Union Bank of India Financial Results for the quarter and financial year ended March 31, 2020

23rd June 20202 : The Board of Directors of Union Bank of India today approved the accounts of the Bank for the quarter and financial year ended March 31, 2020.

Key Highlights (FY 2019-20)
Global Business 7.6% (YoY)	Global Advances 6.6% (YoY)
Net Interest Income 12.0% (YoY)	Operating Profit 22.1% (YoY)
Domestic NIM 2.36%	Provision Coverage Ratio (PCR) 73.64%
Other Income for the Q4 FY20 increased by 58.6% as compared to Q4 FY19.
Operating profit for Q4 FY20 increased by 53.3% as compared to Q4 FY19.
PCR improved to 73.64% as on March 31, 2020 compared to 66.24% as on March 31, 2019.
Net NPA ratio declined to 5.49% as on March 31, 2020.

Business Performance:

Global Business grew by 7.6% Y-o-Y to `797589 crore as on March 31, 2020.

Total Global Deposits grew by 8.4% Y-o-Y to `450668 crore as on March 31, 2020. Global Gross Advances grew by 6.6% Y-o-Y to `346921 crore as on March 31, 2020. CASA base increased by 119 bps Q-o-Q to 35.59% as on March 31, 2020.

Operational Performance for the quarter ended March 2020:

Net Interest Income for the Q4 FY20 increased by 10.6% to `2878 crore as compared to

`2602 crore in Q4 FY19.

Other Income for the Q4 FY20 increased by 58.6% to `2018 crore as compared to `1272 crore in Q4 FY19.

Operating profit for Q4 FY20 increased by 53.3% to `2653 crore as compared to `1730 crore in Q4 FY19.

Yield on advances improved to 7.57% for Q4 FY20 as against 7.51% for Q4 FY19. Cost of Deposit improved to 5.46% for Q4 FY20 as against 5.66% for Q4 FY19.

Cost to income ratio improved to 45.82% for Q4 FY20 as against 55.33% for Q4 FY19.

Operational Performance for the financial year ended March 2020:

Net Interest Income for the FY20 increased by 12.0% to `11437 crore as compared to

`10215 crore in FY19.

Global Net Interest Margin (NIM) for FY20 improved to 2.29% as compared to 2.23% in FY19. Domestic Net Interest Margin (NIM) for FY20 improved to 2.36% as compared to 2.28% in FY19.

Other Income for the FY20 increased by 17.6% to `5261 crore as compared to `4474 crore in FY19.

Operating profit for FY20 increased by 22.1% to `9181 crore as compared to `7521 crore in FY19.

Yield on advances improved to 7.81% for FY 20 as against 7.71% for FY19. Cost to income ratio improved to 45.02% for FY20 as against 48.80% for FY19.

Asset Quality:

GNPA ratio declined to 14.15% as on March 31, 2020 compared to 14.98% as on March 31, 2019.

Net NPA ratio declined to 5.49% as on March 31, 2020 compared to 6.85% as on March 31, 2019.

Provision Coverage Ratio (PCR) improved to 73.64% as on March 31, 2020 compared to 66.24% as on March 31, 2019.

Capital Adequacy:

Tier –I and CET-1 capital ratio stood at 10.75% and 9.40% respectively as on March 31, 2020.

CRAR under BASEL III stood at 12.81% as on March 31, 2020.

Update on Amalgamation:

Andhra Bank and Corporation Bank have been amalgamated with Union Bank of India w.e.f April 01, 2020. Key benefits of amalgamation are:

Enhanced Business Mix:

• 5^th largest Public sector Bank;

• More than 5% market share in 15 states;

• More than 120 million customers base;

• Total business around `15 trillion;

• Gross Advance around `6.50 trillion

Wider network:

• More than 9500 Branches;

• More than 13000 ATMs;

• More than 8200 BC points

Best in class Products & Services:

• Greater focus on digitization of processes and digital banking services

• Revamped & harmonized products at par with Industry offerings

• Enhanced capacity to take credit exposure

• Customer Service support offered in 10+ national and regional languages

System Integration & Synergy realization:

• Integration of Inter Branch operability

• Integration of Loan automation system for credit processing and HR systems

Refined Organization structure:

• Introduction of CGM layer

• Dedicated verticals for Business development and Digitization

• Refined Zonal & Regional structure

New schemes launched to tackle COVID-19:

In response to significant challenge of COVID 19, Bank in March 2020 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.

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.

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

Union Guaranteed Emergency Credit Line (UGECL): A special scheme as per GoI guidelines which shall be a pre-approved sanction limit of up to 20% of loan outstanding as on 29th February, 2020 to eligible borrowers, in the form of additional working capital term loan facility (in case of banks and Financial Institutions), eligible Business Enterprises / MSME borrowers, including interested PMMY borrowers.

Liberalised Working Capital Assessment (LWCA) Model: Scheme for existing MSME borrowers whose operating cycle is affected by COVID-19 pandemic.

Extended Partial Credit Guarantee Scheme (PCGS): Scheme to provide liquidity support to low rated NBFCs/HFCs/MFI.