.4 Total Advances 4.3 6.4 (165
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 Sep 30, 2019 107 Lakh Deposits ` 2453 Crore RuPay Cards issued 65.63 Lakh Aadhar Seeding 8
Slide 12: Progress under Government Initiatives
Progress under Government Initiatives Total outstanding under Mudra loan: ` 6918 crore Progress under Mudra Yojana April to September 2019 (PMMY) No. of Sanctioned Amount Outstanding Amount Category Accounts (` crore) (` crore) Shishu (< ` 50k) 33793 58 42 Kishor (Above ` 50k-5 Lakh) 44815 955 792 T
Slide 13: Statement of Assets & Liabilities
Statement of Assets & Liabilities (` crore) As at As at As at As at Growth (%) 30.09.18 31.03.19 30.06.19 30.09.19 Y-o-Y Q-o-Q LIABILITIES Capital 1169 1763 1763 1763 50.8 0.0 Reserves and surplus 24243 24724 24948 23635 -2.5 -5.3 Share application 0 0 0 11768 -- -- Deposits 399092 415915 430014 442
Slide 14: Table of Contents
Table of Contents #1 Business Performance #2 Financials #3 New Initiatives & Outcomes #4 Group Entities 14
Slide 15: Cost & Yield Ratio
Cost & Yield Ratio Parameters Sep-18 (Q2) Jun-19 (Q1) Sep-19 (Q2) H1 FY 2019 H1 FY 2020 Domestic Global Domestic Global Domestic Global Domestic Global Domestic Global Cost of Deposit 5.54 5.52 5.63 5.61 5.68 5.66 5.54 5.51 5.65 5.63 Cost of Funds 4.98 4.87 4.96 4.93 4.79 4.76 4.94 4.84 4.89 4.86 Yi
Slide 16: Movement of NIM
Movement of NIM NIM : Quarterly NIM NIM (on Avg. Earning Assets) (on AEA excl.GNPA) 2.38 2.44 2.27 2.35 2.18 2.18 2.17 2.12 2.54 2.61 2.44 2.36 Sep-18 Mar-19 Jun-19 Sep-19 Sep-18 Mar-19 Jun-19 Sep-19 NIM Domestic NIM Global Global NIM : Half-Yearly NIM NIM (on Avg. Earning Assets) (on AEA excl.GNPA)
Slide 17: Net Interest Income
Net Interest Income (` crore) 16.5% YOY 2494 2602 2519 2906 Sep-18 Mar-19 Jun-19 Sep-19 5.9% YOY 5120 5425 H1 FY 2019 H1 FY 2020 17
Slide 18: Operating Revenues
Operating Revenues Growth Growth Sep-18 Mar-19 Jun-19 Sep-19 H1 H1 Growth Parameters (%) (%) (Q2) (Q4) (Q1) (Q2) FY19 FY20 (%) YoY QoQ Interest Income 8539 8349 8898 9414 10.2 5.8 17240 18312 6.2 Interest Expense 6045 5748 6380 6508 7.7 2.0 12120 12887 6.3 Net Interest Income 2494 2602 2519 2906 16.
Slide 19: Non Interest Income
Non Interest Income Growth Growth Sep-18 Mar-19 Jun-19 Sep-19 H1 H1 Growth Parameters (%) (%) (Q2) (Q4) (Q1) (Q2) FY19 FY20 (%) YOY QOQ a. Core Non Interest Income 641 867 481 605 -5.6 25.8 1296 1087 -16.1 b. Treasury Income 153 266 345 379 147.7 9.9 441 724 64.2 W/w Profit on Sale of 82 188 255 2
Slide 20: Operating Profit
Operating Profit (` crore) Operating Profit(Quarterly) 2240 1832 1887 1730 22.3% YOY Sep-18 Mar-19 Jun-19 Sep-19 Operating Profit(Half-Yearly) 4127 3981 3.6% YOY H1FY19 H1FY20 20
Slide 21: Provisions
Provisions (` crore) Sep-18 Mar-19 Jun-19 Sep-19 H1 H1 Parameters FY19 FY20 (Q2) (Q4) (Q1) (Q2) NPAs 1710 5783 1431 3328 3513 4759 Standard Assets 21 21 -98 570 45 472 Depreciation on Investment 146 -26 78 -91 173 -13 Shifting Loss 0 0 4 0 411 4 Restructured Advances -229 -102 25 -21 -254 4 Others (
Slide 22: Net Profit
Net Profit Net profit(Quaterly) (` crore) 225 139 Sep-18 Mar-19 Jun-19 Sep-19 -1194 -3370 Net Profit(Half-Yearly) 269 H1FY19 H1FY20 -969 22
Slide 23: Efficiency/Profitability Ratios
Efficiency/Profitability Ratios Return on Avg. Assets (%) Cost to Income(%) 0.17 55.3 0.11 0.11 46.0 46.2 44.7 45.39 44.92 Sep-18 Mar-19 Jun-19 Sep-19 H1 H1 (Q1) (Q4) (Q1) (Q2) FY19 FY20 -0.87 -0.37 -2.71 Sep-18 Mar-19 Jun-19 Sep-19 H1 H1 (Q1) (Q4) (Q1) (Q2) FY19 FY20 S. Sep-18 Mar-19 Jun-19 Sep-19
Slide 24: Efficiency Ratios
Efficiency Ratios Sep-18 Mar-19 Jun-19 Sep-19 H1 H1 Sn. Profitability Parameters (Q2) (Q4) (Q1) (Q2) FY 19 FY 20 Business per 1 ` crore 166.8 172.7 175.3 179.7 166.8 179.7 Branch Business per 2 ` crore 18.9 19.9 20.0 20.3 18.9 20.3 employee Gross Profit per 3 ` crore 1.6 1.6 1.8 2.1 1.8 1.9 Branch G
Slide 25: Asset Quality: Movement in Non Performing Assets
Asset Quality: Movement in Non Performing Assets (` crore) Sep-18 Mar-19 Jun-19 Sep-19 H1 H1 Parameters (Q2) (Q4) (Q1) (Q2) FY 19 FY 20 Gross NPAs - Opening 50973 49713 48729 48812 49370 48729 Add : Additions 2667 3275 3090 4219 7319 7309 Less : Reductions 3483 4259 3007 3181 6532 6188 1. Recoveries
Slide 26: Asset Quality: Sectoral
Asset Quality: Sectoral (` crore) Sectoral NPA % Slippages During Sectors NPAs Sep 2019 Q2 FY 20 Sep-18 Jun-19 Sep-19 Retail Loans 450 1637 2.49 2.44 2.76 Agriculture 990 5455 7.62 9.96 11.32 Micro & Small (MSE) 632 6856 12.21 13.4 13.4 Medium & Large 2147 35902 22.82 23.7 23.6 Total 4219 49850 15.7
Slide 27: Asset Quality: Sectoral
Asset Quality: Sectoral Standard as on Jun 2019 Standard as on Sep 2019 Scheme Amount Amount Account Account (Rs. in crore) (Rs. in crore) 5:25 11 2795 10 2680 SDR 1 0* 1 0* S4A 2 66 1 12 *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 Sep 30, 2019 6028 3624 9652 Total Provisions held upto Sep 30, 2019 4961 3016 7977 Provision Coverage Ratio as of Sep 30, 201
Slide 29: Basel III : Capital Adequacy
Basel III : Capital Adequacy 32119 32796 32644 44160 278172 278344 285586 291613 15.14 11.43 11.55 11.78 12.83 9.02 9.48 9.27 7.54 8.02 7.87 11.46 Sep-18 Mar-19 Jun-19 Sep-19 CET-1 Tier1 CRAR RWA Capital funds RWA Optimization 87.3 88.8 89.2 86.0 85.5 58.2 57.4 56.3 56.9 54.8 Sep-18 Dec-18 Mar-19 Ju
Slide 30: Shareholding Pattern
Shareholding Pattern September-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 ` 28858 crore Public & others 74.28% Market Cap ` 9309 crore Government of India has infused `11,768 crore during September-2019 quarter. The same has
Slide 31: 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) (23) 30% Uttarakhand (84) (115) Haryana (110)
Slide 32: Table of Contents
Table of Contents #1 Business Performance #2 Financials #3 New Initiatives & Outcomes #4 Group Entities 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) (Sep-19) ULP 74 75 Retail (Housing and Mortgage Loan) USK 38 45 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 Rating Matrix of Outstanding Corporate Retail CIBIL Rating Profile Loans (> `5 crore) `142547 ` 168519 42 26 19 63 13 15 29 58 67 17 29 20 Mar-17 Sep-19 FY17 H1FY20
Slide 35: Digital Banking Initiatives
Digital Banking Initiatives Key Highlights 43 LACS MOBILE BANKING USERS. 1.92 lakh Debit Card ISSUED 54000+ pos MERCHANTS 6798 atmS 22+ Lakhs Internet BANKING USERS.
Slide 36: Table of Contents
Table of Contents #1 Business Performance #2 Financials #3 New Initiatives & Outcomes #4 Group Entities 36
Slide 37: Group Entities
Group Entities Union Bank of India (UK) Limited Union Asset Management Company Private Limited Union Trustee Co. Pvt. Limited Star Union Dai-ichi Life Insurance Co. Limited Kashi Gomti Samyut Gramin Bank, Varanasi 37
Slide 38: Details of Group Entities
Details of Group Entities Equity Bank’s Nature of Name of Entity Relationship Investment Ownership Activity (` in Crore) Union Bank of India (UK) Limited Subsidiary 100% 649.33 Banking Union Asset Management Co. Private Limited Subsidiary 100% 186.29 Mutual Fund Union Trustee Co. Pvt. Limited Subsid
Slide 39: Key Financials for H1FY20
Key Financials for H1FY20 (` crore) Name of Entity Total Assets Total Revenue Net Profit Union Bank of India (UK) Limited 3285.58 75.64 1.21 Union Asset Management Co. Private Limited 193.18 21.23 1.39 Union Trustee Co. Pvt. Limited 0.18 0.10 0.02 Star Union Dai-ichi Life Insurance Co. Limited 9261.
Slide 40: Group Entities
Group Entities Union Asset Management Company Private Limited (` crore) Name of Entity Total Assets Total Revenue Net Profit Union Asset Management Co. Private Limited 193.18 21.23 1.39 Avg. Asset Under Management Key Highlights Japan-based insurer Dai-ichi group invested `133.4 crore in Union AMC
Slide 41: Group Entities
Group Entities Star Union Dai-ichi Life Insurance Co. Limited (` crore) Name of Entity Total Assets Total Revenue Net Profit Star Union Dai-ichi Life Insurance Co. Limited 9261.66 1191.44 10.29 Key Highlights Particulars FY19 Q1FY20 Q2FY20 As of Sept 2019, SUD Life Total Premium 1994.1 345.4 545.8
Slide 42: 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 43: Investor queries
Investor queries: investor.relations@unionbankofindia.com 43