Ujjivan Financial Services on Thursday reported a consolidated net loss of Rs 11.95 crore for the quarter ended September, as against a profit of Rs 73 crore in the year-ago period and a loss of Rs 74.94 crore a quarter ago. The company’s total income rose 5.89% year-on-year (y-o-y) to Rs 378.03 crore, even as net interest income (NII) fell 12.5% to Rs 164.57 crore. The net interest margin (NIM) at 10.55% in Q2-FY18, an increase from 9.23% in Q1-FY18. Ujjivan, which operates primarily in the microfinance segment, had seen collections take a hit in the wake of demonetisation and continued to reel under stress till the first quarter of FY18. Management attributed the sequential reduction in losses to lower credit cost and business volumes returning to normal levels. Sudha Suresh, managing director and chief executive officer, said, “We saw credit cost in Q1 of Rs 159 crore and this quarter we had roughly about Rs 88 crore. It seems we are fairly well-covered in terms of the demonetisation impact in terms of our credit costs.” The gross non-performing asset (NPA) ratio stood at 4.99%, down from 6.16% a quarter ago and the net NPA ratio fell to 1.38% from 2.3% at the end of June.
Improvement in business volumes also helped, Suresh said, with disbursals of Rs 1,954 crore during the quarter, up 15% from the June quarter. The company’s gross loan book stood at Rs 6,669 crore, up 3.25% over Q1FY18 and 2.83% higher than in the year-ago period. The deposit base grew to Rs 1,349 crore from Rs 404 crore at the end of June, driven largely by certificates of deposit (CDs) worth over Rs 600 crore garnered during the second quarter. Ujjivan received scheduled-commercial-bank status during the quarter and, as a result, saw a fall in its cost of funds — to 9.65% from 10.41% in FY17.