Conference Call with Ujjivan Small Finance Bank Management and Analysts on Q2FY22 Performance and Outlook. Listen to the full earnings transcript.
Highlights: Gross advances at Rs. 14,514 crore up 5% YoY and 3% QoQ Q2 FY22 Disbursement at Rs. 3,122 crore up 114% YoY and 138% QoQ Non Micro Banking contributes 34% of total portfolio as against 24% in Sep’20 Secured advances stand at 32% of the total portfolio as on Sep’21 against 23% in Sep’20 Total provision is Rs. 1,506 crore, 10.4% of gross advances as on 30th Sep’21 (including Rs. 250 crore floating provision) GNPA/NNPA at 11.8% / 3.3% as of Sep’21 against 1.0% / 0.1% (Proforma GNPA/NNPA at 1.2% / 0.3%) as of Sep’20; write-off of Rs. 63 crore in Q2 FY22; PCR at 75% as of Sep’21 Rs. 962 crore restructured in Q2 FY22. Total restructured loan book is 10.2% with 34% provision coverage Deposits at Rs. 14,090 crore up by 31% YoY Retail deposits at 52% of the total deposits against 49% as of Sep’20; CASA ratio at 22.5% vs 16.5% in Sep’20. Retail banking contributed to 76% of total CASA, growing 138% YoY Strong retail liability customer acquisition with 1.8 lakh customers added during the quarter Net Interest Income of Rs. 391 crore in Q2 FY22; Net interest margin at 8.1% in Q2 FY22 (10.2% in Q2 FY21) Operating expenses to average assets at 7.5% led by higher business and collection expenses and annual increments PAT of (Rs. 274) crore in Q2 FY22 against Rs. 96 crore in Q2 FY21 Collections improving with removal of lockdowns - Collection Efficiency at 95% in Sep’21 PAR reduced to 18.9% as on Sep’21 from 30.8% as on Jun’21 Capital adequacy ratio at 22.2% with Tier-1 at 20.7%; Liquidity coverage ratio at 151% as of Sep’21 Mr. Martin P S, Officer on Special Duty (OSD), Ujjivan Small Finance Bank said, “Q2 FY22 has shown significant traction in business momentum, over the previous quarter, with improvement in both – disbursements and collections. In Q2 FY22, we disbursed Rs. 3,122 crore as local level lockdowns eased. We continue to focus on diversification with Non-MicroBanking book contributing 34% (as against 32% as of Jun’21) to the total asset portfolio. We have acquired 1.8 lakh new retail customers during the quarter; retail deposits proportion increased to 52% of the total deposits, as against 48% as of Jun’21. The Bank has prepared a 100-day plan focusing on improving business volumes and asset quality as well as retaining talent; performance against the plan is being closely monitored by Bank Board and corrective actions are put in place, if required. With strict focus on collections, we have seen dual benefits of rising collection efficiency (95% in Sep’21) and reduced PAR (18.9% as of Sep’21 as against 30.8% as of Jun’21). Also, we have done major restructuring and taken accelerated credit provisions during the quarter. We believe, subject to potential third wave of Covid, our GNPA has peaked out and will gradually reduce hereon. We remain confident that the Bank would tide over the challenges posed by current business environment and would emerge strong.” Result PDF