This is Ujjivan’s second consecutive quarterly loss due to rising stress on asset quality.
Operation profit fell 69 per cent at Rs 71 crore against Rs 230 crore over the same period.
The lender’s gross non-performing assets shot up to 11.8 per cent at the end of September from 9.79 per cent three months ago. Consequently, provision jumped to Rs 437 crore, 4.5-fold higher than Rs 98 crore seen in the year-ago period.
Interest income fell to Rs 645 crore against Rs 754 crore.
“We believe, subject to potential third wave of Covid, our gross NPA has peaked and will gradually reduce hereon,” said Martin PS, the officer on special duty, who took charge following the resignation of chief executive Nitin Chugh.
The second quarter to September has shown significant traction in business momentum, over the previous quarter, with improvement in both – disbursements and collections, he said. In this period, Ujjivan disbursed Rs 3,122 crore while acquiring 1.8 lakh new customers.
“With a strict focus on collections, we have seen dual benefits of rising collection efficiency (95 per cent in September) and reduced PAR (18.9 per cent as of September as against 30.8 per cent as of June). Also, we have done major restructuring and taken accelerated credit provisions during the quarter,” the bank said.
Its gross advances rose 5 per cent to Rs 14,514 crore with the contribution of microfinance falling to 66 per cent from 76 per cent three months earlier.
