Union Bank of India Result Updated

7/31/2019 Union Bank of India Result Updated

1/11

Please refer to important disclosures at the end of this report 1

Particulars (` cr) 4QFY12 3QFY12 % chg (qoq) 4QFY11 % chg (yoy)NII 1,877 1,781 5.4 1,717 9.3Pre-prov. profit 1,599 1,284 24.5 870 83.9

PAT 773 197 292.5 598 29.4Source: Company, Angel Research

For 4QFY2012, Union Bank of India reported strong net profit growth of 29.4%

yoy, aided by considerably higher provisioning expenses, higher growth in fee

income and lower employee expenses. We recommend a Buy rating on the stockdue to its attractive valuations.Advances growth remains healthy; Slippages normalize: The banks advances,continuing the trend witnessed in the past few quarters, grew at a healthy pace of

17.8% yoy during 4QFY2012 as well. Deposits growth was relatively moderate,

though at 10.1% yoy. Even on the CASA deposits front, growth remained sluggish

at 8.4% on a yoy basis. CASA ratio decreased by 49bp yoy to 31.3% (126bp

sequentially). Expansion in CD ratio coupled with relatively low growth in CASA

led to an increase of 11bp qoq in cost of funds, which offset the 9bp qoq increase

in yield on funds, resulting in sequentially flat reported NIM at 3.3% in

4QFY2012. On the asset-quality front, the banks slippages normalized to `607cr

(annualized slippage ratio of 1.6%) from an average quarterly run rate of `890cr

over the past four quarters. Gross and net NPA ratios improved by 32bp and

18bp qoq, respectively. Provision coverage ratio (including technical write-offs)

dipped by 92bp qoq to 62.2%. The bank restructured advances worth `3,236cr

during the quarter, taking the outstanding restructured book to `11,879cr (6.7%

of loan book in 4QFY2012 as against 5.5% in 3QFY2012). Out of the total

restructured book, the bank has till date witnessed slippages of 10.3%. In terms of

restructuring pipeline, the bank expects one discom to be restructured in

1QFY2013 (exposure of ~`1,100cr).

Outlook and valuation: Going ahead, we expect the bank to report reasonableearnings in FY2013, considering the asset quality improvement, as evident from

normalization of slippages at 1.5-1.6%, much lower than the average quarterly

run rate, minimal profitability impact of a sharp rise in restructuring and further

cushion expected from pick-up in recoveries from technically slipped accounts. In

our view, Union Bank of India, though structurally among the better large PSU

banks, is trading at attractive valuations of 0.7x FY2014E P/ABV, much lower than

peers. Hence, we recommend Buy on the stock with a target price of `276.Key financials

Y/E March (` cr) FY2011 FY2012 FY2013E FY2014ENII 6,216 6,909 8,141 9,452% chg 48.3 11.1 17.8 16.1

Net profit 2,082 1,787 2,363 2,777% chg 0.3 (14.2) 32.2 17.5

NIM (%) 3.0 2.8 2.9 2.8

EPS (`) 39.6 32.3 42.7 50.2P/E (x) 5.1 6.3 4.8 4.0P/ABV (x) 1.0 0.9 0.8 0.7

RoA (%) 1.0 0.7 0.8 0.8

RoE (%) 20.9 14.8 17.0 17.5

Source: Company, Angel Research

BUYCMP `203

Target Price `276

Investment Period 12 months

Stock Info

Sector Banking

Market Cap (` cr) 10,649

Beta 0.9

52 Week High / Low 332/156

Avg. Daily Volume 136,186

Face Value (`

) 10BSE Sensex 16,420

Nifty 4,966

Reuters Code UNBK.BO

Bloomberg Code UNBK@IN

Shareholding Pattern (%)

Promoters 54.4

MF / Banks / Indian Fls 18.9

FII / NRIs / OCBs 9.6Indian Public / Others 17.1

Abs. (%) 3m 1yr 3yr

Sensex (7.5) (11.3) 38.3

Union BoI (19.0) (36.1) 26.5

Vaibhav Agrawal022 3935 7800 Ext: 6808

[email protected]

Varun Varma022 3935 7800 Ext: 6847

[email protected]

Sourabh Taparia022 3935 7800 Ext: 6872

[email protected]

Union Bank of IndiaPerformance Highlights

4QFY2012 Result Update | Banking

May 10, 2012


2/11

Union Bank of India | 4QFY2012 Result Update

May 10, 2012 2

Exhibit 1:4QFY2012 performanceParticulars (` cr) 4QFY12 3QFY12 % chg (qoq) 4QFY11 % chg (yoy)Interest earned 5,743 5,375 6.9 4,615 24.4- on Advances / Bills 4,384 4,030 8.8 3,458 26.8- on investments 1,223 1,143 7.0 1,034 18.3

- on balance with RBI & others 58 112 (48.0) 60 (3.3)

- on others 79 90 (13.1) 64 22.4

Interest expended 3,867 3,594 7.6 2,899 33.4Net interest income 1,877 1,781 5.4 1,717 9.3Other income 755 592 27.6 601 25.8Other income excl. treasury 628 491 28.0 489 28.6

- Fee Income 403 323 24.8 332 21.7

- Treasury Income 127 101 25.7 112 13.4

- Recov. from written off a/cs 162 90 80.0 98 65.3

- Others 63 78 (19.3) 59 6.8

Operating income 2,632 2,373 10.9 2,317 13.6Operating expenses 1,033 1,089 (5.1) 1,448 (28.6)- Employee expenses 595 701 (15.2) 1,053 (43.5)

- Other Opex 438 388 13.1 395 11.0

Pre-provision profit 1,599 1,284 24.5 870 83.9Provisions & Contingencies 517 973 (46.8) 153 237.4- Provisions for NPAs 226 425 (46.8) 98 130.6

- Other Provisions 291 548 (46.8) 55 426.9

PBT 1,082 311 247.3 716 51.0Provision for Tax 308 114 169.6 119 159.8PAT 773 197 292.5 598 29.4Effective Tax Rate (%) 28.5 36.7 (823)bp 16.6 1194bp


Exhibit 2:4QFY2012 Actual vs. EstimatesParticulars (` cr) Actual Estimates Var. (%)NII 1,877 1,857 1.1

Other income 755 597 26.5

Operating income 2,632 2,454 7.3Operating expenses 1,033 1,105 (6.5)

Pre-prov. profit 1,599 1,349 18.5Provisions & cont. 517 591 (12.5)

PBT 1,082 758 42.7

Prov. for taxes 308 158 95.2

PAT 773 600 28.8Source: Company, Angel Research


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May 10, 2012 3

Exhibit 3:4QFY2012 performance analysisParticulars 4QFY12 3QFY12 % chg (qoq) 4QFY11 % chg (yoy)Balance sheetAdvances (`cr) 177,882 156,202 13.9 150,986 17.8Deposits (`cr) 222,869 205,317 8.5 202,461 10.1

Credit-to-Deposit Ratio (%) 79.8 76.1 374bp 74.6 524bp

CASA deposits (` cr) 69,705 66,810 4.3 64,307 8.4

Reported CASA ratio (%) 31.3 32.5 (126)bp 31.8 (49)bp

CAR (%) 11.9 11.7 13bp 13.0 (110)bp

Tier 1 CAR (%) 8.4 8.0 39bp 8.7 (32)bp

Profitability Ratios (%)Yield on funds 9.7 9.6 9bp 8.8 89bp

Cost of funds 6.5 6.4 11bp 5.5 100bp

Reported NIM 3.3 3.3 (5)bp 3.4 (18)bp

Cost-to-income ratio 39.3 45.9 (663)bp 62.5 (2322)bp

Asset qualityGross NPAs (` cr) 5,450 5,209 4.6 3,623 50.4

Gross NPAs (%) 3.0 3.3 (32)bp 2.4 64bp

Net NPAs (`cr) 3,025 2,879 5.1 1,803 67.7

Net NPAs (%) 1.7 1.9 (18)bp 1.2 51bp

Provision Coverage Ratio (%) 62.2 63.1 (92)bp 67.6 (536)bp

Slippage ratio (%) 1.6 1.5 11bp 1.4 25bp

LLP to avg. assets (%) 0.4 0.7 (36)bp 0.2 19bp


Advances growth remains healthy; NIM remains flat qoq

The banks advances, continuing the trend witnessed in the past few quarters, grew

at a healthy pace of 17.8% yoy during 4QFY2012 as well. Deposits growth was

relatively moderate, though at 10.1% yoy. Consequently, CD ratio surged by

524bp yoy (374bp sequentially). Even on the CASA deposits front, growth

remained sluggish at 8.4% on a yoy basis. CASA ratio decreased by 49bp yoy to

31.3% (126bp sequentially). Going forward in FY2013, the bank has guided for

19% growth in advances and 17% growth in deposits.

Exhibit 4:Advances growth remains healthy


Exhibit 5:CASA ratio decreased marginally yoy


26.5

16.7

18.6

16.8

17.8

19.1

16.1

10.0

10.0

10.1

74.673.1

75.376.1

79.8

68.0

70.0

72.0

74.0

76.0

78.0

80.0

82.0

-

10.0

20.0

30.0

4QFY11 1QFY12 2QFY12 3QFY12 4QFY12

Adv. yoy chg (%) Dep. yoy chg (%) CDR (%, RHS)

31.8

31.5

32.1

32.5

31.3

19.2

12.4

8.0 7.68.4

-

10.0

20.0

30.0

29.0

30.0

31.0

32.0

33.0

34.0


CASA ratio (%) CASA yoy growth (%, RHS)


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May 10, 2012 4

Expansion in CD ratio coupled with relatively low growth in CASA led to an

increase of 11bp qoq in cost of funds to 6.5%. Yield on funds also went up by 9bp

sequentially to 9.7%. Consequently, reported NIM remained flat to 3.3% in

4QFY2012. Management has guided for reported NIM to be above 3.0% forFY2013 as compared to 3.3% witnessed in FY2012.

Exhibit 6:Rise in cost of funds offset increase in yield on funds...


Exhibit 7:...results in nearly flat NIM


Healthy growth in non-interest income in 4QFY2012

Non-interest income grew at a healthy pace of 28.6% yoy, partly aided by higher

recoveries from written-off accounts (`162cr in 4QFY2012 as against `98cr in

4QFY2011). Treasury income grew by 13.4% yoy and 25.7% qoq to `127cr. Fee

income showed traction during the quarter, with healthy growth of 21.7% yoy(24.8% qoq). We expect core fee income to grow by 16.0% and 17.0% in FY2013

and FY2014, respectively.

Exhibit 8:Non-interest income grew partly due to higher recoveriesParticulars (` cr) 4QFY12 3QFY12 % chg (qoq) 4QFY11 % chg (yoy)CEB 403 323 24.8 332 21.7

Treasury 127 101 25.7 112 13.4

Recoveries 162 90 80.0 98 65.3

Others 63 78 (19.2) 59 6.8

Other income 755 592 27.6 601 25.8Other income excl. treasury 628 491 28.0 489 28.6


Slippages normalize; restructured book up by 37.4% qoq on

absolute basis

On the asset-quality front, the banks slippages normalized to `607cr (annualized

slippage ratio of 1.6%) from an average quarterly run rate of `890cr over the past

four quarters. Recoveries and upgrades at `255cr were also higher than the

average quarterly run-rate of `211cr, which aided the bank to partially

compensate the increase in gross slippages, leading to a 4.6% qoq increase inabsolute gross NPAs and a 5.1% qoq increase in net NPAs. Consequently, gross

and net NPA ratios improved by 32bp and 18bp qoq, respectively. Provision

coverage ratio (including technical write-offs) dipped by 92bp qoq to 62.2%.

5.54

6.16 6.256.43

6.54

4.50

5.00

5.50

6.00

6.50

7.00


(%)

3.44

3.10

3.21

3.313.26

2.70

2.90

3.10

3.30

3.50


(%)


5/11


May 10, 2012 5

The bank restructured advances worth `3,236cr during the quarter, taking the

outstanding restructured book to `11,879cr (6.7% of loan book in 4QFY2012 as

against 5.5% in 3QFY2012). Out of the total restructured book, the bank has till

date witnessed slippages of 10.3%. In terms of restructuring pipeline, the bankexpects one discom to be restructured in 1QFY2013 (exposure of ~`1,100cr).

Management sounded confident that the bank would take no NPV loss on any SEB

restructuring.

On the back of moderating asset-quality pressures evident from the stabilization in

slippages from the high average run rate over the past four quarters, we have

reduced our provisioning estimates for the bank by 7.7% for FY2013.

Exhibit 9:Slippages normalize at 1.6%


Exhibit 10:Asset quality improves slightly


Exhibit 11:185 branches added in FY2012


Exhibit 12:Cost ratios remain under control


1.4

2.0

4.8

1.5

1.60.2

0.6

0.9

0.7

0.4

0.1

0.4

0.7

1.0

-

1.5

3.0

4.5

6.0


Slippages (%) Credit cost (%, RHS)

2.4

2.6

3.5

3.3

3.0

1.2

1.3

2.0

1.9

1.7

67.6 68.2

60.5

63.1 62.2

50.0

55.0

60.0

65.0

70.0

-

1.0

2.0

3.0

4.0


Gross NPAs (%) Net NPAs (%) PCR (%, RHS)

3,

016

3,

038

3,

051

3,

177

3,

201

2,634 2,6732,757

3,025

3,801

2,000

2,300

2,600

2,900

3,200

3,500

3,800

4,100

2,900

3,000

3,100

3,200

3,300


Branches ATMs (RHS)

62.5

43.8

44.3

45.9

39.3

2.6

1.5 1.61.8

1.6

-

0.6

1.2

1.8

2.4

3.0

-

15.0

30.0

45.0

60.0

75.0


Cost-to-income ratio (%) Opex to average assets (%, RHS)


6/11


May 10, 2012 6

Investment argument

Asset-quality improves

Union Bank of India has managed to improve its asset quality in the past twoquarters, as evident from gross annualized slippage rate of 1.6% as of 4QFY2012,

much lower from the spate of high slippages witnessed a few quarters earlier.

In fact, slippages went as high as 4.8% as of 2QFY2012.

Outlook and valuation

Going ahead, we expect the bank to report reasonable earnings in FY2013,

considering the asset quality improvement, as evident from normalization of

slippages at 1.5-1.6%, much lower than the average quarterly run rate, minimal

profitability impact of a sharp rise in restructuring and further cushion expected

from pick-up in recoveries from technically slipped accounts. In our view, UnionBank of India, though structurally among the better large PSU banks, is trading at

attractive valuations of 0.7x FY2014E P/ABV, much lower than peers. Hence,

we recommend a Buy rating on the stock with a target price of `276.

Exhibit 13:Key assumptionsParticulars (%) Earlier estimates Revised estimatesFY2013 FY2014 FY2013 FY2014Credit growth 13.0 15.0 16.0 17.0

Deposit growth 13.0 17.0 20.0 20.0

CASA ratio 32.7 32.4 29.8 28.9NIMs 2.8 2.9 2.9 2.8

Other income growth 4.3 3.3 (11.1) 15.8

Growth in staff expenses (3.0) 15.0 15.0 15.0

Growth in other expenses 10.0 15.0 15.0 15.0

Slippages 3.5 3.0 2.0 2.0

Treasury gain/(loss) (% of investments) 63.0 65.0 70.0 75.0


Exhibit 14:Change in estimatesParticulars (` cr) FY2013 FY2014Earlierestimates Revisedestimates %chg Earlierestimates Revisedestimates %chgNII 8,126 8,141 0.2 9,441 9,452 0.1

Non-interest income 2,225 2,074 (6.8) 2,547 2,402 (5.7)

Operating income 10,352 10,215 (1.3) 11,987 11,854 (1.1)Operating expenses 4,616 4,586 (0.7) 5,309 5,273 (0.7)

Pre-prov. profit 5,735 5,630 (1.8) 6,679 6,581 (1.5)Provisions & cont. 2,310 2,132 (7.7) 2,517 2,470 (1.9)

PBT 3,425 3,498 2.1 4,161 4,111 (1.2)

Prov. for taxes 1,111 1,135 2.1 1,350 1,334 (1.2)

PAT 2,314 2,363 2.1 2,811 2,777 (1.2)Source: Company, Angel Research


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May 10, 2012 7

Exhibit 15:P/ABV band


0

100

200

300

400

500

600

A

pr-06

O

ct-06

A

pr-07

O

ct-07

A

pr-08

O

ct-08

A

pr-09

O

ct-09

A

pr-10

O

ct-10

A

pr-11

O

ct-11

A

pr-12

O

ct-12

Price (`) 0.7x 1x 1.3x 1.6x 1.9x


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May 10, 2012 8

Exhibit 16: Recommendation summary

Company Reco. CMP(`) Tgt. price(`) Upside(%) FY2014EP/ABV (x) FY2014ETgt. P/ABV (x) FY2014EP/E (x) FY2012-14EEPS CAGR (%) FY2014ERoA (%) FY2014ERoE (%)AxisBk Buy 979 1,587 62.1 1.3 2.2 7.0 16.4 1.5 20.3

FedBk Neutral 408 - - 1.0 - 7.1 13.0 1.3 14.5

HDFCBk Accumulate 517 567 9.7 3.0 3.3 14.6 27.0 1.7 22.1

ICICIBk* Buy 813 1,201 47.8 1.3 1.9 10.0 20.4 1.5 16.0

SIB Neutral 23 - - 1.1 - 6.1 4.5 0.8 17.5

YesBk Buy 326 470 43.9 1.7 2.4 7.9 22.5 1.4 23.3

AllBk Accumulate 152 166 9.3 0.6 0.7 3.6 6.2 0.9 17.6

AndhBk Neutral 105 - - 0.6 - 4.1 3.3 0.9 16.0

BOB Buy 641 925 44.5 0.7 1.1 4.3 11.1 1.1 18.2

BOI Buy 353 411 16.3 0.7 1.0 4.4 23.3 0.8 16.9

BOM Buy 48 57 18.7 0.6 0.7 3.7 45.3 0.7 17.2

CanBk Buy 419 522 24.7 0.7 0.9 4.5 11.8 0.9 16.4CentBk Neutral 77 - - 0.7 - 3.9 45.7 0.5 13.8

CorpBk Buy 404 504 24.7 0.5 0.7 3.6 5.3 0.8 16.5

DenaBk Buy 84 118 39.8 0.5 0.7 3.3 6.2 0.9 16.9

IDBI# Buy 92 117 26.5 0.6 0.7 3.9 22.7 0.9 14.8

IndBk Buy 196 240 22.4 0.7 0.8 4.0 5.4 1.2 18.2

IOB Buy 82 101 23.7 0.5 0.6 3.8 28.3 0.6 13.9

J&KBk Neutral 854 - - 0.8 - 4.4 8.8 1.4 18.6

OBC Buy 220 285 29.6 0.5 0.6 3.4 27.7 0.8 14.3

PNB Buy 754 1,117 48.1 0.7 1.1 4.3 10.3 1.0 18.1

SBI* Buy 1,844 2,593 40.6 1.1 1.6 6.8 23.6 1.0 19.1

SynBk Buy 91 128 41.1 0.5 0.8 3.3 8.7 0.8 17.1

UcoBk Neutral 68 - - 0.8 - 4.7 7.0 0.5 13.4

UnionBk Buy 203 276 35.9 0.7 0.9 4.0 24.8 0.8 17.5UtdBk Buy 58 85 46.3 0.4 0.6 2.7 11.4 0.7 15.9

VijBk Neutral 53 - - 0.6 - 4.3 13.5 0.5 13.7

Source: Company, Angel Research; Note:*Target multiples=SOTP Target Price/ABV (including subsidiaries), #Without adjusting for SASF


9/11


May 10, 2012 9

Income statementY/E March (` cr) FY09 FY10 FY11 FY12 FY13E FY14ENII 3,814 4,192 6,216 6,909 8,141 9,452- YoY Growth (%) 23.6 9.9 48.3 11.1 17.8 16.1Other Income 1,483 1,975 2,039 2,332 2,074 2,402- YoY Growth (%) 20.3 33.2 3.2 14.4 (11.1) 15.8

Operating Income 5,296 6,167 8,255 9,241 10,215 11,854- YoY Growth (%) 22.6 16.4 33.9 11.9 10.5 16.0

Operating Expenses 2,214 2,508 3,950 3,988 4,586 5,273- YoY Growth (%) 39.0 13.3 57.5 1.0 15.0 15.0

Pre - Provision Profit 3,082 3,659 4,305 5,254 5,630 6,581- YoY Growth (%) 13.1 18.7 17.6 22.0 7.2 16.9

Prov. & Cont. 725 826 1,350 2,541 2,132 2,470- YoY Growth (%) (16.2) 13.9 63.3 88.3 (16.1) 15.9

Profit Before Tax 2,357 2,833 2,955 2,713 3,498 4,111- YoY Growth (%) 26.7 20.2 4.3 (8.2) 28.9 17.5

Prov. for Taxation 630 758 873 926 1,135 1,334- as a % of PBT 26.7 26.8 29.6 34.1 32.4 32.4

PAT 1,727 2,075 2,082 1,787 2,363 2,777- YoY Growth (%) 24.5 20.2 0.3 (14.2) 32.2 17.5

Balance sheetY/E March (` cr) FY09 FY10 FY11 FY12 FY13E FY14EShare Capital 505 505 635 662 662 662Reserves & Surplus 8,235 9,919 12,129 13,971 15,780 17,906

Deposits 138,703 170,040 202,461 222,869 267,443 320,931

- Growth (%) 33.5 22.6 19.1 10.1 20.0 20.0

Borrowings 3,885 3,125 7,126 7,918 9,451 11,296

Tier 2 Capital 4,890 6,090 6,190 9,992 11,590 13,561

Other Liab & Prov. 4,757 5,483 7,443 6,800 8,071 9,709

Total Liabilities 160,976 195,162 235,984 262,211 312,997 374,064Cash balances 8,992 12,468 17,610 11,634 10,698 12,837

Bank balances 6,993 3,308 2,488 4,042 4,824 5,766

Investments 42,997 54,404 58,399 62,364 83,706 105,262

Advances 96,534 119,315 150,986 177,882 206,343 241,422

- Growth (%) 29.8 23.6 26.5 17.8 16.0 17.0

Fixed Assets 2,335 2,305 2,293 2,336 2,705 3,135

Other Assets 3,124 3,361 4,208 3,955 4,721 5,642

Total Assets 160,976 195,162 235,984 262,211 312,997 374,064- Growth (%) 29.7 21.2 20.9 11.1 19.4 19.5


10/11


May 10, 2012 10

Ratio analysisY/E March FY09 FY10 FY11 FY12 FY13E FY14EProfitability ratios (%)NIMs 2.8 2.4 3.0 2.8 2.9 2.8Cost to Income Ratio 41.8 40.7 47.8 43.1 44.9 44.5

RoA 1.2 1.2 1.0 0.7 0.8 0.8

RoE 27.2 26.2 20.9 14.8 17.0 17.5

B/S ratios (%)CASA Ratio 30.1 31.7 31.8 31.3 29.8 28.9

Credit/Deposit Ratio 69.6 70.2 74.6 79.8 77.2 75.2

CAR 12.0 12.5 13.0 15.4 13.7 13.2

- Tier I 7.4 7.9 8.7 8.9 7.8 7.4

Asset Quality (%)Gross NPAs 2.0 2.2 2.4 3.0 3.6 4.1

Net NPAs 0.3 0.8 1.2 1.7 1.4 1.3

Slippages 1.6 1.8 2.4 2.5 2.0 2.0

Loan Loss Prov./Avg. Assets 0.4 0.4 0.6 0.6 0.7 0.6

Provision Coverage 83.1 74.0 66.8 62.2 70.0 75.0

Per Share Data (`)EPS 34.2 41.1 39.6 32.3 42.7 50.2

ABVPS 139.7 173.6 202.6 216.6 259.1 306.7

DPS 5.0 5.5 8.0 8.0 8.5 10.0

Valuation RatiosPER (x) 5.9 4.9 5.1 6.3 4.8 4.0

P/ABVPS (x) 1.5 1.2 1.0 0.9 0.8 0.7

Dividend Yield 2.5 2.7 3.9 3.9 4.2 4.9

DuPont Analysis (%)NII 2.7 2.4 2.9 2.8 2.8 2.8

(-) Prov. Exp. 0.5 0.5 0.6 1.0 0.7 0.7

Adj. NII 2.2 1.9 2.3 1.8 2.1 2.0

Treasury 0.2 0.3 0.2 0.3 0.1 0.1

Int. Sens. Inc. 2.4 2.2 2.5 2.0 2.2 2.1

Other Inc. 0.8 0.8 0.7 0.7 0.7 0.6

Op. Inc. 3.2 3.0 3.2 2.7 2.8 2.7

Opex 1.6 1.4 1.8 1.6 1.6 1.5PBT 1.7 1.6 1.4 1.1 1.2 1.2

Taxes 0.4 0.4 0.4 0.4 0.4 0.4

RoA before pref. div. 1.2 1.2 1.0 0.7 0.8 0.8

Pref. div. - - 0.0 0.0 0.0 0.0

RoA 1.2 1.2 1.0 0.7 0.8 0.8Leverage (x) 22.5 22.5 21.7 20.7 20.8 21.7

RoE 27.2 26.2 20.9 14.8 17.0 17.5


11/11


May 10, 2012 11

Research Team Tel: 022 - 39357800 E-mail: [email protected] Website: www.angelbroking.com

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Reports based on technical and derivative analysis center on studying charts of a stock's price movement, outstanding positions and

trading volume, as opposed to focusing on a company's fundamentals and, as such, may not match with a report on a company's

fundamentals.

The information in this document has been printed on the basis of publicly available information, internal data and other reliablesources believed to be true, but we do not represent that it is accurate or complete and it should not be relied on as such, as thisdocument is for general guidance only. Angel Broking Limited or any of its affiliates/ group companies shall not be in any wayresponsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this report .Angel Broking Limited has not independently verified all the information contained within this document. Accordingly, we cannot testify,nor make any representation or warranty, express or implied, to the accuracy, contents or data contained within this document. WhileAngel Broking Limited endeavours to update on a reasonable basis the information discussed in this material, there may be regulatory,compliance, or other reasons that prevent us from doing so.

This document is being supplied to you solely for your information, and its contents, information or data may not be reproduced,

redistributed or passed on, directly or indirectly.

Angel Broking Limited and its affiliates may seek to provide or have engaged in providing corporate finance, investment banking or

other advisory services in a merger or specific transaction to the companies referred to in this report, as on the date of this report or in

the past.

Neither Angel Broking Limited, nor its directors, employees or affiliates shall be liable for any loss or damage that may arise from or in

connection with the use of this information.

Note: Please refer to the important `Stock Holding Disclosure' report on the Angel website (Research Section). Also, please refer to thelatest update on respective stocks for the disclosure status in respect of those stocks. Angel Broking Limited and its affiliates may haveinvestment positions in the stocks recommended in this report.

Disclosure of Interest Statement Union Bank of India

1. Analyst ownership of the stock No

2. Angel and its Group companies ownership of the stock No

3. Angel and its Group companies' Directors ownership of the stock No

4. Broking relationship with company covered No

Ratings (Returns): Buy (> 15%) Accumulate (5% to 15%) Neutral (-5 to 5%)Reduce (-5% to -15%) Sell (< -15%)

Note: We have not considered any Exposure below`

1 lakh for Angel, its Group companies and Directors

Documents

Union Bank of India Result Updated