Ujjivan Small Finance Bank reported a 59.7% rise in its net profit for the quarter ended June 2023 to ₹324.07 crore as compared to ₹202.94 crore in the same quarter last year. The bank’s net interest income (NII), which is the difference between interest earned and interest expended, during Q1FY24 increased 32.1% to ₹792.4 crore from ₹599.7 crore, YoY. Net interest margin (NIM) for the quarter declined 40 bps to 9.2% from 9.6%, YoY.
Pre-Provision Operating Profit (PPOP) jumped 52% to ₹457.89 crore from ₹300.56 crore, YoY. “During the quarter, we consciously reduced the excess liquidity which was driving negative carry and pulling our NIMs down. 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," said Ittira Davis, MD & CEO, Ujjivan Small Finance Bank. Also Read: Bajaj Finserv Q1 Results: Net profit jumps 48% to ₹1,943 crore; revenue rises 47% YoY On the asset quality front, gross non-performing assets (NPA) as a percentage of gross advances fell to 2.62% from 2.88% in the previous quarter. Net NPA as a percentage of net advances in Q1FY24 rose marginally to 0.06% from 0.04%, QoQ.
On an absolute basis, gross NPA in the June quarter decreased to ₹596.55 crore from ₹630.61 crore in the previous quarter, while net NPA increased to ₹12.62 crore from ₹9.04 crore, QoQ. “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," Davis said.
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