AU Small Finance Financial institution, the largest amongst them, booked a 2% decrease internet revenue at Rs 561 crore for the second quarter of the fiscal as towards Rs 571 crore within the year-ago interval, owing to 29% increased provision because the lender confronted deterioration in asset high quality.
AU, which is within the midst of a transition to a common lender having obtained the licence in August, has a gross mortgage portfolio of Rs 1.23 lakh crore.
All of the three lenders confronted internet curiosity margin contraction. AU’s NIM for the second quarter stood at 5.5% towards 6.1% earlier. The ratio for Jana and Ujjivan was sharply down 6.6% from 7.8% and seven.9% from 9.2% respectively.
AU’s working rose stood 7% increased at Rs 1210 crore for the quarter underneath evaluation towards Rs 1132 crore within the 12 months in the past interval. Nonetheless, increased provisions at Rs 481 crore towards Rs 373 crore led to a fall within the internet revenue. The financial institution’s internet curiosity revenue was 9% increased at Rs 2144 crore whereas different revenue rose 12% at Rs 713 crore.
AU noticed its mortgage ebook rising 17% whereas the unsecured lending contracted. “The unsecured credit score high quality is on the cusp of restoration… portfolio development to renew,” the financial institution stated.Ujjivan reported a 48% drop in second quarter internet revenue at Rs 122 crore as in contrast with Rs 233 crore within the 12 months in the past interval, owing not solely to increased provisions but additionally to a fall in internet curiosity revenue and better working bills.Its second quarter provision stood at Rs 235 crore, 56% increased than the year-ago interval’s Rs 151 crore. Its working revenue was down 14% at Rs 395 crore towards Rs 461 crore a 12 months again as rise in whole expenditure outweighed rise in whole revenue. Whole revenue was increased at Rs 1939 crore towards Rs 1820 crore whereas whole expenditure was increased at Rs 1544 crore towards Rs 1359 crore.
Its internet curiosity revenue was decrease at Rs 922 crore towards Rs 944 crore whereas working bills had been increased at Rs 783 crore towards Rs 690 crore.
The financial institution’s asset high quality remained regular with gross non-performing property ratio being at 2.45% on the finish of September, a tad decrease from 2.52% seen a 12 months again. Its gross mortgage portfolio expanded 14% year-on-year to Rs 34588 crore with share of secured ebook rising to 47% from 35% a 12 months again.
Jana’s internet revenue stood 23% decrease at Rs 75 crore towards Rs 97 crore earlier whereas working revenue was 7% down at Rs 279 crore as in contrast with Rs 299 crore earlier. Provision was at Rs 204 crore towards Rs 210 crore whereas gross NPA ratio improved to 2.87% on the finish of September from 2.97% a 12 months again.
The financial institution’s whole revenue stood at Rs 1552 crore towards Rs 1342 crore whereas whole expenditure was increased at Rs 1273 crore towards Rs 1043 crore. Internet curiosity revenue was increased at Rs 618 crore towards Rs 594 crore whereas different revenue additionally rose at Rs 247 crore as in contrast with Rs 176 crore.
Jana’s gross mortgage portfolio stood at Rs 31655 crore with the share of secured property was 73%. The administration plans to lift the secured share to 80%.
“This strategic shift is predicted to result in a discount in credit score prices over the approaching monetary years in case of any excessive stress setting within the MFI business,” Jana stated.
Ujjivan, in the meantime noticed highest ever quarterly disbursements at Rs7,932 crore reflecting a 48% year-on-year rise. Its slippage was decrease at Rs 278 crore due decreased stress in micro-banking portfolio.
