Ujjivan Financial Services has posted a net profit of ₹44.3 crore in Q2-FY19 as against net loss of ₹12 crore in Q2-FY18. Total income stood at ₹467.4 crore in Q2-FY19, an increase of 23.6 per cent over Q2-FY18.

The bank’s net interest income (NII) increased by 34 per cent against Q2-FY18. Consequently, NIM for the banking operation has improved to 11 per cent as against 10.2 per cent in the corresponding quarter of the previous year. NNPA is at 0.3 per cent despite issues in Kerala. Capital adequacy ratio at present stands at 23.8 per cent out of which Tier-I capital is 23.1 per cent.

Samit Ghosh, MD and CEO, Ujjivan Small Finance Bank, said: “The quarter witnessed improved growth and building on the business momentum. We expect the growth to pick-up in in second half (H2) leading to 30-35 per cent AUM growth in FY19.”

He further said: “We continue to improve our retail deposits business driven by expansion of branch network and continuous marketing efforts. The quarter also witnessed stressed liquidity in money market. However, Ujjivan was not impacted because of our conservative asset and liability structure of relatively short- term assets and longer term liabilities inherited as a micro-finance institution.”

Commenting on the performance of the company, Ittira Davis, MD and CEO, Ujjivan Financial Services, said, “Cost of funds has reduced from 8.6 per cent in Q1-FY19 to 8.5 per cent in Q2-FY19 even though the interest rate is trending upwards as we replaced high cost legacy loans with customer deposits.”

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