Ujjivan Small Finance Bank: These services will not be available on net banking, mobile app on 15 August. Details here

The reason for this is the pre-determined maintenance work of the bank’s net banking facility. “Owing to scheduled maintenance activity our UPI, Mobile Banking, Internet Banking, Business Net Banking, Digital FD creation will be unavailable from 02.00 AM on 15/08/2022 to 05.00 AM on 15/08/2022. We sincerely regret for any inconvenience caused,” the SMS read which was sent by Ujjivan Small Finance Bank.

Meanwhile, Ujjivan Small Finance Bank reported its highest-ever quarterly profit in June 2022 quarter at ₹203 crore on higher interest income, fall in bad loans as well as strong loan disbursement.

The Bengaluru-based Small Finance Bank (SFB) had posted a net loss of ₹233 crore in the same quarter a year ago. Compared sequentially, the net profit was up by 60.4 percent from ₹126.52 crore in the quarter ended March 2022.

This is the highest-ever quarterly net profit, the bank said, adding there is continued traction on the collections side at about 99 percent.

Bank’s total income during the April-June period of 2022-23 rose by 40 percent to ₹1,000.42 crore, as against ₹714.67 crore in the same quarter of 2021-22, Ujjivan SFB said in a regulatory filing.

The interest earned by the lender jumped by 41.1 percent to ₹905.37 crore in Q1 FY23 as against ₹641.66 crore in Q1FY22. While other income grew to ₹95.1 crore as against ₹73 crores.

Net interest income — interest earned minus interest expended — rose by 56 percent from a year ago to ₹600 crore during the quarter.

There was significant reduction in bad loan proportion as the bank cut down the gross Non-Performing Assets (NPAs) to 6.51 per cent of the gross advances by the end of Q1 FY23 from 9.79 per cent in the year-ago period.

In absolute value, the gross NPAs or bad loans stood at ₹1,146.71 crore as against ₹1,374.98 crore recorded at the end of June 2021.

Net NPAs shrank to 0.11 per cent (equivalent to ₹17.80 crore) from 2.68 per cent ( ₹348.73 crore).

This helped in substantial reduction in provisioning and contingencies requirement for June 2022 quarter to ₹39 lakh ( ₹0.39 crore) as against ₹473.21 crore in the first quarter of FY22.

Ujjivan SFB said the June quarter witnessed the strongest disbursement in the bank’s history ₹4,326 crore, up by 230 percent from a year ago period. Deposits rose by 35 percent from a year ago ₹18,449 crore.

Of this, retail deposits jumped by 65 percent to ₹10,761 crore.

The bank said it is building up new customer acquisition with 34 percent of the loans to new customers, up from 24 percent in Q4 FY22. It also acquired 1.9 lakh new customers in Q1 FY23. It stood at 1.5 lakh in Q4 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, said.

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

“This is largely due to normalization 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 said.

Ujjivan SFB said it is diversifying its other sources of income and will ramp up the current line of products over the medium term. These include insurance products of life, general, health segment as well as relevant benefits for target segments.

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