Ujjivan Small Finance Bank announced Q1FY23 results: Gross advances at Rs 19,409 crore up 38% YoY and 7% QoQ Highest ever disbursements for Q1 – Rs 4,326 crore up 230% YoY Total provision is Rs 1,260 crore covering 6.5% of gross advances as on 30th Jun’22 (includes Rs 220 crore floating provisions; balance Rs 30 crore of floating provision has been moved to other provisions to include in Tier-II capital) Continued traction on Collections side at ~99% in Jun’22 Portfolio at risk continues to decline; 7.9% as of Jun’22 vs 9.6% as on Mar’22 GNPA/ NNPA declined to 5.9% / 0.1% as of Jun’22 against 7.1% / 0.6% respectively as of Mar’22; Rs 79 crore written-off in Q1FY23; Provision coverage ratio as on Jun’22 is 98% (including floating provisions of Rs 220 crore) Substantial reduction in restructured book; constitutes 3.4% of gross advances with provision cover of 59% Deposits at Rs 18,449 crore as of Jun’22 up by 35% YoY; Retail deposits at 58% of total deposits against 48% as of Jun’21; CASA ratio at 28% in Jun’22 vs 20% in Jun’21. Retail banking CASA grew 104% YoY crore contributing 78% to total CASA; healthy retail liability customer acquisition. Net Interest Income of Rs 600 crore in Q1FY23; Net interest margin at 9.6% in Q1FY23 against 8.0% in Q1FY22 Operating expenses to average assets at 7.1%; Cost to Income ratio at 61% in Q1FY23 vs 65% in Q1FY22 PPoP at Rs 271 crore vs Rs 161 crore in Q1FY22; PAT of Rs 203 crore vs Rs (233) crore YoY Capital adequacy ratio at 20.03% with Tier-1 capital at 18.70%; Liquidity coverage ratio at 182% as of Jun’22 Mr. Ittira Davis, MD & CEO, Ujjivan Small Finance Bank said, “Q1FY23 marks a perfect all-round great beginning to FY23. We are very pleased with the outcome of our efforts have been successfully achieved as we stabilised our business in Q3, turned-around in Q4, and this quarter marks growth and profitability. On disbursement side, it was strongest ever first quarter reaffirming strong credit demand. We disbursed ? 4,326 crores improving our loan book to ? 19,409* crore up by 38% Y-o-Y. Our deposit book continues strong growth – up 35% Y-o-Y. Retail deposits and CASA contribute to 58% and 28% of total deposit. PAR continues to improve, currently at 7.9%* vs. 9.6% as on Mar’22. This is largely due to normalisation of slippages and strong focus on collections. We continue to hold strong provisioning buffers on our books with PCR at 98%, resulting into NNPA of mere 0.1%. Our strategy to build granular liability base will remain our prime focus going ahead along with enhancing our digital capabilities which is resulting in improved business and productivity levels. We believe that recent business challenges have made us stronger and ready to capitalise on the opportunities ahead.” Result PDF
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