Wednesday, August 12th, 2020

Ujjivan Q3 results - Gross Loan Book grows 32% y-o-y; NNPA at 0.3%

Strong build-up in retail liability franchise, ROA at 1.7% and ROE at 9.7%

INVC NEWS New Delhi ,  

Ujjivan Financial Services Ltd. [BSE: 539874; NSE: UJJIVAN], the holding company and promoter of its 100% subsidiary “UJJIVAN SMALL FINANCE BANK”, today announced its consolidated financial performance for the quarter and nine months ended December 31, 2018.

Summary of Business Performance – Q3 FY 2018-19:

The financials and ratios as below are based on consolidated numbers:

v  Loan Book at ₹9,349 crore; growth of 31.8% over Q3-FY18

v  Net Loan Book at ₹9,073 crore; growth of 31.0% over Q3-FY18

v  Non-MFI portfolio now contributes 13.4% to the portfolio against 5.5% in Q3-FY18

v  Disbursement for Q3-FY19 at ₹2,885 crore; an increase of 35.2% over Q3-FY18

v  Secured portfolio constitutes 10.2% to the portfolio compared to 3.9% in Q3-FY18

v  Added 97 full service banking outlets in Q3 FY19 taking total count as of December’18 to 464

v  GNPA at 1.4% and NNPA at 0.3% in Q3-FY19 against 4.2% and 1.0% respectively in Q3-FY18. Took write-off of ₹29 crore

v  Deposit base at ₹5,376 crore in Q3-FY19 covering 58% of total advances against 35% in Q3-FY18

v  Retail deposits at 36.2% to total deposits against 10.4% in Q3-FY18; CASA ratio improved to 10.4% from 3.7% in Q3-FY18

Mr. Samit Ghosh, MD & CEO, Ujjivan Small Finance Bank said, “The quarter witnessed improved growth and building of the business momentum. As we mentioned post Q2-FY19, growth in our MicroBanking vertical has picked-up. We expect overall growth momentum to continue, leading to 30-35% AUM growth in FY19. We continue to improve our retail deposits business, driven by expansion of our branch network and our continuous marketing efforts. Retail deposits stands at 36% of total deposits. Given our strong MicroBanking book and expanded funding options, we are comfortably placed despite tight liquidity scenario and were able to further reduce our exposure to the CD market. Our Net Income at Rs. 45.2 Crores was stable and in line with our forecast. We are fully committed to abide by the RBI guidelines in terms of promoter holding dilution to 40% by January 2022 and listing of the Bank by January 2020. Our Board has approved the roadmap, keeping in mind the interest of our shareholder. Since the process requires certain regulatory approvals, we would be better placed to share the details once the approvals are obtained. Overall, the fundamentals of the business are strong, and we look forward to a robust growth on the banking platform we have built.”

Commenting on the performance of the company, Mr. Ittira Davis, MD & CEO, Ujjivan Financial Services said, “Consolidated Net Interest Income increased by 30% against Q3-FY18. Stable cost of funds and interest rate hike  for Group Loans which we took in Sep’18 has helped us to maintain NIM at 11.8% in line with Q2-FY19. Asset quality remains strong with GNPA at 1.4% and NNPA at 0.3%. Capital adequacy ratio at present stands at  22.2%, out of which Tier I capital is 21.6%”

Summary of Financial Performance – Q3 FY 2018-19:

The financials and ratios as below are based on consolidated numbers:

v  Net Profit of ₹45.2 crore in Q3-FY19 against ₹29.3 crore in Q3-FY18

v  Total Income of ₹512.6 crore in Q3-FY19, an increase of 33.4% over Q3-FY18

v  Net Interest Income of ₹255.0 crore in Q3-FY19, an increase of 30.2% over Q3-FY18

v  Net Interest Margin at 11.8% in Q3-FY19, in line with Q3-FY18

v  Cost to Income ratio at 77.7% in Q3-FY19, an increase from 69.0% in Q3-FY18

v  ROA at 1.7% and ROE at 9.7% for Q3-FY19 against 1.3% and 7.0% respectively for Q3-FY18

v  Diluted EPS for Q3-FY19 at ₹3.7, an increase from ₹2.4 in Q3-FY18




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