Union Bank of India : Transcript of Post Earnings call for Quarter and Year ended March 31, 2023

Subject: Transcript of Post Earnings Call

This is to inform that transcript of Post Earnings call held on May 06, 2023 for Audited (Standalone and Consolidated) Financial Results of the Bank for the Quarter and Year ended on March 31, 2023 is submitted herewith as a PDF searchable attachment.

The same is also being made available in the Bank's website under the following web link:

https://www.unionbankofindia.co.in/english/financial-result.aspx

This information is furnished in terms of Regulation 46(2)(oa) and Regulation 30 read with Schedule III, Part A, Para A, 15(b) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

भवदीय Yours faithfully,

(एस. के. दाश S. K. Dash)

कं पनी सचिवCompany Secretary एफ़सीएस FCS - 4085

Encl.: As above

यनियिू बैंकऑफ इंडिया, निवेशकसेवायेंप्रभाग, यूनियि बैंकभवि, 239, ववधाि भवि मागग, िरीमि पॉइंट, मबईं- 400021. Union Bank of India, Investor Services Division, Union Bank Bhavan,239,VidhanBhavan Marg, Nariman Point, Mumbai - 400021.

: + 91 22 2289 6636/2289 6643,investorservices@unionbankofindia.bank, website:www.unionbankofindia.co.in

"Union Bank of India Q4 & FY-23 Earnings

Conference Call"

May 6, 2023

CONFERENCE CALL SERVICE PROVIDER :

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Union Bank of India

May 6, 2023

Moderator: Ladies and gentlemen, good day and welcome to the Union Bank of India Earnings Conference Call for the period ended March 31st, 2023. The Bank is represented by the Managing Director and CEO - Ms. A. Manimekhalai; Executive Directors - Shri Nitesh Ranjan, Shri Nidhu Saxena, Shri Ramasubramanian S., and other members of the top management.

As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing "*" then "0" on your touchtone phone. Please note that this conference is being recorded.

Now i hand over the call to Mr. Sunil Jadli - Deputy General Manager. Thank you, and over to you, sir.

Sunil Jadli:Thanks Madam. Good afternoon, ladies and gentlemen. I, Sunil Jadli, Head of Investor Relations, welcome you all for the Union Bank of India Earnings Con-Call for the period ended March 31st, 2023.

The structure of the con-call shall include a brief opening statement by Respected MD and CEO Madam, and then the floor will be open for interaction.

Before getting into the con-call, I will read out the usual disclaimer statement. I would like to submit that certain statements that may be discussed during the investor interaction may be forward-looking statements based on the current expectations. These statements involve a number of risks, uncertainties and other factors that cause the actual results to differ from the statements. Investors are therefore requested to check this information independently before making any investments or other decisions.

With this, I now request our Respected MD and CEO ma'am for her opening remarks. Thank you and over to you, ma'am.

A. Manimekhalai: Good afternoon. It is my pleasure to welcome the Analysts and the Investors. We are grateful for your continued support and feedback that has helped us in taking informed decisions.

Let me just give you a brief on the broad 'Macroeconomic Environment' before I go to the

performance of the Bank:

In the midst of the global uncertainty, Indian economy showing a strong momentum. The economy is expected to continue to perform well and will remain as a fastest growing economy in the world.

The Banking sector is also shown improved performance, led by a broad-based economic recovery. Our Bank's 'Business and Financials' registered strong growth during Q4 FY23 and we have achieved a good set of numbers in terms of 'Profitability, Asset Quality and Capital Adequacy' among others.

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Union Bank of India

May 6, 2023

Now let me give you a brief on the highlights of our 'Bank's Performance':

The operating profit of the Bank reached Rs. 25,467 crores with the growth of 16.4% during FY23.

The net profit of the Bank has increased by 61.2% YoY to Rs. 8,400 crores during the year.

Net interest income grew by almost 18% YoY during FY23.

NIM has also improved to 3.07, almost improving by 13 bps from FY 22.

Gross advances has increased by 13.1%, while deposit has grown by 8.3%.

The Bank has registered good growth in the RAM portfolio also - 17% growth in Retail, 14% in Agriculture, 13% growth in MSME advances. RAM share to the total advances is 56%.

Gross NPA of the Bank has reduced by 358 bps on YoY basis to 7.53%.

Net NPA is reduced by 198 bps on YoY by basis to 1.70%.

CRAR improved to 152 bps to 16.04%. the PCR also we have increased to 90.34% as is March 31, 2023.

Our overall cash recovery and upgradation has crossed Rs. 20,000 crores.

Slippages has been moderated at Rs. 12,518 crores as against the guidance that we gave to the market at Rs. 13,000 crores.

During FY22-23, the Bank has taken many important structural changes, which is yielded positive results. One among them was the large-scale digital transformation exercise that the Bank has taken.

Before I conclude my opening remarks, I would like to invite my ED - Mr. Nitesh Ranjan to speak on the various digital initiatives that the Bank has taken during FY23 and also what we are going to do in this current year.

Nitesh Ranjan:Thank you, ma'am. Good evening. We have done very well in terms of business and financials for FY23 as well as the Q4 of FY23, in the area of digital and technology also we have taken several initiatives to further improve customer service, increase the revenue and optimize the cost.

If you look at our aspirations for the digital and that is in line with the consumer preference shift towards more and more digital services also given that currently the penetration of digital

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Union Bank of India

May 6, 2023

services also in the entire ecosystem is very low which gives an opportunity for us to do more and more into digital.

We have set an aspiration of having 50% of RAM loans origination over the next 3 years coming through the entirely digital channel, which will translate into around 50% of RAM loan book being fully through the digital source loan.

On the liability side on 1 trillion quality CASA accounts, we'd like to acquire fully STP on the digital side over the next 2 to 3 years.

And the 3rd associated objective and aspiration of the Bank is to create a great customer satisfaction score and customer experience through digital and technology. For that, we have continuously been building capabilities in the recent past in the core IT, digital, analytics as well as cyber security. We have been continuously been augmenting the IT hardware infrastructure to meet the requirement of an increasing number of transactions in the system.

We have implemented the state-of-the-artSD-WAN technology across all our branches and units. Currently, we're in the process of adopting the SD-WAN software defined network. We are amongst a few large Banks in the country who have got PCI DSS Certified for the payment channel. You are aware that every payment player has to be compliant with the PCI DSS, but Bank has gone a step forward to get certified with the PCI DSS, which gives a lot of comfort to us as well as to our customers.

Similarly, on the security side, we have state-of-the-art Cyber Security Operation Center today and we are taking it to the next level into Cyber Security Center of Excellence and we are working with the top-class advisors and consultants and we're collaborating with the many all India level institutions to take it forward.

Thirdly. We are building a digital platform which will be a microservices led API based infrastructure and which will be aiming at creating, as I said, for the customer seamless journey, Omnichannel experience, hyper personalization for various segments and sub-segments for the customers as well as using the modern AI including the conversational AI technology or creating convenience to our customers and also investing in creating a Data Lake Analytics Center of Excellence which will help us leverage our digital capabilities to offer good services to our customers.

For customer satisfaction and customer convenience, we recently adopted and implemented the CRM solution which has been developed in association with the Zoho Corp and now we have decided to invest in digital contact center, which has also been using the conversational AI and it will be one-touch point solution for customer service as well as sales.

Now if you look at FY23, what all we have done and I would like to just highlight certain numbers that we launched our revamped Mobile App Vyom in November 2022, which today offers not only the Banking services but it has plethora of insurance, mutual fund as well as

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