Ujjivan Small Finance Bank announced Q3FY25 results Assets: Gross loan book at Rs 30,466 crore up 9.8% YoY / 0.4% QoQ. Secured book at 39.3% as of Dec’24 vs 28.3% as of Dec’23 / 34.9% as of Sep’24. Secured book up 13.3% QoQ and 52.0% YoY. Collection and Asset Quality: Overall Collection Efficiency at ~96% in Dec’24. Bucket X collection efficiency improving for Group and Individual Loan book; at 99.3% as of Dec’24. Portfolio at Risk/GNPA/NNPA at 5.4%/2.7%/0.6% respectively as of Dec’24; for Sep’24 at 5.1%/ 2.5%/ 0.6% respectively; Q3FY25 write-off at Rs 30 crore. Accelerated Provision taken in Q3 of Rs 30 crore; Provision coverage ratio as of Dec’24 is 80%. Deposits: Deposits at Rs 34,494 crore as of Dec’24 up 16.3% YoY / 1.2% QoQ. CASA at Rs 8,662 crore up 15% YoY; CASA ratio at 25.1% as of Dec’24. Retail TD^ continues to grow and as of Dec’24 is Rs 16,612 crore, up 29.5% YoY / 4.4% QoQ. Financials: Q3FY25 NII of Rs 887 crore up 3.1% YoY; NIM at 8.6% for Q3FY25. Opex to Avg assets improved to 6.2% in Q3FY25 vs 6.4% in Q2FY25. Q3FY25 PPoP at Rs 359 crore; Q3FY25 Adjusted PAT at Rs 132 Crore. Q3FY25 Adjusted$ RoA / RoE at 1.2% / 8.8% Capital and Liquidity: Capital adequacy ratio at 23.9%. Provisional Daily Average LCR for Dec’24 was 130.4%. Sanjeev Nautiyal, MD & CEO, Ujjivan Small Finance Bank said: “Q3FY25 has been a healthy quarter wherein the diversification of loan book is showing consistent improvement. Our strategy towards more secured book has seen accelerated results contributing 39% to the total asset loan growing 13% QoQ and 52% YoY. These efforts enabled the loan book to grow to Rs 30,466 crore up 0.4% QoQ and 10% YoY. Being a responsible lender, Bank undertook a proactive decision to effect reduction in interest rates in Group loans (GL) and Individual loans (IL) offering competitive rates to our customers w.e.f. January 01, 2025. This will act as an enabler to acquire quality customers. Parallelly, we are keeping a close watch on the evolving Microfinance space and navigating it appropriately. Few pockets of stress visible earlier are now demonstrating healthy trends. X-Bucket collection efficiency in GL & IL has improved to 99.3% in Dec’24 vs 99.0% in Aug’24. Owing to the visible green shoots, we have seen higher disbursements during the first 3 weeks of Q4FY25. We are geared to pursue healthy business as the situation in different states approach towards normalcy. Secured businesses are making perpetual and determined strides, this year registering a ~40% YTD growth and poised to register a stronger growth for full year FY25. To manage asset quality better, Bank also engaged in a sale of stressed loan assets to the tune of Rs 270 crore. Bank has also taken an accelerated provision of Rs 30 crore to be better cushioned from any future exigencies. Post which GNPA/NNPA as on Dec’24 stands at 2.7%/0.6% with a comfortable PCR of 80%. Deposit book at Rs 34,494 crore as of Dec’24 is up 1.2% QoQ and 16.3% YoY. CASA ratio at 25.1% as of Dec’24 continued to be healthy. Bank is in the process of enabling some structural changes in its liability strategy enhancing focus to serve more targeted segments of affluent customers largely classified under Non-Residents, Corporate Salary and Traders. New products in our product suite affiliated post receipt of AD-1 licence will also enhance offerings and improve customer base in-line with our above stated strategy. Finally, I am happy to share that we will be shortly moving the application to RBI for transition to a Universal Bank having received approval of the Board in the meeting held today.” Result PDF
Ujjivan Small Finance Bank announced Q2FY25 results Assets: Gross loan book at Rs 30,344 crore up 14% (YoY)/ 1% (QoQ). Secured book at 34.9% as of Sep’24 vs 31.3% as of Jun’24. Disbursements at Rs 5,376 crore in Q2FY25 down 6% (YoY) and up 2% (QoQ). Collection and Asset Quality: Collection Efficiency at ~97% in Sep’24; NDA collection consistently at ~99%. Portfolio at risk at 5.1% as of Sep’24; GNPA* at 2.5% as of Sep’24 vs 2.3% as of Jun’24; NNPA at 0.6% as of Sep’24 vs 0.4% as of June’24. Q2FY25 write-off at Rs 140 crore; Provision coverage ratio as on Sep’24 is 78%. Deposits: • Deposits at Rs 34,070 crore as of Sep’24 up 17% (YoY)/5% (QoQ). CASA at Rs 8,832 crore up 26% (YoY); CASA ratio at 25.9% as of Sep’24 vs 25.6% as of Jun’24. Retail TD at Rs 15,914 crore, up 35% (YoY)/2% (QoQ). Financials: Q2FY25 NII of Rs 944 crore up 15% (YoY)/ 0.2% (QoQ); NIM at 9.2% for Q2FY25. Cost to Income ratio at 60% in Q2FY25. Q2FY25 PPoP at Rs 461 crore; Q2FY25 PAT at Rs 233 crore. RoA/RoE at 2.2%/15.7% in Q2FY25. Capital and Liquidity: Capital adequacy ratio at 23.4% with Tier-1 capital at 21.6%. Provisional Daily Average LCR for Sep’24 was 130%. Sanjeev Nautiyal, MD & CEO, Ujjivan Small Finance Bank said: “Ujjivan has always stood strong and successfully navigated headwinds in the industry. Similarly, our resilient business model and sound reading of the on-ground situation has always kept us better prepared to identify and manage such issues confidently. As we had mentioned in our previous interactions, we had emanated pockets of stress across the country due to elevated indebtedness levels. Hence, we have proactively developed a cautious approach in terms of growth in microfinance space and have beefed up our vigilance to manage asset quality. Ujjivan has constantly strategized to de-risk its portfolio by introducing more secured products in its offerings. In last 18 months Bank has launched products like Micro Mortgages, Gold Loan, Vehicle Loan, Agri and Working Capital (SME) loans and they are increasingly contributing to the overall asset book each month. This also reflects in our faster growth in secured asset portfolio, growing 12% sequentially. Currently our secured book contribution stands at 34.9% in Sep’24 vs 31.3% in Jun’24. Total asset book grew 14% YoY/1% QoQ to Rs 30,344 crore in Sep’24. CD ratio is at 89%, with healthy total deposit growth at 17% YoY/5% QoQ to Rs 34,070 crore. Introduction of solution-based products and increasingly enhancing product suite and delivery of quality service has continued to bring customer delight. Our CASA deposits continue to improve at Rs 8,832 crore up 6% QoQ now contributing ~26% to the total deposits. Our service channels like Hello Ujjivan, our home-grown app is enabled with self-onboarding processes of repeat, pre-approved, and top-up loans for Individual Loans segment. Additionally, we continue to evolve and improve our business net banking by offering tax payment facility. We have also secured AD-1 licence that will enable us to offer range of forex services, increasing offerings to our MSME and retail customers. This will also benefit our Other Income in the upcoming quarters. Collections are slightly impacted, primarily on the Group loan segment at 97% in Sep’24 vs 98% in Jun’24. This also reflects in the stress appearing on overall GNPA at 2.5% in Sep’24 vs 2.3% in Jun’24. Our cautious approach by introducing stricter norms compared to MFIN guidelines will ensure quality acquisition. NIM for the quarter at 9.2% was supported by cost of funds stable at 7.5%. PPoP for the quarter was at Rs 461 crore and PAT for the quarter was Rs 233 crore. This was impacted due to much slower growth vs previous quarters on account of impact on our Micro Finance Business book and due to rising credit cost. We are confident of our business as we progress to build a ‘bank of the future’ diversifying our portfolio, increasing secured asset portfolio, leveraging on our strengths and presenting ourselves as widely accepted Bank for the masses. Result PDF