Money & Banking

Ujjivan Small Finance Bank Q2 net profit up 111%

Our Bureau Mumbai | Updated on October 21, 2019 Published on October 21, 2019

Samit Ghosh, Managing Director & CEO, Ujjivan Small Finance Bank (file pic)

Says committed to meeting listing deadline of Jan 2020

Ujjivan Small Finance Bank registered a 111.4 per cent increase in net profit for the second quarter of this fiscal to ₹93 crore.

Its net profit stood at ₹44 crore in the second quarter of last fiscal. However, for the first quarter of 2019-20, the small finance bank had a net profit of ₹94.4 crore.

Net interest income grew 49 per cent to ₹388 crore in the quarter ended September 30, 2019. Net interest margin was a tad lower at 10.8 per cent in the second quarter this fiscal from 11 per cent a year ago.

The cost to income ratio also decreased to 69.5 per cent in the second quarter of the fiscal from 77.4 per cent a year ago.

Asset quality was reported stable. Gross non-performing assets stood at 0.9 per cent of gross advances as on September 30, 2019 as against 1.9 per cent a year ago. Net NPAs was unchanged at 0.3 per cent at the end of the second quarter from a year ago. Write offs stood at ₹17 crore.

The small finance bank’s deposit base grew 27 per cent to ₹10,130 crore in September covering 78.7 per cent of total advances.

“In regards to RBI directive of listing the Bank by January 2020, we are in advance stage of listing via IPO and are confident of complying with the guidelines,” said Samit Ghosh, Managing Director and CEO, Ujjivan Small Finance Bank.

Ittira Davis, Managing Director and CEO, Ujjivan Financial Services also underlined the commitment for listing.

“USFB has filed its DRHP with SEBI in August 2019 and is committed to complying with the listing condition within the stipulated timelines. As the DRHP mentions, there would be a reservation for existing shareholders of UFSL under retail category,” he said.

The bank is focused to expand the customer base to drive growth. By September 30, 2019, the bank’s total customer base rose to 49.4 lakh from 47.2 lakh as of June 30, 2019.

The SFB’s capital adequacy ratio is currently at 18.8 per cent, out of which Tier I capital is 18.1per cent.

Ujjivan Financial Services (UFS) is the holding company and promoter of its 100 per cent subsidiary Ujjivan SFB.

Under RBI norms, SFBs have to list within three years of operations and the promoter shareholding should be lowered to 40 per cent in five years. Ujjivan SFB has till January 2020 to meet the listing deadline.

Follow us on Telegram, Facebook, Twitter, Instagram, YouTube and Linkedin. You can also download our Android App or IOS App.

Published on October 21, 2019
This article is closed for comments.
Please Email the Editor