Ujjivan Small Finance Bank Announces 38% Loan Growth; drop in NPA

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According to Ujjivan Small Finance Bank, its asset quality improved sequentially with consistent repayment collections, and its gross advances increased by 38% year-on-year to Rs19,409 crore.

The company reports easing concerns about a potential slowdown in activity due to rising inflation and interest rate hikes to combat it.

Loans from the micro-banking segment increased by 39%, reaching Rs 13,364 crore. The affordable housing and business loan portfolios also posted comparable growth rates, albeit on a lower base, which contributed to the bank’s overall loan growth. Its business loans rose to Rs 1,767 crore, while its affordable housing loans reached Rs 2,905 crore.

The portfolio at risk went from 9.6% three months earlier to 7.9% at the end of June thanks to continued progress in collection efficiency. Over the same period, the bank’s gross non-performing assets declined from 7.1% to 5.9%.

Ujjivan’s total deposits grew 35% year-on-year to Rs 18,433 crore, driven by a focus on small retail deposits, which grew 65% year-on-year to reach Rs 10,761 crore.

On Monday, AU Small Finance Bank recorded a 42% increase in lending. The growth rates of both banks suggested a robust spending pattern and revival of income-generating activities among the economically vulnerable population.

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