Ujjivan Small Finance Bank Ltd. (BSE: 542904; NSE: UJJIVANSFB), a prominent small finance bank in India, has announced impressive financial results for the fiscal year and the final quarter ending March 31, 2024. The bank demonstrated robust profitability, significant margins improvement, and healthy growth in both customer deposits and loan disbursements.

Ujjivan Small Finance Bank Financial Highlights of FY 2023-24

The bank achieved its highest ever Profit After Tax (PAT) at ₹1,281 crore for FY24, representing a 17% year-over-year increase. The Return on Assets (RoA) and Return on Equity (RoE) stood at an impressive 3.5% and 26.1%, respectively. Throughout the fiscal year, Ujjivan disbursed ₹23,389 crore, marking an 11% increase from the previous year, with the gross loan book expanding by 24% to ₹29,780 crore. The secured loan portfolio grew to 30.2% of the total loan book.

The bank’s deposits saw a remarkable increase to ₹31,462 crore, up by 23% year-over-year. The Current Account and Savings Account (CASA) deposits increased by 24% to ₹8,335 crore, enhancing the CASA ratio to 26.5%.

Ujjivan Small Finance Bank Quarterly Performance and Operational Efficiency

For Q4 FY24, Ujjivan reported a PAT of ₹330 crore, up 7% from the same period last year. Net Interest Income (NII) for the quarter was ₹934 crore, a 27% increase year-over-year, with a Net Interest Margin (NIM) of 9.4%. The bank maintained strong asset quality with a Gross Non-Performing Assets (GNPA) ratio stable at 2.1% and a Net Non-Performing Assets (NNPA) ratio at 0.3%.

Strategic Initiatives and Growth Prospects

According to Ittira Davis, Managing Director & CEO of Ujjivan Small Finance Bank, the bank has successfully completed the amalgamation process with its holding company, enhancing operational synergies. “Our focus on secured products like Affordable Housing has resulted in a 45% growth in the Housing book for FY24,” Davis noted. The bank is also expanding its product offerings in the MSME sector and enhancing digital services to improve customer experience and operational efficiency.

Ujjivan Small Finance Bank Dividend Announcement and Future Outlook

The Board of Directors recommended a final dividend of ₹1.5 per share for FY24, subject to shareholder approval at the upcoming AGM. Looking ahead, Ujjivan Small Finance Bank is poised for continued growth with a strong focus on secured lending, customer-centric digital products, and expanding its footprint in underserved markets.

Ujjivan Small Finance Bank Ltd. has capped off a successful fiscal year with strong financial performance and strategic growth in its loan and deposit portfolios. The bank’s focus on secured lending and digital innovation continues to drive its success, positioning it well for sustained growth in the competitive Indian banking sector.

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