Ujjivan SFB tumbles 4% as asset quality woes take a toll on Q2 nos

NEW DELHI: Shares of Ujjivan Small Finance Bank fell as much as 4 per cent Tuesday's trade as the private sector lender posted an on-year net loss of Rs 274 crore in the July-September period, primarily because of increased provisioning for bad loans.

The counter touched a low of Rs 165 versus the previous close of Rs 170.90 on the National Stock Exchange.

In the same period a year ago, Ujjivan had reported a net profit of Rs 96 crore. On a sequential basis, however, the beleaguered lender’s net loss climbed from Rs 233 crores in April-June, an exchange filing showed.


For the quarter under review, net interest income plummeted to Rs 391 crore from Rs 470 crore a year ago.

The net interest margin also declined sequentially, registering a decline of 8.1 per cent in the September quarter as against 10.2 per cent a year ago, the release showed.

Provisions and contingencies skyrocketed to Rs 437 crore in the July-September period from Rs 98 crore a year ago. The gross non-performing asset ratio was at 11.8 per cent as of September 30 a whopping rise from 1.2 per cent a year ago and 9.79 per cent a quarter ago.