Union Bank Q4 net profit at INR 1330 crore

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Net interest income of Bank grew by 4.37% YoY during FY21.

The Board of Directors of Union Bank of India today approved the accounts of the Bank for the Quarter and Year ended March 31, 2021.

Highlights:

• Strong Financial Performance

Operating Profit of the Bank improved by 40.38 % during Q4 FY21 as compared to Q4 FY20 and 6.54% on YoY basis during FY 21. Net Profit for FY21 stood at INR 2906 crore against net loss of INR 6613 crore for FY20. Net interest income of Bank grew by 4.37% YoY during FY21.

• Bank continues to demonstrate a strong liability franchise

The CASA deposits have increased by 13.15% YoY. Total deposits base stood at INR 923805 crore as at the end of Q4FY21. CASA ratio improved to 36.33% from 34.15% a year ago.

• Credit in Retail, Agri and MSME (RAM) segments grown by 8.40% YoY

Bank registered 10.49% growth in Retail, 11.89% growth in Agriculture, 3.24% growth in MSME advances. Average advances has grown by 3.11% YoY. Domestic Advance including CP & Corporate Bonds has grown by 1.13% YoY.

• Reduction in Slippages

Slippages during FY21 have reduced by 30.63% as compare to FY20 (from INR 25147 crore during FY20 to INR 17443 crore during FY 21). Net NPA of Q4FY21 stood at 4.62%.

• Provision coverage ratio of the Bank improved to 81.27% as on March 31, 2021

Provision coverage ratio of the Bank improved to 81.27% as on March 31, 2021 as against 78.21% as on March 31, 2020.

• Robust performance on EASE 3.0 parameters during Q3 FY21

Under EASE (Enhanced Access and Service Excellence) Bank has secured 3rd position in overall ranking and Top 3 position in 4 themes out of 5, amongst PSBs during Q3 FY21.

• Amalgamation

Integration of CBS systems of all e-AB and e-CB branches completed in record time.

Key Summary of Q4FY2021 Results

INR in Crore Q4FY20 Q3FY21 Q4FY21 YoY% QoQ% FY20 FY21 YoY%

Profit & Loss

Interest Income 18241 17087 15475 -15.16 -9.44 73186 68767 -6.04
Interest Expenses 12274 10498 10072 -17.94 -4.05 49532 44079 -11.01
Net Interest Income 5967 6590 5403 -9.46 -18.01 23654 24688 4.37
Non-Interest Income 3697 3016 4551 23.10 50.92 11753 11337 -3.54
NIM % 2.89 2.94 2.38 -51bps -56bps 2.97 2.71 -26bps
Operating Profit 3690 5311 5180 40.38 -2.47 18076 19259 6.54
Loan Loss Provisions 10847 4584 3850 -64.51 -16.01 24690 16353 -33.76
Profit After Tax -7157 727 1330 -6613 2906

INR in Crore Mar 20 Dec 20 Mar 21 YoY% QoQ%

Balance Sheet

Global Advances 666117 651973 653684 -1.87 0.26
Domestic Advances 645421 635225 637672 -1.20 0.39
W/w Retail 113520 120386 125427 10.49 4.19
       Agriculture 107358 115373 120124 11.89 4.12
      MSME 118440 125504 122274 3.24 -2.57
     RAM advances 339318 361263 367825 8.40 1.82
Domestic advances including CP & Corp bonds 664106 668076 671635 1.13 0.53
Deposits 868632 882423 923805 6.35 4.69
CASA 296598 312213 335592 13.15 7.49
Term Deposits 572035 570210 588213 2.83 3.16
CASA Ratio (%) 34.15 35.38 36.33 218 bps 95 bps
GNPA 97193 87968 89788 -7.62 2.07
NNPA 31325 19063 27281 -12.91 43.11

Ratios (%) Q4FY20 Q3FY21 Q4FY21 YoY

bps

QoQ

bps

FY20 FY21 YoY

bps

Asset Quality

GNPA 14.59 13.49 13.74 -85 25 14.59 13.74 -85
NNPA 5.22 3.27 4.62 -60 135 5.22 4.62 -60
PCR 78.21 86.18 81.27 306 -491 78.21 81.27 306
TPCR 67.79 78.33 69.62 183 -871 67.79 69.62 183
Credit Cost 5.19 1.86 2.89 -230 103 3.15 2.13 -102

Capital Ratios

CET-1 ratio 8.60* 9.22 9.07 47 -15 8.60 9.07 47
Tier-1 ratio 9.74* 10.47 10.35 61 -12 9.74 10.35 61
CRAR 12.01* 12.98 12.56 55 -42 12.01* 12.56 55

*as on 01.04.2020

Network:

• 9312 Branches
• 12957 ATMs
• 8214 BC points
• 94 SARAL/SARAL Lite (MSME Loan Processing Centres)
• 129 ULPs (Retail Loan Processing Centres)

Financial inclusion schemes:

Financial inclusion 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): PMJJBY is a Government- backed insurance scheme; 3.71 lakh new enrollments were done by Bank for the quarter ended March 31, 2021.
Pradhan Mantri Suraksha Bima Yojana (PMSBY): PMSBY is Government- backed accidental insurance scheme; 6.69 lakh new enrollments were done by Bank for the quarter ended March 31, 2021
Pradhan Mantri Jan Dhan Yojana (PMJDY): 2.17 crore accounts have been opened with account balance of INR 6,465 crore as on March 31, 2021 as against 1.74 crore accounts with INR 5,049 crore as on March 31, 2020.
Atal Pension Yojana (APY): APY is a pension scheme, primarily targeted at the unorganized sector, 0.59lakh new enrollments were done by Bank for the quarter ended March 31, 2021.

New schemes launched to tackle COVID-19:

In response to significant challenges of COVID 19, Bank has launched various flagship schemes for business entities, retail customers, SHGs in order to ease out the stress/ tide over the liquidity mismatch or for fulfilling the consumption needs.

• COVID Emergency Line of Credit (CELC): Scheme for all existing Fund Based working capital limit borrowers irrespective of sector.

No. of Loans Sanctioned – 1,13,880

Total amount Sanctioned – INR 3,652 crore

• Union COVID 19 Personal Loan Scheme (UCPLS): Scheme for all Govt/ non-Govt employees drawing salary through our bank for last 12 months and existing retail borrowers.

No. of Loans Sanctioned – 80,536

Total amount Sanctioned – INR 1,973 crore

• Union SHG COVID Suvidha Loan (USCSL): Scheme for all existing SHGs with satisfactory track record.

No. of Loans Sanctioned – 1,30,180

Total amount Sanctioned – INR 696 crore

• Union Guaranteed Emergency Credit Line (UGECL): A special scheme as per GOI guidelines for sanctioning pre-approved limit of up to 20 per cent of loan outstanding as on 29th February, 2020 to eligible borrowers, in the form of additional working capital term loan facility to eligible Business Enterprises / MSME borrowers/ Individuals, including interested PMMY borrowers.

No. of Loans Sanctioned (UGECL 1 & 2) – 3,72,660

Total amount Sanctioned (UGECL 1 & 2)– INR 9,681 crore