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Bangalore-based Ujjivan Financial Services saw a consolidated net profit of Rs 293 million for the quarter ended December 2017. This is a sharp fall of nearly 34% as against Rs 439 million in year-ago period.
Gross loan book grew by 7.71% to Rs 70.95 billion, while disbursements grew by 28.35% to Rs 21.34 billion as compared to December 2016.
The asset quality improved over the last September quarter with gross non-performing assets (GNPA) dropping to 4.24% as against 4.99% in September 2017. However, this is a steep rise against GNPA of 0.25% in December 2016.
“Loan book was impacted by demonetisation. While the effects are fading and the customers have began to repay regularly, there is a lag effect of the previous quarters," said Sudha Suresh, Managing Director and chief executive, Ujjivan Financial Services.
The company’s new business from January 2017 is at 99.7% collection efficiency and constitutes 78% of the portfolio. Suresh added that the small finance bank is back to its pre-demonetisation efficiency levels.
The provision coverage ratio stood at 76.3% for the quarter under review.
The bank saw an addition of 188,000 new borrowers during the quarter under review, raising total borrower base to 3.7 million.