Latest News | Ujjivan Small Finance Bank Posts Rs 233-cr Net Loss for Jun Quarter
Get latest articles and stories on Latest News at LatestLY. Ujjivan Small Finance Bank on Friday reported a net loss of Rs 233 crore for the first quarter ended June 30, mainly due to the impact of the second wave of the pandemic on its business.
New Delhi, Aug 6 (PTI) Ujjivan Small Finance Bank on Friday reported a net loss of Rs 233 crore for the first quarter ended June 30, mainly due to the impact of the second wave of the pandemic on its business.
The bank had posted a net profit of Rs 55 crore in the corresponding quarter of the last financial year.
Its total income during April-June 2021 fell 8 per cent to Rs 717 crore, compared with Rs 775 crore in the year-ago period, Ujjivan SFB said in a regulatory filing.
Net interest income fell 16 per cent to Rs 384 crore, from Rs 458 crore a year ago.
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The bank's gross non-performing assets (NPAs) shot up to 9.8 per cent of the gross advances as of June 30, 2021, as against 1 per cent at the end of June 2020.
Net NPAs, or bad loans, also rose to 2.7 per cent from 0.2 per cent.
Provisions and contingencies for the quarter moved up by 147 per cent to Rs 396 crore, from Rs 160 crore.
Also, the lender's total expenditure jumped 32 per cent to Rs 950 crore, compared with Rs 720 crore a year ago.
Total disbursements during the June 2021 quarter rose to Rs 1,311 crore, from Rs 474 crore a year ago.
Ujjivan Small Finance Bank MD and CEO Nitin Chugh said, "The onset of the second COVID-19 wave and consequent restrictions and lockdowns lashed the industry, especially the microbanking sector that faced a severe stress."
He added that the bank's business and collection volumes were affected due to the restrictions on movement, resulting in a subdued overall performance in the June 2021 quarter.
As a precautionary measure, a floating provision of Rs 250 crore has been created to absorb the impact of potential slippages in near future, he said.
"We are hopeful that our customers will resurrect their livelihoods," Chugh said. HRS hrs
(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)