Ujjivan Small Finance Bank: These services will not be available on the Net Banking mobile application on August 15. Details here

Bengaluru-based Ujjivan Small Finance Bank in an SMS sent to its customers informed that some of its services will be unavailable for a period of 3 hours. According to the SMS sent by Ujjivan Small Finance Bank due to scheduled maintenance activity, our UPI, Mobile Banking, Internet Banking, Business Net Banking, Digital FD creation will be unavailable from 02:00 on August 15 to 05:00 on August 15 and services will not be available for 3 hours.

This is due to the predetermined maintenance work of the bank’s Net Banking Facility. “Due to planned maintenance activity, our UPI, Mobile Banking, Internet Banking, Business Net Banking, Digital FD creation will be unavailable from 02:00 08/15/2022 to 05:00 08/15/2022. We sincerely regret any inconvenience caused,” reads the text message sent by Ujjivan Small Finance Bank.

Meanwhile, Ujjivan Small Finance Bank reported its highest ever quarterly profit in the June 2022 quarter at 203 crores on higher interest income, lower bad debts as well as a large loan disbursement.

The Bengaluru-based Small Finance Bank (SFB) had recorded a net loss of 233 crores in the same quarter a year ago. On a sequential basis, net income increased 60.4% compared to 126.52 crores in the quarter ended March 2022.

It was the highest quarterly net profit on record, the bank said, adding there was continued traction on the collections side at around 99%.

The Bank’s total income in the period April-June 2022-23 increased by 40% to reach 1,000.42 crore, versus 714.67 crores in the same quarter of 2021-22, Ujjivan SFB said in a regulatory filing.

Interest earned by the lender jumped 41.1% for 905.37 crore in Q1 FY23 vs. 641.66 crore in Q1FY22. While other income increased 95.1 crore against 73 crores.

Net interest income – interest earned less interest spent – increased 56% from a year ago to reach 600 crores in the quarter.

There was a significant reduction in the proportion of bad debts, with the bank reducing gross non-performing assets (NPA) to 6.51% of gross advances at the end of the first quarter of FY23, from 9.79 % one year ago.

In absolute value, the gross NPA or bad debts amount to 1,146.71 crore against 1,374.98 crores recorded at the end of June 2021.

Net NPAs decreased to 0.11% (equivalent to 17.80 crore) from 2.68 percent ( 348.73 crores).

This contributed to a substantial reduction in provisioning and contingency requirements for the June 2022 quarter to 39 million ( 0.39 crore) against 473.21 crore in the first quarter of FY22.

Ujjivan SFB said the June quarter witnessed the largest disbursement in the bank’s history at 4,326 crores, up 230% from a year ago. Deposits increased by 35% compared to a year ago for 18,449 crore.

Of this amount, retail deposits jumped 65% to 10,761 crores.

The bank said it was growing new customers with 34% of lending to new customers, up from 24% in the fourth quarter of FY22. It also acquired 1.9 lakh new customers in the first quarter of FY22. 23. It stood at 1.5 lakh in Q4 FY22.

“On the disbursement side, the first quarter was the strongest on record, reaffirming strong demand for credit. Our deposit portfolio continues to grow strongly, up 35% year-on-year. Retail and CASA deposits are contributing to 58% and 28% of total deposits,” said Ittira Davis, MD and CEO, Ujjivan Small Finance Bank.

Furthermore, the PAR (Provision Against Restructuring) continues to improve, currently at 7.9% compared to 9.6% in March 2022.

“This is largely due to the normalization of slippages and a focus on recoveries. We continue to hold strong provisioning reserves on our books with a 98% PCR (Provision Coverage Ratio) resulting in a NNPA of just 0.1% Our strategy to build the granular accountability base will remain our primary focus going forward, alongside improving our digital capabilities, which will result in improved activity levels and productivity,” Davis said.

Ujjivan SFB said it is diversifying its other sources of income and increasing the current product line in the medium term. These include life, general and health insurance products as well as benefits relevant to the target segments.

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