Thank you, sir. Good afternoon, ladies and gentlemen.

I, V. B.

Sahay, Head of Investor Relations, welcome you all to the Union Bank of India earning concall for the period ended September 30th, 2026. The structure of the concall shall include a brief opening statement by our respected MD and CEO sir, and then the floor will be open for interaction.

Before getting into the concall, I will read out the usual disclaimer statement. I would like to submit that certain statements that may be discussed during the investor interaction may be forward-looking statements based on current expectations.

These statements involve number of risks, uncertainties, and other factors that cause the actual results to differ from the statements. Investors are therefore requested to check this information independently before making any investment or other decisions.

With this, I now request our MD and CEO sir for his opening remarks. Thank you, and over to you, sir.

Am I audible to the coordinator?

Thank you. Thanks to Mr.

Sahay and to coordinator. Good afternoon everyone, and it gives me great pleasure to welcome all of you to Union Bank of India, your bank, financial results announcement for the quarter ended 30th September 2026.

With this, I have also concluded my first year in the bank, and happy to interact with you for last four, five quarters. Before I take you through our performance, first of all, my all best wishes on the today Durgashtami, Navami, and all festivities which are lined up in the month of October and November.

With this, let me briefly set the context and share a few remarks. Let me begin by saying that in Q2 '26-27, our country, our Bharat, our economy, and the banking sector have continued to demonstrate remarkable resilience despite persistent global headwinds.

This is supported by strong domestic fundamentals, prudent macroeconomic management, and timely policy interventions. We need to acknowledge that the half year '26-27 was deeply affected by West Asia conflict apart from El Niño effects and AI-led disruptions, with varied channels of impact on our macros and market via oil prices, overall inflation, trade linkages, logistics, capital flows, and market movements.

I would like to acknowledge the consistent support extended by the government of India as well as our regulator, Reserve Bank of India, both mitigating the impact of external disruptions. Measures aimed aimed at safeguarding and supporting businesses, particularly MSMEs, have helped preserve confidence across the country and the financial system.

The RBI's policy measures to attract dollar flows including the FCNRB and ECB scheme bolstered liquidity within the banking system. As a result, the banking sectors continued to demonstrate strength with credit system credit and deposit growth standing at around 19.4 and 17.8 YoY, respectively.

Against this backdrop, your bank, the Union Bank, has also shown a sustained pick up in business growth. We continue to execute the strategic priorities that we have consistently highlighted in our previous various interactions, with a sharp focus on aligning our advances growth with overall banking system with while staying cognizant of long-term business sustainability, profitability, and stakeholder value creation in an uncertain macro environment.

Friends, as we have interacted earlier, we have very clear five defined strategic pillars: efficiency, robustness, quality, sustainable growth, profitability, and customer-centricity with ease of doing business for both customers and employees. Let me dwell in between on these five pillars.

With efficiency, we clearly mean the proper capital deployment, technology deployment, the human resource development, building efficiencies in banking operations. Creating efficiencies in whatever we do, how we can create the efficiencies.

When we talk about robustness, it is a good compliance culture in a bank, not an instance-based, and strong cybersecurity posture, resilient monitoring systems, quality credit book, and so forth, on. Third is the quality and sustainable growth, we pursue.

We have been talking on this topic that how when growth will couple with Union Bank business, how the quality will be maintained. I think these results give some color on that as well.

The next point is profitability. Yes, when we talk about profitability, interacting with various press people, investors, analyst, we come to know that, there there are various points which we can which we can showcase.

One was the core ROA, this time, our presentation clearly shows what is the core the return on assets, that is excluding the TWO and the treasury income. Similarly, ROA, RWA, which is one of the good parameter to discuss upon, is also to showcase.

If you see the last pillar is customer centricity with ease of doing business for customers and employees both. When we are compiling, or maybe combining all these five pillars, we are working upon the same, and today's result is in line with those pillars.

While maintaining as far as the various things which are the best as far as the Union Bank is concerned, like profit, like ROA, like the stressed SMA level which is the lowest in the bank up till now in the history after amalgamation. Similarly, your ROE and the NIM which has rebound well from 2.64 level to 2.86.

I think we have given a very clear picture that how things There are certain initiatives which were taken last quarter, which we have also showcased. Probably I I I am very sure that the presentation, analysts presentation, you all are having with you.

At Union Bank of India, our commitment remains anchored in our guiding principle, business first and compliance always. We aspire to remain a trusted partner for our customers, investors, regulators, and all stakeholders while contributing meaningfully to the Indian banking ecosystem.

Equally important, our workforce of over 74,000 employees continues to embody our enduring philosophy: Acche Log, Accha Bank, good people to bank with. In fact, some of the transformational initiatives we undertook this year such as Union Sudarshan, they are all developed in-house.

I think this is very, very important. It is state of the art, unique in the industry, and at a minimal cost.

I think the shortest period of time, within six to seven months, this entire infrastructure and the and the unit is built. I will detail it detail it in shortly.

I am also pleased to share that during the Sorry. During the quarter, the bank received several prestigious recognitions.

One is in the Rajbhasha Kirti Puraskar, our Union Bank has got the prize from the honorable Home Minister hands in the event held in mid-September in Navi Mumbai. Another is we secured third rank in the overall EASE 9.0 Q1 FY '26-27 performance ranking amongst all 12 public sector banks, reflecting our continued focus on customer-centricity, operational excellence, and digital perfo- transformation.

Let me, in a brief, cover up on the financial performance. Profitability, net profit for Q2, 5,537 crores, registering a growth of 30.31 YoY.

OP is 8,108 crore, reflecting a robust growth of 19% almost, 18.99 precisely. As consistently communicated to investors, and there was question that if you grow and when to take deposits, or maybe various questions that whether NIM will sustain.

We improved further from the last quarter of 2.80 to 2.86, and remain above the full-year FY '25-26 level of 2.70. With the initiation of rate hike cycle, certainly we believe it will be constructive to the banking industry and to us also, which we can deliberate further.

Additionally, the FCNRB, let me acknowledge, compliment the the Reserve Bank of India who came with this perspective. It is not only the liquidity, or maybe dollar inflows to the Indian economy, but I think the major benefit is the ALM, because our almost 70% is the five-year term.

It is giving a very good sustained resource for next three to five years. Coming to our profitability, return on assets is 1.38, which we have inched further up.

Return on equity at 17.21, capital position, we stand at 17.94, CET1 is 16.05. I think now almost most of the part of CRAR is based upon CET1.

These levels provide significant growth headroom while maintaining strong resilience against any external shocks. Asset quality, gross NPA declined by 87 bps YoY to 2.42, net NPA improved to 0.42, down by 13 basis point YoY.

PCR remained strong at 95.20. Credit cost continued at 21 basis point, reflecting disciplined underwriting standards, effective recovery efforts despite persistent geopolitical volatility.

The improvement was supported by a sustained moderation in slippages. The slippage ratio improved to 0.72 compared with 0.91 in the corresponding period last year.

Yes, the gross slippage during the quarter stood at 1,909 crores, which were more than offset by reduction of 3,086 crore by the recoveries and upgradations. Coming to the deposits and liability franchise, our deposit grew by 6.88 YoY basis, and the CASA ratio is table at 35, improving significantly from 32.56 a year ago, demonstrating the success of our ecosystem banking initiative, which we have talked many a times during our interaction.

On year-on-year basis, our combined RTD and CASA, this is what we say is our first priority, is nearly grown by 1.11 lakh crore, registering growth of 11.41 percentage. Also, if we take the color of our deposit, the share of various components, CASA retail term deposit increased to 80.3 from 77 in the September '25.

Let us talk about average to terminal deposit ratio, which remains at 99%, and which is very, very good. Corresponding, if we take CASA to terminal to average to deposit is around 95, 96%.

Let me say that the bank which we told efficiency to build efficiency, we are working on average figures. Let me again reiterate that yes, your bank Union Bank is working upon the average figures rather than much of the terminal figures.

Our global advances continue to witness healthy momentum at 18.53 YoY. Domestic advances grew by 17.36.

Coming to the RAM, it is global level, 55.45, where domestic it is 57.43. If we if we if we take the impact of shedding of 33,000 crore of IBPC, which shed off, and also some of the low-yielding assets, I think the actual growth is more than 20, 21% in that range.

Retail advances grew by 11.24, MSME by 22.39, and this is the way in which we are going for a sustainable growth in various quarters to quarters. As a green shoot in private sector capex, we are seeing the next phase of credit growth in economic activity, whether it is data centers, or AI infrastructure, nuclear, renewable power, and select conventional sectors like steel, manufacturing, I think these are picking up including pharmaceuticals.

This is giving a good sort of a comfort to we bankers that the going ahead as well, there is a good phase of credit growth in economic activity. Coming to the vision ahead for Union Bank of India, that the journey ahead is not only about growth, it is equally about transforming the way we operate and serve our customers.

As we move and navigate short-term uncertainties, our focus remains firmly on long-term sustainable growth and strategic transformation. We are pursuing this transformation through a balanced combination of intelligence, automation, and human oversight.

Various initiatives were detailed in a comprehensive So, actually, to all my friends who have joined, my request is in our website and various GeM portal and all, you will find an RFP, a Project Muskaan, known as Project Muskaan, which encompasses I think nine pillars. I think very, very different from last 15, 20 years which you would have seen any bank coming with various RFPs.

This RFP is covering nine pillars, and what sort of five pillars we are talking, the same sort of pillars are being talked in this RFP as well. It is unique in its sense and certainly it will create a lot much impact.

Let me tell you, friends, we are already working on this, which we have showcased in our analyst presentation, and two of the pillars which we thought initially are already completed in which Union Sudarshan is one, and other pillars which even shown 90% sorry, nine pillars, there is a the work already done. It is not that we are waiting for any any any consultant or any to come and start the program.

From moving from one pillar to ninth, in many of them, we are somewhere from 20 to 40% of the work is already done. Actually, we are well-poised to complete that project, which is I think I would request all of you to please see section three of page 30 to 35 in that RFP.

The objective is straightforward: to move from reactive management to proactive and intelligence-led banking and managing the things. Another important pillar of our transformation journey is robotic process automation, and where a high value of repetitive and rule-based activities to be executed automatically with greater speed, consistency, and accuracy.

We are now close to 100. We are now we started this, and now we are almost close to 100.

By March '27, we expect to cross maybe near around 200. By next March, not this, but '28, we want to cross somewhere between 400 to 500 processes.

I think that will give lot of ease of doing business, lot of accuracy, consistency, and customer service. I think that is the whole purpose of this.

We also have a cross-functional team in the concept of garage, which is prioritizing various operational technology-related issues faced by field functionaries, and we are improving day-to-day processes. We also have established central reconciliation.

Actually, it is also part of an RFP, but let me brief you that it is headed by a unit is headed by CGM at Hyderabad. Almost more than 200, 300 people working over there, our in-house, and also some of the outsourced, but the entire reconciliation, because once we become robust, it will yield to business.

That is what correlation we have seen in our bank that if we improve in the compliance and assurance function, it has a direct impact on the business growth. I think that is where we are moving into that direction.

I would therefore say that Union Bank of India is steadily building the necessary capabilities, strengthening our data architecture, enhancing workforce skills, and creating the right balance between technology adoption and human oversight. In conclusion, I would like to express my sincere gratitude to our customers, shareholders, investors, board members, my board has really helped us, regulators, and all other stakeholders for their continued trust and support.

I would also like to express my gratitude to all our investors. Whenever we had interaction, you have always always gave a suggestion to our to include that in our to-do list, where we from quarter to quarter, month to month, we have tried to improve upon those.

I think my gratitude to all of you for being with us and giving us lot of suggestions for improvement as our India, our Bharat enters into next phase of economic growth. The banking sector is well positioned to support this transformation, and your bank, Union Bank of India, is determined to play a much meaningful role in this journey.

We will continue to combine resilience with innovation, scale with efficiency, and technology with human judgment. Thank you, and over to you, Sahay ji, and thank, and over to coordinator and all the investors for the interaction, please.

Thank you, sir.

Yes, please.

Thanks for giving me the opportunity. Congratulations, Asheesh sir, the and the entire team of the Union Bank of India for the fantastic set of numbers, sir.

In fact, your this presentation beyond the numbers and the presentation, your verbal communication of more than 20 minutes now has really given the great high highlights about the bank and what the bank is going to do even in the future also, which is one of the best opening remarks so far in the four, five banks whoever have declared their results. My compliment to you, sir, for the same.

You have, in fact, clarified most of the questions which were there in the minds of analysts like me. I have here few observations and some few data points and some information and some action plans on some of the items which I will just narrate.

Sir, the credit growth has come back now in the bank in last one years of your tenure. Before that, the four, five quarters, all those shortcomings you have removed and the bank has again come back and brought its old glories.

Going forward and even looking at these numbers also, the deposits are still little bit lagging in spite of the opportunity of raising the deposits by way of this US US dollar dispensation by the RBI, FCNRs, and other things. That is making our CD ratio also very, very high, one of the highest, 88.13%.

On that front, what do you think like this kind of CD ratio is okay or it may go to even 90%? Or whether you still feel that the deposit growth needs to be accelerated to match your credit growth?

This is my just first question and the I would welcome your answer, sir.

Sure. Thanks a lot, Ajmera sahab, for your queries, and we always take your queries as an improvement, and to further how to make the bank more better.

Coming to the deposits, as you said, in our case is lagging. Certainly, this last two, three quarters we are in the discussion.

Let me tell you that earlier our deposit growth used to be either negative or it was below 3%,

and now

this time it is 6.8 and almost 7%.

First

is, we are not averse to deposit. I will give your reply into two, three pillars.

One is our first priority is CASA and RTD, no doubt in that. We have actually garnered 1.11 lakh crore of in this two.

This is our priority for sure, and we are maintaining 35% around. Even from June to now, 10,000 crore of CASA is there.

Which is a sluggish period if you see, June and September, and from December and March, it is a period where the most of the funds are released as far as the various budgets are concerned. We have taken.

Now, the question is that resources we are sitting at almost 18% of the CRAR and more than 16% of the CET1. We do have a very good leverage.

The most important, I believe, the parameter to see the deposit and credit growth is the LCR and the NSFR. LCR, if you see our presentation, is 120% average we have maintained in the entire quarter.

Which clearly shows that we are 20% more than the prescribed regulatory guidelines. NSFR is also on a much, much comfortable side.

Absolutely, we have not faced any issues on the liquidity. We have maintained very well.

The next is, what other resources are available to the bank for raising the funds for deploying into the credit? Those are refinances from various refinances, the infrastructure bond, the ESPS, certainly we are not looking for QIP as such, and the third is the green bond, and the other things, tier 1 and tier 2 capital.

These are also the funds which are subscribed, but will not come into the deposit, which will remain into the system, and which you can deploy for a better quality of the credit growth. Now, I think when we required, we increased from 2.5 to 6.8, 7% range.

Certainly, I will assure all that absolutely that is not an issue. When we increased from 2 to 2.5 to 7%, then also we have maintained our NIM and all the efficiency ratios.

Now, coming to the US dollar, since beginning the last quarter as well, when it was asked to us, we were very clear that we aimed at 2 billion to garner under the special window scheme of RBI of US dollar FCNR. We actually garnered 2.25, absolutely that is not an issue.

Our total all-in cost, including everything, is around 7 and 43 bps is the margin 40 bps 40 plus bps is the margin with our foreign branches. I think we are well within cost into that.

Coming to the CD ratio, we always said that for let us see that domestic CD ratio or loan to deposit ratio is something different and the global is something different. Global is always higher, and domestic is always lower.

If you take the domestic, we are at around 84%. We always believe that somewhere between 84 80 80 to 84, 85 is a quite comfortable range subject to.

It is not very specific some range for everyone fits size for all. It is for the various banks to banks and their capital structure and their other efficiency ratios.

We have well within the range of all the ratios, all the liquidity ratios. We are well within the range of say 84%, and that's the reason that you can see that this time only after listening to the analyst, which all of you, they suggested they guided us that, why don't you come with a core ROA, because the treasury income has gone down like anything, almost 50%, 46% precisely, has gone down because of the market condition.

You all know much better than me. I believe that the core ROA has moved 41, 42 basis point to 1.06, and the ROA in general is 1.38, and RO RWA is also one of the figure which generally people told that why Union Bank is not showing, where you are having the very good.

It is at 2.48 levels. I think that all the investors that we are in the credit growth, and to support that credit growth, whatsoever deposit growth is required or maybe the raising the money in terms of infrastructure bond or a green bond or a tier 1, tier 2 or anything, we'll be going for it to fund that, and we'll be substantially covering the liquidity ratios as desired by any of the participant in the industry.

Point well taken, sir. You have very well explained it.

My, sir, second question is on the total impact of the ECL provisioning and especially with the yield hardening and there will be I think HTM mark-to-market also will have to be provided for. What is the revised number of the ECL and the impact of the ECL overall in the how many basis point it can be over a period of time, coupled with that the benefit of the rate hike or recent rate hike by the RBI?

How many basis that can offset the overall ECL impact? Like maybe the profitability may increase by 7, 8 bps point because of the rate hike which is going to be factored in and already whatever the repo-linked credit, loans are there, the rates must have already gone up.

Whereas, the deposit rates are not going to go up matching soon. Overall, what will be the impact and how are we prepared for the ECL provisioning, sir?

Ajmera ji, earlier also we had shared the ECL impact on us. Somewhere in the range of 5,500 crore we had said will be the impact of ECL on Union Bank of India.

I would also like to add here that since the quarter of March, we have till now added around 1,000 crore of additional buffer in provisions. 700 we did in March, 100 crore in the quarter of June, and this quarter also 200 crore we have kept as a additional provision, which as of now appears to be that will be able to use for the ECL provision.

That is 5,500 crore is our total estimate. Of that, 1,000 crore we have already provided for right now.

5,500 crore, if you look at from the impact on the ROA, we have around, I think, 8 lakh crore of RWA. From that perspective, 70% 70 basis point is the impact on CET if we absorb separately.

You are also looking at our profitability numbers per quarter. One quarter profit itself is quite sufficient to bear this ECL provision despite RBI having given multiple years.

The second part that you asked about the impact of the bond yield. I think these are very moving parts.

First is that, as on date, the balance sheet, what is the impact on ECL, which I shared. Remaining things are moving part.

Something will be positive, something will be negative. For example, as you said, that the bond yield obviously it impacts the valuation of the bonds, but at the same time when the interest rates are rising, and you are very much aware that it will first give us advantage in terms of increase in the net interest margin.

I think these moving parts, they offset each other generally. We should be at this point of time should be taking 5,500 crore as the possible impact of ECL, of which bank has already created a buffer of around 1,000 crore.

Just to supplement, Ajmera sahab, in my address, we talked about five pillars. Actually, what our Nitesh sir is saying is absolutely true.

In today's dynamic world, disruptive world, all these things will be happening somewhere or the another into its own bits and pieces. Certainly, if you have to be robust enough to absorb these shocks and keep moving your business and profitability with robustness and sustainable way, probably, I think we need to work upon those five pillars which we are working.

That is what actually he also mean to say that these are the things which will keep on happening. Sometimes it will come down, it will move up.

The thing is that now if you see our presentation today, the treasury income has gone down by almost 45, 46%, but our core fee income has increased by 22.90, that is almost 23%. We are actually concentrating on very, very core business of the bank and to build the robustness within the efficiency from the core business itself.

Yes, sir. Hello?

Hello?

Yeah.

I think there is some disturbances. Hello?

Yes, yes.

We are there. Over to you.

Sir, your views on this drought impact, sir, now the conditions are deteriorating on the monsoon front, and the droughts are being declared in every state, drought conditions. How do you see?

Have you taken that into consideration, started working on it, that how it may impact our business either from the normal recovery front or from the additional credit expansion front? How the drought conditions are going to affect, and how are we going to tackle this situation, sir?

Actually, drought will not only affect our bank, but will affect the entire banking industry.

It is

right now, we are not seeing any adverse impact on that here. Let's see what happens in the next quarter, but yes, the government is also very proactive and they are taking the measures for protecting that here.

Whatever the government initiative will be taken, we will be participating in that, and previously also whatever the debt waiver or whatever the government initiative has been taken, we have actively participated in that here, sir. As such, we do not see any adverse impact on our balance sheet, sir.

Sir. Thank you very much for answering all my questions and giving such an elaborate presentation, sir.

All the best to you all. Yes, I'll come back again if the time permits.

Okay. Thank you very much, sir.

Thank you.

Hello, sir. Congratulations.

Sir, I had a couple of questions. Firstly, on savings deposits, the growth has been very good.

Are there any institutional deposits here, or they're all retail? Are there any bulk or institutional deposits?

It is mix, but we are actually much targeting on the premium saving account and the salary accounts. We have seen almost 1.8x sort of an increase in these two, three parameters.

Institutional, I would say, that there are some government accounts which are to be opened on a large scale in the saving bank only, which is as per the mandate of the various state and central governments. Comprise that as well.

That it includes both on the retail part in saving as well as on the institutional part. In institutional, we do not have the bigger chunk.

Say some 5,000, 10,000 crore in saving of some distribute like that. We do not have.

It is basically for your query, I believe, we should take that mostly it is retail, and even if it is institutional, it must be in a lower range of amount only, not the higher very higher range.

Got it. Any quantification, how much is institutional?

As of now, we're not keeping that data, if you want, we can interact offline. Overall, saving bank deposit growth was 12%, and overall CASA growth was 14.7% YoY.

I think we can give separately. You

see,

I would tell you that there are certain the panchayat accounts and our that rural development, ground level block accounts and all those are there, which we are paying as an institutional. Got it,

got it. That's so helpful, sir.

Sir, just one more question. I know it was asked earlier.

Because bond yields are sticky, what will be the one-time impact of valuation of HTM when you transit to ECL, right? Because that impact one time is irreversible.

That's why we want to know the quantum. I know for that bond yields have to stay high.

If they come off, then there's no impact, but just asking.

Yeah. See, we have worked out something first is that on the stage 1, stage 2, stage 3, that around 5,500 crore odd amount is going to come.

Now, there are two other parts. One is on the staff, and other is on the this HTM.

See, there are certain clarifications and other things are there, which are in under discussion at various. Some workshops are also happening.

We have also kept some advisor or consultant on this AFSA and ECL and all those things. We are working upon, and all the banks are in discussion with that.

One thing which I would, madam Mahrukh, I would like to give a comfort to you that what sort of things will come, now bank is in a position right now to I would not say the, absorb it or something, but let us understand that the way in which the industry itself is generating the profit and the sound business in terms of GNPA, NNPA, ROA, and all those things. Particularly, if I take your Union Bank, then all the things are on a very positive side.

I think we are in a position to absorb those things without any much hiccups. That is what comfort level.

If specifically, if you are asking, we have worked out. We have worked out on various permutation combination as far as the various interpretation and understanding.

It is not prudent right now to come up with those figures, because still that is under discussion, and there are some workshops happening, and also all the banks and IBA, we all are discussing. At the same time, as an investor, I certainly feel that you should have a comfort level on your bank that whatsoever even the other side of the scenario also, we are in a position to absorb it very swiftly going forward.

Got it, sir. Sir, and my final question is that would you have any comments to offer on potential M&A in PSU banks?

That is the same I am hearing like you are hearing. I also don't know much.

Sometimes I also ask investors, "What exactly are you hearing?" I don't have anything.

When we talk, in my address, you would have heard the five pillars. The thing is that our total focus is that quarter to quarter, how to take the bank into the next level of robustness.

Robustness in terms of all the five pillars. Now, I am not restricting that robustness only on the compliance and assurance and other things, but on all five.

If you build really on those five pillars, certainly maybe this year, next year, next to next year, five years, we do not know, the disruptive world which we are living in, what is going to happen when. At the same time, we know one thing that how to make the bank more better and robust so that any eventuality, any disruption, any shocks, any adverse shocks, we will be in a position to defuse it swiftly.

That's so perfect, sir. Thank you so much.

Thanks.

Mahrukh, in the meantime, I got the breakup of the saving portfolio. Overall, the growth YoY was 40,278, out of which 75% retail saving growth, 30,027, and only 25% was institutional saving growth, 10,249.

The growth is very sticky, because majority comes from the retail portfolio.

Sir. Thank you.

Thanks so much.

ahead. Hi.

Good afternoon and thanks for the opportunity, sir. A few questions.

First is, sir, on core ROA, right? You have given core ROA for the first time.

I believe you have removed treasury and TWO recovery, but it looks like the interest on IT refund, you have also deducted that. Is that the understanding correct, or apart from treasury and TWO, is there anything else also which is not there?

Mundrah ji,

only TWO recovery and treasury, these two things we have removed.

Sure. Sir, now on write-off amount, actually sir, if I see our last two, three years slippages have reduced materially, the write-off amount we have done at around 3,800 crore in first half.

I just wanted to check, sir, how much of would this be let us say management driven, and how much is because of the timing or regulatory timeline? How much is prudential, and how much is timeline driven?

The reason why I'm asking is if let us say if you're focusing on core ROA, then bank can actually reduce the write-off amount, because the recovery from write-off anyway is not getting accounted in core ROA. If you reduce write-off, then actually you can save on credit cost.

That is what I was trying to understand, of this first half write-off, how much is prudential, and how much is time driven?

See, let us understand Mundhra ji, that how various parameters mean to us and mean to others. Here, when we are saying core ROA, when you start building the efficiencies, you want to be more robust, resilient, and so you create and try to benchmark again your own standards.

When core ROA we have taken, it is not to write off or not to write off and all those things. It is very, very clearly that we are continuing with the same run rate which we are continuing the last half year, not this one.

The last, we had a one bigger account, that is why the amount was more, but if you see the last two quarters, we are continuing with the same run rate, and we have told very clearly that our target is around 3,000 crores as far as the TWO write-off is concerned. Recovery in TWO is concerned for the full year.

Total recovery, we want to be more than slippages. Certainly in that range of 10 to 12,000 crores, certainly we are aiming, and this written-off also we are aiming in the same range.

The treasury income which has inflicted a lot and probably will continue, so that is the reason that the ROA is 1.38, which is increased even there is a decrease of 46% in treasury income and the one or two account which we got resolved through NCLT route in the last half year of '25-26. At the same time, all the three ROA now we are monitoring, that is core and the general ROA and the ROA RWA.

I think that is not an issue that where we have to write off or not to write off that the things of cleaning the balance sheet. Now, you can see that almost all the parameters in Union Bank, particularly we are at the highest levels, whether the net profit or operating profit, NII, whether it is ROE, ROA, and all the other things.

Even then after that only, not impacting anywhere, we have taken out 200 crore this quarter and added to additional provision. It is now 1,000 crore standing strong in our balance sheet.

If I take that, the GNPA comes around 0.31 levels, and PCR moves to more than 96%. I think there where we are coming from, and that is what we are depicting, and we are discussing it here, that our purpose of benchmarking ourselves is a bit different and trying to improve from there.

Over to you, Mundhra ji.

Right, sir. Sir, okay.

Let me ask you, sir, this credit cost we have given is 21 basis point, right? Which is a reasonably stable number and a benign number.

Going ahead, under ECL, you will have a little bit bump up in standard assets provisioning. Could that jeopardize the core ROA of 1% level?

How do you see the rise in standard assets provisioning because under ECL, and could that have a bearing on 1% core ROA that we have shown?

See, ECL which we talked about is around 5,500 crores, which we are now discussing and talking about last one or two quarters, and we told we are comfortable in that 5,500 crores. Now, other two things, I think, let us see other two parameters.

One is the lowest of the SMA figures in Union Bank history after amalgamation. It is, I think, 2,822.

28,200.

2,822, above 5 crores. I think that is where it is the lowest.

The credit cost, slippages cost, both are lowest. Let us see one more thing, that there is a good credit growth.

Now your credit growth, you are seeing in the terminal figures, because now most of the churning we have done, and still we are doing, but then most of it we have done. If we take that churning, that is IBPC 33, 36,000 taken out, then some almost 50, 60,000, 70,000 crore low-yielding assets we have taken it out and all those things, the credit growth is quite good, more than 20, 21%.

At the same time, if you see the figures on the retail side, our 700 and above CIC score has moved up from last. I think I'm only saying last one quarter, but you can see last four quarters, it has moved quite up.

Now, coming to 25 crore and above external rating, almost 94, 95%, I think that is also improved last quarter. These two figures shows that we are underwriting quality assets, number one.

Number two, the monitoring is really very good using technology, analytics, and feet on street, and building the culture where we create a good quality assets, and at the same time, profitable assets. That is the reason that again it is improved.

Core ROA has improved from I think 41 or 42 basis point from last quarter, and now we have started monitoring it. Now coming to the impact of ECL, even if it comes, we will be in a position to take care of it.

Still we have two more quarters left. I think we are in a right direction, we are in right track, and we will in a position to swiftly handle all those situations.

Sir, actually my question was not very clear. Sir, this 5,000 crore is actually no problem at all when you transition.

My question is, sir, on a recurring basis, right now credit cost is 21 basis point, under ECL, because now the stage 2 assets will need more provisioning than under IRAC. Standard assets provisioning will go up.

Do you suspect that core ROA can

You are on ongoing basis incremental, correct?

Yes, sir.

Actually that is all that are in discussion and in working. As we move close to the March, I think we will be knowing all those figures.

By chance that the first itself on a transition date, say 5,500 odd, odd I am using, can be plus, minus something here and there. Even that we are in a portion to take it forward swiftly.

I think ongoing also will not be much issue, because even ongoing will depend upon the actual SMA figures, restructuring book figures, and all these figures only. That is why I was trying to tell you that even ongoing incremental as well we will in a portion, but the actual figures still to be worked out and these are discussions happening at the industry level and the IBA level, and that is what I told when Ajmera sahab I believe he was asking me or Madam Mahrukh I think I'm not very sure.

I think Ajmera sahab when he asked, there are various discussions happening, and once clarity comes, then I think figures will be in front of you. At the same time, I think we are in a position to move swiftly where the one-time as well as we believe that with this figures, ongoing will not have much of the impact.

Right, understood, sir. That is clear.

We will await as and when we get more clarity. Sir, secondly on growth, right?

Now we are doing reasonably well, we have stepped up on growth. What is your sense, sir, where would we be ending the year?

Last time I think you said we will be slightly above system. Does that still continue or what is your outlook on growth in with respect to industry?

Industry is also now 18, 19. We are also 18, 19.

What is your sense, where should we end the year?

We will move as per system credit growth. We'll be moving as per that only.

Right. Sir, anything on the bulk side, we have seen slight increase in the bulk deposit.

Now, this is the entire book has been reset, right? You do not have any material issue in growing the bulk deposit, because previous to this quarter, we were actually shedding a little bit of bulk.

Now should bulk deposit be business as usual, is that the understanding, or there was some opportunity wherein you increased bulk, and going ahead bulk may still be lower? What is your thought process?

See, the bulk as per definition is known above 3 crores, correct, Naveen ji?

Above 3 crores. That we generally term it as a bulk deposits, and below 3 crore as per RBI prescription, it is a retail term deposit.

Bulk deposit even in today's world when you finance infrastructure project, and within which you give an LC say 60%, 70% of the total term loan, there also LC 10%, 15% margin is there, various bank guarantees are there, it is in that. Generally, let me tell you bulk doesn't means that you are going for a high cost, or maybe a differential rate and all those things.

It means above 3 crores. We are going to accrue, and certainly when we say the credit growth to be in line with the industry, we will fund it first through retail and term deposit, CASA and retail term deposit, then various other channels, and certainly bulk deposit.

Now, comes the bulk means that say above 50 crore, 100 crore, 200 crore. We are also taking that, but at the same time earlier, we used to take even 2,000, 4,000, 5,000 crore from single party, but that we have reduced.

Now we have bifurcated, sometimes we take 300, 400, 400, 500, various maturities, various. Certainly, I'm going back to my earlier commentary where the financial institution we were trying to avoid, still we are continuing with that, that financial institution we don't prefer much, but non-financial institution we take it.

We from 2, 2.5, we have moved to 6.8, 7% growth, we'll be moving in that line only as far as the deposit is concerned.

Right. Thank you, sir.

I have a few more questions. I'll come back in the queue.

Thank you.

Congratulations to team Union Bank of India for excellent performance and greetings for the festive season. Sir, my question is India Prime Minister's scholars Viksit Bharat 2047, Union Bank and Indian banking system needs to transform for the new initiatives, new businesses which are emerging in the globe, and India also needs to catch up.

The trade businesses for the new initiatives led by hydrogen, maybe AI, GPUs, data center, and many such EV mobility value chain, solar value chain, I'm not talking about modules, but value chain, such businesses. Some of these businesses are commenced by PE or new entrepreneurs who have technology and they are backed by PE.

or financing which is coming from certain individual investors who have given the initial capital. Such transformation of businesses are emerging well.

How are we placed to garner business in such segment, and what initiatives will we take to understand this business to grow well along with that?

I think very pertinent question, Sushil ji, and certainly when we have to meet all of us the Viksit Bharat dream of 2047, we need to be in that league, and that moving into that league needs understanding of the new lines, new initiatives, new businesses. Certainly as of now, Union Bank is quite good player in terms of renewable energy, solar, BESS, that is battery storage systems and all, and the data centers and other things, we are already on.

We have even underwritten some good sort of a papers, and we have even down-sold. Almost, I can give a color to you that almost I think last 9 to 10 months or 11 months we have underwritten almost 90, 95,000, 1 lakh crore of a good papers, and we have down-sold.

That is the way in which we are moving. Now, coming to the some more new streams which are coming in like hydrogen, like the nuclear.

These are the new things which are coming in, and we are also doing employee skill development plans. Certainly, we are trying to engage with the various rating agencies, because they are somewhere better in understanding the risk, understanding the models, understanding the projections, and understanding the various other factors to underwrite.

We are also working upon this automation. It will take some time, obviously, that how we can have external data, still we are using, but mostly it is not very automated, but then we are going through AI and other things, where we can use all this data points across world to do the proper assessment of the proposals.

Most of the things which you said, we are into those lines of underwriting, which other banks are also doing, but then our bank is also doing it nicely. Coming to the hydrogen, nuclear, and few other more things, we are analyzing.

Actually, we are in discussion with some of the partners even in this line of business. We are also in discussion with some of the rating agencies of the world class that how they see this businesses, how they rate these businesses, because they also rate having the same parameters, and we also do the appraisal assessment on the same basis.

Jointly we are trying to have some idea and some models with them. I believe your question, and I would not only say, Sushil ji, when we talk about 2047, we only will not talk about the corporate, but let me tell you the businesses particularly the commercial bank, scheduled commercial banks, public sector banks, we may be probably you will see the UPI and ULI joining hands and moving into the automated system of analytics, automated system of the cash flow system of the credit dispensation and the monitoring and otherwise, having the growth rate particularly to meet the 2030, 2035, and 2047 objectives would not be that much easy.

That is why again that Sudarshan which we told you, that and not only to you, but I would invite all the investors who are listening to this concall, that in Bombay, you are invited to see this Union Sudarshan stream, and now we are also working upon many things, and one RFP is already there, which you can see, but we are working upon some more things. I would not divulge right now, but as we move forward by next one or two months, three months, you will be seeing some initiative where we are working to build the capabilities in the credit administration I will use the word rather than credit sanction, credit appraisal, and credit disbursement, and credit monitoring.

I would use a better word as a credit administration, how we can better entire ecosystem so that the disbursement happen fast, credit growth happens fast to make 2047, but at the same time quality is maintained, which is most important for any of the regulatory entity.

Sir, basically you are indicating that long-term financing for nuclear, power infrastructure, data center, construction may not take much time for data center, but lease rental discounting, 15, 19 year kind of project financing, you are open to, am I to understand that?

Yes, we have already done. We have already done.

Okay. Sir, now my next question is India is growing.

A lot of Indian corporates are growing globally, and domestic also, M&A will start. In one of our peer larger banks call, they said they are aligning with some foreign banks on financing for M&A.

What is our vision on M& financing, sir?

See, we have done a few deal on M&A, and we are already in talk with some of them, and also This requires actually creating a desk within the large corporate vertical and risk management with a proper skill set to underwrite or maybe to assess the proposals which are coming under the hydrogen or a nuclear or maybe on the merger and acquisition, which we are already, and that is where I said that we need one or two months more along with some RFPs to build in technological as well as human capabilities to underwrite and create this. We are working upon that, but I believe that things will move in a right direction, and actually, if you have talked about data center, I think we have already underwritten some six, seven good proposal, good quality papers, AA, AAA sort of papers in the data center.

We have that capabilities. We have to further skill it to hydrogen and other sort of a energy or maybe the other business lines which are going to come.

That is why I said this FCNRB will help three years, five years for the asset and liability, and let me tell all the investors and Sushil ji to you as well that we have issued this bond, foreign currency bond of 600 million, and now we are listed in the stock exchange, GIFT City, NSE GIFT, NSE stock exchange, and it is a traded. Certainly, now we have already opened a way to take the money for a longer term through that route.

That is actually not an issue. When we talk about this foreign currency bond, it is like MTN program which we can always enhance and go forward as a along with the some more batches of 200, 300 millions.

Also, we will not like to right now much discuss, but already we are in talk with some of the very good worldwide agencies for some the funding lines in a very good perspective on the green energy side. Then not a right time right now to discuss more upon that.

We are in discussion, and certainly when we move towards this sort of an appraisal systems, we will be needing that, and we'll be utilizing those opportunity to capitalize on that. Sir,

my last question in this round, based on whatever I could sense from your conversation, we have a good credit pipeline where large-ticket corporate book is concerned. Can you indicate what kind of growth will you do in RAM

Amresh ji will tell on the pipeline.

We are having more than 1 lakh crore in pipeline, sir, for the large corporate, which is basically into the infrastructure and likely to be disbursed in next one and a half years. We don't have any problem in building further pipelines and all here.

We are having a good credit proposal in hand also. What I'm saying these are the sanctioned pipeline.

Sushil ji, just to add on to what Amresh ji has said, we are across the field. As sir is also mentioning, we are trying to go into different fields, including the EV mobility.

You have spoken about the EV mobility and other area. Today also what we see that we have got around a good amount of proposals which is under pipeline, which is around 64,000 crores.

So, 1 lakh 20, 25,000 crores of sanction that we are holding for disbursement, and around 64, 68,000 crores of sanction in proposals in pipeline, which are going to be sanctioned over maybe with the March type. In a pipeline side, we are comfortable with the sanction that we are getting.

Across the sector, we are getting. We don't find much challenge in getting the good amount.

As sir was also mentioning about the underwriting, we have done many underwritings, and after doing the underwritings, the capability, that capability is there with us. Even the other banks are also taking exposure from us.

We have down-sold many of the proposals after getting the sanction. Right now, that is the position.

Thank you for answering all my questions, and good luck for the year to the team Union Bank of India. Thank you.

Thank you, Sushil ji.

Hello.

Yeah. Sir, I want to know in the other income, why there is a fall in 10% YoY and 5% QoQ?

See, there was a reduction on account of reduction in treasury and technically written-off recovery. 545 crore on these counts were on a YoY basis, and on a sequential basis, the other fee income non-interest income got reduced because of booking of PSLC commission in Q1 of 217 crore, which was not there in Q2.

Yeah. Hello, sir.

Thanks for the opportunity, and congrats on a great quarter. Sir, just wanted to understand firstly on PSLC fees, why is there no PSLC fee in this quarter?

Because we understand I think some of the large private banks are still reporting big shortfalls in PSL, the opportunity is there. Yeah.

That's my first question, sir, if I can come back for the other.

See, PSLC income we booked depending upon our priority sector portfolio, and we keep on working on it, assessing the the portfolio going forward. Wherever the room is available, we sell our portfolio and book the income like we did it in Q1.

If the situation permits, we will be doing it in this quarter or the quarter going forward.

We have an excess also this time, but we wanted to be more comfortable on the excess side of the PSL and then move forward. Earlier quarter also, we have already, if you see the SMF, that is small and marginal farmers, and agriculture, both portfolio we have sold earlier.

Absolutely, that is not an issue. We are all already this time also even even now also that is issue is not there, but then we wanted to assess properly and then move ahead.

Hi, sir. Thank you for the opportunity.

I wanted to understand in the TWO recovery part, is there any one-off lumpy recovery from Maharashtra state government PSU or something like that, or is it all small recoveries only?

No lumpy recovery.

Ek minute, ek minute. No.

TWO recovery, Maharashtra state government debt waiver is not the part of that recovery. These are all small, small accounts, and one vivo ln 150 crores we received in this period.

No major bigger chunk. All small only we are doing.

Maharashtra government accounts were not written off.

That is what they wanted to know.

Hi, sir. Good afternoon.

Sir, first question is what is the crop loan exposure that you have in the states of Maharashtra and Karnataka? Second question, sir, the growth in gold loans seems to have slowed quite a bit now.

It's growing at only about 7% YoY. Any reason for that?

Along with that, if you can share the breakup of gold loans between retail and agri.

I think what was the question, Maharashtra and Karnataka? Crop loan, I think we need to work it out and give, but not much, because the Andhra Bank was actually merged with us, and we had a very good portfolio in AP and Telangana.

It is more of an SHG, almost I think our SHG portfolio itself is more than 35,000 crore approximately. That is why, various questions when asked about drought and all those things, we have not faced any of the issue on those lines as far as the agriculture is concerned up till now.

Coming to the gold, actually yes, very, very objectively and purposefully, we have not grown aggressively in the gold. The purpose is not any negative, because purposefully the LTV we have kept not so good conducive to the market and rate of interest also, and we wanted actually to digitize the entire journey, including the assessors role, and the audit role, and how everything can be digitized, how inspection can take place, and the gold pouch and everything.

That's the reason that We are actually building it very properly. It may take one or two months more before embarking upon the next phase of a growth, because if you see the Union Bank per se, earlier years, we have grown very fast.

Always there is a better to have some consolidation phase and to move to the next with all those sort of a robustness and Until unless you build technology both in assessment and monitoring, probably I feel that it will not be prudent to scale up the business in a very nice manner. That's the reason that we have not grown much, but yes, we are in the business, and you asked about retail and agri.

Probably, I think we can take safer side, 55 and 34 and 55. 34 retail, 55 agri.

Agriculture.

Good afternoon, sir, and thanks for the opportunity. Congrats on good set of numbers.

Sir, just wanted some clarity on the one-offs in opex, if there is something there. Also, in 1Q concall on ECL, you had mentioned that total ECL impact would be 11,300 crores, of which 5,500 was provided.

When in this quarter we're talking about 4,500 of residual provision, the total 1,000 crores that has been provided from 4Q, 1Q, and 2Q, that is what you are adding in 5,500, or is there a change in that total number of 11,300? Just wanted to clarify that.

No, actually what you're asking is not very clear, but second part, I think I can understand and clarify again that as per our estimate, the ECL impact will be 5,500 crore when we transition. To take care of that impact, since the March quarter, including the current quarter, we have created additional provision buffer of 1,000 crore to take care of the requirement of 5,500 crore transition amount.

The first part, what you asked, is not very clear, if you can repeat.

On the second part also, I was asking that in 1Q, you had said that total ECL impact would be 11,300-odd crores, of which you had already provided 5,500. No, no, no.

No, no, no, no,

no. See, again whatever we have been saying since March is the same thing, that around 5,500 crores of transition impact.

To take care of that, since March quarter, we have been creating additional buffer. Accha,

okay. I think now I understood.

Probably there is some miscommunication. First, we built 600 crore additional.

700.

Then 700, then 100,

then 200

this quarter. Total 1,000 crore, and it is not part of your profit, it is not part of your PCR, not part of your CRAR.

We have kept this 1,000 crore while maintaining the best of the profits and the other ratios for the Union Bank. I think that some miscommunication.

Our transition will be for 5,500 crore, and as Mr. Mundhra was asking, ongoing still that all work has to be done, it is under discussion, some interpretational issues are there.

That is the reason that even the advisors and the consultant are put by all the banks into ECL, and the industry body, we all are in discussion. That will take time.

As far as your question is concerned, it is 5,500 crore our approximate working plus, minus maybe 100, 200 crore here and there, but 1,000 crore we have kept aside since last three, four quarters to meet out this ECL on the going forward.

Yeah. Good evening, management sir.

My question is that you told that you have had $2.25 billion of FCNR deposits. How much of the FCNR advances we have given against these deposits, what's the number?

Leveraged. It's 70%

Leverage.

Please. How much?

Approximately 70% is through leveraging.

Okay. Also one last suggestion from my side that you was giving the bifurcation of a other income as a processing fees and commission and all, but from last two quarters maybe you have stopped the bifurcation of other income.

Please if you can restart the same. That's from my side.

Fine. We will consider.

Earlier, we showed the other income earlier.

LC, BG, and all those things. Okay.

Next.

Thank you for the opportunity, and congratulations for good set of numbers. Also, thank you for patiently answering for almost one and a half years half hours now.

My question is about the guidance considering the fact that there is an interest tightening cycle which has started now, will there be any impact on our ROA and NIMs going forward, and what what do you see where the trajectory is, heading towards the end of the financial year?

See, with the increasing rate cycle, always it is constructive as we have seen. Let me come back to the December when the repo was cut by 25 basis point, and March we suffered by almost 16, 17, which came down to 2.64.

After that, there was no change stance in the repo. From there, we built 22 basis point up till now, and we are sitting at 2.86.

Without any rate stance change, now only it has changed, and the impact has to come in the coming quarters. Coming to the first thing is that since we could manage improving the NIMs and ROA without any stance change for last I think nine months from 1st of January till 30th of September.

We always believe to work hard, and then come back with some good set of improvements in the efficiency. That is what we touch in my address also on the five pillars.

Now since rate hike is there, we are confident that it will be have a positive constructive role in the NIM and ROA going forward. At the same time, because our repo-linked book is almost 53, 55%.

It has to be conveyed and it is conveyed, but at the same time, to keep the asset quality right, and have the competitiveness in the market at the right product level and the product range level, two things are different: product is different, product range is different. We have kept improving our rating above 25 crore external rating, which you have seen above 94, 95%, and CIC score which we have further improved by 1% this time.

I think keeping in view all these things, certainly we will be in a position to inch up on a better side on the NIM and the ROA side, or efficiency ratio, let me put differently. We expect that what sort of ratios and figures we have shown this time, we would like to defend and improve it further.

I think this small sentence we keep on saying since January that we would like to defend and keep on improving from here onwards. We still adhere to it.

Okay. Thanks a lot.

The last quarter was a happening sort of a quarter for the entire banking industry, entire economy as such, as far as our country, our Bharat, our Indian economy is concerned. We saw the advent of FCNR, we saw various things coming into play.

Even there were negative side, geopolitical conflicts, West Asia conflict, and the oil prices coming down, moving up, then again the rate hike cycle being towards moved. I think these are the happening things, and but at the same time with the due interventions at the right time with the right perspective by both government and Reserve Bank of India, I think as an economy, we could sail through, and the entire banking industry, we could sail through.

As a Union Bank, certainly the numbers are in front of you, and we could adhere to what we said so far in principle. Here again, when we move to the next quarter and move towards M27, we certainly believe that keeping in view the same set of circumstances going ahead, the team is doing good, team is working well, and we still say that the numbers which we have shown, we like to defend it and move it further better.

With this, thanks to all of you for giving your precious time for this meeting, and we always welcome our investors that you give suggestions to us. With your suggestions, we note it down actually, and we try to work upon that to so that we come with some more improvement next time.

As I said, I invite all of you for our unit, Union Sudarshan. It is very unique of its kind in near next to Bombay Stock Exchange.

It is one of its kind to see. It is very pervasive, and probably what we are saying here, you will be in a position to understand.

Our RFP which I shared with you is already in our website, section three, page number 30 to 35 in Project Muskaan, I think that also gives some color, and there is something in pipeline the next quarter on the new initiatives, but still we are waiting for some more connections to happen from the various economic participants, and we will be in a position to share with you in between as well whenever the things happens or maybe next quarter when we meet you. Till then, we are thankful to you.

We are grateful to you, and we are obliged. Jai Hind, Jai Bharat.

Thank you.