Conference Call with Ujjivan Small Finance Bank Management and Analysts on Q4FY22 Performance and Outlook. Listen to the full earnings transcript.
Ujjivan Small Finance Bank declares Q4FY22 result: Turns profitable with net profit of Rs 127 crore; RoA at 2.3%/ RoE at 18.7%. Strong Business volumes with highest-ever disbursement; deposits up 39% YoY Continued improvement in collections; Mar’22 collections at 100% Significant improvement in asset quality; NNPA at 0.6%; PAR at 9.6% Summary of Ujjivan Small Finance Bank Business Performance – Q4 FY 2021-22 Gross advances at Rs 18,162 crore up 20% YoY and 10% QoQ Highest ever disbursements during the quarter – Rs 4,870 crore up 14% YoY and 1% QoQ Non Micro Banking contributes 32% of total portfolio as against 28% in Mar’21 Secured Advances stand at 30% of the total portfolio as on Mar’22 as against 27% in Mar’21 Total provision is Rs 1,330 crore covering 7.3% of gross advances as on 31st Mar’22 (includes Rs 250 crore floating provisions) GNPA/ NNPA declined to 7.1% / 0.6% as of Mar’22 against 9.8% / 1.7% respectively as of Dec’21; Rs 271 crore written-off in Q4FY22; Provision coverage ratio as on Mar’22 is 92% (including floating provisions) Substantial reduction in restructured book; constitutes 4.7% of gross advances with provision cover of 47% Deposits at Rs 18,292 crore as of Mar’22 up by 39% YoY; Retail deposits at 54% of total deposits against 48% as of Mar’21; CASA ratio at 27% in Mar’22 vs 21% in Mar’21. Retail banking CASA grew 141% YoY crore contributing 77% to total CASA; healthy retail liability customer acquisition - 2.7 lakh customers added during the Q4FY22 Net Interest Income of Rs 544 crore in Q4FY22; Net interest margin at 10.1% in Q4FY22 against 7.9% in Q4FY21 Operating expenses to average assets at 7.7%; Cost to Income ratio at 66% in Q4FY22 vs 68% in Q4FY21 PPoP at Rs 217 crore vs Rs 155 crore in Q4FY21; PAT of Rs 127 crore vs Rs 136 crore YoY Collections at 100% in Mar’22, further improving from 97% in Dec’21 Portfolio at risk continues to decline; 9.6% as of Mar’22 vs 14.9% as on Dec’21 Capital adequacy ratio at 19.0% with Tier-1 capital at 17.7%; Liquidity coverage ratio at 152% as of Mar’22 Summary of Ujjivan Small Finance Bank Business Performance – FY 2021-22 Disbursement for FY22 at Rs 14,113 crore PPOP of Rs 590 crore in FY22 against Rs 801 crore in FY21 Net loss of Rs 415 crore in FY22 Net Interest Income of Rs 1,774 crore in FY22 against Rs 1,729 crore in FY21 Net Interest Margin at 8.8% in FY22 against 9.5% in FY21 Cost to Income ratio increased to 72% in FY22 from 61% in FY21 Mr. Ittira Davis, MD & CEO, Ujjivan Small Finance Bank said, “Q4FY22 has indeed been a strong quarter with the Bank completing the turnaround we envisaged under our 100-day plans put to execution beginning Sep’21; Q4 marks business turning profitable. This was possible on back of strong business performance coupled with persistent efforts on collections. On disbursement side, we surpassed our previous best (Rs 4,809 crores in Q3FY22) and disbursed Rs 4,870 crores, improving our loan book to Rs 18,162* crore. Our deposit book continues strong growth – up 39% YoY driving credit to deposit ratio to 99% which is another achievement for Ujjivan. Retail deposits and CASA contribute to 54% and 27% of total deposit; implying increasing granularity of deposit book. PAR continues to decline, currently at 9.6%* down from 14.9% as on Dec’21. This is largely due to healthy book and strong focus on collections. We continue to hold strong provisioning buffers on our book with PCR at 92%, resulting NNPAs to 0.6%. Our strategy to build granular liability base will remain our prime focus going ahead along with focus on enhancing our digital capabilities which in turn is improving business and productivity levels. We believe that recent business challenges have made us stronger to ready to capitalise on opportunities ahead us.” Result PDF
Conference Call with Ujjivan Small Finance Bank Management and Analysts on Q3FY22 Performance and Outlook. Listen to the full earnings transcript.
Ujjivan Small Finance Bank declares Q3FY22 result: Strong overall improvement in business under 100-day plan Disbursement up 120% YoY. Deposits up 34% YoY Secular improvement in collections. Dec’21 collections up at 97% NNPA almost halfto 1.7%; PAR reduced to 14.9% Gross advances at Rs 16,463 crore up 21% YoY and 13% QoQ Strong disbursements during the quarter – Rs 4,809 crore up 120% YoY and 54% QoQ Non Micro Banking contributes 33% of total portfolio as against 27% in Dec’20 Secured Advances stand at 31% of the total portfolio as on Dec’21 as against 25% in Dec’20 Total provision is Rs 1,549 crore covering 9.4% of gross advances as on 31st Dec’21 (includes Rs 250 crore COVID floating provisions) GNPA/ NNPA declined to 9.8% / 1.7% as of Dec’21 against 11.8% / 3.3% respectively as of Sep’21; write-off of Rs 152 crore in Q3FY22; Provision coverage ratio as on Dec’21 is 84% (including floating provisions) Total restructured book is 7.5% of gross advances with provision coverage of 44% Deposits at Rs 15,563 crore as of Dec’21 up by 34% YoY; Retail deposits at 53% of total deposits against 48% as of Dec’20; CASA ratio at 26% in Dec’21 vs 18% in Dec’20. Retail banking CASA grew 151% YoY to Rs 3,031 crore, contributes 74% of total CASA; healthy retail liability customer acquisition - 2.1 lakh customers added during the Q3FY22; 5.0+ lakh in 9MFY22 Net Interest Income of Rs 454 crore in Q3FY22; Net interest margin at 9.1% in Q3FY22 against 9.7% in Q3FY21 Operating expenses to average assets at 7.9%; Cost to Income ratio at 74% in Q3FY22 vs 62% in Q3FY21 PPoP at Rs 141 crore vs Rs 71 crore in Q2FY22; PAT of (Rs 34) crore vs (Rs 279) crore YoY Consistent improvement in collections with Dec’21 collection efficiency (against due for the month) at 97% up from 95% in Sep’21; Dec’21 collection efficiency for ex-GNPA/ NDA book was at 99% Improving collections has led to Portfolio at risk declining to 14.9% as of Dec’21 from 18.9% as on Sep’21 Capital adequacy ratio at 19.1% with Tier-1 capital at 17.7%; Liquidity coverage ratio at 138.6% as of Dec’21 Mr. Ittira Davis, MD & CEO, Ujjivan Small Finance Bank said, “We are very happy with our efforts yielding in improved performance. Last couple of months have been challenging due to internal and external issues, despite that we focussed on business and streamlined processes which lead to improved portfolio quality, higher business volumes and reduced attrition, in-line with our 100-day plan. We continue to attract good talent and over last few months have strengthened the leadership team further; our CIO and Head – Digital Banking have already joined while CFO and Head – Internal audit are joining in coming months. Our objectives remain intact and as mentioned on numerous occasion we will continue to strive towards building a diversified asset book and granular liability base. This will be assisted by our robust and evolving digital infrastructure coupled with improving productivity levels. After covering majority of employees under our vaccination drive, we are now helping customers; in a short period of 5 months, we have covered over 60,000 beneficiaries through our branches under ‘Sanjeevani Kavach’ program which we believe is a unique and a necessary step to support our customer base. In last few weeks, Covid cases have risen again leading to a widespread 3 rd wave. Fortunately, the business has not witnessed any major disruption; monthly collections continue to improve even in Jan’22. This was also facilitated by our learnings from the past two waves. Q4 business volumes have started on a steady note and we look forward to step-up the all-round performance delivered in Q3FY22 while we continue to monitor the ground situation closely.” Result PDF