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Ujjivan Small Finance Bank Ltd. reported a stellar set of numbers in Q2 FY23, an all around beat, led by strong credit growth, robust operating performance, and provision write back aiding earnings growth.
Improvement was visible across asset quality metrics. Gross non-performing asset reduced by 674/145 basis points to 5.1%, aided by moderation in slippages and strong recoveries/upgrades.
The provision coverage ratio remained healthy at 99% versus 98% QoQ. The restructured pool reduced substantially to Rs 473 crore (2.3% of advances versus 10.2 (peak)/3.4% YoY/QoQ), against which the bank holds provision cover of 63%.
The collection efficiency in the restructured book remained healthy at 88% versus 84% QoQ. Overall, the CE in September 2022 remained stable QoQ at ~100%.
On the operational front, Ujjivan SFB maintained its growth momentum registering a robust disbursement growth of 56%/7% YoY/QoQ.
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