Ujjivan Small Finance Bank Faces Financial Challenges Amidst Strong Capital Position

Ujjivan Small Finance Bank has recently undergone an adjustment in its evaluation, reflecting a shift in its underlying financial metrics and market position. The bank, categorized within the small-cap segment of the Other Bank industry, has reported a notable decline in its financial performance over the past quarters. Specifically, the bank's profit before tax (PBT) has shown a significant downturn, with a reported figure of Rs -113.45 crore, marking a substantial change compared to the previous four-quarter average. Additionally, the profit after tax (PAT) has also decreased, coming in at Rs 103.22 crore, which is a decline of 43.1% from prior averages.
Despite these challenges, Ujjivan Small Finance Bank maintains a strong capital adequacy ratio of 24.50%, indicating a robust buffer against risk-based assets. The bank's gross non-performing asset (NPA) ratio stands at a low 2.52%, reflecting sound lending practices. Furthermore, the net interest income has demonstrated healthy growth, increasing at an annual rate of 17.46%.

Overall, the recent evaluation adjustment highlights the complexities within Ujjivan Small Finance Bank's financial landscape, characterized by both challenges and strengths.

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