Union Bank Of India Limited · NSE:UNIONBANK
Union Bank Of India — Q1 FY2019 Earnings Presentation
38 slides from Union Bank Of India's earnings presentation, Aug 10, 2018
Slide 1: Financial Results Q1/FY19
Financial Results Q1/FY19 Aug 10, 2018 Please follow us on: @unionbankofindia @UnionBank Tweets UnionBankInsta UnionBankofIndiaUtube UnionBankofIndia
Slide 2: Table of Contents
Table of Contents #1 Business Performance #2 Financials #3 New Initiatives #4 Awards & Accolades 2
Slide 3: Snapshot as on June 30, 2018
Snapshot as on June 30, 2018 Total Business ` 724475 crore Gross Advances ` 318615 crore Total Deposits ` 405860 crore Operating Profit ` 2089 crore Basel III Tier I CAR 8.99 % Basel III Total CAR 11.45 % Branches 4302 ATMs 7556* *Excluding 5407 Micro-ATM 3
Slide 4: Strong Liability Franchise
Strong Liability Franchise Total Deposits CASA Portfolio (` crore) 6.9 % YOY 8 % YOY 408502 405860 133412 135537 139241 138035 398518 129588 5305 3738 386025 7456 375796 104761 108575 114183 115476 6994 107522 403197 402122 6246 391062 379031 369550 28651 26962 22066 25058 22559 Jun-17 Sep-17 Dec-17
Slide 5: Diversified Loan Portfolio
Diversified Loan Portfolio Gross Advances (` crore) 7.9 % YOY 309953 314474 313860 318615 295175 277015 281028 288336 298826 265683 29492 32938 33446 25524 19789 Jun-17 Sep-17 Dec-17 Mar-18 Jun-18 Domestic Advances Overseas advances Gross advances 18% YOY Retail Agriculture 2.6 % YOY MSME 5.4 % YOY
Slide 6: Diversified Loan Portfolio
Diversified Loan Portfolio RAM* share (%) in Domestic advances 55.4 54.1 54.5 55.0 53.3 Jun-17 Sep-17 Dec-17 Mar-18 Jun-18 Composition of Advances Retail Agriculture MSME 22.0 Home 2.7 39.5 Vehicle 30.3 Industry Education 50.8 60.5 Services LAP 9.9 69.7 Personal Others 6.6 8.0 SMF Other Agri *Retail
Slide 7: Diversified Loan Portfolio
Diversified Loan Portfolio Top 10 Sectors S No. Sectors (% Share in Domestic Advance) Jun Mar Jun-18 2017 2018 ` Crore % Share 1 Infrastructure 12.4 16.4 51477 17.2 2 Retail Advances 15.9 17.2 49961 16.7 3 Agriculture 16.6 15.9 45251 15.1 4 Trade 11.3 12.3 36707 12.3 5 NBFCs 11.9 11.7 34578 11.6 6 B
Slide 8: Investments
Investments Investment (` Crore) 132901 129343 126524 124436 122228 Jun-17 Sep-17 Dec-17 Mar-18 Jun-18 (` crore) Jun Duration Investment Composition (%) 2018 (Years) Mar-18 Jun-18 35% Held to Maturity 86579 4.2 4.6 Held to Maturity 65% Held for Trading Available for Sale 46058 4.6 3.1 0% Available f
Slide 9: Overseas Operations
Overseas Operations Business from Overseas Operations Growth (%) US $ in billion Jun Mar Jun (` crore) 2017 2018 2018 Y-o-Y Y-o-Y (US$) (INR) 5.6 4.7 3.4 Total Business -39.3 -34.2 (35738) (30829) (23527) 1.0 0.8 0.5 Total Deposits -48.3 -40.2 (6246) (5305) (3738) 4.6 3.9 2.9 Total Advances -36.5 -3
Slide 10: Statement of Assets & Liabilities
Statement of Assets & Liabilities (` crore) As at As at As at Growth (%) 30.06.17 31.03.18 30.06.18 Y-o-Y Q-o-Q LIABILITIES Capital 687 1169 1169 70.2 0.0 Share Application Money 541 0 0 -100.0 0.0 Reserves and surplus 22846 23928 24091 5.4 0.7 Deposits 375796 408501 405860 8.0 -0.6 Borrowings 38991
Slide 11: Table of Contents
Table of Contents #1 Business Performance #2 Financials #3 New Initiatives #4 Awards & Accolades 11
Slide 12: Cost & Yield Ratio
Cost & Yield Ratio Parameters Jun-17 (Q1) Mar-18 (Q4) Jun-18 (Q1) Domestic Global Domestic Global Domestic Global Cost of Deposit 5.91 5.84 5.58 5.52 5.53 5.50 Cost of Funds 5.30 5.03 4.93 4.69 4.90 4.81 Yield on Advances 8.60 8.05 7.78 7.29 8.19 7.90 Yield on Investment 6.97 6.92 6.83 6.76 6.90 6.8
Slide 13: Movement of NIM & NII
Movement of NIM & NII 2.40 2.34 2.34 2.7 2.30 2.20 2.19 2.6 2.20 2.5 2.10 1.99 2.4 2.23 2.26 2.00 2.3 1.90 2.2 2.06 2.08 1.80 2.1 1.70 1.9 2 1.60 1.9 1.50 1.8 Jun-17 Sep-17 Dec-17 Mar-18 Jun-18 NIM Global NIM Domestic 17% YOY (` crore) 2626 2548 2321 2243 2193 Jun-17 Sep-17 Dec-17 Mar-18 Jun-18 Net
Slide 14: Non Interest Income
Non Interest Income Jun-17 Mar-18 Jun-18 Growth (%) Growth (%) Parameters (Q1) (Q4) (Q1) YoY QoQ a. Core Non Interest Income 606 1127 707 16.7 -37.2 b. Treasury Income 789 277 288 -63.4 4.1 W/w 652 132 194 -70.3 47.3 Profit on Sale of Investments Exchange Profit 137 145 95 -30.7 -34.9 c. Recover
Slide 15: Operating Profit
Operating Profit (` crore) 1.56% YOY 2089 2057 1890 Jun-17 Mar-18 Jun-18 15
Slide 16: Provisions
Provisions (` crore) Jun-17 Mar-18 Jun-18 Parameters (Q1) (Q4) (Q1) NPAs 1876 5639 1803 Standard Assets -61 -737 24 Depreciation on Investment -426 1120 27.1 Shifting Loss 367 0 411 Restructured Advances -43 -183 -25 Others (FITL etc) -9 -171 -11 Taxation 236 -1195 -270 Total 1940 4473 1959 16
Slide 17: Provisions
Provisions Provision for accounts referred to NCLT under IBC 2016 (` crore) st nd 1 list 2 list Total Exposure to number of accounts referred under 10 16 26 IBC (as per RBI list) Loan Outstanding as of June 30, 2018 6319 4487 10806 Total Provisions held upto June 30, 2018 4007 3096 7103 Provision Co
Slide 18: Net Profit
Net Profit (` crore) 11.1% YOY 130 117 Jun-17 Mar-18 Jun-18 -2583 18
Slide 19: Efficiency/Profitability Ratios
Efficiency/Profitability Ratios Return on Avg. Assets (%) Cost to Income(%) 48.63 0.10 0.10 45.52 43.79 Jun-17 (Q1) Mar-18 (Q4) Jun-18(Q1) -2.05 Jun-17 (Q1) Mar-18 (Q4) Jun-18(Q1) S. No. Efficiency Parameters Jun-17 Mar-18 Jun-18 (Q1) (Q4) (Q1) 1 *Return on Equity (%) 2.46 -55.92 2.88 2 Book Value P
Slide 20: Efficiency Ratios
Efficiency Ratios Jun-17 Mar-18 Jun-18 Sn. Profitability Parameters (Q1) (Q4) (Q1) 1 Business per Branch ` crore 156.6 167.9 168.4 2 Business per employee ` crore 17.7 19.2 19 3 Gross Profit per Branch ` crore 1.9 1.8 1.9 4 Gross Profit per Employee ` lacs 21.7 20.1 21.9 5 Net Profit per Branch ` la
Slide 21: Asset Quality: Movement in Non Performing Assets
Asset Quality: Movement in Non Performing Assets (` crore) Jun-17 Mar-18 Jun-18 Parameters (Q1) (Q4) (Q1) Gross NPAs - Opening 33712 40988 49370 Add : Additions 4453 10043 4652 Less : Reductions 879 1661 3049 1. Recoveries 328 387 1252 2. Up-gradation 211 42 371 3. Write Off 340 1233 1426 Gross NPAs
Slide 22: Asset Quality: Sectoral
Asset Quality: Sectoral (` crore) Sectoral NPA % Slippages During Sectors NPAs Jun 2018 Q1 FY 19 Jun-17 Mar-18 Jun-18 Retail Loans 389 1324 2.65 2.11 2.65 Agriculture 532 3120 7.98 6.05 6.90 Micro & Small (MSE) 290 5798 9.56 11.99 12.03 Medium & Large 3441 40731 17.36 23.34 23.25 Total 4652 50973 12
Slide 23: Asset Quality: Sectoral
Asset Quality: Sectoral Standard as on Mar 2018 Standard as on Jun 2018 Scheme Amount Amount Account Account (Rs. in crore) (Rs. in crore) 5:25 12 3627 12 3452 SDR 1 0* 1 0* S4A 2 116 3 126 *Account is Non-Fund Based S.N. Sector # Outstanding NPA Std. Restructured NPA + Std. Restructured (%) 1 Infra
Slide 24: Restructured Assets
Restructured Assets (` crore) Q1/FY19 Particulars Standard NPA Total Restructured Assets as on Mar 31, 2018 1235 12855 14090 Fresh Restructuring during the Quarter 127 19 145 Upgradation to Standard Restructured Accounts during the Quarter 1 -1 0 Restructured Standard Advances which cease to attract
Slide 25: Basel III : Capital Adequacy
Basel III : Capital Adequacy Capital Adequacy Ratio 97.2 RWA Optimization 91.2 89 12.01 11.50 11.45 2.77 2.43 2.46 64 58.7 58.1 9.24 9.07 8.99 Jun-17 Mar-18 Jun-18 Jun-17 Mar-18 Jun-18 Tier I Tier II CRAR RWA to Assets RWA to Advance (` crore) Particulars Jun-17 Mar-18 Jun-18 Risk Weighted Assets 28
Slide 26: Shareholding Pattern
Shareholding Pattern Jun-18 Share Capital ` 1168.5 crore 7.90% 19.88% No. of Equity Shares 116.85 crore Govt. of India FIIs DIIs 4.79% Public & others ` 18005 crore Net Worth 67.43% Market Cap ` 9576 crore 26
Slide 27: Extensive & specialized distribution network focused on the needs of the different business segments
Extensive & specialized distribution network focused on the needs of the different business segments Branch Distribution by Urbanization METRO RURAL 21% 29% Jammu & Kashmir URBAN Chandigarh (13) (17) 20% SEMI- (10) (24) Arunachal Pradesh URBAN Meghalaya (1) (1) Punjab Himachal Pradesh (5) (5) 30% (1
Slide 28: Financial Inclusion
Financial Inclusion Progress under Pradhan Mantri Jan Dhan Yojana (PMJDY) Parameters Achievements of the Bank Villages covered 18396 No. of BCs 5407 Sub Service Areas 5407 Urban Wards 2581 Accounts opened till June 30, 2018 87.61 Lakh Deposits ` 1899.3 Crore RuPay Cards issued 48.51 Lakh Aadhar Seed
Slide 29: Financial Inclusion
Financial Inclusion Total outstanding since inception under Mudra loan: ` 6196 crore Progress under Mudra Yojana April to June 2018 (PMMY) Category No. of Sanctioned Amount Outstanding Amount Accounts (` crore) (` crore) Shishu (< ` 50k) 7940 30 26 Kishor (Above ` 50k-5 Lakh) 25165 526 447 Tarun (Ab
Slide 30: Digital Banking
Digital Banking Expanding Digital banking base Y-o-Y Growth in Digital Banking Transactions through Alternate Channels (In %) Debit Cards 16.9% 75.7 76.0 73.1 71.2 67.0 Credit Cards Jun-17 Sep-17 Dec-17 Mar-18 Jun-18 Mobile Banking 19.3% 6000 5344 25.0 5000 4521 20.0 3675 Mobile banking users 4000 2
Slide 31: Digital Banking
Asmall remittance y)} g —— TO SAVE FOR eae? ae 2 Asecure future -y(& S —_——— TO LIVE FOR 4 | TRANSCENDING THE FRONTIERS OF THE ORDINARY javing Schemes CUSTOMIZING ae AT™ to grati our Banna eed 'S tr STAUGGLING TO PAY SMALL CHANGE? CHANGE TO BHIM AADHAAR PAY!
Slide 32: Table of Contents
Table of Contents #1 Business Performance #2 Financials #3 New Initiatives #4 Awards & Accolades 32
Slide 33: New Initiatives
New Initiatives Centralized processing hubs for improved underwriting and better efficiency Credit Centralization Leveraging sales team &alternate channels for mobilizing new business Customer Acquisition Monitoring & Recovery Early Identification of stress assets and faster resolution of bad assets
Slide 34: Strategic Initiatives
New Initiatives 35 10 SARAL 73 ULPs 8 USKs 8 25 SARALs Lite IFBs MCBs Credit Centralization Revamped MSME Revamped Retail USKs for Rural & IFBs & MCBs for loan processing loan processing Semi Urban loans corporate loans centre centre Strategic Initiatives Monitoring & Recovery Leveraging analytics f
Slide 35: Table of Contents
Table of Contents #1 Business Performance #2 Financials #3 New Initiatives #4 Awards & Accolades 35
Slide 36: Awards
Awards • SKOCH Order of Merit Award- CIMSME Award •Best Bank for Promotional Scheme Award – Runner up in Large Category TIMES Ascent Awards •Overall Award for Best Results Based Training •Most Innovative use of Training & Development as an HR Initiative for OD NPCI Award •Excellent Performance in Ru
Slide 37: 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 38: Investor queries: investor.relations@unionbankofindia.com
Investor queries: investor.relations@unionbankofindia.com 38
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