Net Profit Of Union Bank Of India Improved By 32.02% On YoY Basis During Q1FY23

The Board of Directors of Union Bank of India today approved the accounts of the Bank for the Quarter ended June 30, 2022.

Key Highlights in Q1FY23
Strong Financial Performance:
Net Profit of the Bank improved by 32.02% on YoY basis during Q1FY23. Net interest income of Bank grew by 8.11% on YoY basis during Q1FY23.

Bank continues to demonstrate a strong liability franchise
The CASA deposits have increased by 8.69 %YoY. Bank now have a total deposits base at Rs.9,92,774 Crores as at the end of Q1FY23.

Business growth gaining momentum
The Advances have increased by 12.95 % on YoY basis respectively, while Deposits have increased by 9.27 % YoY basis respectively. Bank now have a total Business at Rs.17,21,409 Crores as on June 30, 2022.

Credit in Retail, Agri and MSME (RAM) segments
Bank registered 11.13 % growth in Retail, 14.04 % growth in Agriculture and 11.26 % growth in MSME advances on YoY basis. RAM advances as a per cent of Domestic Advances stood at 54.88 %.
Reduction in NPA: –
Gross NPA (%) reduced by 338 bps on YoY basis to 10.22% and Net NPA(%) reduced by 138 bps on YoY basis to 3.31% as on 30.06.2022.
Improved capital ratios
CRAR improved from 13.32 % as on 30.06.2021 to 14.42% as on 30.06.2022. CET1 ratio improved to 10.68 % as on 30.06.2022 from 9.77% as on 30.06.2021.

Key Summary of Q1FY2023 Results
In Rs Crores
Q1FY22
Q4FY22
Q1FY23
YoY%
QoQ%
Profit & Loss
Interest Income
17,134
17,174
18174
6.07
5.82
Interest Expenses
10,121
10,405
10593
4.66
1.80
Net Interest Income
7,013
6,769
7582
8.11
12.00
Non-Interest Income
2779
3,243
2817
1.36
-13.14
NIM %
3.08
2.75
3.00
-8 bps
25 bps
Operating Profit
5,303
5,520
5448
2.73
-1.31
Total Provisions
4,122
4,081
3889
-5.65
-4.69
Profit After Tax
1,181
1,440
1558
32.02
8.19

In Rs Crores
Jun-21
Mar-22
Jun-22
YoY%
QoQ%

Balance Sheet
Global Advances
6,45,091
7,16,408
7,28,635
12.95
1.71
Domestic Advances
6,30,237
6,99,269
7,09,903
12.64
1.52
W/w Retail
1,25,445
1,36,273
1,39,410
11.13
2.30
Agriculture
1,18,825
1,33,092
1,35,503
14.04
1.81
MSME
1,03,060
1,14,974
1,14,674
11.26
-0.26
RAM advances
3,47,330
3,84,339
3,89,587
12.17
1.37
Deposits
9,08,528
10,32,392
9,92,774
9.27
-3.84
W/w CASA
3,30,604
3,77,193
3,59,335
8.69
-4.73

Retail Term Deposits(<2 Crs)
4,01,020
4,43,752
4,38,931
9.45
-1.09

CASA Ratio (%)
36.39
36.54
36.19
-20 bps
-35 bps

GNPA
87,762
79,587
74,500
-15.11
-6.39

NNPA
27,438
24,303
22,392
-18.39
-7.86

Ratios (%)
Q1FY22
Q4FY22
Q1FY23
YoY
bps
QoQ
bps

Asset Quality
GNPA
13.60
11.11
10.22
-338
-89

NNPA
4.69
3.68
3.31
-138
-37

PCR
81.43
83.61
84.75
332
114

TPCR
68.74
69.46
69.94
120
48

Credit Cost
1.54
2.00
2.02
48
2

Capital Ratios
CET-1 ratio
9.77
10.63
10.68
91
5

Tier-1 ratio
11.09
12.20
12.14
105
-6

CRAR
13.32
14.52
14.42
110
-10

Network:

8,729 Branches including foreign branches
11,154 ATMs
15,376 BC points
126 SARAL/SARAL Lite (MSME Loan Processing Centres)
131 ULPs (Retail Loan Processing Centres)
81 USKs (Agricultural Loan Processing Centres)
70 MSME First Branches

Financial inclusion schemes:

Financial inclusion schemes launched by GOI aims to eliminate barriers and provide economically priced financial services to the less accessible sections of the society through government-backed schemes like PMJJBY, PMSBY, PMJDY and APY.
Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY):
This is a Government- backed insurance scheme; 0.90 lakh new enrollments were done by Bank for the quarter ended June 30, 2022.

Pradhan Mantri Suraksha Bima Yojana (PMSBY):

This is Government- backed accidental insurance scheme; 1.97 lakh new enrollments were done by Bank for the quarter ended June 30, 2022.

Pradhan Mantri Jan Dhan Yojana (PMJDY):

Our bank is instrumental in opening 2.49 Crores accounts under PMJDY Scheme with balance of Rs. 7,827 Crores as on 30.06.2022. The corresponding figure was 2.21 Crores account with balance of Rs. 6,597 Crores as on 30.06.2021. Thereby increase in account opening is 12.67% on YoY basis.

Atal Pension Yojana (APY):

APY is a pension scheme, primarily targeted at the individuals working in unorganized sector, 1.09 lakh new enrollments were done by Bank for the quarter ended June 30, 2022.
New schemes launched to tackle COVID-19:
Bank had taken initiative for easing out challenges of Covid 19 by disbursing flagship schemes launched by GOI meant for business entities, retails customers for fulfilling immediate needs.

PM SVANidhi:
A micro credit facility that provides street vendors a collateral free loan of Rs.10,000 with low rates of interest for a period of one year.
No. of Loans Sanctioned – 3,64,772
Total amount Sanctioned – Rs. 392 Crores
Union Guaranteed Emergency Credit Line (UGECL):
A special scheme as per GOI guidelines for sanctioning pre-approved limit to eligible borrowers up to 20/40 per cent of loan outstanding as on 29th February, 2020. These limit were meant for Business Enterprises / MSME borrowers/Individuals, including interested PMMY borrowers as additional working capital term loan facility.
No. of Loans Sanctioned (UGECL 1,2,3&4) –3,73,809
Total amount Sanctioned (UGECL 1,2,3&4)– Rs.10,667 Crore

New Initiatives Taken and Revamping done by the Bank during Quarter:

Formation of New vertical ‘Transaction Monitoring& Fraud Management’

With an aim to strengthening and to streamline the monitoring mechanism, our bank has formed new vertical ‘Transaction Monitoring & Fraud Management’ by covering all the related activities and overall monitoring under one centralized set up.

Bank has launched specialized branch “Union MSME First Branch (UMFB)” with a specific objective to provide customized & dedicated services to MSME customers efficiently.

Separate vertical for Gold Loan Business & Education Loan

To tap the market share under gold loan portfolio, Bank has launched specialized and dedicated vertical “ UNION GOLD LOAN POINT (UGLP)” to have focused business growth in selected potential branches across the country. These branches will have exclusive counters to cater to the customer needs with special features. As present 510 Gold loan points have been rolled out.

With a focused approach to increase Education loan portfolio, a separate vertical is formed with special features for Inland & Foreign Education requirements

Establishment of Corporate Relationship cell under LCV.

With a primary objective to reach out to corporate clients, a dedicated “Corporate Relationship Cell” has been established at LCV, Central Office. This cell will look after the requirements of corporate borrowers to their satisfaction.