Ujjivan Small Finance Bank Q1 net profit dips 41% on higher provisioning

The profit dipped as we had made provision of Rs 129 crore on account of Covid, the bank's managing director and CEO Nitin Chugh said

Small finance lender Ujjivan Small Finance Bank on Friday reported a 41 per cent decline in net profit to Rs 55 crore in the quarter ended June due to higher provision related to Covid-19.

The bank had reported a profit after tax of Rs 94 crore in the same quarter of previous fiscal.

The profit dipped as we had made provision of Rs 129 crore on account of Covid, the bank's managing director and CEO Nitin Chugh said.

The bank's cumulative provision for Covid-19 stood at Rs 199 crore as of June 2020.

Net interest income was up 30 per cent to Rs 458 crore during the quarter. Net interest margin was at 10.2 per cent as against 10.5 per cent in the same period of last fiscal.

Chugh said close to 47 per cent of the bank's total loan book is under moratorium.

Gross NPA was at 1 per cent and net NPA at 0.2 per cent as against 0.8 per cent and 0.3 per cent respectively as of June 2019.

During the quarter, disbursements were at Rs 474 crore as against Rs 2,959 crore.

Disbursements were muted due to which profitability was impacted and advances growth was moderate, he said.

Concerted efforts towards business normalcy remained in full force for the first quarter, reflecting in the bank's improved collection efficiency of 54 per cent for June which further rose to 59 per cent up to July 30, Chugh said.

Deposit base stood at Rs 11,057 crore as of June 20 covering 77 per cent of total advances against 68 per cent as of June 19.

The lender's capital adequacy ratio remained healthy at 29 per cent, with tier-1 capital at 28 per cent in the quarter. Its liquidity coverage ratio was at 453 per cent.



Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel