The net profit of Ujjivan Small Finance Bank (SFB) soared 86.6 per cent to ₹136.49 crore in the quarter ended March 31, 2021 as against ₹73.15 crore in the same period in the previous fiscal. However, for the full fiscal 2020-21, it reported a net profit of ₹8.3 crore as compared to ₹349.92 crore in 2019-20.
For the quarter ended March 31, 2021, Ujjivan SFB reported a 21 per cent drop in its net interest income of ₹368 crore as against ₹467 crore in the same period a year ago. Net interest margin was 7.9 per cent in the fourth quarter last fiscal versus 11.2 per cent a year ago. Other income grew 62.5 per cent to ₹117.29 crore in the January to March 2021 quarter versus ₹72.16 crore a year ago.
Also read: Resolution to appoint Samit Ghosh as MD and CEO, Ujjivan Financial Services not approved
The bank’s gross non performing assets shot up to ₹1,070.6 crore or 7.07 per cent of gross advances as on March 31, 2021 as against 0.97 per cent on March 31, 2020. Net NPAs also jumped to 2.93 per cent of net advances as on March 31, 2021 from 0.2 per cent a year ago.
₹74 crore write-offs
It made write-offs worth ₹74 crore in the fourth quarter of last fiscal while provision coverage ratio as on Mar 2021 was 60 per cent.
“We continue to carry ₹172 crore of Covid provisions which provides cushion for credit cost in upcoming months. As the business environment remains impacted due to pandemic, we are taking adequate steps to safeguard the interests of our employees, customers, investors and all other stakeholders,” said Nitin Chugh, MD and CEO, Ujjivan SFB.
