Ujjivan Financial logs net profit of Rs 45 crore

Ujjivan Financial logs net profit of Rs 45 crore

Samit Ghosh

Ujjivan Financial Services, the holding company and promoter of its 100% subsidiary Ujjivan Small Finance Bank on Wednesday reported 54.26% increase in net profit for the third quarter ended December 31, 2018, at Rs 45.2 crore.

The company's net profit in the corresponding quarter of the last fiscal stood at Rs 29.3 crore. Net interest income of the company stood at Rs 255 crore in the third quarter, an increase of 30.2% over the corresponding quarter of the last fiscal.

Total income of Ujjivan stood at Rs 512.6 crore, an increase of 33.4% over the third quarter of FY18. Samit Ghosh, MD and CEO of Ujjivan Small Finance Bank said, “The quarter witnessed improved growth and building of the business momentum. Post Q2-FY19, growth in the micro-banking vertical has picked-up. We expect the overall growth momentum to continue, leading to 30-35% AUM growth in FY19. We continue to improve our retail deposits business, driven by the expansion of our branch network and our continuous marketing efforts. Retail deposits stand at 36% of total deposits."

Ujjivan's Gross NPAs for the third quarter stood at 1.4% and Net NPAs at 0.3% against 4.2% and 1.0%, respectively in the corresponding quarter of the last fiscal.

Ittira Davis, MD and CEO of Ujjivan Financial Services said, “Consolidated Net Interest Income increased by 30% against the third quarter of the last fiscal. Stable cost of funds and interest rate hike for Group Loans which we took in September 2018 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%."

Ujjivan Small Finance Bank serves over 43.7 lakh customers through 522 branches and 14,305 employees spread across 223 districts and 24 states in India. Its Gross Loan Book stands at Rs 9,349 crore and it has 464 banking outlets with a deposit base of Rs 5,376 crore as of December 31, 2018.