Ujjivan SFB's Profits Plummet Amidst Rising Loan Provisions

Ujjivan Small Finance Bank reported a significant decrease in net profit by 75% to Rs 83.39 crore for the quarter ending March 2025, affected by increased provisions for bad loans. Although total income grew, expenses and provisions surged, leading to an annual profit drop to Rs 726 crore.

Ujjivan Small Finance Bank has experienced a sharp decline in its net profit, reporting a 75% slump to Rs 83.39 crore for the quarter ending March 2025. This downturn is largely attributed to heightened provisions for bad loans, as indicated in the bank's latest regulatory filing.

Despite an increase in total income to Rs 1,843 crore during the January-March quarter of FY25, the bank faced challenges due to rising provisions, which soared to Rs 264.50 crore from Rs 79 crore the previous year. Consequently, the Provision Coverage Ratio was recorded at 78%.

The fiscal year 2024-25 also saw a notable decline in Ujjivan's annual profit, falling to Rs 726 crore from the earlier Rs 1,281.50 crore, amidst unchanged asset quality with net NPAs rising to 0.49% from 0.28%.

(With inputs from agencies.)