Ujjivan Small Finance Bank rose 3.51% to Rs 53.15 after standalone net profit surged 97.9% to Rs 89.66 crore on 52.9% jump in total income to Rs 781.31 crore in Q3 December 2019 over Q3 December 2018.
Profit before tax (PBT) soared 72.3% to Rs 113.48 crore in Q3 December 2019 as against Rs 65.86 crore in Q3 December 2018. The Q3 result was declared after trading hours yesterday, 22 January 2020.
The bank's gross non-performing assets (NPAs) stood at Rs 129.45 crore as on 31 December 2019 as against Rs 109.40 crore as on 30 September 2019 and Rs 127.77 crore as on 31 December 2018.
The ratio of gross NPAs to gross advances stood at 0.95% as on 31 December 2019 as against 0.85% as on 30 September 2019 and 1.41% as on 31 December 2018.
The ratio of net NPAs to net advances stood at 0.38% as on 31 December 2019 as against 0.33% as on 30 September 2019 and 0.26% as on 31 December 2018.
The bank's provisions and contingencies (excluding tax provisions) surged 336.14% to Rs 30.53 crore in Q3 December 2019 over Q3 December 2018.
Provision coverage ratio of the bank was at 60% as on 31 December 2019.
Net Interest Income (NII) grew 52.10% to Rs 426.5 crore during Q3 December 2019 from Rs 280.4 crore in Q3 December 2018. Net Interest Margin (NIM) for the quarter stood at 10.9%. The bank's disbursement for the quarter stood at Rs 3,403 crore, registering an increase of 18% Y-o-Y.
The Current Account and Savings Account (CASA) ratio stood at 12% in Q3 December 2019 as compared to 10% in Q3 December 2018. The bank's return on asset (ROA) for Q3 December 2019 stood at 2.1% as against 14% recorded in Q3 December 2018. Return on equity (ROE) stood at 1.7% in Q3 December 2019 as compared to 10.4% recorded in Q3 December 2018.
Commenting on the Q3 performance, Nitin Chugh, the managing director & CEO of Ujjivan Small Finance Bank, said that, "It was remarkable in various aspects: (a) we maintained good asset quality despite market challenges, (b) increased digital transactions, and (c) continued to reduce TAT in our various asset businesses. Disbursement and book growth in Q3 is healthy and in line with our deliberate strategy to moderate customer acquisition in select pockets and focuses on existing customers. However, NII growth, stable NIM, and lower cost of funds led to net profit growing 98% Y-o-Y to Rs 90 crores."
The bank is reporting their first ever quarterly result after being listed on the stock exchanges. Shares of Ujjivan Small Finance Bank (Ujjivan) were listed on 12 December 2019 at Rs 58 on the BSE, premium of 56.76% to initial public offer (IPO) price of Rs 37. It closed at Rs 55.90 on BSE, a premium of 51.08% over IPO price.
The issue opened for bidding on 2 December 2019 and closed on 4 December 2019. The price band was fixed at Rs 36 to Rs 37 per share. The IPO of Ujjivan received bids for 2053.80 crore shares as against 12.39 crore shares on offer, as per the National Stock Exchange of India (NSE) data. The issue was subscribed 165.68 times.
Ujjivan Small Finance Bank is spread across 24 states and union territories end March 2019. The bank has strong 4.94 million customers base operated from 552 banking outlets end September 2019.
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