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Ujjivan SFB Q1 Review - Substantial Earnings Beat On Strong Asset Quality: Yes Securities

Ujjivan SFB Q1 Review - Substantial Earnings Beat On Strong Asset Quality: Yes Securities

<div class="paragraphs"><p>Ujjivan Small Finance Bank Entrance Bengaluru. (Source: BQ Prime)</p></div>
Ujjivan Small Finance Bank Entrance Bengaluru. (Source: BQ Prime)

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Yes Securities Report

Ujjivan Small Finance Bank Ltd. delivered a substantial 59% profit after tax beat driven by much lower-than-estimated credit cost (rather negligible), which was underpinned by continuance of strong collection trends on standard non-one-time restructuring pool and encouraging collections even from OTR and non-performing loan portfolios.

Consequently, PAR 0 declined to 7.9% as of June versus 9.6% as on March and gross/net non-performing asset declined to 5.9%/0.1% from 7.1%/0.6%.

Ujjivan SFB's write-offs in Q1 FY23 were moderate at Rs 790 million (less than 0.5% of gross adv.) versus Rs 2.7 billion in Q4 FY22.

Net interest income and pre-provision operating profit were in-line with our estimates and represented 56% and 68% growth on YoY basis. Annualized return on asset and return on equity was at 3.4% and 28% respectively.

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Yes Securities Ujjivan Small Finance Bank Q1FY23.pdf

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