Union Bank of India — PPTs, 08-05-2025: Investor Presentation

1. Financial Highlights:

Global business crossed ₹22.93 trillion, with advances at ₹9.83 trillion and deposits at ₹13.10 trillion. Net interest income reached ₹9,514 Cr, with a margin of 2.87%. Operating profit rose 19.4% YoY to ₹7,700 Cr; net profit surged 50.6% YoY to ₹4,985 Cr. Gross NPA improved to 3.60%, net NPA at 0.63%, and credit cost steady at 0.69%. Capital adequacy remains strong with CRAR of 18.02% and CET-I at 14.98%. Return on Assets and Equity improved to 1.26% and 17.20% respectively. Deposits grew 7.2% YoY, CASA at 33.5%.

2. Strategic Initiatives & Growth Drivers:

Expansion of digital lending via fintech partnerships like Knight Fintech, with enhancements such as EMI on UPI and CBDC wallet integration for staff. Digital savings accounts crossed 4.12 lakh; strong YoY growth seen in digital loans, education accounts, and fixed deposits. Continued focus on Retail, Agriculture, and MSME segments with over 10% YoY credit growth. Investments in cybersecurity and ESG risk frameworks highlight strategic priorities.

3. Business Developments:

Corporate banking strengthened through 18 new Corporate Business Centres adding 1,709 transaction clients. Collections improved via UPI and OTP-based direct debits. Digital document execution expanded across multiple states and UTs. Subsidiaries including Star Union Dai-ichi Life and UBI UK support diversified growth, with asset management AUM exceeding ₹14,500 Cr.

4. Market Position & Competitive Advantage:

Fifth largest public sector bank with 8.9% market share among PSBs. Extensive branch network of 8,621 branches with strong rural and semi-urban reach supports inclusive growth. High Provision Coverage Ratio (94.61%) and improving asset quality reflect prudent risk management. Diversified exposure in infrastructure and NBFC sectors plus tech investments strengthen competitive edge.

5. Investor Implications:

Strong credit and deposit momentum paired with rising profitability and asset quality suggest positive growth potential. Digital expansion and fintech tie-ups offer scalable revenue streams. Conservative provisions and solid capital buffers reduce risks, though asset quality in Agriculture and MSME needs watching. Focus on sustainability and cybersecurity enhances long-term resilience.