Ujjivan Small Finance Bank Q3 Profit Down 64% to Rs 109 cr

New Delhi, Jan 23 (PTI) Ujjivan Small Finance Bank on Thursday reported a 64 per cent drop in net profit to Rs 103 crore for the third quarter ended December 2024, as provisions for bad loans increased.

The lender earned a net profit of Rs 300 crore in the year-ago period.

However, the total income rose to Rs 1,763 crore in the quarter under review from Rs 1,655 crore a year ago, Ujjivan Small Finance Bank said in a regulatory filing.

The bank would soon move the Reserve Bank for transition to a universal bank, having received approval from the board.

The interest income of the bank improved to Rs 1,591 crore in the quarter from Rs 1,471 crore in the same quarter a year ago.

The bank's asset quality deteriorated, with gross non-performing assets (NPAs) rising to 2.68 per cent of gross advances at the end of the December 2024 quarter from 2.18 per cent a year ago.

Its net NPAs or bad loans also rose to 0.56 per cent against 0.17 per cent in the year-ago period.

Provisions other than tax and contingencies have increased to Rs 223 crore in the third quarter compared to Rs 63 crore in the year-ago quarter.

The bank is in the process of enabling some structural changes in its liability strategy, enhancing focus to serve more targeted segments of affluent customers largely classified under non-residents, corporate salary and traders, it said.

New products in the product suite affiliated post receipt of AD-1 licence will also enhance offerings and improve customer base in line with our strategy, it added.

The Capital Adequacy Ratio of the bank moderated to 23.90 per cent from 24.37 per cent at the end of December 2024.