Increasing diversification in Asset Mix; Secured products contributing strongly; 9MFY25 NIM at 9.0%
Gross loan book at ₹ 30,466 crore up 10% YoY; Secured book at 39% as of Dec’24 vs 35% as of Sep’24; GNPA / NNPA for the quarter stands at 2.7% / 0.6%; PCR stands at 80% Deposits at ₹ 34,494 crore up 16% YoY; CASA up 15% YoY; CASA ratio at 25%
Ujjivan Small Finance Bank ltd. [BSE: 542904; NSE: UJJIVANSFB], today announced its financial performance for the quarter ended December, 2024
Summary of Ujjivan Small Finance Bank Business Performance – Q3FY25
- Assets
- Gross loan book at ₹ 30,466* crore up 9.8% YoY / 0.4% QoQ
- Secured book at 39.3% as of Dec’24 vs 28.3% as of Dec’23 / 34.9% as of Sep’24
- Secured book up 13.3% QoQ and 52.0% YoY
- Collection and Asset Quality
- Overall Collection Efficiency at ~96% in Dec’24;
- Bucket X collection efficiency improving for Group and Individual Loan book; at 99.3% as of Dec’24
- Portfolio at Risk*/GNPA*/NNPA* at 5.4%/2.7%/0.6% respectively as of Dec’24; for Sep’24 at 5.1%/ 2.5%/ 0.6% respectively; Q3FY25 write-off at ₹ 30 crore;
- Accelerated Provision taken in Q3 of ₹ 30 crore; Provision coverage ratio as of Dec’24 is 80%#
- Deposits
- Deposits at ₹ 34,494 crore as of Dec’24 up 16.3% YoY / 1.2% QoQ
- CASA at ₹ 8,662 crore up 15% YoY; CASA ratio at 25.1% as of Dec’24
- Retail TD^ continues to grow and as of Dec’24 is ₹ 16,612 crore, up 29.5% YoY / 4.4% QoQ
- Financials
- Q3FY25 NII of ₹ 887 crore up 3.1% YoY; NIM at 8.6% for Q3FY25
- Opex to Avg assets improved to 6.2% in Q3FY25 vs 6.4% in Q2FY25
- Q3FY25 PPoP at ₹ 359 crore; Q3FY25 Adjusted$ PAT at ₹ 132 Crore
- Q3FY25 Adjusted$ RoA / RoE at 1.2% / 8.8%
- Capital and Liquidity
- Capital adequacy ratio at 23.9%
- Provisional Daily Average LCR for Dec’24 was 130.4%
* Without adjusting IBPC & Securitization of ₹ 199 crore / ₹ 579 crore / ₹ 1,596 crore as on Dec 2024 / Sep 2024 / Dec 2023
^ Retail TDs are TDs less than ₹ 3 crore
# Floating provision of ₹ 250 crore continues to be on books & can be utilized for making specific provisions in future during extraordinary circumstances, with prior approval from the RBI. Of this ₹ 30 crore was moved to Tier II capital in Jun’22 and ₹170 crore is earmarked for PCR calculation.
$ Adjusted for accelerated provision of ₹ 30 crore
Mr. Sanjeev Nautiyal, MD & CEO, Ujjivan Small Finance Bank said, “Q3FY25 has been a healthy quarter wherein the diversification of loan book is showing consistent improvement. Our strategy towards more secured book has seen accelerated results contributing 39% to the total asset loan growing 13% QoQ and 52% YoY. These efforts enabled the loan book to grow to ₹ 30,466 crore up 0.4% QoQ and 10% YoY. Being a responsible lender, Bank undertook a proactive decision to effect reduction in interest rates in Group loans (GL) and Individual loans (IL) offering competitive rates to our customers w.e.f. January 01, 2025. This will act as an enabler to acquire quality customers. Parallelly, we are keeping a close watch on the evolving Microfinance space and navigating it appropriately. Few pockets of stress visible earlier are now demonstrating healthy trends. X-Bucket collection efficiency in GL & IL has improved to 99.3% in Dec’24 vs 99.0% in Aug’24. Owing to the visible green shoots, we have seen higher disbursements during the first 3 weeks of Q4FY25. We are geared to pursue healthy business as the situation in different states approach towards normalcy. Secured businesses are making perpetual and determined strides, this year registering a ~40% YTD growth and poised to register a stronger growth for full year FY25. To manage asset quality better, Bank also engaged in a sale of stressed loan assets to the tune of ₹ 270 crore. Bank has also taken an accelerated provision of ₹ 30 crore to be better cushioned from any future exigencies. Post which GNPA/NNPA as on Dec’24 stands at 2.7%/0.6% with a comfortable PCR of 80%. Deposit book at ₹ 34,494 crore as of Dec’24 is up 1.2% QoQ and 16.3% YoY. CASA ratio at 25.1% as of Dec’24 continued to be healthy. Bank is in the process of enabling some structural changes in its liability strategy enhancing focus to serve more targeted segments of affluent customers largely classified under Non-Residents, Corporate Salary and Traders. New products in our product suite affiliated post receipt of AD-1 licence will also enhance offerings and improve customer base in-line with our above stated strategy.
Finally, I am happy to share that we will be shortly moving the application to RBI for transition to a Universal Bank having received approval of the Board in the meeting held today.”
