Ujjivan Financial Services (3QFY17): Hit by demontisation; Bank execution is key. Downgrade to NEUTRAL
Ujjivans 3QFY17 performance was impacted due to demonetisation led challenges. Collection efficiency for the quarter was low at ~93% compared to normal trend of 99% . Disbursements too declined 24% sequentially due to cautious approach and currency shortage. Ujjivan didn?t use RBI dispensaton and provided ~Rs 500 mn as delinquency (30 dpd) increased sharply.