Ujjivan Small Finance Bank reported a net loss of ₹33.83 crore in the third quarter of the fiscal year 2021-22 as against a net loss of ₹278.83 crore in the same period a year ago.
In a separate stock exchange filing on Saturday, Ujjivan SFB said its board has approved the issuance of equity shares up to ₹600 croresincluding premium through Qualified Institutional Placement.
The bank’s net interest income increased by five per cent for the quarter ended December 31, 2021 to ₹454 crore from R₹432.28 crore in the same quarter last fiscal.
Net interest margin was down at 9.1 per cent in the third quarter of this fiscal versus 9.7 per cent a year ago.
Other income declined by 7.2 per cent on a year-on-year basis to ₹ 90.82 crore in the third quarter of the fiscal.
The bank’s provisions declined by 67.8 per cent to ₹186.97 crore in the third quarter of the fiscal from R580.84 crore a year ago.
Asset quality deteriorated on a year on year basis but showed some improvement sequentially.
NPAs
Gross non performing assets was 9.8 per cent of gross advances as on December 31, 2021 compared to 0.96 per cent a year ago. However, it was lower from 11.8 per cent as on September 30, 2021.
Net NPA ratio was 1.67 per cent as on December 31, 2021 compared to 3.29 per cent at the end of the second quarter this fiscal and 0.05 per cent as on December 31, 2020.
Write offs amounted to ₹152 crore in the third quarter of the fiscal and provision coverage ratio was 84 per cent as on December 31, 2021.
Higher business volumes
“Last couple of months have been challenging due to internal and external issues, despite that we focussed on business and streamlined processes which lead to improved portfolio quality, higher business volumes and reduced attrition, in-line with our 100-day plan,” said Ittira Davis, Managing Director and CEO, Ujjivan SFB.
The bank also reported consistent improvement in collections with December 2021 collection efficiency (against due for the month) at 97 per cent up from 95 per cent in September 2021.
“We continue to attract good talent and over last few months have strengthened the leadership team further; our CIO and Head – Digital Banking have already joined while CFO and Head – Internal audit are joining in coming months,” Davis said.
The bank’s board has appointed MD Ramesh Murthy as Chief Financial Officer with effect from March 14, 2022.