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3QFY2012 Result Update | Banking

January 31, 2012

Union Bank of India


Performance Highlights

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


Source: Company, Angel Research

NEUTRAL
CMP Target Price
% chg (qoq) 7.2 6.6 (44.1) 3QFY11 1,616 1,261 579 % chg (yoy) 10.2 1.9 (66.0)

`229 -

3QFY12 1,781 1,284 197

2QFY12 1,661 1,205 353

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 12,015 1.0 359/156 115,474 10 17,194 5,199 UNBK.BO UNBK@IN

For 3QFY2012, Union Bank of India reported disappointing numbers, which were far below ours as well as streets estimates, primarily because of the considerably higher-than-expected provisioning expenses (due to ~`300cr of NPV loss on restructuring). On the pre-provision profit level, results were in-line with our estimates. We recommend a Neutral rating on the stock due to its fair valuations. NIM improves on better yields; restructuring balloons by `2,000cr+: The banks business growth picked up a bit during the quarter, with advances and deposits growing at a fairly healthy pace of 6.1% and 5% qoq, respectively. On the CASA deposits front, though growth was reasonable at 6.5% qoq, it was sluggish at 7.6% on a yoy basis. CASA ratio during the quarter improved marginally by 45bp qoq to 32.5%, but declined from 33.3% registered in 3QFY2011. Expansion in CD ratio coupled with relatively faster rise in yield on funds led to an increase of 10bp qoq in reported NIM to 3.3%. On a yoy basis, recoveries from written-off accounts almost tripled during the quarter. On the asset-quality front, the banks slippages normalized to `566cr (annualized slippage ratio of 1.5%) from an average quarterly run rate of `940cr over the past four quarters. Gross and net NPA ratios improved by 16bp qoq each to 3.3% and 1.9%, respectively. The bank restructured advances of `2,042cr during the quarter, primarily driven by a large telecom sector account of `1,500cr. Outlook and valuation: Asset-quality stress has resurfaced again in the past 2-3 quarters with a higher run rate of slippages and sharp rise in restructuring. Going ahead, pick-up in recoveries from the technically slipped accounts is likely to cushion further stress. But after the recent run-up in banking stocks across the board and in Union Bank of India, the stock is trading at fair valuations, in our view, of 1.0x FY2013E P/ABV. Hence, we recommend a Neutral rating on the stock.

Shareholding Pattern (%) Promoters MF / Banks / Indian Fls FII / NRIs / OCBs Indian Public / Others 57.1 14.6 11.1 17.3

Abs. (%) Sensex Union BoI

3m (2.9) 1.5

1yr (6.2) (30.7)

3yr 82.4 55.1

Key financials
Y/E March (` cr) NII % chg Net profit % chg NIM (%) EPS (`) P/E (x) P/ABV (x) RoA (%) RoE (%)
Source: Company, Angel Research

FY2010 4,192 9.9 2,075 20.2 2.4 41.1 5.6 1.3 1.2 26.2

FY2011 6,216 48.3 2,082 0.3 3.0 39.6 5.8 1.1 1.0 20.9

FY2012E 6,901 11.0 1,570 (24.6) 2.8 29.7 7.7 1.1 0.6 13.3

FY2013E 8,002 16.0 2,089 33.1 2.9 39.6 5.8 1.0 0.7 15.8

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

Shrinivas Bhutda
022 3935 7800 Ext: 6845 shrinivas.bhutda@angelbroking.com

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

Please refer to important disclosures at the end of this report

Union Bank of India | 3QFY2012 Result Update

Exhibit 1: 3QFY2012 performance


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 - Recov. from written off a/cs - Others Operating income Operating expenses - Employee expenses - Other Opex Pre-provision Profit Provisions & Contingencies - Provisions for NPAs - Other Provisions PBT Provision for Tax PAT Effective Tax Rate (%)
Source: Company, Angel Research

3QFY12 2QFY12 % chg (qoq) 3QFY11 % chg (yoy) 5,375 4,030 1,143 112 90 3,594 1,781 592 491 323 101 90 78 2,373 1,089 701 388 1,284 973 425 548 311 114 197 36.7 5,110 3,859 1,141 86 25 3,449 1,661 501 401 298 100 42 61 2,162 957 591 366 1,205 623 495 128 582 230 353 39.5 5.2 4.4 0.2 30.0 260.7 4.2 7.2 18.2 22.5 8.4 1.0 114.3 28.0 9.8 13.8 18.6 6.0 6.6 56.2 (14.1) 328.5 (46.5) (50.2) (44.1) (271)bp 4,199 3,064 1,074 31 30 2,584 1,616 493 385 277 108 31 77 2,109 848 520 328 1,261 400 361 39 861 282 579 32.7 28.0 31.5 6.4 262.7 196.4 39.1 10.2 20.1 27.6 16.6 (6.5) 190.3 1.3 12.5 28.4 34.8 18.1 1.9 143.2 17.7 1,305.7 (63.8) (59.4) (66.0) 402bp

Exhibit 2: 3QFY2012 Actual vs. Estimates


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

Actual 1,781 592 2,373 1,089 1,284 973 311 114 197

Estimates 1,736 536 2,272 995 1,277 550 727 196 530

Var. (%) 2.6 10.5 4.4 9.4 0.6 76.7 (57.1) (41.7) (62.9)

January 31, 2012

Union Bank of India | 3QFY2012 Result Update

Exhibit 3: 3QFY2012 performance analysis


Particulars Balance sheet Advances (` cr) Deposits (` cr) Credit-to-Deposit Ratio (%) CASA deposits (` cr) Reported CASA ratio (%) CAR (%) Tier 1 CAR (%) Profitability Ratios (%) Yield on funds Cost of funds Reported NIM Cost-to-income ratio Asset quality Gross NPAs (` cr) Gross NPAs (%) Net NPAs (` cr) Net NPAs (%) Provision Coverage Ratio (%) Slippage ratio (%) LLP to avg. assets (%)
Source: Company, Angel Research

3QFY12

2QFY12

% chg (qoq)

3QFY11 % chg (yoy) 16.8 10.0 440bp 7.6 (73)bp (16)bp 54bp 123bp 127bp (13)bp 566bp 45.5 65bp 80.2 67bp (706)bp (107)bp 4bp

156,202 147,284 205,317 195,572 76.1 66,810 32.5 11.7 8.0 9.6 6.4 3.3 45.9 5,209 3.3 2,879 1.9 63.1 1.5 0.7 75.3 62,754 32.1 12.5 8.5 9.3 6.3 3.2 44.3 5,136 3.5 2,959 2.0 60.5 4.8 0.9

6.1 133,787 5.0 186,655 77bp 6.5 45bp (82)bp (56)bp 37bp 18bp 10bp 162bp 1.4 (16)bp (2.7) (16)bp 264bp (332)bp (13)bp 71.7 62,106 33.3 11.9 7.4 8.4 5.2 3.4 40.2 3,581 2.7 1,597 1.2 70.2 2.6 0.7

Business growth and branch expansion gain traction


The banks business growth picked up a bit during the quarter, with advances and deposits growing at a fairly healthy pace of 6.1% and 5% qoq, respectively. On a yoy basis advances growth was reasonable at 16.8%, while deposits growth was relatively moderate at 10%. On the CASA deposits front, though growth was reasonable at 6.5% qoq, it was sluggish at 7.6% on a yoy basis. CASA ratio during the quarter improved marginally by 45bp qoq to 32.5%, but declined from 33.3% registered in 3QFY2011.

Exhibit 4: Business growth picks up a bit


Adv. qoq chg (%) 15.0 10.0 5.0 71.7 74.6 73.1 75.3 Dep. qoq chg (%) CDR (%, RHS) 76.1 78.0 76.0 74.0

Exhibit 5: CASA ratio improves marginally


CASA ratio (%) 34.0 33.0 32.0 31.0 27.1 19.2 12.4 8.0 7.6 10.0 CASA yoy growth (%, RHS) 30.0

20.0

12.9 8.5

7.8 5.0

1.2

6.1 5.0

72.0 70.0 68.0

33.3

31.8

31.5

32.1

(3.6) (1.6)

(5.0)

(1.8)

29.0 3QFY11 4QFY11 1QFY12 2QFY12 3QFY12


Source: Company, Angel Research

32.5

30.0

3QFY11 4QFY11 1QFY12 2QFY12 3QFY12


Source: Company, Angel Research

January 31, 2012

Union Bank of India | 3QFY2012 Result Update

During the quarter, the bank opened 126 branches, taking its total number of branches opened during 9MFY2012 to 161. As of 3QFY2012, the bank had a pan-India network of 3,177 branches, of which ~57% were located in rural and semi-urban areas. Considering the overall macroeconomic slowdown and RBIs downwards revision of credit growth guidance, the bank has further revised its growth forecasts downwards for FY2012. The bank now plans to grow its advances by 16-18% (earlier 17-18%) and deposits by ~15% (earlier 16%) in FY2012.

NIM improves further; recoveries from written-off accounts pick up sharply


The banks CD ratio improved sequentially from 75.3% in 2QFY2012 to 76.1% in 3QFY2012. Expansion in CD ratio coupled with relatively faster rise in yield on funds led to an increase of 10bp qoq in reported NIM to 3.3%. Management has maintained its guidance of 3.2% for reported NIM for FY2012, as compared to 3.33% witnessed in FY2011.

Exhibit 6: Rise in yield on funds....


(%) 10.00 9.50 9.00 8.50 8.00 7.50 3QFY11 4QFY11 1QFY12 2QFY12 3QFY12 8.39 8.82 9.10 9.25 9.62

Exhibit 7: Leads to a 10bp qoq improvement in NIM


(%) 3.50 3.30 3.10 2.90 2.70 3QFY11 4QFY11 1QFY12 2QFY12 3QFY12 3.10 3.44 3.44 3.31 3.21

Source: Company, Angel Research

Source: Company, Angel Research

Growth in non-interest income (18.2% qoq) was driven by more than doubling of recoveries from written-off accounts to `90cr. On a yoy basis, recoveries from written-off accounts almost tripled during the quarter. Treasury income growth was marginal 1.0% qoq, while it registered a decline of 6.5% on a yoy basis. Fee (CEB) income growth was reasonable at 16.6% yoy. We expect core fee income to grow by 13% and 15% in FY2012 and FY2013, respectively.

Exhibit 8: Break-up of non-interest income


Particulars (` cr) CEB Treasury Recoveries Others Other income Other income excl. treasury
Source: Company, Angel Research

3QFY12 2QFY12 323 101 90 78 592 491 298 100 42 61 501 401

% chg (qoq) 3QFY11 8.4 1.0 114.3 27.9 18.2 22.5 277 108 31 77 493 385

% chg (yoy) 16.6 (6.5) 190.3 1.3 20.1 27.6

January 31, 2012

Union Bank of India | 3QFY2012 Result Update

Slippages normalize; restructuring crosses `2,000cr mark


On the asset-quality front, the banks slippages normalized to `566cr (annualized slippage ratio of 1.5%) from an average quarterly run rate of `940cr over the past four quarters. Recoveries and aggressive write-offs aided the bank in largely compensating gross slippages, leading to a marginal 1.4% qoq increase in absolute gross NPAs and a 2.7% qoq decline in net NPAs. Consequently, gross and net NPA ratios improved by 16bp qoq each to 3.3% and 1.9%, respectively. Management exuded confidence in the declining trend of gross NPAs going forward. During the quarter, provision coverage ratio including technical write-offs improved by 264bp qoq to 63.1%. The bank restructured advances of `2,000cr+ during the quarter, primarily driven by a large telecom sector account of `1,500cr. Cumulative outstanding restructured advances of the bank stood at `5,423cr (3.5% of the loan book) as compared to `3,657cr as of 2QFY2012. The bank had to take NPA hit of ~`300cr due to the restructuring of the telecom account. This large hit on the P&L account dented the bottom line. On the back of continued asset-quality pressures evident from the high run rate of slippages over the past few quarters and sharp rise in restructuring of late, we have increased our provisioning estimates for the bank by 22.4% for FY2012.

Exhibit 9: Slippages normalize in 3QFY2012


Slippages (%) 6.0 0.7 4.5 3.0 1.5 0.2 0.3 0.6 0.9 Credit cost (%, RHS) 0.7 0.9

Exhibit 10: Asset quality improves a bit


Gross NPAs (%) 4.0 3.0 2.0 1.0 70.2 67.6 Net NPAs (%) PCR (%, RHS) 75.0 68.2 63.1 60.5 70.0 65.0 60.0

0.6

2.6

1.4

2.0

4.8

1.5

2.7 1.2

2.4 1.2

2.6 1.3

3.5 2.0

3QFY11 4QFY11 1QFY12 2QFY12 3QFY12

3QFY11 4QFY11 1QFY12 2QFY12 3QFY12


Source: Company, Angel Research

3.3 1.9

55.0 50.0

Source: Company, Angel Research

Exhibit 11: 126 branches added in 3QFY2012


Branches 3,200 2,757 ATMs (RHS) 3,025 2,673 3,200 2,900 2,600

Exhibit 12: Cost ratios inch up


Cost-to-income ratio (%) 75.0 60.0 45.0 30.0 1.6 1.5 1.6 2.6 1.8 Opex to average assets (%, RHS) 3.0 2.4 1.8 1.2

3,100 2,516

2,634

2,993

3,016

3,038

3,051

3,177

3,000

40.2

62.5

43.8

44.3

45.9

2,300 2,000

15.0 -

0.6 -

2,900 3QFY11 4QFY11 1QFY12 2QFY12 3QFY12


Source: Company, Angel Research

3QFY11 4QFY11 1QFY12 2QFY12 3QFY12


Source: Company, Angel Research

January 31, 2012

Union Bank of India | 3QFY2012 Result Update

Sufficient capital adequacy


The bank is well capitalized with CAR of 11.7% and tier-I capital of 8.0% (forming 68.1% of the total CAR). Post the recent capital infusion by the government (cumulative `793cr during FY2011), its shareholding in the bank has increased to 57.1%, further increasing the headroom for raising tier-I capital in future.

Investment argument
CASA ratio expected to sustain at ~32% levels
We are relatively positive on the banks CASA growth outlook, owing to its large branch expansion in recent years compared to its peers. The bank has opened ~400 branches in the past two years, which in our view should aid the bank in maintaining its CASA ratio at ~32% levels. The bank has added 161 branches during 9MFY2012 already and plans to add more in 4QFY2012.

Investment concern
Asset-quality concerns have resurfaced
Union Bank of India had managed to improve its asset quality over FY2011 (slippage ratio of 1.4% as of 4QFY2011). However, from 1QFY2012, the bank, on account of stress from SME and agri portfolio and shift to system-based NPA recognition platform, has seen its slippages balloon from 1.4% in 4QFY2011 to 4.8% as of 2QFY2012. Slippages rate for 9MFY2012 stood at 2.8% vis--vis 2.4% witnessed in FY2011. Also, aggressive 26.6% CAGR in credit over FY2008-11 is expected to keep asset quality under pressure going ahead. The sharp rise in restructuring of loans also poses challenges on the profitability front.

Outlook and valuation


Asset-quality stress has resurfaced again in the past 2-3 quarters with a higher run rate of slippages and sharp rise in restructuring. Going ahead, pick-up in recoveries from the technically slipped accounts is likely to cushion further stress. But after the recent run-up in banking stocks across the board and in Union Bank of India, the stock is trading at fair valuations, in our view, of 1.0x FY2013E P/ABV. Hence, we recommend a Neutral rating on the stock.

January 31, 2012

Union Bank of India | 3QFY2012 Result Update

Exhibit 13: Key assumptions


Particulars (%) Credit growth Deposit growth CASA ratio NIMs Other income growth Growth in staff expenses Growth in other expenses Slippages Treasury gain/(loss) (% of investments)
Source: Company, Angel Research

Earlier estimates FY2012 13.0 14.0 32.4 2.8 3.0 (6.0) 8.0 3.0 65.0 FY2013 15.0 17.0 32.2 2.8 4.8 15.0 15.0 3.1 65.0

Revised estimates FY2012 13.0 13.0 32.7 2.8 4.3 (3.0) 10.0 3.5 63.0 FY2013 15.0 17.0 32.4 2.9 3.3 15.0 15.0 3.0 65.0

Exhibit 14: Change in estimates


FY2012 Particulars (` cr) NII Non-interest income Operating income Operating expenses Pre-prov. profit Provisions & cont. PBT Prov. for taxes PAT Earlier estimates 6,825 2,101 8,925 3,902 5,023 2,158 2,865 930 1,936 Revised estimates 6,901 2,127 9,028 4,007 5,021 2,642 2,379 809 1,570 % chg 1.1 1.3 1.1 2.7 (0.1) 22.4 (17.0) (13.0) (18.9) Earlier estimates 7,872 2,201 10,073 4,487 5,585 2,513 3,072 997 2,075 FY2013 Revised estimates 8,002 2,196 10,198 4,608 5,590 2,498 3,093 1,003 2,089 % chg 1.7 (0.2) 1.2 2.7 0.1 (0.6) 0.7 0.7 0.7

Source: Company, Angel Research

Exhibit 15: P/ABV band


Price (`) 500 400 300 200 100 0
Nov-06 May-10 Dec-10 Apr-06 Aug-08 Mar-09 Oct-09 Jul-11 Feb-12 Jun-07 Jan-08

0.7x

1x

1.3x

1.6x

1.9x

Source: Company, Angel Research

January 31, 2012

Union Bank of India | 3QFY2012 Result Update

Exhibit 16: 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 Neutral Accumulate Buy Neutral Accumulate Neutral Neutral Buy Neutral Accumulate Accumulate Neutral Accumulate Accumulate Accumulate Neutral Neutral Accumulate Accumulate Accumulate Accumulate Accumulate Neutral Neutral Accumulate Reduce CMP (`) 1,074 400 491 902 23 330 162 102 753 344 48 471 85 414 68 101 221 88 830 256 940 2,061 96 69 229 70 56 Tgt. price (`) 1,361 516 1,061 367 907 53 528 450 72 107 877 274 1,036 2,359 106 75 52 Upside (%) 26.7 5.2 17.7 11.1 20.3 12.1 12.1 8.7 6.4 5.9 5.7 6.9 10.2 14.4 10.5 7.3 (7.4) FY2013E P/ABV (x) 1.7 1.1 3.3 1.7 1.1 2.1 0.7 0.8 1.0 1.1 0.7 0.9 0.8 0.7 0.5 0.7 0.9 0.6 0.9 0.7 1.1 1.7 0.6 0.8 1.0 0.7 0.8 FY2013E Tgt. P/ABV (x) 2.2 3.5 2.0 2.3 1.3 0.8 1.1 0.8 0.5 0.7 0.9 0.7 1.2 1.9 0.7 0.7 0.7 FY2013E P/E (x) 9.3 8.6 17.1 14.2 6.9 10.9 4.5 5.0 5.8 7.2 4.9 6.0 5.4 4.5 3.5 5.0 5.3 4.6 4.8 5.6 5.9 10.0 4.1 4.4 5.8 4.9 6.3 FY2011-13E EPS CAGR (%) 18.2 16.2 30.4 19.2 13.5 20.1 9.1 (4.8) 9.8 2.3 26.3 (7.4) (25.1) (1.8) 2.4 9.9 3.8 5.3 16.7 (5.9) 6.4 26.0 13.7 10.9 0.1 4.3 0.7 FY2013E RoA (%) 1.5 1.2 1.8 1.3 0.9 1.4 0.9 0.8 1.1 0.6 0.7 0.8 0.4 0.8 0.8 0.7 1.2 0.5 1.4 0.7 1.0 0.8 0.7 0.6 0.7 0.6 0.4 FY2013E RoE (%) 20.2 13.2 21.0 14.4 17.5 20.6 17.3 14.6 19.3 13.7 16.9 15.8 11.4 15.5 14.9 13.4 18.4 12.8 19.0 11.3 19.4 17.9 16.5 15.4 15.8 12.1 11.1

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

January 31, 2012

Union Bank of India | 3QFY2012 Result Update

Income statement
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 (%) FY08 3,086 10.6 1,233 46.4 4,319 18.9 1,593 7.9 2,726 26.4 866 11.6 1,860 34.8 473 25.4 1,387 64.1 FY09 3,814 23.6 1,483 20.3 5,296 22.6 2,214 39.0 3,082 13.1 725 (16.2) 2,357 26.7 630 26.7 1,727 24.5 FY10 4,192 9.9 1,975 33.2 6,167 16.4 2,508 13.3 3,659 18.7 826 13.9 2,833 20.2 758 26.8 2,075 20.2 FY11 6,216 48.3 2,039 3.2 8,255 33.9 3,950 57.5 4,305 17.6 1,350 63.3 2,955 4.3 873 29.6 2,082 0.3 FY12E 6,901 11.0 2,127 4.3 9,028 9.4 4,007 1.4 5,021 16.6 2,642 95.8 2,379 (19.5) 809 34.0 1,570 (24.6) FY13E 8,002 16.0 2,196 3.3 10,198 13.0 4,608 15.0 5,590 11.3 2,498 (5.5) 3,093 30.0 1,003 32.4 2,089 33.1

Balance sheet
Y/E March (` cr) Share Capital 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 505 6,843 103,859 21.9 4,760 3,750 4,356 124,073 9,455 643 33,822 74,348 19.2 2,201 3,604 124,073 21.1 FY09 505 8,235 138,703 33.5 3,885 4,890 4,757 160,976 8,992 6,993 42,997 96,534 29.8 2,335 3,124 160,976 29.7 FY10 505 9,919 170,040 22.6 3,125 6,090 5,483 195,162 12,468 3,308 54,404 119,315 23.6 2,305 3,361 195,162 21.2 FY11 635 12,129 202,461 19.1 7,126 6,190 7,443 235,984 17,610 2,488 58,399 150,986 26.5 2,293 4,208 235,984 20.9 FY12E 635 13,353 228,781 13.0 8,038 6,995 8,394 266,197 14,871 5,324 68,133 170,614 13.0 2,509 4,747 266,197 12.8 FY13E 635 14,974 267,674 17.0 9,378 8,044 9,842 310,547 17,399 6,211 82,355 196,206 15.0 2,839 5,538 310,547 16.7

January 31, 2012

Union Bank of India | 3QFY2012 Result Update

Ratio analysis
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 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 before pref. div. Pref. div. RoA Leverage (x) RoE 2.7 0.8 2.0 0.3 2.2 0.8 3.0 1.4 1.6 0.4 1.2 1.2 21.9 26.8 2.7 0.5 2.2 0.2 2.4 0.8 3.2 1.6 1.7 0.4 1.2 1.2 22.5 27.2 2.4 0.5 1.9 0.3 2.2 0.8 3.0 1.4 1.6 0.4 1.2 1.2 22.5 26.2 2.9 0.6 2.3 0.2 2.5 0.7 3.2 1.8 1.4 0.4 1.0 0.0 1.0 21.7 20.9 2.7 1.1 1.7 0.1 1.8 0.7 2.5 1.6 0.9 0.3 0.6 0.0 0.6 21.5 13.3 2.8 0.9 1.9 0.1 2.0 0.7 2.7 1.6 1.1 0.3 0.7 0.0 0.7 22.0 15.8 8.3 2.1 1.7 6.7 1.6 2.2 5.6 1.3 2.4 5.8 1.1 3.5 7.7 1.1 2.4 5.8 1.0 3.3 27.5 107.6 4.0 34.2 139.7 5.0 41.1 173.6 5.5 39.6 203.3 8.0 29.7 212.5 5.5 39.6 241.1 7.5 2.2 0.8 1.2 0.5 63.7 2.0 0.3 1.6 0.4 83.1 2.2 0.8 1.8 0.4 74.0 2.4 1.2 2.4 0.6 67.6 4.2 2.1 3.5 0.9 63.0 5.3 2.3 3.0 0.8 65.0 34.9 71.6 12.5 7.5 30.1 69.6 12.0 7.4 31.7 70.2 12.5 7.9 31.8 74.6 13.0 8.7 32.7 74.6 12.8 8.4 32.4 73.3 11.5 7.5 2.8 36.9 1.2 26.8 2.8 41.8 1.2 27.2 2.4 40.7 1.2 26.2 3.0 47.8 1.0 20.9 2.8 44.4 0.6 13.3 2.9 45.2 0.7 15.8 FY08 FY09 FY10 FY11 FY12E FY13E

January 31, 2012

10

Union Bank of India | 3QFY2012 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

Union 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%)

January 31, 2012

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