Shares of Ujjivan Small Finance Bank rose 8% to a 52-week high of Rs 26 in Friday’s trade after the private lender reported a 44% rise in its total loan book for the September quarter to Rs 20,938 crore in end-September 2022, driven by Microfinance-driven, affordable housing and personal lending.

The bank said advances rose 22% from Rs 14,514 crore as of September 2021 and 56% year-on-year to Rs 4,867 crore as fees continued to grow.

Ujjivan SFB said in a regulatory filing on Thursday, “The bank has crossed the milestone of Rs 20,000 crore both in advances and deposits, showing strong growth.” It said deposits grew 45% to Rs 20,389 crore, driven by a strong momentum in retail deposits, which were up 71%.

The company’s small and micro group loans rose 54%, personal loans rose 45%, affordable housing rose 33%, and small and micro businesses rose 31%. However, total loans to agriculture and related sectors fell by 27% to Rs 139 crore as of September 30, 2022.

Gross loan book expenses in the second quarter increased by 56% to Rs 4,867 crore compared to Rs 3,122 crore in the second quarter of FY21. In terms of deposits, the retail sector grew 71% to Rs 12,416 crore as of September 2022. The bank’s current account savings account (CASA) segment rose 73% to Rs 5,492 crore versus Rs 3,166 crore. The CASA ratio was 26.9%. According to Ujjivan SFB, its collection efficiency remains above 99%, with recombinant and NPA books showing a healthy collection.

The bank said it would continue to focus on pressure barrels and reduce overdue increments. Regarding asset quality, Gross Non-Performing Assets (GNPA) are expected to reach 4.4% compared to 5.4% QoQ.
The lender stated that the data related to Q2FY23 is provisional and subject to audit/limited review by the bank’s statutory auditors.

The stock was trading at Rs 26 at 10:26 am, 5% higher than the previous day’s close of Rs 24. The stock has surged nearly 42% in the past six months and is up about 35% this year.