Bengaluru-based lender Ujjivan Small Finance Bank Ltd on Thursday (January 23) reported a 63.8% year-on-year (YoY) decline in net profit at ₹108.6 crore for the third quarter that ended December 31, 2024, against ₹300 crore in the same period last year.
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Net interest income (NII), which is the difference between the interest income a bank earns from its lending activities and the interest it pays to depositors, increased by 3.2%, coming at ₹886.7 crore against ₹859.3 crore in the corresponding quarter of FY24.
Gross non-performing assets (GNPA) stood at 2.68% in the December quarter against 2.52% in the September quarter. Net NPA was flat at 0.56%.
Ujjivan Small Finance Bank’s gross loan book stood at ₹30,466 crore, up 9.8% YoY and 0.4% quarter-on-quarter (QoQ). The secured book accounted for 39.3% of the total loan book as of December 2024, up from 28.3% in December 2023 and 34.9% in September 2024.
The bank’s collection efficiency improved, with an overall collection efficiency of 96% in December 2024. The bucket X collection efficiency for group and individual loan books also improved, standing at 99.3% as of December 2024. The portfolio at risk (PAR), GNPA and net NPA stood at 5.4%, 2.7%, and 0.6%, respectively, as of December 2024.
Ujjivan SFB’s deposit base grew 16.3% YoY and 1.2% QoQ to ₹34,494 crore as of December 2024. The current account and savings account (CASA) deposits stood at ₹8,662 crore, up 15% YoY, with a CASA ratio of 25.1% as of December 2024. Retail term deposits continued to grow, standing at ₹16,612 crore, up 29.5% YoY and 4.4% QoQ.
The bank’s net interest margin (NIM) stood at 8.6% for the third quarter. The operating expenses to average assets ratio improved to 6.2% in Q3FY25 from 6.4% in Q2FY25. The bank’s profit before other income and provisions (PPoP) stood at ₹359 crore.
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Ujjivan SFB’s capital adequacy ratio stood at 23.9%, while the provisional daily average liquidity coverage ratio (LCR) for December 2024 was 130.4%. The bank’s adjusted return on assets (ROA) and return on equity (ROE) stood at 1.2% and 8.8%, respectively, for Q3FY25.
The results came after the close of the market hours. Shares of Ujjivan Small Finance Bank Ltd ended at ₹34.56, up by ₹0.15, or 0.44%, on the BSE.
