Ujjivan SFB garners 145% growth in Q4 PAT, declares dividend; here is the full report of quarter
- Ujjivan SFB touched a new milestone in disbursements in Q4FY23, while posting a triple-digit growth YoY in net profit. The lender has declared final dividend for FY23.
Ujjivan Small Finance Bank registered strong growth in the bottom-line and top-line front for the fourth quarter of FY23. PAT comes to around ₹309.50 crore in Q4FY23, rising by 144.62% from ₹126.52 crore a year ago same period. The profitability was driven by best-ever performances across all parameters.
The SFB's disbursement was at ₹6,001 crore in Q4FY23, and ₹20,037 crore for the full year FY23, crossing major milestones. The lender saw an all-round growth with Housing and FIG crossing milestones of ₹400 crore and ₹300 crore in quarterly disbursement --- disbursing ₹439 crore and ₹318 crore respectively -- which is the highest ever for both the segments.
Also, the lender recorded gross loans of ₹24,085 crore up by 33% YoY and 10% QoQ.
Net interest income (NII) which is the difference between interest earned and expended, came in at ₹738.01 crore in Q4FY23, registering a growth of a whopping 35.66% from ₹543.98 crore in Q4FY22 and also up by 5.89% from ₹696.95 crore in December 2022 quarter.
Also, the SFB posted a provision loss of ₹1.93 crore in March 2023 quarter -- widening from a provision loss of ₹22 lakh in Q3FY23. In March 2022 quarter, the provisions were at ₹90.40 crore.
In terms of asset quality, gross NPA dipped steeply to 2.88% in Q4FY23 as against 3.64% in Q3FY23 and 7.34%. While net NPA also slipped to 0.04% as against 0.05% in December 2022 quarter and 0.61% in March 2022 quarter.
Read here: Asian Paints Q4 result: Net profit up 45% to ₹1,234 crore, dividend declared
Ittira Davis, MD & CEO, of Ujjivan Small Finance Bank said, “FY23 started on a high note and ended on even higher note as Q4FY23 marked several milestones in the Bank’s history, set benchmarks and achieved success on multiple fronts. We delivered an all-round performance and met all our guidances. On one hand, we made new benchmarks for growth with all-time high disbursements, and on the other hand asset quality continued to show sequential and sustained improvement. Our deposits continued to outpace asset growth crossing ₹25,000 crore mark."
Further, the lender posted a healthy growth of 40% YoY and 10% QoQ in total deposits to the tune of ₹25,538 crore in Q4FY23. Retail TD saw 69% YoY and 10% QoQ growth, while the CASA ratio was at 26.4% in the quarter under review.
Davis added, "We had a negligible credit cost for the year on the back of sustained collections – reduced slippages and strong recoveries. While, slippages have normalised towards the year-end, recoveries may continue for a while. Our continued strong collections will ensure a sub-100 bps credit cost in FY24 as well."
For FY24, Davis said, "We would be building on the base of FY23. The contribution of secured products in growth would see improvement as our strategy/ execution for respective verticals take clearer shape. Overall, we remain confident of the business growth (>25% gross loan book growth) and profitability (~22% RoE). We remain committed to our journey towards becoming a leading mass-market bank and contributing towards digital inclusion in India.”
Read here: Dr Lal PathLabs Q4 Earnings: Net profit falls 7.5% YoY to ₹56.7 crore; declares dividend of ₹6 per share
Ujjivan SFB continued picked-up momentum in branch expansion during the quarter with 31 new branches, and Davis said that it will continue it in the new fiscal with around 100 branches.
On the merger with its promoter, Davis said, "We have filed our application with Honourable NCLT, Bengaluru, and are awaiting observations/ communication. We will keep the stakeholders informed on the same."
Meanwhile, in a major good news for shareholders, Ujjivan's board members recommended a final dividend of 5% i.e. Rs.0.5 each, per equity share of face value Rs. 10 each, out of the net profits for the year ended March 31, 2023. This is in addition to the 7.5% dividend already paid in the fiscal.
On BSE, Ujjivan SFB's share price closed at ₹29.25 apiece up by 0.86%.
Catch all the Business News , Market News , Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
- Top Gainers
- Top Losers
- 52 Week High