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Ujjivan Small Finance Bankreported a sharp rise in fourth-quarter earnings on May 8, supported by strong growth in core income and improving asset quality, even as the Reserve Bank of India sought further diversification in its loan portfolio before considering its transition to a universal bank.
The lender posted a net profit of ₹281.97 crore for the quarter ended March, compared with ₹83.39 crore in the corresponding period last year.
Net interest income (NII) rose 26.4% year-on-year to ₹1,092.89 crore from ₹864.31 crore, reflecting healthy growth in lending operations.
Asset quality metrics improved sequentially during the quarter. Gross non-performing assets declined to 2.26% from 2.38% in the previous quarter, while net non-performing assets eased to 0.43% from 0.57%.
Provisions during the quarter stood at ₹143.85 crore, lower than ₹195.34 crore in the preceding quarter and ₹264.50 crore reported a year earlier.
Ahead of the earnings announcement, shares of Ujjivan Small Finance Bank rose nearly 1.5% to touch an intraday high of ₹63.60 on the NSE.
Separately, the bank said earlier this month that the RBI had returned its application for voluntary transition into a
universal bank.
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In its communication dated April 13, the regulator acknowledged the bank’s efforts towards diversifying its loan portfolio but noted that there remains further scope for progress in this direction. The RBI advised the lender to reapply after demonstrating a more diversified loan book.
Ujjivan Small Finance Bank primarily focuses on microfinance, affordable housing, retail lending and financial services targeted at underserved and mass-market customer segments across India.
The lender posted a net profit of ₹281.97 crore for the quarter ended March, compared with ₹83.39 crore in the corresponding period last year.
Net interest income (NII) rose 26.4% year-on-year to ₹1,092.89 crore from ₹864.31 crore, reflecting healthy growth in lending operations.
Asset quality metrics improved sequentially during the quarter. Gross non-performing assets declined to 2.26% from 2.38% in the previous quarter, while net non-performing assets eased to 0.43% from 0.57%.
Provisions during the quarter stood at ₹143.85 crore, lower than ₹195.34 crore in the preceding quarter and ₹264.50 crore reported a year earlier.
Ahead of the earnings announcement, shares of Ujjivan Small Finance Bank rose nearly 1.5% to touch an intraday high of ₹63.60 on the NSE.
Separately, the bank said earlier this month that the RBI had returned its application for voluntary transition into a
Also Read: Titan Q4 Results: Stock jumps 6% despite margin miss; Jewellery demand shines
In its communication dated April 13, the regulator acknowledged the bank’s efforts towards diversifying its loan portfolio but noted that there remains further scope for progress in this direction. The RBI advised the lender to reapply after demonstrating a more diversified loan book.
Ujjivan Small Finance Bank primarily focuses on microfinance, affordable housing, retail lending and financial services targeted at underserved and mass-market customer segments across India.
