Ujjivan Small Finance Bank Q3 Review - Asset Quality Woes Emerge, Most Stress Provided For: Axis Securities 
A woman carries a Rs two thousand banknote in Dadri. (Photographer: Anindito Mukherjee/Bloomberg)

Ujjivan Small Finance Bank Q3 Review - Asset Quality Woes Emerge, Most Stress Provided For: Axis Securities 

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Axis Securities Report

Ujjivan Small Finance Bank Ltd. reported numbers which were below our estimates.

The highlight of the quarter was the frontloading of the provisions for Covid-19 related stress.

The management believes that the cumulative provisions of Rs 1,029 crore adequately take care of all the stress and the bank should see normalised credit costs going into Q4 FY21.

On the operational front, disbursements in the micro finance institution book have witnessed YoY growth in December 2020 and stand at Rs 892 crore (versus Rs 878 crore in Dec 2019).

Click on the attachment to read the full report:

Axis Securities Ujjivan-Small Finance Bank Q3FY21-Result Update.pdf

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