Ujjivan SFB Q1 FY25 Results Highlights: Net Profit Drops 7% to ₹301 crore

Synopsis

Ujjivan Small Finance Bank (Ujjivan SFB) announced a 7% year-on-year (YoY) decrease in net profit, totaling ₹301 crore for the April-June quarter of FY25, down from ₹324 crore in the same quarter last year. This decline was largely attributed to higher provisions. Sequentially, net profit fell by 9% from ₹330 crore in Q4 FY24.

Ujjivan SFB Q1 FY25 Results Highlights

Ujjivan Small Finance Bank (Ujjivan SFB) reported a 7% year-on-year (YoY) decline in net profit, amounting to ₹301 crore for the April-June quarter of FY25, compared to ₹324 crore in the same period the previous year. This reduction was primarily due to increased provisions. On a sequential basis, net profit dropped by 9% from ₹330 crore in Q4 FY24.

Provisions for Q1 FY25 surged by 322% to ₹110 crore, up from ₹26 crore in the corresponding quarter of the previous year.

The net interest income (NII) for Ujjivan SFB saw a YoY increase of 19%, reaching ₹941 crore. The net interest margin (NIM) also improved slightly, rising to 9.3% from 9.2% a year earlier.

As of June 2024, the gross loan book of the Bengaluru-based bank was ₹30,069 crore, representing a 19% increase from ₹25,326 crore in June 2023. The proportion of the secured segment in the total loan book grew to 31.3% from 27% in June 2023, and was up from 30.2% in March 2024.

Deposits showed a YoY growth of 22%, totaling ₹32,514 crore. The low-cost current account savings account (CASA) deposits rose by 27% YoY, reaching ₹8,334 crore.

The CASA ratio stood at 25.6% as of June 2024, slightly down from 26.5% in March 2024. Gross non-performing assets (GNPA) increased to 2.3% in June 2024 from 2.1% in March 2024, while net NPAs rose to 0.4% from 0.3% during the same period.

Ujjivan SFB Management Commentary

“…we are on track to meet our stated objective and will ensure to improve the secured book contribution to 40 per cent of the total gross advances by the end of the next financial year. New business segments like micro-mortgages, gold loans, and vehicle finance will play a meaningful role, offering an enhanced product suite to our customers and will see a significant spurt in business volumes, offsetting the impact on yields due to the rising secured book proportion,” said Sanjeev Nautiyal, MD & CEO, Ujjivan Small Finance Bank.

About Ujjivan SFB 

Ujjivan Small Finance Bank Limited, licensed by the RBI, operates as a wholly owned subsidiary of Ujjivan Financial Services Ltd., a prominent microfinance organization and one of the initial ten recipients of small finance bank licenses. With a network exceeding 160 branches across 24 states, the bank offers a comprehensive range of banking services, specifically targeting the underserved market.