Ujjivan Financial Services cuts losses to ₹11.9 cr in Q2

Ujjivan Financial Services has reduced its losses in the second quarter (Q2) of the current fiscal to ₹11.95 crore from ₹74.94 crore in the previous quarter (Q1).

In Q2 of 2016-17, the company had posted a net profit of ₹73 crore on a revenue of ₹357 crore.

Samit Ghosh, MD and CEO, Ujjivan Small Finance Bank, said: “We have significantly reduced our losses in this quarter compared to the previous quarter due to lower credit cost and business volumes returning to normal levels.

“We expect credit costs to taper off to normal levels in the next two quarters and with business growth, we are on our way to a complete turnaround after absorbing the impact of demonetisation on our business environment.” He further said, “The collection efficiency continues impressively at 99.7 per cent for all new business from January till September.

“At the same time, we maintain our progress as per plan in our transformation to a small finance bank with the conversion of 92 bank branches around the country and crossing the 100 bank branches milestone in October, and a healthy build-up of low-cost deposit base as well as steady growth in overall business.”

Sudha Suresh, MD and CEO, Ujjivan Financial Services, said: “With the scheduled bank status, the company has been able to raise funds at competitive rates additionally through certificate of deposits (₹614.5 crore). We expect to leverage further on this and other optimal sources of funding in the next two quarters.”