Ujjivan Small Finance Bank Q1 net jumps two-fold to Rs 94 cr

Ujjivan Small Finance Bank (SFB) on Friday reported more than two-fold jump in its net profit at Rs 94.4 crore in the first quarter ended June 2019, helped by healthy growth in advances and improvement on stressed assets front.

The bank had posted a net profit of Rs 46.10 crore during the corresponding April-June quarter of the previous fiscal ended March 2019.

Net interest income rose by 10.8 per cent from a year ago to Rs 352.50 crore during the quarter under review of this fiscal, Ujjivan SFB said in a release.

Net interest margin was slightly down at 10.5 per cent for the quarter as against 10.8 per cent a year ago.

Gross advances of the bank were up by 51.3 per cent at Rs 11,783 crore in the reported quarter.

"We have started the year on a very positive note with PAT (profit after tax) at Rs 94 crore, registering a growth of 105 per cent on the year. All our asset businesses have contributed well to gross advances growing 51 per cent. Our disbursement for the quarter is up by 41 per cent despite being seasonally weak quarter for the us historically," said Samit Ghosh, MD and CEO, Ujjivan Small Finance Bank.

Ujjivan SFB said micro-banking portfolio continue to show significant traction growing by 37 per cent.

"One of the landmarks achieved this quarter was Affordable Housing crossing Rs 1,000 crore in terms of gross advances, up 141 per cent. Our total deposits have grown to Rs 7,956 crore from Rs 3,803 crore year ago quarter, largely driven by retail deposits which forms 43 per cent of total deposits as against 20 per cent in first quarter of FY19. Cost to income dipped significantly on account of increased top line and strong cost control measures," Ghosh said.

The lender improved on its asset quality with the gross non-performing assets (NPAs) falling to 0.8 per cent in Q1FY20 from 2.7 per cent a year ago. Net NPAs remained stable at 0.3 per cent.

"In regards to RBI directive of listing the Bank by January 2020, our board, under the prevailing circumstances, has approved listing via IPO route subject to market conditions and other external factors. We are preparing for the process and will list by the stipulated time," Ghosh said.

Ujjivan Financial Services (Ujjivan), a listed entity on exchanges, is the holding company of the SFB and promoter of its 100 per cent subsidiary (Ujjivan SFB).

Ujjivan has reported a net profit of Rs 83 during the quarter, up by nearly 80 per cent from year ago's Rs 46.3 crore. Total income grew by 51 per cent to Rs 689.40 crore.

"Ujjivan SFB (USFB) is required to be listed by January 31, 2020. Under the prevailing circumstances, the board of USFB in their meeting held on July 30, 2019 has approved a proposal for an initial public offering (IPO) of its equity shares, subject to receipt of requisite regulatory approvals and prevailing market conditions," said Ittira Davis, MD & CEO, Ujjivan Financial Services said.

Stock of Ujjivan closed 0.70 per cent down at Rs 285.35 on BSE.