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Press Release

Financial Results for the Quarter ended June 30, 2023

The Board of Directors of Union Bank of India today approved the accounts of the Bank for the Quarter ended June 30, 2023.

Key Highlights in Q1FY24

1. Strong Financial Performance:

Net Profit of the Bank increased by 107.67% on YoY basis during Q1FY24. Net interest income of Bank grew by 16.59% on YoY basis during Q1FY24.

2. Bank continues to demonstrate a strong Liability franchise:

The CASA deposits have increased by 7.17% YoY. Bank now have a total deposits base of Rs.11,28,052 Crores as on June 30, 2023.

3. Business Growth gaining momentum:

Total Business of the Bank increased by 13.08 % YoY, wherein Gross Advances increased by

12.33 % YoY & Total Deposit grew by 13.63% YoY. Bank have a total Business of Rs.19,46,509 Crores as on June 30, 2023.

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

RAM Segment of the bank increased by 14.92 % YoY, where 16.47 % growth in Retail, 13.37% growth in Agriculture and 14.88 % growth in MSME advances is achieved on YoY basis. RAM advances as a per cent of Domestic Advances stood at 55.92%.

5. Reduction in NPA:

Gross NPA (%) reduced by 288 bps on YoY basis to 7.34% and Net NPA (%) reduced by 173 bps on YoY basis to 1.58% as on 30.06.2023.

6. Strong capital ratios:

CRAR improved from 14.42 % as on 30.06.2022 to 15.95 % as on 30.06.2023. CET1 ratio improved to 12.34 % as on 30.06.2023 from 10.68% as on 30.06.2022.

7.Cost efficiency and improved return:

Due to reduction in Cost to Income & Credit Cost ratios, Bank's Return on Assets & Return on Equity improved to 1% and 18.97% respectively.

Key Summary of Results

In Rs Crores

Q1FY23

Q4FY23

Q1FY24

YoY%

QoQ%

Interest Income

18,174

22,005

23,478

29.18

6.70

Interest Expenses

10,593

13,754

14,638

38.19

6.43

Net Interest Income

7,582

8,251

8,840

16.59

7.14

Non-Interest Income

2,817

5,269

3,903

38.57

-25.92

NIM %

3.00

2.98

3.13

13 bps

15 bps

Operating Profit

5,448

6,823

7,179

31.79

5.22

Total Provisions

3,890

4,041

3,943

1.38

-2.43

Profit After Tax

1,558

2,782

3,236

107.67

16.00

Corporate Communications Division, Union Bank Bhavan, 239, VidhanBhavan Marg, Nariman Point, Mumbai - 21.

Rs. (In Crores)

Q1FY23

Q4FY23

Q1FY24

YoY%

QoQ%

Balance Sheet

Global Advances

7,28,635

8,09,905

8,18,457

12.33

1.06

Domestic Advances

7,09,904

7,85,302

7,93,448

11.77

1.04

W/w Retail

1,39,410

1,59,702

1,62,373

16.47

1.67

Agriculture

1,35,503

1,51,993

1,53,615

13.37

1.07

MSME

1,11,195

1,25,022

1,27,745

14.88

2.18

RAM advances

3,86,108

4,36,717

4,43,733

14.92

1.61

Deposits

9,92,774

11,17,716

11,28,052

13.63

0.92

W/w CASA

3,59,335

3,94,055

3,85,084

7.17

-2.28

Retail Term Deposits (<2 Crs)

4,38,931

4,38,280

4,36,386

-0.58

-0.43

CASA Ratio (%)

36.20

35.62

34.60

-160bps

-102bps

GNPA

74,500

60,987

60,104

-19.32

-1.45

NNPA

22,392

12,928

12,138

-45.79

-6.11

Ratios (%)

Q1FY23

Q4FY23

Q1FY24

YoY

QoQ

bps

bps

Asset Quality

GNPA

10.22

7.53

7.34

-288

-19

NNPA

3.31

1.70

1.58

-173

-12

PCR

84.75

90.34

90.86

611

52

TPCR

69.94

78.80

79.80

986

100

Credit Cost

2.02

1.77

0.97

-105

-80

CET-1 ratio

10.68

12.36

12.34

166

-2

Tier-1 ratio

12.14

13.91

13.86

172

-5

CRAR

14.42

16.04

15.95

153

-9

Network:

8,561 Branches including foreign branches

10,195 ATMs

17,088 BC points

135 MLPs (MSME Loan Points)

160 RLPs (Retail Loan Points)

48 ALPs (Agriculture Loan Points)

105 MSME First Branches

1,570 Gold Loan Points

18 LCBs & 56 MCBs

Digital Banking: -

Omni channel Micro Service based digital platform 40 Digital Journeys

STP Journey for RAM Segment

Launched Customer Relationship Management (CRM): Customer Centric Business oriented platform

Bank-wide data lake to enable 100+ advanced analytics use casesP Next-gen digital contact centre

FinTech innovation hub with 90+ Fin Techs

Classification: Internal

Corporate Communications Division, Union Bank Bhavan, 239, VidhanBhavan Marg, Nariman Point, Mumbai - 400021.

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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; where 4.63 lakhs new enrollments were done by the Bank for the quarter ended June 30, 2023.

Pradhan Mantri Suraksha Bima Yojana (PMSBY):

This is Government- backed accidental insurance scheme; where 33.37 lakhs new enrollments were done by the Bank for the quarter ended June 30, 2023.

Pradhan Mantri Jan Dhan Yojana (PMJDY):

Our bank is instrumental in opening 2.84 Crores accounts under PMJDY Scheme with balance of Rs. 9,002 Crores as on 30.06.2023. The corresponding figure was 2.49 Crores account with balance of Rs. 7,827 Crores as on 30.06.2022, thereby increase in account opening is 14.06% on YoY basis.

Atal Pension Yojana (APY):

APY is a pension scheme, primarily targeted at the individuals working in unorganized sector, 1.61 lakh new enrollments were done by Bank for the quarter ended June 30, 2023.

Union Nari Shakti Scheme for Women Entrepreneurs:

Sanctioned 6,538 Applications for Rs.617 crores during Q1 FY24

Credit facility towards Green initiatives: -

  1. Renewable Energy Sector: -Sanctioned Rs. 10,939 crores as on 30.06.2023
  2. Union Green Miles: -Sanctioned amount Rs. 260 crores as on 30.06.2023

Date: July 20, 2023

Place: Mumbai

Classification: Internal

Corporate Communications Division, Union Bank Bhavan, 239, VidhanBhavan Marg, Nariman Point, Mumbai - 400021.

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Union Bank of India published this content on 20 July 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 20 July 2023 15:47:30 UTC.