Union Bank Of India Limited · NSE:UNIONBANK
Union Bank Of India — Q3 FY2022 Earnings Presentation
63 slides from Union Bank Of India's earnings presentation, Feb 7, 2022
Slide 1: Financial Results Q3FY22
Financial Results Q3FY22 February 07, 2022 Please follow us on: @unionbankofindia @UnionBank Tweets UnionBankInsta UnionBankofIndiaUtube UnionBankofIndia 1 1
Slide 2: Union Bank: Sustained Improvement
Union Bank : Sustained Improvement GNPA(%) NNPA(%) NNPA to Net Worth(%) 6.9 107.42 15.0 14.6 13.7 5.2 80.82 11.62 4.6 4.1 62.70 47.89 Mar-19 Mar-20 Mar-21 Dec-21 Mar-19 Mar-20 Mar-21 Dec-21 Mar-19 Mar-20 Mar-21 Dec-21 PCR(%) Credit Cost(%)* CRAR(%) 13.92 3.58 3.15 78.21 81.27 82.80 12.56 66.24 2.11
Slide 3: Table of Contents
Table of Contents 1 Performance Highlights 4-5 2 Business Performance 6-20 3 Financials 21-32 4 Asset Quality and Capital 33-40 5 Digitization Journey & New Initiatives 41-49 6 EASE & ESG 50-54 7 Group Entities 55-61 3
Slide 4: Performance Highlights
Performance Highlights 4
Slide 5: Performance Highlights – Q3FY22
Performance Highlights – Q3FY22 161 4.73% 6.24% Total Business YoY Total Deposit CASA Share bps YoY YoY 327 187 82 RAM Share bps GNPA bps NNPA bps YoY YoY YoY 94 96 91 CRAR bps CET-1 bps Credit Cost bps YoY YoY QoQ 560 NNPA to Net Net Interest 8.88% Net Profit 49.29 bps % Worth QoQ Income YoY Rs.1,0
Slide 6: Business Performance
Business Performance 6
Slide 7: Business Performance - Liabilities
Business Performance - Liabilities ₹ in crore Total Deposits 8,82,423 9,23,805 9,14,022 9,37,455 6.24 % (YoY) 2,178 789 266 3,011 6.57 % 9,21,627 9,37,189 (YoY) 8,79,412 9,13,233 Domestic Deposits Dec-20 Mar-21 Sep-21 Dec-21 Domestic Deposits Overseas Deposits Total Deposits CASA Portfolio CASA+ Ret
Slide 8: Business Performance - Assets
Business Performance - Assets Gross Advances ₹ in crore 6,51,973 6,53,684 6,34,583 6,69,531 2.69 % YoY 16,748 16,012 15,446 15,822 6,35,225 6,37,672 6,19,137 6,53,709 Dec-20 Mar-21 Sep-21 Dec-21 Gross Advances Domestic Advances Overseas Advances Standard Advances Proportion of Proportion of 5,91,744
Slide 9: Business Performance - Assets
Business Performance - Assets ₹ in crore RAM Advances in 327 bps Retail 9.78 % Domestic Advances YoY YoY 1,28,190 1,32,164 1,25,427 1,20,386 58.02% 56.94% 55.17% 53.67% Dec-20 Mar-21 Sep-21 Dec-21 Dec-20 Mar-21 Sep-21 Dec-21 Agriculture MSME* 11.08% 6.38 % 1,28,152 YoY 1,24,897 YoY 1,11,874 1,20,124
Slide 10: Diversified Loan Portfolio - RAM
Diversified Loan Portfolio - RAM Composition of Retail Advances (%) Achievement under Priority Sector as on Dec-2021 Dec-20 19 RBI Achieved 4 Norms Particulars (as % of (as % of 10 ANBC) 54 ANBC) 6 7 Agriculture 18.00 18.67 Dec-21 Small and Marginal 20 9.00 12.90 Farmers 4 9 52 Weaker Section 11.00
Slide 11: Progress under Mudra Loans
Progress under Mudra Loans ₹ in crore Progress under Mudra Yojana (PMMY) April 21 - December 21 Total Outstanding NPA as on Amount as on 31.12.2021 No. of Sanctioned Outstanding 31.12.2021 Category Accounts Amount Amount Shishu (< 50k) 1,80,757 406 238 977 293 Kishor (Above 2,28,704 4,040 3,348 10,5
Slide 12: COVID Relief Schemes
COVID Relief Schemes Helping customers to tide over the liquidity crisis through various schemes (as on 31.12.2021) ₹ in crore PM SVANidhi 1 No of Loans – 3,28,123 Amount Sanctioned – 328.29 Union Guaranteed Emergency Credit Line (UGECL 1.0) 2 No of Loans – 3,72,988 Amount Sanctioned – 8538.58 Union
Slide 13: Diversified Loan Portfolio-Industry Exposure
Diversified Loan Portfolio-Industry Exposure ₹ in crore (% Share in Domestic Advances) S No Sectors Mar-21 Sep-21 Dec-21 Rs. In Crore % Share Rs. In Crore % Share Rs.In Crore % Share 1 Infrastructure 1,03,325 16.20 1,04,495 16.88 1,10,598 16.92 2 NBFCs and HFCs 72,015 11.29 64,339 10.39 70,218 10.74
Slide 14: Segment wise break up & rating of NBFC - Standard Exposure
Segment wise break up & rating of NBFC - Standard Exposure Rating Profile of Standard NBFC Exposure Segment wise exposure Breakup (in %) % Share Ratings 7 7 9 Dec-20 Sep-21 Dec-21 46 58 47 AAA 48.12 54.54 53.38 14 14 AA 35.13 30.47 31.46 12 33 30 23 A 15.29 13.65 13.57 Dec-20 Sep-21 Dec-21 BBB 1.29
Slide 15: Credit Rating Matrix & CIBIL Rating Profile
Credit Rating Matrix & CIBIL Rating Profile Post Centralization of Credit underwriting- Improved Rating Profile Rating Matrix of Outstanding Corporate Loans(> Rs. 5 Crore) Retail CIBIL Rating Profile in % in % 18 56 52 54 58 23 70 28 28 15 22 59 13 5 4 26 22 15 14 17 FY-17* FY-21 9MFY22 Mar-17* Dec-
Slide 16: Investments
Investments ₹ in crore % of SLR and Non SLR in Domestic Investments 3,29,974 3,36,184 3,33,871 3,36,146 29 28 27 27 71 72 73 73 Dec-20 Mar-21 Sep-21 Dec-21 SLR Non SLR Domestic Investments Particulars (Domestic) Dec-20 Sep-21 Dec-21 Dec-20 Sep-21 Dec-21 ₹ in crore Duration (Years) Available for Sale
Slide 17: Investments
Investments ₹ in crore Composition of Domestic Investments Category Dec-20 Sep-21 Dec-21 SLR Investments 2,35,126 2,42,965 2,46,439 Non-SLR Investments 94,848 90,904 89,707 Commercial Paper 6,005 4,029 4,279 Certificate of Deposits 1,901 1,946 1,228 Mutual Funds 781 473 563 Shares 5,800 5,27
Slide 18: Overseas Operations
Overseas Operations Business from Overseas Branches Overseas Branches US $ in billion Dec* Mar# Sep^ Dec^^ (₹ in 2020 2021 2021 2021 crore) 1.DIFC , Dubai Total 2.70 2.48 2.19 2.17 Business (19,759) (18,190) (16,238) (16,094) 2.Hong Kong Total 0.41 0.29 0.11 0.04 Deposits (3,011) (2,178) (790) (268)
Slide 19: Financial Inclusion
Financial Inclusion Total PMJDY Accounts (No. in Lakhs) Balance in PMJDY A/c ( Rs. In Crore) 238 7,037 230 6,465 6,680 217 5,837 204 Dec-20 Mar-21 Sep-21 Dec-21 Dec-20 Mar-21 Sep-21 Dec-21 Financial Inclusion Acc-Fresh Enrolments (in Lakhs) Terminal Figures (No. in Lakh) 11.56 10.69 Scheme Dec-20 De
Slide 20: Statement of Assets & Liabilities-Standalone
Statement of Assets & Liabilities-Standalone ₹ in crore As at As at As at As at Particulars 31.12.20 31.03.21 30.09.21 31.12.21 LIABILITIES Capital 6,407 6,407 6,835 6,835 Reserves and surplus 57,610 58,070 62,729 63,822 Deposits 8,82,423 9,23,805 9,14,022 9,37,455 Borrowings 57,242 51,837 51,863 54
Slide 21: Financials
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Slide 22: Cost & Yield Ratio (%)
Cost & Yield Ratio (%) Parameters Dec-20 (Q3) Sep-21 (Q2) Dec-21 (Q3) 9M FY 2021 9M FY 2022 Domestic Global Domestic Global Domestic Global Domestic Global Domestic Global Cost of 4.56 4.55 4.16 4.16 4.00 4.00 4.81 4.80 4.11 4.11 Deposits Cost of Funds 4.12 4.06 3.68 3.62 3.54 3.49 4.25 4.20 3.66 3.
Slide 23: Cost & Yield Ratio- Global (%) (Quarterly)
Cost & Yield Ratio- Global (%) (Quarterly) Cost of Deposit Cost of Funds Yield on Advances 4.06 7.25 7.12 7.20 4.55 3.74 4.27 3.62 3.49 6.24 4.16 4.00 Dec-20 Mar-21 Sep-21 Dec-21 Dec-20 Mar-21 Sep-21 Dec-21 Dec-20 Mar-21 Sep-21 Dec-21 Yield on Investment Yield onFunds Net Interest Margin 6.61 2.94 2
Slide 24: Movement of NIM (%)
Movement of NIM (%) Quarterly 2.98 2.94 2.98 2.95 3.04 3.00 2.40 2.38 Dec-20 Mar-21 Sep-21 Dec-21 Domestic Global 9-Months 3.03 3.00 2.86 2.81 2.75 2.71 9M FY21 FY-21 9M FY22 Domestic Global 24
Slide 25: Net Interest Income
Net Interest Income ₹ in crore Quarterly 7,174 6,590 6,829 5,403 8.88 % YoY Dec-20 Mar-21 Sep-21 Dec-21 9-Months 8.98 % 19,285 21,017 YoY 9M FY21 9M FY22 25
Slide 26: Operating Performance
Operating Performance ₹ in crore Growth Growth Dec-20 Mar-21 Sep-21 Dec-21 9M 9M Growth Parameters (%) (%) (Q3) (Q4) (Q2) (Q3) FY21 FY22 (%) YoY QoQ 1. Interest on Advances 11,452 9,970 11,165 11,270 -1.59 0.94 35,796 33,781 -5.63 2. Interest on Investments 5,161 4,911 4,916 4,930 -4.47 0.28 15,663
Slide 27: Non Interest Income
Non Interest Income ₹ in crore Growth Growth Dec-20 Mar-21 Sep-21 Dec-21 9M 9M Parameters (%) (%) Growth (Q3) (Q4) (Q2) (Q3) FY21 FY22 YoY QoQ (%) 1. Core Fee Based Income 1,321 1,522 1,230 1,316 -0.40 6.99 3,057 3,611 18.14 w/w a. Processing charges 286 309 247 245 -14.33 -0.81 594 709 19.36 on Adv
Slide 28: Operating Profit
Operating Profit ₹ in crore Quarterly 6,074 5,265 5,180 5,098 Dec-20 Mar-21 Sep-21 Dec-21 9-Months 11.18 % YoY 16,353 14,708 9M FY21 9M FY22 28
Slide 29: Provisions
Provisions ₹ in crore Dec-20 Mar-21 Sep-21 Dec-21 9M 9M Parameters (Q3) (Q4) (Q2) (Q3) FY21 FY22 NPAs 3,036 4,712 3,693 2,274 9,208 8,459 Standard Assets 2,227 -1,443 45 317 2,689 1,459 Provision on NPI (Investment) 23 539 -53 -89 649 -341 Restructured Advances -54 50 -4 -2 32 -24 FITL (Std) 8 23 55
Slide 30: Net Profit
Net Profit ₹ in crore Quarterly 1,526 49.29 % 1,330 YoY 1,085 727 Dec-20 Mar-21 Sep-21 Dec-21 9-Months 140.60 % 3,793 YoY 1,576 9M FY21 9M FY22 30
Slide 31: Efficiency/Profitability Ratios
Efficiency/Profitability Ratios Return on Average Assets(%) Cost to Income Ratio(%) 47.96 47.43 0.56 46.03 44.92 44.91 0.49 0.46 43.80 0.39 0.28 0.19 Dec-20 Mar-21 Sep-21 Dec-21 9M 9M Dec-20 Mar-21 Sep-21 Dec-21 9M FY21 9M FY22 FY21 FY22 S. Dec-20 Mar-21 Sep-21 Dec-21 9M 9M Efficiency Parameters No.
Slide 32: Efficiency Parameters
Efficiency Parameters ₹ in crore Dec-20 Mar-21 Sep-21 Dec-21 9M 9M Profitability Parameters (Q3) (Q4) (Q2) (Q3) FY21 FY22 Business per Branch 160.00 169.35 166.93 176.34 160.00 176.34 Business per employee 19.41 20.17 20.32 21.25 19.41 21.25 Gross Profit per Branch 2.21 2.22 2.62 2.24 1.96 2.39 Gros
Slide 33: Asset Quality & Capital
Asset Quality & Capital 33
Slide 34: OTR under COVID Resolution Framework as on 31.12.2021
OTR under COVID Resolution Framework as on 31.12.2021 ₹ in crore Resolution Framework 1.0 Resolution Framework 2.0 Outstanding Implemented Category Category (31.12.2021) (31.12.2021) MSME (Up to Rs.25 cr) 2,258 MSME 3,130 Personal Loans 3,438 Personal & Small Business 6,511 Agriculture Allied - Agri
Slide 35: Asset Quality: Movement in Non Performing Assets
Asset Quality: Movement in Non Performing Assets ₹ in crore Parameters Dec-20 Mar-21 Sep-21 Dec-21 9M 9M (Q3) (Q4) (Q2) (Q3) FY21 FY22 Gross NPAs - Opening 95,797 87,968 87,762 80,211 97,193 89,788 Add : Additions 332 14,688 6,745 3,411 2,755 17,205 Less : Reductions 8,160 12,869 14,296 5,836 11,980
Slide 36: Asset Quality: Sectoral
Asset Quality: Sectoral ₹ in crore Sectoral NPA % O/s NPA Slippages During Sectors as on Q3 FY 22 Dec 2021 Dec-20 Sep-21 Dec-21 Retail Loans 489 4,971 3.04 4.15 3.78 Agriculture 839 15,723 8.71 12.44 12.27 MSME 874 21,208 15.67 20.42 18.96 Large Corporate & Others 1,209 35,884 18.50 13.59 12.04 Tota
Slide 37: Status of NCLT Accounts
Status of NCLT Accounts RBI List 1 O/s RBI List 2 O/s Others- Admitted Total ₹ 5,776 Cr ( 6 A/c) ₹ 7,327 Cr (13 A/c) ₹ 47,552 Cr ( 512 A/c) ₹ 60,655 Cr ( 531 A/c) PCR on NCLT accounts 100% 99.45% 95.11% 96.10% RBI List 1 RBI List 2 Others Total (admitted) 37
Slide 38: Basel III : Capital Adequacy
Basel III : Capital Adequacy ₹ in crore Dec-20 Sep-21 Dec-21 Capital Adequacy Ratio(%) Parameter Amt. % to RWA Amt. % to RWA Amt. % to RWA 13.92 13.64 12.98 1 Tier I 55,904 10.47 60,187 11.32 64,216 11.75 2.32 2.17 Common Equity I 49,204 9.22 54,004 10.16 55,642 10.18 2.51 1.16 1.57 1.25 Additional
Slide 39: Basel III : Ratings & Capital Raising
Basel III : Ratings & Capital Raising Basel III Rating Agency Tier I Tier II Previous Current Previous Current Rating Rating Rating Rating AA-/ Stable AA/ Stable AA+/ Stable AA+/ Stable CRISIL Ratings AA-/ Stable AA/ Stable AA+/ Negative AA+/ Stable CARE Ratings AA/ Negative AA/ Stable AA+/ Stable A
Slide 40: Shareholding Pattern
Shareholding Pattern Particulars As on 31.12.2021 Shareholding Pattern (%) as on 31.12.21 Share Capital ₹ 6,835 crore No. of Equity Shares 683.47 crore Promoters Holding (%) 83.5% 8.30 1.19 7.02 Market Cap ₹ 29,663 crore* Net worth (31.12.2021) Rs in Crs 83.49 1.1 Share Capital 6,835 1.2 Reserve & S
Slide 41: Digitization Journey and New Initiatives
Digitization Journey and New Initiatives 41
Slide 42: Project SAMARTH 2.0
Project SAMARTH 2.0 Select key launches made Collection Debit Credit CAPS Digital Cards Cards Branches Call Centre & Campaign Wellness & Uni- 91 new corporate Completely FOS model conducted carbon co clients digital launched for branded card onboarded to branches strengthening launched avail transac
Slide 43: New update to U-Mobile gaining traction
New update to U-Mobile gaining traction U-Mobile experience being Strong traction on usage upgraded continuously Daily Registrations Re-vamped UI/UX Improved debit Improved BBPS with new features card management Services in-app 2.4x 6K 17K Pre-Release Post-Release Daily Transaction Volume (in lakhs)
Slide 44: Union MSME First Branches
Union MSME First Branches Union MSME First Branches launched at 25 locations Leads worth ₹3,395 Cr already generated Offering multiple Ludhiana benefits to MSMEs Panipat Muzaffarnagar Noida Jaipur Lucknow • Dedicated 1 Varanasi Jamshedpur relationship Sachin, Surat Morvi Kolkata Main management Indo
Slide 45: Digital Footprints
Digital Footprints (No. in Lakhs) Debit Card Users Mobile Banking Users 471 153.60 459 141.12 121.92 106.34 446 436 Dec-20 Mar-21 Sep-21 Dec-21 Dec-20 Mar-21 Sep-21 Dec-21 Net Banking Users(Retail) Alternate Channels Txn % 67.32 80.85 82.82 66.06 78.24 79.80 63.80 63.03 Dec-20 Mar-21 Sep-21 Dec-21 D
Slide 46: Digital Footprints Volume of Transactions (QoQ)
Digital Footprints Volume of Transactions (QoQ) Mobile Banking (U-Mobile) UPI (No. in Lacs) 7243 305 281 283 5689 4181 125 3307 Dec-20 Mar-21 Sep-21 Dec-21 Dec-20 Mar-21 Sep-21 Dec-21 46
Slide 47: Union Bank: Customer Touch Points
Union Bank : Customer Touch Points Total Branches Total ATMs 1,149 Branches 9,113 11,455 (1,290 ATMs) 1,333 Branches (2,090 ATMs) Dec-21 Branches (%) Dec-21 ATM (%) NORTHERN 1,806 Branches (2,326 ATMs) 22 28 30 17 21 26 29 27 NORTH EASTERN Rural Rural CENTRAL Semi Urban Semi Urban EASTERN Urban Urba
Slide 48: Expanding Digital Footprints
Expanding Digital Footprints Shishu Mudra (STP) Union Dial (Lead Generation) No of Leads Generated – 82,194 Applications Approved – 5,889 No of Approvals –7,332 , Amt - ₹ 1,145 Crore MSME UV Conn (You-We-Connect) STP up to 5 Crore The product enables customers to MSME Straight Through Process know/t
Slide 49: TReDS & PSB59
TReDS & PSB59 Key Highlights of performance in TReDS Key Highlights of performance under psbloansin59minutes.com (as on 31.12.2021) (as on 31.12.2021) Number – 40,147 No. of Applications 38,145 Bills discounted Amount – ₹ 4,664 cr Sanctioned ₹ 5,506 cr Interest income earned – ₹ 67.37 cr Disbursed ₹
Slide 50: EASE & ESG
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Slide 51: Union Bank performance in Q2FY22 EASE Index
Union Bank performance in Q2FY22 EASE Index 51
Slide 52: Sustainability Imperative: Environment
Sustainability Imperative: Environment Union Green Miles ₹ 4,008 Crore ₹ 9.27 Crore Credit facility extended to Renewable Energy Sector Sanctioned as on 31.12.2021 as on 31.12.2021 Union Green Deposit Union Roof Top Solar New Product Launched ₹ 77.13 Crore for installation of Grid mobilized as on co
Slide 53: Sustainability Imperative: Social
Sustainability Imperative: Social Women Empowerment Women SHGs Union Nari Shakti Scheme Total 5.20 lac loans amounting Scheme exclusively for financing ₹ 32,469.94 Crores sanctioned women .entrepreneurs : to SHGs out of which 4.55 lac Total 655 applications amounting loans amounting 28,750.61 to ₹10
Slide 54: Sustainability Imperative: Social
Sustainability Imperative: Social Knowledge Dissemination Bank has established 30 RSETI Centres with the objectives of providing self- employment training programmes to youth for taking up self employment activities. Bank has trained 2,50,496 People at RSETIs as on 31.12.2021. Union Bank Social Foun
Slide 55: Group Entities
Group Entities 55
Slide 56: Union Bank of India – Group Entities
Union Bank of India – Group Entities Union India Bank of International India (UK) Bank (BHD) Limited Malaysia Union Asset UBI Management Services Co P Ltd Ltd Star Union Joint ASREC Subsidiaries Dai-ichi Life India Insurance Co Ltd Ventures Limited Andhra Union Bank Trustee Co Financial P Ltd India
Slide 57: Performance of Group Entities
Performance of Group Entities ₹ in crore Subsidiaries Union Bank of India (UK) Limited Bank’s Particulars 9MFY21 9MFY22 Shareholding • Wholly owned subsidiary operating in UK Total Income 87.60 55.98 • Equity Investment – Rs. 1,111.11 crores* Net Profit/ (Loss) 0.40 (21.46) 100% Total Assets 3,234.0
Slide 58: Performance of Group Entities
Performance of Group Entities ₹ in crore Subsidiaries UBI Services Ltd. Bank’s Particulars 9MFY21 9MFY22 Shareholding Engaged in Institutional Equity broking (commenced in November 2015). Total Income 2.49 34.61 Trading of equity shares Net Profit/ (Loss) 1.28 25.01 (proprietary), trading/invest
Slide 59: Performance of Group Entities
Performance of Group Entities ₹ in crore Subsidiaries Union Trustee Co. Pvt. Limited Bank’s Particulars 9MFY21 9MFY22 Shareholding • Wholly owned subsidiary Total Income 0.15 0.38 • Equity Investment –Rs. 0.05 crore Net Profit/ (Loss) (0.02) 0.12 100% Total Assets • Act as a trustee company for Unio
Slide 60: Performance of Group Entities
Performance of Group Entities ₹ in crore Joint Ventures India First Life Insurance (IFLIC) Bank’s Particulars 9MFY21 9MFY22 Shareholding • IFLIC incorporated in June 2008 . Total Income 2,698.58 3,530.19 • Current Shareholding - Bank of Baroda, Union Bank and Carmel Point Investment India Pvt Ltd Ne
Slide 61: Performance of Group Entities
Performance of Group Entities ₹ in crore Joint Ventures India International Bank (Malaysia) BHD Bank’s Particulars 9MFY21 9MFY22 Shareholding • India International Bank Malaysia, Berhad (IIBMB) located at Kuala Lumpur was Total Income 24.00 13.98 incorporated on 13.08.2010 as a JV of Union Bank of I
Slide 62: 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 63: Investor queries
Please provide your valuable feedback@ icmt.unionbankofindia.co.in/investor _ feedback Investor queries: investor.relations@unionbankofindia.com 63
Union Bank of India — Q3 FY2022 Earnings Presentation on 6ix