Ujjivan Financial reports Q2 profit of ₹44.3 crore
Ujjivan Financial Services’ total income increased 23.6% to ₹467.40 crore in September quarter
New Delhi: Ujjivan Financial Services Wednesday reported a consolidated net profit of ₹44.3 crore in the second quarter ended September 30 of this fiscal.
The company had registered a net loss of ₹12 crore in the corresponding July-September period of 2017-18.
Total income increased 23.6% to ₹467.40 crore in the reported quarter, it said in a release.
The company’s gross loan book stood at ₹8,317 crore at the end of September quarter, up 24.7% from the year-ago period.
Disbursements grew 22% year-on-year to ₹8,167 crore, it said.
Ujjivan Financial Services, the holding company and promoter of its 100% subsidiary Ujjivan Small Finance Bank, said it witnessed improved growth and building of the business momentum during the quarter.
“We expect the growth to pick up in second half(October-March) leading to 30-35% AUM growth in 2018-19. We continue to improve our retail deposits business driven by expansion of our branch network and our continuous marketing efforts. “The quarter also witnessed stressed liquidity in money market. However, Ujjivan was not impacted because of our conservative asset & liability structure of relatively short-term assets & longer-term liabilities inherited as a microfinance institution,” said Samit Ghosh, MD & CEO, Ujjivan Small Finance Bank.
In order to strengthen the balance sheet, the company is planning to raise $50 million of tier-II capital from IFC by this fiscal, which will serve dual purpose of providing long-term funding and improve capital adequacy, Ghosh said.
Ujjivan Financial Services MD & CEO Ittira Davis said: “Cost of funds has reduced from 8.6% in June quarter 2018-19 to 8.5% in the September quarter even though the interest rate is trending upwards as we replaced high cost legacy loans with customer deposits.”
Stock of Ujjivan Financial closed at ₹217.50 on BSE, up 3.03% from the previous close.
This story has been published from a wire agency feed without modifications to the text. Only the headline has been changed.
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