Ujjivan Financial Services has reported 64.76% decline in its net profit which stood at Rs.19.35 crore in the quarter ended March 31, 2017. Last year, it reported a net profit of Rs 54.91 crore in the corresponding quarter.
Attributed to non-repayment and serious delinquency issue in many part of the country after demonetisation, Ujjivan is alone among large MFIs facing similar situation while small MFIs are shutting services.
Total income for the quarter was at Rs 340 crore, up 14.10% from Rs 297.97 crore reported last year. Ujjivan reported a decrease in the company’s net interest income also to Rs 128.31 crore, down 15.53% from the last year. Its net interest margin was down by 8.61% during the fourth quarter of FY2016-17, down from 12.65% last year.
Ujjivan began its subsidiary Ujjivan Small Finance Bank operations in February this year, which were inaugurated by Nobel laureate Muhammad Yunus of Bangladesh.
The small finance bank (SFB) has been expanding its network across the country gradually and hopes to convert about 200 of its parent’s micro-lending or NBFC branches to SFB branches by the end of this fiscal.
Ujjivan Financial Services MD and CEO Sudha Suresh said: “The annual performance has been quite satisfactory, considering the significant challenges post demonetisation.”
Currently, its stock in Sensex is down by 5.33% at Rs 381.80 per share.