USFB announced its consolidated financial performance for the quarter ended June 30
Gross Advances up 51% vs Q1FY19; NII up by 44% vs Q1FY19;
Cost-to-income ratio at 64%*
Total Deposits up 109% vs Q1FY19, ROA at 2.7% and ROE at 20.2%*
Bengaluru. A few days back Ujjivan Financial Services Ltd. [BSE: 539874; NSE: UJJIVAN], the holding company and promoter of its 100% subsidiary “UJJIVAN SMALL FINANCE BANK” (USFB), announced its consolidated financial performance for the quarter ended June 30, 2019.
Summary of Ujjivan Small Finance Bank Business Performance – Q1 FY 2019-20:*
v Gross Advances at ₹11,783 crore; growth of 51.3% over Q1FY19
v Non-MicroBanking^ portfolio now contributes 18.0% to the portfolio against 9.3% Q1FY19
v Disbursement for Q1FY20 at ₹2,959 crore; an increase of 41.4% over Q1FY19
v Secured portfolio constitutes 16.3% to the portfolio compared to 7.0% in Q1FY19
v GNPA at 0.8% and NNPA at 0.3% in Q1FY20 against 2.7% and 0.3% respectively in Q1FY19; write-off of ₹16 crore in Q1FY20
v Deposit base at ₹7,956 crore in Q1FY20 covering 67.5% of total advances against 48.8% in Q1FY19
v Retail deposits at 43.1% to total deposits vs. 19.7% in Q1FY19; CASA ratio at 10.4% vs. 6.3% in Q1FY19
v Net Profit of ₹94.4 crore in Q1FY20 against ₹46.1 crore in Q1FY19
v Net Interest Income of ₹352.5 crore in Q1FY20, an increase of 43.8% over Q1FY19
v Net Interest Margin at 10.5% in Q1FY20, against 10.8% in Q1FY19
v Cost to Income ratio at 64.4% in Q1FY20, decreased from 71.8% in Q1FY19
v ROA at 2.7% and ROE at 20.2% for Q1FY20
v Diluted EPS for Q1FY20 at ₹0.66, an increase from ₹0.32 in Q1FY19
Mr. Samit Ghosh, MD & CEO, Ujjivan Small Finance Bank said, “We have started the year on a very positive note with PAT at ₹94 crore registering a growth of 105% vs Q1FY19. All our asset businesses have contributed well to Gross Advances growing 51% as against Q1FY19. Our disbursement for the quarter is up 41% vs Q1FY19 despite Q1 being seasonally weak quarter for us historically. MicroBanking^ portfolio continue to show significant traction growing by 37% vs Q1FY19. One of the landmarks achieved this quarter was Affordable Housing crossing ₹1,000 crore in terms of Gross Advances, up 141% against Q1FY19. Our total deposits have grown to ₹7,956 crore from ₹3,803 crore in Q1FY19, largely driven by Retail deposits which forms 43% of total deposits as against 20% in Q1FY19. Cost to income dipped significantly on account of increased top line and strong cost control measures. Asset quality continues to be stable with GNPA & NNPA ratios at 0.8% & 0.3% respectively. In regards to RBI directive of listing the Bank by January 2020, our board, under the prevailing circumstances, has approved listing via IPO route subject to market conditions and other external factors. We are preparing for the process and will list by the stipulated time.“
Commenting on the Banks listing and performance, Mr. Ittira Davis, MD & CEO, Ujjivan Financial Services said, “USFB is required to be listed by January 31, 2020. Under the prevailing circumstances, the board of USFB in their meeting held on July 30, 2019 has approved a proposal for an initial public offering (IPO) of its equity shares, subject to receipt of requisite regulatory approvals and prevailing market conditions. UFSL and USFB also continue to jointly evaluate other options to achieve listing of USFB’s equity shares in accordance with guidance from the RBI and applicable law. USFB is committed to complying with the listing condition within the stipulated timelines.
Net Interest Income for USFB increased by 44% against Q1FY19; NIM stands at 10.5%. Total deposits as on 30 June 2019 was ₹7,956 crore, up 109% vs Q1FY19. Cost of funds is stable at 8.5%. Total customer base went up to 47.2 lacs from 46.1 lacs as of 31st March 2019. Capital adequacy ratio at present stands at 19.0%, out of which Tier I capital is 18.4%.”
Summary of Consolidated IND-AS Financial Performance – Q1 FY 2019-20:
The financials and ratios as below are based on IND-AS consolidated numbers:
v Net Profit of ₹83.0 crore in Q1FY20 against ₹46.3crore in Q1FY19
v Total Income of ₹689.4 crore in Q1FY20, an increase of 50.8% over Q1FY19
v Net Interest Income of ₹327.0 crore in Q1FY20, an increase of 37.6% over Q1FY19
v Net Interest Margin at 12.0% in Q1FY20, against 12.4% in Q1FY19
v Cost to Income ratio at 65.8% in Q1FY20, decreased from 74.2% in Q1FY19
v ROA at 2.3% and ROE at 17.4% for Q1FY20
v Diluted EPS for Q1FY20 at ₹6.8, an increase from ₹3.8 in Q1FY19
About Ujjivan Financial Services Limited:
Ujjivan Financial Services Ltd. is registered as an NBFC-Non-Deposit-taking Systemically Important - Core Investment Company – (NBFC-ND-SI-CIC) with RBI and is the holding company and promoter of its 100% subsidiary “Ujjivan Small Finance Bank Limited”, which is a small finance bank and licensed under Section 22 (1) of the Banking Regulation Act, 1949 to carry on the business of small finance bank in India.
Ujjivan Small Finance Bank serves over 47.2 lakh customers through 524 branches and 15,626 employees spread across 221 districts and 24 states and union territories in India. Its Gross Loan Book stands at ₹11,783 crore and it has 474 banking outlets with a deposit base of ₹7,956 crore as of June 30, 2019.
Ujjivan Financial Services Ltd. has a healthy CSR Initiative and executes its CSR responsibilities primarily through external NGOs like Parinaam Foundation and Piramal Foundation with a focus on the community development programs, medical campaigns, clean water drinking initiatives and also provides support / aid to other NGOs and disaster relief programs. Many community development programs under the head “Chote Kadam” have been initiated with the support of Parinaam Foundation.