Ujjivan Small Finance Bank Ltd. reported a 64% fall in its profit on a yearly basis to Rs 109 crore during the three months ended December due to the rise in provisions. Sequentially, the bottom line of the bank declined 53%.
Provisions and contingencies of the bank rose to Rs 223 crore, sharply higher than Rs 63 crore a year ago.
A marginal increase in net interest income also capped the small finance bank's net interest income at Rs 887 crore, up 3% on the year. Consequently, the net interest margin fell to 8.6% in the October-December period from 9.2% a quarter ago and 8.8% a year ago.
The small finance bank's asset quality was mixed during the quarter, with the gross non-performing assets ratio marginally rising to 2.68% as of Dec. 31, compared to 2.52% in the previous quarter. The net NPA ratio was unchanged from a quarter ago at 0.56%.
Gross advances of the bank were Rs 30,466 crore, up nearly 10% YoY and 0.4% QoQ. Secured book grew 52% YoY. The share of secured book was 39.3% as of December-end against 28.3% a year ago and 34.9% a quarter ago.
During the quarter, the bank's lending to microfinanciers stood at Rs 13,663 crore, lower than Rs 14,892 crore a quarter ago and Rs 15,471 crore a year ago. Deposits rose 16% YoY to Rs 34,494 crore and the current account-savings account ratio was 25.1% at the end of December.
Shares of Ujjivan Small Finance Bank closed 0.12% lower at Rs 34.41 apiece on the BSE, compared to a 0.15% advance in the benchmark Sensex.
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