Ujjivan Small Finance Bank Q2 Results: Profit Rises 11%, Beats Estimates

Ujjivan Small Finance Bank Ltd.'s profit rose in the second quarter beating analysts' estimates.

The lender's standalone net profit rose 11.4% year-on-year to Rs 327.74 crore in the quarter ended September, according to the exchange filing. Analysts polled by Bloomberg estimated a standalone profit of Rs 307.46 crore for the July-September quarter.

The net interest income, or core income, for the bank rose 24.1% year-on-year to Rs 823.34 crore. Other income saw a growth of 28.6% on year to Rs 188.64 crore.

Net interest margin for the quarter contracted 40 basis points sequentially to 8.80%. Cost of funds remained elevated, rising further by 20 basis points to 7.4% on a sequential basis.

Operating expenses were up by 24.4% on year at Rs 528.62 crore.

Total deposits rose 43% year-on-year to Rs 29,139 crore while gross loan book gained 27% year-on-year to Rs 26,574 crore for the quarter ended September. The CASA deposits grew 28% on year to Rs 7,012 crore, with the CASA ratio at 24.1%.

Asset quality for the lender also improved with gross non-performing asset ratio falling 27 basis points to 2.35% quarter-on-quarter. The net NPA ratio rose 3 basis points sequentially to 0.09%.

The lender reported provisions of Rs 46.92 crore this quarter, compared to a write-back of Rs 9.94 crore in the same period last year.

The capital adequacy ratio stood at 25.2%, with Tier-1 capital at 22.5%.