1QFY2013 Result Update | Banking

August 8, 2012

United Bank of India

Performance Highlights

Particulars (` cr) NII Pre-prov. profit PAT

Source: Company, Angel Research;

BUY
CMP Target Price
% chg (qoq) 10.4 14.3 16.5 1QFY12 569 417 132 % chg (yoy) 20.1 30.9 31.3

`57 `79 12 months

1QFY13 684 546 174

4QFY12 619 478 149

Investment Period
Stock Info Sector Market Cap (` cr) Beta 52 Week High / Low Avg. Daily Volume Face Value (`) BSE Sensex Nifty Reuters Code Bloomberg Code

Banking 2,052 1.2 90/46 69,608 10 17,601 5,338 UBOI.BO UNTDB@IN

During 1QFY2013, United Bank of India (UBI) registered a strong performance, with net profit growth of 31.3% yoy and operating profit growth of 30.9% yoy, which was above our estimates primarily due to higher other income and lower operating expenses than what we estimated.
NIMs flat sequentially; Asset quality pressures remain: During 1QFY2013, the banks advances and deposits grew at a healthy pace of 19.4% and 16.3% respectively. The growth in advances was largely aided by higher priority sector lending, primarily to the agri and small industries segment. Current deposits grew at a strong 22.2% yoy, while growth in savings deposits remained healthy at 15.4% yoy. The reported CASA ratio improved by 22bp to 40.5% on a yoy basis. The bank further reduced its share of bulk deposits to total deposits to 16.2% from 21.5% in 1QFY2012. The reported NIM remained almost flat sequentially to 3.1%. The bank reported a strong performance even on the non-interest income (excluding treasury) front, with a growth of 30.2% yoy. On the asset quality front, the bank witnessed a marginal sequential increase of ~5bp each in the gross and net NPA ratio to 3.5% and 1.8% respectively. The banks slippages came in at `298cr compared to `590cr in 4QFY2012 (excluding NPA on advance to Kingfisher ~`276cr). The annualized slippage ratio stood at 1.9% compared to 4.4% in 4QFY2012 and 2.9% in 1QFY2012. The PCR for the bank stood at 69.3%. The bank restructured advances worth `1,120cr during the quarter (largely contributed by restructuring of advances to Rajasthan discom, HCC, and Bharti Shipyard), taking its outstanding restructured book to `4,093cr. The management expects no further restructuring on any other discom advance (total discom advances `740cr). However, they expect further restructuring of ~`600cr in the coming quarter.

Shareholding Pattern (%) Promoters MF / Banks / Indian Fls FII / NRIs / OCBs Indian Public / Others 81.6 6.3 0.8 11.3

Abs. (%) Sensex UBI*

3m 6.5 (5.4)

1yr 3.7 (32.2)

3yr 16.3 NA

Outlook and valuation: We believe the bank has several levers for structurally
improving its RoA. But execution risks in terms of improving yields while maintaining the asset quality continue to remain an investment concern on the stock. That said, the bank is trading at an inexpensive valuations of 0.4x FY2013E ABV (one of the lowest in the industry). The banks peers are trading at 0.6x-0.7x FY2014 ABV in spite of having similar and in some cases much lower CASA ratios. We value the stock at 0.6x FY2014E ABV; hence, we recommend a Buy rating on the stock with a target price of `79.

*Note: Listed in March, 2010

Key financials (Standalone)

Y/E March (` cr) NII % chg Net profit available to eq. shareholders % chg NIM (%) EPS (`) P/E (x) P/ABV (x) RoA (%) RoE (%)
Source: Company, Angel Research

FY2011 2,169 55.9 457 49.7 2.7 13.3 4.3 0.6 0.6 14.1

FY2012 2,479 14.3 546 19.4 2.7 15.1 3.8 0.5 0.7 14.2

FY2013E 2,943 18.7 658 20.6 2.8 18.2 3.1 0.5 0.7 15.0

FY2014E 3,457 17.5 829 25.9 2.9 23.0 2.5 0.4 0.8 16.7

Vaibhav Agrawal
022 3935 7800 Ext: 6808 vaibhav.agrawal@angelbroking.com

Varun Varma
022 3935 7800 Ext: 6847 varun.varma@angelbroking.com

Sourabh Taparia
022 3935 7800 Ext: 6872 sourabh.taparia@angelbroking.com

Please refer to important disclosures at the end of this report

United Bank of India | 1QFY2013 Result Update

Exhibit 1: 1QFY2013 performance (Standalone)

Particulars (` cr) Interest earned - on Advances / Bills - on investments - on balance with RBI & others - on others Interest Expended Net Interest Income Other income Other income excl. treasury - Fee Income - Treasury Income - Recoveries from writ.-off acc - Others Operating income Operating expenses - Employee expenses - Other Opex Pre-provision Profit Provisions & Contingencies - Provisions for NPAs - Provisions for Investments - Other provisions PBT Provision for Tax PAT Effective Tax Rate (%)
Source: Company, Angel Research

1QFY13 2,284 1,751 514 12 6 1,600 684 215 134 55 81 10 70 899 353 226 127 546 292 125 167 254 80 174 31.6

4QFY12 2,132 1,606 491 7 29 1,513 619 238 180 48 58 33 99 857 379 234 146 478 307 342 (36) 1 171 22 149 12.8

% chg (qoq) 7.1 9.0 4.9 70.8 5.8 10.4 (9.5) (25.2) 13.4 38.9 (70.2) (28.9) 4.9 (7.0) (3.3) (12.9) 14.3 (4.8) (63.3) 48.4 266.4 16.5 1878bp

1QFY12 1,838 1,394 443 2 1,269 569 170 103 45 67 20 38 739 322 215 107 417 218 137 54 27 199 67 132 33.6

% chg (yoy) 24.2 25.6 16.1 652.9 26.1 20.1 26.7 30.2 20.9 21.4 (50.7) 83.4 21.7 9.7 5.3 18.5 30.9 34.0 (8.6) 524.9 27.4 19.7 31.3 (203)bp

FY2012 7,961 6,034 1,878 16 34 5,482 2,479 733 515 183 218 85 247 3,212 1,383 891 492 1,829 983 690 79 214 845 213 633 25.2

FY2011 6,341 4,634 1,673 10 25 4,172 2,169 637 439 174 198 59 206 2,806 1,299 814 485 1,507 838 436 402 669 145 524 21.7

% chg (yoy) 25.5 30.2 12.3 56.3 35.9 31.4 14.3 15.0 17.5 5.3 9.6 44.3 20.1 14.5 6.5 9.4 1.5 21.4 17.4 58.2 (46.6) 26.4 46.8 20.7 350bp

Exhibit 2: 1QFY2013 Actual vs. Angel estimates

Particulars (` cr) Net interest income Non-interest income Operating income Operating expenses Pre-prov. profit Provisions & cont. PBT Prov. for taxes PAT
Source: Company, Angel Research

Actual 684 215 899 353 546 292 254 80 174

Estimates 648 148 796 374 422 220 202 59 143

% chg 5.5 45.4 12.9 (5.6) 29.4 32.5 25.9 37.0 21.3

August 8, 2012

United Bank of India | 1QFY2013 Result Update

Exhibit 3: 1QFY2013 performance (Standalone)

Particulars Balance sheet Advances (` cr) Deposits (` cr) Credit-to-Deposit Ratio (%) Current deposits (` cr) Saving deposits (` cr) CASA deposits (` cr) CASA ratio (%) CAR (%) Tier I CAR (%) Profitability Ratios (%) Cost of deposits Yield on advances Yield on investments Reported NIM Cost-to-income ratio Asset quality Gross NPAs (` cr) Gross NPAs (%) Net NPAs (` cr) Net NPAs (%) Provision Coverage Ratio (%) Slippage ratio (%) NPA to avg. assets (%)
Source: Company, Angel Research

1QFY13 4QFY12 62,825 89,639 70.1 8,447 27,830 36,277 40.5 12.5 8.7 7.0 11.7 7.9 3.1 39.2 2,210 3.5 1,106 1.8 69.3 1.9 0.5 63,043 89,116 70.7 9,741 26,589 36,330 40.8 12.7 8.8 6.9 11.7 7.8 3.0 44.2 2,176 3.4 1,076 1.7 69.2 4.4 1.4

%chg (qoq) 1QFY12 (0.3) 0.6 (66)bp (13.3) 4.7 (0.1) (30)bp (19)bp (9)bp 6bp (2)bp 7bp 5bp (500)bp 1.6 6bp 2.8 5bp 17bp (252)bp (89)bp 52,607 77,104 68.2 6,914 24,120 31,034 40.2 13.2 9.1 6.4 11.2 7.8 3.0 43.5 1,535 2.9 878 1.7 70.2 2.9 0.6

%chg (yoy) 19.4 16.3 186bp 22.2 15.4 16.9 22bp (73)bp (41)bp 60bp 51bp 13bp 3bp (427)bp 44.0 58bp 25.9 10bp (92)bp (104)bp (13)bp

Business grew at healthy pace

During 1QFY2013, the banks advances and deposits grew at a healthy pace of 19.4% and 16.3%, respectively. The growth in advances was largely aided by higher priority sector lending, primarily to the agri (growth of 45.1% yoy) and small industries segment (28.1% yoy). The corporate loan book registered a growth of 18.4% yoy, while the overall retail loan book remained flat on a yoy basis despite moderate growth being witnessed in housing and education loans. On the liabilities front, current deposits grew at a strong 22.2% yoy, while growth in savings deposits remained healthy at 15.4% yoy. The reported CASA ratio improved by 22bp to 40.5% on a y-o-y basis, however was lower sequentially by 30bp. The bank further reduced its bulk deposits during the quarter, which now as a proportion of total deposits stand at 16.2% compared to 18.0% in 4QFY2012 and 21.5% in 1QFY2012.

August 8, 2012

United Bank of India | 1QFY2013 Result Update

Exhibit 4: Business growth healthy during 1QFY2013

Adv. yoy chg (%) 25.0 20.0 15.0 10.0 5.0 1QFY12 2QFY12 3QFY12 4QFY12 1QFY13
Source: Company, Angel Research

Exhibit 5: CASA ratio above 40% levels

CASA ratio 41.2 40.8 18.3 13.8 14.4 11.9 CASA yoy growth (%, RHS) 16.9 20.0 15.0 10.0

Dep. yoy chg (%) 71.4 70.7

CDR (%, RHS) 72.0 70.1

69.4 68.2

70.0

40.4 40.0

68.0

17.9 15.6

17.3 13.3

16.6 13.3

17.8 14.5

19.4 16.3

40.2

39.9

39.8

40.8

66.0

39.2 1QFY12 2QFY12 3QFY12 4QFY12 1QFY13

40.5

39.6

5.0 -

Source: Company, Angel Research

NIM remains almost flat sequentially

During the quarter, the reported NIM for the bank remained almost flat sequentially at 3.05%. The cost of deposits was higher sequentially by 6bp to 7.0%, while the yield on advances was almost flat on a qoq basis to 11.7%. The yield on investments was higher by 7bp to 7.9%.

Exhibit 6: YoA almost flat sequentially

(%) 12.60 12.00 11.40 10.80 10.20 1QFY12 2QFY12 3QFY12 4QFY12 1QFY13 11.16 11.98 11.70 11.69 11.67

Exhibit 7: NIM remain almost flat sequentially

(%)
3.50 3.02 3.00 3.16 3.00 3.38 3.05

2.50

2.00 1QFY12 2QFY12 3QFY12 4QFY12 1QFY13

Source: Company, Angel Research

Source: Company, Angel Research

Growth in non-interest income remained strong

During the quarter, the bank reported a strong performance on the non-interest income (excluding treasury) front, with a growth of 30.2% yoy. Growth in income from commission, exchange and brokerage segment was healthy at 20.9% yoy. Recoveries from written off accounts came in lower at `10cr as against `20cr in 1QFY2012, however the banks treasury income grew by 21.4% yoy to `81cr.

Asset quality pressures remain

On the asset quality front, the bank witnessed a marginal sequential increase of 5bp each in the gross and net NPA ratio to 3.5% and 1.8% respectively. The banks slippages came in at `298cr compared to `590cr in 4QFY2012 (excluding NPA on advance to Kingfisher ~`276cr). The annualized slippage ratio for the
August 8, 2012

United Bank of India | 1QFY2013 Result Update

quarter stood at 1.9% compared to 4.4% in 4QFY2012 and 2.9% in 1QFY2012. As of 1QFY2013, the provision-to-coverage ratio including technical write-offs stood at 69.3% (69.2% in 4QFY2012). The bank restructured advances worth `1,120cr during the quarter, taking its outstanding restructured book to `4,093cr. The sharp jump in the restructuring book was largely due to restructuring of advances to the Rajasthan discom (`417cr), HCC (`311cr), and Bharti Shipyard (`198cr). The management expects no further restructuring on any other discom advance (total discom advances at `740cr). However, they expect further restructuring in the pipeline by ~`600cr in the coming quarter.

Exhibit 8: NPA ratios remain on the higher side

Gross NPAs (%) 4.0 3.5 3.0 2.5 2.0 1.5 1.0 0.5 Net NPAs (%) PCR (%, RHS) 80.0 65.0 70.2 60.0 50.0 66.5 69.2 69.3 70.0

Exhibit 9: Slippages at normalized levels

Slippages (%) 5.0 4.0 3.0 2.0 1.0 1QFY12 2QFY12 3QFY12 4QFY12 1QFY13 0.6 0.5 0.4 0.5 Credit cost (%, RHS) 1.4 1.6 1.4 1.2 1.0 0.8 0.6 0.4 0.2 -

2.9 1.7

3.5 2.2

3.3 2.0

3.4 1.7

3.5 1.8

2.9

4.6

2.7

4.4

40.0 1QFY12 2QFY12 3QFY12 4QFY12 1QFY13

Source: Company, Angel Research

Source: Company, Angel Research

Exhibit 10: Cost-to-income ratio trends

Cost-to-income ratio (%) 46.0 44.0 42.0 40.0 1.5 1.4 1.4 1.5 Opex to average assets (%, RHS) 1.5 1.6 1.5 1.4 1.3 1.2 1QFY12 2QFY12 3QFY12 4QFY12 1QFY13
Source: Company, Angel Research

Exhibit 11: Fee income growth trends

Fee income to avg assets (%) 0.8 0.6 0.4 0.2 1QFY12 2QFY12 3QFY12 4QFY12 1QFY13 16.2 14.3 (2.1) Fee income yoy chg (%, RHS) 39.1 30.2 50.0 40.0 30.0 20.0 10.0

1.9 0.5
-

43.5

42.7

41.8

44.2

39.2

0.5

0.5

0.5

0.7

38.0 36.0

(10.0)

Source: Company, Angel Research

August 8, 2012

United Bank of India | 1QFY2013 Result Update

Investment arguments
Structurally strong CASA than peers
UBI has historically had a strong CASA ratio. The banks average CASA ratio during FY200512 has been 41.4%. Even during 1QFY2013, the bank had maintained a strong CASA ratio of ~40%, which is the highest among its peers, which consists of banks like Uco Bank, Allahabad Bank, Dena Bank and Syndicate Bank. Of the total CASA deposits, saving deposits, which are less volatile, accounted for 31.0% of the total deposits, while current deposits accounted for 9.4%. This high proportion of CASA deposits is mainly because of a large retail customer base spread across the eastern and northeastern regions. Of the total branch network of ~1,700 branches, 81% is concentrated in the eastern and northeastern regions. Moreover, 59% of UBIs branches are located in rural and semi-urban areas, giving the bank an access to low-cost deposits.

leading to higher NIM

In 4QFY2010, UBI reported a NIM of 2.48%. However, measures taken by the management in the form of shedding high-cost bulk deposits (16.2% in 1QFY2013 as against nearly 30% two years ago), improvement in CASA ratio by ~250bp from 38.1% in 4QFY2010 to 40.5% in 1QFY2013, shedding of low-yielding loans (~`1,700cr during FY2011) and a substantial increase in CD ratio (664bp increase in FY2011 and 201bp increase in FY2012) have resulted in a sharp rise in the NIM to 3.1% in 1QFY2013. Further, we believe with a strong CASA ratio, the bank is better placed than its peers to sustain its NIM going forward.

Investment concerns Lower other income compared to peers

During FY2012, other income excluding treasury grew by a reasonably healthy 17.5% yoy, in-line with the banks advances growth. In spite of the decent growth witnessed, other income (excluding treasury) as a percentage of average assets stands at 0.5%, which is on the lower side compared to peers. Even after factoring in a 16.2% CAGR over FY201214E in other income excluding treasury and taking into account revision in fee charges during 1HFY2012, the proportion of other income excluding treasury to average assets is expected to only increase to 0.6% of overall assets.

Outlook and valuation

We believe the bank has several levers for structurally improving its RoA, but execution risks in terms of improving yields while maintaining the asset quality continue to remain an investment concern on the stock. That said, the bank is trading at an inexpensive valuation of 0.4x FY2013E ABV (one of the lowest in the industry). The banks peers are trading at 0.6x-0.7x FY2014 ABV, in spite of having similar, and in some cases much lower CASA ratios. We value the stock at 0.6x FY2014E ABV; hence, we recommend a Buy rating on the stock with a target price of `79.

August 8, 2012

United Bank of India | 1QFY2013 Result Update

Exhibit 12: Key assumptions

Particulars (%) Credit growth Deposit growth CASA ratio NIMs Other income growth Growth in staff expenses Growth in other expenses Slippages
Source: Angel Research

Earlier estimates FY2013 15.5 11.0 40.8 2.8 (12.2) 15.0 15.0 3.1 FY2014 17.0 14.0 40.4 3.0 12.9 15.0 15.0 3.0

Revised estimates FY2013 15.0 11.0 40.8 2.8 (5.7) 12.0 12.0 2.5 FY2014 17.0 14.0 40.4 2.9 6.5 16.0 16.0 2.5

Exhibit 13: Change in estimates

FY2013 Particulars (` cr) NII Non-interest income Operating income Operating expenses Pre-prov. profit Provisions & cont. PBT Prov. for taxes PAT
Source: Angel Research

FY2014 Var. (%) (0.4) 7.4 1.0 (2.6) 3.8 8.3 0.1 0.1 0.1 Revised Earlier estimates estimates 3,485 727 4,212 1,829 2,382 1,074 1,309 425 884 3,457 737 4,194 1,797 2,397 1,053 1,344 436 908 Var. (%) (0.8) 1.4 (0.4) (1.8) 0.6 (1.9) 2.7 2.7 2.7

Revised Earlier estimates estimates 2,955 644 3,599 1,591 2,008 918 1,090 354 736 2,943 691 3,634 1,549 2,085 994 1,091 354 737

Exhibit 14: P/ABV band

Price (`) 180 160 140 120 100 80 60 40
Sep-10 Sep-11 Sep-12 Jun-10 Jun-11 Jun-12 Dec-10 Dec-11 Dec-12 Mar-10 Mar-11 Mar-12 Mar-13

0.5x

0.65x

0.8x

0.95x

1.1x

Source: Company, Angel Research

August 8, 2012

United Bank of India | 1QFY2013 Result Update

Exhibit 15: Recommendation summary

Company AxisBk FedBk HDFCBk ICICIBk* SIB YesBk AllBk AndhBk BOB BOI BOM CanBk CentBk CorpBk DenaBk IDBI# IndBk IOB J&KBk OBC PNB SBI* SynBk UcoBk UnionBk UtdBk VijBk Reco. Buy Accumulate Neutral Buy Accumulate Buy Accumulate Accumulate Buy Buy Neutral Buy Neutral Accumulate Buy Buy Accumulate Accumulate Neutral Buy Buy Buy Buy Neutral Buy Buy Neutral CMP (`) 1,097 425 598 958 23 367 130 100 658 285 47 361 72 400 90 87 178 73 936 237 744 2,061 96 69 170 57 53 Tgt. price (`) 1,373 458 1,169 27 453 147 107 851 354 421 454 107 105 197 84 278 975 2,443 119 238 79 Upside (%) 25.2 7.9 22.1 13.8 23.4 13.1 7.4 29.2 24.1 16.7 13.4 18.7 21.6 10.5 14.8 17.1 31.1 18.5 23.1 39.8 38.2 FY2014E P/ABV (x) 1.5 1.0 3.4 1.5 1.0 1.9 0.5 0.6 0.8 0.7 0.6 0.6 0.7 0.5 0.5 0.5 0.6 0.5 0.8 0.5 0.7 1.3 0.5 0.7 0.6 0.4 0.6 FY2014E Tgt. P/ABV (x) 1.9 1.1 1.9 1.1 2.3 0.6 0.7 1.0 0.9 0.8 0.7 0.7 0.7 0.7 0.5 0.6 1.0 1.5 0.7 0.8 0.6 FY2014E P/E (x) 7.7 7.3 16.6 11.7 5.5 8.6 3.2 3.9 4.5 4.0 4.1 4.2 3.3 3.6 3.6 3.7 4.0 3.2 5.1 3.6 4.3 7.8 3.3 3.9 3.4 2.5 4.6 FY2012-14E EPS CAGR (%) 18.1 12.1 27.9 20.9 9.0 24.2 4.6 2.7 10.1 23.5 35.6 7.2 103.6 2.1 5.1 21.2 6.4 31.0 5.1 29.0 9.9 23.1 15.7 11.7 23.6 23.2 13.0 FY2014E RoA (%) 1.6 1.3 1.8 1.4 0.9 1.5 0.9 0.9 1.0 0.8 0.6 0.8 0.6 0.8 0.8 0.9 1.1 0.6 1.2 0.9 1.0 1.0 0.8 0.6 0.8 0.8 0.5 FY2014E RoE (%) 20.8 14.7 22.0 15.5 18.5 23.8 17.0 15.8 18.0 17.0 15.5 15.3 15.1 16.3 16.4 14.7 17.4 14.4 17.5 14.3 18.0 18.1 17.8 15.3 17.1 16.7 13.3

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

Company Background
United Bank of India is a mid-sized public sector bank, with operations mostly concentrated in the eastern and northeastern states of India (81%). These states have contributed to the bank's high CASA deposits, though low credit demand especially in the northeast has prompted the bank to so far rely more on large corporate loans, including in consortium.

August 8, 2012

United Bank of India | 1QFY2013 Result Update

Income statement (Standalone)

Y/E March (` cr) NII - YoY Growth (%) Other Income - YoY Growth (%) Operating Income - YoY Growth (%) Operating Expenses - YoY Growth (%) Pre - Provision Profit - YoY Growth (%) Prov. & Cont. - YoY Growth (%) Profit Before Tax - YoY Growth (%) Prov. for Taxation - as a % of PBT PAT - YoY Growth (%) Preference Dividend PAT for Eqty.SH - YoY Growth (%) FY08 905 (21.3) 466 33.9 1,370 (8.5) 903 16.0 467 (35.1) 288 (30.7) 179 (41.1) 34 19.1 145 (45.7) 145 (45.7) FY09 1,162 28.4 491 5.5 1,652 20.6 1,045 15.7 607 30.0 431 49.7 176 (1.6) 62 35.0 115 (20.9) 115 (20.9) FY10 1,391 19.8 559 13.8 1,950 18.0 1,074 2.8 876 44.2 465 8.0 411 132.6 88 21.5 322 181.0 17 305 166.1 FY11 2,169 55.9 637 14.0 2,806 43.9 1,299 21.0 1,507 72.1 838 80.1 669 63.0 145 21.7 524 62.5 67 457 49.7 FY12 2,479 14.3 733 15.0 3,212 14.5 1,383 6.5 1,829 21.4 980 17.0 849 26.8 216 25.5 633 20.7 87 546 19.4 FY13E 2,943 18.7 691 (5.7) 3,634 13.1 1,549 12.0 2,085 14.0 994 1.4 1,091 28.6 354 32.4 737 16.6 79 658 20.6 FY14E 3,457 17.5 737 6.5 4,194 15.4 1,797 16.0 2,397 14.9 1,053 5.9 1,344 23.1 436 32.4 908 23.1 79 829 25.9

Balance sheet (Standalone)

Y/E March (` cr) Share Capital Equity Preference Reserves & Surplus Deposits - Growth (%) Borrowings Tier 2 Capital Other Liab & Prov. Total Liabilities Cash balances Bank balances Investments Advances - Growth (%) Fixed Assets Other Assets Total Assets - Growth (%) FY08 1,532 1,532 1,129 46,971 26.4 1,162 1,275 2,242 54,311 5,249 623 18,515 27,858 25.7 623 1,443 54,311 28.4 FY09 1,782 1,532 250 1,295 16.1 457 1,525 2,436 4,532 1,878 FY10 866 316 550 3,037 25.0 915 1,525 2,481 4,707 1,671 FY11 1,144 344 800 3,877 77,845 14.2 2,887 1,525 2,763 5,943 1,385 26,259 53,502 26.4 819 2,133 16.9 FY12 1,161 361 800 4,419 89,116 14.5 3,195 1,725 2,394 5,092 2,185 29,059 63,043 17.8 805 1,826 13.3 FY13E 1,161 361 800 4,930 11.0 3,547 1,984 2,691 3,957 2,426 31,455 72,500 15.0 867 2,027 11.0 FY14E 1,161 361 800 5,570 14.0 4,036 2,321 3,007 4,511 2,761 33,503 84,825 17.0 957 2,307 13.8

54,536 68,180

98,919 112,768

62,031 77,005

90,041 102,010 113,232 128,863

17,924 26,068 35,394 42,330 27.0 624 1,679 14.2 19.6 651 1,578 24.1

62,031 77,005

90,041 102,010 113,232 128,863

August 8, 2012

United Bank of India | 1QFY2013 Result Update

Ratio analysis (Standalone)

Y/E March Profitability ratios (%) NIMs Cost to Income Ratio RoA RoE B/S ratios (%) CASA Ratio Credit/Deposit Ratio CAR - Tier I Asset Quality (%) Gross NPAs Net NPAs Slippages Loan Loss Prov. /Avg. Assets Provision Coverage Per Share Data (`) EPS ABVPS (75% cover.) DPS Valuation Ratios PER (x) P/ABVPS (x) Dividend Yield DuPont Analysis NII (-) Prov. Exp. Adj. NII Treasury Int. Sens. Inc. Other Inc. Op. Inc. Opex PBT Taxes RoA Preference Dividend ROA after Pref Div Leverage RoE 1.9 0.6 1.3 0.4 1.6 0.6 2.2 1.9 0.4 0.1 0.3 0.3 23.7 7.1 2.0 0.7 1.3 0.4 1.6 0.5 2.1 1.8 0.3 0.1 0.2 0.2 25.7 5.1 2.0 0.7 1.3 0.3 1.6 0.5 2.1 1.5 0.6 0.1 0.5 0.0 0.4 2.60 1.00 1.59 0.24 1.83 0.53 2.36 1.56 0.80 0.17 0.63 0.08 0.55 2.6 1.0 1.6 0.2 1.8 0.5 2.3 1.4 0.9 0.2 0.7 0.1 0.6 24.9 14.2 2.7 0.9 1.8 0.1 1.9 0.6 2.5 1.4 1.0 0.3 0.7 0.1 0.6 24.5 15.0 2.9 0.9 2.0 0.0 2.0 0.6 2.6 1.5 1.1 0.4 0.8 0.1 0.7 24.4 16.7 60.0 4.2 0.5 75.9 4.2 5.9 0.7 3.5 4.3 0.6 3.9 3.8 0.5 4.2 3.1 0.5 6.2 2.5 0.4 7.9 0.9 13.4 0.3 0.7 13.6 0.0 9.6 2.0 13.3 2.2 15.1 109.0 2.4 18.2 122.7 3.5 23.0 142.9 4.5 86.3 101.2 2.7 1.1 1.4 0.5 59.8 2.8 1.5 2.9 0.3 48.5 3.2 1.8 2.7 0.4 68.0 2.5 1.4 2.3 0.5 72.1 3.4 1.7 3.6 0.7 69.2 4.1 1.8 2.5 0.6 70.0 4.6 1.7 2.5 0.6 72.5 38.6 59.3 11.2 6.4 37.8 64.9 13.3 7.6 38.1 62.1 12.8 8.2 40.8 68.7 13.1 8.9 40.8 70.7 12.7 8.8 40.8 73.3 12.7 8.7 40.4 75.2 12.7 8.6 1.9 65.9 0.3 7.1 2.1 63.3 0.2 5.1 2.1 55.1 0.5 11.6 2.7 46.3 0.6 14.1 2.7 43.1 0.7 14.2 2.8 42.6 0.7 15.0 2.9 42.9 0.8 16.7 FY08 FY09 FY10 FY11 FY12 FY13E FY14E

26.4 25.84 11.6 14.14

August 8, 2012

10

United Bank of India | 1QFY2013 Result Update

Research Team Tel: 022 - 39357800

E-mail: research@angelbroking.com

Website: www.angelbroking.com

DISCLAIMER
This document is solely for the personal information of the recipient, and must not be singularly used as the basis of any investment decision. Nothing in this document should be construed as investment or financial advice. Each recipient of this document should make such investigations as they deem necessary to arrive at an independent evaluation of an investment in the securities of the companies referred to in this document (including the merits and risks involved), and should consult their own advisors to determine the merits and risks of such an investment. Angel Broking Limited, its affiliates, directors, its proprietary trading and investment businesses may, from time to time, make investment decisions that are inconsistent with or contradictory to the recommendations expressed herein. The views contained in this document are those of the analyst, and the company may or may not subscribe to all the views expressed within. 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 reliable sources 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 this document is for general guidance only. Angel Broking Limited or any of its affiliates/ group companies shall not be in any way responsible 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. While Angel 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 the latest update on respective stocks for the disclosure status in respect of those stocks. Angel Broking Limited and its affiliates may have investment positions in the stocks recommended in this report.

Disclosure of Interest Statement 1. Analyst ownership of the stock 2. Angel and its Group companies ownership of the stock 3. Angel and its Group companies' Directors ownership of the stock 4. Broking relationship with company covered

United Bank of India No No No No

Note: We have not considered any Exposure below ` 1 lakh for Angel, its Group companies and Directors

Ratings (Returns):

Buy (> 15%) Reduce (-5% to -15%)

Accumulate (5% to 15%) Sell (< -15%)

Neutral (-5 to 5%)

August 8, 2012

11