Well-capitalized with CAR at 31%; Additional COVID provision of ₹ 100 Cr in Q2FY21; Cumulative COVID provision of ₹ 299 Cr (2.2% of loan book)

Bengaluru, November 07, 2020 (GPN): Ujjivan Small Finance Bank ltd. [BSE: 542904; NSE: UJJIVANSFB], today announced its financial performance for the half year and quarter ended September 30, 2020. 

Summary of Ujjivan Small Finance Bank Business Performance – Q2 FY 2020-21

• Gross Advances at ₹13,890 crore; grew 8% over Sep’19
• Non-MicroBanking* portfolio contributes 24% of the portfolio against 21% as of Sep’19
• Disbursement for Q2FY21 at ₹1,458 crore vs ₹3,606 crore at Q2FY20; Sep’20 disbursement at ₹556 crore  
• Secured portfolio is 23% of the total portfolio as on Sep’20 against 19% in Sep’19
• GNPA at 1.0% and NNPA at 0.1% against 0.9% and 0.3% respectively as of Sep’19. The Bank has not recognised any NPAs since August 31, 2020, in line with the interim order of Hon. Supreme Court. If the said Order was not given effect to, pro-forma GNPA & NNPA would have been 1.2% & 0.3% respectively. 
• Deposits at ₹10,743 crore as of Sep’20 covering 77% of total advances 
• Retail deposits at 49% of the total deposits vs. 42% in Sep’19; CASA ratio at 16% vs. 12% in Sep’19
• Net Profit of ₹96 crore in Q2FY21 against ₹93 crore in Q2FY20
• Net Interest Income of ₹470 crore in Q2FY21 up by 21% over Q2FY20
• Net Interest Margin at 10.2% in Q2FY21, against 10.8% in Q2FY20
• Cost to Income ratio at 56.6% in Q2FY21 vs. 69.5% in Q2FY20   
• ROA/ ROE at 2.0%/11.6% in Q2FY21 vs. 2.4%/ 18.9% in Q2FY20; PPoP ROA at 4.9% in Q2FY21 vs. 3.7% in Q2FY20
• Capital adequacy ratio at 31%, with Tier-1 capital at 30%; Liquidity coverage ratio at 177% as of Sep’20

Mr. Nitin Chugh, MD & CEO, Ujjivan Small Finance Bank said, “We are pleased with the collection trends as Oct’20 collection efficiency reached 93% including all collections/ 88% against Oct’20 dues. This has improved significantly over Sep’20 and Jun’20 collections at 89%/59% – including all collections. 91% of customers have started paying since end of moratorium on 31^st Aug’20. We believe our collections are amongst the best in the industry. We continue to invest in the business and take proactive actions towards creating a strong and sustainable franchise. As the business environment is opening up gradually, we disbursed ₹1,458 crore in Q2 reaching close to half of the pre-covid levels. We utilised this period to ramp-up our liability business which is evident from the increased traction in customer acquisition (5.1 lakh deposit accounts in H1FY21), improving retail deposits (49% of total deposits as against 42% in Sep’19) and CASA (16% as against 12% in Sep’19). Another achievement of this quarter is the reduction in cost of funds by 30 bps Q-o-Q to 7.4%. As we strive to create a strong presence in the digital banking space, we adopted new technologies like RPA^, e-KYC, e-agreement etc. to further strengthen and digitize our processes; these coupled with various payment solutions through BBPS^#, customised link-based payments offer better customer experience. Understanding these are the unprecedented times, we always stood up in support of our customers, right from providing assistance during lockdown to undertaking relief activities for the society at large. We continue to progress in this journey of being a new age digital mass market bank offering a suite of relevant and meaningful products for the unserved and underserved of the society. ” ENDS

About Ujjivan Small Finance Bank Limited:

Ujjivan Small Finance Bank Limited is a small finance bank licensed under Section 22 (1) of the Banking Regulation Act, 1949 to carry on the business of small finance bank in India.

Bank serves 55.3 lakh customers through 575 branches and 17,018 employees spread across 244 districts and 24 states and union territories in India. Gross Loan Book stands at ₹13,890 crore with a deposit base of ₹10,743 crore as of September 30, 2020.

Bank’s CSR objective is to reach underserved and unserved sections of the society. In these testing times, the Bank undertook COVID relief activities by supporting the police personals, healthcare workers, public, municipal and panchayat employees. Bank also provided relief materials to families affected due to the Amphan cyclone in West Bengal. Through our strategic partner, Parinaam Foundation, we initiated various community development programs and a special program to educate the public about the Corona virus and various government benefits that can be availed. Bank also partnered with the “Give India Foundation” to deliver PPE kits to various hospitals in Mumbai.    

Web: www.ujjivansfb.in Twitter:  @   UjjivanSFB