Ujjivan Financial Services cut net loss to Rs 12 crore in Q2

Kolkata: Ujjivan Financial Services, the holding firm for Ujjivan Small Finance Bank, has booked net losses for the second consecutive quarter but managed to contain it to Rs 12 crore for the July-September period with heightened focus on recovery of unpaid dues.

"We are on our way to overcome the difficult period by the year end after absorbing the impact of demonetisation on our business environment," Ujjivan Small Finance Bank's managing director said Samit Ghosh told ET.

The firm had reported Rs 75 crore net loss in the June quarter.

Ghosh said the collection efficiency for new business from January improved to 99.7% while it was 96% cumulatively. "We have built a separate team for collecting overdues."

Its gross non-performing assets feel to 4.99% as on September 30, as against 6.16% a quarter back but it has written off loans worth Rs 89 crore in the quarter under review. Its gross Loan book grew just about 3% year-on-year to Rs 6,669 crore.

“We have significantly reduced our losses in this quarter compared to the previous quarter as we halved credit cost with business volumes returning to normal levels.
We expect credit costs to taper off to normal levels in the next two quarters," Ghosh said.

The company announced its financial results after market hours. Its share price closed almost flat at Rs 344.10 on BSE Wednesday.