In this presentation, we have followed top down approach for analyzing Union Bank of India. We covered economy analysis, industry analysis, company analysis.

1. UNION BANK OF INDIA
GOOD PEOPLE TO BANK WITH
By Group 17
Anushka Ghosh A015 | Harshit Goyal A017 | Lakhabhai Kodiyatar A022

2. • GDP: India’s GDP (at constant 2011-12 prices) was estimated at Rs. 33.14 trillion (US$
452.74 billion) for the second quarter of FY2020-21, against Rs. 35.84 trillion (US$ 489.62
billion) in the second quarter of FY2019-20.
• RATE OF EMPLOYMENT GROWTH: India needs to increase its rate of employment
growth and create 90 million non-farm jobs between 2023 and 2030's, for productivity and
economic growth according to McKinsey Global Institute.
• FOREIGN EXCHANGE RESERVES: India's foreign exchange reserves stood at US$
581.131 billion in the week up to December 18, 2020 according to data from RBI.
MARKET SIZE

3. With an
improvement in
the economic
scenario, there
have been
investments
across various
sectors of the
economy.
• India’s overall exports from April 2020 to November
2020 were estimated at US$ 304.25 billion, (a 14.03%
decrease over the same period last year). Overall
imports from April 2020 to November 2020 were
estimated at US$ 290.66 billion, (a 29.96% decrease
over the same period last year).
• Gross tax revenue stood at Rs. 7.21 trillion (US$ 98.50
billion) in the first six months of FY21
• FDI inflows in India stood at US$ 39.93 billion between
April 2020 and September 2020, 10% higher than the
first six months of 2019-20 (US$ 36.05 billion).
• India’s Index of Industrial Production (IIP) for October
2020 stood at 128.5, against 123.2 for September
2020.
RECENT DEVELOPMENTS

4. • Consumer Food Price Index (CFPI) –
combined inflation was 9.43% in November
2020, against 11.07% in October 2020.
• Consumer Price Index (CPI) – combined
inflation was 6.93% in November 2020,
against 7.61% in October 2020.
• According to IHS Markit, Purchasing
Managers' Index (PMI) for manufacturing
stood at 56.4 in December 2020, against
56.3 in November 2020, indicating a higher
growth for manufacturers speeding up
production and boosting efforts to rebuild
their inventories.
RECENT DEVELOPMENTS

5. • Stimulus package of Rs. 2.65 lakh crore to generate job opportunities.
• Make in India and Digital India.
• State Highway network and district road network in Andhra Pradesh.
• Boost electricity generation capacity in Assam
• Announced various economic packages worth ~Rs. 30 trillion
• Developing the oil and gas infrastructure
• Increase public health spending to 2.5% of the GDP

6. • 12 Public Sector Banks
• 22 Private Sector Banks
• 44 Foreign Banks 56 RRB’s
• 1485 Urban Cooperative Banks
• 96,000 Rural Cooperative Banks
Number of ATMs – 2,09,110 (Expected Number of
ATMs by 2021 – 4,07,000)
 PMJDY A/c Reached 40.05 Crore with 1.30 Lakh Crore in Deposits
Credit to non-food industries stood at Rs. 102.80 lakh
crore (US$ 1.38 trillion) as of October 9, 2020.

7. • The Assets of public sector banks stood at Rs. 107.83 lakh
crore (US$ 1.52 trillion) in FY20.
• Total assets across the banking sector (including public, private
sector and foreign banks) increased to US$ 2.52 trillion in
FY20.
• NPAs (Non-Performing Assets) of commercial banks has
recorded a recovery of Rs. 400,000 crores.
• As per Union Budget 2019-20, investment-driven growth
required access to low cost capital, and this would require
investment of Rs. 20 lakh crore (US$ 286.16 billion) every year.

8. • The digital payments revolution will trigger massive changes in the
way credit is disbursed in India. Debit cards have radically replaced
credit cards as the preferred payment mode in India after
demonetization. Payments on Unified Payments Interface (UPI) hit
an all-time high of 1.49 billion in terms of volume with transactions
worth nearly Rs. 2.90 lakh crore (US$ 41.22 billion) in July 2020.
• According to Reserve Bank of India (RBI), India’s foreign exchange
reserve reached US$ 560.53 billion as on October 23, 2020.
According to the Reserve Bank of India (RBI), bank credit and
deposits stood at Rs. 103.43 lakh crore (US$ 1.39 trillion) and Rs.
143.02 lakh crore (US$ 1.92 trillion), respectively, in the fortnight
ending October 9, 2020.

9. Provides products and services in area of saving, deposit, retail loans, cards, insurance,
investment and demat facility.
Under this they offer a range of services and products in areas like remittance, saving,
deposit, loans and payment to their NRI customers.
The bank offers services like CMS, E-Tax, trade finance, insurance products and loans to
their corporate clients. The overseas offices of the banks are located in Hongkong, Sydney,
Abu Dhabi, Beijing, Shanghai and London.

10. Name Designation
Kewal Handa Non-Executive Chairman
Gopal Singh Gusain Executive Director
Manas Ranjan Biswal Executive Director
Rajiv Kumar Singh Director
Uttam Kumar Sarkar Shareholder Director
M Jayadev Shareholder Director
Arun Kumar Singh Nominee Director
G Rajkiran Rai Managing Director & CEO
Dinesh Kumar Garg Executive Director
Birupaksha Mishra Executive Director
Madhura Swaminathan Part Time Non-Official Director
K Kadiresan Shareholder Director
Madnesh Kumar Mishra Government Nominee Director

14. 01 02 03 04

19. Interest Spread 6.69 6.28 6.18 5.74 5.65
Adjusted Cash
Margin (%)
-5.85 -6.69 -12.94 2.1 4.45
Net Profit Margin -7.78 -8.65 -16.02 1.69 4.19
Return on Long
Term Fund (%)
71.1 82.15 72.5 102.85 126.29
Return on Net
Worth (%)
-9.46 -12.15 -20.9 2.36 6.65
Adjusted Return
on Net Worth (%)
-9.46 -12.15 -20.9 2.36 6.65
Return on Assets
Excluding
Revaluations
89.43 137.56 214.76 340.9 295.44
Return on Assets
Including
Revaluations
98.71 150.24 214.76 340.9 332.99
Union Bank of India Profitability Ratio Analysis

20. Union Bank of India Management Efficiency Ratio Analysis
Interest Income /
Total Funds
7.16 6.96 6.97 7.64 8.23
Net Interest
Income / Total
Funds
2.2 2.09 1.98 2.08 2.13
Non-Interest
Income / Total
Funds
1.01 0.91 1.06 1.16 0.93
Operating Expense
/ Total Funds
3.91 3.73 4.08 3.11 2.54
Profit Before
Provisions / Total
Funds
-0.78 -0.8 -1.12 0.08 0.45
Net Profit / Total
Funds
-3.1 -2.94 -3.84 -1.53 -0.65
Loans Turnover 0.12 0.12 0.11 0.12 0.12
Total Income /
Capital Employed
(%)
8.18 7.87 8.03 8.8 9.16

21. Union Bank of India Balance Sheet Ratio
Capital Adequacy Ratio 12.81 11.78 11.5 11.79 10.56
Advances / Loans Funds (%) 65.5 65.05 66.09 72.22 73.66
Union Bank of India Debt Coverage Ratio
Credit Deposit Ratio 70.62 71.04 73.1 76.8 79.29
Investment Deposit Ratio 32.13 30.3 29.98 27.92 27.79
Cash Deposit Ratio 4.72 5.07 4.77 4.46 4.65
Total Debt to Owners
Fund
16.44 18.92 18.1 17.91 18.4
Current Ratio 0.05 0.06 0.05 0.04 0.04
Quick Ratio 26.09 38.98 40.77 35.16 36.65

26. Company
Name
Price % Chg. Market
Capitalization
TTM
PE
P/B ROE Capital
Adequacy
Ratio
Interest
Earned
NIM
Union Bank 36.45 -1.35 23352.95 - 0.69 10.16 13.00 37,479.22 2.09
SBI 378.55 -1.39 337841.17 14.57 1.44 8.69 13.00 269,851.6
6
2.59
PNB 39.80 -2.45 41701.18 40.20 0.65 0.74 14.00 54,918.47 2.10
Bank of
Baroda
78.85 0.00 40776.19 14.85 0.53 1.21 13.00 78,894.70 2.40
IOB 16.75 -2.90 27531.96 44.08 1.70 -52.78 11.00 17,406.11 2.03

27. Name December 2020
Promoters
President of India 89.07%
FIIs 0.66%
DIIs
LIC 3.22%
Others 1.36%
Total DIIs 4.58%
Public 5.69%

28. Group 17
Anushka Ghosh A015 | Harshit Goyal A017 | Lakhabhai Kodiyatar A022