Ujjivan Small Finance Bank's Q1 Profit Plummets Amid Rising Provisions

Ujjivan Small Finance Bank recorded a drastic 66% decrease in net profit to Rs 103 crore during the initial quarter of the financial year, according to a Thursday disclosure. The downtrend was primarily due to a doubling in provisions and contingencies.

Despite the decline in profit, the bank's total income rose to Rs 1,868 crore, marking an increase from Rs 1,774 crore reported in the corresponding period of the previous fiscal year. Interest earnings also saw an improvement, reaching Rs 1,619 crore, up from Rs 1,577 crore year-on-year.

Gross non-performing assets (NPAs) remained steady at 2.52% of gross advances, while net NPAs increased to 0.7% from 0.4%. The bank's capital adequacy ratio fell to 23% compared to 25% in the same quarter last year, reflecting financial pressure amidst a challenging operating environment.

(With inputs from agencies.)