Ujjivan SFB posts Q1 internet revenue of Rs 203 crore on fall in dangerous loans, document mortgage disbursement

Ujjivan Small Finance Bank reported its highest-ever quarterly revenue in June 2022 quarter at Rs 203 crore on larger curiosity earnings, fall in dangerous loans in addition to robust mortgage disbursement.

The Bengaluru-based Small Finance Bank (SFB) had posted a internet lack of Rs 233 crore in the identical quarter a 12 months in the past. Compared sequentially, the online revenue was up by 60.4 per cent from Rs 126.52 crore in quarter ended March 2022.

This is the highest-ever quarterly internet revenue, the financial institution stated, including there may be continued traction on collections facet at about 99 per cent.

Bank’s complete earnings throughout April-June interval of 2022-23 rose by 40 per cent to Rs 1,000.42 crore, as towards Rs 714.67 crore in identical quarter of 2021-22, Ujjivan SFB stated in a regulatory submitting.

The curiosity earned by the lender jumped by 41.1 per cent to Rs 905.37 crore in Q1 FY23 as towards Rs 641.66 crore in Q1FY22. While different earnings grew to Rs 95.1 crore as towards Rs 73 crore.

Net curiosity earnings — curiosity earned minus curiosity expended — rose by 56 per cent from a 12 months in the past to Rs 600 crore in the course of the quarter.

There was important discount in dangerous mortgage proportion because the financial institution minimize down the gross Non-Performing Assets (NPAs) to six.51 per cent of the gross advances by finish of Q1 FY23 from 9.79 per cent within the year-ago interval.

In absolute worth, the gross NPAs or dangerous loans stood at Rs 1,146.71 crore as towards Rs 1,374.98 crore recorded on the finish of June 2021.

Net NPAs shrank to 0.11 per cent (equal to Rs 17.80 crore) from 2.68 per cent (Rs 348.73 crore).

This aided in substantial discount in provisioning and contingencies requirement for June 2022 quarter to Rs 39 lakh (Rs 0.39 crore) as towards Rs 473.21 crore within the first quarter of FY22.

Ujjivan SFB stated the June quarter witnessed strongest disbursement in financial institution’s historical past at Rs 4,326 crore, up by 230 per cent from a 12 months in the past interval. Deposits rose by 35 per cent from a 12 months in the past to Rs 18,449 crore.

Of this, retail deposits jumped by 65 per cent to Rs 10,761 crore.

The financial institution stated it’s increase new buyer acquisition with 34 per cent of the loans to new prospects, up from 24 per cent in This autumn FY22. It additionally acquired 1.9 lakh new prospects in Q1 FY23. It stood at 1.5 lakh in This autumn FY22.

“On disbursement side, it was strongest-ever first quarter reaffirming strong credit demand. Our deposit book continues strong growth, up 35 per cent year-on-year. Retail deposits and CASA contribute to 58 per cent and 28 per cent of total deposit,” Ittira Davis, MD & CEO, Ujjivan Small Finance Bank, stated.

Besides, the PAR (Provision Against Restructuring) continues to enhance, at the moment at 7.9 per cent versus 9.6 per cent as on March 2022.

“This is largely due to normalisation of slippages and strong focus on collections. We continue to hold strong provisioning buffers on our books with PCR (Provision Coverage Ratio) at 98 per cent, resulting into NNPA of mere 0.1 per cent. Our strategy to build granular liability base will remain our prime focus going ahead along with enhancing our digital capabilities which is resulting in improved business and productivity levels,” Davis stated.

Ujjivan SFB stated it’s diversifying its different earnings sources and can ramp up present line of merchandise over the medium time period. These embody insurance coverage merchandise of life, normal, well being section in addition to related advantages for goal segments.

Stock of the financial institution closed at Rs 19.10 apiece on BSE on Tuesday, up 9.77 per cent from earlier shut.