Ujjivan Small Finance Bank Q3 profit doubles to Rs 90 crore

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Kolkata: Ujjivan Small Finance BankNSE 2.24 %’s net profit for the December quarter has doubled at Rs 90 crore due to a surge in micro lending despite slowing customer acquisition in Assam and in coastal Karnataka where it faced repayment issues.

Net interest income, the difference between what it earned from lending and what it paid for funds, rose 52% that helped it post earnings growth.

Net interest margin, a measure of profitability, shrunk a little to 10.9% for the quarter under review as compared with 11% in the year ago period.

“Disbursement and book growth in Q3 is healthy and in line with our deliberate strategy to moderate customer acquisition in select pockets and focus on existing customers,” the bank’s recently appointed managing director Nitin Chugh said. Chugh took over from founder Samit Ghosh on December 1.

Ujjivan’s gross advances grew 46% to Rs 13,617 crore, with non-micro loan portfolio growing to 22% against 14% a year back. Asset quality remained stable with gross non-performing assets ratio at 0.9% and net NPA ratio at 0.4%.

“We remain focused on building a technology led mass market retail bank with a focus on differentiated digital and service experience and financial inclusion covering the under-served and unserved,“ Chugh said.

The bank which is reporting earnings for the first time since listing as an independent entity, said deposits grew to Rs 10,656 crore, up 98 percent from a year earlier.

Ujjivan SFB was listed on the stock exchanges on December 10 at 59% premium over the issue price of Rs 37 a share. The stock closed Wednesday 2.8% higher at Rs 51.35 on BSE.

[“source=economictimes”]