Ujjivan Small Finance Bank (Ujjivan SFB), one of the leading small finance banks in India, has reported a net profit of ₹300 crore for the quarter ended December 2023, marking a year-on-year increase of 2.34 per cent compared to ₹29,319 crore for the same quarter last year. This is an impressive feat considering the challenging economic environment due to the Covid-19 pandemic.
The bank’s operating profit grew by 17.5 per cent to ₹45,730 crore from ₹38,892 crore in the Q3 previous year1. The bank attributed its strong performance to its diversified loan portfolio, robust deposit growth, improved asset quality, and prudent cost management.
The bank’s deposit stood at ₹29,669 crore up by 28 per cent year-on-year. The bank’s gross non-performing assets (NPAs) ratio improved to 1.7 per cent from 2.1 per cent in the previous quarter, while the net NPA ratio improved to 0.6 per cent from 0.9 per cent. The bank’s provision coverage ratio stood at 79.4 per cent as of December 31, 20231.
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Ujjivan Bank’s Q3 operating profit, CEO’s statement
Ujjivan Small Finance Bank (Ujjivan SFB) MD and CEO, Ittira Davis, stated, “Our guidance on loan and deposit book growth remains intact.” According to our previous guidance, credit cost will continue to stay below 100 basis points. In line with our strategy, we will continue to expand our physical presence across the country. We now have 729 branches overall after 29 new ones opened this quarter.
We plan to add approximately 23 new branches in Q4. Furthermore, given that the Hon’ble NCLT has scheduled a hearing for January 30, 24, we assume that we are nearing the completion of our merger with our holding company. we expect a positive outcome. Having said that, we expect to complete the merger process during the current fiscal year.
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Ujjivan Small Finance Bank (Ujjivan SFB)
Ujjivan Small Finance Bank is a subsidiary of Ujjivan Financial Services Limited, which is listed on the National Stock Exchange and the Bombay Stock Exchange. The bank commenced its operations in February 2017 and offers a range of banking products and services to the underserved and unserved segments of the population. The bank has a customer base of over 5.6 million and a network of 729 branches and 16,239 banking access points across 24 states and union territories in India.
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The bank’s vision is to be the most trusted and preferred small finance bank for the mass market segment, with a mission to empower the financially excluded by providing them with a range of banking solutions that are accessible, affordable, and convenient.
The bank’s stock price closed at ₹ 32.95 per share on January 24, 2024, up by 1.54 per cent from the previous day’s closing price of ₹ 32.45 per share.
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