Strong disbursement growth and improvement in asset quality drove growth for Ujjivan Financial Services in the third quarter.
Throwing more light on the quarter gone by and the outlook going forward, said the disbursements in third quarter were the highest in the last four-five quarters. Quarter on quarter the growth was 9 percent and 28-30 percent year on year growth.
The growth in disbursement is sustainable going forward in Q4 and also in FY19, she said.
When asked if they expected margins to squeeze because the wholesale money has become expensive, she said they are leveraged for the next couple of quarters to control the cost of funds. They also would look at factoring in if increase in interest rates is possible subject to increase in interest rates.
She said the company has confidence in the microfinance business and the collection efficiency for the entire MFI portfolio since January 2017 has been 99.7 percent, on disbursements which is very robust.
The company is also focused on growth of MSME and housing business. The MSME business grew 26 percent quarter on quarter. Both MSME and housing would contribute more than 10-12 percent of the total business in FY19, she said.
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