Sustaining and Scaling New Heights

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Ujjivan Small Finance Bank ltd. [BSE: 542904; NSE: UJJIVANSFB], today announced its financial performance for the quarter ended June 30, 2023

Summary of Ujjivan Small Finance Bank Business Performance – Q1FY24

v  Assets

·        Disbursements were at ₹5,284 crore in Q1FY24 up 22% Y-o-Y

·        Continued strong quarterly disbursement in Housing and FIG; disbursed ₹418 crore/ ₹320 crore respectively – highest ever for both the segments

·        Gross loan book at ₹25,326* crore up 30%/5% Y-o-Y/Q-o-Q

v  Collection and Asset Quality

·        Continued traction on Collections with ~99% efficiency in Jun’23; NDA collection consistently at ~100%

·        Portfolio at risk at stable at 3.8% as of Jun’23*

·        GNPA declined to 2.4% as of Jun’23 vs 2.6% as of Mar’23; NNPA continues to be negligible at 0.06% as on Jun’23

·        Total of ₹ 60 crore written-off in Q1FY24; Provision coverage ratio as on Jun’23 is 97.6%#

Mr. Ittira Davis, MD & CEO, Ujjivan Small Finance Bank said, “FY24 has started on a very strong note as we hit another highest ever profit figure. The growth has come on the strong platform built during FY23. Our disbursement has been strong, despite Q1 being seasonally weakest quarter, taking our loan book past ₹25,000 crore mark. Among secured assets, Affordable Housing and FIG continues to show strong growth, while other products will start picking-up towards latter half of the year. During the quarter, we consciously reduced the excess liquidity which was driving negative carry and pulling our NIMs down. Deposits were up 45% Y-o-Y/ 4% Q-o-Q driven by retail focus. Our credit cost for the quarter was minimal on the back of strong collections. While, slippages continue to be under control, NPA recoveries have started to move towards normalization. Bad debt recoveries continue to be strong; we expect the same to be substantial this fiscal as well albeit lower than FY23. We remain confident of our sub-100 bps credit cost for FY24. We expanded our physical presence by 32 new branches during the quarter and look forward to add ~70 more branches during Jul’23-Mar’24. Our vvv* based mobile banking app – “Hello Ujjivan” targeting non-tech savvy customers continues to do well with 2.7+ lakh customer downloads. Customers are increasingly using the app to transact. We are hopeful that “Hello Ujjivan” will bring several long-term benefits to the business and the society as well.

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