Ujjivan Small Finance Bank Ltd. (BSE: 542904; NSE: UJJIVANSFB) has announced robust financial results for the quarter ended June 30, 2024, marking a significant 19% year-over-year growth in its gross loan book, which now stands at ₹30,069 crore. The bank’s secured book also improved to 31.3% from 30.2% in the previous quarter, underscoring a strategic shift towards more secure lending.
The bank’s deposits reached ₹32,514 crore, reflecting a 22% increase year-over-year. The CASA ratio, however, slightly decreased to 25.6% from 26.5% as of March 2024. The bank maintained a healthy asset quality with GNPA and NNPA ratios at 2.3% and 0.4%, respectively. Collection efficiency remained strong at approximately 98%, contributing to a stable portfolio at risk of 4.2%.
In Kolkata, the bank has seen positive momentum with its retail deposit growth. The city’s market has been crucial in bolstering the bank’s CASA deposits, which have grown by 27% YoY. This expansion in Kolkata reflects a growing confidence in the bank’s financial stability and its ability to offer competitive deposit products.Ujjivan Small Finance Bank’s MD & CEO, Sanjeev Nautiyal, highlighted the bank’s strategic focus on increasing the proportion of secured loans and enhancing its deposit base. Despite a slight decrease in net profit due to normalization in credit costs, the bank’s return ratios remain robust with RoA at 2.9% and RoE at 20.9%.
