Ujjivan SFB jumps 4% on 27% increase in loan book; records 29% growth in deposits

Ujjivan Small Finance Bank Q3 loan book increases 27% YoY to Rs 27,791 crore, deposits grow 29%

Shares of Ujjivan Small Finance Bank (SFB) jumped more than 4 percent in early trade on January 4, post registering a solid 27 percent increase in loan book on a year-on-year basis to Rs 27,791 crores. At 9:24 am the Ujjivan Small Finance Bank stock was trading at Rs 59.95 on NSE.

Ujjivan Small Finance Bank has shown robust performance in the quarter ending December FY24. Total deposits saw a strong 29 percent year-on-year growth, reaching Rs 29,869 crore.

The gross loan book also exhibited a commendable 27 percent YoY increase, totaling Rs 27,791 crore for the quarter. On a sequential basis, deposits and the gross loan book grew by 3 percent and 5 percent, respectively.

The CASA (Current Account Savings Account) witnessed a 24 percent YoY surge, reaching Rs 7,549 crore, with an 8 percent increase on a quarter-on-quarter basis.

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The CASA ratio slightly dropped to 25.3 percent in Q3FY24 from 26.2 percent in Q3FY23 but improved from 24.1 percent in Q2FY24. Disbursements during the quarter rose by 17 percent YoY to Rs 5,675 crore in December FY24 but experienced a 1 percent decline compared to the previous quarter.

Brokerage firm Geojit is bullish on Ujjivan Small Finance Bank and has recommended a ‘buy’ rating on the stock with a target price of Rs 62 in a recently released research report.

The Ujjivan Small Finance Bank stock has given a return of 41.97 percent over the last six months. The benchmark Bank Nifty index, meanwhile, has given a return of 5.31 percent over the same duration.