Conference Call with Ujjivan Small Finance Bank Management and Analysts on Q3FY23 Performance and Outlook. Listen to the full earnings transcript.
Ujjivan Small Finance Bank announced Q3FY23 results: Gross loan book at Rs 21,895 crore up 33% YoY and 5% QoQ Disbursements sustaining Rs 4,000+ crore mark – Rs 4,838 crore in line with Q3FY22; Dec 22 witnessed the highest ever disbursement. Deposits at Rs 23,203 crore as of Dec 22 up by 49% YoY; Retail deposits at 62% of total deposits against 53% as of Dec 21; CASA ratio at 26.2% on Dec 22 vs 26.5% on Dec 21. Healthy retail liability customer acquisition. Continued traction on collections with ~100% efficiency in Dec 22; NDA collection consistently at ~100% Portfolio at risk at 4.9% as of Dec 22 vs 6.1% as on Sep 22 GNPA/ NNPA declined to 3.4% / 0.05% as of Dec 22 against 4.4% / 0.04% respectively as of Sep 22; a total of Rs 179 crore written-off in Q3FY23; Provision coverage ratio as on Dec 22 is 99%. Substantial reduction in the restructured book; constitutes 1.4% of gross loan book with provision cover of 64% and collection efficiency of 98% on Dec 22 Net Interest Income (NII) of Rs 697 crore up 54% YoY; Net interest margin at 9.4% in Q3FY23 against 9.1% in Q3FY22 Operating expenses to average assets at 6.2%; Cost to income ratio at 53.5% in Q3FY23 vs 72% in Q3FY22 PPoP at Rs 389 crore vs Rs 154 crore in Q3FY22; PAT of Rs 293 crore vs Rs (34) crore YoY Capital adequacy ratio at 26.02% with Tier-1 capital at 22.84%; Provisional LCR at 198% as of Dec 22. Mr. Ittira Davis, MD & CEO, Ujjivan Small Finance Bank said, “Q3FY23 was another successful quarter in a row with our balance sheet size crossing the 30K mark this quarter. Overall disbursements for the quarter remained strong driving 5% QoQ growth in the gross loan book. Deposit growth outpaced assets growth taking out the CD ratio toward more comfortable levels. We continued to expand our physical presence; this quarter we added 8 branches and also entered into a new state – Telangana. We will look to add few more branches in Q4 and 50- 70 in FY24. We would continue to leverage our digital capabilities in addition to brick-and-mortar. Our mobile application “Hello Ujjivan” will help us bring more of our customers into the digital ecosystem. Also, we continue to expand our product suite to be more relevant to our target customers and have a larger share of their wallet. Through our wider presence, product suite and services, we not only look to strengthen relationship with our existing base of 73 lakh customers, but also be acquiring new relationships. Update on Reverse Merger: On February 01, 2023, we received the NOC from RBI; the process is on track and we believe to complete the reverse merger by Sep 23. FY23, continue to be a good quarter in multiple ways as we pulled back from a rough patch; lower credit cost and higher bad-debt recoveries added to the tailwind. Going ahead while credit cost would normalise, our underlying business remains strong and poised to grow at a healthy rate. Overall, we remain confident of the business growth and our journey towards becoming a leading mass-market bank.” Result PDF
Conference Call with Ujjivan Small Finance Bank Management and Analysts on Q2FY23 Performance and Outlook. Listen to the full earnings transcript.