The bank, nevertheless, mentioned that the pandemic scenario had a minimal influence on its books in FY 2019-20 because the nationwide lockdown was imposed in the previous couple of days of March, by which era most of bank’s collections had already come.
The 2019-20 annual report mentioned the lockdown “did influence the sometimes excessive year-end development momentum of March, and our volumes stood decrease than that envisaged earlier and considerably decrease than that within the earlier month, which affected the curiosity and payment revenue”.
The excess liquidity carried as a buffer for the disaster interval has led to a slight enhance in finance price for the final week of March, it mentioned.
The good thing about RBI dispensation on NPA recognition norms had been utilized on the moratorium portfolio, and it prevented any spike in credit score price, as per the report.
“Though we will proceed to accrue curiosity revenue on the excellent portfolio together with these accounts that go for moratorium, there will probably be an general contraction in curiosity revenue and payment revenue on account of decrease enterprise volumes on account of lockdown and adherence to social distancing norms,” the bank mentioned in it outlook for 2020-21.
Nonetheless, the bank mentioned it expects a gradual discount in price of funds as a result of a number of stimulus measures of the RBI to reinforce liquidity within the banking system.
The lender added that the influence on credit score price stays to be seen on the finish of the moratorium and the tip of dispensation on NPA (non-performing belongings) classification on the finish of August 2020.
Citing buyer surveys, Ujjivan SFB mentioned there have been momentary dip in family revenue ranges within the wake of COVID-19 disaster and addressing the credit score wants of this section would assist clients resurrect their companies and livelihoods.
“Given the continued disaster scenario, we visualise it to be a great time to sensitise our clients and their households on primary financial savings and banking behaviour and promote purpose primarily based deposits, as our deposit charges stay enticing,” it mentioned.
The bank mentioned as digital funds have elevated as a result of pandemic, Ujjivan considers it as a great alternative to broaden initiatives and enhance adoption to digital channels.
“Our continued efforts on contactless and digital banking providers will stand us in a great stead to additional our outreach and construct on this chance. Furthermore, the volatility available in the market yields is predicted to assist in the expansion of institutional deposits,” it mentioned.
Going ahead, bank’s technique can be to handle the results of lockdown and it’ll set in movement initiatives equivalent to curbing credit score price, re-starting enterprise with repeat shoppers, scaling deposits and Sampoorna banking enterprise.
Bank’s Sampoorna Household Banking resolution was launched to deal with each family’s complete banking necessities, starting from the youngest member to the senior residents.
The bank mentioned it’ll additionally penetrate into new geographies and additional push the expansion of rural banking.
“We will even introduce client sturdy loan, micro loan in opposition to property and use an analytics-based model to graduate group loan clients. Moreover, we’ll simplify our digital pre-approved loan course of with the assistance of knowledge analytics and broaden our UPI QR primarily based fee options for retailers by way of UPI acquirer platform and our UPI PSP Cell app,” Ujjivan SFB mentioned within the report.
In addition to, the lender mentioned that it’s going to step up its cashless reimbursement additional via its Cash Mitra initiative and can supply banking providers from neighbourhood outlets and pilot cash assortment factors.
“We’re additionally planning to launch a voice-, video- and vernacular-based, simply navigable cellular banking app for microfinance clients to drive digital utilization,” it mentioned.
Shifting forward, the bank will broaden the product base with new channels of loan EMI fee by way of standard and easy-to-use platforms -– Common UPI apps, BBPS, CCAvenue and Billdesk and use of BC and digital pre-approved particular person loans by way of cellphone banking and cellular app, it mentioned.
Additionally, the bank will consider semi-formal and formal MSME segments, led by its diversified product providing and relationship primarily based method.
Additional, the bank mentioned it plans to launch fintech partnerships in provide chain finance area to offer an extra lead channel and also will introduce digital onboarding platform for improved supply processes.
Throughout 2019-20, Ujjivan SFB registered a 28% development in its gross advances at ₹14,153 crore as on March 30, 2020.
Deposits of the bank had been up by 46% at ₹10,780 crore whereas the retail deposits rose 73% to ₹4,724 crore.
Bank’s complete revenue in FY20 jumped by 49% to ₹3,026 crore, incomes internet revenue of ₹350 crore, which was larger by 76% from a yr in the past.
Ujjivan SFB, which started its operations in February 2017, acquired listed into the capital market in December 2019, which was termed as one of the crucial subscribed IPOs in 2019.
The bank with its branches spanning throughout 24 states and union territories had a buyer base of 54.Four lakh as on March 31, 2020.