Ujjivan Small Finance Bank share slipped 6.48 per cent at Rs 32.32 a piece on the BSE in Friday’s intraday trade. This came after the small finance bank reported a 64 per cent year-on-year decline in net profit, which stood at Rs 103 crore for the third quarter ending December 2024 (Q3FY25), compared to Rs 300 crore in the same period last year. This drop was attributed to an increase in provisions for bad loans.
The bank’s total income, however, rose to Rs 1,763 crore in Q3FY25, up from Rs 1,655 crore in Q3FY24.
In a regulatory filing, the bank announced plans to seek approval from the Reserve Bank of India (RBI) for transitioning to a universal bank, following approval from its board.
Interest income for the quarter grew to Rs 1,591 crore, up from Rs 1,471 crore in the previous year’s third quarter. However, the bank’s asset quality worsened, with gross non-performing assets (NPAs) rising to 2.68 per cent of gross advances, compared to 2.18 per cent in Q3FY24. Net NPAs also increased to 0.56 per cent from 0.17 per cent a year earlier.
Provisions excluding tax and contingencies surged to Rs 223 crore, compared to Rs 63 crore in the same quarter last year.
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The bank is implementing structural changes to its liability strategy, with a focus on affluent customer segments such as non-residents, corporate salary employees, and traders. It also plans to enhance its product offerings and customer base following the receipt of the AD-1 licence.
The Capital Adequacy Ratio of the bank stood at 23.90 per cent as of December 2024, slightly down from 24.37 per cent in the previous year.
On the equities front, Ujjivan Small Finance Bank share price has underperformed the market, falling 25 per cent in the last six months, while losing 40 per cent in the last one year. In comparison, the BSE Sensex has slipped 4.4 per cent in the last six months, while rising 7.8 per cent in the last one year.
Ujjivan Small Finance Bank has a total market capitalisation of Rs 6,378.26 crore. Its shares are listed at a price to earnings multiple of 6.88 and at an earning per share of Rs 5.03.
At 11:20 AM, the stock price of the company fell by 4.66 per cent at Rs 32.95 a piece on the BSE. By comparison, the BSE’s Sensex was up 0.28 per cent to 76,589.76 level.