United Bank of India

Financial Results
(Q1: 2010-11)

Operating Profit grew by 109.8% (y-o-y) at Rs 340.70 crore

Performance Highlights During 53.5% Quarter of 2010-11 Net profit grew byFirst (y-o-y) at Rs 107.86 crore

CASA Deposits grew by 26.7% (y-o-y) and reached 39.3% of Total Deposits Credit Deposit Ratio improved to 66.9% from 62.7% in March 2010

Cost of Deposits reduced to 5.40% from 6.47% last year

Yield on Advances has reduced to 9.75% from 10.05% last year, however increased from 9.23% during Highlights Performance Q410

During First Quarter of on y-o-y basis Net Interest Income has grown by 93.2%2010-11
Net Interest Margin improved to 2.98% from 1.90% last year Return on Assets improved to 0.58% from 0.44% last year CRAR improved from 12.80% in March10 to 12.99% with Tier I CRAR at 8.59% Cost Income ratio reduced to 45.85% from 59.88 last year

Performance Highlights

Q1- 2009-10

Q1- 2010-11
(Rs in Crore)

Growth
(Percent)

Total Business Deposits CA SA Advances

99372 59783 20714 39589

111317 66694 26241 44623

12.0 11.6 26.7 12.7

Performance Highlights
Q1-2009-10 Q1-2010-11
(Rs in Crore)

Growth
(Percent)

Operating Profit

162.43 70.28 1189.70 926.41 263.29

340.70 107.86 1437.23 928.66 508.57

109.8 53.5 20.8 0.2 93.2

Net Profit Interest Income Interest Expenses Net Interest Inc.

Performance Highlights (Efficiency Ratios)

Q1-2009-10

Q1- 2010-11
(Percent)

Cost-Income Ratio ROA (A) ROE (A) NIM (A) CRAR Tier-I CRAR

59.88 0.44 10.78 1.90 13.18 7.30

45.85 0.58 14.41 2.98 12.99 8.59

Incredible Growth: Aiming for the Sky

Total Business
120000

111317 99372

100000

(Rs in Crore)

80000

71967 61112
60000

40000 June'07 June'08 June'09 Jun'10

Branches

Pan-India Presence

100% CBS
Network of

1558 Branches
As on 30.06.2010

Presence in 28 States & 4 UTs

Population group wise Branch Distribution

(As on 30.06.2010)

Semiurban, 287, 18%

Urban, 345, 22%

Metro, 294, 19% Rural, 629, 41%

1558
Branches

106 New Branches opened during last one year 24 New Branches opened during Q1 : 2010-11

Regional distribution of Branches

(1558 Branches as on 30.6.2010)
North East, 262, 17% Central, 96, 6% Western, 61, 4%

East, 1003, 64%

Northern, 75, 5%

Southern, 61, 4%

Figures: Region / Number / Percentage Presence

Deposits

Total Deposits
70000

66694 59783

60000

50000

(Rs in Crore)

40000

30000 June'09 June'10

Total Deposits increased by 11.6% to reach Rs 66694 Crore

CASA Deposits
40
30000 25000 20000

26241 20714
4968 5493

38 36

39.3

(Rs in Crore)

15000 10000 5000 June'09

34.6
20748

15746

34 32

June'10

June'09

June'10 Share of CASA

Savings

Current

SB deposits grew by 31.8% to reach Rs 20748 Crore while Current Deposits Increased by 10.6% to reach Rs 5493 Crore

Deposit Mix
As on June 30, 2009 As on June 30, 2010

Savings
(26.3%)

Savings
(31.1%)

Current
(8.3%)

Current Term
(60.7%) (8.2%)

Term
(65.4%)

CASA as percentage of Total Deposits stood at 39.3% as on 30.06.10

Cost of Deposits
7

6.47 5.92

5.40

(Percent)

June'09

Mar'10

June'10

Cost of Deposits reduced from 6.47% to 5.40% during last one year

Advances

Total Advances
44623

45000

39589

(Rs in Crore)

35000

25000

June'09

June'10

Total Advances increased by 12.7% to reach Rs 44623 Crore

Total Advances: Breakup

(Rs in Crore)

Scheme Total Advances Of which Retail Advances Priority Sector Advances MSME Advances Agriculture

June09

June10

Growth(%)

39589 4403 11915 4161 4151

44623 6044 14400 6668 4700

12.7 37.3 20.9 60.2 13.2

Yield on Advances
12

10.05 9.47
10

9.75

(Percent)

6 June'09 Mar'10 June'10

Yield on Advances reduced from 10.05% to 9.75% during last one year

Retail Advances
6500
6 04 4

5500
4 40 3
(Rs in Crore)

4500

3500

Ju n e'09

Ju ne'10

Retail Advances registered a growth of 37.3% to reach Rs 6044 Crore

Retail Advances: Breakup

(Rs in Crore)

Retail Scheme Housing Loan Auto Loan Education Loan Mortgage Loan Others TOTAL

June09

June10

Growth(%)

1668 206 348 674 1507 4403

2123 266 410 871 2374 6044

27.3 29.1 17.8 29.2 57.5 37.3

MSME Advances
7000 6000 5000

6668

4161

(Rs in Crore)

4000 3000 2000 June'09 June'10

MSME Advances witnessed a growth of over 60% to reach Rs 6668 Crore

Advances to Priority Sector

14400
16000 14000 12000

11915

(Rs in Crore)

10000 8000 6000 4000 2000 4151 June'09 7764

9700

4700 June'10

Agriculture

Total Priority sector advances registered a growth of 20.9% to reach Rs 14400 Crore whereas Agriculture Advances grew by 13.2% to reach Rs 4700 Crore.

Investments

Total
23659
26000

Investments
24641

6188
18000

9323
0

(Rs in Crore)

10000

18445 14336

2000

June'09

June'10

HTM

AFS

Total Investments grew 4.2% to reach Rs 24641 Crore whereas HTM Investments grew by 28.7% and AFS Investments decreased by 33.6%.

Yield on Investments
8

7.85 7.37

(Percentage)

June'09

June'10

Total

Yield on Investments increased from 7.37% to 7.85% during last one year

Non Performing Assets

Non Performing Assets

4 3 2

3.21 2.54 1.70 1.84

3.19

1.80

(Percent)

1 0

June'09

Mar'10

June'10

Gross NPA

Net NPA

Gross NPA Ratio decreased to 3.19% while Net NPA Ratio decreased to 1.80%. The NPA Provision Coverage Ratio is pegged at 68.5%

Movement of NPA
(Rs in Crore)

Q1:2009-10 Opening NPA Reduction Cash Recovery Up-gradation Write-off Slippages Closing NPA

Q1:2010-11

1020 135 52 56 27 121 1006

1372 198 52 83 63 248 1422

Income and Profitability

Profit & Loss Account

(INCOME)
(Rs in Crore) For 1st Quarter 2009-10 For 1st Quarter 2010-11 Growth %

Interest Income Treasury Income Other Income Total Income

1189.70 61.20 80.31 1331.21

1437.23 31.75 88.85 1557.83

20.8 -48.1 10.6 17.0

Profit & Loss Account

(EXPENSES)
(Rs in Crore) For 1st Quarter 2009-10 For 1st Quarter 2010-11 Growth %

Interest Expense Staff Expense Other Ops exp Total Expenses

926.41 152.66 89.71 1168.78

928.66 178.97 109.51 1217.14

0.2 17.2 22.1 4.1

Profit & Loss Account

(PROFIT)
(Rs in Crore) Growth %

For 1st Quarter 2009-10

For 1st Quarter 2010-11

Operating Profit Prov & Cont Net Profit

162.43 92.15 70.28

340.7 232.84 107.86

109.8 152.7 53.5

Net Interest Income

500

508.57

300

263.29

(Rs in Crore)

100 Q1'10 Q1'11

Net Interest Income increased by 93.2% to reach Rs 508.57 Crore

Non-Interest Income
200

141.51 120.60
100

(Rs in Crore)

0 Q1'10 Q1'11

Non-interest income decreased by 14.8% to reach Rs 120.60 Crore

Breakup of Non Interest Income

100

80.31

(CORE INCOME) 88.85

(Rs in Crore)

50

0 Q1'10 Q1'11

Core Non Interest Income increased by 10.6%

Breakup of Non Interest Income

(INCOME FROM TREASURY)
61.20

75.00

31.75
50.00

(Rs in Crore)

25.00

0.00 Q1'10 Q1'11

Non Interest Income from Treasury decreased by 48.1%

Operating Profit
400

340.70

(Rs in Crore)

200

162.43

0 Q1'10 Q1'11

Operating Profit for Q111 increased by 109.8% to Rs 340.70 Crore

Net Profit
107.86
100

70.28

(Rs in Crore)

0 Q1'10 Q1'11

Net Profit of the Bank for the 1st Quarter increased by 53.5% to Rs 107.86 Crore

Key Ratios

Capital Adequacy Ratio (Basel-II)

13.18 15 12.99

10

(Percent)

June'09

June'10

CRAR of the Bank as on June 30, 2010 was at 12.99% as per Basel-II norms

Capital Adequacy Ratio

(TIER-I)
8.59 7.30

(Percent)
6.00

June'09

June'10

Tier-I CRAR as per Basel-II in June09 increased to 8.59% from 7.30% in June10

Cost Income Ratio

70 59.88 55.08

45.85

(Percent)

45

20 June'09 Mar'10 June'10

Cost Income Ratio reduced from 55.08% to 45.85%

Employee Productivity
8 7 6 5 4 3 2 1 0 June'09 June'10 Profit Per Employee (Rs in Lakh) (A)

7.15 6.48

2.81 1.87

Business per Employee (Rs in Crore)

Business per Employee grew by 10.3% to reach Rs 7.15 Crore per Employee while the Profit per Employee increased by 50.3% to reach Rs 2.81 Lakh per Employee

Other Parameters

Market Information
Particulars Book Value per share Market Cap EPS (A) Price/Book Value P/E ROA (A) ROE (A) 30-June-10

Rs 94.59 Rs 2571 Cr Rs 13.64 0.86 5.95 0.58 14.41

Corporate Social Responsibility

Bank has set-up United Bank Socio-Economic Development Foundation (UBSEDF) Trust with a corpus of Rs 2 Crore with an objective of improving the standard of living of the weaker section of the society. As on June 30, 2010, Bank had 6 Rural Development & Self Employment Training Institutes (RUDSETI) to impart skill and entrepreneurship development training to unemployed youth, women and people belonging to weaker sections of the society. Bank also provides loans to the entrepreneurs trained at RUDSETIs for setting up their units.

Highlights of Achievements
The Final Dividend at the rate of Rs.2/- per equity share of Face Value of Rs.10/- each was declared by the Bank at its maiden Annual General Meeting on July 9th , 2010. Handed over to the Honble Union Finance Minister, Sri Pranab Mukherjee, a cheque of Rs. 53.29 crore, on 21.7.10, being the Final Dividend for 2009-10 on the GOI shareholding in the Bank. A separate cheque of Rs.15 crore, as preference dividend, for FY 09-10, was also handed over to Finance Minister for Preference Shares (PNCPS) held in the Bank by the Government of India.

Thank You