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Ujjivan Financial surges 10% post September quarter results

The stock soared 10% to Rs 377 after the company said its consolidated net loss declined to Rs 11.95 crore in Q2 from Rs 74.94 crore in Q1.

SI Reporter  |  Mumbai 

Micro lenders turn the page with banking licences

soared 10% to Rs 377 on the BSE in intra-day trade after the company announced that its consolidated net loss declined to Rs 11.95 crore in September quarter (Q2FY18) from Rs 74.94 crore in June quarter (Q1FY18).

“The net loss during the quarter declined on account of moderate growth in revenue and consequently higher net interest income (interest earned minus interest expended) and lower credit costs in Q2FY18,” said in a statement.

NII during the quarter stood at Rs 165 crore, an increase of 19% over Q1FY18 and a decrease of 12.5% over Q2FY17. Net interest margin (NIM) improved to 10.55% in Q2FY18 from 9.23% in Q1FY18. It was 13.02% in Q2FY17.

The gross non-performing assets (NPA) ratio stood at 4.99% and net NPA at 1.38% in Q2FY18 against 6.16% and 2.30% respectively in Q1FY18, it added.

"We have significantly reduced our losses in this quarter due to lower credit cost compared to the previous quarter and also because business volumes returned to normal levels. We expect credit cost to taper off to normal levels in the next two quarters," Ujjivan Small Finance Bank managing director and CEO Samit Ghosh said.

At 01:19 PM; the stock was up 9% at Rs 374 on the BSE, as compared to 0.18% rise in the S&P BSE Sensex. The trading volumes on the counter jumped more than five-fold with a combined 9.14 million shares changed hands on the NSE and BSE so far.

First Published: Fri, November 03 2017. 13:22 IST
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