How is business shaping up for these two small finance banks
The maximum growth in this financial year is coming from the microfinance business as that is the business, which has been moving faster and has been able to grow, said Ittira Davis, MD and CEO at Ujjivan Small Finance Bank.
Ujjivan Small Finance Bank and Equitas Small Finance Bank have seen stress levels normalise during the September quarter. Both companies maintained steady business momentum during the quarter.
“We have seen very good traction in this quarter and comparing it with the same quarter of the previous year, it is looking very good. On an absolute basis the growth has been very good,” said Ujjivan SFB's MD & CEO Ittira Davis told CNBC-TV18 in an interview.
Ujjivan Small Finance Bank reported 44.7 percent growth in deposits and 56 percent growth in disbursals during the September quarter, according to its quarterly business update. Davis said that the MFI business has done well for the company over the last 12 months and has been a key contributor to growth.
“For us and for the industry, there has been a good turnaround in the microfinance business,” said Davis.
Ujjivan Small Finance Bank is seeing good traction in rural and semi-urban areas. “We are not seeing any stress build-up or anything of that nature. We are seeing good growth going ahead,” Davis said.
He expects net interest margins (NIMs) to remain healthy for FY23 despite rising interest rates.
On the other hand, Ujjivan's peer Equitas Small Finance Bank is hopeful of ending the current financial year with loan growth of 30 percent.
Deposits for the Bengaluru-based lender increased 20 percent from last year while advances also grew at a similar quantum.
MD & CEO PN Vasudevan is expecting strong momentum in loan growth for the second half of the financial year.
Vasudevan also spoke about the company's succession process, which according to him, will be completed in a year.
For the entire discussion, watch the accompanying video
First Published: Oct 7, 2022 3:37 PM IST
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