Total income during the quarter increased by 1% year-on-year (YoY) to Rs 788.75 crore. Operating profit in Q3 December 2020 stood at Rs 203.78 crore, up by 41.5% from Rs 144.01 crore in Q3 December 2019.

Provisions and contingencies increased by 19.11 times to Rs 583.45 crore in the third quarter from Rs 30.53 crore in the same period last year.

Ujjivan SFB reported a pre-tax loss of Rs 379.67 crore in Q3 FY21 as against a pre-tax profit of Rs 113.48 crore in Q3 FY20. The bank wrote back tax provisions aggregating to Rs 100.84 crore during the December 2020 quarter.

On the asset quality side, gross non-performing assets (NPAs) stood at Rs 130.58 crore as on 31 December 2020 as against Rs 136.09 crore as on 30 September 2020 and Rs 129.45 crore as on 31 December 2019.

The ratio of gross NPAs to gross advances stood at 0.96% as on 31 December 2020 as against 0.98% as on 30 September 2020 and 0.95% as on 31 December 2019.

The ratio of net NPAs to net advances stood at 0.05% as on 31 December 2020 as against 0.14% as on 30 September 2020 and 0.38% as on 31 December 2019.

As on 31 December 2020, the pro forma GNPA would have been 4.8% and the NNPA would have been 2.05%.

Deposits stood at Rs 11,617 crore as of December 2020, up by 9% Y-o-Y as against Dec'19, covering 85% of total advances. CASA ratio stood at 18% in December 2020 versus 12% in December 2019.

Nitin Chugh, MD & CEO, Ujjivan Small Finance Bank said, “Business is moving towards normalcy with disbursements showing Y-o-Y growth; we believe the trend would continue into Q4 and the coming fiscal. Collections in non-delinquent accounts are also moving close to pre-COVID levels; as of Jan'21 around 95% of customers are paying EMIs (as against 91% as of Oct'20) which is a healthy sign.

We have restructured Rs 852 crore (8.5% of the book as of Dec'20) of portfolio in MicroBanking basis extensive discussion with borrowers, analysis of repayment behaviour and current cash-flows. We are seeing its positive impact on collection in Jan'21 and expect the trend to improve going forward. We are monitoring the situation in stressed pockets and have taken accelerated provision of Rs 547 crore this quarter; total provision in books stands at Rs 1029 crore (covering 8% of gross advances).

In line with our liability strategy of building strong granular and stable deposit base, retail deposits are up 20% Y-o-Y; CASA stands at 18% vs 12% (Dec'19); cost of funds further reduced to 7.1% from 8.1% in Dec'19 and 7.4% in Sep'20.

Customer acquisition (acquired 7.3 lakh deposit accounts in 9MFY21) and value added products remain our key focus. We have setup a solid base - on both asset and liability side - and are well prepared to scale up and grow further from here on. Additionally we have strengthened our processes, technology platforms and focused on improving productivity across business verticals – now significantly above pre-COVID levels which is evident from higher business volumes despite lower head-count.

We continue to expand our reach through strategic tie-ups (fintechs, payment banks etc.) which supplements sourcing and help provide better service to our customers.”

Ujjivan Small Finance Bank serves 56.6 lakh customers through 575 branches with 16,733 employees spread across 244 districts and 24 States and Union Territories across India. The bank's gross loan book stood at Rs 13,638 crore with a deposit base of Rs 11,617 crore as of 31 December 2020.