The small finance bank now expects its financial year 2027 RoA to be between 1.8% to 2%, compared to 1.6% earlier.
Ujjivan Small Finance Bank also reported a strong set of earnings in the first quarter, supported by strong loan and deposit growth, stable margins, lower credit coats and record earnings. Only reported a seasonal slowdown in disbursements acted as a minor drag.
Net profit for the quarter surged to 316.5 crore in the June quarter from ₹103.2 crore last year.
Its net interest income increased by 39% to ₹1,187 crore from ₹856 crore in the year-ago period. Its cost-to-income ratio was at 62% in the first quarter compared to 63% in the previous one and 67% last year.
Asset quality also improved for Ujjivan Small Finance Bank on a sequential basis. Gross non-performing assets (NPAs) improved to 2.16% from 2.26% sequentially, while net NPA improved to 0.34% from 0.43% in the previous quarter.
The company’s capital adequacy ratio (CAR) increased to 20.36% in the first quarter from 21.14% in the previous one and 22.77% in the previous year.
The CRAR moderated by 78 basis points sequentially and 241 basis points from last year, primarily due to strong loan growth consuming capital.
Its slippage ratio improved to 1.6% from 1.8% sequentially and from 4.3% last year.
Shares of Ujjivan Small Finance Bank are holding on to gains of 7.5% after the result announcement and the guidance raise at ₹70 apiece. The stock is now up 31% so far this year.
