Ujjivan Small Finance Bank net loss widens to Rs 274 crore on poor asset quality, higher provisions

According to a merchandise issued by the bank, its disbursement accrued to Rs 3,122 crore successful the reporting quarter, higher by 114% on-year and 138% connected a sequential basis.

Ujjivan Small Finance Bank (SFB) connected Monday reported a nett nonaccomplishment of Rs 274 crore for the 4th ended September 30, owing to mediocre plus prime and higher provisions. The lender had logged a nett nonaccomplishment of Rs 233 crore successful the erstwhile quarter. It, however, had reported a nett net of Rs 96 crore a twelvemonth ago.

During the 4th nether review, Ujjivan SFB’s gross non-performing plus ratio (NPA) roseate sharply to 11.80% from 9.79% arsenic connected July-end and 0.98% a twelvemonth ago. Net non-performing assets roseate to 3.29% arsenic connected September-end from 2.68% a 4th agone and 0.14% successful the corresponding 4th of the erstwhile year.

Owing to deteriorating plus quality, Ujjivan SFB’s provisions roseate to Rs 436.88 crore successful the reporting quarter, little than Rs 473.21 crore successful the erstwhile quarter.

“We person done large restructuring and taken accelerated recognition provisions during the quarter. We believe, taxable to imaginable 3rd question of Covid, our GNPA has peaked retired and volition gradually trim hereon,” said Martin PS, serviceman connected peculiar work astatine Ujjivan Small Finance Bank.

In the reporting quarter, the lender has restructured full loans amounting to Rs 962 crore, taking the full quantum of restructured loans to Rs 1,480 crore. It has made Rs 504-crore proviso against its restructured publication arsenic connected September-end, arsenic per its capitalist presentation.

According to a merchandise issued by the bank, its disbursement accrued to Rs 3,122 crore successful the reporting quarter, higher by 114% on-year and 138% connected a sequential basis. Its gross advances, arsenic connected September-end, stood astatine Rs 14,514 crore, up 5% connected year.

“We proceed to absorption connected diversification with non-micro banking publication contributing 34% (as against 32% arsenic of June’21) to the full plus portfolio. We person acquired 1.8 lakh caller retail customers during the quarter; retail deposits proportionality accrued to 52% of the full deposits, arsenic against 48% arsenic of June’21,” said Martin P.S.

Net involvement income—difference betwixt involvement earned and expended—increased 17% connected a yearly ground to Rs 391 crore successful the reporting quarter, portion the nett involvement borderline stood astatine 8.1%, little than 10.2% a twelvemonth ago.

Total deposits roseate 31% on-year to Rs 14,090 crore arsenic connected September-end, erstwhile the superior adequacy ratio stood astatine 22.2%, little than 31% a twelvemonth ago.