The web curiosity margin for the quarter stood at 8.8%, down 102 foundation factors year-on-year, because of the rise in price of funds. NIM was 9.2% three months again.
“We’re aiming to take the NIM again to over 9% to the primary quarter degree,” managing director Ittira Davis stated.
“We now have not handed on the rise in price of funds totally to micro banking prospects. We now have raised lending charges on microfinance loans solely by 100 foundation factors in distinction to the 250 foundation level rise in coverage fee (since Could final yr). That is additionally a purpose behind the autumn in NIM,” Davis stated.
The explanation behind the muted rise in internet revenue was Rs 47 crore put aside as provisions and contingencies for the quarter as in contrast with Rs 10 crore proper again in provision within the yr in the past interval.
“Our credit score price was decrease earlier, due to provision write backs following restoration and upgradation of harassed loans. Now the provisions are getting normalised,” managing director Ittira Davis stated, explaining the rationale behind the upper provisions regardless of enchancment in asset high quality.
The financial institution’s internet curiosity revenue, the distinction between curiosity earned and curiosity bills, rose 24% at Rs 823 crore, in sync with enterprise development. It booked Rs 189 crore as different revenue, in opposition to Rs 147 crore within the yr in the past quarter. Working revenue was seen at Rs 483 crore in opposition to Rs 385 crore.Ujjivan’s gross mortgage portfolio grew 27% year-on-year to Rs 26,574 crore. Its asset high quality improved with gross non-performing belongings ratio declining to 2.35% on the finish of September from 5.06% a yr again. Internet NPA stood at 0.09% in opposition to 0.04%. The ratio of portfolio in danger to the whole portfolio stood at 3.7% in opposition to 6% a yr again.
The financial institution’s deposit mobilisation jumped 43% year-on-year to Rs 29,139 crore with retail time period deposit mobilisation rising 56% and the low-cost present and financial savings account (CASA) rising 28%. CASA contributed 24% of Ujjivan’s whole deposits.
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