Ujjivan SFB board approves sale of Rs 364 crore NPA and written-off loans to ARC
The net NPA has remained stable at 0.56%. Ujjivan SFB's gross loan book reached Rs 30,466 crore, reflecting a 9.8% growth year-on-year.
Ujjivan SFB board approves sale of Rs 364 crore NPA and written-off loans to ARC
The Board committee of Ujjivan Small Finance Bank has approved the sale of a Rs 364.51 crore micro banking loan pool, consisting of Rs 294.51 crore in non-performing assets (NPAs) and Rs 70 crore in technically written-off loans, to an Asset Reconstruction Company (ARC). The objective is aimed at strengthening asset quality and improving financial health.
The bank carries an overall provision of 66.51% on the said loan pool, ensuring adequate risk coverage. Ujjivan SFB has stated that further details will be disclosed upon completion of the deal.
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This development comes as the bank works to manage its asset quality, following a rise in gross non-performing assets (GNPA) to 2.68% in Q3 FY25, up from 2.52% in the previous quarter. The net NPA has remained stable at 0.56%. Ujjivan SFB's gross loan book reached Rs 30,466 crore, reflecting a 9.8% growth year-on-year.
The secured loan book has seen significant growth, now making up 39.3% of the total loan portfolio as of December 2024, compared to 28.3% a year earlier. Additionally, the bank's collection efficiency has improved, reaching 96% in December 2024.
The bucket X collection efficiency for both group and individual loan books stood at an impressive 99.3%. Furthermore, the portfolio at risk (PAR) was recorded at 5.4%, with GNPA and net NPA at 2.7% and 0.6%, respectively.
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