Ujjivan SFB Q2 results: PAT grows to Rs 294 crore, NNI jumps to Rs 663.24 crore in September quarter

Ujjivan Small Finance Bank has recorded strong profitability growth during the September quarter this fiscal, which ended on September 30, 2022. As per its filing, it garnered a profit after tax of Rs 294.29 crore in Q2 FY23, registering a growth of 45.01 per cent as against a PAT of Rs 202.94 crore in the first quarter of this fiscal (April to June). 
Last fiscal same quarter, the Ujjivan SFB had reported a net loss of Rs 273.79 crore mostly due to pandemic-related lockdowns. In FY23, the bank has recorded a strong growth across parameters. 
Besides PAT, the bank reported that its net interest income (NII) was at Rs 663.24 crore in Q2FY23, which increased by 69.47 per cent from Rs 391.36 crore in Q2 FY22. NII jumped by 10.59 per cent from Rs 599.71 crore in Q1FY23.
Besides, it reported that deposits were at Rs 20,396 crore in the September quarter, which was up by 45 per cent year-on-year. The  retail deposits at 61 per cent of total deposits against 52 per cent a year ago.  The CASA ratio was at 26.9 per cent in Q2 FY23 in comparison to 22.5 per cent in Q2 FY22. The retail banking CASA grew 79 per cent year-on-year.
Its Net Interest Margin (NIM) came in at 9.8 per cent in Q2 FY23 expanding from 8.1 per cent in Q2FY22.
In terms of non-performing assets, the bank said its GNPA declined to 4.4% in the September quarter as against 5.9 per cent in Q1 FY23.A total of Rs 157 crore of bad loans was written-off in Q2 FY23, as per its filing. 
Ittira Davis, MD & CEO, Ujjivan Small Finance Bank said, “Q2FY23 is another milestone quarter with record profitability. While disbursements continue to sustain the Rs 4,000+ crore mark, deposit growth took-off well this quarter driven by retail deposits. Our loan book grew 8 per cent vs Jun’22 / 44 per cent vs Sep’21 to Rs 20,938 crore and deposits are up 11 per cent vs Jun’22 / 45 per cent vs Sep’21. Retail deposits and CASA contribute to 61 per cent and 26.9 per cent of total deposit. This is largely due to sustained collection efficiency at pre-covid levels and normalised slippages; while recoveries continue to be strong. We continue to hold strong provisioning buffers on our books with PCR at 99 per cent, resulting into NNPA of mere 0.04 per cent.”