Ujjivan Financial in good health

Ujjivan Financial Services is one the major trending stocks on the bourses today, figuring among the top five gainers. It rose 7.5% to Rs.305.65, with volumes showing a surge of almost 7 times.

A 35% (YoY) growth in disbursement at Rs 2,885 crore led to Ujjivan Financial Services reporting a healthy 54% jump in consolidated net profit at Rs.45.2 crore.

Net interest income grew 30% at Rs 255 crore while NIM was at on YoY basis. Net interest margin (NIM) was at 11.8 per cent in Q3FY19, in line with Q3FY18.

Its secured loan portfolio rose 10.2% v/s 3.9% (YoY) of the total loan portfolio.

There was a major improvement in asset quality wherein Gross NPA came down to 1.4% v/s 1.9% (QoQ) and Net NPA remained stable at 0.3%. There was also a sharp fall in provisions of 75.6% (YoY) at Rs 7 crore. It wrote off Rs 29 crore of loans in the quarter.

Retail deposits as a share of total deposits were at 36.2% against 10.4% in Q3FY18 and the CASA ratio improved to 10.4% from 3.7% in Q3FY18.

The capital adequacy ratio currently stands at 22.2% of which Tier-I capital is 21.6%.

The company, which has promoted Ujjivan Small Finance Bank serves over 43.7 lakh customers through 522 branches and 14,305 employees.