Ujjivan Small Finance Bank on Thursday reported a 64% decline in its net profit to Rs 109 crore for the third quarter amid a spike in bad loan provisions and higher interest expenses. The Bengaluru-based lender had logged a net profit of Rs 300 crore in the year-ago period.
Interest income grew 8% year-on-year to Rs 1,591 crore while interest expense rose 15% to Rs 704 crore during the quarter under review. Provisions (other than tax) and contingencies jumped 254% to Rs 223 crore.
The gross loan book grew 9.8% YoY to Rs30,466 crore. Micro group loans accounted for 45% of the book, against 56% in the same quarter last year. Sanjeev Nautiyal, MD & CEO, said the bank’s effort to diversify the loan book has resulted in an increase in the share of secured loan to 39% of total assets, against 28.3% as of December 2023.
Total deposits rose 16% YoY to Rs 34,494 crore, with the share of CASA being 25%. Gross NPA rose to 2.7%, from 2.1% in Q3FY24.
The bank said the board has approved an application to the Reserve Bank of India for a universal bank licence under the ‘on tap’ licensing guidelines. Only listed SFBs qualify for such a licence, as per the guidelines.