Ujjivan Small Finance Bank (UJJIVANSFB) Q4 19/20 earnings summary

Executive summary

• FY20 growth remained strong: total income rose 49% to ₹3,026 crore and PAT increased 76% to ₹350 crore; gross advances grew 28% to ₹14,153 crore.

• Deposits rose 46% to ₹10,780 crore, with retail deposits up 73% and CASA up 86%; COVID-19 prompted a ₹70 crore prudential provision and a cautious operating response.

Financial highlights

• Total income ₹3,026 crore, up 49% YoY; NII ₹1,634 crore, up 48%; PAT ₹350 crore, up 76% in FY20.

• Interest income was ₹2,704 crore, up 48%; other income ₹322 crore, up 56%; operating costs increased 31% as outlets and staffing expanded.

• Credit expenses rose to ₹171 crore from ₹41 crore; included ₹66 crore incremental standard-asset provisions and ₹105 crore on NPAs, including ₹64 crore of write-offs.

• COVID-19 prudential provisions totaled ₹70 crore, including ₹49 crore for accounts in default but classified as standard.

• Balance-sheet size reached ₹18,411 crore, up 34%; net worth increased to ₹3,188 crore after equity capital raised through the IPO.

Outlook and guidance

• FY21 priorities include collections, resuming lending selectively with repeat and good-track-record borrowers, growing deposits, and controlling costs and non-priority spending.

• Expected lower business volumes to contract interest and fee income; lower funding costs and reduced operating expenses were expected to partly offset pressure, while social-distancing measures could raise field costs.

• Credit-cost effects remained uncertain until the moratorium and related NPA-classification dispensation ended; plans included expanded digital repayment, contactless lending and process automation.

• Growth plans included expanding MSE, affordable housing, rural/agriculture and vehicle finance, alongside digital lending, fintech partnerships and broader fee-based services.