Ujjivan Small Finance Bank Ltd on Friday reported a 48% year-on-year decline in net profit to ₹121.7 crore for the September quarter, down from ₹233 crore a year earlier, even as the figure beat CNBC-TV18’s estimate of ₹117 crore on steady margins and improved asset quality.
Shares of the lender fell about 1% on the BSE after the earnings announcement.
Net interest income (NII) came in at ₹921.7 crore, slightly higher than the expected ₹917 crore, but lower than ₹944 crore a year earlier.
Asset quality improved sequentially, with gross non-performing assets (NPA) at 2.45% versus 2.52% in the previous quarter, while net NPA declined to 0.67% from 0.70%.
During the quarter, total deposits rose to ₹39,211 crore, up 15.1% year-on-year and 1.5% quarter-on-quarter. CASA deposits increased 22.1% year-on-year and 14.9% sequentially to ₹10,783 crore, pushing the CASA ratio to 27.5%. The cost of funds eased to 7.3% from 7.6% in the prior quarter.
Ujjivan recorded its highest-ever quarterly disbursements at ₹7,932 crore, a rise of 47.6% year-on-year and 21.3% quarter-on-quarter. The secured loan book expanded to ₹16,173 crore, forming 47% of total advances, compared with 35% a year earlier.
Interest income rose 6.7% sequentially to ₹1,682 crore, while NII grew 7.7% quarter-on-quarter, reversing a three-quarter declining trend. Pre-provision operating profit (PPoP) increased 9.6% to ₹395 crore, and profit after tax (PAT) was up 18.2% sequentially.
Collection efficiency in micro-banking averaged 99.48%, while slippages dropped to ₹278 crore. The bank’s customer base reached 98.8 lakh, up 8% year-on-year and 2.1% quarter-on-quarter.
