In this article we will provide the information related to the Ujjivan Small Finance Bank Q 3 Results 2024. Its is one among the top 5 small finance banks in India.
POSITIVE YOY GROWTH
Ujjivan Small Finance Bank Achieves 2.34% Increase in Q3 Net Profit. In a testament to its financial resilience, Ujjivan Small Finance Bank reported a net profit of ₹300 crore for the quarter ending December 2023.
This marked a commendable year-on-year increase of 2.34%, compared to the ₹293 crore recorded in the corresponding quarter the previous year.
The bank’s Q3 operating profit witnessed robust growth, surging by 17.5% to ₹45,730 crore, demonstrating its ability to navigate a dynamic financial landscape.
Q3 PERFORMANCE METRICS: A COMPREHENSIVE OVERVIEW
POSITIVE YOY GROWTH
The bank’s positive performance trajectory is evident in its YoY net profit growth.
 Despite economic uncertainties, Ujjivan Small Finance Bank showcased resilience by achieving a noteworthy uptick in net profit.
OPERATING PROFIT SURGE
The Q3 operating profit stood at ₹45,730 crore, showcasing a significant 17.5% increase from ₹38,892 crore in the same quarter of the previous year.
This surge emphasizes the bank’s operational efficiency and strategic financial management.
SEQUENTIAL ANALYSIS: UNVEILING TRENDS
While the YoY performance exhibited commendable growth, a sequential analysis reveals a nuanced picture.
 The net profit experienced a modest 8% decrease from ₹32,774 in the previous quarter to ₹30,006 in Q3. Similarly, operating profit witnessed a 5% dip from ₹48,336 in Q2 to ₹45,730 in Q3.
This sequential decline prompts a closer examination of the bank’s short-term strategies and market dynamics.
DEPOSITS AND GROWTH PROJECTIONS: A POSITIVE OUTLOOK
IMPRESSIVE DEPOSIT GROWTH
Ujjivan Small Finance Bank reported a robust deposit standing at ₹29,669 crore for Q3, reflecting an impressive 28% YoY growth.
This surge underscores the bank’s appeal to depositors, showcasing trust and confidence in its financial stability.
GUIDANCE AND STRATEGY
Ttira Davis, MD and CEO of Ujjivan Small Finance Bank, reiterated the bank’s commitment to sustained growth.
Despite the sequential dip in net and operating profit, Davis expressed confidence in the bank’s loan and deposit book growth.
Emphasizing the resilience of the credit portfolio, she affirmed that credit costs would continue to remain within sub 100 basis points, aligning with the bank’s earlier guidance.
STRATEGIC EXPANSION AND MERGER ANTICIPATION
PHYSICAL PRESENCE EXPANSION
In line with their strategic approach, Ujjivan Small Finance Bank continues to enhance its physical presence across the country.
The bank opened 29 new branches during the quarter, bringing the total branch count to an impressive 729. The expansion is set to continue, with plans to add approximately 23 more branches in Q4.
MERGER PROGRESS AND EXPECTATIONS
Davis provided insights into the ongoing merger process with the holding company. Anticipating a positive outcome, a hearing by Hon’ble NCLT is scheduled for January 30, 2024.
The bank remains optimistic about the merger, expecting the process to be completed within the current financial year.
Video Credit: Siddarth Bhat
CONCLUSION ON UJJIVAN SMALL FINANCE BANK Q3 RESULTS 2024
Ujjivan Small Finance Bank’s Q3 performance highlights its resilience and adaptability in a dynamic financial landscape.
Net Profit Growth
Ujjivan Small Finance Bank achieves a notable 2.34% increase in Q3 net profit, reaching ₹300 crore for the quarter ending December 2023.
Year onYear Surge
This performance marks a commendable year ony ear increase, surpassing the ₹293 crore recorded in the corresponding quarter of the previous year.
UJJIVAN SMALL FINANCE BANK FINANCIAL RESULTS DECEMBER 2023
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Robust Operating Profit:
The bank demonstrates financial strength with a 17.5% surge in Q3 operating profit, reaching ₹45,730 crore.
This growth underscores its ability to navigate a dynamic financial landscape.
While sequential declines warrant scrutiny, the positive YoY growth, expanding physical presence, and anticipation of a successful merger underscore the bank’s strategic vision and commitment to sustained progress.
As the financial landscape evolves, Ujjivan Small Finance Bank’s ability to navigate challenges positions it as a noteworthy player in the banking sector, poised for continued growth in the coming quarters.