UNIONBANKNSE2 August 2019

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Financial Results Q1 FY20

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Aug 02, 2019

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Business Performance

Financials

New Initiatives & Outcomes

Awards & Accolades

Table of Contents

Snapshot as on June 30, 2019

Retail Advances 15.6%

Domestic Advances 2.7%

Global Business 3.7%

YoY Growth FY20

CASA

Total Business

` 751487 crore

Gross Advances

` 321473 crore

Total Deposit

5.9%

Total Deposits

` 430014 crore

Operating Profit(Q1FY20)

` 1887 crore

Saving Deposits 6.6%

Basel III Tier I Ratio

Basel III Total CAR

Branches

ATMs

*Including 5586 Micro-ATM

9.27 %

11.43 %

4288

12147*

Business Performance - Liabilities

Total Deposits

(` crore)

5.9 % YOY

405860 3738

402122

Jun-18

402297

2670

399627

415915

2816

413099

Dec-18

Mar-19

Domestic deposit

Overseas deposit

430014

3055

426959

Jun-19

6.2 % YOY

CASA Portfolio

138035

143007

150141

6 % YOY

146303

CASA & Avg CASA (%)

33.3

34.5

34.7

34.4

115476

119156

123628

123047

6.6 % YOY

22559

Jun-18

23851

Dec-18

26513

Mar-19

23256

Jun-19

Savings Deposit

Current Deposit

34.0

35.5

36.1

34.0

Jun-18

Dec-18

Mar-19

Jun-19

CASA (%)

Avg CASA %

Business Performance - Assets

Gross Advances

(` crore)

318615

317513

325392

321473

1 % YOY

298826

303330

310932

306889

2.7 % YOY

19789

Jun-18

14183

Dec-18

14460

Mar-19

14584

Jun-19

Domestic Advances

Overseas advances

Retail

15.6% YOY

Agriculture

4.8% YOY

MSME

3.5% YOY

56524

57092

57735

48971

67174

47257

47443

66147

66160

49961

45251

63936

Jun-18

Dec-18

Mar-19

Jun-19

Jun-18

Dec-18

Mar-19

Jun-19

Jun-18

Dec-18

Mar-19

Jun-19

Diversified Loan Portfolio - RAM

RAM* share (%) in Domestic advances

Retail

Jun-19

Mar-19

Dec-18

Jun-18

55.8

55.7

56.0

53.3

27.8

2.5

8.0

48.5

6.0

7.2

Home

Vehicle

Education

Mortgage

Personal

Others

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

Diversified Loan Portfolio - RAM

Composition of Agri loan book(%)

Jun-18

Dec-18

Mar-19

Jun-19

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

Small & Marginal

Other Agri

Composition of MSME loan book(%)

75% of MSME portfolio is MSE

Jun-18

Dec-18

Mar-19

Jun-19

Micro

Small

Medium

Diversified Loan Portfolio-Industry Exposure

S No.

Sectors

(% Share in Domestic Advance)

Top Sector Exposure

Infrastructure

NBFCs and HFCs

w/w HFCs

Trade

Construction

Basic Metal Products

Food Processing

Textiles

All Engineering

Mar-19

Jun-19

` Crore

% Share

` Crore

% Share

52200

38156

13134

39259

12080

11967

10658

7315

6202

16.8

12.3

4.2

12.6

3.9

3.8

3.4

2.4

2.0

53325

41563

13750

39942

12074

11886

10029

6923

5330

17.4

13.5

4.5

13.0

3.9

3.3

2.3

1.7

Total

177837

57.2

181072

59.0

Investments

Global Investment (` Crore)

132901

121289

128415

142506

Jun-18

Dec-18

Mar-19

Jun-19

SLR(%)

Non-SLR(%)

Particulars (Domestic)

Mar 2019

Jun 2019

Duration (Years)

(` Crore)

Mar-19

Jun-19

Available for Sale

42322

56323

3.06

2.14

W/w SLR

NON SLR

20984

21337

36157

20166

3.07

3.05

1.76

3.05

Overseas Operations

Business from Overseas Operations

US $ in billion (` crore)

Jun 2018

Mar 2019

Jun 2019

Growth (%)

Y-o-Y (US$)

Y-o-Y (INR)

Total Business

Total Deposits

Total Advances

3.4 (23527)

0.5 (3738)

2.9 (19789)

*1US$ = ` 68.47 as on Jun 30, 2018 #1US$ = ` 69.02 as on Jun 30, 2019

2.4 (17276)

2.5 (17638)

-26.5

-25.0

0.4 (2816)

0.4 (3055)

-20.0

-18.3

2.0 (14460)

2.1 (14584)

-27.6

-26.3

Progress under Pradhan Mantri Jan Dhan Yojana (PMJDY)

Financial Inclusion

Parameters Villages covered No. of BCs Sub Service Areas Urban Wards Accounts opened till Jun 30, 2019 Deposits RuPay Cards issued Aadhar Seeding

Total PMJDY Accounts (no. in Lacs)

101

Achievements of the Bank

18526 5537 5537 2581 101 Lakh ` 2404 Crore 56.97 Lakh 77.91 Lakh

Balance in PMJDY A/Cs (Rs. in Crs) 2404

2404

1899

June 18

Mar-19

Jun-19

June 18

Mar-19

Jun-19

Financial Inclusion

Total outstanding under Mudra loan: ` 7140 crore

Progress under Mudra Yojana April to June 2019 (PMMY)

Category

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

Total

No. of Accounts 12647 16344 3195 32186

Sanctioned Amount (` crore) 21 353 250 624

Outstanding Amount (` crore) 16 292 192 500

O/s under TReDS

Performance in TReDS as of June 2019

Particulars

Amount (` Crore) 244

Performance in Psbloanin59minutes.com as of June 2019

Particulars

Total Sanctioned

Number

2240

Amount (` Crore) 641

LIABILITIES

Capital

Reserves and surplus

Deposits

Borrowings

Other Liabilities and Provisions

Total

ASSETS

Cash and Balances with Reserve Bank of India

Balances with Banks and Money at call and Short Notice Investments

Advances

Fixed Assets

Other Assets

Total

Statement of Assets & Liabilities

As at 30.06.18

As at 31.03.19

As at 30.06.19

(` crore)

Growth (%)

Y-o-Y

Q-o-Q

1169

24091

1763

24724

1763

24948

405860

415915

430014

47397

9538

42864

8773

33878

10978

488055

494039

501581

50.8

3.6

6.0

0.0

0.9

3.4

-28.5

-21.0

15.1

2.8

25.1

1.5

17356

23440

130327

293099

3779

20054

20796

22250

126047

296932

3762

24252

488055

494039

501581

18961

9.2

-8.8

19603

-16.4

-11.9

140059

293811

3771

25377

7.5

0.2

-0.2

26.5

2.8

11.1

-1.1

0.2

4.6

1.5

Business Performance

Financials

New Initiatives & Outcomes

Awards & Accolades

Table of Contents

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

6.83

Yield on Funds

7.05

6.90

6.93

6.72

6.95

6.87

Movement of NIM

NIM (on Avg. Earning Assets/AEA)

2.34

2.26

2.23

2.38

2.27

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

Movement of NII

(` crore)

2519

2626

2602

2493

Jun-18

Dec-18

Mar-19

Jun-19

Operating Revenues

Parameters

Jun-18 (Q1)

Dec-18 Mar-19 (Q4)

(Q3)

Jun-19 (Q1)

Growth (%)

YoY

QoQ

Interest Income

8701

8477

8349

8898

Interest Expense

6075

5984

5748

6380

2.3

5.0

6.6

11.0

Net Interest Income

2626

2493

2602

2519

-4.1

-3.2

Non-Interest Income

1208

1095

1272

990

-18.0

-22.2

Total Income

9909

9572

9621

9888

-0.2

2.8

Operating Expenses

1685

1778

2143

1621

-3.8

-24.4

Total Expenses

7760

7762

7891

8001

3.1

1.4

Non Interest Income

Parameters

a. Core Non Interest Income

b. Treasury Income

W/w 

Profit on Sale of Investments



Exchange Profit

c. Recovery in Written off Accounts

Jun-18 (Q1)

Dec-18 (Q3)

Mar-19 (Q4)

Jun-19 (Q1)

Growth (%) YOY

Growth (%) QOQ

655

288

194

212

660

731

481

-26.6

-34.2

191

266

345

19.8

29.7

110

188

255

31.4

35.6

-5.3

15.4

244

138

145

-31.6

5.1

Total

1208

1095

1271

990

-18.0

-22.1

Operating Profit(Quarterly)

(` crore)

2149

1810

1730

1887

Jun-18

Dec-18

Mar-19

Jun-19

Provisions

(` crore)

Parameters

Jun-18

Dec-18

Mar-19

Jun-19

NPAs

Standard Assets

Depreciation on Investment

Shifting Loss

Restructured Advances

Others (FITL etc)

Taxation

Total

(Q1)

1803

411

-25

-270

(Q3)

(Q4)

(Q1)

2139

5783

1431

-551

-20

-26

-102

-98

-667

143

2019

1657

5100

1662

Net Profit(Quarterly)

(` crore)

225

153

130

Jun-18

Dec-18

Mar-19

Jun-19

-3370

Efficiency/Profitability Ratios

Return on Avg. Assets (%)

Cost to Income(%)

0.12

0.1

0.17

55.3

49.6

44.0

46.2

Jun-18(Q1)

Dec-18 (Q3)

Jun-19 (Q1)

Mar-19 (Q4)

-2.71

Jun-18(Q1)

Dec-18(Q3) Mar-19(Q4)

Jun-19 (Q1)

S. No.

Efficiency Parameters

Return on Equity* (%)

Jun-18 (Q1)

2.88

Dec-18 (Q3)

3.48

Mar-19 (Q4)

-71.21

Jun-19 (Q1)

4.66

Book Value Per Share

154.07

150.52

107.36

109.38

Earnings per share

4.43

5.24

-28.19

5.09

*Annualized

Efficiency Ratios

Sn.

Profitability Parameters

Jun-18 (Q1)

Dec-18 (Q3)

Mar-19 (Q4)

Jun-19 (Q1)

Business per Branch

` crore

168.4

167.7

172.7

175.3

Business per employee

` crore

19.0

19.1

19.9

20.0

Gross Profit per Branch

` crore

2.0

Gross Profit per Employee

` lacs

22.5

Net Profit per Branch

` lacs

12.0

1.7

19.2

14.3

1.6

18.6

-314

1.8

20.2

20.9

Net Profit per Employee

` lacs

1.4

1.6

-36.2

2.4

Asset Quality: Movement in Non Performing Assets

(` crore)

Parameters

Jun-18 (Q1)

Dec-18 (Q3)

Mar-19 (Q4)

Jun-19 (Q1)

Gross NPAs - Opening

49370

50157

49713

48729

Add : Additions

Less : Reductions

1. Recoveries

2. Up-gradation

3. Write Off

Gross NPAs- Closing

Gross NPA (%)

Net NPA

Net NPA (%)

Provision Coverage Ratio (%)

Tangible PCR (%)

Credit Cost (%)

4652

3049

1252

371

1426

50973

16.00

25508

8.70

56.49

49.96

2.28

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

3090

3007

482

288

2237

48812

15.18

21231

7.23

65.88

56.50

1.77

Asset Quality: Sectoral

Sectors

Slippages During Q1 FY 20

NPAs Jun 2019

(` crore)

Sectoral NPA %

Jun-18

Mar-19

Jun-19

Retail Loans

Agriculture

Micro & Small (MSE)

Medium & Large

292

891

977

930

1408

2.65

2.09

2.44

4724

6.90

8.16

9.96

6649

12.03

11.53

13.4

36031

23.25

24.42

23.7

Total

3090

48812

16.00

14.98

15.18

Asset Quality: Sectoral

Scheme

5:25

SDR

S4A

*Account is Non-Fund Based

Standard as on Mar 2019

Standard as on Jun 2019

Account

Amount (Rs. in crore)

Account

Amount (Rs. in crore)

2670

2795

S.N.

Sector #

Outstanding

NPA

Std. Restructured NPA + Std. Restructured (%)

Infrastructure

Power

Roads

Iron & Steel

Textiles

3 #Domestic

53325

24623

8337

9682

6923

12053

6512

2299

4755

1592

780

163

597

24.1

27.1

34.7

50.1

23.6

Particulars (percent to Gross Advances)

Jun-18

Mar-19

Jun-19

Standard Restructured

Impaired Assets Ratio (GNPA + Standard Res)

Net Impaired Assets Ratio (NNPA + Standard Res)

0.34

16.3

8.3

0.40

15.4

6.7

0.52

15.7

7.1

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 Jun 30, 2019

6024

3664

9688

Total Provisions held upto Jun 30, 2019

4084

3056

7140

Provision Coverage Ratio as of Jun 30, 2019

67.79%

83.41%

73.69%

Basel III : Capital Adequacy

32472

283552

11.45

8.99

31213

272974

11.43

9.02

32796

278344

11.78

9.48

32644

285586

11.43

9.27

7.50

8.02

7.87

Jun-18

CET-1

Dec-18 Tier I

CRAR

RWA

Capital funds

Mar-19

Jun-19

58.1

RWA Optimization

86.0

57.4

85.5

56.3

88.8

56.9

Jun-18

Dec-18

Mar-19

Jun-19

RWA to Advance

RWA to Assets

Shareholding Pattern

June-19

Share Capital

` 1763 crore

9.69%

13.10%

2.93%

Govt. of India

No. of Equity Shares

176.30 crore

FIIs

DIIs

Public & others

74.28%

Net Worth

` 19283 crore

Market Cap

` 14289 crore

During Q1FY20, the Bank exercised call option on `200 crore of Basel II compliant perpetual bonds and `500 crore of Basel II compliant Upper Tier II bonds

Extensive & specialized distribution network

Jammu & Kashmir (13) (16)

Chandigarh (10) (19)

Punjab (140) (134)

Haryana (110) (115)

Himachal Pradesh (20) (23)

Uttarakhand (84) (98)

Arunachal Pradesh (1) (1)

Meghalaya (5) (4)

Delhi (95) (194)

Sikkim (8) (7)

Rajasthan (144) (133)

Uttar Pradesh (935) (1298)

Bihar (163) (182)

Assam (69) (88)

Gujarat (270) (374)

Madhya Pradesh (288) (573)

Jharkhand (87) (95)

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

Mizoram (1) (2)

Odisha (135) (139)

West Bengal (185) (356)

Tripura (7) (10)

Dadra, Nagar Haveli (1) (2)

Daman & Diu (1) (2)

Maharashtra (509) (1206)

Telangana (82) (124)

Andhra Pradesh (187) (210)

Goa (15) (17)

Karnataka (164) (299)

Kerala (251) (350)

Tamil Nadu (237) (374)

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 18%

Southern 22%

Northern 12%

Central 32%

Eastern 14%

Geographical diversification minimizes regional risks

N. Eastern 2%

Andaman & Nicobar (1) (1)

Pondicherry (4) (6)

 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 (4,285)

# ATMS (6561) # 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 June 30, 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-19)

No. of Units (Jun-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

Jun-19

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

`162034

` 161527

Jun-18

Jun-19

A & Above

BBB

BB & Below

` in crore

FY19

Q1FY20

750 & Above

700-750

Below 700

Exposure to NBFCs-Lending to higher-rated NBFCs

% of advances - Rating wise (Jun-19)

2.5

97.5

NBFC

17.5

0.6

81.8

HFC

A & Above

BBB

Below BBB

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 citizens & differently- abled

Business Performance

Financials

New Initiatives & Outcomes

Awards & Accolades

Table of Contents

Awards

BFSI Award

Kantar’s CX+ India Award

•“Award for Digital Financial Inclusion Initiatives” – Governance Now

•“Exceptional Service Delivery 2019”- Public Sector Bank Category

SKOCH Award

•SKOCH Gold Award - “Leadership in MSME” – Under MSME Category

•SKOCH Order-of-Merit – Successful migration of CBS from Finacle 7 to Finacle 10 in a record time of 13 months

Disclaimer

such

which

These

words

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.

number

involve

Investor queries: investor.relations@unionbankofindia.com

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