1QFY2012 Result Update | Banking

July 22, 2011

Union Bank of India

Performance Highlights

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

Source: Company, Angel Research

BUY
CMP Target Price
% chg (qoq) (7.4) 34.1 (22.3) 1QFY11 1348 1044 601 % chg (yoy) 18.0 11.7 (22.8)

`309 `357
12 Months

1QFY12 1,590 1,166 464

4QFY11 1,717 870 598

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 16,199 1.0 427/281 678,705 10 18,722 5,634 UNBK.BO UNBK@IN

For 1QFY2012, Union Bank of India posted a moderate set of numbers, which were, however, below our as well as streets estimates primarily due to the higher provisioning (additional `214cr as stated by the bank) done by the bank to meet the RBIs changed guidelines for provisioning norms. Consequently, net profit took a hit and declined by 22.8% yoy and 22.3% qoq to `464cr. We recommend Buy on the stock. Contraction in business, NIM also declines sequentially: The banks advances and deposits witnessed a decline during 1QFY2012, with deposits falling by 1.6% qoq (up 16.1% yoy) and advances declining by 3.6%. CASA deposits also declined by 2.4% qoq (up 12.4% yoy), leading to a 26bp qoq and 106bp yoy decline in CASA ratio to 31.5%. The banks yield on advances increased by 28bp qoq to 9.1%; however, the cost of funds increased by relatively higher 62bp to 6.2%, leading to a 34bp sequential decline in reported NIM to 3.1%. Fee income growth was moderate during 1QFY2012, registering growth of 11.3% yoy compared to yoy loan growth of 16.7%. Operating expenses increased by 22.9% yoy (down 37.2% sequentially) to `908cr. For 1QFY2012, the bank made a provision of `101cr towards pension for serving employees and gratuity liabilities.
Outlook and valuation: In our view, Union Bank of India is structurally among

Shareholding Pattern (%) Promoters MF / Banks / Indian Fls FII / NRIs / OCBs Indian Public / Others 57.1 12.8 14.3 15.8

the more profitable and competitive PSU banks. We have a positive outlook on the bank due to its robust traction in CASA deposits and relatively fastexpanding branch network over the past few years. The stock is trading at 1.1x FY2013E P/ABV, which is below its five-year median of 1.3x. Also, relative to most PSU banks, the bank has been ahead of the curve in implementing system-based NPA recognition, leading to a large part of the negative surprises already being factored in (although one more quarter of pain cannot be ruled out due to switchover to system-based NPA recognition for agri accounts as well). Hence, we recommend Buy on the stock with a target price of `357, based on median level of 1.3x and implying an upside of 15.4% from current levels. 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

Abs. (%) Sensex Union BoI

3m (4.4) (7.2)

1yr 3.3 (5.2)

3yr 31.2 144

FY2010 4,192 9.9 2,075 20.2 2.4 41.1 7.2 1.8 1.2 26.2

FY2011 6,216 48.3 2,082 0.3 3.0 32.7 9.1 1.8 1.0 20.9

FY2012E 6,930 11.5 2,274 9.2 2.7 43.2 6.8 1.2 0.9 18.9

FY2013E 7,544 8.9 2,598 14.3 2.6 49.3 6.2 1.1 0.9 18.7

Vaibhav Agrawal
022 3935 7800 Ext: 6808 [email protected]

Shrinivas Bhutda
022 3935 7800 Ext: 6845 [email protected] Varun Varma 022 3935 7800 Ext: 6847 [email protected]

Please refer to important disclosures at the end of this report

Union Bank of India | 1QFY2012 Result Update

Exhibit 1: 1QFY2012 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

1QFY12 4QFY11 % chg (qoq) 1QFY11 % chg (yoy) 4,916 3,754 1,063 75 23 3,326 1,590 484 311 210 173 59 42 2,074 908 592 317 1,166 428 365 63 737 273 464 37.0 4,615 3,458 1,034 60 64 2,899 1,717 601 430 270 171 98 62 2,317 1,448 1,053 395 870 153 98 55 716 119 598 16.6 6.5 8.6 2.9 25.9 (64.7) 14.7 (7.4) (19.4) (27.6) (22.2) 1.2 (39.8) (31.8) (10.5) (37.2) (43.8) (19.8) 34.1 179.5 272.4 14.7 3.0 130.0 (22.3) 2045bp 3,686 2,734 910 14 28 2,338 1,348 435 280 200 155 38 42 1,783 739 435 304 1,044 197 100 97 846 245 601 28.9 33.4 37.3 16.8 430.1 (18.3) 42.3 18.0 11.3 11.1 5.0 11.6 55.3 (0.1) 16.3 22.9 36.1 4.0 11.7 117.2 265.0 (34.8) (12.9) 11.4 (22.8) 808bp

Exhibit 2: 1QFY2012 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 1,590 484 2,074 908 1,166 428 737 273 464

Estimates 1,735 427 2,161 976 1,185 251 934 303 631

Var. (%) (8.3) 13.4 (4.0) (6.9) (1.7) 70.7 (21.1) (10.0) (26.4)

July 22, 2011

Union Bank of India | 1QFY2012 Result Update

Exhibit 3: 1QFY2012 performance analysis

Particulars Balance sheet Advances (` cr) Deposits (` cr) Credit-to-Deposit Ratio (%) Current deposits (` cr) Saving deposits (` cr) 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

1QFY12

4QFY11

% chg (qoq)

1QFY11 % chg (yoy) 16.7 16.1 34bp 7.6 14.3 12.4 (106)bp 29bp 94bp 130bp 121bp 7bp 233bp 36.9 38bp 64.7 38bp (290)bp (6)bp 42bp

145,567 150,986 199,178 202,461 73.1 17,335 45,413 62,748 31.5 12.9 8.8 9.1 6.2 3.1 43.8 3,745 2.6 1,893 1.3 68.2 2.0 0.6 74.6 19,618 44,689 64,307 31.8 13.0 8.7 8.8 5.5 3.4 62.5 3,623 2.4 1,803 1.2 67.6 1.4 0.2

(3.6) 124,743 (1.6) 171,484 (149)bp (11.6) 1.6 (2.4) (26)bp (7)bp 13bp 28bp 62bp (34)bp (1868)bp 3.4 20bp 5.0 13bp 64bp 67bp 45bp 72.7 16,116 39,729 55,845 32.6 12.6 7.9 7.8 5.0 3.0 41.5 2,736 2.2 1,150 0.9 71.1 2.1 0.2

Contraction in business; CASA ratio still declines

The banks advances and deposits witnessed a decline during 1QFY2012, with deposits declining by 1.6% qoq (up 16.1% yoy) and advances declining by 3.6% qoq (up 16.7% yoy). CASA deposits of the bank also fell by 2.4% qoq (up 12.4% yoy), leading to a 26bp qoq and 106bp yoy decline in CASA ratio to 31.5%. During the last quarter, management had mentioned about its plans of opening up 400 branches during FY2012; however, the bank opened up only 22 branches during 1QFY2012, much slower than the pace prescribed by the bank. Considering the prevailing high interest rates, the bank has also revised its growth forecasts for FY2012. The bank now plans to grow its advances at 19% (earlier 22%) and deposits at 17% (earlier 20%) in FY2012.

July 22, 2011

Union Bank of India | 1QFY2012 Result Update

Exhibit 4: Contraction in business during 1QFY2012

Adv. qoq chg (%) 15.0 10.0 5.0 72.7 71.7 69.8 Dep. qoq chg (%) 74.6 73.1 CDR (%, RHS) 76.0 74.0 72.0

Exhibit 5: CASA ratio declines further

CASA ratio (%) 34.0 33.0 32.0 31.0 18.3 27.7 27.1 19.2 12.4 CASA yoy growth (%, RHS) 35.0 28.0 21.0 14.0

12.9 8.5

4.5 0.8

3.7

32.6

32.7

33.3

31.8

(0.5)

(5.0)

(3.6) (1.6)

68.0 66.0

29.0 1QFY11 2QFY11 3QFY11 4QFY11 1QFY12

Source: Company, Angel Research

31.5

7.8 5.0

70.0

30.0

7.0 -

1QFY11 2QFY11 3QFY11 4QFY11 1QFY12

Source: Company, Angel Research

NIM declines qoq, fee income also muted during 1QFY2012

The banks yield on advances increased by 28bp qoq to 9.1%; however, cost of funds increased by relatively higher 62bp qoq to 6.2%, leading to a 34bp sequential decline in reported NIM to 3.1%. For FY2012, management has guided for NIM of ~3.20% (3.33% in FY2011). Management is confident of enhancing its NIM from here on, as it does not expect any major deposit repricing in the coming quarters. However, considering the declining trend in CASA ratio, on a conservative basis, we have factored in NIM to decline by ~28bp and 9bp in FY2012 and FY2013, respectively.

Exhibit 6: Cost of funds up 62bp qoq

(%) 6.00 5.60 5.20 4.80 4.40 1QFY11 2QFY11 3QFY11 4QFY11 1QFY12 4.95 5.06 5.16 5.54 6.16

Exhibit 7: NIM slips by 34bp qoq to 3.1%

(%) 3.50 3.30 3.10 2.90 2.70 1QFY11 2QFY11 3QFY11 4QFY11 1QFY12 3.03 3.10 3.44 3.35 3.44

Source: Company, Angel Research

Source: Company, Angel Research

Fee income growth was muted during 1QFY2012, registering growth of just 11.3% yoy compared to yoy loan growth of 16.7%. Management is confident of higher non-interest income going forward, particularly from recoveries from written-off accounts and has guided 1520% growth for FY2012.

July 22, 2011

Union Bank of India | 1QFY2012 Result Update

Exhibit 8: Break-up of non-interest income

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

1QFY12 4QFY11 210 173 59 42 484 311 270 171 98 62 601 430

% chg (qoq) 1QFY11 (22.2) 1.2 (39.8) (32.3) (19.5) (27.7) 200 155 38 42 435 280

% chg (yoy) 5.0 11.6 55.3 11.3 11.1

Slippages up again after improvement in 4QFY2011

On the asset quality front, the bank witnessed much higher slippages compared to 4QFY2011, with the annualised slippage ratio increasing from 1.4% in 4QFY2011 to 2.0% in 1QFY2012. The bank has already switched to system-based NPA recognition system for all accounts above `5lakhs, except a portion of the agricultural portfolio. Slippages during 1QFY2012 stood at `766cr, of which `225cr were contributed by the agri and SME sectors, while priority sector slippages stood at `183cr. Gross NPA of the bank also deteriorated from 2.37% in 4QFY2011 to 2.57% in 1QFY2012, while net NPA deteriorated from 1.19% in 4QF2011 to 1.32% in 1QFY2012. Management has indicated gross NPA to be ~2% by FY2012.

Exhibit 9: Slippages up again in 1QFY2012

4.0 3.0 2.0 1.0 0.2 0.7 0.6 Slippages (%) 1.2 Credit cost (%, RHS) 1.4 1.2 1.0 0.8 0.6 0.4

Exhibit 10: Asset quality concerns persist

3.0 2.5 2.0 1.5 1.0 64.0 Gross NPAs (%) 71.1 70.1 Net NPAs (%) 70.2 67.6 68.2 68.0 PCR (%, RHS) 72.0

2.1

2.2 0.9

2.8 1.2

2.7 1.2

2.4 1.2

3.8

2.6

1.4

0.2

1QFY11 2QFY11 3QFY11 4QFY11 1QFY12

2.0

1QFY11 2QFY11 3QFY11 4QFY11 1QFY12

Source: Company, Angel Research

2.6 1.3
60.0

0.2

0.5

Source: Company, Angel Research

Operating expenses
Operating expenses increased by 22.9% yoy (down 37.2% sequentially) to `908cr. For 1QFY2012, the bank made a provision of `101cr towards pension for serving employees and gratuity liabilities.

July 22, 2011

Union Bank of India | 1QFY2012 Result Update

Exhibit 11: Only 22 branches opened during 1QFY12

Branches 3,100 3,000 2,900 2,420 2,516 ATMs (RHS) 2,634 2,369 2,673 2,800 2,600 2,400 2,200

Exhibit 12: Cost ratios back to normal levels

Cost-to-income ratio (%) 70.0 60.0 50.0 40.0 30.0 20.0 10.0 1QFY11 2QFY11 3QFY11 4QFY11 1QFY12
Source: Company, Angel Research

Opex to average assets (%, RHS) 2.6 3.0 2.5

1.8 1.5

1.6

1.5

2.0 1.5 1.0

2,831

2,869

2,993

3,016

3,038

41.5

44.7

40.2

62.5

43.8

2,800 2,700

2,000 1,800

0.5 -

1QFY11 2QFY11 3QFY11 4QFY11 1QFY12

Source: Company, Angel Research

Sufficient capital adequacy

The bank is well capitalised with CAR of 12.6% and tier-I capital of 8.8% (forming 69.8% 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 arguments
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 last two years, which according to us should aid the bank in maintaining its CASA ratio at ~32% levels. The bank aims at opening another 400 branches during FY2012, however, we feel this might be a stiff target to achieve, considering the muted pace of branch expansion in 1QFY2012 (only 22 branches opened during the quarter).

Outlook and valuation

In our view, Union Bank of India is structurally among the more profitable and competitive PSU banks. We have a positive outlook on the bank due to its robust traction in CASA deposits and relatively fast-expanding branch network over the past few years. The stock is trading at 1.1x FY2013E P/ABV, which is below its five-year median of 1.3x. Also, relative to most PSU banks, the bank has been ahead of the curve in implementing system-based NPA recognition, leading to a large part of the negative surprises already being factored in (although one more quarter of pain cannot be ruled out due to switchover to system-based NPA recognition for agri accounts as well). Hence, we recommend Buy on the stock with a target price of `357, based on median level of 1.3x and implying an upside of 15.4% from current levels.

July 22, 2011

Union Bank of India | 1QFY2012 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 18.0 17.0 31.5 2.8 (0.3) 15.0 1.8 0.3 FY2013 17.0 17.0 31.3 2.6 13.4 15.0 15.0 1.8 0.2

Revised estimates FY2012 18.0 17.0 31.5 2.7 (0.9) (5.0) 12.0 1.8 0.3 FY2013 17.0 17.0 31.3 2.6 13.4 15.0 15.0 1.8 0.2

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 6,930 2,032 8,962 4,153 4,810 1,395 3,415 1,108 2,307 Revised estimates 6,698 2,021 8,719 3,982 4,737 1,371 3,366 1,092 2,274 % chg (3.4) (0.5) (2.7) (4.1) (1.5) (1.7) (1.4) (1.4) (1.4) Earlier estimates 7,544 2,303 9,848 4,775 5,072 1,345 3,728 1,209 2,518 FY2013 Revised estimates 7,570 2,291 9,861 4,579 5,282 1,436 3,846 1,248 2,598 % chg 0.3 (0.5) 0.1 (4.1) 4.1 6.8 3.2 3.2 3.2

Source: Company, Angel Research

Exhibit 15: P/ABV band

Price (`) 600 500 400 300 200 100 0 0.8x 1.1x 1.4x 1.7x 2x

May-03

Nov-06

May-10

Dec-03

Dec-10

Apr-06

Jul-04

Aug-08

Mar-09

Oct-02

Feb-05

Oct-09

Jul-11

Sep-05

Source: Company, Angel Research

July 22, 2011

Feb-12

Jun-07

Jan-08

Union Bank of India | 1QFY2012 Result Update

Exhibit 16: Recommendation summary

Company AxisBk FedBk HDFCBk ICICIBk* SIB YesBk AllBk AndhBk BOB BOI CanBk CentBk CorpBk DenaBk IDBI# IndBk IOB J&KBk OBC PNB SBI* SynBk UcoBk UnionBk UtdBk VijBk Reco. Buy Accumulate Neutral Buy Accumulate Accumulate Neutral Accumulate Accumulate Buy Neutral Reduce Buy Buy Neutral Accumulate Buy Neutral Accumulate Accumulate Accumulate Accumulate Neutral Buy Accumulate Neutral CMP (`) 1,297 458 501 1,068 24 329 218 137 901 415 523 127 521 88 135 235 144 862 351 1,170 2,494 122 88 309 96 70 Tgt. price (`) 1,648 483 1,355 26 353 145 1,017 498 120 640 107 255 166 392 1,235 2,845 139 357 107 Upside (%) 27.1 5.6 26.8 8.9 7.1 5.7 12.8 19.9 (5.8) 22.9 21.0 8.4 15.1 11.7 5.6 14.1 13.9 15.4 12.0 FY2013E P/ABV (x) 2.1 1.2 3.4 1.9 1.2 2.1 1.0 0.9 1.2 1.1 1.0 0.8 0.8 0.6 0.8 0.9 0.9 0.8 1.3 1.9 0.8 1.0 1.1 0.8 0.9 FY2013E Tgt P/ABV (x) 2.7 1.3 2.5 1.4 2.3 1.0 1.4 1.3 0.8 1.0 0.8 1.0 1.0 0.9 1.4 2.1 0.9 1.3 0.9 FY2013E P/E (x) 10.7 9.2 17.4 15.4 7.4 11.1 6.1 5.7 6.8 6.2 5.6 5.8 4.8 4.4 6.2 5.0 5.5 5.7 5.3 6.7 9.2 5.1 5.0 6.3 6.4 6.8
#

FY2011E-13E EPS CAGR (%) 20.9 20.2 30.5 24.5 11.6 19.1 9.2 3.1 10.5 21.6 1.0 (10.9) 6.1 5.1 14.3 10.4 23.5 8.8 13.7 11.7 44.2 14.6 18.9 22.9 6.1 8.6

FY2013E RoA (%) 1.5 1.3 1.7 1.5 0.9 1.2 0.9 1.0 1.1 0.8 1.0 0.5 0.9 0.8 0.7 1.4 0.7 1.2 1.0 1.1 1.1 0.7 0.6 0.9 0.5 0.5

FY2013E RoE (%) 21.0 14.1 20.9 15.6 17.2 20.6 17.8 16.8 19.5 18.5 18.1 15.1 17.9 15.7 14.5 20.4 16.6 17.0 15.8 21.3 22.6 17.0 17.6 18.7 12.5 12.8

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

July 22, 2011

Union Bank of India | 1QFY2012 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 6,698 7.7 2,021 (0.9) 8,719 5.6 3,982 0.8 4,737 10.0 1,371 1.6 3,366 13.9 1,092 32.4 2,274 9.2 FY13E 7,570 13.0 2,291 13.4 9,861 13.1 4,579 15.0 5,282 11.5 1,436 4.7 3,846 14.3 1,248 32.4 2,598 14.3

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 13,874 17.0 8,337 7,304 9,071 15,397 5,522 69,494 18.0 2,602 4,923 17.0 FY13E 635 15,882 17.0 9,755 8,546 11,072 18,015 6,461 81,399 17.0 2,953 5,760 17.0

236,880 277,149

276,102 323,039

178,164 208,451

276,102 323,039

July 22, 2011

Union Bank of India | 1QFY2012 Result Update

Ratio analysis
Y/E March 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 2.6 0.5 2.1 0.1 2.2 0.7 2.9 1.6 1.3 0.4 0.9 0.0 0.9 21.4 18.9 2.5 0.5 2.0 0.1 2.1 0.7 2.8 1.5 1.3 0.4 0.9 0.0 0.9 21.7 18.7 11.3 2.9 1.3 9.0 2.2 1.6 7.5 1.8 1.8 9.5 1.9 2.6 7.2 1.3 2.7 6.3 1.1 3.1 27.5 107.6 4.0 34.2 139.7 5.0 41.1 168.5 5.5 32.7 162.0 8.0 43.2 237.2 8.5 49.3 274.5 9.5 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 2.9 1.2 1.8 0.4 69.5 3.3 1.3 1.8 0.4 70.0 34.9 71.6 12.5 7.5 30.1 69.6 11.2 6.9 31.7 70.2 11.7 7.4 31.8 74.6 12.0 8.1 31.5 75.2 12.9 8.4 31.3 75.2 11.8 7.6 FY08 2.8 36.9 1.2 26.8 FY09 2.8 41.8 1.2 27.2 FY10 2.4 40.7 1.2 26.2 FY11 3.0 47.8 1.0 20.9 FY12E 2.7 45.7 0.9 18.9 FY13E 2.6 46.4 0.9 18.7

July 22, 2011

10

Union Bank of India | 1QFY2012 Result Update

Research Team Tel: 022 - 39357800

E-mail: [email protected]

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%)

July 22, 2011

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