Kolkata: Ujjivan Small Finance Bank is rebalancing its portfolio towards secured loans. Currently, 72% of its portfolio comprises unsecured loans. Ujjivan CEO & MD Ittira Davis told TOI that it has a target to reduce it to 68% by end of this fiscal. The bank would try to bring it down to 64% in 2024-25.
“In three years, we have the target to achieve 60:40 ratio between unsecured and secured loan,” he added. Currently, microfinance is the biggest part of the bank’s loan book, but it has been giving stress on home and MSME loan to cut weightage of micro banking.
Owing to its higher weightage in micro banking during the pandemic, the bank had made a loss of Rs 400 crore. Later, it recovered and posted a net profit of Rs 1,100 crore in 2022-23. In the first quarter of this fiscal, it posted a PAT of Rs 324 crore.
Bengal is the third largest market for the bank with 12% market share only behind Tamil Nadu and Karnataka. Out of 625 branches nationally, it has 90 branches in the state. With a loan book of Rs 25,300 crore, it has Rs 26,660 crore on deposit side. “This fiscal, we are hoping for an advance growth of 25-30% as we feel that hard interest regime would continue this fiscal,” he added. Davis also claimed that it may be added in Nifty 500 in this September.
