New Delhi, January 19, 2017: Ujjivan Financial Services Ltd. [BSE: 539874; NSE: UJJIVAN], one of the leading providers of microfinance in India, today announced its financial performance for the quarter ended December 31, 2016.
Summary of Financial Performance:
Total Income at `371.32 crore, an increase of 38.88% over Q3-FY16 and 4.01% over Q2-FY17
Net Profit at `43.94 crore; a decline of 9.54% over Q3-FY16 and 38.43% over Q2-FY17
NIM at 13.22% in Q3-FY17 increased from 12.83% in Q3-FY16 and 13.02% in Q2-FY17
Cost to Income ratio at 49.33% from 49.01% in Q3-FY16 and 48.18% Q2-FY17
EPS for Q3 FY17 at `3.7; 9M FY17 at `16.2
For Q3 - RoAA at 2.53% and RoAE at 10.28%
As of January 17th, 2017, Collection Efficiency for November dues at 95.4%; for December dues at 91.1%
Commenting on the business performance for the quarter ended December 31, 2016,
Mr. Samit Ghosh, Chief Executive Officer and Managing Director, Ujjivan Financial Services said: “Despite the challenging environment we have been able to maintain overall satisfactory performance. Our monthly collection efficiency for November & December was around 90%. However customers impacted by demonetization are continuing to repay with a time lag. Consequently as of date the collection for November & December dues stand at 95.4% and 91.1% respectively. We are confident that this trend will continue. We have maintained strong customer connect and critical support during this period with timely dissemination of information and continued loan disbursements to our valued customers.
On the upcoming launch of the Ujjivan Small Finance Bank, Mr. Ghosh added, “We intend to launch Ujjivan Small Finance Bank in the first week of February at Bengaluru. We have obtained most of the approvals required to commence our operations and are well prepared on technology, infrastructure, channels etc.”
Commenting on the financial performance for the quarter ended December 31, 2016
Ms. Sudha Suresh, CFO said, “During the quarter, our profits were mainly affected due to costs related to transition to bank and increased provisioning arising due to lower collection efficiency post demonetisation. Though RBI guidelines allowed for classification of portfolio as standard assets for 90 days with respect to over dues in demonetization period of November and December; Ujjivan took a conservative stance with added provisions. We have ensured continued business with disbursements of ` 965 Crore in these two months. ”
Operating Highlights
Gross Loan Book at `6,587.90 crore; growth of 43.55% over Q3-FY16 and 1.57% over Q2-FY17
Managed portfolio as on December 31, 2016 at `541.54 crore
Net Loan Book at `6,046.35 crore; growth of 34.40% over Q3-FY16 and 1.70% over Q2-FY17
Disbursement at `1,662.84 crore; decrease of 0.56% over Q3-FY16 and 23.86% over Q2-FY17
Even during demonetization period there was a disbursement to the existing customers-November December disbursements stood Rs 965 crores
1.02 lakh new borrowers added during the quarter; Total borrowers stands at 35.83 lakh
GNPA at 0.25% and NNPA at 0.05%
About Ujjivan Financial Services Limited:
Ujjivan Financial Services, a leading microfinance institution (MFI), started operations in Bengaluru in 2005 and serves over 35 lakh active customers through 469 branches and 9,593 employees spread across 209 districts and 24 states in India. Ujjivan’s Gross Loan Book stand at `6,587.90 crore with a cumulative repayment rate of 97.89% as on December 31, 2016.
Ujjivan also runs a robust financial literacy program and community development & disaster relief programs for customers in collaboration with Parinaam Foundation which is a non-profit organization.
Web: www.ujjivan.com|Twitter: UjjivanMFI| Facebook: Ujjivanmicrofin