Ujjivan Small Finance Bank Ltd reports earnings for Q4FY21, FY2021

Ujjivan Small Finance Bank Ltd. [BSE: 542904; NSE: UJJIVANSFB], today announced its financial performance for the year and quarter ended March 31, 2021.

Summary of Ujjivan Small Finance Bank Business Performance - Q4 FY 2020-21

- Gross advances at ₹15,140 crore up 7% Y-o-Y
- Net Profit of ₹136 crore up 86% Y-o-Y
- Disbursement for Q4FY21 stood at ₹4,274 crore vs ₹3,254 crore at Q4FY20; Mar'21 disbursement was 2.2x Y-o-Y
- Non Micro Banking contributes 28% of total portfolio as against 23% in Mar'20
- Secured Advances stand at 27% of the total portfolio as on Mar'21 as against 22% in Mar'20
- Total provision as on 31st Mar'21 of ₹955 crore covering 6.3% of gross advances
- GNPA at 7.1% and NNPA at 2.9% as of Mar'21 against 1.0% and 0.2% respectively as of Mar'20; write-off of ₹74 crore in Q4FY21; Provision coverage ratio as on Mar'21 is 60%
- Deposits at ₹13,136 crore as of Mar'21 up by 22% Y-O-Y as against Mar'20; covering 87% of total advances
- Retail deposits at 48% of the total deposits vs 44% of Mar'20; CASA ratio at 21% in Mar'21 vs 14% in Mar'20
- Strong new retail customer acquisition, 3.15 lakh customers acquired during the Q4FY21
- Net interest income of ₹368 crore in Q4FY21; Net interest margin at 7.9% in Q4FY21 against 11.2% in Q4FY20
- Cost to Income ratio at 67% in Q4FY21 vs 65% in Q4FY20
- ROA/ ROE at 2.7%/ 17.3% in Q4FY21 vs. 1.6%/ 9.3% in Q4FY20
- Collections remained stable at 94% in Mar'21
- Capital adequacy ratio at 26.4% with Tier-1 capital at 25.0%; Liquidity coverage ratio at 116.1% as of Mar'21

Summary of Ujjivan Small Finance Bank Business Performance - FY 2020-21

- Disbursement for FY21 at ₹8,397 crore
- PPOP of ₹809 crore in FY21 against ₹637 crore in FY20
- Net Profit of ₹8.3 crore in FY21
- Net Interest Income of ₹1,729 crore in FY21 against ₹1,634 crore in FY20
- Net Interest Margin at 9.5% in FY21 against 10.8% in FY20
- Cost to Income ratio improved to 60% in FY21 from 67% in FY20
- ROA/ ROE for FY21 at 0.04%/ 0.3% vs 2.2%/ 13.9% for FY20

Mr. Nitin Chugh, MD & CEO, Ujjivan Small Finance Bank said, "Q4FY21 was a very good quarter in terms of strong business growth and improvement in collections. Due to sustained improvement in productivity and improving economic conditions, we saw disbursements reaching a record high of Rs 4,274 cr up 31% y-o-y. This was led by secular growth across all asset verticals. In Q4 we also benefitted from our investments in digital and through partnerships with fintechs that helped us in expanding our distribution and sales. On the collections side too we saw significant improvement with monthly collection efficiency picking up and closing at 94% in March'21; our restructured book delivered ~74% collection efficiency. Liability franchise continued to strengthen as retail granular deposits builds up with CASA meaningfully increasing to 21%. Healthy customer acquisition continued in our liability business during the quarter. Cost of funds has further reduced to 6.8% from 7.9%/7.1% in Q4FY20 / Q3FY21. Q4FY21 NIM was impacted primarily on account of de-recognition of interest income on the GNPAs. This impacted yields as well as cost-to-income ratio; cost on absolute basis remains well under control despite significant increase in business volumes. We continue to carry Rs 172 cr of covid provisions which provides cushion for credit cost in upcoming months. As the business environment remains impacted due to the second wave of the pandemic across the country, we are closely monitoring the ground situation and taking adequate steps to safeguard the interests of our employees, customers, investors and all other stakeholders."

Source : Equity Bulls

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