Financial Results Q2 & H1 FY November 06, 2015

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1 Financial Results Q2 & H1 FY November 06, 2015

2 Highest Gainer in Brand Value Brand value rises 72% on accelerated digitalization efforts. 2

3 Structural Transformation Initiative 3

4 Performance Highlights Business Global Business increased by 7.4% to ` crore Savings Deposits grew by 8.9%; Share of High cost deposits declined to 2.2%. Non Interest Income Non Interest Income for Q2/FY16 up by 18% y/y and 23% q/q over Q1FY16. Net Profit Net Profit for Q2/FY16 at ` 658 crore, up by 77% over Q2/FY15. Efficiency RoA improved to 0.68% (Q2/FY16) from 0.55% (Q1/FY16) and 0.42% (Q2/FY15). ROE improved to 12.80% (Q2/FY16) from 11.02% (Q1/FY16) and 8.25% (Q2/FY15). Asset Quality Capital Adequacy Gross NPA (%) and Net NPA (%) stood at 6.12% and 3.39% respectively. Capital Adequacy Ratio at 10.26% (excluding Q2/FY16 profit) ; CET 1 Ratio at 7.42%. 4

5 Quarterly Trends ROA (%) 0.68 ROE (%; Annualized) Sep/14 Dec/14 Mar/15 Jun/15 Sep/15 Sep/14 Dec/14 Mar/15 Jun/15 Sep/ Cost to Income Ratio (%) CET 1 Ratio (%) Sep/14 Dec/14 Mar/15 Jun/15 Sep/15 Sep/14 Dec/14 Mar/15 Jun/15 Sep/15 5

6 Business Performance

7 Deposits Parameters (` crore) Sep 2014 Mar 2015 Jun 2015 Sep 2015 Growth (%) Y-o-Y Q-o-Q Total Deposits Current Deposits Savings Deposits CASA The Bank activated 7.7 lakh Dormant accounts during Q2 of FY In addition, the Bank added 32.3 lakh CASA accounts during Sep Quarter. CASA Ratio (%) Shedding High Cost Deposits (% share in Total Deposits) Sep/14 Mar/15 Jun/15 Sep/15 Sep/14 Mar/15 Jun/15 Sep/15 7

8 Advances Parameters (` crore) Sep 2014 Mar 2015 Jun 2015 Sep 2015 Growth (%) Y-o-Y Q-o-Q Gross Advances Domestic Overseas Retail Advances Agriculture MSME * * Reclassification as per RBI guidelines 77.8 Advances RWA to Gross Advances (%) Sep/14 Dec/14 Mar/15 Jun/15 Sep/15 8

9 Advances 30.3 Annual Growth (%) Advances RAM Segment RAM Share (%) in Domestic Advances Sep/14 Dec/14 Mar/15 Jun/15 Sep/15 Sep/14 Mar/15 Jun/15 Sep/15 Sep Sep-15 Home Loans Vehicle Loans Education Loans Mortgage Loans Others Composition of Retail Portfolio 9

10 Advances Top Exposures Sl. Sectors Top 10 Sectors (Domestic ) % Share in Advances Top 10 Sectors (Domestic ) (30 th Sep 2015) Sep 2014 Mar 2015 Jun 2015 % Share Amount ( ` crore) 1 Infrastructure Agriculture Retail Advances Trade NBFCs and HFCs Basic Metal Products Food Processing Textiles Construction All Engineering

11 Investments Investments (` crore) Sep/14 Mar/15 Sep/15 Sep 2015 % to Total Duration Sep 2015 Held to Maturity Held for Trading Available for Sale Total Investment % of AFS & HFT portfolio is interest sensitive 11

Overseas Operations Overseas branches at Hong Kong, DIFC (Dubai) & Antwerp (Belgium) US $ (` crore) Business from Overseas Branches Sep-14 Jun-15 Sep-15* Growth (%) YoY- US$ Representative offices at

12 Overseas Operations Overseas branches at Hong Kong, DIFC (Dubai) & Antwerp (Belgium) US $ (` crore) Business from Overseas Branches Sep-14 Jun-15 Sep-15* Growth (%) YoY- US$ Representative offices at Shanghai, Beijing, Abu Dhabi and Sydney Business 3.8 billion (23204) Total Deposits 0.8 billion (4804) 4.5 billion (28719) 0.8 billion (5238) 4.7 billion (30382) 0.9 billion (5699) Union Bank of India (UK) Limited (a wholly-owned subsidiary of the Bank in London) Total Advances 3.0 billion ( 18400) 3.7 billion (23481) *1 US$= ` as on Sep 30, billion (24683)

13 LIABILITIES Statement of Assets & Liabilities As at As at As at Growth (%) Capital Reserves and surplus Deposits Y-o-Y Q-o-Q Borrowings Other Liabilities and Provisions Total ASSETS (` crore) Cash and Balances with Reserve Bank of India Balances with Banks and Money at call and Short Notice Investments Advances Fixed Assets Other Assets Total

14 Financial Highlights

15 Cost & Yield Ratio Parameters Sep-14 (Q2) Jun-15 (Q1) Sep-15 (Q2) H1 FY 15 H1 FY16 Domestic Global Domestic Global Domestic Global Domestic Global Domestic Global Cost of Deposit Cost of Funds Yield on Advances Yield on Funds Yield on Investment NIM

16 Non-Interest Income (` crore) Parameters Sep-14 Jun-15 Sep-15 Growth Growth H1 H1 Growth (Q2) (Q1) (Q2) (%)- (%)- FY 15 FY 16 (%) Y/Y Q/Q a. Core Non Interest Income b. Treasury Income W/w Profit on Sale of Investments Exchange Profit c. Recovery in Written off Accounts Total

17 Parameters Sep-14 (Q2) Jun-15 (Q1) Sep-15 (Q2) Growth (%)-Y/Y Growth (%)-Q/Q Operating Profit H1 FY15 H1 FY16 Growth (%)-Y/Y Interest Income Interest Expenditure Net Interest Income Non Interest Income Operating Expenses -Establishment Expenses -Other Expenses (` crore) Operating Profit

18 Provisions (` crore) Parameters Sep-14 (Q2) Jun-15 (Q1) Sep-15 (Q2) H1 FY15 H1 FY16 NPAs Standard Assets Depreciation on Investment Shifting Loss Restructured Advances Others (FITL etc) Taxation Total

19 Net Profit ` crore Quarter Half Year Sep/14 Mar/15 Jun/15 Sep/15 H1 FY15 H1 FY16 77% Y/Y 14% Y/Y 19

20 Efficiency/ Profitability Ratios Sl. Efficiency Parameters Sep-14 (Q2) Jun-15 (Q1) Sep-15 (Q2) H1 FY 15 H1 FY 16 1 Return on Avg. Assets (%) Return on Equity (%) Cost to Income Ratio (%) Book Value Per Share (`) Earnings per share (`) Sl. Profitability Parameters Sep-14 (Q2) Jun-15 (Q1) Sep-15 (Q2) H1 FY 15 H1 FY 16 1 Business per Branch ` crore Business per Employee ` crore Gross Profit per Branch ` crore Gross Profit per Employee ` lakh Net Profit per Branch ` lakh Net Profit per Employee ` lakh

21 Asset Quality

22 Parameters Asset Quality (` crore) Sep-14 Jun-15 Sep-15 H1 H1 (Q2) (Q1) (Q2) FY 15 FY 16 Gross NPAs - Opening Add : Additions Less : Reductions Recoveries Upgradation Write Off Gross NPAs- Closing Gross NPA (%) Net NPA Net NPA ( %) Provision Coverage Ratio (%) Credit Cost (%)

23 Asset Quality: Sectoral (` crore) Sectors Slippages During Q2 FY 16 NPAs Sep 2015 % to Total NPAs Sept 2014 % to Sector Loan Mar 2015 Jun 2015 Sep 2015 Agriculture Micro & Small (MSE) Retail Loans Others Total

24 Restructured Assets (` crore) Sep-15 (Q2) Particulars Standard NPA Total Restructured Assets as on July 01, Fresh Restructuring during the Quarter Upgradation to Standard Restructured Accounts during the Quarter Down gradation of restructured accounts during the Quarter Change in Outstanding/Write-off/ Recovery/Closures Quarter Restructured Accounts as on September 30, * Outstanding Standard Restructured Assets excluding SEBs as % to Gross Advances: 3.2% *Rs 5597 crore included in Gross NPAs of Rs crore 24

25 Sector wise Standard Restructured Accounts Sector Amt. % to Standard Restructured 1 Infrastructure (` crore) a. Power w/w SEBs Engineering Iron & Steel Textiles Hotel Outstanding Standard Restructured Assets W/w Amt % to Standard Restructured Advances % to Gross Loans SEBs Stalled Projects

Human Capital 36440 35514 36377 36152 5599 (15.4%) 5493 (15.5%) 5412 (14.9%) 5386 (14.9%) 12004 (32.9%) 11731 (33.0%) 11713 (32.2%) 11779 (32.

26 Human Capital (15.4%) 5493 (15.5%) 5412 (14.9%) 5386 (14.9%) (32.9%) (33.0%) (32.2%) (32.6%) Sub-Staff Clerks Officers (51.7%) (51.5%) (52.9%) (52.5%) Sep/14 Mar/15 Jun/15 Sep/15 43 Average Age (years) of Employees Mar/13 Mar/14 Mar/15 Sep/15 26

Extensive & specialized distribution network focused on the needs of the different business segments Dadra, Nagar Haveli (1) (2) Daman & Diu (1) (2) Chandigarh (10) (23) Punjab (138) (183) Haryana

Pradesh (165) (373) Karnataka (157) (306) Tamil Nadu (224) (391) Himachal Pradesh (20) (28) Delhi (95) (286) Uttar Pradesh (908) (1359) # Domestic Branches (4,095) # ATMS (6909) Uttarakhand (82)

(1) (1) Tripura (7) (9) Nagaland (1) (1) Manipur (1) (1) Mizoram (1) (1) Extensive network across India Branch Distribution by Urbanization 61% branches in rural/semi-urban markets Branch

27 Extensive & specialized distribution network focused on the needs of the different business segments Dadra, Nagar Haveli (1) (2) Daman & Diu (1) (2) Chandigarh (10) (23) Punjab (138) (183) Haryana (107) (155) Gujarat (263) (390) Goa (15) (36) Rajasthan (133) (169) Kerala (238) (342) Jammu & Kashmir (12) (19) Maharashtra (500) (1162) Madhya Pradesh (277) (645) Telangana (79) (146) Andhra Pradesh (165) (373) Karnataka (157) (306) Tamil Nadu (224) (391) Himachal Pradesh (20) (28) Delhi (95) (286) Uttar Pradesh (908) (1359) # Domestic Branches (4,095) # ATMS (6909) Uttarakhand (82) (140) Bihar (137) (160) Jharkhand (82) (94) Orissa (121) (139) Pondicherry (4) (5) Andaman & Nicobar (1) (1) Meghalaya (5) (4) Sikkim (8) (7) Assam (67) (99) West Bengal (173) (276) Arunachal Pradesh (1) (1) Tripura (7) (9) Nagaland (1) (1) Manipur (1) (1) Mizoram (1) (1) Extensive network across India Branch Distribution by Urbanization 61% branches in rural/semi-urban markets Branch Distribution by Geography Southern 21.2% Rural 31.3% Western 19.0% Semi Urban 29.5% Northern 12.9% Metro 18.2% Central 32.1% Eastern 12.7% Urban 21.0% N Eastern 2.0% Geographical diversification minimizes regional risks Overseas branches in Hong Kong, Dubai and Antwerp, in addition to representative offices in Shanghai, Beijing, Abu Dhabi and Sydney Operates in the UK through its wholly owned subsidiary, Union Bank of India (UK) Ltd. The Bank has 31 extension counters, 60 satellite offices and 47 service branches in addition to its regular bank branches as of September 30,

Multiple Delivery Channels 8.3 Internet Banking User (Lakh) 11.5 11.1 10.3 9.6 12.

Mar/14 Sep/14 Mar/15 Jun/15 Sep/15 1.1 1.7 2.9 Transactions through Alternative Channels (%) 62.

28 Multiple Delivery Channels 8.3 Internet Banking User (Lakh) Mobile Banking User (Thousands) Mar/13 Mar/14 Sep/14 Mar/15 Jun/15 Sep/15 Mar/13 Mar/14 Sep/14 Mar/15 Jun/15 Sep/ Transactions through Alternative Channels (%) 62.8% ATMs 12.2 Internet Banking Mobile Banking Tele Banking POS Others( Payment Gateway/ FINO/ Merchant Acquiring/ RTGS/NEFT/ECS) 28

29 Basel III: Capital & Liquidity CRAR Tier I Tier II Liquidity Coverage Ratio (LCR) LCR for the period ended September 2015 at % compared to regulatory minimum requirement of 60% Sep/14 Mar/15 Jun/15 Sep/15 (` crore) Sep 2014 Mar 2015 Jun 2015 Sep 2015 Risk Weighted Assets Capital Funds CRAR-BASEL III ( % ) CET Ratio (%)

Share Capital ` 687.4 crore No. of Equity Shares: 68.74 crore Net worth: ` 20574 crore Book Value per share ` 299.30 Return on Equity 12.80 % Market Cap ` 12044 crore Shareholding Details 63.

30 Share Capital ` crore No. of Equity Shares: crore Net worth: ` crore Book Value per share ` Return on Equity % Market Cap ` crore Shareholding Details 63.44% Shareholding Pattern (%) 60.47% Mar/15 Jun/ % 17.95% 8.58% 7.86% 8.89% 18.26% 19.42% 12.69% 12.25% 9.72% Jun/15 Sep/15 Mar/15 Government of India Foreign Institutional Investors Domestic Institutional Investors Non Institutions 30

31 Financial Inclusion Progress under Pradhan Mantri Jan Dhan Yojana (PMJDY) Parameters Achievements of the Bank Villages covered Sub Service Areas 5407 Urban Wards 2581 Accounts opened till September 30, Lakh Deposits ` Crore RuPay Cards issued 53.0 Lakh Aadhar Seeding 15.1 Lakh Progress under PMSBY, PMJJBY and APJ Schemes Scheme Name Total Enrolments Pradhan Mantri Suraksha Bima Yojana (PMSBY) Lakh Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) Lakh Atal Pension Yojana (APJ) 0.25 Lakh Progress under Mudra Yojana Category Total Enrolments Amount (` crore) Shishu (< ` 50k) Kishor (Above ` 50k-5 Lakh) Tarun (Above ` 5 Lakh-10 Lakh) Total

32 Digital Initiatives Digital Launch during Quarter Business Debit Card Usecure Credit Card Signature Credit Card 32

Awards During the Quarter 2 nd Prize under prestigious Rajbhasa Kirti Puraskar Yojana 2014-15 ACI Innovation Award for

33 Awards During the Quarter 2 nd Prize under prestigious Rajbhasa Kirti Puraskar Yojana ACI Innovation Award for Implementation of UIDAI Aadhaar Enabled Payment System (AEPS) Transactions on ATMs Ranked first for Maximum Coverage of Sub Service Areas 33

34 Disclaimer Except for the historical information contained herein, statements in this presentation which contain words or phrases such as is, aims, will, would, indicating, expected to etc., and similar expressions or variations of such expressions may constitute forward-looking statements. These forward-looking statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially from those suggested by the forward looking statements. These risks and uncertainties include, but are not limited to our ability to successfully implement our strategy, future levels of non-performing loans, our growth and expansion in business, the impact of any acquisitions, the adequacy of our allowance for credit losses, technological implementation and changes, the actual growth in demand for banking products and services, investment income, cash flow projections, our exposure to market risks as well as other risks. Union Bank undertakes no obligation to update forward-looking statements to reflect events or circumstances after the date thereof. 34

35 Investor queries:

Financial Results Q1 FY July 28, 2015

Financial Results Q1 FY July 28, 2015 Financial Results Q1 FY 2015-16 July 28, 2015 A Step Towards Digitalization 2 Performance Highlights Business Opex Profitability Global Business increased by 8.6% to ` 582817 crore Savings Deposits grew