Ujjivan Financial Services has posted a standalone net profit (after tax from continuing operations) of Rs 3.74 crore for the fourth-quarter (Q4) of financial year 2016-17 against Rs 1.87 crore posted in the same period last year.

Total income for Q4 was higher by 95.20 per cent at Rs 6.11 crore against Rs 3.13 crore recorded last year. EPS (basic) on continuing operations stood at Re 0.31 (last year Re 0.20).

Commenting on the company's performance, Sudha Suresh, MD & CEO, Ujjivan Financial Services, said, “The annual performance has been quite satisfactory, considering the significant challenges post demonetisation. We have managed our collection efficiencies quite well. With demonetisation, the situation is stabilising across regions, and with improvement in recoveries, the cumulative repayment rate stands at 96.72 per cent.”

“On the borrowing side, there have been significant improvement in terms of lower marginal costs of borrowing for term loans and NCDs. Thus, for FY 17 our average cost of debt has reduced to 10.63 per cent and marginal cost of debt stand at 9.67 per cent,'' he said.

Samit Ghosh, MD & CEO, Ujjivan Small Finance Bank said, “We have started our banking operations in February and the transition is progressing as per our plan. We have converted 15 branches by March 2017, and plan to add 15 branches by early May. We further plan to convert 171 branches this year and 53 URCs will be opened. Coming year, our focus will be on successful roll-out of banking services to the chosen branches, build retail & bulk deposit business to reduce our finance cost. We plan to leverage on all the investments we have made in IT & Infrastructure.”

Related Topics
comment COMMENT NOW