Ujjivan Small Finance Bank shares fall nearly 4% after Q3 net profit declines 64% YoY

Shares of Ujjivan Small Finance Bank Ltd were down by 3.67% to ₹33.29 on Friday, January 24, 2025, following the announcement of disappointing Q3 FY25 financial results. The Bengaluru-based lender reported a significant decline in net profit despite a modest increase in net interest income (NII) and an improvement in collection efficiency.

Key Financial Highlights:

• Net Profit: ₹108.6 crore, a steep 63.8% decline from ₹300 crore in Q3 FY24.
• Net Interest Income (NII): ₹886.7 crore, up 3.2% YoY from ₹859.3 crore.
• Gross Loan Book: ₹30,466 crore, a 9.8% YoY increase and 0.4% QoQ growth.
• Gross NPA (GNPA): 2.68%, up from 2.52% in the September quarter.
• Net NPA: Flat at 0.56%.

Operational Highlights:

• Collection Efficiency: Improved to 96% in December 2024, with bucket X efficiency for group and individual loans at 99.3%.
• Deposit Base: ₹34,494 crore, up 16.3% YoY and 1.2% QoQ.
  • CASA deposits rose 15% YoY to ₹8,662 crore, with a CASA ratio of 25.1%.
  • Retail term deposits grew 29.5% YoY to ₹16,612 crore.

Management Commentary:

The bank attributed the decline in net profit to higher provisions and slower growth in its gross loan book. However, the improvement in collection efficiency and CASA growth highlighted the bank’s operational resilience amidst challenges.

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