Q4 2024 Ujjivan Small Finance Bank Ltd Earnings Call Transcript
Key Points
- Ujjivan Small Finance Bank Ltd (BOM:542904) reported strong profitability for Q4 FY24, with a PAT of INR330 crores and a full-year profit after-tax of INR1,281 crores, growing by 17% year on year.
- The bank's gross loan book grew by 24% year on year and 10% quarter-on-quarter, reflecting robust loan disbursement and customer acquisition.
- The bank's CASA ratio improved to 26.5% from 25.5% in the last quarter, indicating a healthy growth in low-cost deposits.
- Ujjivan Small Finance Bank Ltd (BOM:542904) successfully completed the merger process with its holding company, resulting in an increase in book value per share by INR2.6.
- The bank's asset quality remains strong with GNPA at 2.1% and NNPA at 0.3%, and collections continue to be strong around 99% levels.
- Slippages for the fourth quarter were at INR175 crores, up from INR140 crores in the third quarter, indicating some pressure on asset quality.
- The cost-to-income ratio for Q4 '24 remained elevated at 56%, due to ongoing investments in infrastructure and technology.
- The bank's cost of funds is expected to remain elevated due to recent hikes in term deposit rates, which could impact margins.
- There were specific pockets of stress in the microfinance portfolio, particularly in Punjab, Haryana, Kerala, and Tamil Nadu, due to loan waiver campaigns and over-borrowing.
- The bank's operating expenses saw a sharp uptick in Q4, driven by higher HR costs and premises costs due to branch expansions.
Ladies and gentlemen, good day, and welcome to Ujjivan Small Finance Bank Q4 FY24 earnings conference call hosted by IIFL Securities Limited. (Operator Instructions) Please note that this conference is being recorded.
I now hand the conference over to Mr. Rikin Shah from IIFL Securities Ltd. Thank you, and over to you, sir.
Thank you, Muskan. Good morning, everyone, and welcome to Ujjivan Small Finance Bank's Q4 earnings call. I am delighted to welcome the entire management team of Ujjivan Small Finance Bank who will discuss the earnings and the business performance followed by our interactive Q&A.
The management team is represented by Mr. Ittira Davis, MD and CEO; Carol Furtado, Executive Director; Ashish Goel, Chief Credit Officer; M D Ramesh Murthy, Chief Financial Officer; Martin P S, Chief Operating Officer; Vibhas Chandra, Head, Micro Banking; and Sanjeev Banwal, Company Secretary and Head of Regulatory Framework.
With this, let me pass on the call to Mr. Ittira Davis. Over to you, sir
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