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Ujjivan Small Finance Bank has posted strong 98% growth in the net profit to Rs 89.66 crore in the quarter ended December 2019 (Q3FY2020). The net interest income increased 52% to Rs 426.53 crore, while the non-interest income improved 54% to Rs 74.89 crore in Q3FY2020.
Expense ratio dipped sharply to 71.3% in Q3FY2020 compared to 77.8% in Q3FY2019. The provision and contingencies moved up 336% to Rs 30.53 crore Q3FY2020. The profit before tax jumped 72% to Rs 113.48 crore in Q3FY2020. The effective tax rate dipped to 21.0% in Q3FY2020 compared to 31.2% in Q3FY2019.
The bank has maintained healthy net interest margin of 10.9% in Q3FY2020. The gross advances growth was strong at 46% to Rs 13617 crore end December 2019. Total deposit jumped 98% to Rs 10656 crore, with 138% surge in the retail deposits and 120% spurt in CASA deposits.
The bank has continued to focus on customer acquisition and raised customer base to 51.0 lakhs customers up from 43.7 lakhs end December 2018.
Bank got listed within timeline of January 2020 and complied with Small Finance Bank licensing norm. Ujjivan IPO was well-received by investors and was 101 times subscribed.
Asset quality: The bank has witnessed marginal increase in GNPA NNPA in Q3FY2020.
- GNPA ratio rose 10 bps qoq, while dipped 46 bps yoy to 0.95% end December 2019. Write-off of Rs 12 crore in Q3FY20.
- NNPA ratio rose 5 bps qoq, while moved up 12 bps yoy to 0.38% end December 2019.
- Provision coverage ratio stood at 60.0% end December 2019 compared with 61.0% end September 2019 81.0% end December 2018.
| Asset Quality Indicators: Ujjivan Small Finance Bank |
|
Dec-19 |
Sep-19 |
Mar-19 |
Dec-18 |
Variation |
| QoQ |
YTD |
YoY |
| Gross NPA (Rs Crore) |
129.45 |
109.40 |
97.85 |
127.77 |
18 |
32 |
1 |
| Net NPA (Rs Crore) |
51.49 |
42.53 |
27.55 |
23.75 |
21 |
87 |
117 |
| % Gross NPA |
0.95 |
0.85 |
0.92 |
1.41 |
10 |
3 |
-46 |
| % Net NPA |
0.38 |
0.33 |
0.26 |
0.26 |
5 |
12 |
12 |
| % Provision Coverage Ratio |
60.0 |
61.0 |
85.2 |
81.0 |
-100 |
-2520 |
-2100 |
| % CRAR - Basel III |
28.38 |
18.80 |
18.95 |
22.16 |
958 |
943 |
622 |
| Variation in basis points for figures given in percentages and in % for figures in Rs crore |
Business highlights:
Gross Advances increased 46% yoy to Rs 13617 crore end December 2019 over December 2018.
Non-Micro banking portfolio now contributes 22% to the portfolio against 14% Q3FY19.
Disbursement for Q3FY20 at Rs 3,403 crore; an increase of 18% over Q3FY19. Disbursement for 9MFY20 at Rs 9,967 crore up 35% Y-o-Y.
Secured portfolio constitutes 21% to the portfolio compared to 16% in Q3FY19.
Deposit base at Rs 10,656 crore in Q3FY20 covering 78% of total advances against 58% in Q3FY19.
Retail deposits at 43% to total deposits vs. 36% in Q3FY19; CASA ratio at 12% vs. 10% in Q3FY19.
Net Profit of Rs 90 crore in Q3FY20 against Rs 45 crore in Q3FY19.
Net Interest Income of Rs 427 crore in Q3FY20, an increase of 52% over Q3FY19.
Net Interest Margin at 10.9% in Q3FY20, against 11.0% in Q3FY19. Net Interest Margin at 10.7% in 9MFY20, against 10.8% in 9MFY19.
Cost to Income ratio at 71.3% in Q3FY20 vs. 77.8% in Q3FY19. Cost to Income ratio decreased to at 68.5% in 9MFY20 from 75.8% in 9MFY19.
ROA/ ROE for Q3FY20 at 2.1%/ 14% vs. 1.7%/ 10.4% Y-o-Y.
ROA/ ROE for 9MFY20 at 2.4%/ 15% vs. 1.8%/ 10.6% for 9MFY19.
Financial Performance 9MFY2020
For the nine-months ended December 2019 (9MFY2020), the bank posted -5% decline in the net profit to Rs 3015.00 crore. The net interest income increased 15% to Rs 18398.46 crore, while the non-interest income improved 20% to Rs 11551.10 crore in 9MFY2020. Expense ratio dipped sharply to 41.3% in 9MFY2020 compared to 45.4% in 9MFY2019. The provision and contingencies moved up 16% to Rs 10803.89 crore 9MFY2020. The profit before tax jumped 45% to Rs 6783.14 crore in 9MFY2020. The effective tax rate was marginally higher at 55.6% in 9MFY2020 compared to 32.1% in 9MFY2019. Net profit surged -5% to Rs 3015.00 crore in 9MFY2020.
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