Ujjivan Small Finance Bank reported it third consecutive quarter with a net loss. However, its net loss for Q3FY21 was Rs 34 crores, significantly lower than Rs 279 crores, the net loss for the corresponding period last year. The net loss was significantly lower this time on account of a sharp fall in its provisions, from Rs 501 crore last year to Rs 187 crore this year, down 63%.
“Last couple of months have been challenging due to internal and external issues, despite that we focussed on business and streamlined processes which lead to improved portfolio quality, higher business volumes and reduced attrition,” the bank’s MD Ittira Davis said.
The bank’s operating profit was 30% lower this time as opposed to last year. However, its Net Interest Income grew from Rs 432 crores last year to Rs 454 crores. Its collection efficiency was at 97%, returning to pre-covid level. The bank’s Net Interest Margin stood at 9.1% while its gross advances grew 21% to Rs 16,463 crores.
The bank was listed in December 2020 and opened at a price of Rs 58.75 per share. Today the share trades at Rs 19.30 per share. It has been falling consistently for the past 2 weeks as it fell over 2% in the early hours today.
Highlight by Aman Agarwal.