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Increased provisioning arising out of lower collection post-demonetisation has impacted the profits of Ujjivan Financial Services.
The company, on standalone basis, saw its profit decline 11.85 per cent to ₹42.81 crore in the third quarter (Q3) of this fiscal (FY17) from ₹48.57 crore in the same period last year.
Total income in Q3 rose 36.63 per cent to ₹362.17 crore (₹265.07 crore in the year-ago period). EPS (basic) stood at ₹3.61 (₹4.47).
The company’s net interest income (NII) rose 43.92 per cent to ₹199 crore. Net interest margin (NIM) increased to 13.22 per cent from 12.83 per cent in Q3 FY16. .
Commenting on the company’s performance, Samit Ghosh, Chief Executive Officer and Managing Director, Ujjivan Financial Services, said: “Despite the challenging environment we have been able to maintain overall satisfactory performance. Our monthly collection efficiency for November and December was around 90 per cent. However, customers impacted by demonetisation are continuing to repay with a time lag. Consequently, as of date, the collections of November and December dues stand at 95.4 per cent and 91.1 per cent, respectively.”
On the upcoming bank launch, Ghosh added, “We intend to launch Ujjivan Small Finance Bank in the first week of February in Bengaluru...”
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