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Ujjivan Small Finance Bank has underscored its emphasis on expanding the secured portfolio, achieving its highest-ever quarterly disbursements in the affordable housing loan segment. With a legacy rooted in unsecured microfinance, the bank has observed a gradual rise in its secured book, reaching 28.5% by December compared to 27.5% a year ago. This has been complemented by the gradual escalation in other secured businesses, such as loans to micro and small enterprises and micro mortgage loans, as highlighted by the bank.
As per provisional data disclosed to stock exchanges, Ujjivan's overall advances have experienced substantial growth, registering a 27% year-on-year increase to reach Rs. 27,791 crores. In the quarter concluding December 2023, the bank disbursed loans amounting to Rs. 5,675 crore, marking a notable 17% annual growth. However, there was a marginal 1% decline in disbursements on a quarter-on-quarter basis.
The bank's total deposits also witnessed significant growth, escalating by 29% year-on-year to touch Rs. 2,29,869 crores. Particularly noteworthy was the mobilisation of current and savings account (CASA) deposits, which surged by 24% to reach Rs. 27,549 crore. These low-cost CASA deposits accounted for 25.3% of the bank's total deposits.
The strategic focus on expanding the secured portfolio underscores Ujjivan Small Finance Bank's commitment to diversifying and strengthening its lending practices. As the bank continues navigating this strategic shift, the spotlight on fortifying secured portfolios assumes significance in reinforcing financial stability and resilience. The notable surge in overall advances, coupled with robust deposit mobilisation, signals an increasing trust and confidence among customers in the bank's offerings and services.
In conclusion, Ujjivan's deliberate efforts to enhance its secured portfolio signify a strategic pivot towards sustainable growth and prudent risk management. The bank's emphasis on affordable housing loans and the amplification of secured lending avenues position it favourably to reinforce its position in the evolving financial landscape.
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