NEW DELHI, Apr 28: Bengaluru-based NBFC firm Ujjivan Financial Services today reported a decline of 64.76 per cent in consolidated net profit at Rs 19.35 crore in the quarter ended March 2017.
The company had posted a net profit of Rs 54.91 crore in the corresponding quarter of 2015-16.
Total income during January-March period of 2016-17 was at Rs 340 crore, up 14.10 per cent from Rs 297.97 crore in the same period a year ago, Ujjivan said in a regulatory filing.
There was a decrease in the company’s net interest income to Rs 128.31 crore, down 15.53 per cent from the year-ago period.
Net interest margin, a key gauge of profitability, fell to 8.61 per cent during the fourth quarter, from 12.65 per cent a year ago.
Ujjivan Financial Services MD and CEO Sudha Suresh said: “The annual performance has been quite satisfactory, considering the significant challenges post demonetisation. We have managed our collection efficiencies quite well…With demonetisation, the situation is stabilising.”
Ujjivan Financial Services is the promoter of its 100 per cent subsidiary Ujjivan Small Finance Bank which began operations in February this year.
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.
There are in total 457 non-banking financial companies (NBFCs) branches, that will be fully converted to SFBs in the course of next two upcoming years.
(PTI)
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