l lFinancial ResultsQ2 2012 Q2 – 2012

Analyst Presentation24th October, 2011

y

P f f th h lf (Y Y)Performance for the half year (YoY)

Global Business up from ` 304203 cr. to ` 342856 cr., an increaseof 12.71%

Net Interest Income increased from ` 2884 cr. to ` 3251 cr., a growthof 12.73%

Net Interest Margin on Earning Assets is at 3.14% as compared to 3.19%during the corresponding period of last year

Operating Profit has improved from ` 2174 cr to ` 2371 cr a growth of 9 06%

2

Operating Profit has improved from ` 2174 cr. to ` 2371 cr., a growth of 9.06%.

Net Interest Income(NII) (Qty / Half Yearly)

153716611800

Net Interest Income(NII) (Qty / Half Yearly)

2884

32513300

Growth 8.07% Growth 12.73%

1200

1400

16002884

2100

2400

2700

3000

600

800

1000

1200

1500

1800

2100

200

400

600

SEPT 10 SEPT 11300

600

900

SEPT 10 SEPT 11SEPT 10 SEPT 11

Quarterly Half Yearly

SEP 08 SEP 09 SEP 10 SEP 11 CAGR %

3

SEP 08 SEP 09 SEP 10 SEP 11 CAGR %Net Interest Income 1762 1707 2884 3251 22.65

)

Net Interest

Net Interest Margin (Qty / Half Yearly)8.28

9.25

8.04

9.13

Net InterestMargin (onearning5.06

6.25

6

8

5.00

6.17

6

8

earningassets) is3.21% for the

3.353.21

2

4 3.19 3.14

2

4

quarter.NIM For half0

2

SEPT 10 SEPT 110

2

SEPT 10 SEPT 11

year is at3.14%.

Yield on Funds Cost of funds NIM (Earning Assets) Yield on Funds Cost of funds NIM (Earning Assets)

Quarterly Half Yearly

4

Sequential Jun 11 Sep 11NIM (Earning Assets) 3.10 3.21

Non-Interest Income- (Qty / Half Yearly)Non-Interest Income- (Qty / Half Yearly)(` in crore)

SEPT 10

SEPT 11

Growth SEPT 10

SEPT 11

Growth10

(Q2)11

(Q2)% 10

(H1)11

(H1)%

Core Fee Based 286 298 4.20 528 550 4.17IncomeTreasury Income 179 161 -10.06 333 334 0.30

W/wW/w Profit on Sale of

Investments131 100 -23.66 244 213 -12.70

Exchange on Foreign Currencies

48 61 27.08 89 121 35.96

Recovery in Written 44 42 -4.55 83 101 21.69

5

off Accounts

Total 509 501 -1.57 944 985 4.34

O ti P fit (Q t l / H lf Y l )• Operating Profit

for the quarter

Operating Profits (Quarterly/ Half Yearly)

1131

12051400

2174

2371

2400 for the quarterincreased by6.54% from `1131crore to `1205

1131

800

1000

1200 2174

1800

2100

2400

c o e to 05crore.

• On Half yearlybasis Operating

400

600

900

1200

1500

basis OperatingProfits registeredgrowth of 9.06%from `2174 Crore

0

200

SEPT 10 SEPT 11300

600

SEPT 10 SEPT 11

from `2174 Croreto `2371 crore.Quarterly Half Yearly

` in crs

Sequential Jun 11 Sep 11

6

q(Q1)

p(Q2)

Operating Profits 1166 1205

P i i (Q t l / H lf Y l )Provisions (Quarterly / Half Yearly)(` in crore)

SEPT 10 SEPT 11 SEPT 10 SEPT 11SEPT 10(Q2)

SEPT 11(Q2)

SEPT 10(H1)

SEPT 11(H1)

Taxation 228 230 473 503Taxation 228 230 473 503NPAStandard Assets

62913

4953

72922

860-9

Depreciation on Investment -34 82 -13 90Others -9 42 58 110

Total 827 852 1269 1554

7

Net Profits (Quarterly / Half Yearly)

353400

Net Profits (Quarterly / Half Yearly)

304

300

350 905

817

800

1000 • The Net Profit forquarter hasimproved by 16.12%

150

200

250

600

800 from ` 304 crore to` 353 crore.

• However, Net profit

50

100

150

400

, pfor HY11 is ` 817crore due to lessernet profit in the first

0SEPT 10 SEPT 11

Quarterly

200SEPT 10 SEPT 11

Half Yearly

quarter.

8

Quarterly Half Yearly

Total Depositsincreased by 10 01%

177780

195572

180000

210000 Deposits

increased by 10.01%from `177780 crore to` 195572 crore.120000

150000

CASA deposits grew by7.99% from ` 58111crore to ` 62754 crore

5811162754

60000

90000

crore to ` 62754 crore.CASA share in totaldeposit is 32.09%.

0

30000

60000

0SEPT 10 SEPT 11

TOTAL DEPOSITS CASA

9

A/Cs opened NosNo of CASA Accounts opened during half year 12,54,717

38 4%45.0%

Stable CASA Ratio of Union Bank of IndiaMar‐06 Mar‐11

38.4%

32.4%30.4% 31.8%

25 0%

30.0%

35.0%

40.0%

10.0%

15.0%

20.0%

25.0%

0.0%

5.0%

Nationalized Banks Average Union Bank of India

Average CASA Ratio of Nationalized Banks was close to 40% in2006 which gradually declined to around 30% by end March 2011

10

2006, which gradually declined to around 30% by end March 2011.Union Bank’s CASA share was maintained near 32%.

Global advancesAdvances

150000 126423147284

of the Bankregistered YoYgrowth of 16 50%120000

150000 126423

growth of 16.50%.It increased from`126423 crore to` 147284

90000

` 147284 crore.Yield on advanceshas improved to30000

60000

has improved to11.02% from9.49% in the0

30000

Sept 10 Sept 11

11

previous year.Sept 10 Sept 11

SECTOR WISE ADVANCESSECTOR-WISE ADVANCESAcross Large & Mid Corporates, SME and Corporate Agri Business

Rank Sectors Outstanding (As on 30TH SEPTEMBER 2011)

% Amount (Rs. in Crore)1 Infrastructure 13.26 19544.072 Retail Advances 9.84 14505.003 Trade 5.49 8094.003 Trade 5.49 8094.004 NBFC 5.41 7976.765 HFCs 3.31 4885.946 Ch i l d h i l d t 1 78 2616 976 Chemical and chemical products 1.78 2616.977 Commercial Real Estate 1.75 2582.178 Textiles 2.59 3820.99

1212

9 Gems & Jewellery 1.39 2056.2110 Petroleum 1.89 2786.08

COMPOSITION OF RETAIL ASSETSCOMPOSITION OF RETAIL ASSETSProduct-wise composition of Retail assets Portfolio SEPT 11

8.34

9.20 Housing LoansPersonal LoansEducation Loans

12.33

Education LoansAuto LoansOther Retail

66.333.80

1313

Assets Restructured ` i CAssets RestructuredUpto June 2011 During Sept 2011 Total

` in Crs.

Accounts Amt. Accounts Amt. Accounts Amt.Assets Restructured

120204 5844.78 175 756.28 120379 6601.06

Upto June 2011 During Sept 2011 Total

Accounts Amt Accounts Amt Accounts AmtAccounts Amt. Accounts Amt. Accounts Amt.Adjusted /Closed

33866 932.42 2184 81.66 36050 1014.08

Upto June 2011 During Sept. 2011 Total

Accounts Amt. Accounts Amt. Accounts Amt.

14

Amount Recovered

94511 1420.47 17565 509.31 112076 1929.78

Investments have shown ath f 4 54% d Yi ld

Investments59295 61991

6.84500006000070000 8.00

growth of 4.54% and Yield onInvestments have increased by54 bps from 6.30% to 6.84%.

6.30

200003000040000 6.00

Out of Total AFS portfolio of` 11860 Crore, ` 4204 Crore(35 44%) is interest sensitive

1000020000

SEPT. 10 SEPT. 114.00

Investments Yield on Inv (35.44%) is interest sensitive.SEP10 % Duration SEP 11 % Duration

Held to Maturity 43051 72.60 5.48 49793 80.32 4.84

Investments Yield on Inv

y

Held for Trading 185 0.31 6.72 338 0.55 4.92

Available for Sale 16059 27.09 2.58 11860 19.13 1.86

15

Total 59295 100.00 4.68 61991 100.00 4.39

228 77240 Book Value

156.72

228.77

193.49

140

160

180

200

220

240 Book Value

40

60

80

100

120

140

Cost to Income Ratio

0

20

40

SEPT 09 SEPT 10 SEPT 11BOOK VALUE

Earning Per Share

43.21 44.03

40

50

60Cost to Income Ratio

37.5135 83

40

50

60Earning Per Share

10

20

30

35.83

31.16

10

20

30

0

10

SEPT 10 SEPT-11Cost to Income ratio

1616

0

10

SEPT 09 SEPT 10 SEPT 11Earning Per Share

IMPROVED EFFICIENCYProductivity measured1064

1122 Productivity measuredby Business peremployee increased

1064

900

1000

1100

employee increasedfrom ` 1064 lacs to` 1122 lacs600

700

800

900

` 1122 lacs.Gross Profit peremployee has300

400

500

600

employee hasincreased from ` 15.21lacs to `15 52 lacs0

100

200

17

lacs to `15.52 lacs. SEPT 10 SEPT 11

BUSINESS PER EMPLOYEE

Movement of NPAsMovement of NPAsSEPT 10 MAR 11 SEPT 11

(` in crore)

Gross NPAs – Opening 2671 2671 3623Add : Additions 1753 2924 2587Less : Deductions 900 1972 1074ess educt o s 900 9 0

1. Due to Write Off 414 1126 5382. Due to upgradation/ Recoveries 486 846 536

Gross NPAs 3524 3623 5136Gross NPAs 3524 3623 5136Gross Credit 126423 153022 147284Gross NPA as a % age of GBC 2.79 2.37 3.49Net NPA 1462 1803 2959Net Advances 124142 150986 144854Net NPA as a % age of Net Advances 1.18 1.19 2.04

18

gCoverage % 70.00 67.58 60.52

Capital Adequacy

13 76

16

Capital Adequacy

12.53 12.54

13.76

12

14 •As per Basel II CapitalAdequacy Ratio is at12 54% as of 30th Sept

8.547.86

8.71

8

10 12.54% as of 30th Sept.,2011 as against 12.53%as of Sept. 2010.

4.004.675.05

4

6

as of Sept. 2010.

•Tier-I Core Capital Ratio isat 8 54% as of Sept 2011

0

2at 8.54% as of Sept. 2011

19

SEPT 09 SEPT 10 SEPT 11

CRAR TIER I TIER II

DISTRIBUTION CHANNELSDISTRIBUTION CHANNELSBRANCH MIX

SERVICE OUTLETS

631854

Including Hong Kong branch

SEPT 08

SEPT 09

SEPT 10

SEPT 11

722844

Branches Ext. Counters Service

243211735

27136643

28694946

30514245

Metro Urban Semi-Urban Rural

branches35 43 46 45

Total 2584 2822 2964 3138

ATMs 1402 2130 2419 2757Metro Urban Rural

South North West East

ATMs 1402 2130 2419 2757

20

720 1234 660 436

Shareholding Pattern (30th SEPT 2011)Shareholding Pattern (30th SEPT., 2011)14.29 Govt. of India

Banks, Fis, Ins. Cos.

• Share Capital Rs 635 crore

•No. of Equity Shares 524.33 million

57 07

15.84 Others

FIIs and ForeignMutual Funds

No. of Equity Shares 524.33 million

• Net worth Rs 11995 crore

• B. V. per share Rs 228.7757.07

12.8

•Return on Equity: 13.62%

•Market Cap (30.09.2011) : Rs. 12901 cr

SEPT 08 SEPT 09 SEPT 10 SEPT 11

GOVT. 55.43 55.43 55.43 57.07GOVT. 55.43 55.43 55.43 57.07FIIs & FMFs 19.31 17.03 18.57 11.91BANKS, INST./ MUTUAL FUNDS

11.85 12.76 11.88 14.72MUTUAL FUNDSOTHERS 13.41 14.78 14.12 16.30

21

M j hi hli htMajor highlightsof last quarterf q

22

Launches / New Initiatives• The Bank on 18th August, 2011 launched “Union Chetna”- an information window for the

customers as well as employees. The Bank has been actively pursuing the goal of financialliteracy and awareness as an important demand-side driver of financial deepening andinclusive growth Union Chetna is an extension of such efforts The initiative was launched by

Launches / New Initiatives

inclusive growth. Union Chetna is an extension of such efforts. The initiative was launched byShri Anand Sinha, Deputy Governor, RBI in Mumbai.

• In the Bank’s quest to becoming the No.1 Retail Bank in Customer Service Excellence, theBank is building a new model, called ‘Branch of the Future’ that will enhance our customerg ,service capabilities to leverage higher wallet share of customers. Aptly names “UnionXperience” this strategy will help in building our retail asset and liabilities profile. Presently,this model has presently been rolled out in 35 branches in Mumbai and New Delhi. We expectto roll-out this model to around 250 branches by March 2012; subsequently the model will beto roll-out this model to around 250 branches by March 2012; subsequently the model will bereplicated in all the branches at metro and urban centres.

• The Bank is revamping its system of Human Resource Management with a view to givingprimary focus on building specialized skills and developing leadership chain. These initiativeswhich are being advised by M/s Hewitt Associates will not only start showing results in the

23

which are being advised by M/s Hewitt Associates, will not only start showing results in thecurrent year but also prepare Union Bank for a higher trajectory of growth. We are focused ondeveloping capabilities for becoming the preferred banker to the NextGen customers and newBankable class.

Guidance 2011-12

24

Guidance 2011-12

The Bank aims for a deposits growth of 16% andThe Bank aims for a deposits growth of 16% andadvances growth of 17-18% for 2011-12.

NIM is expected to be at 3.20% by March 2012.

Gross NPAs of the Bank is expected to be around 2.65%by March 2012.

25

DisclaimerExcept for the historical information contained herein, statements in thispresentation which contain words or phrases such as “is”, “aims”, ‘will’,

Disclaimer

‘would’, ‘indicating’, ‘expected to’ etc., and similar expressions or variationsof such expressions may constitute ‘forward-looking statements’. Theseforward-looking statements involve a number of risks, uncertainties andother factors that could cause actual results to differ materially from thosesuggested by the forward looking statements. These risks anduncertainties include, but are not limited to our ability to successfully, y yimplement our strategy, future levels of non-performing loans, our growthand expansion in business, the impact of any acquisitions, the adequacy ofour allowance for credit losses, technological implementation and changes,, g p g ,the actual growth in demand for banking products and services, investmentincome, cash flow projections, our exposure to market risks as well asother risks. Union Bank undertakes no obligation to update forward-looking

26

other risks. Union Bank undertakes no obligation to update forward lookingstatements to reflect events or circumstances after the date thereof.

Thank YouThank You