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.
One subscription. Two world-class reads.
Already subscribed? Log in
Subscribe to read the full story →*Subscribe to Business Standard digital and get complimentary access to The New York Times
Smart Quarterly
₹900
3 Months
₹300/Month
SAVE 25%
Smart Essential
₹2,700
1 Year
₹225/Month
SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months
Super Saver
₹3,900
2 Years
₹162/Month
Subscribe
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors
Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share
Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor
Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements
Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app
SAVE 25%