Ujjivan Small Finance Bank Ltd.'s profit fell in the first quarter of fiscal 2025, meeting analysts' estimates.
The lender's net profit fell 7% year-on-year to Rs 301.08 crore, according to an exchange filing on Thursday. Analysts polled by Bloomberg pegged a profit of Rs 297 crore.
Ujjivan SFB Q1FY25 Results Highlights (Standalone)
Net profit down 7% to Rs 301 crore vs Rs 324 crore (YoY)
Net interest income up 19% to Rs 942 crore vs Rs 793 crore (YoY)
Gross NPA at 2.52% vs 2.23% (QoQ)
NNPA at 0.41% vs 0.28% (QoQ)
Net interest income, or core income, for the lender rose 19% year-on-year to Rs 942 crore. Other income increased 11.1% to Rs 197 crore on a yearly basis.
Asset quality for the lender worsened with gross non-performing asset ratio rising 29 basis points quarter-on-quarter to 0.29%. Net NPA ratio too worsened to 0.41%, compared to 0.28% in the previous quarter.
According to an analysts presentation made on June 21, the management had lowered its fiscal 2025 loan growth guidance by 500 basis points due to stress building up in some pockets of its business.
Stress was visible in certain regions like Punjab, Haryana, Southern Tamil Nadu, and Kerala, Ittira Davis told NDTV Profit last month.
Provisions for the quarter rose more than 4 times, up 320% year-on-year to Rs 109.8 crore.
Operating expenses were up 22.8% year-on-year to Rs 629.03 crore. Here, employee costs rose 26.7% year-on-year to Rs 340.25 crore and other opex rose 18.5% to Rs 288.7 crore.
(This is a developing story.)
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