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Ujjivan Financial Services recorded a profit of ₹29.32 crore in the third quarter of this fiscal (FY18) against a loss of ₹11.95 crore in Q2 due to lower credit and funding costs.
The company’s total income rose to ₹384.13 crore, a 1.61 per cent increase over Q2 FY18 and 3.45 per cent over Q3 FY17.
Samit Ghosh, MD and CEO, Ujjivan Small Finance Bank, said: “This quarter has been significant in terms of return to profitability with good growth in disbursements and reduction of credit and funding costs. Our business is back to normal levels with an increase in portfolio this quarter, while our disbursements steadily increased with a 28 per cent growth year-on-year.
“We recorded robust growth in disbursements in the MSME and affordable housing segments this quarter in-line with our plan. The collection efficiency continues impressively at 99.7 per cent for all new business from January 2017 till December,” he added.
Sudha Suresh, MD and CEO, said: “We have posted higher NIM for the banking operations at 11.08 per cent in Q3 FY18 compared with 10.20 per cent in Q2 FY18.
“This is due to reduction in finance cost by repayment of high-cost legacy loans and mobilisation of deposits at lower costs. Our average cost of funds has reduced to 9.3 per cent as of Q3 FY18 from 10.4 per cent in FY17.”
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