Ujjivan Small Finance Bank (USFB) has announced its business highlights for the December 31, 2024 quarter. The highlights showcase significant growth in deposits and lending across key segments despite a challenging economic environment.
In its regulatory filing with the National Stock Exchange of India (NSE) and the Bombay Stock Exchange (BSE), the bank reported a year-on-year (Y-o-Y) increase of 16% in total deposits, which stood at ₹34,496 crore as of December 31, 2024, compared to ₹29,669 crore in the same period last year. The Current Account Savings Account (CASA) deposits also saw a growth of 15%, reaching ₹8,657 crore.
1. Assets:
- The gross loan book grew by 10% Y-o-Y to ₹30,466 crore, with affordable housing loans leading the growth at an impressive 45% increase to ₹6,393 crore.
- Loans to micro, small, and medium enterprises (MSME) rose by 21%, while financial institutions group (FIG) loans surged by 57%.
2. Disbursements:
- Total disbursements for the quarter were ₹5,360 crore, with notable growth in affordable housing loans (37%) and MSME loans (214%). However, micro group loans and individual loans witnessed declines of 38% and 17%, respectively.
3. Collections and Asset Quality:
- The bank’s collection efficiency remained steady at 96% for December 2024, with an overall collection efficiency (including foreclosures and advances) of 106%.
- Gross non-performing assets (GNPA) stood at 2.7%, compared to 2.5% in the previous quarter and 2.1% in December 2023. The portfolio at risk (PAR) also increased to 5.4% from 3.6% a year ago.
The bank’s secured loan book now constitutes 40% of its total portfolio, up from 28% in December 2023, reflecting its focus on improving asset quality. Growth in segments like affordable housing and MSME indicates a strategic shift towards more sustainable and diversified lending practices.
