Ujjivan Small Finance Bank reported strong financial performance for the second quarter ended September 30, 2024. The bank witnessed significant growth in both net profit and interest income, showcasing its robust operational efficiency.
Key Financial Highlights:
- Net Pofit: Despite the increase in NII, the bank saw a significant decline in its net profit. Ujjivan’s net profit dropped by 29%, coming in at ₹233 crore in Q2 FY2025, compared to ₹328 crore in Q2 FY2024.
- Total Income:
- The bank reported total income of ₹1,82,004 lakh for Q2 FY25, up by 2.57% from ₹1,77,427 lakh in Q1 FY25. On a YoY basis, total income increased by 15.2%, up from ₹1,57,978 lakh in Q2 FY24.
- Net Interest Income (NII): The bank reported a year-on-year (YoY) growth of 15% in its NII, which stood at ₹944 crore in Q2 FY2025, up from ₹823 crore in the same quarter last year. This reflects the bank’s growing loan book and stable interest margins.
- Operating Profit:
- The operating profit before provisions and contingencies stood at ₹46,080 lakh in Q2 FY25, compared to ₹50,952 lakh in the previous quarter and ₹48,336 lakh in the same quarter last year.
- Operating Expenses:
- Total operating expenses, including employee costs and other expenses, were ₹69,022 lakh in Q2 FY25, a rise of 9.7% QoQ from ₹62,903 lakh in Q1 FY25 and a 30.6% increase YoY from ₹52,862 lakh in Q2 FY24.
- Asset Quality:
Ujjivan Small Finance Bank has reported a 7.6% quarter-on-quarter (QoQ) increase in its gross non-performing assets (GNPA), reaching ₹750 crore in Q2 FY25 compared to ₹697 crore in Q1 FY25. Net non-performing assets (NNPA) surged by 47.5% QoQ to ₹164 crore, up from ₹111 crore in the previous quarter. The GNPA percentage remained flat at 2.5%, while the NNPA percentage increased by 15 basis points to 0.6%. The bank also saw a 37% rise in provisions, which grew from ₹110 crore in Q1 FY25 to ₹151 crore in Q2 FY25.
Despite a QoQ decline in net profit, Ujjivan Small Finance Bank’s YoY growth highlights the bank’s ability to navigate through challenges and maintain profitability. The increase in interest income and total income indicates a strong core performance. However, the rise in operating expenses suggests that the bank is investing in its operations, potentially to fuel further growth.
