Ujjivan Small Finance Bank Q2 net profit dips ~23% y-o-y

24 Oct 2024 , 07:47 PM

Ujjivan Small Finance Bank reported a mixed Q2 FY25 performance, with net profit down 23% to ₹233 Crore from ₹328 Crore a year ago. However, its net interest income (NII) increased by 9.5%, reaching ₹944 Crore.

The bank’s net interest margin (NIM) remained strong at 9.2%.

In September 2024, the bank’s secured loan book increased to 34.9% from 31.3% in June 2024, contributing to a 14% YoY growth in gross loan book to ₹30,344 Crore.

Asset quality was constant, with gross non-performing assets (GNPA) at 2.5% and net NPAs at 0.6%.

Provisions increased to ₹151 Crore, from ₹110 Crore in the previous quarter and ₹47 Crore YoY.

The bank declared a write-off of ₹140 Crore in the quarter.

Deposits increased 17% YoY to ₹34,070 Crore, with current account savings account (CASA) deposits increasing by 26% YoY. The CASA ratio increased significantly to 25.9% from 25.6% the previous quarter. Quarterly disbursements were ₹5,376 Crore, a 6% decrease year on year but a 2% increase quarter on quarter.

Ujjivan maintained a 60% cost-to-income ratio and generated a pre-provision operating profit (PPoP) of ₹461 Crore. Return on assets (ROA) was 2.2%, and return on equity (ROE) was 15.7%.

The bank’s capital adequacy ratio remained strong, at 23.4%, with Tier-1 capital at 21.6%. 

Ujjivan’s liquidity coverage ratio (LCR) averaged 130% in September 2024, indicating effective liquidity management during the quarter.

For feedback and suggestions, write to us at [e-mail]