Ujjivan Small Finance Bank announced Q1FY24 results: Assets: Disbursements were at Rs 5,284 crore in Q1FY24 up 22% YoY Continued strong quarterly disbursement in Housing and FIG; disbursed Rs 418 crore/ Rs 320 crore respectively – highest ever for both the segments Gross loan book at Rs 25,326 crore up 30%/5% YoY/QoQ Collection and Asset Quality: Continued traction on Collections with ~99% efficiency in Q1FY24; NDA collection consistently at ~100% Portfolio at risk at stable at 3.8% as of Q1FY24 GNPA declined to 2.4% as of Q1FY24 vs 2.6% as of Q4FY23; NNPA continues to be negligible at 0.06% as on Q1FY24 Total of Rs 60 crore written-off in Q1FY24; Provision coverage ratio as on Q1FY24 is 97.6% Deposits: Deposits at Rs 26,660 crore as of Q1FY24 up by 45%/4% YoY/QoQ Retail TD grew 71%/8% QoQ/YoY CASA grew 27% YoY taking the CASA ratio to 24.6% as of Q1FY24 Healthy retail liability customer acquisition Financials: Q1FY24 NII of Rs 793 crore up 32% YoY; NIM at 9.2% for Q1FY24 Cost to Income ratio at 52.8% in Q1FY24 vs 58.5% for Q1FY23 Q1FY24 PPoP at Rs 458 crore up 52% YoY; PAT of Rs 324 crore up 60% YoY Capital and Liquidity: Capital adequacy ratio at 26.7% with Tier-1 capital at 23.7% Provisional LCR at 189% as of Q1FY24 Ittira Davis, MD & CEO, Ujjivan Small Finance Bank said, “FY24 has started on a very strong note as we hit another highest-ever profit figure. The growth has come from the strong platform built during FY23. Our disbursement has been strong, despite Q1 being the seasonally weakest quarter, taking our loan book past the Rs 25,000 crore mark. Among secured assets, Affordable Housing and FIG continue to show strong growth, while other products will start picking up towards the latter half of the year. During the quarter, we consciously reduced the excess liquidity which was driving negative carry and pulling our NIMs down. Deposits were up 45% YoY/ 4% QoQ driven by retail focus. Our credit cost for the quarter was minimal on the back of strong collections. While slippages continue to be under control, NPA recoveries have started to move toward normalization. Bad debt recoveries continue to be strong; we expect the same to be substantial this fiscal as well albeit lower than FY23. We remain confident of our sub-100 bps credit cost for FY24. We expanded our physical presence by 32 new branches during the quarter and look forward to adding ~70 more branches during Jul 23-Mar’24. Our VVV based mobile banking app – “Hello Ujjivan” targeting non-tech savvy customers continues to do well with 2.7+ lakh customer downloads. Customers are increasingly using the app to transact. We are hopeful that “Hello Ujjivan” will bring several long-term benefits to the business and society as well. We have been delivering sustained profitability with significant improvement in QoQ for the last six consecutive quarters. With our strong financial performance and growing business momentum, we have launched a national brand campaign to further establish our image as a mass-market bank. The business is delivering on all fronts and gives us immense confidence to re-assure our FY24 guidance shared at the beginning of the year. On the merger with our promoter, the hearing of our application with the NCLT was completed on June 28, 2023, and we positively expect to receive the order soon, entailing directions for scheduling the meetings of the stakeholders and other directions as the NCLT may deem fit.” Result PDF