Moneycontrol Be a Pro
Get App
you are here: HomeNewsBusiness
Last Updated : Aug 06, 2018 07:19 PM IST | Source: PTI

Ujjivan Financial posts Q1 net profit of Rs 45 crore

There was a fall in provisions and contingencies by 68.2 percent to Rs 37.90 crore in June quarter from Rs 119.20 crore a year ago, helping the company to register gains.

 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

Ujjivan Financial Services registered a consolidated net profit of Rs 45 crore in the first quarter ended June, mainly on account of healthy increase in revenues from operations. It had posted a net loss of Rs 74.90 crore in the corresponding April-June period of 2017-18. However, compared sequentially, the profit was lower than Rs 64.90 crore posted in the March quarter of the previous financial year 2017-18.

Total income during April-June 2018-19 increased by 28.4 percent to Rs 459.60 crore as against Rs 358.10 crore in the same period of 2017-18, Ujjivan said in a regulatory filing.

Net interest income grew by 61 percent during the June quarter grew to Rs 222.40 crore. While net interest margin, a key gauge of profitability, improved to 11.6 percent in June 2018 from 9.2 percent a year ago.

Close

Company's asset quality improved as the gross non-performing assets (NPAs) as a percentage of gross lending fell to 2.7 percent as on June 30, 2018, from 6.2 percent as of June 2017.

Net NPAs or bad loans also fell to 0.3 percent from 2.3 percent.

There was a fall in provisions and contingencies by 68.2 percent to Rs 37.90 crore in June quarter from Rs 119.20 crore a year ago, helping the company to register gains.

Ujjivan Financial Service began its fully owned small finance banking services through the launch of Ujjivan Small Finance Bank in early 2017.

On the banking outlets rollout plan, Ujjivan Financial said it converted 87 of its asset centres into banking outlets in the June quarter of 2018-19 and added one unbanked rural centre (URC).

For the full year, a total of 475 banking outlets are being planned with 219 assets centres to be converted into bank branches, opening of 7 new outlets and 62 new URCs in West Bengal, Bihar, Odisha, Gujarat, Karnataka and Tamil Nadu.

Remaining 49 asset centres will be converted in 2019-20, it said.

Samit Ghosh, MD & CEO, Ujjivan Small Finance Bank, said: "The transition to a bank from a microfinance institution has stabilised and last year we completed the clean-up of our portfolio post demonetisation. We are now focussed on scaling up different business verticals of the bank and multiple distribution channels. This quarter we also witnessed a good momentum on the retail deposits as we have reduced our reliance on CDs."

Cost of funds has reduced and with continued efforts the gross NPAs have reduced significantly, said Ittira Davis, MD & CEO, Ujjivan Financial Services.

Calculated on average cost of borrowings and deposits, company's cost of funds fell to 8.6 percent during the quarter from 9.8 percent in year ago same period.

However, it was up at 8 percent from 7.5 percent year ago when calculated on the basis of marginal cost of interest of borrowings.

Stock of Ujjivan Financial Services closed 3.30 percent up at Rs 399.45 on BSE.

The Great Diwali Discount!
Unlock 75% more savings this festive season. Get Moneycontrol Pro for a year for Rs 289 only.
Coupon code: DIWALI. Offer valid till 10th November, 2019 .
First Published on Aug 6, 2018 07:15 pm
Loading...
Sections
Follow us on
Available On
PCI DSS Compliant