Ujjivan Small Finance Bank (SFB) has reported a hike in the net profit at Rs 96 crore for September quarter. In the same quarter last year, its net profit was posted at Rs 93 crore whereas, in the June quarter, the profit was Rs 55 crore.
From Rs 729.36 crore, the total income increased to Rs 818.01 crore during July-September 2020-21. Net interest surged 21 per cent to Rs 470 crore. However, income from other sources declined.
In terms of assets, the bank witnessed a gain in gross non-performing assets (NPAs) at 0.98 per cent of gross advances as on September 30, 2020, as compared to the previous year. The net NPAs or bad loans have shown improvement at Rs 19.08 crore against Rs 42.53 crore.
Chief executive Nitin Chugh stated that they have utilised this period to extend the liability business which is clearly observed from the increased traction in customer acquisition, and better retail deposits.
“We are pleased with the collection trends as October 2020 collection efficiency reached 93 per cent…We believe our collections are amongst the best in the industry. We continue to invest in the business and take proactive actions towards creating a strong and sustainable franchise,” he added
Over 5.1 lakh deposit accounts have been opened from April to September by the bank, whereas, retail deposits have increased to 49% of total deposits as against 42% from previous year and it stood at Rs 10,743 crore. Among others, it has reported around 8 per cent growth on the year in the gross advances at Rs 13,890 crore by the end of September.
The net interest margin of the bank dips a bit to 10.2% in the second quarter against 10.8% a year back, with the increase in credit cost during the Covid-19 pandemic-related stress.