Ujjivan Fin trims Q2 loss to Rs 12 cr

Ujjivan Financial Services Limited on Thursday reported Rs 11.95 crore net loss in the second quarter of this fiscal, compared with a net loss of Rs 74.94 crore in the previous quarter.

Total income stood at Rs 378.03 crore, an increase of 5.41% compared to Rs 358.63 crore of the first quarter, and 5.89% in the same quarter a year ago. NII stood at Rs 164.57 crore, an increase of 19.07% over the first quarter and a decrease of 12.48% over Q2.

Samit Ghosh, MD and CEO of Ujjivan Small Finance Bank said, "We have significantly reduced our losses in this quarter compared to the previous quarter due to lower credit cost and business volumes returning to normal levels. We expect credit costs to taper off to normal levels in the next two quarters and with business growth, we are on our way to a complete turnaround."

He added that the collection efficiency continues at 99.7% for all new business from January till September.

Sudha Suresh, MD and CEO Ujjivan Financial Services said, "With the scheduled bank status, the company has been able to raise funds at competitive rates additionally through Certificate of Deposits (Rs 614.5 crore). We expect to leverage further on this and other optimal sources of funding in the next two quarters."

She added that NIM for the bank has increased to 10.20% from 8.90% Q-o-Q. "Cost to income has also reduced significantly during the quarter by 9.18% due to business growth ably supported by flat operating cost & reduction in the cost of funds. We expect this to decline further with expected growth in business".