Ujjivan SFB board to sell ₹364 Crore NPA and written-off loans

24 Feb 2025 , 11:06 AM

Ujjivan Small Finance Bank (SFB) has announced the approval of ₹364.51 Crore micro banking loan pool. This shall consist of ₹294.51 Crore in non-performing assets (NPAs) and ₹70 Crore in technically written-off loans to an Asset Reconstruction Company (ARC).

The decision is approved by the authorised board committee. It is directed to strengthen asset quality and improve financial health.

The bank has created an overall provision of 66.51% on the stated loan pool.This ensures adequate risk coverage. The SFB stated that further details shall be disclosed upon completion of the deal.

This development comes when the bank is making efforts to manage asset quality after reporting an increase in gross non-performing assets (GNPA) to 2.68% in Q3FY25, up against 2.52% in the previous quarter. Net NPA remained at 0.56%.

Ujjivan SFB’s gross loan book was reported at ₹30,466 Crore, up by 9.8% on a year-on-year basis. The secured loan book has witnessed significant growth, aggregating to 39.30% of the total loan portfolio as of December 2024, against 28.30% in the previous corresponding period.

The bank’s collection efficiency has registered improvement, reaching 96% in December 2024. The bucket X collection efficiency stood at 99.30%, for both group and individual loan books.

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