Ujjivan Small Finance Bank To Reduce Cost-To-Income Ratio From Fourth Quarter

Ujjivan Small Finance Bank, a wholly owned subsidiary of Ujjivan Financial Services Ltd., expects to reduce its cost-to-income ratio from the current quarter, its Managing Director and Chief Executive Officer Samit Ghosh said.

“Our investments in people, technology [and] the physical infrastructure have already peaked out,” Ghosh told BloombergQuint in an interaction.

The change in the ratio, which would be brought about by scaling up business, would be gradual, Ghosh said. “Being in the lending business, we don't want to scale up too fast,” he said, adding that improvement in return on equity and return on assets would also be gradual.

The microfinance lender looks to add about 100 branches in the near future, Ghosh said. He said many players in the industry have increased their loan portfolios, which is a sign of competition and not danger.

Watch the conversation here: