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Ujjivan Financial services Q4- FY 2017 – 18 Result

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Disbursement at highest ever quarterly levels ₹2,262 crores;

reduction in NNPA to 0.7%; board recommends dividend of 5%

Portfolio grew 18.5% y-o-y to ₹7,560 crores, NIM at 10.6% for FY18

Collection Efficiency of 99.6% on loans disbursed since Jan’ 17

Chennai, May 10, 2018: Ujjivan Financial Services Ltd. [BSE: 539874; NSE: UJJIVAN], the holding company and promoter of its 100% subsidiary “UJJIVAN SMALL FINANCE BANK”, today announced its consolidated financial performance for the quarter and year ended March 31, 2018.

Summary of Business Performance – Q4 FY 2017-18:

The financials and ratios as below are based on consolidated numbers:

v Loan Book at ₹7,560 crore; growth of 6.5% over Q3-FY18 and an increase of 18.5% over Q4-FY17

v Disbursement for Q4-FY18 at ₹2,262 crore; an increase of 6.0% over Q3-FY18 and an increase of 60.8% over Q4-FY17. Disbursement for FY 2017-18 at ₹8,052 crore; an increase of 12.9% over FY 2016-17

v 7.6 lakh new borrowers added during this fiscal year and 2.2 lakh new borrowers in Q4-FY18

v Out of 464 branch network, 187 are full service banking outlets including 47 banking outlets in Unbanked Rural Centres (URCs), complying with the RBI prescribed norm of 25% URCs

v Secured portfolio increased to ₹406.4 crore in Q4-FY18 and now constitutes 5.4% to the portfolio

v New business from January 2017 is at 99.6% collection efficiency and constitutes 86% of the portfolio

v GNPA at 3.6% and NNPA at 0.7% in Q4-FY18 against 4.2% and 1.0% respectively in Q3-FY18

v Prudential write off of ₹177 crore in FY18 (covered by provisions), Provision Coverage Ratio at 81.5%

v Overall PAR reduced by ₹346 crore during FY18, PAR >0 stands at 4.0% and PAR>90 at 3.6% as of Mar’18

v Deposit base at ₹3,772 crore in Q4-FY18 as against ₹2,437 crore in Q3-FY18

Mr. Samit Ghosh, MD & CEO, Ujjivan Small Finance Bank said, “FY 2018 has been a fruitful year for Ujjivan with the completion of our first year of banking operations, despite the significant challenges we faced due to demonetisation. Our portfolio grew by 18.5% y-o-y with significant growth coming from non-MFI portfolio. The loans disbursed since January 2017 show an impressive collection efficiency of 99.6% and hence fresh delinquencies have been contained. We repaid majority of legacy borrowings and raised a deposit base of ₹3,772 crore. In the coming year, our focus is on building a strong retail deposit base and extending the reach of brand Ujjivan. We look forward to convert existing asset centres to full-fledged banking outlets and expect to have 475 banking outlets by March 2019. On the asset side, we expect MFI portfolio to grow steadily and the non-MFI portfolio to witness rapid growth. We, as an organisation, are undergoing multiple changes in terms of structure and employee training to equip ourselves better to establish Ujjivan as best in class mass market bank.”

Commenting on the performance of the company Ms. Sudha Suresh, MD & CEO, Ujjivan Financial Services said, “This quarter we have clocked the highest ever quarterly disbursement of ₹2,262 crore and closed the year with an overall portfolio of ₹7,560 crore. GNPA has reduced significantly from 4.2% in December 2017 to 3.6% in March 2018 and NNPA stands at 0.7%. Cost of funds has significantly reduced from 10.4% in FY17 to 9.0% in FY18 as we repaid a significant portion of high cost legacy borrowings by raising deposits at competitive prices. As on March 2018, we have rolled-out 187 full service banking outlets spread across 20 states including 47 banking outlets in URCs to expand our reach to unserved and under-served in the rural areas. We are expanding our product portfolio to suit the banking needs of retail customers, supported by an extensive marketing outreach for the bank. In all, we have built a strong foundation to take on the next phase of growth in the coming years. The board has recommended an equity dividend of 5%.”

Summary of Financial Performance – Q4 FY 2017-18:

The financials and ratios as below are based on consolidated numbers:

v Net Profit of ₹64.9 crore in Q4-FY18, an increase of 121.2% over Q3-FY18 and an increase of 235.2% over Q4-FY17

v Total Income of ₹460.9 crore in Q4-FY18, an increase of 20.0% over Q3-FY18 and an increase of 35.6% over Q4-FY17

v Net Interest Income of ₹210.9 crore in Q4-FY18, an increase of 7.7% over Q3-FY18 and an increase of 64.4% over Q4-FY17

v Net Interest Margin at 11.6% in Q4-FY18, a decrease from 11.8% in Q3-FY18 and an increase from 8.6% in Q4-FY17

v Cost to Income ratio at 57.0% in Q4-FY18, a decrease from 69.0% in Q3-FY18 and a decrease from 76.7% in Q4-FY17

v ROA at 2.8% and ROE at 15.0% for Q4-FY18 against 1.3% and 7.0% respectively for Q3-FY18

Summary of Financial Performance – FY 2017-18:

The financials and ratios as below are based on consolidated numbers:

v Net Profit of ₹7.3 crore in FY 2017-18, decrease from ₹207.7 crore in FY 2016-17 predominantly due to credit provisioning. Diluted EPS at ₹0.6 for FY 2017-18 against ₹17.1 in FY 2016-17

v Total Income of ₹1,581.7 crore in FY 2017-18, an increase of 13.2% over FY 2016-17

v Net Interest Income of ₹709.5 crore in FY 2017-18, an increase of 1.8% over FY 2016-17

v Net Interest Margin at 10.6% in FY 2017-18, a decrease from 12.6% in FY 2016-17

v Cost to Income ratio at 67.1% in FY 2017-18, an increase from 53.8% in FY 2016-17

v ROA at 0.1% and ROE at 0.4% for FY 2017-18 against 2.9% and 14.1% respectively in FY 2016-17

v The board has recommended a dividend at the rate of 5% for the FY 2017-18

About Ujjivan Financial Services Limited:

Ujjivan Financial Services Ltd. is the holding company and promoter of its 100% subsidiary “Ujjivan Small Finance Bank”, which has started banking operations from February 2017. It is registered as an NBFC-Non-Deposit-taking Systemically Important – Core Investment Company – (NBFC-ND-SI-CIC) with RBI.

Ujjivan Small Finance Bank serves over 37.1 lakh active customers through 464 branches and 11,242 employees spread across 209 districts and 24 states in India. Its Gross Loan Book stands at ₹7,560 crore and it has over 187 full-service banking outlets with a deposit base of ₹3,772 crore as of March 31, 2018.

Ujjivan Financial Services Ltd. has a robust CSR Initiative in operation in collaboration with Parinaam Foundation and Piramal Foundation. These include a range of services in the areas of health & sanitation, education and financial literacy programs. Many community development programs under the head “Chote Kadam” have been initiated with the support of Parinaam Foundation.

Web: Twitter: @ UjjivanSFB

Safe Harbour:

Some of the statements in this document that are not historical facts are forward-looking statements. These forward- looking statements include our financial and growth projections as well as statements concerning our plans, strategies, intentions and beliefs concerning our business and the markets in which we operate. These statements are based on information currently available to us, and we assume no obligation to update these statements as circumstances change. There are risks and uncertainties that could cause actual events to differ materially from these forward-looking statements. These risks include, but are not limited to, the level of market demand for our services, the highly-competitive market for the types of services that we offer, market conditions that could cause our customers to reduce their spending for our services, our ability to create, acquire and build new businesses and to grow our existing businesses, our ability to attract and retain qualified personnel, currency fluctuations and market conditions in India and elsewhere around the world, and other risks not specifically mentioned herein but those that are common to industry.

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