Ujjivan Small Finance Bank Q3 results: Reports net loss of Rs 279 cr

Kolkata: has suffered a net loss of Rs 279 crore in the December quarter on high credit cost amid pandemic related stress on borrowers. The bank had made a net profit of Rs 90 crore in the year ago period.

Its operating profit rose 42% at Rs 204 crore against Rs 144 crore for the same period, backed by growth in treasury income, but a 19 times higher provisioning led to a net loss. Provisions made in the third quarter was at Rs 584 crore against a mere Rs 31 crore in the year ago period.

Treasury income was higher at Rs 93 crore against Rs 39 crore for the same period.

The bank’s gross non-performing assets ratio remained stable at 1% as against 0.9% a year back but gross NPA would have been 4.8% had it recognized NPA as per banking norms. The Supreme Court has ordered banks not to recognize NPAs since August 31, 2020 to provide relief to borrowers amid the Covid-19 pandemic.

Ujjivan has restructured loans amounting to Rs 852 crore, which is 8.5% of its total portfolio. Its net interest margin dipped to 9.7% from 10.9%.

“Around 95% of customers are paying monthly instalments as of January as against 91% in October 2020 which is a healthy sign,” bank chief executive Nitin Chugh said. “Collections in non-delinquent accounts are also moving close to pre-COVID levels,” he was quoted as saying in a note issued by the bank.

Its gross advances stood at Rs 13,638 crore while it disbursed Rs 2,184 crore loans in the quarter under review as compared with Rs 3,403 crore in the year ago period.

The bank’s one-fourth of the advances is backed by securities, while micro loans are unsecured.

Deposits grew 9% year-on-year to Rs 11,617 crore.