Ujjivan Small Finance Bank announced Q2FY24 results: 1. Financial Performance: - NII increased by 24% YoY, reaching Rs 823 crore. - NIM at 8.8% for Q2FY24 - PAT grew by 11% YoY, totaling to Rs 328 crore. - Gross loan book increased by 27% YoY, reaching Rs 26,574 crore. - Q2FY24 PPoP at Rs 483 crore up 26% YoY 2. Asset Quality: - GNPA decreased to 2.2% as of September 2023, compared to 2.4% in June 2023. - NNPA remained negligible at 0.09%. - Portfolio at Risk (PAR) stood at 3.7% as of September 2023. - Total of Rs 56 crore written-off in Q2FY24 - Provision coverage ratio as of September 2023 is 96% 3. Deposit Growth: - Total deposits increased by 43% YoY, reaching Rs 29,139 crore. - Retail term deposits grew by 56% YoY. 4. Business Expansion: - 39 new branches were added, increasing the total branch count to 700. - Nationwide brand campaign and value-added liability products were launched to enhance brand recall and deepen relationships with stakeholders. Ittira Davis, MD & CEO of Ujjivan Small Finance Bank said, “Q2FY24 was yet another impressive quarter in terms of business performance. Business momentum continued its strong uptrend as seen in the previous quarters. Disbursements at Rs 5,749 crore were strong registering a robust growth of 18% YoY and 9% QoQ. Our secured book in Affordable Housing and FIG continues their strong performance. Further, our newer offerings like Gold loans and two-wheeler loans targeted to meet the growing needs of our customer base are enhancing our product suite and will consequently aid growth. To provide further impetus to growth and brand awareness, we have introduced several initiatives during the quarter such as the launch of a nationwide brand campaign and value-added liability products targeting to enhance and deepen brand recall among our existing and potential stakeholders. Further, we have also opened 39 new branches, taking our total branch count to 700. In H2 we will be adding ~45 more branches, this will include the splitting of a few branches to better manage the volumes. All these efforts have resulted in healthy growth of liabilities for our Bank. Our CASA has crossed the Rs 7,000 crore mark, growing by 28% YoY and 7% QoQ. Further, our Retail TDs + CASA grew 44% YoY to Rs 18,818 crore. Q2FY24 was yet another quarter where we marked Rs 300 crore+ PAT. This was supported by our healthy NII growing by 24% YoY and 4% QoQ. However, the Cost of funds remained elevated in the current quarter as well, leading to NIM compression of 43 bps vs last quarter. We continue to stick to our guidance on loan and deposit book growth. Further, we are also confident to maintain credit costs below 100 bps. Our strong focus on other initiatives such as ‘Hello Ujjivan’ is gaining acceptance among customers with 4.3 Lakhs downloads to date and total repayments of more than Rs 40 crore in Q2FY24. ‘Digital FDs’ which was recently launched is also expected to bring business in the upcoming quarters. On the merger with our promoter, as per the order received from the Hon’ble NCLT, the shareholder’s EGM is being convened on 3rd Nov’23 by the Bank as well as Ujjivan Financial Services. Once the merger is approved by the shareholders of both companies, we will proceed with the remaining procedural and regulatory aspects. We expect the merger to be completed in Q4FY24.” Result PDF