Ujjivan Small Finance Bank (UJJIVANSFB) Q4 20/21 earnings summary

Executive summary

• Pandemic disruption hit H1 FY21; asset and deposit activity rebounded in H2, with record business volumes in Q4 and assets under management up 7% YoY.

• FY21 ended with ₹3,117 crore total income, ₹809 crore pre-provision operating profit and ₹8.3 crore profit after tax, reflecting sharply higher credit costs.

Financial highlights

• Total income rose 3% YoY to ₹3,117 crore; net interest income increased 6% to ₹1,729 crore.

• PPOP grew 27% to ₹809 crore; credit costs rose to ₹799 crore from ₹171 crore, leaving PAT at ₹8.3 crore versus ₹350 crore in FY20.

• Balance-sheet size increased 11% to ₹20,380 crore; gross advances rose 7% to ₹15,140 crore and deposits grew 22% to ₹13,136 crore.

• Retail deposits grew 32% to ₹6,242 crore, while CASA rose 85% to ₹2,699 crore and represented 20.5% of deposits at March 2021.

Outlook and guidance

• FY22 expected to bring reasonable growth and stabilisation, with focus on earnings improvement, portfolio quality, digitisation and expanded product offerings.

• Management expected to restructure 7–8% of the book by September 2021 under RBI Resolution Framework 2.0.

• MicroBanking aimed to normalise collections and scale individual loans, gold loans, Kisan Pragati Card, Agri Group Loans and digital repayment channels.

• Housing plans targeted deeper Tier II/III reach and over 75% coverage across the branch network; MSE plans focused on formal borrowers and expanded credit lines.