New Delhi, Nov 8 (PTI) Ujjivan Small Finance Bank (SFB) on Monday reported a net loss of Rs 274 crore in quarter ended September 2021 as the core income fell, alongside a spike in provisions for bad loans.

The Bengaluru-headquartered SFB had posted a net profit of Rs 96 crore in September 2020 quarter.

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Bank's total income during July-September period of 2021-22 was down at Rs 692 crore from Rs 815.40 crore in same period of 2020-21, and Rs 714.67 crore in June 2021 quarter.

The core income or the interest earned was lower at Rs 645 crore in Q2FY22, as against Rs 753.61 crore in Q2FY21, Ujjivan SFB said in a regulatory filing.

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There was a substantial rise in the provisions for bad loans and contingencies at Rs 436.88 crore for the quarter, up from Rs 97.91 crore the bank had parked aside for year ago same period.

There was sharp escalation in the bank's asset quality, as the gross non-performing assets (NPAs) soared to 11.80 per cent of the gross advances as of September 30, 2021 from 0.98 per cent by September 2020. It was also higher from 9.79 per cent at end of June 2021.

Value-wise, the gross NPAs were worth Rs 1,712.65 crore by Q2FY22, higher than Rs 136 crore by same period a year ago.

Net NPAs too were higher at 3.29 per cent (Rs 685.14 crore), as compared with 0.14 per cent (Rs 19.08 crore) a year ago.

The bank said it restructured Rs 962 crore loan during the latest quarter.

Total restructured loan book is 10.2 per cent with 34 per cent provision coverage.

Gross advances at Rs 14,514 crore, were up 5 per cent from a year ago. Collections are improving with removal of lockdowns, with the efficiency at 95 per cent in September 2021, it added.

Non-micro banking contributes 34 per cent of total portfolio as against 24 per cent. Secured advances stand at 32 per cent of the total portfolio as on September 2021.

"Q2FY22 has shown significant traction in business momentum, over the previous quarter, with improvement in both - disbursements and collections. In Q2FY22, we disbursed Rs 3,122 crore as local level lockdowns eased. We continue to focus on diversification...Also, we have done major restructuring and taken accelerated credit provisions during the quarter.

"We believe, subject to potential third wave of Covid, our GNPA has peaked out and will gradually reduce hereon," Martin P S, Officer on Special Duty (OSD), Ujjivan Small Finance Bank said.

He exuded confidence that the bank would tide over the challenges posed by current business environment and would emerge strong.

Ujjivan SFB stock closed flat at Rs 21.80 apiece on BSE.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)