Ujjivan Financial Services stock has been buzzing post its second quarter performance.
The Gross non-performing assets were down quarter on quarter (QoQ) at 4.99 percent versus 6.16 percent. The cost of funds too declined for the company in the quarter gone by. Deposits replaced high cost of borrowings in Q2, the average cost of deposits stood at 5.3 percent and average cost of funds came in at 9.65 percent.
Deposits for the company now constitute 22 percent of advances versus 6.6 percent.
Sudha Suresh, MD & CEO, Ujjivan Financial Services in an interview to CNBC-TV18 said the company is poised for good growth in Q3 and Q4 and are on track to achieve 18-20 percent growth in FY18. The industry growth also has been strong, she added.
When asked about inorganic growth, she categorically denied that the company was in talks with anyone at present, stating that the company was charting its own independent path and growing with strong fundamentals.
Along with good disbursement growth, the company is also confident of reducing its GNPAs and NNPAs going forward, said Suresh.
With steady reduction in cost of funds, they also aim to end the year with the net interest margins around 10-10.5 percent in FY18, she said.
The strategy to add more branches in phased manner continues with converting around 160 brancehs into full-fledged banking branches in FY18, she said, adding to that 29 unbanked rural centers.
For the next fiscal the aim is to convert as many as possible into full-fledged banking branches that serve both asset and liability side, she added.
For full interview, watch video
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
