Net interest income of Bank grew by 4.37% YoY during FY21.
The Board of Directors of Union Bank of India today approved the accounts of the Bank for the Quarter and Year ended March 31, 2021.
Highlights:
• Strong Financial Performance
Operating Profit of the Bank improved by 40.38 % during Q4 FY21 as compared to Q4 FY20 and 6.54% on YoY basis during FY 21. Net Profit for FY21 stood at INR 2906 crore against net loss of INR 6613 crore for FY20. Net interest income of Bank grew by 4.37% YoY during FY21.
• Bank continues to demonstrate a strong liability franchise
The CASA deposits have increased by 13.15% YoY. Total deposits base stood at INR 923805 crore as at the end of Q4FY21. CASA ratio improved to 36.33% from 34.15% a year ago.
• Credit in Retail, Agri and MSME (RAM) segments grown by 8.40% YoY
Bank registered 10.49% growth in Retail, 11.89% growth in Agriculture, 3.24% growth in MSME advances. Average advances has grown by 3.11% YoY. Domestic Advance including CP & Corporate Bonds has grown by 1.13% YoY.
• Reduction in Slippages
Slippages during FY21 have reduced by 30.63% as compare to FY20 (from INR 25147 crore during FY20 to INR 17443 crore during FY 21). Net NPA of Q4FY21 stood at 4.62%.
• Provision coverage ratio of the Bank improved to 81.27% as on March 31, 2021
Provision coverage ratio of the Bank improved to 81.27% as on March 31, 2021 as against 78.21% as on March 31, 2020.
• Robust performance on EASE 3.0 parameters during Q3 FY21
Under EASE (Enhanced Access and Service Excellence) Bank has secured 3rd position in overall ranking and Top 3 position in 4 themes out of 5, amongst PSBs during Q3 FY21.
• Amalgamation
Integration of CBS systems of all e-AB and e-CB branches completed in record time.
Key Summary of Q4FY2021 Results
| INR in Crore | Q4FY20 | Q3FY21 | Q4FY21 | YoY% | QoQ% | FY20 | FY21 | YoY% |
|
Profit & Loss |
||||||||
| Interest Income | 18241 | 17087 | 15475 | -15.16 | -9.44 | 73186 | 68767 | -6.04 |
| Interest Expenses | 12274 | 10498 | 10072 | -17.94 | -4.05 | 49532 | 44079 | -11.01 |
| Net Interest Income | 5967 | 6590 | 5403 | -9.46 | -18.01 | 23654 | 24688 | 4.37 |
| Non-Interest Income | 3697 | 3016 | 4551 | 23.10 | 50.92 | 11753 | 11337 | -3.54 |
| NIM % | 2.89 | 2.94 | 2.38 | -51bps | -56bps | 2.97 | 2.71 | -26bps |
| Operating Profit | 3690 | 5311 | 5180 | 40.38 | -2.47 | 18076 | 19259 | 6.54 |
| Loan Loss Provisions | 10847 | 4584 | 3850 | -64.51 | -16.01 | 24690 | 16353 | -33.76 |
| Profit After Tax | -7157 | 727 | 1330 | – | – | -6613 | 2906 | – |
| INR in Crore | Mar 20 | Dec 20 | Mar 21 | YoY% | QoQ% |
|
Balance Sheet |
|||||
| Global Advances | 666117 | 651973 | 653684 | -1.87 | 0.26 |
| Domestic Advances | 645421 | 635225 | 637672 | -1.20 | 0.39 |
| W/w Retail | 113520 | 120386 | 125427 | 10.49 | 4.19 |
| Agriculture | 107358 | 115373 | 120124 | 11.89 | 4.12 |
| MSME | 118440 | 125504 | 122274 | 3.24 | -2.57 |
| RAM advances | 339318 | 361263 | 367825 | 8.40 | 1.82 |
| Domestic advances including CP & Corp bonds | 664106 | 668076 | 671635 | 1.13 | 0.53 |
| Deposits | 868632 | 882423 | 923805 | 6.35 | 4.69 |
| CASA | 296598 | 312213 | 335592 | 13.15 | 7.49 |
| Term Deposits | 572035 | 570210 | 588213 | 2.83 | 3.16 |
| CASA Ratio (%) | 34.15 | 35.38 | 36.33 | 218 bps | 95 bps |
| GNPA | 97193 | 87968 | 89788 | -7.62 | 2.07 |
| NNPA | 31325 | 19063 | 27281 | -12.91 | 43.11 |
| Ratios (%) | Q4FY20 | Q3FY21 | Q4FY21 | YoY
bps |
QoQ
bps |
FY20 | FY21 | YoY
bps |
|
Asset Quality |
||||||||
| GNPA | 14.59 | 13.49 | 13.74 | -85 | 25 | 14.59 | 13.74 | -85 |
| NNPA | 5.22 | 3.27 | 4.62 | -60 | 135 | 5.22 | 4.62 | -60 |
| PCR | 78.21 | 86.18 | 81.27 | 306 | -491 | 78.21 | 81.27 | 306 |
| TPCR | 67.79 | 78.33 | 69.62 | 183 | -871 | 67.79 | 69.62 | 183 |
| Credit Cost | 5.19 | 1.86 | 2.89 | -230 | 103 | 3.15 | 2.13 | -102 |
|
Capital Ratios |
||||||||
| CET-1 ratio | 8.60* | 9.22 | 9.07 | 47 | -15 | 8.60 | 9.07 | 47 |
| Tier-1 ratio | 9.74* | 10.47 | 10.35 | 61 | -12 | 9.74 | 10.35 | 61 |
| CRAR | 12.01* | 12.98 | 12.56 | 55 | -42 | 12.01* | 12.56 | 55 |
*as on 01.04.2020
Network:
• 9312 Branches
• 12957 ATMs
• 8214 BC points
• 94 SARAL/SARAL Lite (MSME Loan Processing Centres)
• 129 ULPs (Retail Loan Processing Centres)
Financial inclusion schemes:
Financial inclusion aims 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): PMJJBY is a Government- backed insurance scheme; 3.71 lakh new enrollments were done by Bank for the quarter ended March 31, 2021.
• Pradhan Mantri Suraksha Bima Yojana (PMSBY): PMSBY is Government- backed accidental insurance scheme; 6.69 lakh new enrollments were done by Bank for the quarter ended March 31, 2021
• Pradhan Mantri Jan Dhan Yojana (PMJDY): 2.17 crore accounts have been opened with account balance of INR 6,465 crore as on March 31, 2021 as against 1.74 crore accounts with INR 5,049 crore as on March 31, 2020.
• Atal Pension Yojana (APY): APY is a pension scheme, primarily targeted at the unorganized sector, 0.59lakh new enrollments were done by Bank for the quarter ended March 31, 2021.
New schemes launched to tackle COVID-19:
In response to significant challenges of COVID 19, Bank has 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.
No. of Loans Sanctioned – 1,13,880
Total amount Sanctioned – INR 3,652 crore
• 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.
No. of Loans Sanctioned – 80,536
Total amount Sanctioned – INR 1,973 crore
• Union SHG COVID Suvidha Loan (USCSL): Scheme for all existing SHGs with satisfactory track record.
No. of Loans Sanctioned – 1,30,180
Total amount Sanctioned – INR 696 crore
• Union Guaranteed Emergency Credit Line (UGECL): A special scheme as per GOI guidelines for sanctioning pre-approved limit of up to 20 per cent of loan outstanding as on 29th February, 2020 to eligible borrowers, in the form of additional working capital term loan facility to eligible Business Enterprises / MSME borrowers/ Individuals, including interested PMMY borrowers.
No. of Loans Sanctioned (UGECL 1 & 2) – 3,72,660
Total amount Sanctioned (UGECL 1 & 2)– INR 9,681 crore
