Financial Results for the Quarter ended September 30, 2022

by Prashant Kapadia/NHN

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

Key Highlights in Q2FY23

1. Strong Financial Performance:

Net Profit of the Bank increased by 21.07% on YoY basis during Q2FY23. Net interest income of Bank grew by 21.61% on YoY basis during Q2FY23.

1. Bank continues to demonstrate a strong liability franchise

The CASA deposits have increased by 9.42 % YoY. Bank now have a total deposits base at Rs.10,43,265 Crores as at the end of Q2FY23.

1. Business growth gaining momentum

Total Business of the Bank increased by 17.33% YoY, wherein Gross Advances increased by 21.92 % YoY & Total Deposit grew by 14.14% YoY. Bank now have a total Business at Rs.18,16,955 Crores as on September 30, 2022.

1. Credit in Retail, Agri and MSME (RAM) segments

RAM Segment of the bank increased by 14.86 % YoY, where 14.45 % growth in Retail, 15.19% growth in Agriculture and 14.97 % growth in MSME advances achieved YoY basis. RAM advances as a per cent of Domestic Advances stood at 54.57%.

1. Reduction in NPA: –

Gross NPA (%) reduced by 419 bps on YoY basis to 8.45% and Net NPA(%) reduced by 197 bps on YoY basis to 2.64% as on 30.09.2022.

1. Improved capital ratios

CRAR improved from 13.64 % as on 30.09.2021 to 14.50% as on 30.09.2022. CET1 ratio improved to 10.67 % as on 30.09.2022 from 10.16% as on 30.09.2021.

Key Summary of Q2 FY2023 Results

In Rs Crores	Q2FY22	Q1FY23	Q2FY23	YoY%	QoQ%	H1FY22	H1FY23	YoY%
Profit & Loss
Interest Income	16,706	18,174	19,682	17.81	8.29	33,840	37,856	11.87
Interest Expenses	9,876	10,593	11,377	15.19	7.40	19,997	21,969	9.86
Net Interest Income	6,829	7,582	8,305	21.61	9.54	13,843	15,887	14.77
Non-Interest Income	3,978	2,817	3,276	-17.65	16.31	6,758	6,093	-9.83
NIM %	2.95	3.00	3.15	20 bps	15 bps	3.00	3.06	6 bps
Operating Profit	6,074	5,448	6,577	8.29	20.73	11,255	12,025	6.84
Total Provisions	4,547	3,889	4,729	4.00	21.61	8,548	8,618	0.83
Profit After Tax	1,526	1,558	1,848	21.07	18.56	2,707	3,406	25.82

Rs. (In Crores)	Q2FY22	Q1FY23	Q2FY23	YoY%	QoQ%
Balance Sheet
Global Advances	6,34,583	7,28,635	7,73,690	21.92	6.18
Domestic Advances	6,19,137	7,09,904	7,52,469	21.54	6.00
W/w Retail	1,28,190	1,39,410	1,46,715	14.45	5.24
Agriculture	1,24,897	1,35,503	1,43,874	15.19	6.18
MSME	1,04,436	1,14,674	1,20,069	14.97	4.70
RAM advances	3,57,523	3,89,587	4,10,658	14.86	5.41
Deposits	9,14,022	9,92,774	10,43,265	14.14	5.09
W/w CASA	3,39,692	3,59,335	3,71,697	9.42	3.44
Retail Term Deposits(<2 Crs)	4,34,299	4,38,931	4,37,866	0.82	-0.24
CASA Ratio (%)	37.16	36.19	35.63	-153 bps	-56 bps
GNPA	80,211	74,500	65,391	-18.48	-12.23
NNPA	26,785	22,392	19,193	-28.34	-14.29

Ratios (%)	Q2FY22	Q1FY23	Q2FY23	YoY bps	QoQ bps
Asset Quality
GNPA	12.64	10.22	8.45	-419	-177
NNPA	4.61	3.31	2.64	-197	-67
PCR	81.77	84.75	86.61	484	186
TPCR	66.61	69.94	70.65	404	71
Credit Cost	2.31	2.02	1.50	-81	-52
CET-1 ratio	10.16	10.68	10.67	51	-1
Tier-1 ratio	11.32	12.14	12.26	94	12
CRAR	13.64	14.42	14.50	86	8

Network:

    8,729 Branches including foreign branches

    11,092 ATMs

    16,109 BC points

    126 MLPs (MSME Loan Points)

    207 RLPs (Retail Loan Points)

    105 MSME First Branches

Financial inclusion schemes:

Financial inclusion schemes launched by GOI with an aim 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; 1.07 lakh new enrollments were done by the Bank for the quarter ended September 30, 2022.

    Pradhan Mantri Suraksha Bima Yojana (PMSBY):

This is Government- backed accidental insurance scheme; 2.66 lakhs new enrollments were done by the Bank for the quarter ended September 30, 2022.

    Pradhan Mantri Jan Dhan Yojana (PMJDY):

Our bank is instrumental in opening 2.82 Crores accounts under PMJDY Scheme with balance of Rs. 7,934 Crores as on 30.09.2022. The corresponding figure was 2.30 Crores account with balance of Rs. 6,680 Crores as on 30.09.2021. Thereby increase in account opening is 22.61% on YoY basis.

    Atal Pension Yojana (APY):

APY is a pension scheme, primarily targeted at the individuals working in unorganized sector, 1.52 lakh new enrollments were done by Bank for the quarter ended        September 30, 2022.

New schemes launched to tackle COVID-19:

Our 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   – 4,16,334

Total amount Sanctioned – Rs.495 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) –3,73,894

Total amount Sanctioned (UGECL 1,2,3&4)– Rs.10,703 Crores