The Bengaluru-based lender, which started its operation as a micro-financier in 2005, transformed itself right into a small finance financial institution in 2017. It returned to black within the March 2022 quarter with a web revenue of Rs 127 crore, however closed FY22 with a web lack of Rs 415 crore, mauled by the impression of the pandemic.
The lender has 68 per cent of its belongings within the unsecured micro mortgage segments as of March 2022 and the remaining 32 per cent (up from 27 per cent in FY21) is secured accounts with housing and small enterprise loans.
“Microlending will proceed to be the biggest asset base for us within the near-term, however over the following two-three years we need to enhance the share of our secured ebook to 50 per cent from the 32 per cent now, in order that we do not fall again into the dangerous mortgage piles as occurred previously two years, Ittira Davis, managing director and chief government of Ujjivan, instructed PTI.
“As a part of this asset base diversification, we’ve got simply re-launched our auto mortgage portfolio (two-wheeler financing), which we had discontinued through the pandemic, and we hope to finish this fiscal with ebook at Rs 120-150 crore, Davis stated.
“The second step is to enter the gold mortgage enterprise which is a totally secured and high-margin section for all lenders. We hope to launch this by October/simply forward of Diwali,” he added.
He stated virtually 60 per cent of the auto mortgage prospects are current microlenders whereas the remaining are new prospects.
Davis expects his asset base to the touch Rs 20,000 crore this fiscal, up from Rs 18,162 crore in FY22.
The corporate registered a 20 per cent progress in asset base in FY22 as in comparison with the previous fiscal.
Davis stated he expects the file mortgage gross sales within the fourth quarter to proceed in FY23 as properly. Within the March 2022 quarter, it disbursed the very best quantity of loans at Rs 4,870 crore, Davis stated.
Ujjivan’s deposits grew 39 per cent to Rs 18,292 crore, led by a 27 per cent rise in present account saving account, Davis stated.
The financial institution noticed a turnaround in asset high quality, with gross NPAs (Non-Performing Belongings) falling from 11.8 per cent in Q2 and 9.8 per cent in Q3 to 7.1 per cent in This autumn, as assortment effectivity touched 100 per cent by March, and web NPAs slipped to 0.6 per cent from 1.7 per cent.
The financial institution has a provision protection ratio of 92 per cent with a floating provision of Rs 260 crore, he stated, including it wrote off Rs 200 crore of dangerous loans within the fourth quarter of FY22. Its complete provisions stood at Rs 1,330 crore or protecting 7.3 per cent of the mortgage ebook.
The corporate went public in December 2019 and has to extend public float to 25 per cent by this December from 18 per cent now. That is being completed by way of a Rs 600-crore QIP difficulty, after which it is going to go for a reverse merger.
Davis expects the fairness sale to occur within the second quarter of FY23.