Ujjivan Small Finance Bank delivered exceptional fourth-quarter results with net profit surging to ₹281.97 crore for the quarter ended March, compared with ₹83.39 crore in the corresponding period last year. According to reports from CNBC TV18, the bank's net interest income (NII) rose 26.4% year-on-year to ₹1,092.89 crore from ₹864.31 crore, reflecting healthy growth in lending operations. The strong performance was primarily driven by higher other income and significantly lower provisions during the quarter.
Asset quality metrics showed sequential improvement during the quarter, with gross non-performing assets declining to 2.26% from 2.38% in the previous quarter, while net non-performing assets eased to 0.43% from 0.57%. As reported by CNBC TV18, provisions during the quarter stood at ₹143.85 crore, which was lower than ₹195.34 crore in the preceding quarter and ₹264.50 crore reported a year earlier. This improvement in asset quality contributed significantly to the bank's enhanced profitability.
Ahead of the earnings announcement, shares of Ujjivan Small Finance Bank rose nearly 1.5% to touch an intraday high of ₹63.60 on the NSE, according to CNBC TV18. The positive market response reflects investor confidence in the bank's strong quarterly performance and improving financial metrics.
Separately, the bank announced that the Reserve Bank of India had returned its application for voluntary transition into a universal bank in April. As reported by CNBC TV18, in its communication dated April 13, the regulator acknowledged the bank's efforts towards diversifying its loan portfolio but noted that there remains further scope for progress in this direction. The RBI advised the lender to reapply after demonstrating a more diversified loan book.
Ujjivan Small Finance Bank primarily focuses on microfinance, affordable housing, retail lending and financial services targeted at underserved and mass-market customer segments across India, according to CNBC TV18. The bank's core business model continues to serve these specific market segments despite the regulatory challenges in transitioning to universal banking status.
