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Ujjivan Small Finance Bank Q4 FY22 Result Analysis & Conference Call Highlights | Significant YoY increase in Provisions in Q4 FY22 led Ujjivan To post stable results in Q4 FY22, PAT at 127 Crores in Q4 FY22 vs 136 Crores YoY

Ujjivan Small Finance Bank Q4 FY22 Result Analysis & Conference Call Highlights | Significant YoY increase in Provisions in Q4 FY22 led Ujjivan To post stable results in Q4 FY22, PAT at 127 Crores in Q4 FY22 vs 136 Crores YoY

Published on 13 May 2022 .Views 16 .Comments 0
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Business Overview:

Rebuilding business volumes, Improving asset quality and reducing credit cost, Attracting good talent and stabilizing the team are the three objectives fulfilled in FY22.
Ramesh Murthy as the CFO and Prabhu as the Internal Audit Head are the recent addition to the senior management.
Launched an initiative to vaccinate customers against covid and successfully completed 80,000 vaccinations.
Planning to achieve minimum public shareholding through QIP and return to regulators for the approval of the reverse merger.
Income was suppressed due to high NPA levels which lead to Interest reversal and Non-Recognition of income.
Cost to Income ratio has increased due to suppression of income and increased collection cost.
Incremental Over dues came back to pre-covid level.
Launched Non-Callable FD’s in the form of platina FD’s.
Seen net reduction in absolute PAR, NPA and good reduction as a percentage of gross advances in April 2022.

 
Financial Highlights:

Disbursements are at 4,870 crores which is highest ever in Q4 FY22.
Disbursements of MSE is 19% of total disbursements in FY22.
Micro Banking disbursements comprised of 2.4% fresh loans in Q4 FY22.
Gross Advances grew by 20% YoY and 10% Q-o-Q to 18,162 crores as of March 31, 2022.
Deposits grew by 39% YoY and 18% Q-o-Q to 18,292 crores as of March 31, 2022.
Retail Term Deposits grew by 30% YoY and 15% Q-o-Q to 5,184 crores in Q4 FY22.
CASA deposits grew by 85% YoY and 21% Q-o-Q  in Q4 FY22.
CASA ratio is at 27% in Q4 FY22.
Retail branch banking grew by 59% in FY22.
Retail branch banking savings account average balances moved up to 30,000 crores in March 2022 against 15,000 crores in March 2021.
Stress pool has reduced to 10% currently from 32% in June 2021.
Trying to bring down LGD from 60% in FY22 to 50% in FY23 by collection efforts.
Provisions on Restructured book is at 394 crores.
SMA book is at 2.5% in Q4 FY22 compared to 7% in Q3 FY22.
Total NPA provisions stood at 934 crores in FY22 excluding the floating provisions of 250 crores.
Ticket size increased to almost 60,000 in FY22 compared to 38,000 in FY21.
In MSE portfolio informal business based on assessed income is 57% of the overall book.

 
Profitability Numbers:

NII is up by 48% YoY to 544 crores and 20% Q-o-Q in Q4 FY22.
PCR is at 92% in Q4 FY22.
NIM increased to 10.1% in Q4 FY22 compared to 8.1% in Q2 FY22 and 9.1% in Q3 FY22.
PPOP is at 217 crores in Q4 FY22 compared to 541 crores in Q3 FY22.
ROA is at 2.3% and ROE is at 18.7% in Q4 FY22.
PAT is at 127 crores in Q4 FY22.
Credit Cost is at 44 crores in Q4 FY22.
Restricted the credit cost at 118 crores by utilizing the floating provisions.
Cost of deposits is at 6% in Q4 FY22 compared to 6.1% in Q3 FY22.
Cost of funds declined to 6.1% in Q4 FY22 from 6.2% in Q3 FY22.
Collection Efficiency stood at 100% in March 2022.
PAR book has reduced to 10% in March 2022 compared to 30.8% in June 2021.
GNPA is at 7.1% and NNPA is at 0.6% in Q4 FY22.

 
Restructured Book:

Restructured loan book has reduced from 32% in June 2021 to 12% currently.
Restructured book efficiency is at 89% in March 2022.
Total Restructured book is at 845 crores from which GNPA is 370 crores, PAR is 458 crores and Standard Asset Provisioning is 146 crores.
In Restructured book provisioning 328 crores is for NPA provisioning.
Restructured book would be completely run off by March 2023 except for the secured loans.

 

LEGAL DISCLAIMER:

Use of this information is at the users own risk. The Company and its directors, associates and employees will not be liable for any loss or liability incurred to the user due to investments made or decisions taken based on the information provided herein. The investment discussed or views expressed herein may not be suitable for all investors. The users should rely on their own research and analysis and should consult their investment advisors to determine the merit, risks and suitability of recommendation. Past performance is not a guarantee for future performance or future results. Information herein is believed to be reliable, although its accuracy and completeness cannot be guaranteed. The images used may be copyright of the company or third party. As a condition to using the services, the user agrees to the terms of use of the website and the services.

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Yadnya Academy Pvt. Ltd. (InvestYadnya) is registered with SEBI under SEBI (Research Analyst) Regulations, 2014 with registration no. INH000008349.

Disclosure with regard to ownership and material conflicts of interest:

1. Neither Research Analyst nor the entity nor his associates or relatives have any financial interest in the subject Company;

2. Neither Research Analyst nor the entity nor its associates or relatives have actual /beneficial ownership of one percent or more securities of the subject Company, at the end of the month immediately preceding the date of publication of the research report or date of public appearance;

3. Neither Research Analyst nor the entity nor its associates or his relatives have any other material conflict of interest at the time of publication of the research report or at the time of public appearance.

Disclosure with regard to receipt of Compensation:

1. The Research Entity and its associates have not received compensation from the subject company in the past twelve months.

2. The subject company is not or was not a client during the twelve months preceding the date of recommendation.



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