Ujjivan SFB posts 98% y-o-y rise in net profit, led by higher NII and other income
Ujjivan Small Finance Bank on Wednesday reported a 98% year-on-year (y-o-y) rise in its net profit to Rs 90 crore for the December quarter on the back of higher net interest income and other income.
The net interest income (NII), the difference between interest earned and interest expended, grew 52% y-o-y to Rs 426.5 crore.
Gross advances increased 46% y-o-y to Rs 13,617 crore, while the deposit base grew 98% y-o-y to Rs 10,656 crore in Q3FY20. The net interest margin, a key measure of profitability, fell by 10 basis points (bps) sequentially to 10.9%.
Gross NPAs rose to Rs 129.45 crore, or 0.95% of gross advances, compared with 0.85% in the September quarter and 1.41% a year ago. The net NPA came in at 0.38% of net advances, against 0.33% in Q2FY20 and 0.26% in the year-ago period. The bank wrote off loans worth Rs 12 crore in the December quarter.
Provisions stood at Rs 30.53 crore, against Rs 24.79 crore in the September quarter. The bank made an additional provision of Rs 4.94 crore on standard advances in the microfinance portfolio due to perceived risks in Assam.
Nitin Chugh, MD and CEO, said the Q3 performance was “remarkable” in various aspects. “We maintained good asset quality despite market challenges, increased digital transactions, and continued to reduce TAT (turnaround time) in our various asset businesses.” Disbursement and book growth in Q3 was healthy and in line with our deliberate strategy to moderate customer acquisition in select pockets and focus on existing customers, he added.
Non-microbanking contributed 22% to the portfolio in the December quarter against 14% Q3FY19. The CAR increased to 28.38%, compared with 18.84% in the September quarter. The bank raised `745.9 crore through its IPO in December, and an additional Rs 250 crore via private placement of equity shares.