by Suman Gupta
The Board of Directors of Union Bank of India today approved the accounts of the Bank for the Quarter ended September 30, 2022.
Key Highlights in Q2FY23
1. Strong Financial Performance:
Net Profit of the Bank increased by 21.07% on YoY basis during Q2FY23. Net interest income of Bank grew by 21.61% on YoY basis during Q2FY23.
2. Bank continues to demonstrate a strong liability franchise
The CASA deposits have increased by 9.42 % YoY. Bank now have a total deposits base at Rs.10,43,265 Crores as at the end of Q2FY23.
3. Business growth gaining momentum
Total Business of the Bank increased by 17.33% YoY, wherein Gross Advances increased by 21.92 % YoY & Total Deposit grew by 14.14% YoY. Bank now have a total Business at Rs.18,16,955 Crores as on September 30, 2022.
4. Credit in Retail, Agri and MSME (RAM) segments
RAM Segment of the bank increased by 14.86 % YoY, where 14.45 % growth in Retail, 15.19% growth in Agriculture and 14.97 % growth in MSME advances achieved YoY basis. RAM advances as a per cent of Domestic Advances stood at 54.57%.
5. Reduction in NPA: –
Gross NPA (%) reduced by 419 bps on YoY basis to 8.45% and Net NPA(%) reduced by 197 bps on YoY basis to 2.64% as on 30.09.2022.
6. Improved capital ratios
CRAR improved from 13.64 % as on 30.09.2021 to 14.50% as on 30.09.2022. CET1 ratio improved to 10.67 % as on 30.09.2022 from 10.16% as on 30.09.2021.
Key Summary of Q2 FY2023 Results
| In Rs Crores | Q2FY22 | Q1FY23 | Q2FY23 | YoY% | QoQ% | H1FY22 | H1FY23 | YoY% |
| Profit & Loss | ||||||||
| Interest Income | 16,706 | 18,174 | 19,682 | 17.81 | 8.29 | 33,840 | 37,856 | 11.87 |
| Interest Expenses | 9,876 | 10,593 | 11,377 | 15.19 | 7.40 | 19,997 | 21,969 | 9.86 |
| Net Interest Income | 6,829 | 7,582 | 8,305 | 21.61 | 9.54 | 13,843 | 15,887 | 14.77 |
| Non-Interest Income | 3,978 | 2,817 | 3,276 | -17.65 | 16.31 | 6,758 | 6,093 | -9.83 |
| NIM % | 2.95 | 3.00 | 3.15 | 20 bps | 15 bps | 3.00 | 3.06 | 6 bps |
| Operating Profit | 6,074 | 5,448 | 6,577 | 8.29 | 20.73 | 11,255 | 12,025 | 6.84 |
| Total Provisions | 4,547 | 3,889 | 4,729 | 4.00 | 21.61 | 8,548 | 8,618 | 0.83 |
| Profit After Tax | 1,526 | 1,558 | 1,848 | 21.07 | 18.56 | 2,707 | 3,406 | 25.82 |
| Rs. (In Crores) | Q2FY22 | Q1FY23 | Q2FY23 | YoY% | QoQ%
|
| Balance Sheet | |||||
| Global Advances | 6,34,583 | 7,28,635 | 7,73,690 | 21.92 | 6.18 |
| Domestic Advances | 6,19,137 | 7,09,904 | 7,52,469 | 21.54 | 6.00 |
| W/w Retail | 1,28,190 | 1,39,410 | 1,46,715 | 14.45 | 5.24 |
| Agriculture | 1,24,897 | 1,35,503 | 1,43,874 | 15.19 | 6.18 |
| MSME | 1,04,436 | 1,14,674 | 1,20,069 | 14.97 | 4.70 |
| RAM advances | 3,57,523 | 3,89,587 | 4,10,658 | 14.86 | 5.41 |
| Deposits | 9,14,022 | 9,92,774 | 10,43,265 | 14.14 | 5.09 |
| W/w CASA | 3,39,692 | 3,59,335 | 3,71,697 | 9.42 | 3.44 |
| Retail Term Deposits(<2 Crs) | 4,34,299 | 4,38,931 | 4,37,866 | 0.82 | -0.24 |
| CASA Ratio (%) | 37.16 | 36.19 | 35.63 | -153 bps | -56 bps |
| GNPA | 80,211 | 74,500 | 65,391 | -18.48 | -12.23 |
| NNPA | 26,785 | 22,392 | 19,193 | -28.34 | -14.29 |
| Ratios (%) | Q2FY22 | Q1FY23 | Q2FY23 | YoY
bps |
QoQ
bps |
| Asset Quality | |||||
| GNPA | 12.64 | 10.22 | 8.45 | -419 | -177 |
| NNPA | 4.61 | 3.31 | 2.64 | -197 | -67 |
| PCR | 81.77 | 84.75 | 86.61 | 484 | 186 |
| TPCR | 66.61 | 69.94 | 70.65 | 404 | 71 |
| Credit Cost | 2.31 | 2.02 | 1.50 | -81 | -52 |
| CET-1 ratio | 10.16 | 10.68 | 10.67 | 51 | -1 |
| Tier-1 ratio | 11.32 | 12.14 | 12.26 | 94 | 12 |
| CRAR | 13.64 | 14.42 | 14.50 | 86 | 8 |
Network:
- 8,729 Branches including foreign branches
- 11,092 ATMs
- 16,109 BC points
- 126 MLPs (MSME Loan Points)
- 207 RLPs (Retail Loan Points)
- 105 MSME First Branches
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; 1.07 lakh new enrollments were done by the Bank for the quarter ended September 30, 2022.
- Pradhan Mantri Suraksha Bima Yojana (PMSBY):
This is Government- backed accidental insurance scheme; 2.66 lakhs new enrollments were done by the Bank for the quarter ended September 30, 2022.
- Pradhan Mantri Jan Dhan Yojana (PMJDY):
Our bank is instrumental in opening 2.82 Crores accounts under PMJDY Scheme with balance of Rs. 7,934 Crores as on 30.09.2022. The corresponding figure was 2.30 Crores account with balance of Rs. 6,680 Crores as on 30.09.2021. Thereby increase in account opening is 22.61% on YoY basis.
- Atal Pension Yojana (APY):
APY is a pension scheme, primarily targeted at the individuals working in unorganized sector, 1.52 lakh new enrollments were done by Bank for the quarter ended September 30, 2022.
New schemes launched to tackle COVID-19:
Our bank had taken initiative for easing out challenges of Covid 19 by disbursing flagship schemes launched by GOI meant for business entities, retails customers for fulfilling immediate needs.
- PM SVANidhi:
A micro credit facility that provides street vendors a collateral free loan of Rs.10,000 with low rates of interest for a period of one year.
No. of Loans Sanctioned – 4,16,334
Total amount Sanctioned – Rs.495 Crores
- Union Guaranteed Emergency Credit Line (UGECL):
A special scheme as per GOI guidelines for sanctioning pre-approved limit to eligible borrowers up to 20/40 per cent of loan outstanding as on 29th February, 2020. These limit were meant for Business Enterprises / MSME borrowers/Individuals, including interested PMMY borrowers as additional working capital term loan facility.
No. of Loans Sanctioned (UGECL 1,2,3&4) –3,73,894
Total amount Sanctioned (UGECL 1,2,3&4)– Rs.10,703 Crores
