Ujjivan Small Finance Bank Faces Mixed Financial Performance Amid Market Volatility

Ujjivan Small Finance Bank has recently undergone a financial trend adjustment, reflecting a challenging performance landscape for the quarter ending March 2025. The bank's financial metrics indicate a mixed bag of results, with the gross non-performing assets (NPA) at a relatively low 2.18%, showcasing effective asset management. However, several key indicators reveal significant hurdles. The profit before tax (PBT) stands at a negative Rs 174.43 crore, while the profit after tax (PAT) is recorded at Rs 83.39 crore, both reflecting the bank's struggle to generate sustainable profitability.
Additionally, the net interest income (NII) is reported at Rs 864.31 crore, and the credit deposit ratio is at 83.42%, both of which are among the lowest figures for the bank. The operating profit to net sales ratio is also concerning at 5.72%. Furthermore, the earnings per share (EPS) is at Rs 0.43, indicating limited earnings capacity.

In terms of market performance, Ujjivan Small Finance Bank has shown resilience compared to the Sensex over various time frames. Over the past week, the stock has returned 4.56%, while year-to-date returns stand at 33.11%, significantly outperforming the Sensex's 5.02% during the same period. However, the one-year return of -15.84% contrasts sharply with the Sensex's 10.88%, highlighting the volatility in the bank's stock performance.