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Ujjivan Small Finance Bank has posted strong 4% growth in the net profit to Rs 96.00 crore in the quarter ended September 2020 (Q2FY2021). The net interest income increased 21% to Rs 470.14 crore, while the non-interest income declined -14% to Rs 64.40 crore in Q2FY2021.
Expense ratio dipped sharply to 56.6% in Q2FY2021 compared to 69.5% in Q2FY2020. The provision and contingencies moved up 305% to Rs 100.52 crore Q2FY2021. The profit before tax moved up 13% to Rs 131.65 crore in Q2FY2021. The effective tax rate increased to 27.1% in Q2FY2021 compared to 20.6% in Q2FY2020.
Asset quality: The bank has witnessed improvement in the asset quality in Q1FY2021.
GNPA ratio was flat qoq, while rose 13 bps yoy to 0.98% end September 2020.
NNPA ratio declined 4 bps qoq and 19 bps yoy to 0.14% end September 2020.
Provision coverage ratio improved to 82.0% end September 2020 compared with 80.0% end March 2020 and 61.0% end September 2019.
The bank is well-capitalized with CAR at 31%.
As per the bank 91% of the customers have started payment at the end of moratorium.
| Asset Quality Indicators: Ujjivan Small Finance Bank |
|
Sep-20 |
Jun-20 |
Mar-20 |
Dec-19 |
Sep-19 |
Variation |
| QoQ |
YTD |
YoY |
| Gross NPA (Rs Crore) |
136.09 |
139.82 |
137.14 |
129.45 |
109.40 |
-3 |
-1 |
24 |
| Net NPA (Rs Crore) |
19.08 |
25.10 |
27.49 |
51.49 |
42.53 |
-24 |
-31 |
-55 |
| % Gross NPA |
0.98 |
0.97 |
0.97 |
0.95 |
0.85 |
1 |
1 |
13 |
| % Net NPA |
0.14 |
0.18 |
0.20 |
0.38 |
0.33 |
-4 |
-6 |
-19 |
| % Provision Coverage Ratio |
86.0 |
82.0 |
80.0 |
60.0 |
61.0 |
400 |
600 |
2500 |
| CRAR Basel III % |
30.99 |
28.70 |
28.80 |
28.30 |
18.80 |
229 |
219 |
1219 |
| Tier I - Basel III % |
30.05 |
27.80 |
28.00 |
27.50 |
18.10 |
225 |
205 |
1195 |
| Variation in basis points for figures given in percentages and in % for figures in Rs crore |
Business highlights:
Gross the loan book of the bank has increased 8% to Rs 13890 crore. The Non-Micro Banking portfolio contributes 25.6% to the portfolio against 21.5% as of September 2019.
Non-Micro Banking portfolio contributes 24% of the portfolio against 21% as of September 2019.
Disbursement for Q2FY21 at Rs 1458 crore against Rs 3606 crore at Q2FY20 with September 2020 disbursement at Rs 556 crore.
The secured portfolio is 23% of the total portfolio as on September 2020 against 19% in September 2019.
GNPA at 1.0% and NNPA at 0.1% against 0.9% and 0.3% respectively end September 2019. The Bank has not recognized any NPAs since 31 August 2020, in line with the interim order of Hon. Supreme Court. If the said Order was not given effect to, pro-forma GNPA & NNPA would have been 1.2% & 0.3% respectively.
Deposits at Rs 10743 crore as of September 2020 covering 77% of total advances.
Retail deposits at 49% of the total deposits against 42% in September 2019; CASA ratio at 16% against 12% in September 2019.
Net Interest Margin at 10.2% in Q2FY21, against 10.8% in Q2FY20
Deposit rose 6% to Rs 10743 crore end September 2020 over September 2019.
Retail deposits stood at 48.9% to total deposits against 41.9% in September 2019, while CASA ratio improved to 16.5% from 14.2% a quarter ago and 11.9% a year ago.
The collection efficiency improved to 84% for September 2020 and further rose to 88% in October 2020.
The bank has reduced cost of funds to 7.4% in Q2FY2021 from 7.7% a quarter ago and 8.4% a year ago. Net Interest Margin was steady on qoq basis at 10.2% in Q2FY21, while eased from 10.8% in Q2FY20.
The bank has the network of 575 branches and 477 ATMs end September 2020. The customer base of the bank has improved to 55.3 lakh end September 2020 from 50.6 lakh end September 2019. The bank has employee base of 17018 employees end September 2020.
Book value of the company stood at Rs 18.0 per share, while the adjusted book value (net of NNPA) was at Rs 17.9 per share end September 2020.
Financial Performance H1FY2021
Ujjivan Small Finance Bank has posted -19% decline in the net profit to Rs 150.65 crore in the six months ended September 2020 (H1FY2021). The net interest income increased 25% to Rs 928.15 crore, while the non-interest income dipped -47% to Rs 93.10 crore in H1FY2021.
Expense ratio dipped sharply to 56.2% in H1FY2021 compared to 66.9% in H1FY2020. The provision and contingencies moved up 453% to Rs 240.86 crore H1FY2021. The profit before tax declined -20% to Rs 206.00 crore in H1FY2021. The effective tax rate eased to 26.9% in H1FY2021 compared to 27.8% in H1FY2020.
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