Ujjivan posts Rs 44 crore net profit in Q2

Ujjivan posts Rs 44 crore net profit in Q2

Samit Ghosh, MD, and CEO of Ujjivan Small Finance Bank

Ujjivan Financial Services Limited, the holding company, and promoter of its 100% subsidiary Ujjivan Small Finance Bank, on Wednesday reported a consolidated net profit of Rs 44.3 crore for the second quarter ended September 30, 2018. The company had posted a net loss of Rs 12 crore in the corresponding quarter of the last year.

Its net interest income for the second quarter stood at Rs 239.3 crore, an increase of 45.4% over the same period last year. Ujjivan's total income for the second quarter stood at Rs 467.4 crore, an increase of 23.6% over the corresponding quarter last year.
Its GNPA (Gross non-performing assets) stood at 1.9% and NNPA (net non-performing assets) at 0.3% in the second quarter against 5% and 1.4%, respectively in the second quarter of last fiscal.

Samit Ghosh, MD, and CEO of Ujjivan Small Finance Bank said, “The quarter witnessed improved growth and building on the business momentum. We expect the growth to pick-up in H2 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 31%. The quarter also witnessed stressed liquidity in the money market."

He added that Ujjivan was not impacted because of conservative asset and liability structure of relatively short-term assets and longer-term liabilities inherited as a microfinance institution.

"In order to further strengthen our balance sheet we are raising by end of this financial year, $50 million of Tier-II capital from IFC which will serve a dual purpose of providing long-term funding and improve our capital adequacy. 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 and are working out various options which are tax efficient and protects the interest of our shareholder."

Its loan book stood at Rs 8,317 crore, growth of 24.7% over the second quarter of last fiscal.
Ujjivan Small Finance Bank serves over 40.3 lakh customers through 462 branches and 13,169 employees spread across 223 districts and 24 states across the country.

Shares of the bank closed at Rs 217.50 on Wednesday on the BSE, up 3.03% from the previous close.

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