Q2 2025 Ujjivan Small Finance Bank Ltd Earnings Call Transcript
Key Points
- Ujjivan Small Finance Bank Ltd (BOM:542904) reported a 14% year-on-year growth in its loan book, reaching INR 30,344 crore as of September 2024.
- The affordable housing and micro mortgages portfolio grew significantly, with a 43% year-on-year increase, reaching INR 5,784 crore.
- The bank's secured portfolio now constitutes 34.9% of the total book, with expectations to reach 40% by the end of the financial year.
- Retail deposits grew by 32% year-on-year, with total deposits reaching INR 34,070 crore, emphasizing a strong retail footing.
- The bank received RBI approval for a license to offer a full-fledged bouquet of production services, including retail foreign currency deposits and trade finance offerings, which will aid in widening its product offerings and increasing other income.
- Total disbursements during the quarter were down 6% compared to Q2 FY 2024, indicating a slowdown in business volumes.
- The microfinance segment faced challenges, with an increase in PAR to 5.1% in September 2024 from 4.2% in June 2024.
- Credit costs increased to INR 151 crore in Q2 FY 2025 from INR 110 crore in Q1 FY 2025, with full-year credit costs expected to be around 2.3% to 2.5%.
- The bank's cost-to-income ratio for the quarter was high at 60%, with operating costs being a key monitorable.
- Return on Assets (RoA) and Return on Equity (RoE) showed softness, with RoA at 2.2% and RoE at 15.7% for Q2 FY 2025, and similar softness expected for the full year.
Ladies and gentlemen, good day and welcome to Ujjivan Small Finance Bank Q2 FY 2025 earnings conference call hosted by IIFL Securities Limited. (Event Instructions)
Thank you, Neha Khatod Good evening and a very warm welcome to Ujjivan Small Finance Bank Q2 FY 2025 results call to discuss the business strategy and outlook post the results. We have the entire management team of Ujjivan small finance bank ,the management team is represented by Mr.Sanjeev Nautiyal Managing Director and CEO Mr. Carol Furtado Executive Director, Mr.Martin Pampilly S Chief Operating Officer, Mr. Ashish Goel, Chief Credit Officer, Mr. Vibhas Chandra head Micro banking and Mr.Barun Agarwal, Deputy Chief Financial Officer With that over to you Mr Sanjeev Nautiyal for your opening remarks.
Thank you so much. Good evening and Welcome to our Q2 FY 2025 earnings call total disbursements during the quarter
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