UNIONBANKNSE14 May 2019

Union Bank of India has informed the Exchange regarding Investor Presentation

Union Bank of India

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Financial Results Q4 FY19 & FY 2018-19

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May 14, 2019

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Business Performance

Financials

New Initiatives & Outcomes

Awards & Accolades

Table of Contents

Domestic Advances 7.8%

Year on Year Growth FY19

Recovery + Upgradation 188%

Snapshot as on March 31, 2019

Total Business

` 741307 crore

Gross Advances

` 325392 crore

Total Deposits

` 415915 crore

Saving Deposits 8.3%

Operating Profit(FY19)

` 7521 crore

Basel III Tier I Ratio

Basel III Total CAR

Net Interest Income 9.8%

Retail Advances 15.5%

Branches

ATMs

*Including 5586 Micro-ATM

9.48 %

11.78 %

4291

12236*

Business Performance - Liabilities

Total Deposits

(` crore)

399092

402297

2207

2670

1.8 % YOY

415915

2816

396885

399627

413099

2.5 % YOY

408502

5305

403197

Mar-18

Sep-18

Dec-18

Mar-19

Domestic deposit

Overseas deposit

CASA Portfolio

CASA & Avg CASA (%)

139241

140815

143007

7.8 % YOY

150141

33.2

34.1

34.5

34.7

114183

118424

119156

123628

8.3 % YOY

25058

Mar-18

22391

Sep-18

23851

Dec-18

26513

Mar-19

Savings Deposit

Current Deposit

34.1

35.3

35.5

36.1

Mar-18

Sep-18

Dec-18

Mar-19

CASA (%)

Avg CASA %

Business Performance - Assets

Gross Advances

318563

317513

(` crore)

325392

3.7 % YOY

302007

303330

310932

7.8 % YOY

16556

Sep-18

14183

Dec-18

14460

Mar-19

Domestic Advances

Overseas advances

313860

288336

25524

Mar-18

Retail

15.5% YOY

56524

57092

Agriculture

7% YOY

MSME

6% YOY

48971

67174

65936

66147

51270

49446

47257

46340

45825

63371

Mar-18

Sep-18

Dec-18

Mar-19

Mar-18

Sep-18

Dec-18

Mar-19

Mar-18

Sep-18

Dec-18

Mar-19

Diversified Loan Portfolio - RAM

RAM* share (%) in Domestic advances

Retail

Mar-19

Dec-18

Sep-18

Mar-18

55.7

56.0

54.2

55.0

26.8

2.5

8.2

6.0

7.3

49.2

*Retail, Agriculture and MSME collectively called as “RAM sector”

Home

Vehicle

Education

Mortgage

Personal

Others

Diversified Loan Portfolio - RAM

Composition of Agri loan book(%)

Mar-18

Sep-18

Dec-18

Mar-19

Small & Marginal

Other Agri

Composition of MSME loan book(%)

Mar-18

Sep-18

Dec-18

Mar-19

Micro

Small

Medium

More than 63% of Agri. portfolio is for Small & Marginal farmers

75% of MSME portfolio is MSE

Diversified Loan Portfolio-Industry Exposure

S No.

Sectors

(% Share in Domestic Advance)

Top Sector Exposure

Infrastructure

Trade

NBFCs and HFCs

w/w HFCs

Construction

Basic Metal Products

Food Processing

Textiles

All Engineering

Dec-18

Mar-19

` Crore

% Share

` Crore

% Share

51611

39155

36297

12438

12274

12492

10486

7388

6297

17.0

12.9

12.0

4.1

4.0

4.1

3.5

2.4

2.1

52200

39259

36765

13134

12080

11967

10658

7315

6202

16.0

12.1

11.3

4.0

3.7

3.3

2.2

1.9

Total

176000

58.0

176446

54.2

Investments

Global Investment (` Crore)

126524

130063

121289

128415

Mar-18

Sep-18

Dec-18

Mar-19

SLR(%)

Non-SLR(%)

Particulars (Domestic)

Dec 2018

Mar 2019

Duration (Years)

(` Crore)

Dec-18

Mar-19

Available for Sale

36053

42322

2.96

3.06

W/w SLR

NON SLR

12795

23258

20984

21337

3.16

2.80

3.07

3.05

Overseas Operations

Business from Overseas Operations

US $ in billion (` crore)

Mar 2018

Dec 2018

Mar 2019

Growth (%)

Y-o-Y (US$)

Y-o-Y (INR)

Total Business

Total Deposits

Total Advances

4.7 (30829)

0.8 (5305)

3.9 (25524)

*1US$ = ` 65.18 as on Mar 31, 2018 #1US$ = ` 69.15 as on Mar 31, 2019

2.4 (16853)

2.4 (17276)

-48.9

-44.0

0.4 (2670)

0.4 (2816)

-50.0

-46.9

2.0 (14183)

2.0 (14460)

-48.7

-43.3

Financial Inclusion

Progress under Pradhan Mantri Jan Dhan Yojana (PMJDY)

Parameters Villages covered No. of BCs Sub Service Areas Urban Wards Accounts opened till Mar 31, 2019 Deposits RuPay Cards issued Aadhar Seeding

Achievements of the Bank

18428 5439 5439 2581 98 Lakh ` 2404 Crore 56.15 Lakh 81.17 Lakh

Pradhan Mantri Suraksha Bima Yojana

Pradhan Mantri Jeevan Jyoti Bhima Yojana

Atal Pension Yojana

38.63 Lakhs

14.79 Lakhs

4.87 Lakhs

Financial Inclusion

Total outstanding under Mudra loan: ` 7220 crore

Progress under Mudra Yojana April to March 2019 (PMMY)

Category

Shishu (< ` 50k) Kishor (Above ` 50k-5 Lakh) Tarun (Above ` 5 Lakh-10 Lakh)

Total

No. of Accounts 53256 121434 21306 195996

Sanctioned Amount (` crore) 135 2628 1638 4402

Outstanding Amount (` crore) 100 2124 1326 3550

Finance to MSMEs under Psbloanin59minutes.com as of March 2019

Particulars

Number

Total Sanctioned

1896

Amount (` crore)

538

Statement of Assets & Liabilities

As at 31.03.18

As at 30.09.18

As at 31.12.18

As at 31.03.19

(` crore)

Growth (%)

Y-o-Y Q-o-Q

1169

23928

1169

24243

1169

24390

1763

24724

408501

399092

402297

415915

45681

8127

44367

9349

38528

8824

42864

8773

487406

478220

475208

494039

50.8

3.3

1.8

-6.2

7.9

1.4

3.4

11.3

-0.6

4.0

LIABILITIES

Capital

Reserves and surplus

Deposits

Borrowings

Other Liabilities and Provisions

Total

ASSETS

Cash and Balances with Reserve Bank of India

21016

18275

18399

20796

-1.0

13.0

Balances with Banks and Money at call and Short Notice Investments

Advances

Fixed Assets

Other Assets

Total

28425

15872

19911

22250

-21.7

11.7

123780

288761

3833

21591

127143

293011

3744

20175

118922

291890

3702

22383

126047

296932

3762

24252

487406

478220

475208

494039

1.8

2.8

-1.9

12.3

1.4

6.0

1.7

1.6

8.4

4.0

Business Performance

Financials

New Initiatives & Outcomes

Awards & Accolades

Table of Contents

Cost & Yield Ratio

Parameters

Mar-18 (Q4)

Dec-18 (Q3)

Mar-19 (Q4)

FY-2018

FY-2019

Domestic Global Domestic Global Domestic Global Domestic Global Domestic Global

Cost of Deposit

5.58

5.52

5.61

5.59

5.68

5.66

5.73

5.66

5.59

5.57

Cost of Funds

4.93

4.69

4.95

4.87

4.73

4.63

5.09

4.8

4.89

4.79

Yield on Advances

Yield on Investment

7.78

7.29

7.93

7.75

7.98

7.51

8.2

7.67

7.97

7.71

6.83

6.76

7.23

7.13

6.55

6.48

6.92

6.86

6.97

6.89

Yield on Funds

6.73

6.43

6.98

6.89

6.93

6.72

7.07

6.71

6.99

6.85

NIM (on Avg. Earning Assets/AEA)

8 1 . 2

3 2 . 2

8 3 . 2

7 2 . 2

2.13

9 9 . 1

0 9 . 1

Movement of NIM

NIM (on AEA excl.GNPA)

2.44

2.51

2.54

Mar-18

Sep-18

Dec-18

Mar-19

Mar-18

Sep-18

Dec-18

Mar-19

NIM Domestic

NIM Global

NIM- Global

2.17

2.07

2.28

2.23

2.32

2.50

FY 2018

FY 2019

FY 2018

FY 2019

NIM Domestic

NIM Global

Movement of NII

(` crore)

2602

2193

2494

2493

Mar-18

Sep-18

Dec-18

Mar-19

Net Interest Income

9305

10215

FY 2018

FY 2019

Net Interest Income

Parameters

Mar-18 (Q4)

Sep-18

Dec-18 (Q3)

(Q2)

Operating Revenues

Mar-19 (Q4)

Growth (%) YoY

Growth (%) QoQ

FY18

FY19

Growth (%)

Interest Income

8112

8539

8477

8349

2.9

-1.5

32748

34067

4.0

Interest Expense

5919

6045

5984

5748

-2.9

-3.9

23443

23852

1.7

Net Interest Income

2193

2494

2493

2602

18.7

4.4

9305

10215

9.8

Non-Interest Income

1485

899

1095

1272

-14.3

16.2

4990

4474

-10.3

Total Income

9597

9438

9572

9621

0.3

0.5

37738

38541

2.1

Operating Expenses

1688

1561

1778

2143

27.0

20.5

6655

7168

7.7

Total Expenses

7607

7606

7762

7891

3.7

1.7

30098

31020

3.1

Non Interest Income

Parameters

Mar-18 (Q4)

Sep-18 (Q2)

Dec-18 (Q3)

Mar-19 (Q4)

Growth (%) YOY

Growth (%) QOQ

FY18

FY19

Growth (%)

a. Core Non Interest Income

1127

641

660

867

-23.1

31.4

2879

2876

-0.1

b. Treasury Income

277

153

191

266

-4.0

39.3

1834

899

-51.0

W/w 

Profit on Sale of Investments

132

110

188

42.4

70.9

1266

574

-54.7



Exchange Profit

145

-46.2

-3.7

568

325

-42.8

c. Recovery in Written off Accounts

105

244

138

70.4

-43.4

276

699

153.3

Total

1485

899

1095

1271

-14.4

16.1

4990

4474

-10.3

1990

Operating Profit(Quarterly)

(` crore)

Operating Profit

1832

1810

1730

Mar-18

Sep-18

Dec-18

Mar-19

Operating Profit (Full Year)

7640

7521

FY18

FY19

Provisions

Parameters

Mar-18

Sep-18

Dec-18

Mar-19

(Q4)

(Q2)

(Q3)

(Q4)

(` crore)

FY18

FY19

NPAs

5639

1710

2139

5784

13500

11435

Standard Assets

-737

-707

137

Depreciation on Investment

1120

146

-551

-26

1560

-404

Shifting Loss

Restructured Advances

-183

-229

Others (FITL etc)

-71

-1195

-23

-20

367

411

-102

-236

-356

-203

225

-667

-1394

-979

Taxation

Total

4573

1693

1657

5100

12887

10469

Net Profit

(` crore)

Net profit(Quarterly)

153

139

Mar-18

-2583

Sep-18

Dec-18

Mar-19

-3370

Net Profit(Full Year)

FY18

-5247

FY19

-2948

FY18

FY19

Efficiency/Profitability Ratios

Return on Avg. Assets (%)

Cost to Income(%)

0.12

55.3

49.6

45.9

46.6

48.8

Mar-18 (Q4)

Dec-18 (Q3)

Mar-19 (Q4)

FY 18

FY 19

-2.05

-2.71

-1.07

-0.59

S. No.

Efficiency Parameters

Mar-18 (Q4)

Sep-18 (Q2)

Dec-18 (Q3)

Mar-19 (Q4)

FY 2018

FY 2019

Return on Equity (%)

-56.18

3.11

3.48

-71.21

-28.53

-15.57

Book Value Per Share

157.40

153.09

150.52

107.36

157.40

107.36

Earnings per share

-29.59

4.76

5.24

-28.19

-69.45

-25.08

Efficiency Ratios

Sn.

Profitability Parameters

Mar-18 (Q4)

Sep-18 (Q2)

Dec-18 (Q3)

Mar-19 (Q4)

FY 18

FY 19

Business per Branch

Business per employee

Gross Profit per Branch

Gross Profit per Employee

Net Profit per Branch

Net Profit per Employee

` crore

167.9

166.8

167.7

172.7

167.9

172.7

` crore

19.2

18.9

19.1

19.9

19.2

19.9

` crore

1.8

1.7

1.6

1.8

` lacs

21.2

19.3

19.2

18.6

20.3

20.2

` lacs

-240.3

12.9

14.3

-314

-122

-68.7

` lacs

-27.5

1.5

1.6

-36.2

-13.9

-7.9

Asset Quality: Movement in Non Performing Assets

(` crore)

Parameters

Mar-18 (Q4)

Sep-18 (Q2)

Dec-18 (Q3)

Mar-19 (Q4)

FY 18

FY 19

Gross NPAs - Opening

40988

50973

50157

49713

Add : Additions

Less : Reductions

1. Recoveries

2. Up-gradation

3. Write Off

Gross NPAs- Closing

Gross NPA (%)

Net NPA

Net NPA (%)

10043

1661

387

1233

2667

3483

1208

407

1868

49370

50157

15.73

15.74

24326

24657

8.42

Provision Coverage Ratio(%)

57.16

57.66

Tangible PCR(%)

Credit Cost (%)

50.73

50.84

7.18

2.15

2983

3427

1287

510

1630

49713

15.66

24142

8.27

58.84

51.44

2.69

3275

4259

762

650

2847

48729

14.98

20332

6.85

66.24

58.27

7.20

33712

21369

5711

1835

400

3477

49370

15.73

24326

8.42

57.16

50.73

4.39

49370

13577

14218

4509

1938

7771

48729

14.98

20332

6.85

66.24

58.27

3.58

Asset Quality: Sectoral

Sectors

Slippages During Q4 FY 19

NPAs Mar 2019

(` crore)

Sectoral NPA %

Sep-18

Dec-18

Mar-19

Retail Loans

Agriculture

Micro & Small (MSE)

214

740

560

1194

2.49

2.23

2.09

3994

7.62

7.71

8.16

5815

12.21

12.19

11.53

Medium & Large

1761

37726

22.82

26.22

24.42

Total

3275

48729

15.74

15.66

14.98

Asset Quality: Sectoral

Scheme

5:25

SDR

S4A

*Account is Non-Fund Based

Standard as on Dec 2018

Standard as on Mar 2019

Account

Amount (Rs. in crore)

Account

Amount (Rs. in crore)

3452

2670

S.N.

Sector #

Outstanding

NPA

Std. Restructured NPA + Std. Restructured (%)

Infrastructure

Power

Roads

Iron & Steel

Textiles

3 #Domestic

52200

24135

7774

9744

7315

11943

6571

2038

5065

1899

764

172

592

24.3

27.9

33.8

53.0

26.4

Particulars (percent to Gross Advances)

Sep-18

Dec-18

Mar-19

Standard Restructured

Impaired Assets Ratio (GNPA + Standard Res)

Net Impaired Assets Ratio (NNPA + Standard Res)

0.41

16.1

8.1

0.36

16.0

7.96

0.40

15.4

6.7

Asset Quality - NCLT I & II

(` crore)

Particulars

list

Total

Exposure to number of accounts referred under IBC (as per RBI list)

Loan Outstanding as of Mar 31, 2019

6023

3687

9710

Total Provisions held upto Mar 31, 2019

4082

2917

6999

Provision Coverage Ratio as of Mar 31, 2019

68%

79%

72%

Basel III : Capital Adequacy

Capital Adequacy Ratio

RWA Optimization

11.46

2.43

11.55

2.52

11.43

2.42

9.03

9.02

11.78

2.30

9.48

91.2

87.3

86.0

85.5

58.7

58.2

57.4

56.3

Mar-18

Sep-18

Dec-18

Mar-19

Mar-18

Sep-18

Dec-18

Mar-19

Tier I

Tier II

CRAR

Particulars

Risk Weighted Assets

Capital Funds

CRAR-BASEL III ( % )

TIER 1 (%)

CET 1 (%)

Mar-18

286315

32817

11.46

9.03

7.56

Sep-18

278172

32119

11.55

9.02

7.54

RWA to Advance

RWA to Assets

(` crore)

Dec-18

272974

31213

11.43

9.02

7.50

Mar-19

278344

32796

11.78

9.48

8.02

During FY 2018-19, the Bank redeemed ` 1200 crore of Basel II compliant Tier 2 bonds on maturity. The Bank also exercised call option on ` 340 crore of Basel II compliant perpetual bonds

Shareholding Pattern

Mar-19

Share Capital

` 1763 crore

9.42%

13.15%

3.15%

Govt. of India

FIIs

DIIs

No. of Equity Shares

176.30 crore

Net Worth

` 18927 crore

74.27%

Public & others

Market Cap

` 16854 crore

Particulars

Government of India

Employee Share Purchase Scheme

Capital Raising during FY 2018-19

Amount

Number of Shares

Price per Equity Share

` 4112 crore

52,15,62,658

` 78.84

*25% discount on the calculated price of ` 77.98

` 568 crore

7,28,80,275

` 58.49*

Extensive & specialized distribution network

Jammu & Kashmir (13) (15)

Chandigarh (10) (20)

Punjab (140) (154)

Haryana (110) (132)

Himachal Pradesh (20) (26)

Arunachal Pradesh (1) (1)

Meghalaya (5) (4)

Uttarakhand (84) (115)

Delhi (95) (226)

Sikkim (8) (7)

Rajasthan (144) (134)

Uttar Pradesh (935) (1259)

Bihar (163) (176)

Assam (69) (89)

Gujarat (270) (351)

Madhya Pradesh (288) (547)

Jharkhand (87) (96)

Nagaland (1) (1) Manipur (1) (1)

Mizoram (1) (2)

Odisha (135) (128)

West Bengal (185) (345)

Tripura (7) (10)

Dadra, Nagar Haveli (1) (2)

Daman & Diu (1) (2)

Maharashtra (509) (1264)

Telangana (82) (150)

Andhra Pradesh (187) (216)

Goa (15) (18)

Karnataka (164) (324)

Kerala (251) (342)

Tamil Nadu (237) (392)

Branch Distribution by Urbanization

METRO 21%

RURAL 29%

URBAN 20%

SEMI- URBAN 30%

59% branches in rural/semi-urban markets

Branch Distribution by Geography

Western 19%

Southern 22%

Northern 12%

Central 32%

Eastern 13%

Geographical diversification minimizes regional risks

N. Eastern 2%

Andaman & Nicobar (1) (1)

Pondicherry (4) (5)

 Extensive network across India

 Overseas branches in Hong Kong, Sydney and Dubai, in addition to representative

office in Abu Dhabi

 Operates in the UK through its wholly owned subsidiary, Union Bank of India (UK)

Ltd.

# Domestic Branches (4,288)

# ATMS (6650) # Micro-ATMS (5586)

 The Bank has 27 extension counters, 59 satellite offices and 48 service branches in

addition to its regular bank branches as of March 31, 2019.

Business Performance

Financials

New Initiatives & Outcomes

Awards & Accolades

Table of Contents

New Initiatives & Outcomes

More than 70% of Credit Appraisal centralized

Structural Development: Creation of Centralized Processing Centres (CPCs)

Particulars

No of Units (Mar-18)

No. of Units (Mar-19)

Sectors covered

ULP

USK

SARAL

MCB

IFB

Retail (Housing and Mortgage Loan)

Retail, Agriculture and MSME

MSME, Agriculture (selected segment)

Mid Corporate

Large Corporate

Centralization in credit appraisals

% of credit proposals underwritten at CPCs

Retail

Agriculture

LC & MSME

Total

Mar-18

Mar-19

Improving Quality of Advances…..

Rated Advances - Lending to higher rated borrowers…

Rating Matrix of Outstanding Corporate Loans – `162,837 crore

Mar-17

Mar-19

A & Above

BBB

BB & Below

New Initiatives & Outcomes

Improving rating profile of New Retail loans sanctioned Retail CIBIL Rating Profile

FY16-17

FY19

750 & Above

700-750

Below 700

Exposure to NBFCs-Lending to higher-rated NBFCs

% of advances - Rating wise (Mar-19)

2.0

98.0

NBFC

0.6

99.4

HFC

A & Above

BBB

New Initiatives & Outcomes

Early Warning Signals (EWS)

Early Warning Indicators to mitigate credit risk...... Logistic regression equation and derived coefficients created to predict the riskiness of the customer

The Early Stress Signals (ESS) model identified 8 major contributors to predict propensity of slippage from ~200+ derived trigger variables

Status update of ESS A/c‟s As of Mar-19 identified in Apr-18

5.7

15.2

40.5

38.7

Upgraded

ESS

SMA

NPA

Key Triggers for Identification of Accounts

Resolutions of ESS Accounts

 Excess over limit  Days past due  Transactions in account  Utilization of Limit  Incident of Cheque Bouncing  Relationship with the Bank

 Close Monitoring of identified accounts  Re-visiting limits  Enhanced due-diligence  Explore possibility of Exit option

Business Performance

Financials

New Initiatives & Outcomes

Awards & Accolades

Table of Contents

Awards

Golden Peacock Award

EASE Awards

•“National Training Award” – Corporate Leadership & Institutional Excellance

•“Udyamimitra for MSMEs” – Enhanced Access and Service Excellence (EASE) Award under PSB Reforms Agenda

World HRD Congress

SKOCH Awards

•“Best use of Technology for Training” •“Best Leadership Development Program” – in Public Sector for Top Management •“Excellence in Training & Development”

IBA Award

•“Best IT Risk Management and Cyber Security ” •“Best Technology Bank” •“Best Financial Inclusion Initiatives”

NPCI Award

•“Excellent Performance in RuPay cards”

•SKOCH Gold Award – Banking & Finance Gold for Technology – Strategic Transformation (Union Samriddhi Kendra Model)

•SKOCH Gold Award – Cyber Security Gold for Governance Risk Management and Compliance tool

•SKOCH “Order of Merit” – Technology: Strategic Transformation & Financial Inclusion initiatives under Top Banking & Finance Project in India

•SKOCH “Order of Merit” – SIEM Tool, Governance Risk Management

•SKOCH “Order of Merit” – Compliance tool & Anti DDOS Solution under Top Cyber Security projects in India

•SKOCH “Order of Merit” – For Financial Inclusion Initiative

Disclaimer

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phrases

statements

forward-looking

information contained herein, statements in this Except for the historical presentation as contain “is”, “aims”, „will‟, „would‟, „indicating‟, „expected to‟ etc., and similar expressions or variations of such expressions may constitute „forward-looking of statements‟. risks, uncertainties and other factors that could cause actual results to differ materially from those suggested by the forward looking statements. These risks and uncertainties include, but are not limited to our ability to successfully implement our strategy, future levels of non-performing loans, our growth and expansion in business, the impact of any acquisitions, the adequacy of our implementation and changes, the allowance for credit losses, technological actual growth in demand for banking products and services, investment income, cash flow projections, our exposure to market risks as well as other risks. Union Bank undertakes no obligation to update forward-looking statements to reflect events or circumstances after the date thereof.

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Investor queries: investor.relations@unionbankofindia.com

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