Net interest income (NII) of the bank jumped by 24% YoY to Rs 823 crore in Q2 FY24. Net interest margin (NIM) for the period under review was 8.8%.

Cost to income ratio was at 52.2% in Q2FY24 as against 52.5% in Q2 FY23

Pre-provision operating profit of the bank was Rs 483 crore in the second quarter, higher by 26% as compared with Rs 385 crore recorded in the same period last year.

The bank made a provision of Rs 46.92 crore in Q2 FY24. It had written back provisions aggregating to Rs 9.94 crore in Q2 FY23.

Profit before tax in Q2 FY24 stood at Rs 436.44 crore, up by _ % from Rs 394.92 crore in Q2 FY23.

Gross NPA aggregated to Rs 585.80 crore as on 30 September 2023 as compared with Rs 928.86 crore as on 30 September 2022.

Gross NPA ratio as on 30 September 2023 was 2.35% as against 5.06% as on 30 September 2022.

Net NPA ratio of the bank was at 0.09% as on 30 September 2023 as compared with 0.04% as on 30 September 2022.

The bank's disbursements for Q2 FY24 were Rs 5,749 crore, up 18% YoY. Gross loan book as on 30 September 2023 was Rs 26,574 crore, up 27% YoY.

Deposits of the bank amounted to Rs 29,139 crore as on 30 September 2023, up 43% YoY. CASA ratio as on 30 September 2023 was at 24.1%.

As on 30 September 2023, capital adequacy ratio at 25.2% with Tier-1 capital at 22.5% and the provisional liquidity coverage ration stood at 158%.

Ittira Davis, MD & CEO, Ujjivan Small Finance Bank, said: “Q2FY24 was yet another impressive quarter in terms of business performance. Business momentum continued its strong uptrend as seen in the previous quarters.

Our secured book in Affordable Housing and FIG continues their strong performance. Further, our newer offerings like Gold loans and two-wheeler loans targeted to meet growing needs of our customer base is enhancing our product suite and will consequently aid growth.

Our CASA has crossed Rs 7,000 crore mark, growing by 28% Y-o-Y and 7% Q-o-Q. Further, our Retail TDs + CASA grew 44% Y-o-Y to Rs 18,818 crore. However, Cost of funds remained elevated in the current quarter as well, leading to NIM compression of 43 bps vs last quarter.

On merger with our promoter, as per order received from the Hon'ble NCLT, shareholder's EGM is being convened on 3rd Nov'23 by the Bank as well as Ujjivan Financial Services. Once the merger is approved by the shareholders of both the companies, we will proceed with the remaining procedural and regulatory aspects. We expect the merger to be completed in Q4FY24.”

Ujjivan Small Finance Bank is a small finance bank. The bank serves nearly 79 lakh customers through 700 branches and 21,040 employees spread across 305 districts and 26 states and union territories in India.