By K Ashwin Mobile:00919920183006 Email:email@example.com
Ujjivan Financial Services Ltd. [BSE: 539874; NSE: UJJIVAN], the promoter of its 100% subsidiary “UJJIVAN SMALL FINANCE BANK”, today announced its consolidated financial performance for the quarter ended June 30, 2017. Summary of Business Performance – Q1 FY 2017-18:
All the financials indicated are consolidated numbers
Gross Loan Book at ₹6,459.27 crore; growth of 10.40% over Q1-FY17 and an increase of 1.25% over Q4-FY17
Managed portfolio as on June 30, 2017 at ₹348.57 crore
Net Loan Book at ₹6,110.70 crore; growth of 9.95 % over Q1-FY17 and an increase of 4.08 % over Q4-FY17
Disbursement at ₹1,701.92 crore; decrease of 9.41% over Q1-FY17 and an increase of 20.97% over Q4-FY17
1.76 lakh new borrowers added during the quarter; Total Borrowers stand at 36.25 lakh Collection efficiency back to normal for new business at 99.76% from January to June’17 Secured portfolio increased to ₹150 crore from ₹117 crore in March 2017
GNPA at 6.16% and NNPA at 2.30%, as sticky Nov-Jan over dues rolling over to higher buckets Provisions for Q1 FY 2017-18 at ₹150 crore including ₹43 crore of additional provision to cover hard core NPAs of Nov-Jan period
Provision Coverage Ratio at 64%
Mr. Samit Ghosh, MD & CEO, Ujjivan Small Finance Bank said, “We have taken significant provision in this quarter based on the collection trends in the quarter. We have ensured 100% provision of the hard core NPAs of the November, December & January loan portfolio amounting to ₹ 150 crore. We have fully dedicated teams engaged on recovery at branches in affected states to optimize overdue collections. In addition we have set up specialized collection teams focussed on over dues over 90 days. This is yielding good results as shown with overall reduction in PAR in the quarter. We will continue monitoring the trend in the next quarters and ensure adequate provisioning for the balance NPAs.
Further the collection efficiency for the new business from January is back to normal which stands at 99.76%. On the business front, we have seen normalcy returning in terms of disbursements across states with disbursement crossing a monthly average of pre-demonetization level. Growth will kick-in from this quarter onwards for overall business.
On the SFB Branch roll out plans, we are on track with 52 branches already rolled out till now and there is a good interest from both existing MFI customers and open markets customers in terms of deposit generation”
Commenting on the performance of the company Ms. Sudha Suresh, MD & CEO Ujjivan Financial Services said, “Our Cost to income in absolute amount is in line with the expectation, however the ratio in percentage terms is higher due to the low base impact of flat loan book and reversal of interest income due to NPA. We expect cost to income ratio to consistently come down during the year.
As we await the schedule bank status, we are confident to raise deposits enabling our funding cost to come down by around 150 bps.
Our CAR is positioned comfortably at 19.83%. We expect this ratio to improve further with the run-down of the grandfathered bank loans. We expect a repayment of around 65-70% of these loans during this financial year”
Summary of Financial Performance – Q4 FY 16-17:
All the financials in this presentation are consolidated numbers
Total Income at ₹358.64 crore, an increase of 8.90% over Q1-FY17 and an increase of 5.48% over Q4-FY17
NII at ₹138.22 crore, a decrease of 19.66% over Q1-FY17 and an increase of 7.72% over Q4-FY17 NIM at 9.23 % in Q1-FY18 decreased from 12.96% in Q1-FY17 and an increase from 7.14% in Q4- FY17
Cost to Income ratio at 78%, increased from 45.6% in Q1-FY17 and 76.69 % from Q4-FY17 Net Loss at ₹74.94 crore
Deposit base of ₹403.7 Crore against ₹206.4 crore in March 2017 Average Cost of Deposits is 5.6%