Ujjivan SFB reports Q3 net profit at at Rs 293 crore

Ujjivan Small Finance Bank on Thursday reported a net profit of Rs 293 crore for the December quarter against Rs 34 crore loss in the year ago period, backed by robust growth in net interest income and write-back of bad loan provisions.

The bank's operating profit jumped 153% at Rs 389 crore against Rs 154 crore earlier.

The lender reported a negative provisions of Rs 22 crore which is reflection of provisions write-back on net basis in line with improvement in asset quality. Provisions were at Rs 200 crore in the year ago quarter.


"The third quarter continued to be a good one in multiple ways as we pulled back from a rough patch. A lower credit cost and higher bad-debt recoveries added to the tailwind," managing director Ittira Davis said.

"Going ahead while credit cost would normalise, our underlying business remains strong and poised to grow at a healthy rate," he said.

The bank's gross non-performing assets ratio was at 3.4% at the end of December as compared with 4.4% three-months back. Net NPA remained flat at 0.05%. It wrote-off loans worth Rs 179 crore in the quarter. Provision coverage ratio was at 99%.

Ujjivan's gross loan book rose 33% year-on-year to Rs 21,895 crore. Deposit grew 49% to Rs 23203 crore. Retail deposits as a share of total deposits rose to 62% against 53% a year back. The current and savings account (CASA) ratio was at 26.2%, a tad lower than last time's 26.5%.

The bank said that it received Reserve Bank of India's approval for the proposed reverse merger of its holding company Ujjivan Financial Services to itself. "The process is on track and we aim to complete the reverse merger by September 2023," the bank said