Ujjivan Small Finance Bank reported a sharp rise in profitability for the fourth quarter, aided by strong growth in net interest income, lower provisions and improvement in asset quality.
The bank's net profit jumped to Rs 282 crore in Q4 from Rs 83.4 crore in the corresponding quarter last year, reflecting a strong year-on-year recovery.
Operating profit after tax rose to Rs 515 crore compared to Rs 360 crore a year ago.
Net interest income (NII) increased 26.4% year-on-year to Rs 1,093 crore against Rs 864 crore reported in the same quarter last year, driven by healthy loan growth and improved operating performance.
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The lender also reported a decline in provisioning expenses during the quarter. Provisions stood at Rs 144 crore compared to Rs 195 crore in the previous quarter and Rs 265 crore in the year-ago period.
Asset quality improved sequentially during the March quarter. Gross non-performing assets (Gross NPA) declined to 2.26% from 2.38% in the December quarter, while Net NPA eased to 0.43% from 0.57% quarter-on-quarter.
Alongside its quarterly earnings, the bank's board also approved plans to raise up to Rs 2,000 crore through qualified institutional placement (QIP) and other permissible modes, subject to shareholder and regulatory approvals.
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