Ujjivan SFB Q1 Results: PAT surges 60% to Rs 324 crore; NII up 32%

Ujjivan Small Finance Bank on Thursday reported a 60% jump in net profit for the quarter ending June 30, riding steady business expansion despite the period being a lean season.

The net profit for the quarter was Rs 324 crore against Rs 203 crore in the year ago period.

Net interest income rose 32% year-on-year to Rs 793 crore, while net interest margin was down 40 basis points to 9.2% due to the lagged effect of deposit rate rise.


The lender's operating profit was Rs 458 crore, up 52% from a the ago.

"FY24 has started on a very strong note as we hit another highest ever profit figure. The growth has come on the strong platform built during FY23. Our disbursement has been strong, despite Q1 being seasonally the weakes

quarter," Managing Director Ittira Davis said.

The lender saw its gross loan book growing 30% year-on-year to Rs 25,326 crore at the end of June.

"During the quarter, we consciously reduced the excess liquidity, which was driving negative carry and pulling our NIM down," Davis said. "Our credit cost for the quarter was minimal on the back of strong collections. We remain confident of our sub-100 bps credit cost for FY24," he said.

Gross non-performing assets stood at 2.4% against 5.9% a year back. Net NPA was at 0.06%.

The bank's deposit base rose 45% year-on-year to Rs 26660 crore. The ratio of current and savings account to total deposits rose 27% to 24.6% at the end of the reporting period.