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Informist, Thursday, Jan. 23, 2025

 

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--Ujjivan Small Finance Bk Oct-Dec net profit INR 1.09 bln 
--Analysts saw Ujjivan Small Finance Bank Oct-Dec net profit INR 1.41 bln 
--Ujjivan Small Fin Bank Oct-Dec PAT INR 1.09 bln vs INR 3.00 bln year ago 
--Ujjivan Small Fin Bk Oct-Dec total income INR 17.63 bln vs INR 16.55 bln 
--Ujjivan Small Fin Bk Oct-Dec provisions INR 2.23 bln vs INR 629.10 mln 
--Ujjivan Small Fin Bank Basel II capital adequacy ratio 23.90% as on Dec 31 
--Ujjivan Small Fin Bank Apr-Dec net profit INR 6.43 bln vs INR 9.52 bln 
--Ujjivan Small Fin Bank gross NPA ratio 2.68% on Dec 31 vs 2.52% qtr ago 
--Ujjivan Small Fin Bk Apr-Dec total income INR 53.58 bln vs INR 46.99 bln

--Ujjivan Small Fin Bank net NPA ratio 0.56% as on Dec 31, unch on quarter 

--Ujjivan Small Fin Bk Oct-Dec NII INR 8.87 bln, up 3.1% on year 

--Ujjivan Small Fin Bk Oct-Dec NIM 8.6% vs 9.2% in Jul-Sept, 8.8% yr ago 

--Ujjivan Small Fin Bk provision coverage ratio at 80% as on Dec. 31 

--Ujjivan Small Fin Bk gross loans INR 304.66 bln as on Dec 31, up 9.8% YoY 

--Ujjivan Small Fin Bk deposits INR 344.94 bln as on Dec 31, up 16.3% YoY 

--Ujjivan Small Fin Bk CASA deposits INR 86.62 bln as on Dec 31, up 15% YoY 

--Ujjivan Small Fin Bk CASA ratio at 25.1?c31 vs 25.9% as on Sept 30 

--Ujjivan Small Fin Bk MD: Keeping close watch on evolving microfin space 

--CONTEXT: Ujjivan Small Fin Bk MD Nautiyal said in the press release 

--Ujjivan Small Fin Bk MD: Will apply to RBI for universal bk license shortly 

 

By Ashna Mariam George 

 

MUMBAI – A sharp rise in provisions led to the fall of Ujjivan Small Finance Bank's net profit by over 60% for the December quarter. The small finance bank's net profit for the quarter slumped 63.8% on year to INR 1.09 billion, missing the Street's estimate of INR 1.41 billion. Sequentially, net profit was down over 53%.

 

The Bengaluru-headquartered bank's provisioning and contingencies surged over 250% on year to INR 2.23 billion in Oct-Dec. An increase in total expenditure also ate into the lender's net profit for the reporting quarter. Total expenditure for Oct-Dec rose 17.2% on year to INR 14.04 billion. Of the total expenditure, operating expenses grew 19% on year to INR 7.00 billion.

 

A fall in the net interest margin also adversely affected the lender's net profit. Ujjivan Small Finance's net interest margin for Oct-Dec moderated to 8.6% from 9.2% in Jul-Sept, and 8.8% a year ago.

 

The small finance bank's board Thursday approved its application to transition to a universal bank, and the application will be moved to the Reserve Bank of India in Jan-Mar, Managing Director and Chief Executive Officer Sanjeev Nautiyal said in a press release. 

 

 

The lender's gross non-performing assets were at INR 8.11 billion as of Dec. 31, up 8.17% from a quarter ago. The gross non-performing assets ratio was up to 2.68% from 2.52% a quarter ago. The small finance bank's net non-performing assets ratio remained unchanged on quarter at 0.56%.

 

To manage asset quality better, the bank sold stressed loan assets worth INR 2.70 billion, Nautiyal said in the press release. Nautiyal also said the bank is "keeping a close watch on the evolving microfinance space and navigating it appropriately". The lender's overall collection efficiency fell marginally to 96% in December, from 97% in September.

 

The bank's provision coverage ratio inched up to 80% as of Dec. 31, from 78% as of Sept. 30. The bank has also taken an accelerated provision of INR 300 million "to be better cushioned from any future exigencies". Its Basel-II compliant capital adequacy ratio was 23.90% as of Dec. 31.

 

The lender's net interest income rose 3.1% on year to INR 8.87 billion during the December quarter. On the business side, Ujjivan Small Finance Bank's gross loan book rose 9.8% on year to INR 304.66 billion in Oct-Dec. Its secured loan book was 39.3% of the gross loan book as of Dec. 31, up from 28.3% a year ago. The rest of the loan book was unsecured.

 

Micro group loans, which form the major chunk of the gross loans, fell 12% on year to INR 136.63 billion as of Dec. 31. The affordable housing loan book, on the other hand, grew 45% on year and 11% on quarter to INR 63.93 billion. Other segments such as individual loans, micro, small, and medium enterprises loans, and agricultural and allied loans were more or less steady.

 

The small finance bank's deposits grew 16.3% on year to INR 344.94 billion in Oct-Dec. The lender's current accounts savings account deposits rose 15% on year to INR 86.62 billion for the reporting quarter. The current account savings account ratio stood at 25.1% as of Dec. 31. The lender's total income for the December quarter rose 6.52% on year to INR 17.63 billion. 

 

For the nine months ended Dec. 31, the lender's net profit fell 32.48% on year to INR 6.43 billion. The total income for the period rose 14.01% on year to INR 53.58 billion. 

 

Ujjivan Small Finance Bank announced its financial results after market hours Thursday. Shares of the lender ended 0.4% higher at INR 34.56 on the National Stock Exchange.  End

 

Edited by Rajeev Pai

 

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