Ujjivan Small Finance Bank Q3 Review - Asset Quality Woes Emerge, Most Stress Provided For: Axis Securities 

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Axis Securities Report

Ujjivan Small Finance Bank Ltd. reported numbers which were below our estimates.

The highlight of the quarter was the frontloading of the provisions for Covid-19 related stress.

The management believes that the cumulative provisions of Rs 1,029 crore adequately take care of all the stress and the bank should see normalised credit costs going into Q4 FY21.

On the operational front, disbursements in the micro finance institution book have witnessed YoY growth in December 2020 and stand at Rs 892 crore (versus Rs 878 crore in Dec 2019).

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