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Informist, Thursday, Oct. 24, 2024

 

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--Ujjivan Small Finance Bk Jul-Sept net profit INR 2.33 bln vs INR 3.28 bln 
--Analysts saw Ujjivan Small Finance Bank Jul-Sept net profit INR 2.61 bln 
--Ujjivan Small Fin Bk Jul-Sept total income INR 18.20 bln vs INR 15.80 bln 
--Ujjivan Small Fin Bk Jul-Sept provisions INR 1.51 bln vs INR 469.20 mln 
--Ujjivan Small Fin Bank Apr-Sept net profit INR 5.34 bln vs INR 6.52 bln 
--Ujjivan Small Fin Bk Apr-Sept total income INR 35.94 bln vs INR 30.44 bln
--Ujjivan Small Fin Bank gross NPA ratio 2.52% on Sept 30, unch on quarter 
--Ujjivan Small Fin Bank net NPA ratio 0.56% as on Sept 30 vs 0.41% qtr ago 
--Ujjivan Small Fin Bank Basel II capital adequacy ratio 23.38% on Sept 30 
--Ujjivan Small Fin Bk Jul-Sept NIM 9.2% vs 9.3% qtr ago 
--Ujjivan Small Fin Bk Jul-Sept NII INR 9.44 bln, up 15% on year 
--Ujjivan Small Fin Bk total deposits INR 340.70 bln Sept 30, up 17% YoY 
--Ujjivan Small Fin Bk gross loans INR 303.44 bln as on Sept 30, up 14% YoY 

 

By Ashna Mariam George

 

MUMBAI – Ujjivan Small Finance Bank's net profit slipped during the September quarter due to a three-fold increase in provisioning and higher operating expenses. The net profit declined 28.9% from a year ago to INR 2.33 billion, missing the Street estimate of INR 2.61 billion. On a sequential basis, the net profit was down 22.6%.

 

The Bengaluru-headquartered bank's provisioning and contingencies soared to INR 1.51 billion from INR 469.20 million a year ago.

 

Collections were slightly impacted at 97% in September compared with 98% in June, primarily because of the group loan segment, Managing Director and Chief Executive Officer Sanjeev Nautiyal said in a press release. 

 

The lender's gross non-performing assets were at INR 7.50 billion as on Sept. 30, up 7.6% from INR 6.97 billion a quarter ago. As a ratio, the gross non-performing assets remained unchanged from the previous quarter at 2.52% due to steady loan growth and the write-off of bad loans worth INR 1.40 billion during the quarter.

 

Nautiyal said the bank's cautious approach by introducing stricter norms compared to microfinance institution network guidelines will ensure quality acquisitions going ahead. Ujjivan Small Finance Bank's net non-performing assets ratio widened to 0.56% as on Sept. 30 from 0.41% a quarter ago and 0.09% a year ago.   More

 

The bank's provision coverage ratio fell to 78% as on Sept. 30 from 84% a quarter ago.

 

A sharp rise in operating expenses also weighed on the bottom line of the small finance bank in Jul-Sept. About 50% of the total expense of INR 13.59 billion was operating expenses, which rose over 30.6% on year to INR 6.90 billion. Within operating expenses, employee costs increased 34.7% on year to INR 3.68 billion, while other operating expenses rose 26.1% on year to INR 3.22 billion.
 

The net interest margin of the bank fell marginally to 9.2% in Jul-Sept from 9.3% in the previous quarter.  Most analysts expected an industry-wide moderation in net interest margin and higher credit costs to weigh on Ujjivan Small Finance Bank's performance during the quarter. The bank's performance in the quarter ended September was impacted due to much slower growth compared with previous quarters due to the impact on microfinance business book and rising credit costs, Nautiyal said.

 

The interest expense rose 17.8% on year to INR 6.69 billion for the reporting quarter, while, the interest earned grew at a slower pace of 15.9% on year to INR 16.13 billion. The lender's net interest income rose 15% on year to INR 9.44 billion during the quarter ended September.

Ujjivan Small Finance Bank's gross loan book grew 14% on year to INR 303.44 billion and total deposits rose 17% on year to INR 340.70 billion as on Sept. 30. The bank had a current account savings account ratio of 25.9% against 25.6% in June. Disbursements during the quarter was at INR 53.76 billion, down 6% on year. The bank's Basel II compliant capital adequacy ratio stood at 23.38% against 25.19% a year ago.

 

Shares of the bank fell as earnings missed analysts' expectations. On Thursday, shares of the bank ended 3.9% lower at INR 36.60 on the National Stock Exchange.  End

 

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Edited by Saji George Titus

 

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