Ujjivan Small Finance Bank Ltd reported a 64% year-on-year drop in its profit during the three months ended December to Rs 109 crore due to a rise in provisions. Sequentially, the bank’s profit declined 53%.
The bank’s provisions and contingencies rose to Rs 223 crore, up sharply from Rs 63 crore a year ago.
A marginal rise in net interest income also capped the small finance bank’s net interest income at Rs 887 crore, up 3% year-on-year. As a result, net interest margin fell to 8.6% in the October-December period from 9.2% a quarter ago and 8.8% a year ago.
The asset quality of the small finance bank remained mixed during the quarter, with the gross non-performing asset ratio rising marginally to 2.68% as of December 31 from 2.52% in the previous quarter. The net NPA ratio remained unchanged from the previous quarter and stood at 0.56%.