Gross deposits increased by 39% year-on-year to Rs 25,481 thousand owing to the improvement in asset quality of Ujjivan Small Finance Bank. We also saw strong collections in all buckets.
Shares of Ujjivan Small Finance Bank rose 5% on April 6th. In addition, improved asset quality helped equities rise.
At 10:46 am, the financial bank’s shares were trading 4.7% higher at Rs 27.80 on the BSE.
Deposit momentum continues to be strong with the milestone of Rs 25,000 being reached for lenders in March 2023. Total deposits increased 39% year-on-year and 10% quarter-on-quarter to SEK 25,481, while CASA increased 35% year-on-year and 11% quarter-on-quarter.
Total spend increased 23% year-on-year and 24% quarter-on-quarter in the quarter, driven by strong growth in microbanking, housing and financial institutions groups. Meanwhile, progress jumped YoY 33% and QoQ 10% to Rs 24,114 crore.
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Improve collection efficiency and asset quality
Ujjivan Small Finance Bank witnessed strong recovery across all buckets including restructuring assets and distressed asset books.
Collection efficiency remained at 100% at the end of March 2023 and was 99% at the end of January.
Total non-performing assets further decreased to 2.6% as at 31 March 2023, from 3.4% in the prior quarter and 7.1% at 31 March 2022.
