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Informist, Thursday, Jul 25, 2024

--Ujjivan Small Fin Bk: Floating provision 2.5 bln rupees as on Jun 30 
--Ujjivan Small Fin Bk Apr-Jun provisions 1.1 bln rupee vs 261.1 mln 
--Ujjivan Small Fin Bk Basel II capital adequacy ratio 24.85% Jun 30 
--Ujjivan Small Fin Bk Apr-Jun total income 17.7 bln rupee vs 14.6 bln 
--Ujjivan Small Fin Bk net NPA ratio 0.41% Jun 30 vs 0.28% qtr ago 
--Ujjivan Small Fin Bk gross NPA ratio 2.52% Jun 30 vs 2.23% qtr ago 
--Ujjivan Small Fin Bk Apr-Jun net profit 3.01 bln rupees vs 3.24 bln 
--Ujjivan Small Finance Bank Apr-Jun net profit 3.01 bln rupees 
 

By Priyasmita Dutta

NEW DELHI – A rise in provisioning and higher slippages ate into Ujjivan Small Finance Bank's net profit for the June quarter. The small finance bank reported a net profit of 3.01 bln rupees, down 7.1% from a year ago. Analysts had projected the Bengaluru-headquartered bank to post a profit of 2.40-3.12 bln rupees in Apr-Jun, compared with 3.24 bln rupees a year ago. Sequentially, the net profit was down 8.7%.

The small finance bank's provisioning, which adversely impacted net profit, was 1.10 bln rupees, over four-fold from 261.1 mln rupees a year ago. Sequentially, provisioning rose 39.1%. Brokerages had projected microfinance portfolios seeing higher slippages during the quarter due to election-related collection disruption in May.

Ujjivan Small Finance Bank's net non-performing assets worsened to 1.11 bln rupees, rising nearly nine times from a year ago. Sequentially, the net non-performing assets rose 45.8%. The small finance bank's net NPA ratio at the end of June was 0.41%, weaker than 0.28% a quarter ago. The gross NPA ratio worsened to 2.52% from 2.23% a quarter ago. 

Heatwave conditions during the summer also tend to take a toll on small finance bank's slippages, brokerages said. At 1447 IST, shares of the small finance bank traded 1.3% lower at 43.93 rupees on the National Stock Exchange.  More