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Ujjivan Small Finance Bank has posted 42% decline in the net profit to Rs 54.65 crore in the quarter ended June 2020 (Q1FY2021). The net interest income increased 30% to Rs 458.01 crore, while the expense ratio dipped sharply to 55.9% in Q1FY2021 compared to 64.4% in Q1FY2020.
However, the bank has witnessed sharp 71% decline in the non-interest income to Rs 28.70 crore in Q1FY2021. The provision and contingencies moved up 647% to Rs 140.34 crore Q1FY2021.
The bank has made additional provisions of Rs 129 crore for covid 19 in Q1FY2021 after Rs 70 crore in Q4FY2020 taking total provisions to Rs 199 crore end June 2020.
The profit before tax declined 48% to Rs 74.35 crore in Q1FY2021. An effective tax rate dipped to 26.5% in Q1FY2021 compared to 33.7% in Q1FY2020.
Asset quality: The bank has witnessed improvement in the asset quality in Q1FY2021.
GNPA ratio was flat qoq, while rose 13 bps yoy to 0.97% end June 2020.
NNPA ratio declined 2 bps qoq and 8 bps yoy to 0.18% end June 2020.
Provision coverage ratio stood at 82.0% end June 2020 compared with 80.0% end March 2020 and 69.0% end June 2019.
The bank is well-capitalized with CAR at 28.7%.
The loan book under moratorium reduced from 79.8% end May 2020 to 47.4% end June 2020.
| Asset Quality Indicators: Ujjivan Small Finance Bank |
|
Jun-20 |
Mar-20 |
Dec-19 |
Sep-19 |
Jun-19 |
Variation |
| QoQ |
YoY |
| Gross NPA (Rs Crore) |
139.82 |
137.14 |
129.45 |
109.40 |
95.78 |
2 |
46 |
| Net NPA (Rs Crore) |
25.10 |
27.49 |
51.49 |
42.53 |
29.12 |
-9 |
-14 |
| % Gross NPA |
0.97 |
0.97 |
0.95 |
0.85 |
0.84 |
0 |
13 |
| % Net NPA |
0.18 |
0.20 |
0.38 |
0.33 |
0.26 |
-2 |
-8 |
| % Provision Coverage Ratio |
82.0 |
80.0 |
60.0 |
61.0 |
69.0 |
200 |
1300 |
| CRAR Basel III % |
28.70 |
28.80 |
28.30 |
18.80 |
19.00 |
-10 |
970 |
| Tier I - Basel III % |
27.80 |
28.00 |
27.50 |
18.10 |
18.40 |
-20 |
940 |
| 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 22% to Rs 14366 crore. The Non-Micro Banking portfolio contributes 23% to the portfolio against 18% as of June 2019. The secured portfolio constitutes 21% to the portfolio compared to 16% as of June 2019. The disbursement declined to Rs 474 crore in Q1FY21 against Rs 2959 crore at Q1FY20.
Deposit base at Rs 11057 crore as of June 2020 covering 77% of total advances against 68% as of June 2019. Retail deposits stood at 45% to total deposits against 43% in June 2019, while CASA ratio stood at 14% against 10% in June 2019.
The collection efficiency improved to 54% for June 2020 and further rose to 59% in July 2020.
The bank has reduced cost of funds by 21 bps qoq to 7.7% in Q1FY2021. Net Interest Margin eased to 10.2% in Q1FY21, against 10.5% in Q1FY20.
The bank has commenced active trading in treasury segment in Q1FY2021. The bank has recorded Rs 10.4 crore of MTM gains in shift of portfolio from HTM to AFS, while trading income realized in HFT book stood at Rs 64 lakh.
ROA/ ROE at 1.2%/ 6.8% in Q1FY21 against 2.7%/ 20.2% in Q1FY20.
The bank has the network of 575 branches and 475 ATMs end June 2020. The customer base of the bank has improved to 54.7 lakh end June 2020 from 48.2 lakh end June 2019. The bank has employee base of 17370 employees end June 2020.
Book value of the company stood at Rs 17.5 per share, while the adjusted book value (net of NNPA) was at Rs 17.3 per share end June 2020.
Financial Performance FY2020:
For the year ended March 2020 (FY2020), the bank posted 76% decline in the net profit to Rs 349.92 crore. The net interest income increased 48% to Rs 1633.59 crore, while the non-interest income improved 56% to Rs 322.21 crore in FY2020. Expense ratio dipped sharply to 67.4% in FY2020 compared to 76.5% in FY2019. The provision and contingencies moved up 321% to Rs 170.99 crore FY2020. The profit before tax jumped 74% to Rs 466.24 crore in FY2020. The effective tax rate was marginally higher at 24.9% in FY2020 compared to 25.8% in FY2019. Net profit surged 76% to Rs 349.92 crore in FY2020.
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