Ujjivan Small Finance Bank Q2 Results: Profit up marginally, collection efficiency improves

KOLKATA: Ujjivan Small Finance Bank on Saturday reported a marginal rise in net profit at Rs 96 crore for the September quarter against Rs 93 crore in the year ago period, with its collection efficiency improving to 93%.

Chief executive Nitin Chugh said with the business environment opening up gradually, the bank disbursed Rs 1,458 crore in the second quarter, reaching close to half of the pre-Covid levels. Gross advances grew 8% year-on-year to Rs 13,890 crore with non micro-banking portfolio rising to 24% against 21% in the same period.

The bank's net interest margin dips a tad to 10.2% in the second quarter against 10.8% a year back, with the rise in credit cost amid the pandemic-related stress.


"We utilised this period to ramp-up our liability business which is evident from the increased traction in customer acquisition, improving retail deposits and CASA," Chugh said.

The bank opened 5.1 lakh deposit accounts between April and September while retail deposits have now grown to 49% of total deposits as against 42% a year back. Deposits stood at Rs 10,743 crore.

The bank's gross non-performing assets ratio was at 1% against 0.9% while the net ratio was at 0.1% compared with 0.3%. It has not recognised any NPA since August 31, in line with the Supreme Court order.