Microfinance player Ujjivan's net income jumped by 133.84 percent to Rs 177.21 crore during the 2015-16 fiscal on the back remarkable growth in portfolios like microfinance, MSME and group lending businesses.
The company had registered a net income of Rs 75.78 crore during 2014-15 financial year.
"While our MSME lending business grew by 96.45 percent at Rs 673 crore in the reporting year from Rs 342 crore in the year-ago period, housing finance business also grew to Rs 207 crore during the year from merely Rs 3 crore in the year-ago period," Ujjivan chief financial officer Sudha Suresh told PTI here.
The group lending grew by 60 percent to Rs 4,695 crore in the reporting year.
Gross assets under management of the company increased by 64.58 percent to Rs 5,388.60 crore, with a repayment rate of 99.81 percent.
While return on earning increased by 18.32 percent, its return on assets grew by 3.66 percent.
However, the gross NPA of the company increased marginally during the period to 0.15 percent from 0.07 percent in the year-ago period. Its current net NPA stands at 0.04 percent.
It was due to the fact that we extended our loanbook for the open-market customers with increased risks in certain pockets, she said.
As of now, the company's average cost of funding is at 12.18 percent. The company, which is now under the margin cap of RBI, provides lending at an interest rate of 22.4 percent.
On May 2 the company completed its IPO.
"We raised a sum of Rs 358 crore through the recently concluded IPO as we had already mopped up Rs 292 crore through pre-IPO collections. Besides, we earned, Rs 558 crore through offer for sale for our shareholders," she said.
The IPO proceeds will be used for augmenting business growth of the company for next few years. Besides, the company has charted out various other debt borrowing plans.
"We have plans to raise over Rs 2,000 crore through debt borrowing plan. Moreover, we will diversify sources of funding through commercial papers, non convertible bonds and sub-debt," she said.
Talking about the company's plan to go for transition from an MFI to small finance bank (SFB), she said that the SFB is likely to become operational from early next year.
"We are planning to have 80 branches of the SFB during next nine months, which will be increased to 550 by April next year," she said.
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