Kolkata, November 10, 2022: Ujjivan Small Finance Bank ltd. [BSE: 542904; NSE: UJJIVANSFB], today announced its financial performance for the half-year and quarter that ended September 30, 2022.

Summary of Ujjivan Small Finance Bank Business Performance – Q2 FY 2022-23

  • Gross advances at ₹20,938* crore up 44% Y-o-Y and 8% Q-o-Q
  • Strong disbursements for Q2 – ₹4,866 crore up 56% Y-o-Y
  •  As of 30th Sep’22, total provision on books are at ₹1,126 crore – ₹115 crore standard provision, ₹762 crore account level NPA provision, and ₹250 crores floating provision. The entire Floating provision of ₹250# crore created in Jun’21 continues to be there on books and can be utilized for making specific provisions in extraordinary circumstances with prior approval of RBI; only ₹160 crores is utilized for NNPA/ PCR calculation,
  • ₹30 crores towards Tier II capital and the balance ₹60 crores have been grouped as part of other provisions without utilizing the same towards Tier II capital, this amount continues to be earmarked for utilization for NNPA/PCR as and when needed.
  •  Continued traction on the Collections site at ~100% in Sep’22
  •  Portfolio at risk continues to decline; 6.1% as of Sep’22* vs 7.9% as on Jun’22
  •  GNPA/ NNPA declined to 4.4% / 0.04%#* as of Sep’22 against 5.9% / 0.1%#* respectively as of Jun’22; total of
  • ₹ 157 crore written-off in Q2FY23; Provision coverage ratio as on Sep’22 is 99%#
  •  Substantial reduction in the restructured book; constitutes 2.3% of gross advances* with provision cover of 63%
  •  Deposits at ₹20,396 crores as of Sep’22 up by 45% Y-o-Y; Retail deposits at 61% of total deposits against 52% as of Sep’21; CASA ratio at 26.9% in Sep’22 vs 22.5% in Sep’21. Retail banking CASA grew 79% Y-o-Y contributing 79% to total CASA; healthy retail liability customer acquisition.
  •  Net Interest Income of ₹663 crore in Q2FY23; Net interest margin at 9.8%* in Q2FY23 against 8.1% in Q2FY22
  •  Operating expenses to average assets at 6.6%; Cost to Income ratio at 52.5% in Q2FY23 vs 82.3% in Q2FY22
  •  PPoP at ₹385 crore vs ₹79 crore in Q2FY22; PAT of ₹294 crore vs ₹(274) crore Y-o-Y
  •  Capital adequacy ratio at 26.70% with Tier-1 capital at 23.37%; Liquidity coverage ratio*** at 219% as of Sep’22

Mr. Ittira Davis, MD & CEO, of Ujjivan Small Finance Bank said, “Q2FY23 is another milestone quarter with record profitability. While disbursements continue to sustain the Rs 4,000+ crore mark, deposit growth took off well this quarter driven by retail deposits. Our loan book grew 8% vs Jun’22 / 44% vs Sep’21 to ₹ 20,938* crore and deposits are up 11% vs Jun’22 / 45% vs Sep’21. Retail deposits and CASA contribute to 61% and 26.9% of total deposits. PAR continues to improve, currently at 6.1%* vs. 7.9%* as on Jun’22. This is largely due to sustained collection efficiency at pre-covid levels and normalized slippages; while recoveries continue to be strong. We continue to hold strong provisioning buffers on our books with PCR at 99%, resulting in an NNPA of a mere 0.04%. An additional provision of ₹30 crores is being used towards CRAR and ₹60 crores have been grouped as part of other provisions without utilizing the same. We remain focused on building a granular deposit franchise and continuously enhancing digital capabilities to drive improved business and productivity levels. With recent capital raise and sustained high profitability, Sep’22 CRAR is far more than comfortable to capitalise on opportunities ahead.”