Ujjivan SFB shows strength

Ujjivan Small Finance Bank, yesterday after market hours published its key business updates for Q3FY24 and it was a good quarter that went for the company.

The key highlights:

• Total deposits grew 29%/3% YoY/QoQ to Rs. 29,869

• Excess system liquidity moderated further during the quarter

• Strong traction in CASA, up 24%/8% YoY/QoQ to Rs. 7,549 crore; CASA (%) of total deposits at 25.3% vs 24.1% in Sep’23.

• Gross Loan Book* up 27%/5% YoY/QoQ to Rs. 27,791 crore

• Disbursement at Rs. 5,675 crore, up 17% YoY and down 1% QoQ

• Affordable Housing# continued with its strong performance with highest ever quarterly disbursement; disbursed Rs.595 crore up 73%/10% YoY/QoQ

• Secured book inching up at 28.5% Vs 28.1%/ 27.5% as on Dec’22/ Sep’23 as other secured businesses like MSME, micromortgage has started to pick-up gradually

• Credit to Deposit ratio at 87.7% Vs 87.4% / 85.4% as on Dec’22/ Sep’23 (excluding IBPC/ Securitisation)

• Credit quality continues to improve with PAR/GNPA at 3.6%/2.1% vs 3.7%/2.2% as on Sep 30, 2023 (including IBPC/ Securitisation).

(*Includes IBPC/ Securitization of Rs.1,596 crore as on Dec’23 | Rs.1,619 crore as on Dec’22 | Rs.1,685 crore as on Sep’23. # including Micro-LAP; Figures in parentheses represent negative values)

The stock price has reacted positively to these updates. From its close of Rs.56.82, the stock opened at Rs.59.40 and rose to an intraday high at Rs.60.40, which is not too far from its 52-week high of Rs.62.99 hit on 11^th Dec’23.