Equity Analysis

Company News

    Viji Finance Ltd
    Industry :  Finance & Investments
    BSE Code
    ISIN Demat
    Book Value()
    537820
    INE159N01027
    1.4890877
    NSE Symbol
    P/E(TTM)
    Mar.Cap( Cr.)
    VIJIFIN
    0
    42.61
    EPS(TTM)
    Face Value()
    Div & Yield %:
    0
    1
    0
     
Ujjivan Small Finance Bank Ltd
Ujjivan SFB slides after Q2 PAT decline 29% YoY to Rs 233 cr
Oct 24,2024
However, total income jumped 15.20% YoY to Rs 1,820.04 crore in the quarter ended 30 September 2024.

Profit before tax stood at Rs 310.29 crore in Q2 FY25 as against Rs 436.44 crore reported in the same period last year.

Net Interest Income (NII) grew by 14.70% to Rs 944 crore in Q2 FY25 from Rs 823 crore posted in the same quarter a year ago. Net interest margin improved to 9.2% in Q2 FY25 as compared with 8.8% registered in Q2 FY24.

Pre Provisioning Operating Profit (PPoP) stood at Rs 461 crore in Q2 FY25, registering de-growth of 4.55% from Rs 483 crore in Q2 FY24.

As of 30 September 2024, the bank's gross non-performing assets (NPAs) stood at Rs 749.96 crore, an increase from Rs 697.24 crore as of 30 June 2024 and Rs 585.80 crore as of 30 September 2023.

The bank's NPAs to gross advances stood at 2.52% in Q2 FY25, unchanged from Q1 FY25 and up from 2.35% recorded in Q2 FY24.

The ratio of net NPAs to net advances was at 0.56% as on 30 September 2024 as against 0.41% as on 30 June 2024 and 0.09% as on 30 September 2023.

In Q2 FY25, the write-off was at Rs 140 crore and the provision coverage ratio as of September 2024 is 78%.

The gross loan book stood at Rs 30,344 crore, registering a 14% YoY growth and a 1% rise QoQ. As of September 2024, the secured loan book is at 34.9% as compared to 31.3% recorded in June 2024.

Disbursements in Q2 FY25 amounted to Rs 5,376 crore, reflecting a decrease of 6% YoY and increase of 2% QoQ. As of September 2024, deposits stood at Rs 34,070 crore, up 17% YoY and 5% QoQ.

The bank's CASA (Current Account Savings Account) deposits stood at Rs 8,832 crore, reflecting a 26% YoY increase. The CASA ratio was 25.9% as of September 2024, up from 25.6% in June 2024. Retail term deposits (TDs) was at Rs 15,914 crore, registering a 35% increase YoY and a 2% rise QoQ.

The capital adequacy ratio at 23.4%, with Tier-1 capital at 21.6%. The provisional daily average liquidity coverage ratio (LCR) for September 2024 was 130%.

Sanjeev Nautiyal, MD & CEO, Ujjivan Small Finance Bank said, “Ujjivan has always stood strong and successfully navigated headwinds in the industry. Similarly, our resilient business model and sound reading of the on-ground situation has always kept us better prepared to identify and manage such issues confidently. As we had mentioned in our previous interactions, we had emanated pockets of stress across the country due to elevated indebtedness levels. Hence, we have proactively developed a cautious approach in terms of growth in microfinance space and have beefed up our vigilance to manage asset quality.

Ujjivan has constantly strategized to de-risk its portfolio by introducing more secured products in its offerings. In last 18 months Bank has launched products like Micro Mortgages, Gold Loan, Vehicle Loan, Agri and Working Capital (SME) loans and they are increasingly contributing to the overall asset book each month. This also reflects in our faster growth in secured asset portfolio, growing 12% sequentially.”

Ujjivan Small Finance Bank serves approximately 92 lakh customers through 752 branches and 23,746 employees spread across 326 districts and 26 states and union territories in India.