Ujjivan Small Finance Bank raises secured business share
BCCL
Synopsis
Ujjivan Small Finance Bank expanded its secured loan portfolio to 31.5%, a 440 basis point increase over the past year, aiming for 40% in three years. The total loan portfolio grew 19% to ₹30,091 crore. Despite this growth, its gross NPA ratio slightly increased to 2.3%. Deposits rose 22% to ₹32,500 crore.
By Atmadip Ray, ET Bureau
Kolkata: Ujjivan Small Finance Bank has scaled up its secured loan business by 440 basis points over the past one year to 31.5% at the end of June as part of its diversification plans while its overall loan portfolio rose 19% to Rs 30,091 crore.
The bank said its gross non-performing assets ratio stood at 2.3% at the end of June as compared with 2.1% three months prior to this and 2.4% a year back.
Ujjivan, which was converted into a bank from a microfinance lender in February 2017, is planning to raise the share of the secured portfolio to 40% in the next three years.
Its total deposits grew 22% over the same period to Rs 32,500 crore with the share of current and savings accounts to total deposits improving 100 basis points to 25.6%.
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About 27% of its gross loans were secured a year back. The bank said its gross non-performing assets ratio stood at 2.3% at the end of June as compared with 2.1% three months prior to this and 2.4% a year back.
Ujjivan, which was converted into a bank from a microfinance lender in February 2017, is planning to raise the share of the secured portfolio to 40% in the next three years.
Its total deposits grew 22% over the same period to Rs 32,500 crore with the share of current and savings accounts to total deposits improving 100 basis points to 25.6%.
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